Nov P1 Med

Play an AI-generated podcast conversation about this lesson

What is the primary function of natural resources in economic development?

To provide raw materials for goods and services (correct)
To generate income for resource owners
To regulate international trade
To provide employment opportunities

What is the primary focus of initiatives like ASGISA and the New Economic Growth Path?

Supporting local businesses
Providing foreign aid
Reducing inflation
Enhancing economic competitiveness (correct)

What type of labor is heavily reliant on the level of skills and education?

Semi-skilled labor
Unskilled labor
Manual labor
Skilled labor (correct)

Which of the following is NOT a characteristic of capital?

It is a type of labor (B) Signup and view all the answers

What is the primary reward for entrepreneurship?

Profit (B) Signup and view all the answers

What is the main contribution of the primary sector to South Africa's economy?

Provides essential raw materials and energy (A) Signup and view all the answers

What is the form of remuneration associated with natural resources?

Rent (A) Signup and view all the answers

What is the purpose of the value added method in calculating GDP?

To calculate the total value of final goods and services (C) Signup and view all the answers

What was the historical exclusion faced by black South Africans in the primary sector during apartheid?

Denial of land ownership and equal opportunities (B) Signup and view all the answers

Which of the following is NOT a characteristic of natural resources?

Non-storable (A) Signup and view all the answers

What is the primary function of the secondary sector in South Africa's economy?

Transforming raw materials into finished goods (C) Signup and view all the answers

What is a factor that affects labor supply?

Population growth (B) Signup and view all the answers

Which sector of the economy collects taxes and redistributes income?

Government (D) Signup and view all the answers

What is the term for the total spending by households on non-durable, semi-durable, and durable goods as well as services?

Consumption (B) Signup and view all the answers

What is the significance of the tertiary sector in South Africa's economy?

Dominant contributor to GDP (A) Signup and view all the answers

What is the primary distinction between skilled, semi-skilled, and unskilled labor?

Education level (D) Signup and view all the answers

What is the primary objective of laws like the Black Economic Empowerment Act and the Employment Equity Act?

Dismantling historical barriers to participation (D) Signup and view all the answers

What is the role of entrepreneurs in economic systems?

To generate wealth and create jobs (A) Signup and view all the answers

What is the name of the fourth primary factor of production?

Entrepreneurship (A) Signup and view all the answers

What is the term for the total value of all final goods and services produced within a country's borders?

Gross Domestic Product (D) Signup and view all the answers

What is the significance of communication systems in South Africa's economy?

Essential for economic competitiveness (D) Signup and view all the answers

What is included in the compensation of labor?

Wages and benefits (B) Signup and view all the answers

What is the term for the return on invested funds in capital?

Interest (C) Signup and view all the answers

What is the primary challenge facing South Africa's energy sector?

Underinvestment in new power sources (D) Signup and view all the answers

Which of the following is an example of an intermediate good?

A bag of flour (B) Signup and view all the answers

What is the primary function of transportation networks in South Africa's economy?

Facilitating domestic and international trade (C) Signup and view all the answers

What is the significance of the public sector in South Africa's economy?

Supports economic growth and development (A) Signup and view all the answers

What is the circular flow of goods and services?

The continuous movement of goods, services, and money within an economy (D) Signup and view all the answers

What is the primary objective of capital investment as a strategy for development?

To stimulate growth by investing in productive assets and infrastructure (B) Signup and view all the answers

Which of the following is NOT a characteristic of developing countries?

High productivity (C) Signup and view all the answers

What is the primary purpose of the Human Development Index (HDI)?

To measure a country's development through factors like life expectancy, education, and GDP per capita (A) Signup and view all the answers

What is the focus of the Reconstruction and Development Programme (RDP) in South Africa?

To restructure the economy to enable sustainable development (C) Signup and view all the answers

What is the primary characteristic of Indigenous Knowledge Systems (IKS)?

They are rooted in specific communities and traditions (A) Signup and view all the answers

What is the definition of absolute poverty?

The lack of basic human needs like water, food, healthcare, education, clothing, and shelter (B) Signup and view all the answers

What is the main difference between economic growth and economic development?

Economic growth occurs without widespread benefits, while economic development is an improvement in the overall standard of living (D) Signup and view all the answers

What is the primary source of wealth creation?

Savings (A) Signup and view all the answers

What is the primary goal of promoting entrepreneurship as a strategy for development?

To create jobs and diversify goods and services (D) Signup and view all the answers

What is the measure of wealth inequality that ranges from 0 to 1?

Gini Coefficient (D) Signup and view all the answers

Which of the following is a characteristic of developing countries?

Low productivity (D) Signup and view all the answers

What is the focus of the Growth, Employment, and Redistribution Policy (GEAR) in South Africa?

To stabilize the economy and promote growth and redistribution (B) Signup and view all the answers

What is the purpose of measuring the distribution of wealth?

To illustrate the actual distribution of wealth across a population (C) Signup and view all the answers

What is the factor that directly impacts productive capacity?

Capital investment (D) Signup and view all the answers

What is the limitation of using per capita GDP to measure standard of living?

It does not account for income distribution disparities (C) Signup and view all the answers

What is the primary goal of economic development?

To enhance the economic, social, and political welfare of a community (D) Signup and view all the answers

What is the effect of economic growth on the standard of living?

It typically improves the standard of living (C) Signup and view all the answers

What is the role of government policies in determining standard of living?

They influence economic stability and public services (A) Signup and view all the answers

What is the significance of security and infrastructure in economic development?

They are essential for sustainable development (A) Signup and view all the answers

What is the difference between economic growth and economic development?

Economic growth is a narrower concept, while economic development is broader (A) Signup and view all the answers

What is the primary distinction between renewable and non-renewable natural resources?

Their ability to be replenished over time (C) Signup and view all the answers

What is the primary factor that affects the remuneration of natural resources?

Climate and geographic location (A) Signup and view all the answers

What is the primary characteristic that distinguishes skilled labor from semi-skilled and unskilled labor?

Level of education (D) Signup and view all the answers

What is the primary role of entrepreneurship in economic development?

To innovate and take risks (C) Signup and view all the answers

What is the primary importance of natural resources in economic development?

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

What is the primary factor that affects labor supply?

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

What is the primary form of remuneration associated with labor?

Wages (B) Signup and view all the answers

What is the primary characteristic of capital?

It is man-made and used in production (A) Signup and view all the answers

What is the primary role of entrepreneurs in economic systems?

To generate wealth, create jobs, and foster competition (B) Signup and view all the answers

What is the purpose of the value added method in calculating GDP?

To measure the total value of all final goods and services (D) Signup and view all the answers

What is the term for the total spending by households on non-durable, semi-durable, and durable goods as well as services?

Consumption (C) Signup and view all the answers

What is the primary function of capital in economic growth?

To maintain and expand production capabilities (B) Signup and view all the answers

What is the term for the return on invested funds in capital?

Interest (C) Signup and view all the answers

What is the primary distinction between final goods and intermediate goods?

Final goods are consumed by the end user, while intermediate goods are used as inputs in the production of other goods (B) Signup and view all the answers

What is the primary role of government in the circular flow of goods and services?

To collect taxes and redistribute income (A) Signup and view all the answers

What is the term for the total value of all final goods and services produced within a country's borders?

Gross Domestic Product (GDP) (B) Signup and view all the answers

What is the primary function of the foreign sector in the circular flow of goods and services?

To trade and engage in financial transactions with other countries (B) Signup and view all the answers

What is the primary role of households in the circular flow of goods and services?

To provide labor and spend income on goods and services (A) Signup and view all the answers

What is the primary focus of economic development?

Improvements in the standard of living of a society (B) Signup and view all the answers

What is the term for the numerical representation of wealth inequality?

Gini Coefficient (A) Signup and view all the answers

What is a primary factor that influences economic growth?

Labor Productivity (A) Signup and view all the answers

What is the limitation of using per capita GDP to measure standard of living?

It does not account for income distribution disparities within countries (B) Signup and view all the answers

What is the primary characteristic of wealth in economic terms?

An abundance of valuable resources or material possessions (C) Signup and view all the answers

What is the effect of economic growth on the standard of living?

It typically improves living standards (B) Signup and view all the answers

What is the primary goal of promoting entrepreneurship as a strategy for development?

To create new opportunities and jobs (B) Signup and view all the answers

What is the primary source of wealth creation?

Savings (C) Signup and view all the answers

What is the role of government policies in determining standard of living?

They influence economic stability and public services (B) Signup and view all the answers

What is the significance of security and infrastructure in economic development?

They are essential for sustainable development (C) Signup and view all the answers

What is the primary purpose of the poverty line income?

To indicate the minimum income needed to cover basic needs (C) Signup and view all the answers

What is a characteristic of money?

Uniformity (C) Signup and view all the answers

What is the primary function of banks in the context of credit creation?

To provide loans exceeding their cash reserves (A) Signup and view all the answers

What is the primary purpose of micro-lending?

To provide small loans to individuals unable to access traditional bank financing (D) Signup and view all the answers

What is a role of the South African Reserve Bank (SARB)?

To implement monetary policy to control inflation (D) Signup and view all the answers

What is a consequence of bank failures?

Losses for depositors and investors (A) Signup and view all the answers

What is the purpose of the headcount index?

To measure the percentage of the population living below the poverty line (C) Signup and view all the answers

What is a type of money?

Commodity money (A) Signup and view all the answers

What is the primary concern of monetary policy tools?

To control inflation (A) Signup and view all the answers

What is the primary goal of promoting entrepreneurship as a strategy for development?

To promote economic growth (A) Signup and view all the answers

What is a key strategy for developing countries to improve their standard of living?

Improving labor quality through education and healthcare (A) Signup and view all the answers

What is a common characteristic of developing countries?

Low productivity due to outdated technology (C) Signup and view all the answers

What is the primary goal of the Human Development Index (HDI)?

To measure standard of living through factors like life expectancy and education (C) Signup and view all the answers

What is the focus of the Reconstruction and Development Programme (RDP) in South Africa?

To restructure the economy to enable sustainable development (A) Signup and view all the answers

What is a key feature of Indigenous Knowledge Systems (IKS)?

It is rooted in specific communities and traditions (A) Signup and view all the answers

What is the definition of absolute poverty?

The inability to attain a minimum standard of living (D) Signup and view all the answers

What is the primary goal of economic development?

To improve the overall standard of living (A) Signup and view all the answers

What is the main difference between Gross Domestic Product (GDP) and Gross National Income (GNI)?

GDP includes only domestic income, while GNI includes income from abroad. (B) Signup and view all the answers

What is a key strategy for developing countries to stimulate growth?

Investing in indirectly productive infrastructure (D) Signup and view all the answers

What is the primary characteristic of a mixed economy?

A blend of private and public sector involvement in economic processes. (D) Signup and view all the answers

What is a common challenge facing developing countries?

Rapid population growth (D) Signup and view all the answers

What is the main advantage of a market economy?

Efficient production and innovation driven by profit motives. (C) Signup and view all the answers

What is the primary distinction between economic growth and economic development?

Economic growth focuses on increasing GDP, while economic development focuses on improving the standard of living (C) Signup and view all the answers

What is the primary objective of South Africa's economic initiatives like ASGISA and the New Economic Growth Path?

To enhance growth, competitiveness, and employment (B) Signup and view all the answers

What is the main disadvantage of a centrally planned economy?

Lack of individual and corporate incentive to improve efficiency or innovate. (B) Signup and view all the answers

What is the primary role of the government in a mixed economy?

To provide social services and regulate crucial sectors. (C) Signup and view all the answers

Which sector is the largest contributor to South Africa's GDP?

Tertiary sector (D) Signup and view all the answers

What is the main challenge facing South Africa's mixed economy?

Persistent issues with poverty and inequality. (A) Signup and view all the answers

What is the primary challenge facing South Africa's energy sector?

Underinvestment in new power sources (B) Signup and view all the answers

What is the primary role of transportation networks in South Africa's economy?

To facilitate domestic and international trade (C) Signup and view all the answers

What is the importance of understanding the circular flow of goods and services?

It helps in understanding the effects of various sectors on economic growth and stability. (D) Signup and view all the answers

What is the focus of laws like the Black Economic Empowerment Act and the Employment Equity Act?

To address historical inequalities and promote equity (B) Signup and view all the answers

What is the main difference between Gross Domestic Product (GDP) and Expenditure on Gross Domestic Product (GDE)?

GDP includes only domestic expenditure, while GDE includes international trade. (C) Signup and view all the answers

What is the primary significance of communication systems in South Africa's economy?

To enhance economic competitiveness and growth (C) Signup and view all the answers

What is the primary goal of the government's social services in a mixed economy?

To improve public welfare through education, healthcare, and community amenities. (A) Signup and view all the answers

What is the primary contribution of the primary sector to South Africa's economy?

To provide essential raw materials and energy (A) Signup and view all the answers

What is the main advantage of a mixed economy in South Africa?

It balances freedom of market operations with government oversight. (D) Signup and view all the answers

What is the primary goal of promoting economic growth in South Africa?

To reduce poverty and inequality (D) Signup and view all the answers

What is the primary role of infrastructure in South Africa's economy?

To enhance economic competitiveness and growth (B) Signup and view all the answers

What is the primary focus of South Africa's economic structure?

To enhance economic growth and competitiveness (C) Signup and view all the answers

What is the primary function of capital in economic growth?

To sustain production capabilities (A) Signup and view all the answers

What is the term for the total value of all final goods and services produced within a country's borders?

Gross Domestic Product (GDP) (B) Signup and view all the answers

What is the primary role of entrepreneurs in economic systems?

To manage businesses and take risks (C) Signup and view all the answers

What is the term for the return on invested funds in capital?

Interest (B) Signup and view all the answers

What is the significance of the circular flow of goods and services?

To highlight the interdependence between different sectors and agents in the economic system (C) Signup and view all the answers

What is the primary distinction between final and intermediate goods?

Final goods are consumed by the end user, while intermediate goods are used as inputs in the production of other goods (C) Signup and view all the answers

What is the primary component of the circular flow diagram?

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

What is the primary factor that affects the rate of return on invested funds in capital?

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

What is the primary purpose of investment in capital goods?

To match growth in labor and manage depreciation (B) Signup and view all the answers

What is the primary characteristic of entrepreneurship?

Risk-taking and innovation (B) Signup and view all the answers

What is the primary function of the poverty line income?

To indicate the minimum income needed to cover basic needs (B) Signup and view all the answers

Which of the following is a characteristic of money?

Divisibility (A) Signup and view all the answers

What is the primary function of the South African Reserve Bank (SARB)?

To implement monetary policy to control inflation (A) Signup and view all the answers

What is the primary distinction between natural resources and labor?

One is a human effort, while the other is an environmental asset (B) Signup and view all the answers

What is the purpose of micro-lending?

To provide small loans to individuals unable to access traditional bank financing (D) Signup and view all the answers

What is a consequence of bank failures?

Losses for depositors and investors (A) Signup and view all the answers

Which factor of production is categorized into renewable and non-renewable types?

Natural Resources (A) Signup and view all the answers

What is the significance of stability in the banking system?

It supports economic growth and confidence (B) Signup and view all the answers

What is the primary reason why natural resources are essential for economic development?

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

What is the difference between demand deposits and time deposits?

Demand deposits are available on-demand, while time deposits have a fixed term (A) Signup and view all the answers

What is the primary factor that affects the remuneration of labor?

Level of skills and education (A) Signup and view all the answers

What is the primary function of banks in the financial system?

To provide loans exceeding their cash reserves (B) Signup and view all the answers

Which factor of production is inherently non-storable?

Labor (D) Signup and view all the answers

What is the goal of the Millennium Development Goals?

To eradicate extreme poverty and hunger by 2015 (A) Signup and view all the answers

What is the primary reason why labor supply cannot be rapidly adjusted?

Due to the time required for training (A) Signup and view all the answers

What is the primary cause of poverty?

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

What is the primary form of remuneration associated with natural resources?

Rent (C) Signup and view all the answers

Which factor of production is crucial for production and economic growth?

Labor (C) Signup and view all the answers

What is the primary source of wealth creation?

Savings from income not spent on consumption (B) Signup and view all the answers

What is the primary goal of economic development?

To enhance the economic, social, and political welfare of a community (B) Signup and view all the answers

What is the measure of wealth inequality that ranges from 0 to 1?

Gini Coefficient (A) Signup and view all the answers

What is the primary objective of capital investment as a strategy for development?

To invest in directly productive assets and indirectly productive infrastructure (A) Signup and view all the answers

What is the primary factor that directly impacts productive capacity?

Capital Investment (D) Signup and view all the answers

Which of the following is a characteristic of Indigenous Knowledge Systems (IKS)?

Dynamic and continuously evolving (A) Signup and view all the answers

What is the primary difference between economic growth and economic development?

Economic growth is an increase in GDP, while economic development is an improvement in the overall standard of living (A) Signup and view all the answers

What is the limitation of using per capita GDP to measure standard of living?

It does not account for income distribution disparities (D) Signup and view all the answers

What is the primary goal of promoting entrepreneurship as a strategy for development?

To enhance economic growth and development (B) Signup and view all the answers

What is the primary focus of the Reconstruction and Development Programme (RDP) in South Africa?

To reduce poverty and inequality (C) Signup and view all the answers

What is the primary goal of promoting entrepreneurship as a strategy for development?

To diversify goods and services (D) Signup and view all the answers

What is the primary role of government policies in determining standard of living?

To influence economic stability and public services (A) Signup and view all the answers

What is the significance of security and infrastructure in economic development?

It is essential for sustainable development (A) Signup and view all the answers

What is the primary characteristic of developing countries?

Low productivity and inadequate infrastructure (B) Signup and view all the answers

What is the primary difference between economic growth and economic development?

Economic growth is a measure of output, while economic development is a measure of welfare (C) Signup and view all the answers

What is the primary purpose of the Human Development Index (HDI)?

To measure life expectancy, education, and GDP per capita (B) Signup and view all the answers

What is the primary goal of economic development?

To improve the overall standard of living (A) Signup and view all the answers

What is the effect of economic growth on the standard of living?

It has a positive impact on the standard of living (A) Signup and view all the answers

Which of the following is a strategy for development?

Promoting entrepreneurship (C) Signup and view all the answers

What is the definition of absolute poverty?

The inability to attain a minimum standard of living (A) Signup and view all the answers

What is the primary difference between Gross Domestic Product (GDP) and Gross National Income (GNI)?

GDP excludes income from abroad, while GNI includes it (D) Signup and view all the answers

What is the primary characteristic of a mixed economy?

Combination of private and public sector involvement (B) Signup and view all the answers

What is the primary advantage of a market economy?

Efficient production and innovation driven by profit motives (C) Signup and view all the answers

What is the primary disadvantage of a centrally planned economy?

Lack of individual and corporate incentive to improve efficiency (C) Signup and view all the answers

What is the primary role of the government in a mixed economy?

To provide essential services and regulate the economy (B) Signup and view all the answers

What is the primary goal of South Africa's economic initiatives, such as ASGISA and the New Economic Growth Path?

To enhance growth, competitiveness, and employment (D) Signup and view all the answers

What is the primary goal of the government's dual role in a mixed economy?

To promote economic growth and social welfare (D) Signup and view all the answers

What is the significance of the primary sector in South Africa's economy?

It generates a significant portion of foreign exchange and contributes to GDP (C) Signup and view all the answers

What is the primary benefit of understanding the circular flow of goods and services?

It helps in understanding the effects of various sectors on economic growth and stability (A) Signup and view all the answers

What is the primary characteristic of the Expenditure Method of calculating GDP?

It sums up all expenditures made on final goods and services (A) Signup and view all the answers

What is the primary focus of the secondary sector in South Africa's economy?

Transforming raw materials into finished goods (D) Signup and view all the answers

What is the primary importance of Gross Fixed Capital Formation (I)?

It reflects total investment in physical assets (B) Signup and view all the answers

What is the main characteristic of the tertiary sector in South Africa's economy?

It is the largest sector in developed economies (D) Signup and view all the answers

What is the primary characteristic of the Expenditure on Gross Domestic Product (GDE)?

It reflects total domestic expenditure on goods and services (A) Signup and view all the answers

What is the primary purpose of South Africa's infrastructure, including communication systems and transportation networks?

To facilitate domestic and international trade, boosting GDP and employment (C) Signup and view all the answers

What is the primary challenge facing South Africa's energy sector?

Insufficient emphasis on renewable energy (D) Signup and view all the answers

What is the significance of the public sector in South Africa's economy?

It is responsible for the collection of taxes and redistribution of income (A) Signup and view all the answers

What is the primary goal of laws like the Black Economic Empowerment Act and the Employment Equity Act?

To promote economic empowerment and equity (A) Signup and view all the answers

What is the significance of the business cycles in South Africa's economy?

They influence the country's economic growth and development (A) Signup and view all the answers

What is the primary objective of South Africa's economic structure?

To enhance growth, competitiveness, and employment (D) Signup and view all the answers

What is the primary function of natural resources in the production of goods and services?

To provide raw materials (B) Signup and view all the answers

What is a key characteristic of labor in the production process?

It varies in skill level (A) Signup and view all the answers

What is the typical form of remuneration associated with entrepreneurship?

Profit (A) Signup and view all the answers

What is a key factor that affects the distribution of natural resources?

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

What is the primary role of capital in the production process?

To facilitate production (C) Signup and view all the answers

What is a key characteristic of natural resources?

They vary in availability and renewability (A) Signup and view all the answers

What is the primary factor that affects labor supply?

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

What is the primary distinction between skilled, semi-skilled, and unskilled labor?

Level of education (C) Signup and view all the answers

What is the primary function of capital in economic systems?

To mobilize resources and employ labor (C) Signup and view all the answers

What is the primary difference between final and intermediate goods?

Intermediate goods are used in further production, while final goods are consumed by end-users (A) Signup and view all the answers

What is the significance of the circular flow diagram?

It highlights the interdependence between different sectors and agents in the economic system (C) Signup and view all the answers

What is the primary reward for entrepreneurship?

Profit (A) Signup and view all the answers

What is the term for the total spending by households on non-durable, semi-durable, and durable goods as well as services?

Consumption (A) Signup and view all the answers

What is the primary role of entrepreneurs in economic systems?

To initiate and manage businesses, identifying new opportunities and innovatively combining production factors (D) Signup and view all the answers

What is the term for the total value of all final goods and services produced within a country's borders?

Gross Domestic Product (GDP) (C) Signup and view all the answers

What is the primary function of government in the circular flow diagram?

To collect taxes and redistribute income through spending and transfers (A) Signup and view all the answers

What is the primary factor that affects the rate of return on invested funds in capital?

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

What is the term for the return on invested funds in capital?

Interest (D) Signup and view all the answers

What is the primary objective of initiatives like ASGISA and the New Economic Growth Path?

To improve international competitiveness and enhance growth (C) Signup and view all the answers

Which sector is the largest contributor to South Africa's GDP?

Tertiary sector (C) Signup and view all the answers

What is the primary importance of natural resources in South Africa's economy?

They contribute significantly to GDP (B) Signup and view all the answers

What was the historical exclusion faced by black South Africans in the secondary sector during apartheid?

Limited access to education and skills training (A) Signup and view all the answers

What is the primary role of transport networks in South Africa's economy?

To facilitate domestic and international trade (B) Signup and view all the answers

What is the primary challenge facing South Africa's energy sector?

Underinvestment in new power sources (B) Signup and view all the answers

What is the primary importance of the tertiary sector in South Africa's economy?

It is the largest contributor to GDP (C) Signup and view all the answers

What is the primary objective of laws like the Black Economic Empowerment Act and the Employment Equity Act?

To promote economic empowerment for previously disadvantaged groups (B) Signup and view all the answers

What is the primary importance of communication systems in South Africa's economy?

They are essential for economic competitiveness (B) Signup and view all the answers

What is the primary role of the public sector in South Africa's economy?

To collect taxes and redistribute income (B) Signup and view all the answers

What is the primary function of money in an economy?

All technical functions of money (D) Signup and view all the answers

Which of the following types of money is issued by the government and not backed by a physical commodity?

Fiat money (D) Signup and view all the answers

What is the primary purpose of micro-lending?

To provide small loans to individuals unable to access traditional bank financing (B) Signup and view all the answers

What is the role of the South African Reserve Bank (SARB) in the country's financial system?

To implement monetary policy (B) Signup and view all the answers

What is the effect of bank failures on the economy?

Losses for depositors and investors (C) Signup and view all the answers

What is the primary objective of poverty alleviation efforts in South Africa?

To reduce poverty and hunger (D) Signup and view all the answers

What is the poverty gap index?

A measure of the average shortfall from the poverty line (C) Signup and view all the answers

What is the primary reason for regulating micro-lending in South Africa?

To prevent predatory lending practices (A) Signup and view all the answers

What is the role of the reserve requirement in the banking system?

To control the amount of money banks can lend (D) Signup and view all the answers

What is the primary focus of the Millennium Development Goals?

To eradicate poverty and hunger (A) Signup and view all the answers

What is the primary goal of economic development?

To enhance the economic, social, and political welfare of a society (C) Signup and view all the answers

What is the primary source of wealth creation?

Savings (D) Signup and view all the answers

What is the purpose of measuring the distribution of wealth?

To show the inequality of wealth distribution within a country (C) Signup and view all the answers

What is the primary factor that directly impacts productive capacity?

Capital investment (A) Signup and view all the answers

What is the limitation of using per capita GDP to measure standard of living?

It does not account for income distribution disparities (B) Signup and view all the answers

What is the primary goal of promoting entrepreneurship as a strategy for development?

To create jobs and stimulate economic development (B) Signup and view all the answers

What is the effect of economic growth on the standard of living?

It typically improves the standard of living (C) Signup and view all the answers

What is the role of government policies in determining standard of living?

They influence economic stability and public services (C) Signup and view all the answers

What is the significance of security and infrastructure in economic development?

They are essential for sustainable development (B) Signup and view all the answers

What is the measure of wealth inequality that ranges from 0 to 1?

Gini Coefficient (D) Signup and view all the answers

What is the primary goal of promoting entrepreneurship as a strategy for development?

To create jobs and diversify goods and services (B) Signup and view all the answers

What is the primary characteristic of Indigenous Knowledge Systems (IKS)?

Local and culture-specific (A) Signup and view all the answers

What is the primary difference between economic growth and economic development?

Economic growth is an increase in GDP, while economic development is an improvement in standard of living (D) Signup and view all the answers

What is the primary goal of the Reconstruction and Development Programme (RDP) in South Africa?

To restructure the economy to enable sustainable development (C) Signup and view all the answers

What is the primary characteristic of developing countries?

Low standard of living and high population growth (B) Signup and view all the answers

What is the primary purpose of the Human Development Index (HDI)?

To measure a country's development through factors like life expectancy, education, and GDP per capita (B) Signup and view all the answers

What is the primary objective of capital investment as a strategy for development?

To stimulate growth through investing in productive assets and infrastructure (D) Signup and view all the answers

What is the primary focus of the Growth, Employment, and Redistribution Policy (GEAR) in South Africa?

To stabilize the economy and promote growth and redistribution (D) Signup and view all the answers

What is the primary limitation of using per capita GDP to measure standard of living?

It does not account for income inequality (B) Signup and view all the answers

What is the primary factor that affects productive capacity?

Technological advancement (D) Signup and view all the answers

What is the primary method of calculating Gross Domestic Product (GDP)?

Expenditure Method (A), Income Method (B) Signup and view all the answers

What is the definition of Gross National Income (GNI)?

GDP plus net income from abroad (B) Signup and view all the answers

What is the main characteristic of a mixed economy?

Coexistence of private and public sectors (A) Signup and view all the answers

What is the primary advantage of a market economy?

Efficient production and innovation driven by profit motives (C) Signup and view all the answers

What is the primary disadvantage of a centrally planned economy?

Lack of individual and corporate incentive to improve efficiency or innovate (B) Signup and view all the answers

What is the primary goal of the South African government's dual roles in the mixed economy?

Providing social services to improve public welfare (A), Promoting economic growth through efficient economic services (B) Signup and view all the answers

What is the significance of understanding the circular flow of goods and services?

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

What is the primary characteristic of South Africa's mixed economy?

Coexistence of private and public sectors (B) Signup and view all the answers

What is the primary advantage of a mixed economy?

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

What is the primary challenge facing South Africa's mixed economy?

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

What is the purpose of the poverty line income?

To indicate the minimum income needed to cover basic needs (C) Signup and view all the answers

What is the main difference between Gross Domestic Product (GDP) and Gross National Income (GNI)?

GDP excludes income from abroad, while GNI includes it (B) Signup and view all the answers

What is the main function of the headcount index?

To measure the percentage of the population living below the poverty line (C) Signup and view all the answers

What is the characteristic of money that allows it to be used as a medium of exchange?

General Acceptance (D) Signup and view all the answers

What is the primary function of Gross Fixed Capital Formation (I)?

To reflect total investment in physical assets for future production (D) Signup and view all the answers

What type of money is backed by a physical commodity?

Commodity Money (D) Signup and view all the answers

Which of the following is a characteristic of a mixed economy?

Coexistence of private and public sectors (D) Signup and view all the answers

What is the primary advantage of a market economy?

Efficient production and innovation driven by profit motives (C) Signup and view all the answers

What is the purpose of micro-lending?

To provide small loans to individuals who cannot access traditional bank financing (C) Signup and view all the answers

What is the main function of the South African Reserve Bank (SARB)?

To implement monetary policy to control inflation (D) Signup and view all the answers

What is the primary disadvantage of a centrally planned economy?

Lack of individual and corporate incentive to improve efficiency or innovate (C) Signup and view all the answers

What is the primary goal of economic development?

To improve the overall standard of living in a country (D) Signup and view all the answers

What is the impact of bank failures on the economy?

It leads to losses for depositors and investors, and erosion of public trust (B) Signup and view all the answers

What is the primary role of the government in South Africa's mixed economy?

To provide social services and regulate crucial areas (A) Signup and view all the answers

What is the significance of the circular flow of goods and services?

It provides insights into how money and goods circulate within an economy (D) Signup and view all the answers

What is a common characteristic of developing countries?

Dependence on industrial diversification (B) Signup and view all the answers

Why is stability in the banking system important?

It supports economic growth and manages monetary policy effectively (A) Signup and view all the answers

What is the primary focus of the Reconstruction and Development Programme (RDP) in South Africa?

To restructure the economy for sustainable development (A) Signup and view all the answers

What is the primary advantage of a mixed economy in South Africa?

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

What is the purpose of reserve requirements?

To limit the amount of money banks can lend (D) Signup and view all the answers

What is the primary disadvantage of South Africa's mixed economy?

Persistent issues with poverty and inequality (C) Signup and view all the answers

What is the purpose of repo rate adjustments?

To influence lending rates across the banking sector (C) Signup and view all the answers

What is the role of Indigenous Knowledge Systems (IKS) in South Africa?

To address local health care needs and agricultural practices (C) Signup and view all the answers

What is the definition of relative poverty?

Comparative lack within society, where individuals lack resources considered normal by societal standards (B) Signup and view all the answers

What is the significance of understanding the circular flow of goods and services?

It helps in understanding the effects of various sectors on economic growth and stability (C) Signup and view all the answers

What is the primary objective of the Human Development Index (HDI)?

To measure a country's development through factors like life expectancy, education, and GDP per capita (B) Signup and view all the answers

What is the primary goal of promoting entrepreneurship as a strategy for development?

To create jobs and diversify goods and services (C) Signup and view all the answers

What is the primary characteristic that distinguishes natural resources from other factors of production?

They vary in availability and renewability (D) Signup and view all the answers

Which factor of production is responsible for generating income for resource owners?

Natural Resources (A) Signup and view all the answers

What is a characteristic of Indigenous Knowledge Systems (IKS)?

Local and culture-specific (D) Signup and view all the answers

What is the primary factor that determines the level of productivity in the labor market?

Level of skills and education (A) Signup and view all the answers

What is the primary challenge facing South Africa's development?

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

What is the primary purpose of capital investment as a strategy for development?

To invest in both directly productive assets and indirectly productive infrastructure (D) Signup and view all the answers

What is the primary consequence of the uneven distribution of natural resources across regions?

It affects economic dynamics (B) Signup and view all the answers

What is the primary form of remuneration associated with labor?

Wages (C) Signup and view all the answers

What is the primary distinction between renewable and non-renewable natural resources?

Their susceptibility to depletion (B) Signup and view all the answers

Which factor of production is responsible for creating employment opportunities?

Natural Resources (C) Signup and view all the answers

What is the primary factor that influences the remuneration of natural resources?

Demand for the resource (A) Signup and view all the answers

What is the primary focus of economic development?

Improving the standard of living of a society (A) Signup and view all the answers

What is a characteristic of wealth?

The ability to generate income and potential for value appreciation or depreciation (C) Signup and view all the answers

What is the purpose of the Lorenz Curve?

To illustrate the actual distribution of wealth across a population (B) Signup and view all the answers

What is a factor that influences economic growth?

Capital investment, labor productivity, and technological advancements (A) Signup and view all the answers

What is the significance of GDP per capita?

It compares economic performance relative to population size (D) Signup and view all the answers

What is the primary reason for uneven wealth distribution?

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

What is the purpose of measuring the distribution of wealth?

To identify areas of inequality and implement policies for wealth redistribution (D) Signup and view all the answers

What is the primary goal of economic development?

To enhance the economic welfare of a community (C) Signup and view all the answers

What is the difference between economic growth and economic development?

Economic growth refers to an increase in output, while economic development refers to an increase in welfare (D) Signup and view all the answers

What is the Gini Coefficient used for?

To measure wealth inequality (A) Signup and view all the answers

What is the primary function of capital in economic growth?

To sustain production capabilities (B) Signup and view all the answers

What is the difference between final and intermediate goods?

Final goods are consumed by end users, while intermediate goods are used as inputs in production (B) Signup and view all the answers

What is the role of entrepreneurs in economic systems?

To initiate and manage businesses, identifying new opportunities and innovatively combining resources (B) Signup and view all the answers

What is the purpose of the circular flow diagram?

To illustrate the economic transactions that occur between different sectors of the economy (C) Signup and view all the answers

What is the significance of capital widening and deepening?

It affects productivity and economic output (B) Signup and view all the answers

What is the primary factor that affects the remuneration of capital?

Risk, liquidity, investment duration, capital demand, and funding supply (C) Signup and view all the answers

What is the role of government in the circular flow of goods and services?

To collect taxes and redistribute income (D) Signup and view all the answers

What is the significance of Gross Domestic Product (GDP)?

It measures the total value of all final goods and services produced within a country's borders (C) Signup and view all the answers

What is the primary purpose of investment in capital goods?

To match growth in labor and manage depreciation (D) Signup and view all the answers

What is the significance of the value added method in calculating GDP?

It calculates the sum of value added at each stage of production (A) Signup and view all the answers

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

To enhance economic growth and competitiveness (C) Signup and view all the answers

Which sector of the economy is the largest contributor to South Africa's GDP?

Tertiary sector (A) Signup and view all the answers

What is the primary challenge facing South Africa's energy sector?

Insufficient emphasis on renewable energy (C) Signup and view all the answers

What is the primary function of the secondary sector in South Africa's economy?

Manufacturing and construction of finished goods (D) Signup and view all the answers

What is the primary purpose of South Africa's transportation networks?

To distribute goods and services domestically (A) Signup and view all the answers

What is the primary goal of Black Economic Empowerment (BEE) policies in South Africa?

To improve access and equity for black South Africans in the economy (B) Signup and view all the answers

What is the significance of communication systems in South Africa's economy?

They enhance economic competitiveness and growth (A) Signup and view all the answers

What is the primary role of the public sector in South Africa's economy?

To collect taxes and redistribute income (B) Signup and view all the answers

What is the primary focus of South Africa's international trade?

To produce high-quality, competitively priced goods (B) Signup and view all the answers

What is the significance of the primary sector in South Africa's economy?

It generates employment and foreign exchange, contributing to GDP (C) Signup and view all the answers

What is the primary characteristic of labor in terms of its storability?

It is inherently non-storable (D) Signup and view all the answers

Which of the following factors affect the payment associated with natural resources?

Demand for the resource, climate, and geographic location (B) Signup and view all the answers

What is the primary role of natural resources in economic development?

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

What is the primary distinction between renewable and non-renewable natural resources?

Their renewability (B) Signup and view all the answers

What is the primary factor that affects the productivity of labor?

The level of skills and education (C) Signup and view all the answers

What is the primary form of remuneration associated with labor?

Wages (C) Signup and view all the answers

What is the primary characteristic of entrepreneurship in terms of its role in economic development?

It drives economic growth and development (D) Signup and view all the answers

What is the primary role of capital in economic development?

Providing the necessary infrastructure for production (C) Signup and view all the answers

What is the primary method of calculating GDP?

Expenditure Method (A), Income Method (B) Signup and view all the answers

What is the primary difference between a market economy and a centrally planned economy?

Government involvement (C) Signup and view all the answers

What is the primary advantage of a mixed economy?

Balanced individual and social welfare (C) Signup and view all the answers

What is the primary function of the South African government in the mixed economy?

Promoting economic growth (B), Providing social services (C) Signup and view all the answers

What is the primary characteristic of a market economy?

Private ownership of resources (B) Signup and view all the answers

What is the primary disadvantage of a centrally planned economy?

Lack of individual and corporate incentives (D) Signup and view all the answers

What is the primary factor that determines wage levels?

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

What is the primary importance of understanding the circular flow?

Understanding the impact of various sectors on economic growth (C) Signup and view all the answers

What is the primary role of entrepreneurs in economic systems?

Mobilizing resources and investing in capital (D) Signup and view all the answers

What is the primary purpose of calculating Gross Domestic Product (GDP)?

To evaluate the total economic activity (B) Signup and view all the answers

What is the primary component of Gross Fixed Capital Formation (I)?

Investment in physical assets (A) Signup and view all the answers

What is the primary advantage of a mixed economy in South Africa?

Mitigates poverty and inequality (B) Signup and view all the answers

What is the primary distinction between final and intermediate goods?

Final goods are consumed by the end user, while intermediate goods are used as inputs in the production of other goods (C) Signup and view all the answers

What is the primary component of the circular flow of goods and services that represents government spending on goods and services?

Government Expenditure (G) (D) Signup and view all the answers

What is the primary distinction between GDP and GNI?

GNI includes net income from abroad (C) Signup and view all the answers

What is the primary reward for entrepreneurship?

Profit (D) Signup and view all the answers

What is the primary factor that affects the rate of return on invested funds in capital?

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

What is the primary purpose of the Value Added Method in calculating GDP?

To sum the value added at each stage of production (B) Signup and view all the answers

What is the primary component of the circular flow of goods and services that represents total spending by households on goods and services?

Consumption (C) (D) Signup and view all the answers

What is the primary characteristic of capital that makes it essential for economic growth?

It sustains production capabilities (D) Signup and view all the answers

What is the primary objective of economic development?

To enhance the economic, social, and political welfare of a community (A) Signup and view all the answers

What is the primary goal of South Africa's economic initiatives such as ASGISA and the New Economic Growth Path?

To enhance growth, competitiveness, and employment (B) Signup and view all the answers

What is a characteristic of wealth?

The ability to generate income (A) Signup and view all the answers

What is the primary sector's contribution to South Africa's economy?

Provides essential raw materials and energy (C) Signup and view all the answers

What is the purpose of measuring the distribution of wealth?

To show significant inequality within and across nations (D) Signup and view all the answers

What was the historical exclusion faced by black South Africans in the secondary sector during apartheid?

Restrictions on job opportunities and training (D) Signup and view all the answers

What is a factor that influences economic growth?

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

What is the limitation of using per capita GDP to measure standard of living?

It does not account for income distribution disparities within countries (A) Signup and view all the answers

What is the primary characteristic of the tertiary sector in South Africa's economy?

Dominant contributor to GDP (A) Signup and view all the answers

What is the primary role of communication systems in South Africa's economy?

Supports the marketing and distribution of goods (D) Signup and view all the answers

What is the primary goal of economic development?

To enhance the standard of living of a society (A) Signup and view all the answers

What is the measure of wealth inequality that ranges from 0 to 1?

Gini Coefficient (D) Signup and view all the answers

What is the primary challenge facing South Africa's energy sector?

Insufficient emphasis on renewable energy (A) Signup and view all the answers

What is the primary source of wealth creation?

Savings (C) Signup and view all the answers

What is the primary function of transportation networks in South Africa's economy?

Facilitates domestic and international trade (B) Signup and view all the answers

What is the effect of economic growth on the standard of living?

It improves the standard of living (A) Signup and view all the answers

What is the primary objective of laws like the Black Economic Empowerment Act and the Employment Equity Act?

To address historical inequalities and promote economic empowerment (D) Signup and view all the answers

What is the role of government policies in determining standard of living?

To influence economic stability and public services (B) Signup and view all the answers

What is the primary significance of the public sector in South Africa's economy?

Collects taxes and redistributes income (D) Signup and view all the answers

What is the primary role of infrastructure in South Africa's economy?

Enhances economic competitiveness and growth (C) Signup and view all the answers

What is the primary goal of enhancing the quality and value of natural resources through beneficiation processes?

To add value to raw products (A) Signup and view all the answers

Which of the following is a characteristic of developing countries?

Low standard of living (A) Signup and view all the answers

What is the primary focus of the Human Development Index (HDI)?

To measure life expectancy, education, and GDP per capita (B) Signup and view all the answers

What is the primary goal of promoting entrepreneurship as a strategy for development?

To create jobs and diversify goods and services (C) Signup and view all the answers

What is the primary characteristic of Indigenous Knowledge Systems (IKS)?

Dynamic and continuously evolving (D) Signup and view all the answers

What is the definition of relative poverty?

A comparative lack within society, where individuals lack resources considered normal by societal standards (A) Signup and view all the answers

What is the primary goal of capital investment as a strategy for development?

To stimulate economic growth (D) Signup and view all the answers

What is the primary distinction between economic growth and economic development?

Economic growth occurs without widespread benefits, while economic development is an improvement in the overall standard of living (C) Signup and view all the answers

What is the primary goal of the Reconstruction and Development Programme (RDP) in South Africa?

To enable sustainable development by restructuring the economy (A) Signup and view all the answers

What is the primary characteristic of developing countries' labor?

Outdated technology and insufficient capital (A) Signup and view all the answers

What is the primary function of the poverty line income?

To indicate the minimum income needed to cover basic needs (D) Signup and view all the answers

Which of the following is a characteristic of money?

General acceptance (B) Signup and view all the answers

What is the primary function of the South African Reserve Bank (SARB)?

To implement monetary policy and maintain financial stability (A) Signup and view all the answers

What is the consequence of bank failures?

Job losses for employees and erosion of public trust (C) Signup and view all the answers

What is the primary purpose of social welfare grants in South Africa?

To alleviate poverty and provide basic needs (C) Signup and view all the answers

What is the role of banks in the economy?

To create new money through credit (D) Signup and view all the answers

What is the purpose of micro-lending in South Africa?

To provide small loans to individuals who cannot access traditional bank financing (B) Signup and view all the answers

What is the effect of poverty on the economy?

Perpetual cycle of poverty, affecting health, crime rates, and economic demand (D) Signup and view all the answers

What is the significance of the stability of the banking system?

It supports economic growth and manages the country's monetary policy effectively (C) Signup and view all the answers

What is the primary focus of the Millennium Development Goals?

To alleviate poverty and hunger (A) Signup and view all the answers

What are the primary factors of production?

Natural Resources, Labor, Capital, and Entrepreneurship (A) Signup and view all the answers

What is the primary importance of natural resources in economic development?

Generating employment opportunities and creating income for resource owners (A) Signup and view all the answers

What is the primary characteristic of labor in the production process?

Labor is non-storable and supply cannot be rapidly adjusted (A) Signup and view all the answers

What is the primary form of remuneration associated with labor?

Wages and benefits (D) Signup and view all the answers

What is the primary distinction between skilled, semi-skilled, and unskilled labor?

Level of education (B) Signup and view all the answers

What is the primary factor that affects the remuneration of natural resources?

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

What is the primary importance of entrepreneurship in economic development?

Driving economic development and growth (C) Signup and view all the answers

What is the primary characteristic of natural resources that affects economic dynamics?

Uneven distribution across regions (A) Signup and view all the answers

What is the primary objective of capital investment as a strategy for development?

To stimulate economic growth by investing in productive assets and infrastructure (D) Signup and view all the answers

What is the primary method of calculating Gross Domestic Product (GDP)?

Expenditure Method (A) Signup and view all the answers

What is the main characteristic that distinguishes economic development from economic growth?

An improvement in the overall standard of living (C) Signup and view all the answers

What is the primary purpose of the Human Development Index (HDI)?

To measure a country's development through factors like life expectancy, education, and GDP per capita (A) Signup and view all the answers

What is the main difference between Gross Domestic Product (GDP) and Gross National Income (GNI)?

GDP excludes income from abroad, while GNI includes it (C) Signup and view all the answers

What is the primary characteristic of a mixed economy?

Coexistence of private and public sectors (C) Signup and view all the answers

What is the primary goal of promoting entrepreneurship as a strategy for development?

To create jobs and diversify goods and services (B) Signup and view all the answers

What is a common characteristic of developing countries?

Low productivity due to outdated technology (B) Signup and view all the answers

What is the primary advantage of a market economy?

Efficient production and innovation driven by profit motives (D) Signup and view all the answers

What is the primary disadvantage of a centrally planned economy?

Lack of individual and corporate incentive to improve efficiency or innovate (C) Signup and view all the answers

What is the primary role of Indigenous Knowledge Systems (IKS)?

To address local healthcare needs and environmental management (B) Signup and view all the answers

What is the primary objective of the Reconstruction and Development Programme (RDP)?

To restructure the economy to enable sustainable development (C) Signup and view all the answers

What is the main objective of South Africa's economic structures?

To enhance global market position (C) Signup and view all the answers

What is the primary role of government in a mixed economy?

Providing social services to improve public welfare (B) Signup and view all the answers

What is the primary benefit of understanding the circular flow of goods and services?

It helps in understanding the effects of various sectors on economic growth and stability (D) Signup and view all the answers

What is the primary contribution of the secondary sector to South Africa's economy?

Produces consumer and capital goods (D) Signup and view all the answers

What is the definition of absolute poverty?

The inability to attain a minimum standard of living (A) Signup and view all the answers

What is the primary characteristic of resource improvement as a strategy for development?

Enhancing the quality and value of natural resources through beneficiation processes (D) Signup and view all the answers

What is the primary characteristic of Gross Fixed Capital Formation (I)?

It reflects total investment in physical assets that will be used in future production (A) Signup and view all the answers

What is the main challenge facing South Africa's energy sector?

Underinvestment in new power sources (A), Insufficient emphasis on renewable energy (C) Signup and view all the answers

What is the primary advantage of a mixed economy in South Africa?

It promotes economic growth while aiming to improve social welfare (D) Signup and view all the answers

What is the primary role of the tertiary sector in South Africa's economy?

Providing services and driving economic growth (B) Signup and view all the answers

What is the primary goal of economic development?

To improve the overall standard of living (B) Signup and view all the answers

What is the primary challenge facing the South African government in promoting economic growth and development?

Persistent issues with poverty and inequality (D) Signup and view all the answers

What is the primary objective of initiatives like ASGISA and the New Economic Growth Path?

To enhance growth, competitiveness, and employment (D) Signup and view all the answers

What is the significance of communication systems in South Africa's economy?

Facilitates domestic and international trade, boosting GDP and employment (D) Signup and view all the answers

What is the historical context of discrimination and exclusion in South Africa's economy?

Apartheid era (D) Signup and view all the answers

What is the primary focus of the tertiary sector in South Africa's economy?

Service-oriented industries (C) Signup and view all the answers

What is the significance of the primary sector in South Africa's economy?

Provides essential raw materials and energy (A) Signup and view all the answers

What is the primary role of transportation networks in South Africa's economy?

Facilitates domestic and international trade, boosting GDP and employment (D) Signup and view all the answers

What is the primary goal of economic development?

To enhance the economic, social, and political welfare of a community (D) Signup and view all the answers

What is the primary source of wealth creation?

Savings and investments (B) Signup and view all the answers

What is the measure of wealth inequality that ranges from 0 to 1?

Gini Coefficient (C) Signup and view all the answers

What is the primary factor that directly impacts productive capacity?

Capital investment (D) Signup and view all the answers

What is the limitation of using per capita GDP to measure standard of living?

It does not account for income distribution disparities (A) Signup and view all the answers

What is the effect of economic growth on the standard of living?

It typically improves the standard of living (C) Signup and view all the answers

What is the role of government policies in determining standard of living?

They influence economic stability and public services (A) Signup and view all the answers

What is the significance of security and infrastructure in economic development?

They are essential for sustainable development (B) Signup and view all the answers

What is the primary distinction between economic growth and economic development?

Economic growth is an increase in output, while economic development is an improvement in standard of living (A) Signup and view all the answers

What is the primary goal of promoting entrepreneurship as a strategy for development?

To promote job creation and economic growth (B) Signup and view all the answers

What is the primary purpose of the poverty line income?

To indicate the minimum income needed to cover basic needs (D) Signup and view all the answers

What is the primary function of money in an economy?

To facilitate the buying and selling of goods and services (A) Signup and view all the answers

What is the primary characteristic of fiat money?

It is not backed by a physical commodity (D) Signup and view all the answers

What is the primary role of the South African Reserve Bank (SARB)?

To implement monetary policy (A) Signup and view all the answers

What is the primary effect of bank failures on the economy?

Losses for depositors and investors (A) Signup and view all the answers

What is the primary purpose of micro-lending?

To provide small loans to individuals unable to access traditional bank financing (A) Signup and view all the answers

What is the primary advantage of a stable banking system?

It promotes confidence and supports economic growth (B) Signup and view all the answers

What is the primary goal of the Millennium Development Goals?

To eradicate extreme poverty and hunger by 2015 (A) Signup and view all the answers

What is the primary characteristic of commodity money?

It is a physical good used as money (C) Signup and view all the answers

What is the primary function of the poverty gap index?

To calculate the average shortfall from the poverty line (D) Signup and view all the answers

What is the primary function of capital in an economy?

To sustain production capabilities and drive economic growth (D) Signup and view all the answers

What is the primary role of entrepreneurs in economic systems?

To mobilize resources, invest in capital, and employ labor (B) Signup and view all the answers

What is the significance of the distinction between final and intermediate goods?

To avoid double-counting in calculating GDP (D) Signup and view all the answers

What is the primary component of the circular flow of goods and services?

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

What is the primary measure of the total value of all final goods and services produced within a country's borders?

Gross Domestic Product (GDP) (A) Signup and view all the answers

What is the primary factor that affects the rate of return on invested funds in capital?

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

What is the primary characteristic of entrepreneurship?

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

What is the primary role of government in the circular flow of goods and services?

To collect taxes and redistribute income through spending and transfers (D) Signup and view all the answers

What is the primary component of investment in the circular flow of goods and services?

Spending by businesses on capital goods (A) Signup and view all the answers

What is the primary purpose of calculating GDP?

To evaluate the total economic activity of a country (B) Signup and view all the answers

Nov P1 Med

Choose a study mode

Podcast

Questions and Answers

What is the primary function of natural resources in economic development?

What is the primary focus of initiatives like ASGISA and the New Economic Growth Path?

What type of labor is heavily reliant on the level of skills and education?

Which of the following is NOT a characteristic of capital?

What is the primary reward for entrepreneurship?

What is the main contribution of the primary sector to South Africa's economy?

What is the form of remuneration associated with natural resources?

What is the purpose of the value added method in calculating GDP?

What was the historical exclusion faced by black South Africans in the primary sector during apartheid?

Which of the following is NOT a characteristic of natural resources?

What is the primary function of the secondary sector in South Africa's economy?

What is a factor that affects labor supply?

Which sector of the economy collects taxes and redistributes income?

What is the term for the total spending by households on non-durable, semi-durable, and durable goods as well as services?

What is the significance of the tertiary sector in South Africa's economy?

What is the primary distinction between skilled, semi-skilled, and unskilled labor?

What is the primary objective of laws like the Black Economic Empowerment Act and the Employment Equity Act?

What is the role of entrepreneurs in economic systems?

What is the name of the fourth primary factor of production?

What is the term for the total value of all final goods and services produced within a country's borders?

What is the significance of communication systems in South Africa's economy?

What is included in the compensation of labor?

What is the term for the return on invested funds in capital?

What is the primary challenge facing South Africa's energy sector?

Which of the following is an example of an intermediate good?

What is the primary function of transportation networks in South Africa's economy?

What is the significance of the public sector in South Africa's economy?

What is the circular flow of goods and services?

What is the primary objective of capital investment as a strategy for development?

Which of the following is NOT a characteristic of developing countries?

What is the primary purpose of the Human Development Index (HDI)?

What is the focus of the Reconstruction and Development Programme (RDP) in South Africa?

What is the primary characteristic of Indigenous Knowledge Systems (IKS)?

What is the definition of absolute poverty?

What is the main difference between economic growth and economic development?

What is the primary source of wealth creation?

What is the primary goal of promoting entrepreneurship as a strategy for development?

What is the measure of wealth inequality that ranges from 0 to 1?

Which of the following is a characteristic of developing countries?

What is the focus of the Growth, Employment, and Redistribution Policy (GEAR) in South Africa?

What is the purpose of measuring the distribution of wealth?

What is the factor that directly impacts productive capacity?

What is the limitation of using per capita GDP to measure standard of living?

What is the primary goal of economic development?

What is the effect of economic growth on the standard of living?

What is the role of government policies in determining standard of living?

What is the significance of security and infrastructure in economic development?

What is the difference between economic growth and economic development?

What is the primary distinction between renewable and non-renewable natural resources?

What is the primary factor that affects the remuneration of natural resources?

What is the primary characteristic that distinguishes skilled labor from semi-skilled and unskilled labor?

What is the primary role of entrepreneurship in economic development?

What is the primary importance of natural resources in economic development?

What is the primary factor that affects labor supply?

What is the primary form of remuneration associated with labor?

What is the primary characteristic of capital?

What is the primary role of entrepreneurs in economic systems?

What is the purpose of the value added method in calculating GDP?

What is the term for the total spending by households on non-durable, semi-durable, and durable goods as well as services?

What is the primary function of capital in economic growth?

What is the term for the return on invested funds in capital?

What is the primary distinction between final goods and intermediate goods?

What is the primary role of government in the circular flow of goods and services?

What is the term for the total value of all final goods and services produced within a country's borders?

What is the primary function of the foreign sector in the circular flow of goods and services?

What is the primary role of households in the circular flow of goods and services?

What is the primary focus of economic development?

What is the term for the numerical representation of wealth inequality?

What is a primary factor that influences economic growth?

What is the limitation of using per capita GDP to measure standard of living?

What is the primary characteristic of wealth in economic terms?

What is the effect of economic growth on the standard of living?

What is the primary goal of promoting entrepreneurship as a strategy for development?

What is the primary source of wealth creation?

What is the role of government policies in determining standard of living?

What is the significance of security and infrastructure in economic development?