340 Questions
What was a characteristic of early societies?
Self-sufficiency and bartering
What was a key factor in the development of trade and commerce?
The development of language and writing
What was a result of industrialization and urbanization?
The growth of modern cities and economic hubs
What improved efficiency and productivity in the market development process?
Specialization of labor
What is a function of governments in relation to trade?
Providing public services and infrastructure through taxation
What is a characteristic of mixed economies?
A balance between government control and free markets
What facilitated the exchange of goods in early societies?
Bartering
What was a result of the growth of towns?
The emergence of mercantile law
What has been the primary driver of population growth in South Africa?
High birth rates and immigration
What is the current stage of South Africa's demographic transition?
Transitioning from high to low birth and death rates
What has been the impact of HIV/AIDS on South Africa's population growth?
It has slowed population growth
What is a significant challenge in the South African labour force?
High unemployment rates among the youth
What has been the trend in South Africa's labour force in terms of sector shifts?
From primary sectors like agriculture and mining to services
What is a key challenge in the geographic distribution of employment in South Africa?
Provincial disparities in employment opportunities
What is a critical need for policies in South Africa?
Enhancing education and skills training
What is essential for accommodating growing populations and reducing urban sprawl?
Effective urban planning and improved infrastructure
What is vital for improving life expectancy and workforce productivity?
Continued focus on health services
What can help stimulate economic growth and job creation in South Africa?
Enhancing support for entrepreneurs
What is the primary challenge in economics?
Limited resources
Which of the following is NOT a branch of economics?
Sociology
What is the main focus of Microeconomics?
The decisions of individuals and firms
What is the purpose of economic models?
To describe and predict economic phenomena
What is the main difference between Positive and Normative Economics?
Positive Economics focuses on objective analysis, while Normative Economics involves value judgments
What is the fundamental economic problem?
How to distribute limited resources efficiently
What is the primary economic question that addresses who will receive the products and services created?
For whom to produce?
Which of the following is a branch of economics that studies the economic activities of government?
Public Sector Economics
What is the role of deductive reasoning in economics?
To test hypotheses against empirical data
What is the focus of Developmental Economics?
Promoting economic development in less developed countries
What was the primary driver of economic growth during the Agricultural-Mining Phase in South Africa?
The discovery of diamonds and gold
What was a major constraint on economic growth during the early agricultural history period?
Limited markets and reliance on manual labor
What has been the primary driver of economic growth in South Africa's modern economy?
Globalization and technological advancements
What is a major challenge faced by developing countries in global trade?
Exporting raw materials at a low cost and importing finished goods at a higher cost
What role do financial institutions play in economic growth?
Facilitating economic growth by managing savings, providing loans, and supporting transactions
What is the primary goal of the World Trade Organization (WTO)?
Promoting fair trade practices globally
What is a characteristic of limited liability companies?
Investors are protected from losing more than their investment
What has been a consequence of urbanization in South Africa?
Concentration of economic activity and resources in urban areas
What was a major challenge faced by South Africa during the industrial development phase?
Inadequate capital and skilled labor shortages
What is a benefit of mechanization in production processes?
Increased output but reduced employment
What is the primary challenge faced by economic research compared to physical sciences?
Difficulty in controlling variables
What is the fundamental concept in economics that reflects the trade-offs when making choices?
Opportunity cost
Which of the following is an example of absolute scarcity?
A potato harvest failing
What is the primary function of entrepreneurship in the production process?
Combining the other three factors to create goods and services
What is the primary characteristic of economic goods?
They require scarce resources to produce
Which sector of the economy involves extraction of natural resources?
Primary sector
What is the term for the foregone benefit of the next best alternative when a choice is made?
Opportunity cost
What is the primary difference between absolute and relative scarcity?
The economic constraint
What is the term for the process of combining the four factors of production to create goods and services?
Entrepreneurship
What is the primary characteristic of the tertiary sector?
It provides services rather than goods
Who purchases capital goods to produce other goods and services?
Businesses
What is the portion of income available for spending or saving after taxes?
Disposable Income
What is a key component of sustainable development?
Fair labour practices
What is the primary focus of GDP?
Production within the country
What is the primary function of financial institutions in the circular flow model?
Facilitation of savings and provision of loans
Which indicator signals future economic changes before they occur?
Leading Indicators
What is the name of the model that illustrates the continuous movement of money and goods among various economic agents and markets?
Circular Flow Model
What is the term for the gradual improvement in economic conditions after a recession?
Recovery
What is the name of the approach that calculates GDP by summing up all outputs produced?
Product Approach
What does GDP not account for?
The distribution of income among the population
What is an example of an endogenous reason for business cycles?
Fluctuations in investment
What is the total demand for goods and services in the economy?
Aggregate Demand
What is the term for the movement of goods and services in the economy?
Real Flow
What is a characteristic of counter-cyclical indicators?
Move in the opposite direction of the economy
What is the purpose of regulatory measures in promoting sustainable development?
To curb environmentally harmful activities
What is the term for the total income earned by a country's nationals, including production inside and outside the country?
Gross National Income (GNI)
What is a limitation of GDP and GNI?
They do not account for income distribution
What is the phase of the business cycle characterized by high economic activity and increasing employment?
Prosperity
What is the term for data collected over successive time intervals to track economic changes?
Time Series
What is a consequence of business cycles for economically vulnerable populations?
Disproportionate negative impact on their standard of living
What led to the establishment of structured communities and leadership hierarchies in early societies?
Accumulation of wealth and power
What was a significant consequence of industrialization and urbanization?
Massive urban migration
What is a key feature of mixed economies?
Combination of free markets and government control
What is a primary function of governments in relation to trade?
Taxation and finance
What was a key factor in the development of markets?
Specialization of labor
What was a result of the growth of towns?
Necessity of regulations and laws
What was a significant outcome of the industrial revolution?
Transforming economies from agrarian to industrial
What facilitated the exchange of goods in early societies?
Bartering
What is the primary focus of Macroeconomics?
The overall functioning of an economy
What is the fundamental economic problem?
The scarcity of resources in the face of unlimited wants
Which of the following is an example of a positive economic statement?
The economy is experiencing a recession
What is the purpose of economic models?
To simplify complex economic activities and make predictions
What is the primary economic question that addresses how to distribute resources?
How to allocate resources?
What is the role of inductive reasoning in economics?
To observe data and develop new theories
Which of the following is a branch of economics that studies the economic activities of government?
Public Sector Economics
What is the primary focus of Environmental Economics?
The impact of environmental issues on the economy
What is the primary goal of economic research?
To understand and predict economic phenomena
What is the fundamental concept in economics that reflects the trade-offs when making choices?
Opportunity cost
What is the primary reason for South Africa's shift from an agrarian base to an industrial and service-oriented economy?
Urbanization and demographic changes
What is the major factor influencing population growth in rural areas of South Africa?
Socio-economic conditions
What is the impact of HIV/AIDS on life expectancy in South Africa?
Severely impacted life expectancy
What is the primary challenge faced by the South African labour force?
Youth unemployment
What is the trend in South Africa's labour force in terms of sector shifts?
From primary sectors to services and finance
What is a critical need for policies in South Africa?
Enhancing education and skills training
What is essential for accommodating growing populations and reducing urban sprawl?
Effective urban planning and improved infrastructure
What is vital for improving life expectancy and workforce productivity?
Improving healthcare services
What can help stimulate economic growth and job creation in South Africa?
Enhancing support for entrepreneurs
What is a characteristic of the demographic cycle in South Africa?
Transitioning through various stages
What is the primary role of trade unions in the economy?
To improve working conditions and negotiate fair wages for workers
What is the primary consequence of urbanization in South Africa?
Concentration of economic activity and resources in urban areas, leading to challenges such as housing and infrastructure demands
What is the primary function of financial institutions in the economy?
To manage savings, provide loans, and support transactions, promoting economic growth
What is a characteristic of limited liability companies?
They protect investors from losing more than their investment
What is the primary goal of the World Trade Organization (WTO)?
To promote fair global trade practices and balance the interests of rich and poor nations
What has been a consequence of globalization in developing countries?
They often export raw materials used in high-value finished goods, which they end up importing at a higher cost, perpetuating economic imbalances
What is the primary driver of economic growth in South Africa's modern economy?
The growth of the service sector, driven by globalization and technological advancements
What has been a major challenge faced by South Africa during the industrial development phase?
Inadequate capital and skilled labor shortages
What is a benefit of mechanization in production processes?
It has replaced labor, affecting employment patterns and increasing output
What has been the primary driver of urbanization in South Africa?
The growth of the mining industry and the discovery of diamonds and gold
Which economic sector is responsible for extracting natural resources?
Primary sector
What is the main goal of sustainable development?
Minimize environmental harm
What is the primary function of financial institutions in the economy?
Facilitate savings and provide loans
What is the circular flow model used to illustrate?
The movement of money and goods among economic agents
What is the main difference between GDP and GNI?
GDP measures income earned by nationals, while GNI measures income earned by foreigners
What is a key component of sustainable economic development?
Recycling and fair labor practices
What is the primary role of government in the economy?
To provide public goods and services
What is the main challenge to achieving sustainable development?
Pollution and environmental degradation
What is the primary difference between the real flow and monetary flow in the circular flow model?
The real flow involves the movement of goods and services, while the monetary flow involves the movement of money
What is the primary purpose of regulatory measures in sustainable development?
To curb environmentally harmful activities
What is the primary challenge faced by economic research compared to physical sciences?
Dealing with human behaviors that are diverse and difficult to predict
What is the fundamental concept in economics that reflects the trade-offs when making choices?
Opportunity cost
Which of the following is an example of absolute scarcity?
A country lacking the resources to produce goods
What is the primary function of entrepreneurship in the production process?
To combine the four factors of production to create goods and services
What is the primary characteristic of economic goods?
They require scarce resources to produce
Which sector of the economy involves extraction of natural resources?
Primary sector
What is the term for the foregone benefit of the next best alternative when a choice is made?
Opportunity cost
What is the primary difference between absolute and relative scarcity?
Absolute scarcity occurs when resources are insufficient, while relative scarcity occurs when resources are accessible but unaffordable
What is the term for the process of combining the four factors of production to create goods and services?
Entrepreneurship
What is the primary characteristic of the tertiary sector?
It provides services rather than goods
What is the primary focus of GDP?
Focusing on production within the country
What is the main limitation of per capita income calculation?
It does not account for income distribution
What is the characteristic of leading indicators in business cycles?
They signal future economic changes before they occur
What is the term for the phase of the business cycle characterized by high economic activity and increasing employment?
Prosperity
What is an example of an exogenous reason for business cycles?
Natural disasters
What is the effect of business cycles on economically vulnerable populations?
They have a disproportionate impact on their standard of living, employment opportunities, and ability to afford necessities
What is the term for the total demand for goods and services in the economy?
Aggregate Demand
What is the primary effect of business cycles on economic growth?
It leads to fluctuations in economic growth, with expansion phases leading to growth and contraction phases leading to declines
What is the primary characteristic of procyclical indicators?
They move in tandem with the economy
What is the primary difference between GDP and GNI?
GDP focuses on production within the country, while GNI accounts for all income by nationals, regardless of where it is earned
What led to the establishment of structured communities and leadership hierarchies in early societies?
Accumulation of wealth and power
What transformed economies from agrarian to industrial?
The industrial revolution
What is necessary for managing commerce and interactions effectively in growing towns?
Regulations and laws
What is a function of governments in relation to economic activities?
Taxation and finance
What is a characteristic of mixed economies?
Combination of free market and government control
What facilitated the exchange of goods before the advent of money?
Bartering
What was a result of the growth of towns?
Necessitation of regulations and laws
What improved efficiency and productivity in the market development process?
Specialization of labor
What has been the primary influence on South Africa's population growth?
High birth rates and immigration
What is the main challenge faced by the South African labour force?
Youth unemployment
What has been the trend in South Africa's labour force in terms of sector shifts?
From primary to tertiary sectors
What is the primary consequence of urbanization in South Africa?
Urban overcrowding and service delivery challenges
What is a critical need for policies in South Africa?
Enhancing education and skills training
What is the primary consequence of mechanization in production processes?
Replacement of labor with machinery
What is essential for accommodating growing populations and reducing urban sprawl?
Effective urban planning and infrastructure
What has been the impact of HIV/AIDS on South Africa's population growth?
Slowed natural growth rate
What is the primary role of limited liability companies?
To protect investors from losing more than their investment
What is a significant challenge in the geographic distribution of employment in South Africa?
Provincial disparities in employment opportunities
What is the primary challenge faced by developing countries in global trade?
Trade barriers and dumping
What is the primary goal of the World Trade Organization (WTO)?
To promote fair global trade practices
What is vital for improving life expectancy and workforce productivity in South Africa?
Improved healthcare services, particularly in addressing HIV/AIDS
What can help stimulate economic growth and job creation in South Africa?
Support for entrepreneurship through easier access to finance, training, and markets
What is the primary consequence of urbanization in South Africa?
Concentration of economic activity and resources in urban areas
What is the primary role of financial institutions in economic growth?
To facilitate economic growth by managing savings and providing loans
What is the primary characteristic of multinational corporations?
They operate in multiple countries
What is the primary benefit of technological advances in economic growth?
Improved efficiency and creation of new industries
What is the primary consequence of globalization on developing countries?
Economic disparities and imbalances
What is the primary challenge faced by South Africa during the industrial development phase?
Inadequate capital and skilled labor shortages
What is the main reason why individuals, governments, and societies must make decisions about resource allocation?
Because resources are finite
Which of the following is NOT a primary economic question?
How to distribute income?
Which branch of economics studies the overall functioning of an economy?
Macroeconomics
What is the primary purpose of economic models?
To predict the outcomes of economic actions
What is the main difference between deductive and inductive reasoning in economics?
Deductive reasoning is used to test hypotheses, while inductive reasoning is used to develop them
What is the primary focus of Labour Economics?
The supply and demand for labour
Which of the following is an example of a normative economic statement?
The government should increase taxes to reduce inequality
What is the primary goal of economic policies in South Africa?
To promote sustainable economic growth and development
What is the primary challenge faced by economic research compared to physical sciences?
The complexity of human behavior
What is the fundamental concept in economics that reflects the trade-offs when making choices?
Opportunity cost
What does GDP primarily focus on?
Production within the country
What type of economic indicator signals future economic changes before they occur?
Leading Indicators
What is the term for the total demand for goods and services in the economy?
Aggregate Demand (AD)
Which phase of the business cycle is characterized by high economic activity, increasing employment, wages, and standards of living?
Prosperity
What is the term for the total supply of goods and services available in the economy?
Aggregate Supply (AS)
Which of the following is an endogenous reason for business cycles?
Fluctuations in investment
What is the primary impact of business cycles on economically vulnerable populations?
Disproportionate negative effects
What is the term for the data collected over successive time intervals to track economic changes?
Time Series
What is the term for the indicators that move in the opposite direction of the economy?
Counter Cyclic Indicators
What is a limitation of GDP and GNI?
They ignore non-monetary transactions and informal economic activities
What is the primary goal of economic research in economics?
To draw conclusions based on evidence
What is the fundamental economic problem that individuals and societies face?
Limited availability of resources
What is the term for goods that are naturally available without cost?
Free goods
What is the primary role of entrepreneurship in the production process?
To combine the four factors of production
What is the sector of the economy that provides services rather than goods?
Tertiary sector
What is the primary characteristic of economic goods?
They require scarce resources to produce
What is the term for the process of making choices due to the limited availability of resources?
Allocation
What is the primary difference between absolute and relative scarcity?
Absolute scarcity occurs when resources are insufficient, while relative scarcity occurs when resources are inaccessible due to economic constraints
What is the primary role of the public sector in the economy?
To regulate the economy
What is the primary challenge faced by economic research compared to physical sciences?
Dealing with human behavior
What is the primary goal of sustainable development?
To conduct economic growth without depleting natural resources or harming human and environmental health
What is the term for the total market value of all final goods and services produced within a country's borders?
Gross Domestic Product (GDP)
What is the role of financial institutions in the economy?
To facilitate savings and provide loans
What is the primary challenge to achieving sustainable development?
Pollution, greenhouse effects, and exploitation of labour
What is the term for the movement of goods and services in the economy?
Real Flow
What is the primary function of government in the economy?
To provide public goods and services
What is the term for the total income earned by a country's nationals, including production inside and outside the country?
Gross National Income (GNI)
What is the primary characteristic of the circular flow model?
It illustrates the continuous movement of money and goods among various economic agents and markets
What is the primary goal of supportive measures in sustainable development?
To provide incentives for environmentally friendly practices
What is the primary characteristic of the goods market?
It is a market where goods and services are exchanged
What was a primary factor in the development of structured communities and leadership hierarchies in early societies?
The accumulation of wealth and power
What was a significant consequence of the industrial revolution?
The transformation of economies from agrarian to industrial
What is a primary role of governments in relation to trade?
To regulate commerce and interactions
What is a characteristic of mixed economies?
The combination of free markets and government control
What was a key factor in the development of trade and commerce?
The development of language and writing
What is a result of specialization of labor?
Improved efficiency and productivity
What is a primary consequence of urbanization and migration?
The shaping of modern cities and economic hubs
What is a primary function of government taxation?
To fund public services and infrastructure
What was the primary driver of economic growth during the Industrial Development phase in South Africa?
Government incentives and an influx of entrepreneurial immigrants
What is the primary role of financial institutions in economic growth?
Managing savings and providing loans
What is a characteristic of limited liability companies?
They protect investors from losing more than their investment
What is the primary goal of the World Trade Organization (WTO)?
To promote fair global trade practices
What is a consequence of urbanization in South Africa?
Concentration of economic activity and resources in urban areas
What is a major challenge faced by developing countries in global trade?
Exporting raw materials used in high-value finished goods
What is the primary benefit of mechanization in production processes?
Improved efficiency and productivity
What is the primary challenge faced by South Africa during the industrial development phase?
Inadequate capital and skilled labor shortages
What is the primary driver of economic growth in South Africa's modern economy?
The growth of the service sector
What is a characteristic of the current stage of South Africa's economy?
Characterized by the growth of the service sector
What has been the primary driver of population growth in South Africa since 1970?
High birth rates and immigration
Who invests in public goods and services that benefit society as a whole?
Government
What is the current stage of South Africa's demographic transition?
Transitioning from high birth and death rates to lower rates
What determines how much of one currency can be exchanged for another?
Exchange Rates
What has been the impact of HIV/AIDS on South Africa's population growth?
Decreased population growth rate
What is a key component of sustainable development?
Fair labor practices
What is a significant challenge in the South African labour force?
High unemployment rates among the youth
What is the main focus of the circular flow model?
The dynamics of the economy
What has been the trend in South Africa's labour force in terms of sector shifts?
From primary sectors to services and finance
What is the total market value of all final goods and services produced within a country's borders in each period?
Gross Domestic Product (GDP)
What is a key challenge in the geographic distribution of employment in South Africa?
Provincial disparities in employment opportunities
What is a critical need for policies in South Africa?
Enhancing education and skills training
What is the primary challenge to achieving sustainable development?
Pollution and environmental harm
What is essential for accommodating growing populations and reducing urban sprawl?
Effective urban planning and infrastructure
What is the movement of goods and services in the circular flow model?
Real Flow
What is vital for improving life expectancy and workforce productivity?
Continued focus on health services
What is the purpose of regulatory measures in achieving sustainable development?
To curb environmentally harmful activities
What is the primary function of financial institutions in the economy?
To facilitate savings and provide loans
What can help stimulate economic growth and job creation in South Africa?
Enhancing support for entrepreneurs
What is the primary goal of sustainable development?
To conduct economic growth without depleting natural resources or harming human and environmental health
What is the primary goal of economic research in economics?
To draw conclusions based on evidence
What is the main difference between absolute and relative scarcity?
Absolute scarcity occurs when resources are insufficient, while relative scarcity occurs when resources are sufficient but inaccessible
Which of the following is an example of a free good?
Sunlight
What is the primary function of entrepreneurship in the production process?
To combine the four factors of production
What is the term for the process of allocating resources to satisfy unlimited wants and needs?
Economic problem
Which sector of the economy involves manufacturing and processing activities?
Secondary Sector
What is the primary characteristic of economic goods?
They require scarce resources to produce
What is the term for the foregone benefit of the next best alternative when a choice is made?
Opportunity cost
What is the primary difference between the public and private sectors?
The public sector is owned by the government, while the private sector is owned by individuals
What is the primary challenge faced by economic research compared to physical sciences?
Dealing with human behavior
What is the primary goal of economics?
To allocate scarce resources efficiently
What is the main focus of Macroeconomics?
The overall functioning of an economy
What is the purpose of economic models?
To simplify complex economic phenomena
What is the key difference between Microeconomics and Macroeconomics?
Microeconomics examines individual decisions, while Macroeconomics examines the economy as a whole
What is the primary economic question that addresses how to allocate resources?
What to produce?
What is the branch of economics that studies the role of money in the economy?
Monetary Economics
What is the main characteristic of positive economics?
It describes and predicts economic phenomena without judgment
What is the fundamental concept in economics that reflects the trade-offs when making choices?
Opportunity cost
What is the primary method of economic analysis?
Both deductive and inductive reasoning
What is the primary challenge in addressing the economic problem of scarcity?
All of the above
What is the primary focus of GDP?
Production within the country
What is the limitation of per capita income calculation?
It does not account for income distribution
What is the characteristic of leading indicators in a business cycle?
They signal future economic changes before they occur
What is the phase of a business cycle characterized by high economic activity and increasing employment?
Prosperity
What is an example of an exogenous reason that influences the economy?
Natural disasters
What is the impact of business cycles on economically vulnerable populations?
They have a disproportionate impact
What is the limitation of both GDP and GNI?
They ignore non-monetary transactions and informal economic activities
What is the term for the total demand for goods and services in the economy?
Aggregate Demand
What is the impact of business cycles on economic growth?
It has variable impact
What is the classification of procyclical indicators?
They move in the same direction as the economy
What was the primary driver of economic growth during the industrial development phase in South Africa?
Manufacturing development
What was the primary role of language skills and learning in early societies?
Recording transactions and transmitting knowledge
What was a key consequence of industrialization and urbanization?
Shaping modern cities and economic hubs
What is the primary function of governments in relation to trade?
Regulating commerce and interactions
What was a characteristic of early societies?
Self-sufficiency and bartering
What is the primary driver of economic growth in mixed economies?
Combination of government control and free market forces
What is the primary role of specialization of labor in market development?
Improving efficiency and productivity
What is the primary characteristic of the growth of towns in market development?
Necessitating regulations and laws to manage commerce
What is a major consequence of industrialization and urbanization?
Concentration of economic activity and resources in urban areas
What is the main function of trade unions?
To improve working conditions and negotiate fair wages
What is a key characteristic of limited liability companies?
Investors are protected from losing more than their investment
What is a major challenge faced by developing countries in global trade?
Exporting raw materials used in high-value finished goods, which they end up importing at a higher cost
What is the primary goal of the World Trade Organization (WTO)?
To promote fair global trade practices
What is a major consequence of mechanization in production processes?
Increased output but also replaced labor, affecting employment patterns
What is the primary role of financial institutions in economic growth?
To provide loans and manage savings
What is a major challenge faced by South Africa during the industrial development phase?
Inadequate capital and skilled labor shortages
What is a characteristic of the modern economy in South Africa?
The service sector has grown significantly
What is the primary driver of economic growth in South Africa's modern economy?
Globalization and technological advancements
What is the fundamental challenge in economics?
Scarcity
What is the primary focus of Macroeconomics?
Overall functioning of an economy
Which approach of economics involves developing hypotheses based on existing theories and testing them against empirical data?
Deductive reasoning
What is the primary purpose of economic models?
To describe and predict economic phenomena
What is the primary economic question that addresses how to distribute limited resources?
How to allocate resources?
Which branch of economics studies the economic activities of government and its role in the economy?
Public Sector Economics
What is the primary difference between Positive and Normative Economics?
Objectivity vs. subjectivity
Which of the following is an example of a microeconomic decision?
Deciding how many goods to produce
What is the primary goal of economic research?
To understand and predict economic phenomena
What is the primary economic challenge faced by developing countries?
Promoting economic development
What is the main factor contributing to the rapid growth of South Africa's population from 22 million in 1970 to 50 million by 2010?
High birth rates and immigration
What is the primary challenge facing the South African labour force in terms of age composition?
Youth unemployment, with a large percentage of the unemployed being under 35 years old
What is the primary sector shift observed in the South African labour force?
From primary sectors like agriculture and mining to services and finance
What is the primary geographic distribution challenge in South Africa's employment?
Provincial disparities in employment opportunities
What is a critical policy need to address the challenges in South Africa's employment?
Enhanced education and skills training
What is the primary impact of HIV/AIDS on South Africa's population growth?
Slowed natural growth rate due to increased mortality
What is the primary challenge facing entrepreneurs in South Africa?
Lack of support from government policies
What is the primary consequence of urbanization in South Africa?
Increased pressure on urban infrastructure and services
What is the primary goal of policies addressing the challenges of urbanization in South Africa?
Improving urban planning and infrastructure
What is the primary benefit of enhancing education and training in South Africa's labour force?
Improved alignment with the demands of a changing economy
What is the primary goal of economic research?
To draw conclusions based on evidence
What is the fundamental economic problem that compels individuals and societies to make choices?
Limited availability of resources
What is the primary characteristic of free goods?
They are naturally available without cost
What is the term for the foregone benefit of the next best alternative when a choice is made?
Opportunity cost
What is the primary process that defines economic activity within a society?
Production, exchange, and consumption
What is the primary function of entrepreneurship in the production process?
To combine the four factors of production to create goods and services
What is the primary characteristic of economic goods?
They require scarce resources to produce
What sector of the economy involves extraction of natural resources?
Primary sector
What is the primary difference between absolute and relative scarcity?
Absolute scarcity occurs when resources are insufficient, while relative scarcity exists when resources are sufficient but inaccessible
What is the primary challenge faced by economic research compared to physical sciences?
Conducting controlled experiments is often impractical in economics
What is the primary goal of sustainable development?
To minimize environmental harm and ensure fair labor practices
What is the Gross Domestic Product (GDP)?
The total market value of all goods and services produced within a country's borders in each period
What is the main difference between the real flow and monetary flow in the circular flow model?
The real flow is the movement of goods and services, while the monetary flow is the movement of money
What is the purpose of regulatory measures in promoting sustainable development?
To curb environmentally harmful activities
What is the role of households in the circular flow model?
To provide labor and receive income
What is the Gross National Income (GNI)?
The total income earned by a country's nationals, including production inside and outside the country
What is the primary challenge to achieving sustainable development?
All of the above
What is the focus of the expenditure approach to calculating GDP?
Total spending on final goods and services in the economy
What is the primary function of financial institutions in the economy?
To facilitate savings and provide loans
What is the main difference between GDP and GNI?
GDP includes production inside the country, while GNI includes production inside and outside the country
What is the primary focus of GDP?
Production within the country
What is the limitation of GDP and GNI?
They do not account for wealth distribution and informal economic activities
What is the purpose of per capita income calculation?
To understand the economic well-being of the average citizen
What are the three types of economic indicators?
Leading, Coincident, and Lagging Indicators
What is the characteristic of a boom phase in a business cycle?
Peak economic performance before a potential downturn
What is the effect of business cycles on economically vulnerable populations?
They are disproportionately affected by the business cycles
What is the role of Aggregate Demand in a business cycle?
It represents the total demand for goods and services in the economy
What is the impact of business cycles on employment?
Job creation increases during booms and decreases during recessions
What is the cause of business cycles?
Both exogenous and endogenous factors
What is the effect of business cycles on economic growth?
Expansion phases lead to growth, while contraction phases lead to declines
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
