Nov P2 Med

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?

To allow for penalties against polluters (D) Signup and view all the answers

What is comparative advantage in the context of trade?

A country specializes in producing goods for which it has the lowest opportunity cost (D) Signup and view all the answers

What is one of the negative consequences of globalization?

Increased economic disparities between and within countries (A) Signup and view all the answers

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

Reliance on non-renewable energy sources (A) Signup and view all the answers

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

To encourage the adoption of renewable energy and build energy-efficient infrastructure (A) Signup and view all the answers

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

Job losses in developed countries due to outsourcing to regions with cheaper labor (C) Signup and view all the answers

What is the benefit of trade in promoting innovation?

It drives competition and innovation, leading to better products and services (A) Signup and view all the answers

What is price elasticity of demand a measure of?

How much the quantity demanded of a good responds to a change in the price of that good (A) Signup and view all the answers

What is an example of a complementary good?

Cars and fuel (C) Signup and view all the answers

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

Unit elastic (A) Signup and view all the answers

What affects the price elasticity of supply?

Production capacity (C) Signup and view all the answers

What is income elasticity of demand a measure of?

How the quantity demanded of a good responds to changes in consumer income (B) Signup and view all the answers

What is an example of an inferior good?

Generic brands (B) Signup and view all the answers

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

It helps in setting prices that optimize revenue (A) Signup and view all the answers

What is cross elasticity of demand a measure of?

How the quantity demanded of one good responds to the price change of another good (D) Signup and view all the answers

What is accounting profit?

The profit that is calculated by subtracting explicit costs from total revenue (A) Signup and view all the answers

What makes demand more elastic?

The availability of substitutes (C) Signup and view all the answers

What is the difference between fixed costs and variable costs?

Fixed costs do not vary with output, while variable costs do (A) Signup and view all the answers

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

Inelastic demand (C) Signup and view all the answers

What is marginal cost?

The cost of producing one additional unit of output (A) Signup and view all the answers

What happens to costs in the long run?

All costs become variable (B) Signup and view all the answers

What is economies of scale?

When increasing the scale of production leads to a lower cost per unit (C) Signup and view all the answers

What is total revenue?

The total income from sales, calculated as Price x Quantity (D) Signup and view all the answers

What is profit?

The difference between total revenue and total cost (D) Signup and view all the answers

What does marginal revenue represent?

The additional income from selling one more unit (D) Signup and view all the answers

What is normal profit?

The minimum profit needed for a business to continue operating (A) Signup and view all the answers

Why is understanding revenue important for a firm?

Because it affects the profitability of the firm (A) Signup and view all the answers

What is the primary definition of globalization?

The process by which businesses or other organizations develop international influence or start operating on an international scale (C) Signup and view all the answers

Which of the following is NOT a cause of globalization?

Environmental Factors (D) Signup and view all the answers

What is a characteristic of economic integration in globalization?

Removal of trade barriers (C) Signup and view all the answers

What is a result of technological convergence in globalization?

Lowering the cost of operations and fostering innovation (A) Signup and view all the answers

What is an advantage of globalization?

Economic Growth (D) Signup and view all the answers

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

Globalization (C) Signup and view all the answers

What is an example of cultural exchange in globalization?

The exchange of cultural ideas and practices (B) Signup and view all the answers

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

Increased economic growth (C) Signup and view all the answers

What is the primary objective of most businesses?

Profit maximization (A) Signup and view all the answers

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

Ensuring natural resources are used in a manner that maintains their viability for future generations (C) Signup and view all the answers

What is the Law of Supply?

Higher prices encourage increased production and supply (D) Signup and view all the answers

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

Encouraging the use of recycled materials (A) Signup and view all the answers

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

Relative price (D) Signup and view all the answers

Which of the following is a demand factor?

Price expectations (A) Signup and view all the answers

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

Demand for the substitute increases (A) Signup and view all the answers

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

To integrate sustainable practices into various sectors of the economy (B) Signup and view all the answers

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

The relationship between cost, revenue, and profitability is crucial (B) Signup and view all the answers

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

Engaging local communities in conservation efforts and sustainable development projects (C) Signup and view all the answers

What is the main driver of economic integration in globalization?

Removal of trade barriers (B) Signup and view all the answers

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

Exchange of cultural ideas and practices (A) Signup and view all the answers

Which of the following is a cause of globalization?

Trade liberalization (D) Signup and view all the answers

What is the impact of technological convergence on global markets?

Rapid advancements in technology (A) Signup and view all the answers

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

Increased movement of goods, services, capital, and labor across national borders (C) Signup and view all the answers

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

Company operating in multiple countries (A) Signup and view all the answers

What is the result of capital movement in globalization?

Unrestricted flow of capital (B) Signup and view all the answers

What is the definition of globalization?

The process by which businesses or other organizations develop international influence or start operating on an international scale (B) Signup and view all the answers

What is a key benefit of globalization?

Access to new markets and broadening of customer base (D) Signup and view all the answers

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

A significant income gap between developed and developing countries (D) Signup and view all the answers

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

To reduce pollution and environmental degradation (D) Signup and view all the answers

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

Competition (A) Signup and view all the answers

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

All of the above (C) Signup and view all the answers

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

To specialize in producing goods for which a country has the lowest opportunity cost (B) Signup and view all the answers

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

A significant income gap between developed and developing countries (C) Signup and view all the answers

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

To adopt renewable energy and build energy-efficient infrastructure (A) Signup and view all the answers

What is a key challenge posed by globalization?

Increased economic disparities between and within countries (C) Signup and view all the answers

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

Understanding and cooperation between different cultures (D) Signup and view all the answers

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

It is very responsive to price changes (A) Signup and view all the answers

What is a factor that makes demand more elastic?

Availability of substitutes (B) 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?

It is limited, making supply less responsive to price changes (C) Signup and view all the answers

What does cross elasticity of demand measure?

How the quantity demanded of one good responds to the price change of another good (C) Signup and view all the answers

What is an example of an inferior good?

Generic brands (A) Signup and view all the answers

Why is understanding price elasticity of demand important for businesses?

To set prices that optimize revenue (C) Signup and view all the answers

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

Unit elastic (C) Signup and view all the answers

What affects the price elasticity of supply?

All of the above (D) Signup and view all the answers

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

To set prices that optimize revenue (C) Signup and view all the answers

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

As the proportion of income spent on a good increases, demand becomes more elastic (C) Signup and view all the answers

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

Accounting profit excludes opportunity costs, while economic profit includes them. (B) Signup and view all the answers

What is the purpose of calculating marginal cost?

To make decisions about production levels (A) Signup and view all the answers

What is the definition of normal profit?

The profit that a firm makes when it is operating at a break-even point (B) Signup and view all the answers

What happens to costs in the long run?

All costs become variable (C) Signup and view all the answers

What is the definition of economies of scale?

When increasing the scale of production leads to a lower cost per unit (D) Signup and view all the answers

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

Education and Awareness (B) Signup and view all the answers

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

Maximizing profit (C) Signup and view all the answers

What is the formula for total revenue?

Price x Quantity (D) Signup and view all the answers

What is the definition of marginal revenue?

The additional revenue from selling one more unit (C) Signup and view all the answers

Which of the following is a factor that influences demand?

Price expectations (C) Signup and view all the answers

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

Relative price (C) Signup and view all the answers

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

Cost is less than revenue, and profitability is positive (C) Signup and view all the answers

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

Car and gasoline (B) Signup and view all the answers

What is the purpose of calculating average fixed cost?

To determine the fixed cost per unit of output (D) Signup and view all the answers

What is the definition of returns to scale?

The change in output in response to a change in the scale of production (A) Signup and view all the answers

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

-all of the above (D) Signup and view all the answers

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

Ensuring natural resources are used in a manner that maintains their viability for future generations (C) Signup and view all the answers

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

Demand for the substitute good increases (D) 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?

Cost, revenue, and profitability are interrelated (A) Signup and view all the answers

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

To promote sustainable development (B) Signup and view all the answers

What is the primary definition of globalization?

The process by which businesses or other organizations develop international influence or start operating on an international scale (B) Signup and view all the answers

Which of the following is a cause of globalization?

The reduction of tariffs and other trade barriers (C) Signup and view all the answers

What is a characteristic of economic integration in globalization?

The removal of trade barriers (B) Signup and view all the answers

What is an advantage of globalization?

Economic growth (D) Signup and view all the answers

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

Globalization (D) Signup and view all the answers

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

Improved economic efficiency (C) Signup and view all the answers

What is an example of cultural exchange in globalization?

The exchange of cultural ideas and practices (C) Signup and view all the answers

What is the main driver of economic integration in globalization?

Capital movement (D) Signup and view all the answers

What is the price elasticity of demand a measure of?

The responsiveness of quantity demanded to a change in price (D) Signup and view all the answers

Which of the following is a characteristic of elastic demand?

A small price change causes a significant change in quantity demanded (C) Signup and view all the answers

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

Availability of production resources (B) Signup and view all the answers

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

Complementary goods have a negative cross elasticity (A) Signup and view all the answers

What is the significance of income elasticity of demand?

It measures the responsiveness of quantity demanded to a change in consumer income (A) Signup and view all the answers

What is an example of a normal good?

Quality clothing (C) Signup and view all the answers

Why is understanding price elasticity of demand important for businesses?

It helps in setting prices that optimize revenue (C) Signup and view all the answers

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

To plan production levels (D) Signup and view all the answers

What is the significance of understanding cross elasticity of demand?

It highlights the interdependencies between different products (A) Signup and view all the answers

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

It helps in making more informed decisions regarding pricing strategies and production levels (A) Signup and view all the answers

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

Profit maximization (D) Signup and view all the answers

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

Relative price (B) Signup and view all the answers

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

Increased demand for the substitute (D) Signup and view all the answers

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

Ensuring natural resources are used sustainably (A) Signup and view all the answers

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

Protecting the environment (D) Signup and view all the answers

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

Cost increases revenue, which increases profitability (C) Signup and view all the answers

Which of the following is a demand factor?

Price expectations (C) Signup and view all the answers

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

Decreased demand (A) Signup and view all the answers

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

Encouraging the use of recycled materials (A) Signup and view all the answers

What is the Law of Supply?

Higher prices increase supply (D) Signup and view all the answers

What is one of the primary benefits of globalization?

Enhanced understanding and cooperation between different cultures (C) Signup and view all the answers

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

Loss of biodiversity (D) Signup and view all the answers

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

To require environmental impact assessments for new developments (A) Signup and view all the answers

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

Developed nations tend to export high-value manufactured goods while importing raw materials from developing nations (D) Signup and view all the answers

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

To promote economic growth and cultural exchange (B) Signup and view all the answers

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

Job losses in developed countries (C) Signup and view all the answers

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

Through all of the above (D) Signup and view all the answers

What is the primary driver of economic integration in globalization?

Technological convergence (C) Signup and view all the answers

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

To reduce environmental impact and promote sustainability (A) Signup and view all the answers

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

Increased economic growth and cultural exchange (B) Signup and view all the answers

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

Economic Profit (A) Signup and view all the answers

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

Marginal Cost (B) Signup and view all the answers

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

Economies of Scale (A) Signup and view all the answers

What is the formula for calculating Total Revenue?

Price x Quantity (C) Signup and view all the answers

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

Normal Profit (B) Signup and view all the answers

What is the difference between Fixed Costs and Variable Costs?

Fixed Costs do not vary with output, while Variable Costs do (C) Signup and view all the answers

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

Marginal Revenue (B) Signup and view all the answers

In the long run, what happens to costs?

All costs become variable (D) Signup and view all the answers

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

It helps determine the optimal level of output (D) Signup and view all the answers

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

Output increases by a greater proportion (D) Signup and view all the answers

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

Significant income gap between developed and developing countries (B) Signup and view all the answers

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

To reduce pollution and environmental degradation (B) Signup and view all the answers

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

All of the above (D) Signup and view all the answers

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

Spreads new technologies and practices across borders (C) Signup and view all the answers

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

Job losses in developed countries (A) Signup and view all the answers

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

Enhances understanding and cooperation between different cultures (D) Signup and view all the answers

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

Access to new markets and broadening of customer base (D) Signup and view all the answers

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

Protection of the environment through legislation and policy (B) Signup and view all the answers

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

Increased economic disparities between and within countries (D) Signup and view all the answers

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

To encourage the adoption of renewable energy and energy-efficient infrastructure (C) Signup and view all the answers

What is the main objective of sustainable environmental management?

To maintain natural resources for future generations (C) Signup and view all the answers

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

Providing financial incentives for sustainable practices (B) Signup and view all the answers

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

Capital movement (D) Signup and view all the answers

What is the result of understanding relative prices in economics?

Influences consumer and producer decisions about what to buy or produce (A) Signup and view all the answers

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

Facilitation of international business operations (B) Signup and view all the answers

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

To protect the environment and ensure sustainable development (D) Signup and view all the answers

What is a characteristic of cultural exchange in globalization?

Increased global relationships (D) Signup and view all the answers

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

Cost and revenue have a crucial impact on the profit of a firm (D) Signup and view all the answers

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

Relative price (B) Signup and view all the answers

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

Economic growth (D) Signup and view all the answers

Which of the following is a demand factor?

Consumer preferences (D) Signup and view all the answers

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

Exploitation of geographic advantages (C) Signup and view all the answers

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

Demand for the substitute good increases (A) Signup and view all the answers

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

Globalization (C) Signup and view all the answers

What is the primary objective of most businesses?

To maximize profit (C) Signup and view all the answers

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

Lowering of the cost of operations (B) Signup and view all the answers

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

Engaging local communities in conservation efforts (C) Signup and view all the answers

What is a characteristic of economic integration in globalization?

Removal of trade barriers (D) Signup and view all the answers

What is the primary difference between elastic and inelastic demand?

Elastic demand is more responsive to price changes, while inelastic demand is less responsive. (C) Signup and view all the answers

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

Availability of production resources (A) 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?

Cross elasticity of demand (D) Signup and view all the answers

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

To determine the optimal price of a good (B) Signup and view all the answers

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

Inferior good (C) Signup and view all the answers

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

They are essential for daily life (B) Signup and view all the answers

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

Price elasticity of supply (D) Signup and view all the answers

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

To understand the interdependencies between different products (C) Signup and view all the answers

What is the primary difference between elastic and inelastic supply?

Elastic supply is more responsive to price changes, while inelastic supply is less responsive. (D) Signup and view all the answers

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

To understand how changes in income affect demand (C) Signup and view all the answers

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

Accounting profit is calculated by subtracting explicit costs, while economic profit is calculated by subtracting opportunity costs. (D) Signup and view all the answers

What is the purpose of calculating marginal cost?

To decide the optimal level of output. (A) Signup and view all the answers

What happens to costs in the long run?

All costs become variable. (A) Signup and view all the answers

What is the result of economies of scale?

A lower cost per unit of production. (D) Signup and view all the answers

What is the purpose of calculating total revenue?

To measure the income from sales. (A) Signup and view all the answers

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

It is essential for determining the profit of a firm. (A) Signup and view all the answers

What is normal profit?

The minimum profit needed for sustainability. (A) Signup and view all the answers

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

Cost and revenue are directly related, while profitability is the difference between the two. (D) Signup and view all the answers

What is marginal revenue?

The additional income from selling one more unit. (D) Signup and view all the answers

Why is understanding cost structures important for businesses?

To anticipate how costs will change with different levels of output. (B) Signup and view all the answers

Nov P2 Med

Choose a study mode

Podcast

Questions and Answers

What is one of the benefits of globalization?

What is the North-South Divide referring to?

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

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

What is comparative advantage in the context of trade?

What is one of the negative consequences of globalization?

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

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

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

What is the benefit of trade in promoting innovation?

What is price elasticity of demand a measure of?

What is an example of a complementary good?

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

What affects the price elasticity of supply?

What is income elasticity of demand a measure of?

What is an example of an inferior good?

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

What is cross elasticity of demand a measure of?

What is accounting profit?

What makes demand more elastic?

What is the difference between fixed costs and variable costs?

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

What is marginal cost?

What happens to costs in the long run?

What is economies of scale?

What is total revenue?

What is profit?

What does marginal revenue represent?

What is normal profit?

Why is understanding revenue important for a firm?

What is the primary definition of globalization?

Which of the following is NOT a cause of globalization?

What is a characteristic of economic integration in globalization?

What is a result of technological convergence in globalization?

What is an advantage of globalization?

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

What is an example of cultural exchange in globalization?

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

What is the primary objective of most businesses?

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

What is the Law of Supply?

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

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

Which of the following is a demand factor?

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

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

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

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

What is the main driver of economic integration in globalization?

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

Which of the following is a cause of globalization?

What is the impact of technological convergence on global markets?

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

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

What is the result of capital movement in globalization?

What is the definition of globalization?

What is a key benefit of globalization?

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

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

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

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

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

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

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

What is a key challenge posed by globalization?

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

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

What is a factor that makes demand more elastic?

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

What does cross elasticity of demand measure?

What is an example of an inferior good?

Why is understanding price elasticity of demand important for businesses?

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

What affects the price elasticity of supply?

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

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