192 Questions
What is one of the benefits of globalization?
Access to new markets and broadening of customer base
What is the North-South Divide referring to?
The socio-economic and political differences between developed and developing countries
What is one of the environmental problems faced by South Africa?
All of the above
What is the purpose of environmental impact assessments in South Africa?
To allow for penalties against polluters
What is comparative advantage in the context of trade?
A country specializes in producing goods for which it has the lowest opportunity cost
What is one of the negative consequences of globalization?
Increased economic disparities between and within countries
What is the main reason for the energy crisis in South Africa?
Reliance on non-renewable energy sources
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
What is the result of labor market disruption in developed countries?
Job losses in developed countries due to outsourcing to regions with cheaper labor
What is the benefit of trade in promoting innovation?
It drives competition and innovation, leading to better products and services
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
What is an example of a complementary good?
Cars and fuel
What is the term for when the elasticity is exactly 1?
Unit elastic
What affects the price elasticity of supply?
Production capacity
What is income elasticity of demand a measure of?
How the quantity demanded of a good responds to changes in consumer income
What is an example of an inferior good?
Generic brands
What is the significance of understanding price elasticity of demand in business decision-making?
It helps in setting prices that optimize revenue
What is cross elasticity of demand a measure of?
How the quantity demanded of one good responds to the price change of another good
What is accounting profit?
The profit that is calculated by subtracting explicit costs from total revenue
What makes demand more elastic?
The availability of substitutes
What is the difference between fixed costs and variable costs?
Fixed costs do not vary with output, while variable costs do
What is the term for when the elasticity is less than 1?
Inelastic demand
What is marginal cost?
The cost of producing one additional unit of output
What happens to costs in the long run?
All costs become variable
What is economies of scale?
When increasing the scale of production leads to a lower cost per unit
What is total revenue?
The total income from sales, calculated as Price x Quantity
What is profit?
The difference between total revenue and total cost
What does marginal revenue represent?
The additional income from selling one more unit
What is normal profit?
The minimum profit needed for a business to continue operating
Why is understanding revenue important for a firm?
Because it affects the profitability of the firm
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
Which of the following is NOT a cause of globalization?
Environmental Factors
What is a characteristic of economic integration in globalization?
Removal of trade barriers
What is a result of technological convergence in globalization?
Lowering the cost of operations and fostering innovation
What is an advantage of globalization?
Economic Growth
What facilitates the movement of goods, services, capital, and labor across national borders?
Globalization
What is an example of cultural exchange in globalization?
The exchange of cultural ideas and practices
What is the result of the integration of economic activities in globalization?
Increased economic growth
What is the primary objective of most businesses?
Profit maximization
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
What is the Law of Supply?
Higher prices encourage increased production and supply
What is the primary way to reduce environmental impact in the context of recycling and waste management?
Encouraging the use of recycled materials
What is the term for the cost of one good or service in terms of another?
Relative price
Which of the following is a demand factor?
Price expectations
What is the result of an increase in the price of one good when there is a substitute?
Demand for the substitute increases
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
What is the relationship between cost, revenue, and profitability in the economic framework of businesses?
The relationship between cost, revenue, and profitability is crucial
What is an example of a community involvement approach to sustainability?
Engaging local communities in conservation efforts and sustainable development projects
What is the main driver of economic integration in globalization?
Removal of trade barriers
What is the result of the increasing relationship among cultures in globalization?
Exchange of cultural ideas and practices
Which of the following is a cause of globalization?
Trade liberalization
What is the impact of technological convergence on global markets?
Rapid advancements in technology
What is the result of the integration of economic activities in globalization?
Increased movement of goods, services, capital, and labor across national borders
What is an example of a multinational corporation in the context of globalization?
Company operating in multiple countries
What is the result of capital movement in globalization?
Unrestricted flow of capital
What is the definition of globalization?
The process by which businesses or other organizations develop international influence or start operating on an international scale
What is a key benefit of globalization?
Access to new markets and broadening of customer base
Which of the following is a result of the North-South Divide?
A significant income gap between developed and developing countries
What is the primary purpose of environmental impact assessments in South Africa?
To reduce pollution and environmental degradation
What is a key driver of innovation in the context of globalization?
Competition
What is a key challenge to sustainable development in South Africa?
All of the above
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
What is a key implication of the North-South Divide?
A significant income gap between developed and developing countries
What is the primary purpose of subsidies and incentives in South Africa's environmental policy?
To adopt renewable energy and build energy-efficient infrastructure
What is a key challenge posed by globalization?
Increased economic disparities between and within countries
What is a key benefit of cultural exchange in the context of globalization?
Understanding and cooperation between different cultures
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
What is a factor that makes demand more elastic?
Availability of substitutes
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
What does cross elasticity of demand measure?
How the quantity demanded of one good responds to the price change of another good
What is an example of an inferior good?
Generic brands
Why is understanding price elasticity of demand important for businesses?
To set prices that optimize revenue
What is the term for when the elasticity is exactly 1?
Unit elastic
What affects the price elasticity of supply?
All of the above
What is the primary goal of understanding elasticity in business decision-making?
To set prices that optimize revenue
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
What is the main difference between accounting profit and economic profit?
Accounting profit excludes opportunity costs, while economic profit includes them.
What is the purpose of calculating marginal cost?
To make decisions about production levels
What is the definition of normal profit?
The profit that a firm makes when it is operating at a break-even point
What happens to costs in the long run?
All costs become variable
What is the definition of economies of scale?
When increasing the scale of production leads to a lower cost per unit
Which of the following approaches to sustainability involves educating the public about environmental issues?
Education and Awareness
What is the primary objective of most businesses in the context of economics?
Maximizing profit
What is the formula for total revenue?
Price x Quantity
What is the definition of marginal revenue?
The additional revenue from selling one more unit
Which of the following is a factor that influences demand?
Price expectations
What is the term for the cost of one good or service in terms of another?
Relative price
What is the relationship between cost, revenue, and profitability in the economic framework of businesses?
Cost is less than revenue, and profitability is positive
Which of the following is an example of a complementary good?
Car and gasoline
What is the purpose of calculating average fixed cost?
To determine the fixed cost per unit of output
What is the definition of returns to scale?
The change in output in response to a change in the scale of production
What is the primary way to reduce environmental impact in the context of public transportation and vehicle emissions?
-all of the above
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
What is the result of an increase in the price of one good when there is a substitute?
Demand for the substitute good increases
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
What is the primary goal of national and international cooperation in the context of environmental sustainability?
To promote sustainable development
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
Which of the following is a cause of globalization?
The reduction of tariffs and other trade barriers
What is a characteristic of economic integration in globalization?
The removal of trade barriers
What is an advantage of globalization?
Economic growth
What facilitates the movement of goods, services, capital, and labor across national borders?
Globalization
What is a result of the integration of economic activities in globalization?
Improved economic efficiency
What is an example of cultural exchange in globalization?
The exchange of cultural ideas and practices
What is the main driver of economic integration in globalization?
Capital movement
What is the price elasticity of demand a measure of?
The responsiveness of quantity demanded to a change in price
Which of the following is a characteristic of elastic demand?
A small price change causes a significant change in quantity demanded
What is the primary factor that determines the price elasticity of supply?
Availability of production resources
What is the relationship between cross elasticity of demand and the type of goods?
Complementary goods have a negative cross elasticity
What is the significance of income elasticity of demand?
It measures the responsiveness of quantity demanded to a change in consumer income
What is an example of a normal good?
Quality clothing
Why is understanding price elasticity of demand important for businesses?
It helps in setting prices that optimize revenue
What is the primary purpose of understanding price elasticity of supply?
To plan production levels
What is the significance of understanding cross elasticity of demand?
It highlights the interdependencies between different products
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
What is the primary objective of most businesses in the economic framework?
Profit maximization
What is the term for the cost of one good or service in terms of another?
Relative price
What is the result of an increase in the price of one good when there is a substitute?
Increased demand for the substitute
Which of the following is a key aspect of sustainable environmental management?
Ensuring natural resources are used sustainably
What is the primary goal of national and international cooperation in the context of environmental sustainability?
Protecting the environment
What is the relationship between cost, revenue, and profitability in the economic framework of businesses?
Cost increases revenue, which increases profitability
Which of the following is a demand factor?
Price expectations
What is the result of an increase in the price of a good when the good is inelastic?
Decreased demand
What is the primary way to reduce environmental impact in the context of recycling and waste management?
Encouraging the use of recycled materials
What is the Law of Supply?
Higher prices increase supply
What is one of the primary benefits of globalization?
Enhanced understanding and cooperation between different cultures
What is the main environmental problem faced by South Africa due to overexploitation of species?
Loss of biodiversity
What is the purpose of the National Environment Management Act in South Africa?
To require environmental impact assessments for new developments
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
What is the primary goal of globalization in terms of economic growth?
To promote economic growth and cultural exchange
What is the result of outsourcing jobs from developed countries to regions with cheaper labor?
Job losses in developed countries
What is the primary means of promoting sustainable development in South Africa?
Through all of the above
What is the primary driver of economic integration in globalization?
Technological convergence
What is the primary objective of environmental policy in South Africa?
To reduce environmental impact and promote sustainability
What is the result of increased trade and investment in globalization?
Increased economic growth and cultural exchange
Which type of profit calculation takes into account both explicit costs and opportunity costs?
Economic Profit
What is the term for the cost of producing one additional unit of output?
Marginal Cost
What occurs when increasing the scale of production leads to a lower cost per unit?
Economies of Scale
What is the formula for calculating Total Revenue?
Price x Quantity
What is the term for the minimal profit required for sustainability?
Normal Profit
What is the difference between Fixed Costs and Variable Costs?
Fixed Costs do not vary with output, while Variable Costs do
What is the term for the additional income from selling one more unit?
Marginal Revenue
In the long run, what happens to costs?
All costs become variable
What is the significance of understanding revenue in business decision-making?
It helps determine the optimal level of output
What is the result of a proportional increase in all inputs in the context of Returns to Scale?
Output increases by a greater proportion
What is a significant consequence of the North-South Divide?
Significant income gap between developed and developing countries
What is the primary objective of environmental impact assessments in South Africa?
To reduce pollution and environmental degradation
What is a major challenge to sustainable development in South Africa?
All of the above
What is a benefit of trade in the context of globalization?
Spreads new technologies and practices across borders
What is a consequence of labor market disruption in developed countries?
Job losses in developed countries
What is a characteristic of cultural exchange in the context of globalization?
Enhances understanding and cooperation between different cultures
What is a result of the integration of economic activities in the context of globalization?
Access to new markets and broadening of customer base
What is a key aspect of environmental sustainability in South Africa?
Protection of the environment through legislation and policy
What is a consequence of inequality in the context of globalization?
Increased economic disparities between and within countries
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
What is the main objective of sustainable environmental management?
To maintain natural resources for future generations
Which of the following is an economic measure to promote sustainability?
Providing financial incentives for sustainable practices
What is the primary driver of the free movement of resources across borders in globalization?
Capital movement
What is the result of understanding relative prices in economics?
Influences consumer and producer decisions about what to buy or produce
What is a result of the standardization of laws and regulations in globalization?
Facilitation of international business operations
What is the primary goal of national and international cooperation in the context of environmental sustainability?
To protect the environment and ensure sustainable development
What is a characteristic of cultural exchange in globalization?
Increased global relationships
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
What is the term for the cost of one good or service in terms of another?
Relative price
What is an effect of the integration of economic activities in globalization?
Economic growth
Which of the following is a demand factor?
Consumer preferences
What is a consequence of multinational corporations operating in multiple countries?
Exploitation of geographic advantages
What is the result of an increase in the price of one good when there is a substitute?
Demand for the substitute good increases
What facilitates the movement of goods, services, capital, and labor across national borders?
Globalization
What is the primary objective of most businesses?
To maximize profit
What is a result of rapid advancements in technology in globalization?
Lowering of the cost of operations
Which of the following is a community involvement approach to sustainability?
Engaging local communities in conservation efforts
What is a characteristic of economic integration in globalization?
Removal of trade barriers
What is the primary difference between elastic and inelastic demand?
Elastic demand is more responsive to price changes, while inelastic demand is less responsive.
What is the primary factor that affects the elasticity of supply?
Availability of production resources
What is the term for the responsiveness of quantity demanded to a change in the price of another good?
Cross elasticity of demand
What is the primary significance of understanding price elasticity of demand in business decision-making?
To determine the optimal price of a good
What is the term for a good whose demand increases as income decreases?
Inferior good
What is the primary reason why necessities tend to have inelastic demand?
They are essential for daily life
What is the term for the responsiveness of quantity supplied to a change in price?
Price elasticity of supply
What is the primary significance of understanding cross elasticity of demand?
To understand the interdependencies between different products
What is the primary difference between elastic and inelastic supply?
Elastic supply is more responsive to price changes, while inelastic supply is less responsive.
What is the primary significance of understanding income elasticity of demand?
To understand how changes in income affect demand
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.
What is the purpose of calculating marginal cost?
To decide the optimal level of output.
What happens to costs in the long run?
All costs become variable.
What is the result of economies of scale?
A lower cost per unit of production.
What is the purpose of calculating total revenue?
To measure the income from sales.
What is the significance of understanding revenue in business decision-making?
It is essential for determining the profit of a firm.
What is normal profit?
The minimum profit needed for sustainability.
What is the relationship between cost, revenue, and profitability?
Cost and revenue are directly related, while profitability is the difference between the two.
What is marginal revenue?
The additional income from selling one more unit.
Why is understanding cost structures important for businesses?
To anticipate how costs will change with different levels of output.
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