200 Questions
What is the primary goal of wealth redistribution methods?
To balance wealth and income
What is economic growth typically measured by?
GDP per capita
Which of the following is a factor that determines standard of living?
Economic growth
What is the primary difference between economic growth and economic development?
Economic growth focuses on economy, while development focuses on society
Which strategy is used to add value to natural resources?
Resource improvement
What is a common characteristic of developing countries?
High productivity
What is the Human Development Index (HDI) used to measure?
A country's development through factors like life expectancy, education, and GDP per capita
Which stage of development involves transitioning from a traditional society to one characterized by high mass consumption?
Economic development
What is a key factor influencing economic growth?
All of the above
What is the primary goal of promoting entrepreneurship?
To create jobs and diversify goods and services
What is the primary goal of the Growth, Employment, and Redistribution Policy (GEAR) in South Africa?
To stabilize the economy and promote growth and redistribution
What characterizes Indigenous Knowledge Systems (IKS)?
Local, cultural-specific, experiential, and dynamic
According to the World Bank, what is the definition of poverty?
Inability to attain a minimum standard of living
What is the purpose of the poverty line income?
To indicate the minimum income needed to cover basic needs
What is the main objective of the Millennium Development Goals?
To eradicate extreme poverty and hunger by 2015
What is economic growth closely tied to?
The standard of living
What is the primary source of wealth?
Savings
What is a characteristic of money?
Uniformity, general acceptance, and scarcity
What is the technical function of money as a medium of exchange?
To facilitate the buying and selling of goods and services
What is the purpose of the Lorenz Curve?
To illustrate the actual distribution of wealth
What is the range of the Gini Coefficient?
0 to 1
What is the focus of the Reconstruction and Development Programme (RDP) in South Africa?
Restructuring the economy to enable sustainable development
What is the name of the initiative that seeks to rectify the shortcomings of previous policies and boost economic growth in South Africa?
ASGISA
What can result in unequal wealth distribution?
All of the above
What is wealth in economic terms?
An abundance of valuable resources or material possessions
What is the effect of poverty on a society?
Perpetual cycle of poverty, affecting health and crime rates
What is a characteristic of wealth?
Both A and B
What is a principle of the Gini Coefficient?
Both A and B
What is a factor that can impact economic opportunities?
Both A and B
What is economic growth an increase in?
The capacity of an economy to produce goods and services
What type of money is backed by a physical commodity?
Commodity Money
What is the purpose of micro-lending?
To provide small loans to individuals unable to access traditional bank financing
What is the role of the South African Reserve Bank (SARB) in the economy?
To implement monetary policy and maintain financial stability
What is the result of bank failures?
Losses for depositors and investors, and erosion of public trust
What is the main function of repo rate adjustments?
To influence lending rates across the banking sector
What type of deposit allows for immediate withdrawal?
Demand Deposit
What is credit creation?
The process of banks extending loans exceeding their cash reserves
Why is stability in the banking system important?
To ensure confidence, support economic growth, and manage monetary policy effectively
What is the role of the central bank in the economy?
To act as a banker to the government and commercial banks, and manage the country's foreign reserves
What is the purpose of reserve requirements?
To control the amount of money banks can lend
What is the main objective of promoting economic growth?
To increase the standard of living
What is wealth in economic terms?
An abundance of valuable resources or material possessions
What is the primary source of wealth?
Savings
What is the primary objective of social grants in wealth redistribution?
To balance wealth
What is the main advantage of measuring economic growth in real terms?
It provides a clearer picture of growth
What is the Gini Coefficient used to measure?
Wealth inequality ranging from 0 to 1
What can result in unequal wealth distribution?
Inheritance and economic systems
What is a factor that influences labor productivity?
Education and healthcare
What is the main limitation of using per capita GDP to measure standard of living?
It does not account for income distribution disparities
What is the Lorenz Curve used to illustrate?
The actual distribution of wealth across a population
What is a characteristic of wealth?
Potential for value appreciation or depreciation
What is the primary focus of economic development?
To improve the standard of living
What is a common characteristic of developing countries?
Low standard of living
What is a factor that can impact economic opportunities?
All of the above
What is economic growth an increase in?
The capacity of an economy to produce goods and services over time
What is the primary purpose of capital investment in economic development?
To stimulate growth
What is the relationship between economic growth and standard of living?
They are closely tied
What is the main objective of urbanization as a development strategy?
To transition from a traditional society to one characterized by high mass consumption
What is the primary advantage of using the Human Development Index (HDI) to measure development?
It factors in life expectancy, education, and GDP per capita
What is the primary role of government policies in economic development?
To influence economic stability and public services
What is the main aim of the Accelerated Shared Growth Initiative for South Africa (ASGISA)?
To rectify shortcomings of previous policies and boost economic growth
What is the primary characteristic of Indigenous Knowledge Systems (IKS)?
Rooted in specific communities and traditions
What is the primary effect of poverty on a society?
Perpetual cycle of poverty
What is the main function of money as a unit of account?
To provide a common measure of the value of goods and services
What is the main goal of the Millennium Development Goals (MDG)?
To eradicate extreme poverty and hunger by 2015
What is the primary characteristic of relative poverty?
A comparative lack within society, where individuals lack resources considered normal by societal standards
What is the primary goal of the Reconstruction and Development Programme (RDP)?
To restructure the economy to enable sustainable development
What is the primary cause of poverty?
Multifaceted, including lack of education, employment opportunities, healthcare, and access to resources
What is the primary role of the South African Reserve Bank (SARB) in the economy?
To stabilize the economy and promote growth
What is the primary goal of the Growth, Employment, and Redistribution Policy (GEAR)?
To stabilize the economy and promote growth and redistribution
What is the primary characteristic of commodity money?
It is a physical good used as money
What type of deposit allows for withdrawal after a fixed term?
Time Deposits
What is the primary function of the South African Reserve Bank (SARB)?
To implement monetary policy
What is the consequence of bank failures on the economy?
Job losses for employees
What is the purpose of reserve requirements?
To decrease the amount of money banks can lend
What is credit creation?
Banks extending loans exceeding their cash reserves
What type of money is not backed by a physical commodity?
Fiat Money
What is the primary purpose of micro-lending?
To provide small loans to individuals
What is the role of the central bank in the economy?
To implement monetary policy
Why is stability in the banking system important?
It promotes confidence and supports economic growth
What is the primary characteristic of economic growth?
An increase in the capacity of an economy to produce goods and services
What is the primary source of wealth?
Savings
Which method of wealth redistribution aims to create jobs?
Job creation programs
What is measured by GDP per capita?
Standard of living
What is the name of the curve that illustrates the actual distribution of wealth across a population?
Lorenz Curve
What is a factor that directly impacts productive capacity?
Capital investment
What is the primary reason for unequal wealth distribution?
All of the above
What is the primary characteristic of wealth in economic terms?
All of the above
What is the primary focus of economic development?
Improving the standard of living
Which strategy aims to enhance the quality and value of natural resources?
Resource improvement
What is the primary function of the Gini Coefficient?
To measure the wealth distribution inequality
What is a characteristic of low-income countries?
All of the above
What is the primary factor that contributes to economic disparity?
All of the above
What is the primary role of savings in wealth creation?
To serve as a primary source of wealth
What is the primary goal of economic development policies?
Improving the standard of living
What is a factor that influences economic growth?
Capital investment
What is the primary consequence of unequal wealth distribution?
Decreased economic opportunities
What is a characteristic of developing countries?
Reliance on primary sector outputs
What is the primary principle of the Gini Coefficient?
All of the above
Which index is used to measure a country's development?
Human Development Index (HDI)
What is the primary objective of the Reconstruction and Development Programme (RDP) in South Africa?
To restructure the economy to enable sustainable development
Which of the following policies in South Africa targets the shortcomings of previous policies and aims to boost economic growth?
Accelerated Shared Growth Initiative for South Africa (ASGISA)
What is the characteristic of money that enables it to be used as a medium of exchange?
General Acceptance
What is the primary reason why poverty is a significant challenge in South Africa?
All of the above
What is the primary goal of the Millennium Development Goals?
To eradicate extreme poverty and hunger
What is the characteristic of Indigenous Knowledge Systems (IKS)?
Local and culture-specific
What is the primary function of the South African Reserve Bank (SARB)?
To regulate the banking system
What is the primary objective of social welfare grants in South Africa?
To alleviate poverty and inequality
What is the characteristic of money that allows it to be used as a store of value?
Stability
What is the primary goal of the Growth, Employment, and Redistribution Policy (GEAR) in South Africa?
To stabilize the economy and promote growth and redistribution
What is the main characteristic of commodity money?
Physical goods used as money
What is the purpose of time deposits?
To deposit funds for a fixed term
What is the primary role of the South African Reserve Bank (SARB) in the economy?
To implement monetary policy and maintain financial stability
What is the result of bank failures on the economy?
Losses for depositors and investors, erosion of public trust, and potential systemic risk
What is the purpose of repo rate adjustments?
To influence lending rates across the banking sector
What is the primary goal of micro-lending?
To provide small loans to individuals unable to access traditional bank financing
What is credit creation?
The process of banks extending loans exceeding their cash reserves
What is the main advantage of a stable banking system?
It supports economic growth and manages the country's monetary policy effectively
What is the primary function of reserve requirements?
To control the amount of money banks can lend
What is the main characteristic of fiat money?
It is a government-issued currency not backed by a physical commodity
Which of the following is NOT a characteristic of wealth in economic terms?
Ability to retain its value over time
What is the primary difference between the Lorenz Curve and the Gini Coefficient?
The Lorenz Curve is a visual representation, while the Gini Coefficient is a numerical representation
What is the primary reason why skills and talent lead to uneven distribution of wealth?
Because they are not distributed equally among the population
What is the primary advantage of using the Gini Coefficient to measure wealth inequality?
It is a numerical representation
What is the primary objective of the Accelerated Shared Growth Initiative for South Africa (ASGISA)?
To rectify shortcomings of previous policies and boost economic growth
What is the primary relationship between economic growth and standard of living?
Economic growth is closely tied to an increase in standard of living
What is the primary disadvantage of using the Lorenz Curve to measure wealth inequality?
It does not provide a numerical value
What is the primary characteristic of Indigenous Knowledge Systems (IKS)?
Rooted in specific communities and traditions
What is the primary difference between savings and other sources of wealth?
Savings are a primary source, while other sources are secondary
What is the main difference between absolute poverty and relative poverty?
Absolute poverty involves the lack of basic human needs, while relative poverty involves a comparative lack within society
What is the primary function of the Reconstruction and Development Programme (RDP)?
To restructure the economy to enable sustainable development
What is the primary reason why discrimination leads to uneven wealth distribution?
Because it limits access to education and employment opportunities
What is the primary technical function of money?
To facilitate the buying and selling of goods and services
Which of the following is a result of economic growth?
An increase in the capacity of an economy to produce goods and services
What is the primary characteristic of a developing country?
Economic and social inequality
What is the primary reason why inheritance leads to uneven wealth distribution?
Because it provides certain individuals with a financial head start
What is the primary purpose of the Millennium Development Goals (MDG)?
To eradicate extreme poverty and hunger
What is the primary cause of poverty in South Africa?
All of the above
What is the primary objective of the Growth, Employment, and Redistribution Policy (GEAR) in South Africa?
To stabilize the economy and promote growth and redistribution
What is the primary effect of poverty on a society?
Perpetual cycle of poverty
What is a key challenge that developing countries face in terms of capital investment?
All of the above
Which of the following strategies for economic development is most likely to improve the quality of natural resources?
Resource improvement
What is the primary limitation of using GDP per capita to measure standard of living?
It does not account for income distribution disparities
Which of the following factors determines the standard of living of a particular demographic group?
All of the above
What is the primary goal of economic development?
To improve the standard of living
Which of the following is a characteristic of developing countries?
Low standard of living
What is the primary purpose of taxation policies aimed at equity?
To redistribute wealth
Which of the following is a factor that influences economic growth?
All of the above
What is the primary advantage of measuring economic growth in real terms?
It is less affected by inflation
Which of the following strategies is most likely to improve labor productivity?
Investing in human capital
What is the primary characteristic of commodity money?
Physical goods used as money
Which of the following is NOT a role of the South African Reserve Bank (SARB)?
Regulation of micro-lending
What is the primary consequence of bank failures?
Losses for depositors and investors
What is the primary purpose of credit creation?
To extend loans exceeding cash reserves
What is the primary function of reserve requirements?
To control the amount of money banks can lend
What is the primary benefit of a stable banking system?
Promotes confidence and supports economic growth
Which type of deposit allows for immediate withdrawal?
Demand deposit
What is the primary objective of micro-lending?
To provide small loans to individuals unable to access traditional bank financing
What is the primary tool used by the South African Reserve Bank (SARB) to influence lending rates?
Repo rate adjustments
What is the primary characteristic of fiat money?
Government-issued currency not backed by a physical commodity
What is the primary consequence of an economy's capacity to produce goods and services increasing over time?
An increase in the standard of living
Which of the following is a characteristic of wealth in economic terms?
The ability to generate income, potential for value appreciation or depreciation, and investments that yield returns
What is the purpose of the Lorenz Curve?
To illustrate the actual distribution of wealth across a population
Which of the following is a factor that can contribute to unequal wealth distribution?
All of the above
What is the Gini Coefficient used to measure?
Wealth distribution within a population
What is the primary source of wealth?
Savings
What is the relationship between economic growth and the standard of living?
Economic growth has a positive impact on the standard of living
What is the primary characteristic of wealth distribution?
Significant inequality within and across nations
What is the purpose of measuring wealth distribution?
To identify the factors contributing to unequal wealth distribution
What is the primary advantage of using the Gini Coefficient to measure wealth inequality?
It is a straightforward and interpretable measure
What is the primary objective of job creation programs in wealth redistribution?
To reduce income distribution disparities
What is the primary driver of economic growth in the short term?
Capital investment
What is the primary limitation of using GDP per capita to measure standard of living?
It does not account for income distribution disparities
What is the primary goal of promoting entrepreneurship in economic development?
To create jobs and diversify goods and services
What is the primary characteristic of economic development?
Broad-based improvements in standard of living
What is the primary factor that influences labor productivity?
Education and worker motivation
What is the primary advantage of measuring economic growth in real terms?
It provides a clearer picture of growth
What is the primary purpose of anti-discrimination legislation in wealth redistribution?
To reduce income distribution disparities
What is the primary characteristic of developing countries?
Low income and high poverty rates
What is the primary purpose of modernization of agriculture in economic development?
To increase agricultural output and reduce poverty
What is the primary goal of the Accelerated Shared Growth Initiative for South Africa (ASGISA)?
To rectify shortcomings of previous policies and boost economic growth
What is the characteristic of Indigenous Knowledge Systems (IKS) that makes them valuable for addressing local health care needs?
Being rooted in specific communities and traditions
What is the poverty gap index used to measure?
The average shortfall from the poverty line
What is the primary characteristic of money that makes it a store of value?
Its ability to retain its value over time
What is the primary goal of the Millennium Development Goals (MDG)?
To eradicate extreme poverty and hunger globally by 2015
What is the primary characteristic of the Reconstruction and Development Programme (RDP) in South Africa?
Targeting the restructuring of the economy to enable sustainable development
What is the primary cause of poverty in South Africa?
All of the above
What is the primary focus of the Growth, Employment, and Redistribution Policy (GEAR) in South Africa?
Aiming to stabilize the economy and promote growth and redistribution
What is the primary characteristic of relative poverty?
Defined by a comparative lack within society
What is the primary goal of social welfare grants in South Africa?
To alleviate poverty and reduce income inequality
What is the primary characteristic of fiat money?
It is not backed by a physical commodity
What is the primary purpose of time deposits?
To allow deposits for a fixed term with varying notice periods for withdrawal
What is the primary benefit of micro-lending?
It allows individuals to start small businesses
What is the primary function of the South African Reserve Bank (SARB) in maintaining financial stability?
To implement monetary policy
What is the primary consequence of bank failures?
Losses for depositors and investors
What is the primary purpose of reserve requirements?
To reduce the risk of bank failures
What is credit creation?
The extension of loans by banks exceeding their cash reserves
What is the primary role of banks in the economy?
To facilitate economic growth
What is the primary purpose of repo rate adjustments?
To influence lending rates across the banking sector
What is the primary characteristic of a stable banking system?
It promotes confidence and supports economic growth
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
