Nov P2 Med
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Questions and Answers

What is one of the benefits of globalization?

  • Access to new markets and broadening of customer base (correct)
  • Increased economic disparities between countries
  • Labor market disruption in developed countries
  • Cultural erosion of local cultures

    • What is the North-South Divide referring to?

  • The trade patterns between European and Asian countries
  • The difference between urban and rural areas
  • The socio-economic and political differences between developed and developing countries (correct)
  • The environmental problems faced by South Africa

    • What is one of the environmental problems faced by South Africa?

  • Overpopulation in rural areas
  • Land degradation due to poor agricultural practices
  • Climate change due to increased industrial activity
  • All of the above (correct)

    • What is the purpose of environmental impact assessments in South Africa?

    <p>To allow for penalties against polluters</p> Signup and view all the answers

    What is comparative advantage in the context of trade?

    <p>A country specializes in producing goods for which it has the lowest opportunity cost</p> Signup and view all the answers

    What is one of the negative consequences of globalization?

    <p>Increased economic disparities between and within countries</p> Signup and view all the answers

    What is the main reason for the energy crisis in South Africa?

    <p>Reliance on non-renewable energy sources</p> Signup and view all the answers

    What is the purpose of subsidies and incentives in South Africa's environmental policy?

    <p>To encourage the adoption of renewable energy and build energy-efficient infrastructure</p> Signup and view all the answers

    What is the result of labor market disruption in developed countries?

    <p>Job losses in developed countries due to outsourcing to regions with cheaper labor</p> Signup and view all the answers

    What is the benefit of trade in promoting innovation?

    <p>It drives competition and innovation, leading to better products and services</p> Signup and view all the answers

    What is price elasticity of demand a measure of?

    <p>How much the quantity demanded of a good responds to a change in the price of that good</p> Signup and view all the answers

    What is an example of a complementary good?

    <p>Cars and fuel</p> Signup and view all the answers

    What is the term for when the elasticity is exactly 1?

    <p>Unit elastic</p> Signup and view all the answers

    What affects the price elasticity of supply?

    <p>Production capacity</p> Signup and view all the answers

    What is income elasticity of demand a measure of?

    <p>How the quantity demanded of a good responds to changes in consumer income</p> Signup and view all the answers

    What is an example of an inferior good?

    <p>Generic brands</p> Signup and view all the answers

    What is the significance of understanding price elasticity of demand in business decision-making?

    <p>It helps in setting prices that optimize revenue</p> Signup and view all the answers

    What is cross elasticity of demand a measure of?

    <p>How the quantity demanded of one good responds to the price change of another good</p> Signup and view all the answers

    What is accounting profit?

    <p>The profit that is calculated by subtracting explicit costs from total revenue</p> Signup and view all the answers

    What makes demand more elastic?

    <p>The availability of substitutes</p> Signup and view all the answers

    What is the difference between fixed costs and variable costs?

    <p>Fixed costs do not vary with output, while variable costs do</p> Signup and view all the answers

    What is the term for when the elasticity is less than 1?

    <p>Inelastic demand</p> Signup and view all the answers

    What is marginal cost?

    <p>The cost of producing one additional unit of output</p> Signup and view all the answers

    What happens to costs in the long run?

    <p>All costs become variable</p> Signup and view all the answers

    What is economies of scale?

    <p>When increasing the scale of production leads to a lower cost per unit</p> Signup and view all the answers

    What is total revenue?

    <p>The total income from sales, calculated as Price x Quantity</p> Signup and view all the answers

    What is profit?

    <p>The difference between total revenue and total cost</p> Signup and view all the answers

    What does marginal revenue represent?

    <p>The additional income from selling one more unit</p> Signup and view all the answers

    What is normal profit?

    <p>The minimum profit needed for a business to continue operating</p> Signup and view all the answers

    Why is understanding revenue important for a firm?

    <p>Because it affects the profitability of the firm</p> Signup and view all the answers

    What is the primary definition of globalization?

    <p>The process by which businesses or other organizations develop international influence or start operating on an international scale</p> Signup and view all the answers

    Which of the following is NOT a cause of globalization?

    <p>Environmental Factors</p> Signup and view all the answers

    What is a characteristic of economic integration in globalization?

    <p>Removal of trade barriers</p> Signup and view all the answers

    What is a result of technological convergence in globalization?

    <p>Lowering the cost of operations and fostering innovation</p> Signup and view all the answers

    What is an advantage of globalization?

    <p>Economic Growth</p> Signup and view all the answers

    What facilitates the movement of goods, services, capital, and labor across national borders?

    <p>Globalization</p> Signup and view all the answers

    What is an example of cultural exchange in globalization?

    <p>The exchange of cultural ideas and practices</p> Signup and view all the answers

    What is the result of the integration of economic activities in globalization?

    <p>Increased economic growth</p> Signup and view all the answers

    What is the primary objective of most businesses?

    <p>Profit maximization</p> Signup and view all the answers

    Which of the following is a key aspect of sustainable environmental management?

    <p>Ensuring natural resources are used in a manner that maintains their viability for future generations</p> Signup and view all the answers

    What is the Law of Supply?

    <p>Higher prices encourage increased production and supply</p> Signup and view all the answers

    What is the primary way to reduce environmental impact in the context of recycling and waste management?

    <p>Encouraging the use of recycled materials</p> Signup and view all the answers

    What is the term for the cost of one good or service in terms of another?

    <p>Relative price</p> Signup and view all the answers

    Which of the following is a demand factor?

    <p>Price expectations</p> Signup and view all the answers

    What is the result of an increase in the price of one good when there is a substitute?

    <p>Demand for the substitute increases</p> Signup and view all the answers

    What is the primary goal of national and international cooperation in the context of environmental sustainability?

    <p>To integrate sustainable practices into various sectors of the economy</p> Signup and view all the answers

    What is the relationship between cost, revenue, and profitability in the economic framework of businesses?

    <p>The relationship between cost, revenue, and profitability is crucial</p> Signup and view all the answers

    What is an example of a community involvement approach to sustainability?

    <p>Engaging local communities in conservation efforts and sustainable development projects</p> Signup and view all the answers

    What is the main driver of economic integration in globalization?

    <p>Removal of trade barriers</p> Signup and view all the answers

    What is the result of the increasing relationship among cultures in globalization?

    <p>Exchange of cultural ideas and practices</p> Signup and view all the answers

    Which of the following is a cause of globalization?

    <p>Trade liberalization</p> Signup and view all the answers

    What is the impact of technological convergence on global markets?

    <p>Rapid advancements in technology</p> Signup and view all the answers

    What is the result of the integration of economic activities in globalization?

    <p>Increased movement of goods, services, capital, and labor across national borders</p> Signup and view all the answers

    What is an example of a multinational corporation in the context of globalization?

    <p>Company operating in multiple countries</p> Signup and view all the answers

    What is the result of capital movement in globalization?

    <p>Unrestricted flow of capital</p> Signup and view all the answers

    What is the definition of globalization?

    <p>The process by which businesses or other organizations develop international influence or start operating on an international scale</p> Signup and view all the answers

    What is a key benefit of globalization?

    <p>Access to new markets and broadening of customer base</p> Signup and view all the answers

    Which of the following is a result of the North-South Divide?

    <p>A significant income gap between developed and developing countries</p> Signup and view all the answers

    What is the primary purpose of environmental impact assessments in South Africa?

    <p>To reduce pollution and environmental degradation</p> Signup and view all the answers

    What is a key driver of innovation in the context of globalization?

    <p>Competition</p> Signup and view all the answers

    What is a key challenge to sustainable development in South Africa?

    <p>All of the above</p> Signup and view all the answers

    What is the main objective of trade in the context of comparative advantage?

    <p>To specialize in producing goods for which a country has the lowest opportunity cost</p> Signup and view all the answers

    What is a key implication of the North-South Divide?

    <p>A significant income gap between developed and developing countries</p> Signup and view all the answers

    What is the primary purpose of subsidies and incentives in South Africa's environmental policy?

    <p>To adopt renewable energy and build energy-efficient infrastructure</p> Signup and view all the answers

    What is a key challenge posed by globalization?

    <p>Increased economic disparities between and within countries</p> Signup and view all the answers

    What is a key benefit of cultural exchange in the context of globalization?

    <p>Understanding and cooperation between different cultures</p> Signup and view all the answers

    When the price elasticity of demand is greater than 1, what can be said about the quantity demanded?

    <p>It is very responsive to price changes</p> Signup and view all the answers

    What is a factor that makes demand more elastic?

    <p>Availability of substitutes</p> Signup and view all the answers

    When the price elasticity of supply is less than 1, what can be said about the capacity to increase production?

    <p>It is limited, making supply less responsive to price changes</p> Signup and view all the answers

    What does cross elasticity of demand measure?

    <p>How the quantity demanded of one good responds to the price change of another good</p> Signup and view all the answers

    What is an example of an inferior good?

    <p>Generic brands</p> Signup and view all the answers

    Why is understanding price elasticity of demand important for businesses?

    <p>To set prices that optimize revenue</p> Signup and view all the answers

    What is the term for when the elasticity is exactly 1?

    <p>Unit elastic</p> Signup and view all the answers

    What affects the price elasticity of supply?

    <p>All of the above</p> Signup and view all the answers

    What is the primary goal of understanding elasticity in business decision-making?

    <p>To set prices that optimize revenue</p> Signup and view all the answers

    What is the relationship between price elasticity of demand and the proportion of income spent on a good?

    <p>As the proportion of income spent on a good increases, demand becomes more elastic</p> Signup and view all the answers

    What is the main difference between accounting profit and economic profit?

    <p>Accounting profit excludes opportunity costs, while economic profit includes them.</p> Signup and view all the answers

    What is the purpose of calculating marginal cost?

    <p>To make decisions about production levels</p> Signup and view all the answers

    What is the definition of normal profit?

    <p>The profit that a firm makes when it is operating at a break-even point</p> Signup and view all the answers

    What happens to costs in the long run?

    <p>All costs become variable</p> Signup and view all the answers

    What is the definition of economies of scale?

    <p>When increasing the scale of production leads to a lower cost per unit</p> Signup and view all the answers

    Which of the following approaches to sustainability involves educating the public about environmental issues?

    <p>Education and Awareness</p> Signup and view all the answers

    What is the primary objective of most businesses in the context of economics?

    <p>Maximizing profit</p> Signup and view all the answers

    What is the formula for total revenue?

    <p>Price x Quantity</p> Signup and view all the answers

    What is the definition of marginal revenue?

    <p>The additional revenue from selling one more unit</p> Signup and view all the answers

    Which of the following is a factor that influences demand?

    <p>Price expectations</p> Signup and view all the answers

    What is the term for the cost of one good or service in terms of another?

    <p>Relative price</p> Signup and view all the answers

    What is the relationship between cost, revenue, and profitability in the economic framework of businesses?

    <p>Cost is less than revenue, and profitability is positive</p> Signup and view all the answers

    Which of the following is an example of a complementary good?

    <p>Car and gasoline</p> Signup and view all the answers

    What is the purpose of calculating average fixed cost?

    <p>To determine the fixed cost per unit of output</p> Signup and view all the answers

    What is the definition of returns to scale?

    <p>The change in output in response to a change in the scale of production</p> Signup and view all the answers

    What is the primary way to reduce environmental impact in the context of public transportation and vehicle emissions?

    <p>-all of the above</p> Signup and view all the answers

    Which of the following is a characteristic of sustainable environmental management?

    <p>Ensuring natural resources are used in a manner that maintains their viability for future generations</p> Signup and view all the answers

    What is the result of an increase in the price of one good when there is a substitute?

    <p>Demand for the substitute good increases</p> Signup and view all the answers

    Which of the following is a key aspect of the relationship between cost, revenue, and profitability in the economic framework of businesses?

    <p>Cost, revenue, and profitability are interrelated</p> Signup and view all the answers

    What is the primary goal of national and international cooperation in the context of environmental sustainability?

    <p>To promote sustainable development</p> Signup and view all the answers

    What is the primary definition of globalization?

    <p>The process by which businesses or other organizations develop international influence or start operating on an international scale</p> Signup and view all the answers

    Which of the following is a cause of globalization?

    <p>The reduction of tariffs and other trade barriers</p> Signup and view all the answers

    What is a characteristic of economic integration in globalization?

    <p>The removal of trade barriers</p> Signup and view all the answers

    What is an advantage of globalization?

    <p>Economic growth</p> Signup and view all the answers

    What facilitates the movement of goods, services, capital, and labor across national borders?

    <p>Globalization</p> Signup and view all the answers

    What is a result of the integration of economic activities in globalization?

    <p>Improved economic efficiency</p> Signup and view all the answers

    What is an example of cultural exchange in globalization?

    <p>The exchange of cultural ideas and practices</p> Signup and view all the answers

    What is the main driver of economic integration in globalization?

    <p>Capital movement</p> Signup and view all the answers

    What is the price elasticity of demand a measure of?

    <p>The responsiveness of quantity demanded to a change in price</p> Signup and view all the answers

    Which of the following is a characteristic of elastic demand?

    <p>A small price change causes a significant change in quantity demanded</p> Signup and view all the answers

    What is the primary factor that determines the price elasticity of supply?

    <p>Availability of production resources</p> Signup and view all the answers

    What is the relationship between cross elasticity of demand and the type of goods?

    <p>Complementary goods have a negative cross elasticity</p> Signup and view all the answers

    What is the significance of income elasticity of demand?

    <p>It measures the responsiveness of quantity demanded to a change in consumer income</p> Signup and view all the answers

    What is an example of a normal good?

    <p>Quality clothing</p> Signup and view all the answers

    Why is understanding price elasticity of demand important for businesses?

    <p>It helps in setting prices that optimize revenue</p> Signup and view all the answers

    What is the primary purpose of understanding price elasticity of supply?

    <p>To plan production levels</p> Signup and view all the answers

    What is the significance of understanding cross elasticity of demand?

    <p>It highlights the interdependencies between different products</p> Signup and view all the answers

    What is the primary significance of understanding elasticities in business decision-making?

    <p>It helps in making more informed decisions regarding pricing strategies and production levels</p> Signup and view all the answers

    What is the primary objective of most businesses in the economic framework?

    <p>Profit maximization</p> Signup and view all the answers

    What is the term for the cost of one good or service in terms of another?

    <p>Relative price</p> Signup and view all the answers

    What is the result of an increase in the price of one good when there is a substitute?

    <p>Increased demand for the substitute</p> Signup and view all the answers

    Which of the following is a key aspect of sustainable environmental management?

    <p>Ensuring natural resources are used sustainably</p> Signup and view all the answers

    What is the primary goal of national and international cooperation in the context of environmental sustainability?

    <p>Protecting the environment</p> Signup and view all the answers

    What is the relationship between cost, revenue, and profitability in the economic framework of businesses?

    <p>Cost increases revenue, which increases profitability</p> Signup and view all the answers

    Which of the following is a demand factor?

    <p>Price expectations</p> Signup and view all the answers

    What is the result of an increase in the price of a good when the good is inelastic?

    <p>Decreased demand</p> Signup and view all the answers

    What is the primary way to reduce environmental impact in the context of recycling and waste management?

    <p>Encouraging the use of recycled materials</p> Signup and view all the answers

    What is the Law of Supply?

    <p>Higher prices increase supply</p> Signup and view all the answers

    What is one of the primary benefits of globalization?

    <p>Enhanced understanding and cooperation between different cultures</p> Signup and view all the answers

    What is the main environmental problem faced by South Africa due to overexploitation of species?

    <p>Loss of biodiversity</p> Signup and view all the answers

    What is the purpose of the National Environment Management Act in South Africa?

    <p>To require environmental impact assessments for new developments</p> Signup and view all the answers

    What is the result of the North-South Divide in terms of trade patterns?

    <p>Developed nations tend to export high-value manufactured goods while importing raw materials from developing nations</p> Signup and view all the answers

    What is the primary goal of globalization in terms of economic growth?

    <p>To promote economic growth and cultural exchange</p> Signup and view all the answers

    What is the result of outsourcing jobs from developed countries to regions with cheaper labor?

    <p>Job losses in developed countries</p> Signup and view all the answers

    What is the primary means of promoting sustainable development in South Africa?

    <p>Through all of the above</p> Signup and view all the answers

    What is the primary driver of economic integration in globalization?

    <p>Technological convergence</p> Signup and view all the answers

    What is the primary objective of environmental policy in South Africa?

    <p>To reduce environmental impact and promote sustainability</p> Signup and view all the answers

    What is the result of increased trade and investment in globalization?

    <p>Increased economic growth and cultural exchange</p> Signup and view all the answers

    Which type of profit calculation takes into account both explicit costs and opportunity costs?

    <p>Economic Profit</p> Signup and view all the answers

    What is the term for the cost of producing one additional unit of output?

    <p>Marginal Cost</p> Signup and view all the answers

    What occurs when increasing the scale of production leads to a lower cost per unit?

    <p>Economies of Scale</p> Signup and view all the answers

    What is the formula for calculating Total Revenue?

    <p>Price x Quantity</p> Signup and view all the answers

    What is the term for the minimal profit required for sustainability?

    <p>Normal Profit</p> Signup and view all the answers

    What is the difference between Fixed Costs and Variable Costs?

    <p>Fixed Costs do not vary with output, while Variable Costs do</p> Signup and view all the answers

    What is the term for the additional income from selling one more unit?

    <p>Marginal Revenue</p> Signup and view all the answers

    In the long run, what happens to costs?

    <p>All costs become variable</p> Signup and view all the answers

    What is the significance of understanding revenue in business decision-making?

    <p>It helps determine the optimal level of output</p> Signup and view all the answers

    What is the result of a proportional increase in all inputs in the context of Returns to Scale?

    <p>Output increases by a greater proportion</p> Signup and view all the answers

    What is a significant consequence of the North-South Divide?

    <p>Significant income gap between developed and developing countries</p> Signup and view all the answers

    What is the primary objective of environmental impact assessments in South Africa?

    <p>To reduce pollution and environmental degradation</p> Signup and view all the answers

    What is a major challenge to sustainable development in South Africa?

    <p>All of the above</p> Signup and view all the answers

    What is a benefit of trade in the context of globalization?

    <p>Spreads new technologies and practices across borders</p> Signup and view all the answers

    What is a consequence of labor market disruption in developed countries?

    <p>Job losses in developed countries</p> Signup and view all the answers

    What is a characteristic of cultural exchange in the context of globalization?

    <p>Enhances understanding and cooperation between different cultures</p> Signup and view all the answers

    What is a result of the integration of economic activities in the context of globalization?

    <p>Access to new markets and broadening of customer base</p> Signup and view all the answers

    What is a key aspect of environmental sustainability in South Africa?

    <p>Protection of the environment through legislation and policy</p> Signup and view all the answers

    What is a consequence of inequality in the context of globalization?

    <p>Increased economic disparities between and within countries</p> Signup and view all the answers

    What is the primary purpose of subsidies and incentives in South Africa's environmental policy?

    <p>To encourage the adoption of renewable energy and energy-efficient infrastructure</p> Signup and view all the answers

    What is the main objective of sustainable environmental management?

    <p>To maintain natural resources for future generations</p> Signup and view all the answers

    Which of the following is an economic measure to promote sustainability?

    <p>Providing financial incentives for sustainable practices</p> Signup and view all the answers

    What is the primary driver of the free movement of resources across borders in globalization?

    <p>Capital movement</p> Signup and view all the answers

    What is the result of understanding relative prices in economics?

    <p>Influences consumer and producer decisions about what to buy or produce</p> Signup and view all the answers

    What is a result of the standardization of laws and regulations in globalization?

    <p>Facilitation of international business operations</p> Signup and view all the answers

    What is the primary goal of national and international cooperation in the context of environmental sustainability?

    <p>To protect the environment and ensure sustainable development</p> Signup and view all the answers

    What is a characteristic of cultural exchange in globalization?

    <p>Increased global relationships</p> Signup and view all the answers

    What is the relationship between cost, revenue, and profitability in the economic framework of businesses?

    <p>Cost and revenue have a crucial impact on the profit of a firm</p> Signup and view all the answers

    What is the term for the cost of one good or service in terms of another?

    <p>Relative price</p> Signup and view all the answers

    What is an effect of the integration of economic activities in globalization?

    <p>Economic growth</p> Signup and view all the answers

    Which of the following is a demand factor?

    <p>Consumer preferences</p> Signup and view all the answers

    What is a consequence of multinational corporations operating in multiple countries?

    <p>Exploitation of geographic advantages</p> Signup and view all the answers

    What is the result of an increase in the price of one good when there is a substitute?

    <p>Demand for the substitute good increases</p> Signup and view all the answers

    What facilitates the movement of goods, services, capital, and labor across national borders?

    <p>Globalization</p> Signup and view all the answers

    What is the primary objective of most businesses?

    <p>To maximize profit</p> Signup and view all the answers

    What is a result of rapid advancements in technology in globalization?

    <p>Lowering of the cost of operations</p> Signup and view all the answers

    Which of the following is a community involvement approach to sustainability?

    <p>Engaging local communities in conservation efforts</p> Signup and view all the answers

    What is a characteristic of economic integration in globalization?

    <p>Removal of trade barriers</p> Signup and view all the answers

    What is the primary difference between elastic and inelastic demand?

    <p>Elastic demand is more responsive to price changes, while inelastic demand is less responsive.</p> Signup and view all the answers

    What is the primary factor that affects the elasticity of supply?

    <p>Availability of production resources</p> Signup and view all the answers

    What is the term for the responsiveness of quantity demanded to a change in the price of another good?

    <p>Cross elasticity of demand</p> Signup and view all the answers

    What is the primary significance of understanding price elasticity of demand in business decision-making?

    <p>To determine the optimal price of a good</p> Signup and view all the answers

    What is the term for a good whose demand increases as income decreases?

    <p>Inferior good</p> Signup and view all the answers

    What is the primary reason why necessities tend to have inelastic demand?

    <p>They are essential for daily life</p> Signup and view all the answers

    What is the term for the responsiveness of quantity supplied to a change in price?

    <p>Price elasticity of supply</p> Signup and view all the answers

    What is the primary significance of understanding cross elasticity of demand?

    <p>To understand the interdependencies between different products</p> Signup and view all the answers

    What is the primary difference between elastic and inelastic supply?

    <p>Elastic supply is more responsive to price changes, while inelastic supply is less responsive.</p> Signup and view all the answers

    What is the primary significance of understanding income elasticity of demand?

    <p>To understand how changes in income affect demand</p> Signup and view all the answers

    What is the main difference between accounting profit and economic profit?

    <p>Accounting profit is calculated by subtracting explicit costs, while economic profit is calculated by subtracting opportunity costs.</p> Signup and view all the answers

    What is the purpose of calculating marginal cost?

    <p>To decide the optimal level of output.</p> Signup and view all the answers

    What happens to costs in the long run?

    <p>All costs become variable.</p> Signup and view all the answers

    What is the result of economies of scale?

    <p>A lower cost per unit of production.</p> Signup and view all the answers

    What is the purpose of calculating total revenue?

    <p>To measure the income from sales.</p> Signup and view all the answers

    What is the significance of understanding revenue in business decision-making?

    <p>It is essential for determining the profit of a firm.</p> Signup and view all the answers

    What is normal profit?

    <p>The minimum profit needed for sustainability.</p> Signup and view all the answers

    What is the relationship between cost, revenue, and profitability?

    <p>Cost and revenue are directly related, while profitability is the difference between the two.</p> Signup and view all the answers

    What is marginal revenue?

    <p>The additional income from selling one more unit.</p> Signup and view all the answers

    Why is understanding cost structures important for businesses?

    <p>To anticipate how costs will change with different levels of output.</p> Signup and view all the answers

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