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Questions and Answers

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?

    <p>It is a type of labor</p> Signup and view all the answers

    What is the primary reward for entrepreneurship?

    <p>Profit</p> Signup and view all the answers

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

    <p>Provides essential raw materials and energy</p> Signup and view all the answers

    What is the form of remuneration associated with natural resources?

    <p>Rent</p> Signup and view all the answers

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

    <p>To calculate the total value of final goods and services</p> Signup and view all the answers

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

    <p>Denial of land ownership and equal opportunities</p> Signup and view all the answers

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

    <p>Non-storable</p> Signup and view all the answers

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

    <p>Transforming raw materials into finished goods</p> Signup and view all the answers

    What is a factor that affects labor supply?

    <p>Population growth</p> Signup and view all the answers

    Which sector of the economy collects taxes and redistributes income?

    <p>Government</p> 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?

    <p>Consumption</p> Signup and view all the answers

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

    <p>Dominant contributor to GDP</p> Signup and view all the answers

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

    <p>Education level</p> Signup and view all the answers

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

    <p>Dismantling historical barriers to participation</p> Signup and view all the answers

    What is the role of entrepreneurs in economic systems?

    <p>To generate wealth and create jobs</p> Signup and view all the answers

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

    <p>Entrepreneurship</p> 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?

    <p>Gross Domestic Product</p> Signup and view all the answers

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

    <p>Essential for economic competitiveness</p> Signup and view all the answers

    What is included in the compensation of labor?

    <p>Wages and benefits</p> Signup and view all the answers

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

    <p>Interest</p> Signup and view all the answers

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

    <p>Underinvestment in new power sources</p> Signup and view all the answers

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

    <p>A bag of flour</p> Signup and view all the answers

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

    <p>Facilitating domestic and international trade</p> Signup and view all the answers

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

    <p>Supports economic growth and development</p> Signup and view all the answers

    What is the circular flow of goods and services?

    <p>The continuous movement of goods, services, and money within an economy</p> Signup and view all the answers

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

    <p>To stimulate growth by investing in productive assets and infrastructure</p> Signup and view all the answers

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

    <p>High productivity</p> Signup and view all the answers

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

    <p>To measure a country's development through factors like life expectancy, education, and GDP per capita</p> Signup and view all the answers

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

    <p>To restructure the economy to enable sustainable development</p> Signup and view all the answers

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

    <p>They are rooted in specific communities and traditions</p> Signup and view all the answers

    What is the definition of absolute poverty?

    <p>The lack of basic human needs like water, food, healthcare, education, clothing, and shelter</p> Signup and view all the answers

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

    <p>Economic growth occurs without widespread benefits, while economic development is an improvement in the overall standard of living</p> Signup and view all the answers

    What is the primary source of wealth creation?

    <p>Savings</p> Signup and view all the answers

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

    <p>To create jobs and diversify goods and services</p> Signup and view all the answers

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

    <p>Gini Coefficient</p> Signup and view all the answers

    Which of the following is a characteristic of developing countries?

    <p>Low productivity</p> Signup and view all the answers

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

    <p>To stabilize the economy and promote growth and redistribution</p> Signup and view all the answers

    What is the purpose of measuring the distribution of wealth?

    <p>To illustrate the actual distribution of wealth across a population</p> Signup and view all the answers

    What is the factor that directly impacts productive capacity?

    <p>Capital investment</p> Signup and view all the answers

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

    <p>It does not account for income distribution disparities</p> Signup and view all the answers

    What is the primary goal of economic development?

    <p>To enhance the economic, social, and political welfare of a community</p> Signup and view all the answers

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

    <p>It typically improves the standard of living</p> Signup and view all the answers

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

    <p>They influence economic stability and public services</p> Signup and view all the answers

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

    <p>They are essential for sustainable development</p> Signup and view all the answers

    What is the difference between economic growth and economic development?

    <p>Economic growth is a narrower concept, while economic development is broader</p> Signup and view all the answers

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

    <p>Their ability to be replenished over time</p> Signup and view all the answers

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

    <p>Climate and geographic location</p> Signup and view all the answers

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

    <p>Level of education</p> Signup and view all the answers

    What is the primary role of entrepreneurship in economic development?

    <p>To innovate and take risks</p> Signup and view all the answers

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

    <p>All of the above</p> Signup and view all the answers

    What is the primary factor that affects labor supply?

    <p>All of the above</p> Signup and view all the answers

    What is the primary form of remuneration associated with labor?

    <p>Wages</p> Signup and view all the answers

    What is the primary characteristic of capital?

    <p>It is man-made and used in production</p> Signup and view all the answers

    What is the primary role of entrepreneurs in economic systems?

    <p>To generate wealth, create jobs, and foster competition</p> Signup and view all the answers

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

    <p>To measure the total value of all final goods and services</p> 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?

    <p>Consumption</p> Signup and view all the answers

    What is the primary function of capital in economic growth?

    <p>To maintain and expand production capabilities</p> Signup and view all the answers

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

    <p>Interest</p> Signup and view all the answers

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

    <p>Final goods are consumed by the end user, while intermediate goods are used as inputs in the production of other goods</p> Signup and view all the answers

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

    <p>To collect taxes and redistribute income</p> 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?

    <p>Gross Domestic Product (GDP)</p> Signup and view all the answers

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

    <p>To trade and engage in financial transactions with other countries</p> Signup and view all the answers

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

    <p>To provide labor and spend income on goods and services</p> Signup and view all the answers

    What is the primary focus of economic development?

    <p>Improvements in the standard of living of a society</p> Signup and view all the answers

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

    <p>Gini Coefficient</p> Signup and view all the answers

    What is a primary factor that influences economic growth?

    <p>Labor Productivity</p> Signup and view all the answers

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

    <p>It does not account for income distribution disparities within countries</p> Signup and view all the answers

    What is the primary characteristic of wealth in economic terms?

    <p>An abundance of valuable resources or material possessions</p> Signup and view all the answers

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

    <p>It typically improves living standards</p> Signup and view all the answers

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

    <p>To create new opportunities and jobs</p> Signup and view all the answers

    What is the primary source of wealth creation?

    <p>Savings</p> Signup and view all the answers

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

    <p>They influence economic stability and public services</p> Signup and view all the answers

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

    <p>They are essential for sustainable development</p> Signup and view all the answers

    What is the primary purpose of the poverty line income?

    <p>To indicate the minimum income needed to cover basic needs</p> Signup and view all the answers

    What is a characteristic of money?

    <p>Uniformity</p> Signup and view all the answers

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

    <p>To provide loans exceeding their cash reserves</p> Signup and view all the answers

    What is the primary purpose of micro-lending?

    <p>To provide small loans to individuals unable to access traditional bank financing</p> Signup and view all the answers

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

    <p>To implement monetary policy to control inflation</p> Signup and view all the answers

    What is a consequence of bank failures?

    <p>Losses for depositors and investors</p> Signup and view all the answers

    What is the purpose of the headcount index?

    <p>To measure the percentage of the population living below the poverty line</p> Signup and view all the answers

    What is a type of money?

    <p>Commodity money</p> Signup and view all the answers

    What is the primary concern of monetary policy tools?

    <p>To control inflation</p> Signup and view all the answers

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

    <p>To promote economic growth</p> Signup and view all the answers

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

    <p>Improving labor quality through education and healthcare</p> Signup and view all the answers

    What is a common characteristic of developing countries?

    <p>Low productivity due to outdated technology</p> Signup and view all the answers

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

    <p>To measure standard of living through factors like life expectancy and education</p> Signup and view all the answers

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

    <p>To restructure the economy to enable sustainable development</p> Signup and view all the answers

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

    <p>It is rooted in specific communities and traditions</p> Signup and view all the answers

    What is the definition of absolute poverty?

    <p>The inability to attain a minimum standard of living</p> Signup and view all the answers

    What is the primary goal of economic development?

    <p>To improve the overall standard of living</p> Signup and view all the answers

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

    <p>GDP includes only domestic income, while GNI includes income from abroad.</p> Signup and view all the answers

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

    <p>Investing in indirectly productive infrastructure</p> Signup and view all the answers

    What is the primary characteristic of a mixed economy?

    <p>A blend of private and public sector involvement in economic processes.</p> Signup and view all the answers

    What is a common challenge facing developing countries?

    <p>Rapid population growth</p> Signup and view all the answers

    What is the main advantage of a market economy?

    <p>Efficient production and innovation driven by profit motives.</p> Signup and view all the answers

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

    <p>Economic growth focuses on increasing GDP, while economic development focuses on improving the standard of living</p> 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?

    <p>To enhance growth, competitiveness, and employment</p> Signup and view all the answers

    What is the main disadvantage of a centrally planned economy?

    <p>Lack of individual and corporate incentive to improve efficiency or innovate.</p> Signup and view all the answers

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

    <p>To provide social services and regulate crucial sectors.</p> Signup and view all the answers

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

    <p>Tertiary sector</p> Signup and view all the answers

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

    <p>Persistent issues with poverty and inequality.</p> Signup and view all the answers

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

    <p>Underinvestment in new power sources</p> Signup and view all the answers

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

    <p>To facilitate domestic and international trade</p> Signup and view all the answers

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

    <p>It helps in understanding the effects of various sectors on economic growth and stability.</p> Signup and view all the answers

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

    <p>To address historical inequalities and promote equity</p> Signup and view all the answers

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

    <p>GDP includes only domestic expenditure, while GDE includes international trade.</p> Signup and view all the answers

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

    <p>To enhance economic competitiveness and growth</p> Signup and view all the answers

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

    <p>To improve public welfare through education, healthcare, and community amenities.</p> Signup and view all the answers

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

    <p>To provide essential raw materials and energy</p> Signup and view all the answers

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

    <p>It balances freedom of market operations with government oversight.</p> Signup and view all the answers

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

    <p>To reduce poverty and inequality</p> Signup and view all the answers

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

    <p>To enhance economic competitiveness and growth</p> Signup and view all the answers

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

    <p>To enhance economic growth and competitiveness</p> Signup and view all the answers

    What is the primary function of capital in economic growth?

    <p>To sustain production capabilities</p> 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?

    <p>Gross Domestic Product (GDP)</p> Signup and view all the answers

    What is the primary role of entrepreneurs in economic systems?

    <p>To manage businesses and take risks</p> Signup and view all the answers

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

    <p>Interest</p> Signup and view all the answers

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

    <p>To highlight the interdependence between different sectors and agents in the economic system</p> Signup and view all the answers

    What is the primary distinction between final and intermediate goods?

    <p>Final goods are consumed by the end user, while intermediate goods are used as inputs in the production of other goods</p> Signup and view all the answers

    What is the primary component of the circular flow diagram?

    <p>All of the above</p> Signup and view all the answers

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

    <p>All of the above</p> Signup and view all the answers

    What is the primary purpose of investment in capital goods?

    <p>To match growth in labor and manage depreciation</p> Signup and view all the answers

    What is the primary characteristic of entrepreneurship?

    <p>Risk-taking and innovation</p> Signup and view all the answers

    What is the primary function of the poverty line income?

    <p>To indicate the minimum income needed to cover basic needs</p> Signup and view all the answers

    Which of the following is a characteristic of money?

    <p>Divisibility</p> Signup and view all the answers

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

    <p>To implement monetary policy to control inflation</p> Signup and view all the answers

    What is the primary distinction between natural resources and labor?

    <p>One is a human effort, while the other is an environmental asset</p> Signup and view all the answers

    What is the purpose of micro-lending?

    <p>To provide small loans to individuals unable to access traditional bank financing</p> Signup and view all the answers

    What is a consequence of bank failures?

    <p>Losses for depositors and investors</p> Signup and view all the answers

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

    <p>Natural Resources</p> Signup and view all the answers

    What is the significance of stability in the banking system?

    <p>It supports economic growth and confidence</p> Signup and view all the answers

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

    <p>All of the above</p> Signup and view all the answers

    What is the difference between demand deposits and time deposits?

    <p>Demand deposits are available on-demand, while time deposits have a fixed term</p> Signup and view all the answers

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

    <p>Level of skills and education</p> Signup and view all the answers

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

    <p>To provide loans exceeding their cash reserves</p> Signup and view all the answers

    Which factor of production is inherently non-storable?

    <p>Labor</p> Signup and view all the answers

    What is the goal of the Millennium Development Goals?

    <p>To eradicate extreme poverty and hunger by 2015</p> Signup and view all the answers

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

    <p>Due to the time required for training</p> Signup and view all the answers

    What is the primary cause of poverty?

    <p>All of the above</p> Signup and view all the answers

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

    <p>Rent</p> Signup and view all the answers

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

    <p>Labor</p> Signup and view all the answers

    What is the primary source of wealth creation?

    <p>Savings from income not spent on consumption</p> Signup and view all the answers

    What is the primary goal of economic development?

    <p>To enhance the economic, social, and political welfare of a community</p> Signup and view all the answers

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

    <p>Gini Coefficient</p> Signup and view all the answers

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

    <p>To invest in directly productive assets and indirectly productive infrastructure</p> Signup and view all the answers

    What is the primary factor that directly impacts productive capacity?

    <p>Capital Investment</p> Signup and view all the answers

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

    <p>Dynamic and continuously evolving</p> Signup and view all the answers

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

    <p>Economic growth is an increase in GDP, while economic development is an improvement in the overall standard of living</p> Signup and view all the answers

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

    <p>It does not account for income distribution disparities</p> Signup and view all the answers

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

    <p>To enhance economic growth and development</p> Signup and view all the answers

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

    <p>To reduce poverty and inequality</p> Signup and view all the answers

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

    <p>To diversify goods and services</p> Signup and view all the answers

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

    <p>To influence economic stability and public services</p> Signup and view all the answers

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

    <p>It is essential for sustainable development</p> Signup and view all the answers

    What is the primary characteristic of developing countries?

    <p>Low productivity and inadequate infrastructure</p> Signup and view all the answers

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

    <p>Economic growth is a measure of output, while economic development is a measure of welfare</p> Signup and view all the answers

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

    <p>To measure life expectancy, education, and GDP per capita</p> Signup and view all the answers

    What is the primary goal of economic development?

    <p>To improve the overall standard of living</p> Signup and view all the answers

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

    <p>It has a positive impact on the standard of living</p> Signup and view all the answers

    Which of the following is a strategy for development?

    <p>Promoting entrepreneurship</p> Signup and view all the answers

    What is the definition of absolute poverty?

    <p>The inability to attain a minimum standard of living</p> Signup and view all the answers

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

    <p>GDP excludes income from abroad, while GNI includes it</p> Signup and view all the answers

    What is the primary characteristic of a mixed economy?

    <p>Combination of private and public sector involvement</p> Signup and view all the answers

    What is the primary advantage of a market economy?

    <p>Efficient production and innovation driven by profit motives</p> Signup and view all the answers

    What is the primary disadvantage of a centrally planned economy?

    <p>Lack of individual and corporate incentive to improve efficiency</p> Signup and view all the answers

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

    <p>To provide essential services and regulate the economy</p> 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?

    <p>To enhance growth, competitiveness, and employment</p> Signup and view all the answers

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

    <p>To promote economic growth and social welfare</p> Signup and view all the answers

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

    <p>It generates a significant portion of foreign exchange and contributes to GDP</p> Signup and view all the answers

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

    <p>It helps in understanding the effects of various sectors on economic growth and stability</p> Signup and view all the answers

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

    <p>It sums up all expenditures made on final goods and services</p> Signup and view all the answers

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

    <p>Transforming raw materials into finished goods</p> Signup and view all the answers

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

    <p>It reflects total investment in physical assets</p> Signup and view all the answers

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

    <p>It is the largest sector in developed economies</p> Signup and view all the answers

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

    <p>It reflects total domestic expenditure on goods and services</p> Signup and view all the answers

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

    <p>To facilitate domestic and international trade, boosting GDP and employment</p> Signup and view all the answers

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

    <p>Insufficient emphasis on renewable energy</p> Signup and view all the answers

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

    <p>It is responsible for the collection of taxes and redistribution of income</p> Signup and view all the answers

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

    <p>To promote economic empowerment and equity</p> Signup and view all the answers

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

    <p>They influence the country's economic growth and development</p> Signup and view all the answers

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

    <p>To enhance growth, competitiveness, and employment</p> Signup and view all the answers

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

    <p>To provide raw materials</p> Signup and view all the answers

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

    <p>It varies in skill level</p> Signup and view all the answers

    What is the typical form of remuneration associated with entrepreneurship?

    <p>Profit</p> Signup and view all the answers

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

    <p>All of the above</p> Signup and view all the answers

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

    <p>To facilitate production</p> Signup and view all the answers

    What is a key characteristic of natural resources?

    <p>They vary in availability and renewability</p> Signup and view all the answers

    What is the primary factor that affects labor supply?

    <p>All of the above</p> Signup and view all the answers

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

    <p>Level of education</p> Signup and view all the answers

    What is the primary function of capital in economic systems?

    <p>To mobilize resources and employ labor</p> Signup and view all the answers

    What is the primary difference between final and intermediate goods?

    <p>Intermediate goods are used in further production, while final goods are consumed by end-users</p> Signup and view all the answers

    What is the significance of the circular flow diagram?

    <p>It highlights the interdependence between different sectors and agents in the economic system</p> Signup and view all the answers

    What is the primary reward for entrepreneurship?

    <p>Profit</p> 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?

    <p>Consumption</p> Signup and view all the answers

    What is the primary role of entrepreneurs in economic systems?

    <p>To initiate and manage businesses, identifying new opportunities and innovatively combining production factors</p> 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?

    <p>Gross Domestic Product (GDP)</p> Signup and view all the answers

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

    <p>To collect taxes and redistribute income through spending and transfers</p> Signup and view all the answers

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

    <p>All of the above</p> Signup and view all the answers

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

    <p>Interest</p> Signup and view all the answers

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

    <p>To improve international competitiveness and enhance growth</p> Signup and view all the answers

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

    <p>Tertiary sector</p> Signup and view all the answers

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

    <p>They contribute significantly to GDP</p> Signup and view all the answers

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

    <p>Limited access to education and skills training</p> Signup and view all the answers

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

    <p>To facilitate domestic and international trade</p> Signup and view all the answers

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

    <p>Underinvestment in new power sources</p> Signup and view all the answers

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

    <p>It is the largest contributor to GDP</p> Signup and view all the answers

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

    <p>To promote economic empowerment for previously disadvantaged groups</p> Signup and view all the answers

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

    <p>They are essential for economic competitiveness</p> Signup and view all the answers

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

    <p>To collect taxes and redistribute income</p> Signup and view all the answers

    What is the primary function of money in an economy?

    <p>All technical functions of money</p> 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?

    <p>Fiat money</p> Signup and view all the answers

    What is the primary purpose of micro-lending?

    <p>To provide small loans to individuals unable to access traditional bank financing</p> Signup and view all the answers

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

    <p>To implement monetary policy</p> Signup and view all the answers

    What is the effect of bank failures on the economy?

    <p>Losses for depositors and investors</p> Signup and view all the answers

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

    <p>To reduce poverty and hunger</p> Signup and view all the answers

    What is the poverty gap index?

    <p>A measure of the average shortfall from the poverty line</p> Signup and view all the answers

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

    <p>To prevent predatory lending practices</p> Signup and view all the answers

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

    <p>To control the amount of money banks can lend</p> Signup and view all the answers

    What is the primary focus of the Millennium Development Goals?

    <p>To eradicate poverty and hunger</p> Signup and view all the answers

    What is the primary goal of economic development?

    <p>To enhance the economic, social, and political welfare of a society</p> Signup and view all the answers

    What is the primary source of wealth creation?

    <p>Savings</p> Signup and view all the answers

    What is the purpose of measuring the distribution of wealth?

    <p>To show the inequality of wealth distribution within a country</p> Signup and view all the answers

    What is the primary factor that directly impacts productive capacity?

    <p>Capital investment</p> Signup and view all the answers

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

    <p>It does not account for income distribution disparities</p> Signup and view all the answers

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

    <p>To create jobs and stimulate economic development</p> Signup and view all the answers

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

    <p>It typically improves the standard of living</p> Signup and view all the answers

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

    <p>They influence economic stability and public services</p> Signup and view all the answers

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

    <p>They are essential for sustainable development</p> Signup and view all the answers

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

    <p>Gini Coefficient</p> Signup and view all the answers

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

    <p>To create jobs and diversify goods and services</p> Signup and view all the answers

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

    <p>Local and culture-specific</p> Signup and view all the answers

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

    <p>Economic growth is an increase in GDP, while economic development is an improvement in standard of living</p> Signup and view all the answers

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

    <p>To restructure the economy to enable sustainable development</p> Signup and view all the answers

    What is the primary characteristic of developing countries?

    <p>Low standard of living and high population growth</p> Signup and view all the answers

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

    <p>To measure a country's development through factors like life expectancy, education, and GDP per capita</p> Signup and view all the answers

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

    <p>To stimulate growth through investing in productive assets and infrastructure</p> Signup and view all the answers

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

    <p>To stabilize the economy and promote growth and redistribution</p> Signup and view all the answers

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

    <p>It does not account for income inequality</p> Signup and view all the answers

    What is the primary factor that affects productive capacity?

    <p>Technological advancement</p> Signup and view all the answers

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

    <p>Expenditure Method</p> Signup and view all the answers

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

    <p>GDP plus net income from abroad</p> Signup and view all the answers

    What is the main characteristic of a mixed economy?

    <p>Coexistence of private and public sectors</p> Signup and view all the answers

    What is the primary advantage of a market economy?

    <p>Efficient production and innovation driven by profit motives</p> Signup and view all the answers

    What is the primary disadvantage of a centrally planned economy?

    <p>Lack of individual and corporate incentive to improve efficiency or innovate</p> Signup and view all the answers

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

    <p>Providing social services to improve public welfare</p> Signup and view all the answers

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

    <p>All of the above</p> Signup and view all the answers

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

    <p>Coexistence of private and public sectors</p> Signup and view all the answers

    What is the primary advantage of a mixed economy?

    <p>Balances freedom of market operations with government oversight</p> Signup and view all the answers

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

    <p>All of the above</p> Signup and view all the answers

    What is the purpose of the poverty line income?

    <p>To indicate the minimum income needed to cover basic needs</p> Signup and view all the answers

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

    <p>GDP excludes income from abroad, while GNI includes it</p> Signup and view all the answers

    What is the main function of the headcount index?

    <p>To measure the percentage of the population living below the poverty line</p> Signup and view all the answers

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

    <p>General Acceptance</p> Signup and view all the answers

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

    <p>To reflect total investment in physical assets for future production</p> Signup and view all the answers

    What type of money is backed by a physical commodity?

    <p>Commodity Money</p> Signup and view all the answers

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

    <p>Coexistence of private and public sectors</p> Signup and view all the answers

    What is the primary advantage of a market economy?

    <p>Efficient production and innovation driven by profit motives</p> Signup and view all the answers

    What is the purpose of micro-lending?

    <p>To provide small loans to individuals who cannot access traditional bank financing</p> Signup and view all the answers

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

    <p>To implement monetary policy to control inflation</p> Signup and view all the answers

    What is the primary disadvantage of a centrally planned economy?

    <p>Lack of individual and corporate incentive to improve efficiency or innovate</p> Signup and view all the answers

    What is the primary goal of economic development?

    <p>To improve the overall standard of living in a country</p> Signup and view all the answers

    What is the impact of bank failures on the economy?

    <p>It leads to losses for depositors and investors, and erosion of public trust</p> Signup and view all the answers

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

    <p>To provide social services and regulate crucial areas</p> Signup and view all the answers

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

    <p>It provides insights into how money and goods circulate within an economy</p> Signup and view all the answers

    What is a common characteristic of developing countries?

    <p>Dependence on industrial diversification</p> Signup and view all the answers

    Why is stability in the banking system important?

    <p>It supports economic growth and manages monetary policy effectively</p> Signup and view all the answers

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

    <p>To restructure the economy for sustainable development</p> Signup and view all the answers

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

    <p>Balances freedom of market operations with government oversight</p> Signup and view all the answers

    What is the purpose of reserve requirements?

    <p>To limit the amount of money banks can lend</p> Signup and view all the answers

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

    <p>Persistent issues with poverty and inequality</p> Signup and view all the answers

    What is the purpose of repo rate adjustments?

    <p>To influence lending rates across the banking sector</p> Signup and view all the answers

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

    <p>To address local health care needs and agricultural practices</p> Signup and view all the answers

    What is the definition of relative poverty?

    <p>Comparative lack within society, where individuals lack resources considered normal by societal standards</p> Signup and view all the answers

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

    <p>It helps in understanding the effects of various sectors on economic growth and stability</p> Signup and view all the answers

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

    <p>To measure a country's development through factors like life expectancy, education, and GDP per capita</p> Signup and view all the answers

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

    <p>To create jobs and diversify goods and services</p> Signup and view all the answers

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

    <p>They vary in availability and renewability</p> Signup and view all the answers

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

    <p>Natural Resources</p> Signup and view all the answers

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

    <p>Local and culture-specific</p> Signup and view all the answers

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

    <p>Level of skills and education</p> Signup and view all the answers

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

    <p>All of the above</p> Signup and view all the answers

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

    <p>To invest in both directly productive assets and indirectly productive infrastructure</p> Signup and view all the answers

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

    <p>It affects economic dynamics</p> Signup and view all the answers

    What is the primary form of remuneration associated with labor?

    <p>Wages</p> Signup and view all the answers

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

    <p>Their susceptibility to depletion</p> Signup and view all the answers

    Which factor of production is responsible for creating employment opportunities?

    <p>Natural Resources</p> Signup and view all the answers

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

    <p>Demand for the resource</p> Signup and view all the answers

    What is the primary focus of economic development?

    <p>Improving the standard of living of a society</p> Signup and view all the answers

    What is a characteristic of wealth?

    <p>The ability to generate income and potential for value appreciation or depreciation</p> Signup and view all the answers

    What is the purpose of the Lorenz Curve?

    <p>To illustrate the actual distribution of wealth across a population</p> Signup and view all the answers

    What is a factor that influences economic growth?

    <p>Capital investment, labor productivity, and technological advancements</p> Signup and view all the answers

    What is the significance of GDP per capita?

    <p>It compares economic performance relative to population size</p> Signup and view all the answers

    What is the primary reason for uneven wealth distribution?

    <p>All of the above</p> Signup and view all the answers

    What is the purpose of measuring the distribution of wealth?

    <p>To identify areas of inequality and implement policies for wealth redistribution</p> Signup and view all the answers

    What is the primary goal of economic development?

    <p>To enhance the economic welfare of a community</p> Signup and view all the answers

    What is the difference between economic growth and economic development?

    <p>Economic growth refers to an increase in output, while economic development refers to an increase in welfare</p> Signup and view all the answers

    What is the Gini Coefficient used for?

    <p>To measure wealth inequality</p> Signup and view all the answers

    What is the primary function of capital in economic growth?

    <p>To sustain production capabilities</p> Signup and view all the answers

    What is the difference between final and intermediate goods?

    <p>Final goods are consumed by end users, while intermediate goods are used as inputs in production</p> Signup and view all the answers

    What is the role of entrepreneurs in economic systems?

    <p>To initiate and manage businesses, identifying new opportunities and innovatively combining resources</p> Signup and view all the answers

    What is the purpose of the circular flow diagram?

    <p>To illustrate the economic transactions that occur between different sectors of the economy</p> Signup and view all the answers

    What is the significance of capital widening and deepening?

    <p>It affects productivity and economic output</p> Signup and view all the answers

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

    <p>Risk, liquidity, investment duration, capital demand, and funding supply</p> Signup and view all the answers

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

    <p>To collect taxes and redistribute income</p> Signup and view all the answers

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

    <p>It measures the total value of all final goods and services produced within a country's borders</p> Signup and view all the answers

    What is the primary purpose of investment in capital goods?

    <p>To match growth in labor and manage depreciation</p> Signup and view all the answers

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

    <p>It calculates the sum of value added at each stage of production</p> Signup and view all the answers

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

    <p>To enhance economic growth and competitiveness</p> Signup and view all the answers

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

    <p>Tertiary sector</p> Signup and view all the answers

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

    <p>Insufficient emphasis on renewable energy</p> Signup and view all the answers

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

    <p>Manufacturing and construction of finished goods</p> Signup and view all the answers

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

    <p>To distribute goods and services domestically</p> Signup and view all the answers

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

    <p>To improve access and equity for black South Africans in the economy</p> Signup and view all the answers

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

    <p>They enhance economic competitiveness and growth</p> Signup and view all the answers

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

    <p>To collect taxes and redistribute income</p> Signup and view all the answers

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

    <p>To produce high-quality, competitively priced goods</p> Signup and view all the answers

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

    <p>It generates employment and foreign exchange, contributing to GDP</p> Signup and view all the answers

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

    <p>It is inherently non-storable</p> Signup and view all the answers

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

    <p>Demand for the resource, climate, and geographic location</p> Signup and view all the answers

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

    <p>All of the above</p> Signup and view all the answers

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

    <p>Their renewability</p> Signup and view all the answers

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

    <p>The level of skills and education</p> Signup and view all the answers

    What is the primary form of remuneration associated with labor?

    <p>Wages</p> Signup and view all the answers

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

    <p>It drives economic growth and development</p> Signup and view all the answers

    What is the primary role of capital in economic development?

    <p>Providing the necessary infrastructure for production</p> Signup and view all the answers

    What is the primary method of calculating GDP?

    <p>Expenditure Method</p> Signup and view all the answers

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

    <p>Government involvement</p> Signup and view all the answers

    What is the primary advantage of a mixed economy?

    <p>Balanced individual and social welfare</p> Signup and view all the answers

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

    <p>Promoting economic growth</p> Signup and view all the answers

    What is the primary characteristic of a market economy?

    <p>Private ownership of resources</p> Signup and view all the answers

    What is the primary disadvantage of a centrally planned economy?

    <p>Lack of individual and corporate incentives</p> Signup and view all the answers

    What is the primary factor that determines wage levels?

    <p>All of the above</p> Signup and view all the answers

    What is the primary importance of understanding the circular flow?

    <p>Understanding the impact of various sectors on economic growth</p> Signup and view all the answers

    What is the primary role of entrepreneurs in economic systems?

    <p>Mobilizing resources and investing in capital</p> Signup and view all the answers

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

    <p>To evaluate the total economic activity</p> Signup and view all the answers

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

    <p>Investment in physical assets</p> Signup and view all the answers

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

    <p>Mitigates poverty and inequality</p> Signup and view all the answers

    What is the primary distinction between final and intermediate goods?

    <p>Final goods are consumed by the end user, while intermediate goods are used as inputs in the production of other goods</p> 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?

    <p>Government Expenditure (G)</p> Signup and view all the answers

    What is the primary distinction between GDP and GNI?

    <p>GNI includes net income from abroad</p> Signup and view all the answers

    What is the primary reward for entrepreneurship?

    <p>Profit</p> Signup and view all the answers

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

    <p>All of the above</p> Signup and view all the answers

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

    <p>To sum the value added at each stage of production</p> 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?

    <p>Consumption (C)</p> Signup and view all the answers

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

    <p>It sustains production capabilities</p> Signup and view all the answers

    What is the primary objective of economic development?

    <p>To enhance the economic, social, and political welfare of a community</p> 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?

    <p>To enhance growth, competitiveness, and employment</p> Signup and view all the answers

    What is a characteristic of wealth?

    <p>The ability to generate income</p> Signup and view all the answers

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

    <p>Provides essential raw materials and energy</p> Signup and view all the answers

    What is the purpose of measuring the distribution of wealth?

    <p>To show significant inequality within and across nations</p> Signup and view all the answers

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

    <p>Restrictions on job opportunities and training</p> Signup and view all the answers

    What is a factor that influences economic growth?

    <p>All of the above</p> Signup and view all the answers

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

    <p>It does not account for income distribution disparities within countries</p> Signup and view all the answers

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

    <p>Dominant contributor to GDP</p> Signup and view all the answers

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

    <p>Supports the marketing and distribution of goods</p> Signup and view all the answers

    What is the primary goal of economic development?

    <p>To enhance the standard of living of a society</p> Signup and view all the answers

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

    <p>Gini Coefficient</p> Signup and view all the answers

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

    <p>Insufficient emphasis on renewable energy</p> Signup and view all the answers

    What is the primary source of wealth creation?

    <p>Savings</p> Signup and view all the answers

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

    <p>Facilitates domestic and international trade</p> Signup and view all the answers

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

    <p>It improves the standard of living</p> Signup and view all the answers

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

    <p>To address historical inequalities and promote economic empowerment</p> Signup and view all the answers

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

    <p>To influence economic stability and public services</p> Signup and view all the answers

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

    <p>Collects taxes and redistributes income</p> Signup and view all the answers

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

    <p>Enhances economic competitiveness and growth</p> Signup and view all the answers

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

    <p>To add value to raw products</p> Signup and view all the answers

    Which of the following is a characteristic of developing countries?

    <p>Low standard of living</p> Signup and view all the answers

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

    <p>To measure life expectancy, education, and GDP per capita</p> Signup and view all the answers

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

    <p>To create jobs and diversify goods and services</p> Signup and view all the answers

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

    <p>Dynamic and continuously evolving</p> Signup and view all the answers

    What is the definition of relative poverty?

    <p>A comparative lack within society, where individuals lack resources considered normal by societal standards</p> Signup and view all the answers

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

    <p>To stimulate economic growth</p> Signup and view all the answers

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

    <p>Economic growth occurs without widespread benefits, while economic development is an improvement in the overall standard of living</p> Signup and view all the answers

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

    <p>To enable sustainable development by restructuring the economy</p> Signup and view all the answers

    What is the primary characteristic of developing countries' labor?

    <p>Outdated technology and insufficient capital</p> Signup and view all the answers

    What is the primary function of the poverty line income?

    <p>To indicate the minimum income needed to cover basic needs</p> Signup and view all the answers

    Which of the following is a characteristic of money?

    <p>General acceptance</p> Signup and view all the answers

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

    <p>To implement monetary policy and maintain financial stability</p> Signup and view all the answers

    What is the consequence of bank failures?

    <p>Job losses for employees and erosion of public trust</p> Signup and view all the answers

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

    <p>To alleviate poverty and provide basic needs</p> Signup and view all the answers

    What is the role of banks in the economy?

    <p>To create new money through credit</p> Signup and view all the answers

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

    <p>To provide small loans to individuals who cannot access traditional bank financing</p> Signup and view all the answers

    What is the effect of poverty on the economy?

    <p>Perpetual cycle of poverty, affecting health, crime rates, and economic demand</p> Signup and view all the answers

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

    <p>It supports economic growth and manages the country's monetary policy effectively</p> Signup and view all the answers

    What is the primary focus of the Millennium Development Goals?

    <p>To alleviate poverty and hunger</p> Signup and view all the answers

    What are the primary factors of production?

    <p>Natural Resources, Labor, Capital, and Entrepreneurship</p> Signup and view all the answers

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

    <p>Generating employment opportunities and creating income for resource owners</p> Signup and view all the answers

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

    <p>Labor is non-storable and supply cannot be rapidly adjusted</p> Signup and view all the answers

    What is the primary form of remuneration associated with labor?

    <p>Wages and benefits</p> Signup and view all the answers

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

    <p>Level of education</p> Signup and view all the answers

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

    <p>All of the above</p> Signup and view all the answers

    What is the primary importance of entrepreneurship in economic development?

    <p>Driving economic development and growth</p> Signup and view all the answers

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

    <p>Uneven distribution across regions</p> Signup and view all the answers

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

    <p>To stimulate economic growth by investing in productive assets and infrastructure</p> Signup and view all the answers

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

    <p>Expenditure Method</p> Signup and view all the answers

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

    <p>An improvement in the overall standard of living</p> Signup and view all the answers

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

    <p>To measure a country's development through factors like life expectancy, education, and GDP per capita</p> Signup and view all the answers

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

    <p>GDP excludes income from abroad, while GNI includes it</p> Signup and view all the answers

    What is the primary characteristic of a mixed economy?

    <p>Coexistence of private and public sectors</p> Signup and view all the answers

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

    <p>To create jobs and diversify goods and services</p> Signup and view all the answers

    What is a common characteristic of developing countries?

    <p>Low productivity due to outdated technology</p> Signup and view all the answers

    What is the primary advantage of a market economy?

    <p>Efficient production and innovation driven by profit motives</p> Signup and view all the answers

    What is the primary disadvantage of a centrally planned economy?

    <p>Lack of individual and corporate incentive to improve efficiency or innovate</p> Signup and view all the answers

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

    <p>To address local healthcare needs and environmental management</p> Signup and view all the answers

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

    <p>To restructure the economy to enable sustainable development</p> Signup and view all the answers

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

    <p>To enhance global market position</p> Signup and view all the answers

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

    <p>Providing social services to improve public welfare</p> Signup and view all the answers

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

    <p>It helps in understanding the effects of various sectors on economic growth and stability</p> Signup and view all the answers

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

    <p>Produces consumer and capital goods</p> Signup and view all the answers

    What is the definition of absolute poverty?

    <p>The inability to attain a minimum standard of living</p> Signup and view all the answers

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

    <p>Enhancing the quality and value of natural resources through beneficiation processes</p> Signup and view all the answers

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

    <p>It reflects total investment in physical assets that will be used in future production</p> Signup and view all the answers

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

    <p>Underinvestment in new power sources</p> Signup and view all the answers

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

    <p>It promotes economic growth while aiming to improve social welfare</p> Signup and view all the answers

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

    <p>Providing services and driving economic growth</p> Signup and view all the answers

    What is the primary goal of economic development?

    <p>To improve the overall standard of living</p> Signup and view all the answers

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

    <p>Persistent issues with poverty and inequality</p> Signup and view all the answers

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

    <p>To enhance growth, competitiveness, and employment</p> Signup and view all the answers

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

    <p>Facilitates domestic and international trade, boosting GDP and employment</p> Signup and view all the answers

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

    <p>Apartheid era</p> Signup and view all the answers

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

    <p>Service-oriented industries</p> Signup and view all the answers

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

    <p>Provides essential raw materials and energy</p> Signup and view all the answers

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

    <p>Facilitates domestic and international trade, boosting GDP and employment</p> Signup and view all the answers

    What is the primary goal of economic development?

    <p>To enhance the economic, social, and political welfare of a community</p> Signup and view all the answers

    What is the primary source of wealth creation?

    <p>Savings and investments</p> Signup and view all the answers

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

    <p>Gini Coefficient</p> Signup and view all the answers

    What is the primary factor that directly impacts productive capacity?

    <p>Capital investment</p> Signup and view all the answers

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

    <p>It does not account for income distribution disparities</p> Signup and view all the answers

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

    <p>It typically improves the standard of living</p> Signup and view all the answers

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

    <p>They influence economic stability and public services</p> Signup and view all the answers

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

    <p>They are essential for sustainable development</p> Signup and view all the answers

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

    <p>Economic growth is an increase in output, while economic development is an improvement in standard of living</p> Signup and view all the answers

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

    <p>To promote job creation and economic growth</p> Signup and view all the answers

    What is the primary purpose of the poverty line income?

    <p>To indicate the minimum income needed to cover basic needs</p> Signup and view all the answers

    What is the primary function of money in an economy?

    <p>To facilitate the buying and selling of goods and services</p> Signup and view all the answers

    What is the primary characteristic of fiat money?

    <p>It is not backed by a physical commodity</p> Signup and view all the answers

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

    <p>To implement monetary policy</p> Signup and view all the answers

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

    <p>Losses for depositors and investors</p> Signup and view all the answers

    What is the primary purpose of micro-lending?

    <p>To provide small loans to individuals unable to access traditional bank financing</p> Signup and view all the answers

    What is the primary advantage of a stable banking system?

    <p>It promotes confidence and supports economic growth</p> Signup and view all the answers

    What is the primary goal of the Millennium Development Goals?

    <p>To eradicate extreme poverty and hunger by 2015</p> Signup and view all the answers

    What is the primary characteristic of commodity money?

    <p>It is a physical good used as money</p> Signup and view all the answers

    What is the primary function of the poverty gap index?

    <p>To calculate the average shortfall from the poverty line</p> Signup and view all the answers

    What is the primary function of capital in an economy?

    <p>To sustain production capabilities and drive economic growth</p> Signup and view all the answers

    What is the primary role of entrepreneurs in economic systems?

    <p>To mobilize resources, invest in capital, and employ labor</p> Signup and view all the answers

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

    <p>To avoid double-counting in calculating GDP</p> Signup and view all the answers

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

    <p>All of the above</p> 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?

    <p>Gross Domestic Product (GDP)</p> Signup and view all the answers

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

    <p>All of the above</p> Signup and view all the answers

    What is the primary characteristic of entrepreneurship?

    <p>All of the above</p> Signup and view all the answers

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

    <p>To collect taxes and redistribute income through spending and transfers</p> Signup and view all the answers

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

    <p>Spending by businesses on capital goods</p> Signup and view all the answers

    What is the primary purpose of calculating GDP?

    <p>To evaluate the total economic activity of a country</p> Signup and view all the answers

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