Term 3 Test

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What is the primary goal of wealth redistribution methods?

To reduce population growth

To increase poverty rates

To balance wealth and income (correct)

To promote economic growth

What is economic growth typically measured by?

Resource exploitation

GDP per capita (correct)

Labor productivity

Nominal terms

Which of the following is a factor that determines standard of living?

Economic growth (correct)

Government policies

Resource exploitation

Unemployment rates

What is the primary difference between economic growth and economic development?

Economic growth focuses on economy, while development focuses on society Signup and view all the answers

Which strategy is used to add value to natural resources?

Resource improvement Signup and view all the answers

What is a common characteristic of developing countries?

High productivity Signup and view all the answers

What is the Human Development Index (HDI) used to measure?

A country's development through factors like life expectancy, education, and GDP per capita Signup and view all the answers

Which stage of development involves transitioning from a traditional society to one characterized by high mass consumption?

Economic development Signup and view all the answers

What is a key factor influencing economic growth?

All of the above Signup and view all the answers

What is the primary goal of promoting entrepreneurship?

To create jobs and diversify goods and services Signup and view all the answers

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 Signup and view all the answers

What characterizes Indigenous Knowledge Systems (IKS)?

Local, cultural-specific, experiential, and dynamic Signup and view all the answers

According to the World Bank, what is the definition of poverty?

Inability to attain a minimum standard of living Signup and view all the answers

What is the purpose of the poverty line income?

To indicate the minimum income needed to cover basic needs Signup and view all the answers

What is the main objective of the Millennium Development Goals?

To eradicate extreme poverty and hunger by 2015 Signup and view all the answers

What is economic growth closely tied to?

The standard of living Signup and view all the answers

What is the primary source of wealth?

Savings Signup and view all the answers

What is a characteristic of money?

Uniformity, general acceptance, and scarcity Signup and view all the answers

What is the technical function of money as a medium of exchange?

To facilitate the buying and selling of goods and services Signup and view all the answers

What is the purpose of the Lorenz Curve?

To illustrate the actual distribution of wealth Signup and view all the answers

What is the range of the Gini Coefficient?

0 to 1 Signup and view all the answers

What is the focus of the Reconstruction and Development Programme (RDP) in South Africa?

Restructuring the economy to enable sustainable development Signup and view all the answers

What is the name of the initiative that seeks to rectify the shortcomings of previous policies and boost economic growth in South Africa?

ASGISA Signup and view all the answers

What can result in unequal wealth distribution?

All of the above Signup and view all the answers

What is wealth in economic terms?

An abundance of valuable resources or material possessions Signup and view all the answers

What is the effect of poverty on a society?

Perpetual cycle of poverty, affecting health and crime rates Signup and view all the answers

What is a characteristic of wealth?

Both A and B Signup and view all the answers

What is a principle of the Gini Coefficient?

Both A and B Signup and view all the answers

What is a factor that can impact economic opportunities?

Both A and B Signup and view all the answers

What is economic growth an increase in?

The capacity of an economy to produce goods and services Signup and view all the answers

What type of money is backed by a physical commodity?

Commodity Money Signup and view all the answers

What is the purpose of micro-lending?

To provide small loans to individuals unable to access traditional bank financing Signup and view all the answers

What is the role of the South African Reserve Bank (SARB) in the economy?

To implement monetary policy and maintain financial stability Signup and view all the answers

What is the result of bank failures?

Losses for depositors and investors, and erosion of public trust Signup and view all the answers

What is the main function of repo rate adjustments?

To influence lending rates across the banking sector Signup and view all the answers

What type of deposit allows for immediate withdrawal?

Demand Deposit Signup and view all the answers

What is credit creation?

The process of banks extending loans exceeding their cash reserves Signup and view all the answers

Why is stability in the banking system important?

To ensure confidence, support economic growth, and manage monetary policy effectively Signup and view all the answers

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 Signup and view all the answers

What is the purpose of reserve requirements?

To control the amount of money banks can lend Signup and view all the answers

What is the main objective of promoting economic growth?

To increase the standard of living Signup and view all the answers

What is wealth in economic terms?

An abundance of valuable resources or material possessions Signup and view all the answers

What is the primary source of wealth?

Savings Signup and view all the answers

What is the primary objective of social grants in wealth redistribution?

To balance wealth Signup and view all the answers

What is the main advantage of measuring economic growth in real terms?

It provides a clearer picture of growth Signup and view all the answers

What is the Gini Coefficient used to measure?

Wealth inequality ranging from 0 to 1 Signup and view all the answers

What can result in unequal wealth distribution?

Inheritance and economic systems Signup and view all the answers

What is a factor that influences labor productivity?

Education and healthcare Signup and view all the answers

What is the main limitation of using per capita GDP to measure standard of living?

It does not account for income distribution disparities Signup and view all the answers

What is the Lorenz Curve used to illustrate?

The actual distribution of wealth across a population Signup and view all the answers

What is a characteristic of wealth?

Potential for value appreciation or depreciation Signup and view all the answers

What is the primary focus of economic development?

To improve the standard of living Signup and view all the answers

What is a common characteristic of developing countries?

Low standard of living Signup and view all the answers

What is a factor that can impact economic opportunities?

All of the above Signup and view all the answers

What is economic growth an increase in?

The capacity of an economy to produce goods and services over time Signup and view all the answers

What is the primary purpose of capital investment in economic development?

To stimulate growth Signup and view all the answers

What is the relationship between economic growth and standard of living?

They are closely tied Signup and view all the answers

What is the main objective of urbanization as a development strategy?

To transition from a traditional society to one characterized by high mass consumption Signup and view all the answers

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 Signup and view all the answers

What is the primary role of government policies in economic development?

To influence economic stability and public services Signup and view all the answers

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 Signup and view all the answers

What is the primary characteristic of Indigenous Knowledge Systems (IKS)?

Rooted in specific communities and traditions Signup and view all the answers

What is the primary effect of poverty on a society?

Perpetual cycle of poverty Signup and view all the answers

What is the main function of money as a unit of account?

To provide a common measure of the value of goods and services Signup and view all the answers

What is the main goal of the Millennium Development Goals (MDG)?

To eradicate extreme poverty and hunger by 2015 Signup and view all the answers

What is the primary characteristic of relative poverty?

A comparative lack within society, where individuals lack resources considered normal by societal standards Signup and view all the answers

What is the primary goal of the Reconstruction and Development Programme (RDP)?

To restructure the economy to enable sustainable development Signup and view all the answers

What is the primary cause of poverty?

Multifaceted, including lack of education, employment opportunities, healthcare, and access to resources Signup and view all the answers

What is the primary role of the South African Reserve Bank (SARB) in the economy?

To stabilize the economy and promote growth Signup and view all the answers

What is the primary goal of the Growth, Employment, and Redistribution Policy (GEAR)?

To stabilize the economy and promote growth and redistribution Signup and view all the answers

What is the primary characteristic of commodity money?

It is a physical good used as money Signup and view all the answers

What type of deposit allows for withdrawal after a fixed term?

Time Deposits Signup and view all the answers

What is the primary function of the South African Reserve Bank (SARB)?

To implement monetary policy Signup and view all the answers

What is the consequence of bank failures on the economy?

Job losses for employees Signup and view all the answers

What is the purpose of reserve requirements?

To decrease the amount of money banks can lend Signup and view all the answers

What is credit creation?

Banks extending loans exceeding their cash reserves Signup and view all the answers

What type of money is not backed by a physical commodity?

Fiat Money Signup and view all the answers

What is the primary purpose of micro-lending?

To provide small loans to individuals Signup and view all the answers

What is the role of the central bank in the economy?

To implement monetary policy Signup and view all the answers

Why is stability in the banking system important?

It promotes confidence and supports economic growth Signup and view all the answers

What is the primary characteristic of economic growth?

An increase in the capacity of an economy to produce goods and services Signup and view all the answers

What is the primary source of wealth?

Savings Signup and view all the answers

Which method of wealth redistribution aims to create jobs?

Job creation programs Signup and view all the answers

What is measured by GDP per capita?

Standard of living Signup and view all the answers

What is the name of the curve that illustrates the actual distribution of wealth across a population?

Lorenz Curve Signup and view all the answers

What is a factor that directly impacts productive capacity?

Capital investment Signup and view all the answers

What is the primary reason for unequal wealth distribution?

All of the above Signup and view all the answers

What is the primary characteristic of wealth in economic terms?

All of the above Signup and view all the answers

What is the primary focus of economic development?

Improving the standard of living Signup and view all the answers

Which strategy aims to enhance the quality and value of natural resources?

Resource improvement Signup and view all the answers

What is the primary function of the Gini Coefficient?

To measure the wealth distribution inequality Signup and view all the answers

What is a characteristic of low-income countries?

All of the above Signup and view all the answers

What is the primary factor that contributes to economic disparity?

All of the above Signup and view all the answers

What is the primary role of savings in wealth creation?

To serve as a primary source of wealth Signup and view all the answers

What is the primary goal of economic development policies?

Improving the standard of living Signup and view all the answers

What is a factor that influences economic growth?

Capital investment Signup and view all the answers

What is the primary consequence of unequal wealth distribution?

Decreased economic opportunities Signup and view all the answers

What is a characteristic of developing countries?

Reliance on primary sector outputs Signup and view all the answers

What is the primary principle of the Gini Coefficient?

All of the above Signup and view all the answers

Which index is used to measure a country's development?

Human Development Index (HDI) Signup and view all the answers

What is the primary objective of the Reconstruction and Development Programme (RDP) in South Africa?

To restructure the economy to enable sustainable development Signup and view all the answers

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) Signup and view all the answers

What is the characteristic of money that enables it to be used as a medium of exchange?

General Acceptance Signup and view all the answers

What is the primary reason why poverty is a significant challenge in South Africa?

All of the above Signup and view all the answers

What is the primary goal of the Millennium Development Goals?

To eradicate extreme poverty and hunger Signup and view all the answers

What is the characteristic of Indigenous Knowledge Systems (IKS)?

Local and culture-specific Signup and view all the answers

What is the primary function of the South African Reserve Bank (SARB)?

To regulate the banking system Signup and view all the answers

What is the primary objective of social welfare grants in South Africa?

To alleviate poverty and inequality Signup and view all the answers

What is the characteristic of money that allows it to be used as a store of value?

Stability Signup and view all the answers

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 Signup and view all the answers

What is the main characteristic of commodity money?

Physical goods used as money Signup and view all the answers

What is the purpose of time deposits?

To deposit funds for a fixed term Signup and view all the answers

What is the primary role of the South African Reserve Bank (SARB) in the economy?

To implement monetary policy and maintain financial stability Signup and view all the answers

What is the result of bank failures on the economy?

Losses for depositors and investors, erosion of public trust, and potential systemic risk Signup and view all the answers

What is the purpose of repo rate adjustments?

To influence lending rates across the banking sector Signup and view all the answers

What is the primary goal of micro-lending?

To provide small loans to individuals unable to access traditional bank financing Signup and view all the answers

What is credit creation?

The process of banks extending loans exceeding their cash reserves Signup and view all the answers

What is the main advantage of a stable banking system?

It supports economic growth and manages the country's monetary policy effectively Signup and view all the answers

What is the primary function of reserve requirements?

To control the amount of money banks can lend Signup and view all the answers

What is the main characteristic of fiat money?

It is a government-issued currency not backed by a physical commodity Signup and view all the answers

Which of the following is NOT a characteristic of wealth in economic terms?

Ability to retain its value over time Signup and view all the answers

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 Signup and view all the answers

What is the primary reason why skills and talent lead to uneven distribution of wealth?

Because they are not distributed equally among the population Signup and view all the answers

What is the primary advantage of using the Gini Coefficient to measure wealth inequality?

It is a numerical representation Signup and view all the answers

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 Signup and view all the answers

What is the primary relationship between economic growth and standard of living?

Economic growth is closely tied to an increase in standard of living Signup and view all the answers

What is the primary disadvantage of using the Lorenz Curve to measure wealth inequality?

It does not provide a numerical value Signup and view all the answers

What is the primary characteristic of Indigenous Knowledge Systems (IKS)?

Rooted in specific communities and traditions Signup and view all the answers

What is the primary difference between savings and other sources of wealth?

Savings are a primary source, while other sources are secondary Signup and view all the answers

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 Signup and view all the answers

What is the primary function of the Reconstruction and Development Programme (RDP)?

To restructure the economy to enable sustainable development Signup and view all the answers

What is the primary reason why discrimination leads to uneven wealth distribution?

Because it limits access to education and employment opportunities Signup and view all the answers

What is the primary technical function of money?

To facilitate the buying and selling of goods and services Signup and view all the answers

Which of the following is a result of economic growth?

An increase in the capacity of an economy to produce goods and services Signup and view all the answers

What is the primary characteristic of a developing country?

Economic and social inequality Signup and view all the answers

What is the primary reason why inheritance leads to uneven wealth distribution?

Because it provides certain individuals with a financial head start Signup and view all the answers

What is the primary purpose of the Millennium Development Goals (MDG)?

To eradicate extreme poverty and hunger Signup and view all the answers

What is the primary cause of poverty in South Africa?

All of the above Signup and view all the answers

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 Signup and view all the answers

What is the primary effect of poverty on a society?

Perpetual cycle of poverty Signup and view all the answers

What is a key challenge that developing countries face in terms of capital investment?

All of the above Signup and view all the answers

Which of the following strategies for economic development is most likely to improve the quality of natural resources?

Resource improvement Signup and view all the answers

What is the primary limitation of using GDP per capita to measure standard of living?

It does not account for income distribution disparities Signup and view all the answers

Which of the following factors determines the standard of living of a particular demographic group?

All of the above Signup and view all the answers

What is the primary goal of economic development?

To improve the standard of living Signup and view all the answers

Which of the following is a characteristic of developing countries?

Low standard of living Signup and view all the answers

What is the primary purpose of taxation policies aimed at equity?

To redistribute wealth Signup and view all the answers

Which of the following is a factor that influences economic growth?

All of the above Signup and view all the answers

What is the primary advantage of measuring economic growth in real terms?

It is less affected by inflation Signup and view all the answers

Which of the following strategies is most likely to improve labor productivity?

Investing in human capital Signup and view all the answers

What is the primary characteristic of commodity money?

Physical goods used as money Signup and view all the answers

Which of the following is NOT a role of the South African Reserve Bank (SARB)?

Regulation of micro-lending Signup and view all the answers

What is the primary consequence of bank failures?

Losses for depositors and investors Signup and view all the answers

What is the primary purpose of credit creation?

To extend loans exceeding cash reserves Signup and view all the answers

What is the primary function of reserve requirements?

To control the amount of money banks can lend Signup and view all the answers

What is the primary benefit of a stable banking system?

Promotes confidence and supports economic growth Signup and view all the answers

Which type of deposit allows for immediate withdrawal?

Demand deposit Signup and view all the answers

What is the primary objective of micro-lending?

To provide small loans to individuals unable to access traditional bank financing Signup and view all the answers

What is the primary tool used by the South African Reserve Bank (SARB) to influence lending rates?

Repo rate adjustments Signup and view all the answers

What is the primary characteristic of fiat money?

Government-issued currency not backed by a physical commodity Signup and view all the answers

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 Signup and view all the answers

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 Signup and view all the answers

What is the purpose of the Lorenz Curve?

To illustrate the actual distribution of wealth across a population Signup and view all the answers

Which of the following is a factor that can contribute to unequal wealth distribution?

All of the above Signup and view all the answers

What is the Gini Coefficient used to measure?

Wealth distribution within a population Signup and view all the answers

What is the primary source of wealth?

Savings Signup and view all the answers

What is the relationship between economic growth and the standard of living?

Economic growth has a positive impact on the standard of living Signup and view all the answers

What is the primary characteristic of wealth distribution?

Significant inequality within and across nations Signup and view all the answers

What is the purpose of measuring wealth distribution?

To identify the factors contributing to unequal wealth distribution Signup and view all the answers

What is the primary advantage of using the Gini Coefficient to measure wealth inequality?

It is a straightforward and interpretable measure Signup and view all the answers

What is the primary objective of job creation programs in wealth redistribution?

To reduce income distribution disparities Signup and view all the answers

What is the primary driver of economic growth in the short term?

Capital investment Signup and view all the answers

What is the primary limitation of using GDP per capita to measure standard of living?

It does not account for income distribution disparities Signup and view all the answers

What is the primary goal of promoting entrepreneurship in economic development?

To create jobs and diversify goods and services Signup and view all the answers

What is the primary characteristic of economic development?

Broad-based improvements in standard of living Signup and view all the answers

What is the primary factor that influences labor productivity?

Education and worker motivation Signup and view all the answers

What is the primary advantage of measuring economic growth in real terms?

It provides a clearer picture of growth Signup and view all the answers

What is the primary purpose of anti-discrimination legislation in wealth redistribution?

To reduce income distribution disparities Signup and view all the answers

What is the primary characteristic of developing countries?

Low income and high poverty rates Signup and view all the answers

What is the primary purpose of modernization of agriculture in economic development?

To increase agricultural output and reduce poverty Signup and view all the answers

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 Signup and view all the answers

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 Signup and view all the answers

What is the poverty gap index used to measure?

The average shortfall from the poverty line Signup and view all the answers

What is the primary characteristic of money that makes it a store of value?

Its ability to retain its value over time Signup and view all the answers

What is the primary goal of the Millennium Development Goals (MDG)?

To eradicate extreme poverty and hunger globally by 2015 Signup and view all the answers

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 Signup and view all the answers

What is the primary cause of poverty in South Africa?

All of the above Signup and view all the answers

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 Signup and view all the answers

What is the primary characteristic of relative poverty?

Defined by a comparative lack within society Signup and view all the answers

What is the primary goal of social welfare grants in South Africa?

To alleviate poverty and reduce income inequality Signup and view all the answers

What is the primary characteristic of fiat money?

It is not backed by a physical commodity Signup and view all the answers

What is the primary purpose of time deposits?

To allow deposits for a fixed term with varying notice periods for withdrawal Signup and view all the answers

What is the primary benefit of micro-lending?

It allows individuals to start small businesses Signup and view all the answers

What is the primary function of the South African Reserve Bank (SARB) in maintaining financial stability?

To implement monetary policy Signup and view all the answers

What is the primary consequence of bank failures?

Losses for depositors and investors Signup and view all the answers

What is the primary purpose of reserve requirements?

To reduce the risk of bank failures Signup and view all the answers

What is credit creation?

The extension of loans by banks exceeding their cash reserves Signup and view all the answers

What is the primary role of banks in the economy?

To facilitate economic growth Signup and view all the answers

What is the primary purpose of repo rate adjustments?

To influence lending rates across the banking sector Signup and view all the answers

What is the primary characteristic of a stable banking system?

It promotes confidence and supports economic growth Signup and view all the answers

Term 3 Test

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Questions and Answers

What is the primary goal of wealth redistribution methods?

What is economic growth typically measured by?

Which of the following is a factor that determines standard of living?

What is the primary difference between economic growth and economic development?

Which strategy is used to add value to natural resources?

What is a common characteristic of developing countries?

What is the Human Development Index (HDI) used to measure?

Which stage of development involves transitioning from a traditional society to one characterized by high mass consumption?

What is a key factor influencing economic growth?

What is the primary goal of promoting entrepreneurship?

What is the primary goal of the Growth, Employment, and Redistribution Policy (GEAR) in South Africa?

What characterizes Indigenous Knowledge Systems (IKS)?

According to the World Bank, what is the definition of poverty?

What is the purpose of the poverty line income?

What is the main objective of the Millennium Development Goals?

What is economic growth closely tied to?

What is the primary source of wealth?

What is a characteristic of money?

What is the technical function of money as a medium of exchange?

What is the purpose of the Lorenz Curve?

What is the range of the Gini Coefficient?

What is the focus of the Reconstruction and Development Programme (RDP) in South Africa?

What is the name of the initiative that seeks to rectify the shortcomings of previous policies and boost economic growth in South Africa?

What can result in unequal wealth distribution?

What is wealth in economic terms?

What is the effect of poverty on a society?

What is a characteristic of wealth?

What is a principle of the Gini Coefficient?

What is a factor that can impact economic opportunities?

What is economic growth an increase in?

What type of money is backed by a physical commodity?

What is the purpose of micro-lending?

What is the role of the South African Reserve Bank (SARB) in the economy?

What is the result of bank failures?

What is the main function of repo rate adjustments?

What type of deposit allows for immediate withdrawal?

What is credit creation?

Why is stability in the banking system important?

What is the role of the central bank in the economy?

What is the purpose of reserve requirements?

What is the main objective of promoting economic growth?

What is wealth in economic terms?

What is the primary source of wealth?

What is the primary objective of social grants in wealth redistribution?

What is the main advantage of measuring economic growth in real terms?

What is the Gini Coefficient used to measure?

What can result in unequal wealth distribution?

What is a factor that influences labor productivity?

What is the main limitation of using per capita GDP to measure standard of living?

What is the Lorenz Curve used to illustrate?

What is a characteristic of wealth?

What is the primary focus of economic development?

What is a common characteristic of developing countries?

What is a factor that can impact economic opportunities?

What is economic growth an increase in?

What is the primary purpose of capital investment in economic development?

What is the relationship between economic growth and standard of living?

What is the main objective of urbanization as a development strategy?

What is the primary advantage of using the Human Development Index (HDI) to measure development?

What is the primary role of government policies in economic development?

What is the main aim of the Accelerated Shared Growth Initiative for South Africa (ASGISA)?

What is the primary characteristic of Indigenous Knowledge Systems (IKS)?

What is the primary effect of poverty on a society?

What is the main function of money as a unit of account?

What is the main goal of the Millennium Development Goals (MDG)?

What is the primary characteristic of relative poverty?

What is the primary goal of the Reconstruction and Development Programme (RDP)?

What is the primary cause of poverty?

What is the primary role of the South African Reserve Bank (SARB) in the economy?

What is the primary goal of the Growth, Employment, and Redistribution Policy (GEAR)?

What is the primary characteristic of commodity money?

What type of deposit allows for withdrawal after a fixed term?

What is the primary function of the South African Reserve Bank (SARB)?

What is the consequence of bank failures on the economy?

What is the purpose of reserve requirements?

What is credit creation?