CH 1.3 Economic Systems

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What is the primary characteristic of a market economy?

Centralized decision-making and planning

State ownership of production factors

Even distribution of income

Predominantly private ownership of production factors (correct)

What is a potential disadvantage of a market economy?

Full employment and provision of essential services

Efficient resource utilization

Potential for significant inequalities in income and wealth distribution (correct)

Wide product variety and consumer choice

What is a characteristic of a centrally planned economy?

High motivation due to profit incentives

State ownership of resources (correct)

Private ownership of resources

Economic freedom and competition among businesses

What is an advantage of a centrally planned economy?

Even distribution of income Signup and view all the answers

What is the primary goal of a mixed economy?

To combine the advantages of both market and centrally planned economies Signup and view all the answers

Which economic system is characterized by both private and public sector involvement?

Mixed economy Signup and view all the answers

Which country's economy is an example of a mixed economy?

South Africa Signup and view all the answers

What is a characteristic of a mixed economy?

Coexistence of private and public sectors Signup and view all the answers

What is a disadvantage of a mixed economy?

Risk of over-regulation and stifling private sector innovation Signup and view all the answers

What is one of the roles of the South African government in a mixed economy?

Providing social services and promoting economic growth Signup and view all the answers

What is a challenge faced by the South African government in providing social services?

Inefficient service delivery Signup and view all the answers

What is an initiative aimed at enhancing economic growth in South Africa?

New Economic Growth Path Signup and view all the answers

What is an advantage of a mixed economy?

Balances freedom of market operations with government oversight Signup and view all the answers

What is South Africa's goal in terms of international competitiveness?

Producing high-quality, competitively priced goods Signup and view all the answers

What is a challenge faced by the South African healthcare system?

System strains Signup and view all the answers

Which economic system is characterized by private ownership of production factors and profit incentives?

Market economy Signup and view all the answers

What is a potential consequence of a lack of individual incentives in a centrally planned economy?

Reduced economic growth Signup and view all the answers

Which of the following is a benefit of combining elements of market capitalism and central planning in a mixed economy?

Mitigating the disadvantages of both systems Signup and view all the answers

What is a characteristic of the South African economy?

A mix of private and public sector involvement Signup and view all the answers

What is a potential disadvantage of a market economy?

Overexploitation of resources Signup and view all the answers

What is an advantage of a centrally planned economy?

Even distribution of income Signup and view all the answers

What drives the allocation of resources and production decisions in a market economy?

The forces of supply and demand Signup and view all the answers

What is the main purpose of government intervention in a mixed economy?

To regulate crucial sectors and protect social welfare Signup and view all the answers

Which of the following is a potential consequence of over-regulation in a mixed economy?

Stifling of private sector innovation and efficiency Signup and view all the answers

What is a key challenge faced by the South African government in delivering social services?

Inefficient service delivery and low education outcomes Signup and view all the answers

What is the primary goal of initiatives like ASGISA and the New Economic Growth Path in South Africa?

To enhance economic growth, competitiveness, and employment Signup and view all the answers

Why does South Africa aim to produce high-quality, competitively priced goods?

To increase its global market position Signup and view all the answers

What is a key role of the South African government in a mixed economy?

Promoting economic growth through efficient economic services Signup and view all the answers

What is a persistent issue in a mixed economy?

Poverty and inequality Signup and view all the answers

What is the South African government's goal in terms of inflation?

To align inflation rates with major trading partners Signup and view all the answers

What is the primary motivation for entrepreneurs in a market economy?

To respond to the forces of supply and demand Signup and view all the answers

Which of the following is a consequence of overexploitation of resources in a market economy?

Income and wealth distribution inequalities Signup and view all the answers

What is the primary goal of central planning in a centrally planned economy?

To allocate resources efficiently Signup and view all the answers

What is a key challenge in a mixed economy like South Africa's?

Balancing market-driven and state-controlled sectors Signup and view all the answers

What is a potential consequence of a lack of competition in a mixed economy?

Reduced product variety Signup and view all the answers

What is a key characteristic of a mixed economic system?

Coexistence of market-driven and state-controlled sectors Signup and view all the answers

What is a potential advantage of combining elements of market capitalism and central planning in a mixed economy?

Improved resource allocation and innovation Signup and view all the answers

What is the primary mechanism by which a mixed economy aims to balance individual freedom with social welfare?

Government intervention in strategic sectors Signup and view all the answers

Which of the following is a key challenge in delivering social services in South Africa?

Inequitable distribution of resources across provinces Signup and view all the answers

What is the primary goal of initiatives like ASGISA and the New Economic Growth Path in South Africa?

To enhance economic competitiveness and employment Signup and view all the answers

What is a potential consequence of over-regulation in a mixed economy?

Stifling of private sector innovation and efficiency Signup and view all the answers

Which of the following is a characteristic of South Africa's mixed economy?

Coexistence of private and public sectors Signup and view all the answers

What is a key role of the South African government in a mixed economy?

Regulation of private enterprise to ensure social welfare Signup and view all the answers

What is a persistent issue in South Africa's mixed economy?

Persistent poverty and inequality Signup and view all the answers

Why does South Africa aim to produce high-quality, competitively priced goods?

To enhance its global market position and competitiveness Signup and view all the answers

CH 1.3 Economic Systems

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Questions and Answers

What is the primary characteristic of a market economy?

What is a potential disadvantage of a market economy?

What is a characteristic of a centrally planned economy?

What is an advantage of a centrally planned economy?

What is the primary goal of a mixed economy?

Which economic system is characterized by both private and public sector involvement?

Which country's economy is an example of a mixed economy?

What is a characteristic of a mixed economy?

What is a disadvantage of a mixed economy?

What is one of the roles of the South African government in a mixed economy?

What is a challenge faced by the South African government in providing social services?

What is an initiative aimed at enhancing economic growth in South Africa?

What is an advantage of a mixed economy?

What is South Africa's goal in terms of international competitiveness?

What is a challenge faced by the South African healthcare system?

Which economic system is characterized by private ownership of production factors and profit incentives?

What is a potential consequence of a lack of individual incentives in a centrally planned economy?

Which of the following is a benefit of combining elements of market capitalism and central planning in a mixed economy?

What is a characteristic of the South African economy?

What is a potential disadvantage of a market economy?

What is an advantage of a centrally planned economy?

What drives the allocation of resources and production decisions in a market economy?

What is the main purpose of government intervention in a mixed economy?

Which of the following is a potential consequence of over-regulation in a mixed economy?

What is a key challenge faced by the South African government in delivering social services?

What is the primary goal of initiatives like ASGISA and the New Economic Growth Path in South Africa?

Why does South Africa aim to produce high-quality, competitively priced goods?

What is a key role of the South African government in a mixed economy?

What is a persistent issue in a mixed economy?

What is the South African government's goal in terms of inflation?

What is the primary motivation for entrepreneurs in a market economy?

Which of the following is a consequence of overexploitation of resources in a market economy?

What is the primary goal of central planning in a centrally planned economy?

What is a key challenge in a mixed economy like South Africa's?

What is a potential consequence of a lack of competition in a mixed economy?

What is a key characteristic of a mixed economic system?

What is a potential advantage of combining elements of market capitalism and central planning in a mixed economy?

What is the primary mechanism by which a mixed economy aims to balance individual freedom with social welfare?

Which of the following is a key challenge in delivering social services in South Africa?

What is the primary goal of initiatives like ASGISA and the New Economic Growth Path in South Africa?

What is a potential consequence of over-regulation in a mixed economy?

Which of the following is a characteristic of South Africa's mixed economy?

What is a key role of the South African government in a mixed economy?

What is a persistent issue in South Africa's mixed economy?

Why does South Africa aim to produce high-quality, competitively priced goods?

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