Nov P1 Hard

Which sector in the circular flow model provides labor and resources, and receives income that is used for consumption, savings, and taxes?

Households

What type of flows involve the movement of goods and services in the circular flow model?

Real Flows

Which market facilitates the trading of currencies necessary for international trade?

Foreign Exchange Market

What is the primary function of the government sector in the circular flow model?

To collect taxes and inject spending into the economy Signup and view all the answers

What is the term for the total economic output at market prices?

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

Which sector in the circular flow model involves trade activities, where exports add to the economic flow and imports lead to outflows of currency?

Foreign Sector Signup and view all the answers

What is the term for the extent to which additional spending can amplify economic activity?

Multiplier Effect Signup and view all the answers

Which market deals in resources like labor and capital?

Factor Market Signup and view all the answers

What is the primary difference between Gross National Income and other income measures?

GNI accounts for income earned by a country's residents, adjusting for income received from abroad Signup and view all the answers

What is the main focus of the Two-Sector Model in the Multiplier Effect?

Household and firm interactions Signup and view all the answers

What is the formula for the multiplier in a simple two-sector model?

k = 1 / (1 - MPC) Signup and view all the answers

What is the characteristic of the expansion phase of a business cycle?

Economic indicators show significant growth Signup and view all the answers

What is the term for the highest point of economic activity in a business cycle?

Peak Signup and view all the answers

What is the primary factor influencing business cycles according to the Keynesian Theory?

Changes in aggregate demand Signup and view all the answers

What is the primary goal of monetary policy in stabilizing economic activity?

To curb inflation during booms Signup and view all the answers

What is the term for the lowest point of a business cycle, marking the end of a recession?

Trough Signup and view all the answers

What is the primary focus of the Schumpeterian Theory in explaining business cycles?

The role of technological innovation Signup and view all the answers

What is the primary tool used by governments to stabilize economic activity during downturns?

Fiscal policy Signup and view all the answers

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

To meet basic needs, develop human resources, and build the economy Signup and view all the answers

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

Economic growth refers to an increase in real GDP, while economic development encompasses improvements in standards of living Signup and view all the answers

Which of the following is an example of a supply-side approach to economic growth?

Improving the quality of the labor force through education and training Signup and view all the answers

What is the main objective of the New Growth Path (NGP) in South Africa?

To focus on job creation and identify job drivers like infrastructure and agriculture Signup and view all the answers

What is the primary characteristic of the North/South divide?

A significant disparity in income levels and economic stability between developed and developing countries Signup and view all the answers

What is the primary goal of directing government spending towards public goods and services?

To encourage economic growth and stability Signup and view all the answers

Which of the following is an example of an export promotion strategy?

Supporting domestic industries to increase their exports Signup and view all the answers

What is the primary focus of the Accelerated and Shared Growth Initiative of South Africa (Asgi-SA)?

To halve unemployment and poverty by improving average economic growth Signup and view all the answers

What is the Laffer Curve primarily used to illustrate?

The optimal tax rate that maximizes revenue without discouraging economic activity Signup and view all the answers

What is a potential consequence of administered prices?

Shortages or surpluses, depending on the price level Signup and view all the answers

What is the main objective of industrial policies in South Africa?

To increase industrial activity, diversify the economy, and enhance regional development Signup and view all the answers

What is the primary difference between the demand-side and supply-side approaches to economic growth?

Demand-side approaches focus on increasing government expenditure, while supply-side approaches focus on improving productivity Signup and view all the answers

What is the primary argument of the Infant Industry Argument in favor of protectionism?

To protect emerging domestic industries that are not yet competitive enough to withstand international competition Signup and view all the answers

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

To promote market-led growth, fiscal and monetary discipline, and enhance investor confidence Signup and view all the answers

What is a potential benefit of free trade, according to the concept of specialization?

Nations can focus on the production of goods for which they have a comparative advantage Signup and view all the answers

What is the primary goal of South Africa's export promotion policies?

To increase participation in the global market Signup and view all the answers

What is a potential drawback of excessive bureaucracy in the public sector?

Stifling innovation and responsiveness Signup and view all the answers

What is the primary goal of South Africa's import substitution policies?

To encourage local production of goods that were previously imported Signup and view all the answers

What is a potential consequence of information failure in the public sector?

Inefficient outcomes due to incomplete or inaccurate information Signup and view all the answers

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

To manage resources and provide services that are not suitable for private sector delivery Signup and view all the answers

What is the primary purpose of the Producer Price Index (PPI)?

To reflect the average movement of selling prices from domestic production over time Signup and view all the answers

What does the Employment Rate measure?

The proportion of the Economically Active Population (EAP) that is employed Signup and view all the answers

What is the term for the value of the South African rand against other currencies?

Exchange Rate Signup and view all the answers

Which indicator measures the overall health and longevity of the population?

Life Expectancy Signup and view all the answers

What is the purpose of the Repo Rate?

To set the interest rate at which the South African Reserve Bank lends money to commercial banks Signup and view all the answers

What do the M1, M2, and M3 aggregates represent?

Different aggregates of currency in circulation and bank deposits, reflecting the liquidity available in the economy Signup and view all the answers

What is the purpose of International Comparisons?

To compare South Africa's performance with that of other countries, highlighting areas of strength and those requiring improvement Signup and view all the answers

What do Infant and Under-5 Mortality Rates indicate?

The effectiveness of healthcare systems and the health environment Signup and view all the answers

What is the purpose of the Economically Active Population (EAP) indicator?

To represent all persons within the working age group available to supply labor for production Signup and view all the answers

What do social indicators, such as Education and Health, measure?

The overall well-being of a population Signup and view all the answers

What is the primary goal of the National Industrial Policy Framework (NIPF) in South Africa?

To promote economic diversification and reduce dependence on traditional sectors Signup and view all the answers

What is the main objective of the Industrial Policy Action Plans (IPAP) in South Africa?

To implement specific actions to achieve the goals of the NIPF Signup and view all the answers

Which of the following is a key aspect of South Africa's industrial policies that aligns with international best practices?

Prioritizing sustainable industrial practices Signup and view all the answers

What is the primary purpose of Spatial Development Initiatives (SDIs) in South Africa?

To target underdeveloped areas for infrastructure and industrial development Signup and view all the answers

What is a key challenge facing South Africa's industrial policies that needs to be addressed?

Implementation gaps between policy goals and actual outcomes Signup and view all the answers

Which of the following is an indicator of the effectiveness of South Africa's industrial strategies?

GDP growth Signup and view all the answers

What is the primary goal of the National Research and Development Strategy (NRDS) in South Africa?

To boost innovation across industries Signup and view all the answers

Which of the following is a key aspect of South Africa's industrial policies that addresses regional disparities?

Spatial Development Initiatives (SDIs) Signup and view all the answers

What is the primary objective of the Integrated Manufacturing Strategy (IMS) in South Africa?

To enhance competitiveness in the manufacturing sector Signup and view all the answers

Which of the following is a key challenge facing South Africa's industrial policies that affects the workforce?

Bridging the skills gap in the workforce to meet the demands of new and evolving industries Signup and view all the answers

What is the primary objective of the New Economic Paradigm?

To smooth out the volatility in business cycles and achieve stable growth Signup and view all the answers

Which type of indicator confirms trends that are already in process?

Lagging Indicator Signup and view all the answers

What is the primary role of Provincial Governments?

Managing regional issues Signup and view all the answers

What is a key challenge faced by the public sector?

Inefficiency due to lack of clear performance metrics Signup and view all the answers

What is the primary objective of pricing policy in the public sector?

To fulfill social responsibilities Signup and view all the answers

What is a key objective of the public sector?

Promoting sustainable growth Signup and view all the answers

What is the Medium-Term Expenditure Framework (MTEF) used for?

To plan over a three-year period Signup and view all the answers

What is a fiscal policy instrument used to manage economic activity?

Taxation Signup and view all the answers

What is a challenge faced by State-Owned Enterprises (SOEs)?

Lack of competition and accountability Signup and view all the answers

What is the primary role of Local Governments?

Tackling community-specific matters Signup and view all the answers

What is the primary function of the financial market in the circular flow model?

Flow of money for goods and services Signup and view all the answers

What is the term for the total economic output at market prices in a country?

Gross Domestic Product Signup and view all the answers

Which sector in the circular flow model injects spending into the economy through public services and infrastructure?

Government Signup and view all the answers

What type of flows involve the movement of goods and services in the circular flow model?

Real Flows Signup and view all the answers

Which market facilitates the exchange of resources like labor and capital?

Factor Market Signup and view all the answers

What is the term for the extent to which additional spending can amplify economic activity?

Multiplier Effect Signup and view all the answers

Which sector in the circular flow model involves trade activities, where exports add to the economic flow and imports lead to outflows of currency?

Foreign Sector Signup and view all the answers

What does the circular flow model illustrate?

The movement of money and goods across different sectors of the economy Signup and view all the answers

What is the primary objective of government spending directed towards public goods and services?

To promote economic growth and stability Signup and view all the answers

What is the Laffer Curve primarily used to illustrate?

The relationship between tax rates and tax revenue Signup and view all the answers

What is the main argument of the Infant Industry Argument in favor of protectionism?

To protect domestic industries from foreign competition Signup and view all the answers

What is a potential consequence of administered prices in the public sector?

Shortages or surpluses, depending on whether prices are set below or above market equilibrium Signup and view all the answers

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

To manage resources and provide services not suitable for private sector delivery Signup and view all the answers

What is the primary goal of South Africa's import substitution policies?

To reduce dependency on imports by supporting local industries Signup and view all the answers

What is a potential drawback of excessive bureaucracy in the public sector?

Stifling innovation and responsiveness Signup and view all the answers

What is the primary goal of South Africa's export promotion policies?

To promote economic growth through exports Signup and view all the answers

What is a potential consequence of information failure in the public sector?

Inefficient outcomes due to incomplete or inaccurate information Signup and view all the answers

What is the primary benefit of free trade, according to the concept of specialization?

Increased economic efficiency through specialization Signup and view all the answers

What is the primary objective of the New Economic Paradigm?

To smooth out the volatility in business cycles and achieve stable growth Signup and view all the answers

What is the primary difference between Gross National Income and other income measures?

GNI accounts for all income earned by a country's residents, while other income measures do not. Signup and view all the answers

Which of the following models includes government and foreign transactions in the multiplier effect?

Four-Sector Model Signup and view all the answers

Which of the following is an example of a lagging indicator?

Unemployment rates Signup and view all the answers

What is the primary characteristic of the contraction phase of a business cycle?

Decreasing economic indicators, such as GDP and employment Signup and view all the answers

What is the primary role of the public sector in providing essential services?

To provide structure and essential services not driven by profit Signup and view all the answers

According to the Schumpeterian Theory, what is the primary cause of business cycles?

Technological innovations and their diffusion Signup and view all the answers

What is the primary challenge faced by the public sector in terms of efficiency?

Lack of clear performance metrics and accountability Signup and view all the answers

What is the primary objective of the Medium-Term Expenditure Framework (MTEF)?

To plan and allocate resources over a three-year period Signup and view all the answers

What is the primary goal of fiscal policy during times of economic downturn?

To increase government spending and reduce taxes Signup and view all the answers

What is the primary goal of fiscal policy in terms of taxation?

To manage economic activity through adjusting tax rates Signup and view all the answers

What is the formula for the multiplier in a simple two-sector model?

k = 1 / (1 - MPC) Signup and view all the answers

What is the primary focus of the Keynesian Theory in explaining business cycles?

Changes in aggregate demand and collective behavior of consumers and businesses Signup and view all the answers

What is the primary purpose of the Laffer Curve?

To illustrate the relationship between economic growth and taxation Signup and view all the answers

What is the primary goal of monetary policy in stabilizing economic activity?

To stabilize the price level and control inflation Signup and view all the answers

What is the primary challenge faced by State-Owned Enterprises (SOEs)?

Lack of competition and accountability Signup and view all the answers

What is the primary goal of the public sector in terms of income distribution?

To reduce income inequality Signup and view all the answers

What is the term for the lowest point of a business cycle, marking the end of a recession?

Trough Signup and view all the answers

What is the primary factor influencing business cycles according to the Classical and Neoclassical Theories?

External shocks and normal market processes Signup and view all the answers

What is the primary focus of forecasting business cycles?

To understand the phases and factors influencing business cycles Signup and view all the answers

Which of the following is NOT a justification for South Africa's industrial policies?

Reducing Inequality Signup and view all the answers

What is the primary focus of the National Research and Development Strategy (NRDS)?

Boosting innovation across industries Signup and view all the answers

What is the main objective of the Integrated Manufacturing Strategy (IMS)?

Enhancing competitiveness in the manufacturing sector Signup and view all the answers

What is the primary goal of the Special Economic Zones (SEZs) in South Africa?

Attracting businesses and stimulating economic activities Signup and view all the answers

What is the primary focus of South Africa's industrial strategies in terms of alignment with international best practices?

Governance and Transparency Signup and view all the answers

What is the primary goal of the Spatial Development Initiatives (SDIs) in South Africa?

Reducing economic disparities between regions Signup and view all the answers

What is the primary focus of evaluating South Africa's industrial strategies?

All of the above Signup and view all the answers

What is a challenge that needs to be addressed to enhance the effectiveness of South Africa's industrial policies?

All of the above Signup and view all the answers

What is the primary goal of the National Industrial Policy Framework (NIPF) in South Africa?

Guiding the overall industrial strategy of South Africa Signup and view all the answers

What is the primary focus of the Industrial Policy Action Plans (IPAP) in South Africa?

Detailing specific actions to implement the NIPF Signup and view all the answers

Which of the following approaches to economic growth focuses on increasing government expenditure and redistributing income to enhance consumption among lower-income earners?

Demand-side approach Signup and view all the answers

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

To reduce poverty and inequality Signup and view all the answers

Which of the following is a characteristic of the North/South divide?

Large disparities in income levels and economic stability between developed and developing countries Signup and view all the answers

What is the primary goal of the Accelerated and Shared Growth Initiative of South Africa (Asgi-SA)?

To halve unemployment and poverty by improving average economic growth Signup and view all the answers

Which of the following is an example of a supply-side approach to economic growth?

Improving the quality of the labor force Signup and view all the answers

What is the primary goal of industrial policies in South Africa?

To diversify the economy and enhance regional development Signup and view all the answers

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

Economic growth focuses on increasing real GDP, while economic development focuses on improving standards of living Signup and view all the answers

Which of the following is an example of an export promotion strategy?

Supporting domestic industries to increase their exports Signup and view all the answers

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

To promote economic growth through market-led strategies Signup and view all the answers

What is the primary goal of the New Growth Path (NGP) in South Africa?

To focus on job creation and identifying job drivers like infrastructure and agriculture Signup and view all the answers

What is the primary function of the Producer Price Index (PPI)?

Reflecting the average movement of selling prices from domestic production over time Signup and view all the answers

What is the purpose of the Economically Active Population (EAP) indicator?

To represent all persons within the working age group available to supply labor for production Signup and view all the answers

What is the primary focus of International Comparisons?

To gauge South Africa’s progress and alignment with global standards Signup and view all the answers

What is the purpose of the Repo Rate?

To set the rate at which the South African Reserve Bank lends money to commercial banks Signup and view all the answers

What do Infant and Under-5 Mortality Rates indicate?

The effectiveness of healthcare systems and the overall health environment Signup and view all the answers

What is the primary purpose of the M1, M2, and M3 aggregates?

To measure the liquidity available in the economy Signup and view all the answers

What is the primary goal of Policy Formulation?

To identify areas needing intervention and evaluate the impact of current policies Signup and view all the answers

What is the primary focus of Education as a social indicator?

To impact future workforce skills and economic growth Signup and view all the answers

What is the primary purpose of the Exchange Rate?

To influence the value of the South African rand against other currencies Signup and view all the answers

What is the primary goal of Investment Decisions?

To assess the economic stability and growth potential of South Africa Signup and view all the answers

What is the primary function of the foreign sector in the circular flow model?

To engage in export and import activities, influencing the economic flow Signup and view all the answers

Which market facilitates the exchange of resources like labor and capital?

Factor Market Signup and view all the answers

What is the term for the total economic output at market prices?

Gross Domestic Product Signup and view all the answers

What is the multiplier effect capturing in the circular flow model?

The extent to which additional spending can amplify economic activity Signup and view all the answers

What is the primary function of the government sector in the circular flow model?

To inject spending into the economy through public services and infrastructure Signup and view all the answers

What type of flows involve the exchange of goods and services in the circular flow model?

Real Flows Signup and view all the answers

Which sector provides labor and resources, and receives income used for consumption, savings, and taxes?

Households Signup and view all the answers

What is the purpose of the financial market in the circular flow model?

To manage the flow of money and resources within the economy Signup and view all the answers

Which of the following is a feature of the contraction phase of a business cycle?

Reduced factory production Signup and view all the answers

What is the primary goal of fiscal policy in stabilizing economic activity?

To stimulate economic growth through increased government spending and reduced taxes Signup and view all the answers

Which of the following theories suggests that business cycles are driven by changes in aggregate demand?

Keynesian Theory Signup and view all the answers

What is the term for the marginal propensity to consume in the multiplier formula?

MPC Signup and view all the answers

Which of the following is an example of an endogenous factor influencing business cycles?

Changes in consumer confidence Signup and view all the answers

What is the term for the highest point of economic activity in a business cycle?

Peak Signup and view all the answers

Which of the following is a characteristic of the expansion phase of a business cycle?

Increased factory production Signup and view all the answers

What is the primary focus of the Schumpeterian Theory in explaining business cycles?

The role of technological innovation Signup and view all the answers

Which of the following is a feature of the multiplier effect?

It reveals how initial increases in spending lead to a more significant overall increase in economic output Signup and view all the answers

What is the term for the lowest point of a business cycle, marking the end of a recession?

Trough Signup and view all the answers

What is the primary argument in favor of protectionism according to the National Security argument?

To ensure the self-sufficiency of crucial industries vital for national security Signup and view all the answers

What is the primary benefit of free trade, according to the concept of specialization?

Nations can focus on the production of goods for which they have a comparative advantage Signup and view all the answers

What is the primary goal of South Africa's industrial policies?

To promote economic diversification and job creation Signup and view all the answers

What is the primary goal of directing government spending towards public goods and services?

To promote economic growth and stability Signup and view all the answers

What is the primary consequence of information failure in the public sector?

Inefficient outcomes Signup and view all the answers

What is the main objective of the National Research and Development Strategy (NRDS)?

To boost innovation across industries Signup and view all the answers

What is the primary purpose of the Laffer Curve?

To illustrate the relationship between tax rates and government revenue Signup and view all the answers

What is the primary goal of the Integrated Manufacturing Strategy (IMS)?

To enhance competitiveness in the manufacturing sector Signup and view all the answers

What is the primary goal of South Africa's import substitution policies?

To encourage local production of goods that were previously imported Signup and view all the answers

What is the primary goal of Special Economic Zones (SEZs)?

To offer incentives to attract businesses and stimulate economic activities Signup and view all the answers

What is the primary goal of the Industrial Policy Action Plans (IPAP)?

To detail specific actions to implement the National Industrial Policy Framework Signup and view all the answers

What is the primary drawback of excessive bureaucracy in the public sector?

Stifling innovation and responsiveness Signup and view all the answers

What is the primary focus of South Africa's industrial strategies?

To align with international best practices through governance and transparency Signup and view all the answers

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

To provide goods and services that are not suitable for private sector delivery Signup and view all the answers

What is the primary consequence of administered prices?

Shortages or surpluses, depending on whether prices are set below or above market equilibrium Signup and view all the answers

What is the primary goal of regional development initiatives in South Africa?

To reduce economic disparities between regions Signup and view all the answers

What is the primary goal of South Africa's export promotion policies?

To encourage local firms to export their goods and increase participation in the global market Signup and view all the answers

What is the primary challenge facing South Africa's industrial policies?

All of the above Signup and view all the answers

What is the primary goal of evaluating South Africa's industrial strategies?

To determine the impact on GDP growth, employment, investment levels, and technological advancements Signup and view all the answers

What is the primary benefit of South Africa's industrial policies?

Economic diversification, job creation, and enhanced competitiveness Signup and view all the answers

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

Meeting basic needs, developing human resources, and building the economy Signup and view all the answers

Which of the following approaches to economic growth focuses on increasing industrial activity, diversifying the economy, and enhancing regional development?

Industrial development policies Signup and view all the answers

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

Aiming at market-led growth, fiscal and monetary discipline, and enhancing investor confidence Signup and view all the answers

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

Economic growth refers to an increase in real GDP, while economic development refers to improvements in standards of living Signup and view all the answers

Which of the following is an example of a supply-side approach to economic growth?

Improving the quality of the labor force through education and training Signup and view all the answers

What is the primary characteristic of the North/South divide?

A significant disparity exists between the developed 'North' and the developing 'South' in terms of income levels, economic stability, and access to resources Signup and view all the answers

What is the primary goal of the Accelerated and Shared Growth Initiative of South Africa (Asgi-SA)?

Targeting halving unemployment and poverty by improving average economic growth Signup and view all the answers

What is the primary focus of the New Growth Path (NGP) in South Africa?

Focusing on job creation and identifying job drivers like infrastructure and agriculture Signup and view all the answers

What is the primary goal of South Africa's industrial policies?

Increasing industrial activity, diversifying the economy, and enhancing regional development Signup and view all the answers

Which of the following is an example of a demand-side approach to economic growth?

Increasing government expenditure on public goods and services Signup and view all the answers

What is the primary objective of the New Economic Paradigm in achieving stable growth?

To smooth out the volatility in business cycles and achieve stable growth Signup and view all the answers

What type of economic indicators confirm trends that are already in process?

Lagging indicators Signup and view all the answers

What is the primary focus of supply-side policies?

Increasing productivity and efficiency through technological advancements and regulatory reforms Signup and view all the answers

What is the primary role of State-Owned Enterprises (SOEs)?

To operate in the public interest and manage resources and services Signup and view all the answers

What is a common challenge faced by the public sector?

Inefficiency due to lack of clear performance metrics and accountability Signup and view all the answers

What is the primary objective of the Medium-Term Expenditure Framework (MTEF)?

To plan public sector expenditure over a three-year period Signup and view all the answers

What is the primary focus of fiscal policy instruments?

Adjusting tax rates to manage economic activity Signup and view all the answers

What is the primary goal of understanding and analyzing business cycles?

To capitalize on periods of economic growth and mitigate the adverse effects of downturns Signup and view all the answers

What is the primary objective of the public sector?

To provide structure and essential services that are not profit-driven Signup and view all the answers

What is the primary focus of the Laffer Curve?

To illustrate the relationship between taxation and economic growth Signup and view all the answers

Which of the following indicators is used to track changes in population size and its impact on demand for goods and services?

Population Growth Signup and view all the answers

What is the primary purpose of the Terms of Trade indicator?

To compare the rate of export prices to import prices Signup and view all the answers

Which indicator is used to evaluate the government's ability to provide adequate housing?

Housing Development Signup and view all the answers

What is the primary purpose of the Producer Price Index (PPI)?

To reflect the average movement of selling prices from domestic production Signup and view all the answers

Which indicator measures the proportion of the Economically Active Population (EAP) that is employed?

Employment Rate Signup and view all the answers

What is the primary purpose of International Comparisons?

To gauge South Africa's progress and alignment with global standards Signup and view all the answers

Which indicator reflects the government's commitment to improving education?

Public Spending on Education Signup and view all the answers

What is the primary purpose of the Repo Rate?

To influence other interest rates across the economy Signup and view all the answers

Which indicator measures the percentage of the labor force that is unemployed but actively seeking employment?

Unemployment Rate Signup and view all the answers

What is the primary purpose of the M1, M2, and M3 aggregates?

To reflect the liquidity available in the economy Signup and view all the answers

What is the primary role of the foreign sector in the circular flow model?

To facilitate international trade activities, including exports and imports Signup and view all the answers

Which of the following markets deals in resources like labor and capital?

Factor Market Signup and view all the answers

What is the term for the total economic output at market prices?

Gross Domestic Product Signup and view all the answers

What is the term for the extent to which additional spending can amplify economic activity?

Mutliplier Effect Signup and view all the answers

Which sector in the circular flow model utilizes labor and resources to produce goods and services?

Firms Signup and view all the answers

What is the primary function of the government sector in the circular flow model?

To collect taxes and inject spending into the economy Signup and view all the answers

What is the primary difference between real flows and money flows in the circular flow model?

Real flows involve the movement of goods and services, while money flows involve financial transactions. Signup and view all the answers

What is the primary purpose of the markets in the circular flow model?

To facilitate the exchange of goods and services among households, firms, government, and foreign sector Signup and view all the answers

What is the primary reason why the Multiplier Effect is significant in understanding economic output?

It reveals the extent to which additional spending can amplify economic activity Signup and view all the answers

Which of the following is a characteristic of the contraction phase of a business cycle?

Businesses start to slow down production and reduce workforce Signup and view all the answers

What is the primary goal of the New Economic Paradigm?

To smooth out the volatility in business cycles and achieve stable growth Signup and view all the answers

What type of economic indicator confirms trends that are already in process?

Lagging indicators Signup and view all the answers

What is the primary goal of directing government spending towards public goods and services?

To promote social welfare and stability Signup and view all the answers

What is the primary role of Fiscal Policy in stabilizing economic activity?

To influence aggregate demand through government spending and taxation Signup and view all the answers

What is the primary argument of the Infant Industry Argument in favor of protectionism?

To protect emerging domestic industries from foreign competition Signup and view all the answers

What is the primary role of the public sector?

To provide essential services that are not profit-driven Signup and view all the answers

Which of the following is an example of an endogenous factor influencing business cycles?

Changes in consumer confidence and technological innovations Signup and view all the answers

What is the primary characteristic of free trade?

Promoting the unrestricted exchange of goods and services across borders Signup and view all the answers

What is the primary objective of fiscal policy instruments?

To regulate aggregate demand Signup and view all the answers

What is the primary focus of the Classical and Neoclassical Theories of business cycles?

The influence of external shocks and normal market processes Signup and view all the answers

Which of the following is a critical point in a business cycle?

The peak, which marks the highest point of economic activity Signup and view all the answers

What is the primary challenge facing the public sector?

Inefficiency due to lack of clear performance metrics and accountability Signup and view all the answers

What is the primary drawback of administered prices?

They lead to shortages or surpluses, depending on the price set Signup and view all the answers

What is the primary difference between Gross National Income and other income measures?

GNI accounts for all income earned by a country's residents, adjusting for income received from abroad Signup and view all the answers

What is the primary goal of South Africa's import substitution policies?

To reduce dependence on foreign goods by promoting local production Signup and view all the answers

What is the primary goal of the Medium-Term Expenditure Framework (MTEF)?

To allocate resources over a three-year period Signup and view all the answers

What is the primary goal of Monetary Policy in stabilizing economic activity?

To regulate the money supply and interest rates to stabilize economic activity Signup and view all the answers

What is the primary consequence of information failure in the public sector?

Inefficient allocation of resources Signup and view all the answers

What is the primary goal of the Laffer Curve?

To illustrate the relationship between tax rates and economic growth Signup and view all the answers

Which of the following is a characteristic of the Schumpeterian Theory of business cycles?

It focuses on the role of technological innovation in causing business cycles Signup and view all the answers

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

To provide public goods and services that are not suitable for private sector delivery Signup and view all the answers

What is the primary objective of the public sector's economic growth strategy?

To promote sustainable growth through sectoral supports Signup and view all the answers

What is the primary challenge facing state-owned enterprises (SOEs)?

Inefficiency due to lack of competition and accountability Signup and view all the answers

What is the primary goal of Fiscal Policy during times of economic downturn?

To reduce government spending and lower taxes to stimulate economic activity Signup and view all the answers

What is the primary goal of the Laffer Curve?

To illustrate the relationship between tax rates and government revenue Signup and view all the answers

What is the primary goal of forecasting business cycles?

To predict future economic activity through extrapolation Signup and view all the answers

What is the primary argument for protectionism?

To protect local businesses and jobs from foreign competition Signup and view all the answers

What is the primary benefit of free trade, according to the concept of specialization?

Nations can focus on producing goods for which they have a comparative advantage Signup and view all the answers

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

Economic growth is a narrow concept, while economic development is a broader concept that includes economic growth, standards of living, and income equity. Signup and view all the answers

Which of the following approaches is associated with the Reconstruction and Development Programme (RDP) in South Africa?

Demand-side approach Signup and view all the answers

What is the primary goal of the Accelerated and Shared Growth Initiative of South Africa (Asgi-SA)?

Halving poverty and unemployment by 2020 Signup and view all the answers

Which of the following is a characteristic of the North/South divide?

All of the above Signup and view all the answers

What is the primary goal of industrial policies in South Africa?

Promoting economic growth and sustainable development Signup and view all the answers

What is the primary difference between the demand-side and supply-side approaches to economic growth?

Demand-side approach focuses on increasing government expenditure, while supply-side approach focuses on improving productivity Signup and view all the answers

Which of the following is an example of an export promotion strategy?

Supporting domestic industries to increase their exports Signup and view all the answers

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

Aiming at market-led growth, fiscal and monetary discipline, and enhancing investor confidence Signup and view all the answers

What is the primary focus of South Africa's industrial policies?

Promoting industrial development and diversifying the economy Signup and view all the answers

What is the primary goal of the New Growth Path (NGP) in South Africa?

Focus on job creation and identifying job drivers Signup and view all the answers

What is the primary goal of the National Research and Development Strategy (NRDS) in South Africa?

To boost innovation across industries Signup and view all the answers

What is the main objective of the Integrated Manufacturing Strategy (IMS) in South Africa?

To enhance competitiveness in the manufacturing sector Signup and view all the answers

What is the primary justification for South Africa's industrial policies?

All of the above Signup and view all the answers

What is the primary goal of the Special Economic Zones (SEZs) in South Africa?

To offer incentives to attract businesses and stimulate economic activities Signup and view all the answers

What is the primary focus of the evaluation of South Africa's industrial strategies?

All of the above Signup and view all the answers

What is the primary challenge facing South Africa's industrial policies?

All of the above Signup and view all the answers

What is the primary goal of the Spatial Development Initiatives (SDIs) in South Africa?

To target underdeveloped areas for infrastructure and industrial development Signup and view all the answers

What is the primary focus of the Industrial Development Zones (IDZs) and Special Economic Zones (SEZs) in South Africa?

To offer incentives like tax breaks and infrastructure support to attract investments Signup and view all the answers

What is the primary goal of South Africa's industrial policies in terms of regional development?

To reduce economic disparities between regions Signup and view all the answers

What is the primary goal of the governance and transparency aspect of South Africa's industrial policies?

To ensure accountability and transparency in policy implementation Signup and view all the answers

What is the primary function of the Consumer Price Index (CPI)?

Measuring the average price change over time of goods and services purchased by households Signup and view all the answers

What is the primary difference between the Unemployment Rate and the Employment Rate?

The Unemployment Rate measures the percentage of the labor force that is unemployed but actively seeking employment, while the Employment Rate measures the proportion of the EAP that is employed Signup and view all the answers

What is the primary purpose of the Terms of Trade?

Comparing the rate of export prices to import prices Signup and view all the answers

What is the primary impact of the Repo Rate on the economy?

It influences other interest rates across the economy Signup and view all the answers

What do the M1, M2, and M3 aggregates represent?

Various aggregates that include currency in circulation and different types of bank deposits Signup and view all the answers

What is the primary purpose of International Comparisons?

To compare the performance of South Africa's economy with that of other countries Signup and view all the answers

What do Infant and Under-5 Mortality Rates indicate?

The effectiveness of healthcare systems and the health environment Signup and view all the answers

What is the primary purpose of the Employment Rate indicator?

To measure the proportion of the Economically Active Population (EAP) that is employed Signup and view all the answers

What is the primary goal of using economic and social indicators in policymaking?

To identify areas needing intervention and evaluate the impact of current policies Signup and view all the answers

What is the primary purpose of the Life Expectancy indicator?

To measure the overall health and longevity of the population Signup and view all the answers

What is the primary function of the foreign sector in the circular flow model?

To facilitate trade activities, where exports add to the economic flow and imports lead to outflows of currency Signup and view all the answers

Which of the following markets facilitates the trading of currencies necessary for international trade?

Foreign Exchange Market Signup and view all the answers

What is the term for the total economic output at market prices?

Gross Domestic Product Signup and view all the answers

What is the primary function of households in the circular flow model?

To provide labor and resources, receiving income for consumption, savings, and taxes Signup and view all the answers

What is the term for the extent to which additional spending can amplify economic activity?

Multiplier Effect Signup and view all the answers

What is the primary characteristic of the goods market?

Trades consumer goods and services Signup and view all the answers

What is the primary function of the government sector in the circular flow model?

To collect taxes and inject spending into the economy Signup and view all the answers

What is the primary difference between the circular flow model in an open economy and a closed economy?

Presence of the foreign sector Signup and view all the answers

In the Multiplier Effect, what determines the increase in economic output?

Marginal Propensity to Consume Signup and view all the answers

What is the term for the highest point of economic activity in a business cycle?

Peak Signup and view all the answers

According to the Keynesian Theory, what drives business cycles?

Changes in aggregate demand Signup and view all the answers

What is the primary goal of monetary policy?

To stabilize economic activity Signup and view all the answers

Which approach focuses on the role of technological innovation in causing business cycles?

Schumpeterian Theory Signup and view all the answers

What is the term for the overall increase in economic output resulting from an initial increase in spending?

Multiplier Effect Signup and view all the answers

Which phase of the business cycle is marked by a decrease in economic activity?

Contraction Signup and view all the answers

What is the term for the lowest point of a business cycle?

Trough Signup and view all the answers

According to the Classical and Neoclassical Theories, what drives business cycles?

External shocks Signup and view all the answers

What is the primary goal of fiscal policy during an economic downturn?

To stimulate economic activity Signup and view all the answers

What is the primary goal of directing government spending towards public goods and services?

To encourage economic growth and stability Signup and view all the answers

What is the Laffer Curve primarily used to illustrate?

The relationship between tax rates and tax revenue Signup and view all the answers

What is a potential consequence of administered prices?

Shortages or surpluses, depending on whether prices are set below or above market equilibrium Signup and view all the answers

What is the primary argument of the Infant Industry Argument in favor of protectionism?

To support emerging domestic industries that are not yet competitive enough to withstand international competition Signup and view all the answers

What is the primary goal of South Africa's export promotion policies?

To encourage local firms to export their goods, thereby increasing participation in the global market Signup and view all the answers

What is a potential drawback of excessive bureaucracy in the public sector?

Reduced innovation and responsiveness, stifling economic growth Signup and view all the answers

What is the primary goal of South Africa's import substitution policies?

To encourage local production of goods that were previously imported to strengthen domestic industries and reduce dependency on foreign goods Signup and view all the answers

What is a potential consequence of information failure in the public sector?

Decisions may be based on incomplete or inaccurate information, leading to inefficient outcomes Signup and view all the answers

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

To provide public goods and services that are not suitable for private sector delivery Signup and view all the answers

What is the primary benefit of free trade, according to the concept of specialization?

Nations can focus on the production of goods for which they have a comparative advantage Signup and view all the answers

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

Meeting basic needs, developing human resources, and building the economy Signup and view all the answers

Which of the following approaches is MOST likely to lead to sustainable income redistribution in South Africa?

Supply-side approach, emphasizing education and training Signup and view all the answers

What is the primary difference between the Growth, Employment, and Redistribution (GEAR) strategy and the Accelerated and Shared Growth Initiative of South Africa (Asgi-SA)?

GEAR focuses on market-led growth, while Asgi-SA targets halving unemployment and poverty Signup and view all the answers

What is the primary objective of South Africa's industrial policies?

Increasing industrial activity, diversifying the economy, and enhancing regional development Signup and view all the answers

What is the primary characteristic of the North/South divide?

All of the above Signup and view all the answers

What is the primary goal of the New Growth Path (NGP) in South Africa?

Halving unemployment and poverty by improving average economic growth Signup and view all the answers

Which of the following is an example of a supply-side approach to economic growth?

Improving the quality of the labor force through education and training Signup and view all the answers

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

Economic growth refers to an increase in real GDP, while economic development refers to improvements in standards of living and income equity Signup and view all the answers

What is the primary goal of South Africa's export promotion policies?

Supporting domestic industries to increase their exports and enhance economic growth Signup and view all the answers

What is the primary focus of South Africa's industrial development policies?

Increasing industrial activity, diversifying the economy, and enhancing regional development Signup and view all the answers

What is the primary goal of the National Research and Development Strategy (NRDS) in South Africa?

Boosting innovation across industries Signup and view all the answers

What is the main objective of the Integrated Manufacturing Strategy (IMS) in South Africa?

Enhancing competitiveness in the manufacturing sector Signup and view all the answers

What is the primary goal of the Special Economic Zones (SEZs) in South Africa?

Offering incentives to attract businesses Signup and view all the answers

What is the primary justification for South Africa's industrial policies?

All of the above Signup and view all the answers

What is the primary goal of Spatial Development Initiatives (SDIs) in South Africa?

Targeting underdeveloped areas for infrastructure development Signup and view all the answers

What is the primary evaluation criterion for South Africa's industrial strategies?

All of the above Signup and view all the answers

What is the primary challenge facing South Africa's industrial policies?

Implementation gaps and resource allocation Signup and view all the answers

What is the primary goal of the Industrial Development Zones (IDZs) in South Africa?

Offering incentives to attract businesses Signup and view all the answers

What is the primary characteristic of South Africa's industrial policies?

All of the above Signup and view all the answers

What is the primary goal of the National Industrial Policy Framework (NIPF) in South Africa?

Guiding the overall industrial strategy Signup and view all the answers

What is the primary objective of the New Economic Paradigm?

To smooth out the volatility in business cycles and achieve stable growth Signup and view all the answers

What is the main difference between leading, lagging, and coincident indicators?

Leading indicators predict future economic activity, lagging indicators confirm trends, and coincident indicators move with the economy Signup and view all the answers

What is the primary goal of supply-side policies?

To increase productivity and efficiency through technological advancements, regulatory reforms, and incentives for industries Signup and view all the answers

What is the primary role of the public sector?

To provide structure and essential services that are not profit-driven Signup and view all the answers

What is the primary challenge faced by the public sector?

Accountability issues and inefficiency due to lack of clear performance metrics Signup and view all the answers

What is the primary objective of the Medium-Term Expenditure Framework (MTEF)?

To plan over a medium-term period, allowing for more predictable and strategic allocation of resources Signup and view all the answers

What is the primary goal of fiscal policy?

To regulate aggregate demand through fiscal stimuli or monetary adjustments Signup and view all the answers

What is the primary purpose of taxation as a fiscal policy instrument?

To regulate aggregate demand and manage economic cycles Signup and view all the answers

What is the Laffer Curve primarily used to illustrate?

The relationship between taxation and government revenue Signup and view all the answers

What is the primary goal of the public sector's pricing policy?

To fulfill social responsibilities rather than maximizing revenue Signup and view all the answers

What is the primary purpose of the Producer Price Index (PPI)?

To reflect the average movement of selling prices from domestic production over time Signup and view all the answers

What does the Economically Active Population (EAP) represent?

All persons within the working age group (15-65 years) available to supply labor for production Signup and view all the answers

What is the purpose of the Repo Rate?

To influence other interest rates across the economy Signup and view all the answers

What do Infant and Under-5 Mortality Rates indicate?

Indicators of the health environment and effectiveness of healthcare systems Signup and view all the answers

What do the M1, M2, and M3 aggregates represent?

Various aggregates that include currency in circulation and different types of bank deposits Signup and view all the answers

What is the primary purpose of International Comparisons?

To understand how South Africa compares to other nations Signup and view all the answers

What is the term for the value of the South African rand against other currencies?

Exchange Rate Signup and view all the answers

What is the primary goal of policy formulation using economic and social indicators?

To identify areas needing intervention and evaluate the impact of current policies Signup and view all the answers

What is the primary focus of social indicators such as Education and Health?

To measure the overall health and longevity of the population and the effectiveness of healthcare systems Signup and view all the answers

What is the primary goal of using economic and social indicators for investment decisions?

To assess the economic stability and growth potential of South Africa Signup and view all the answers

Which sector in the circular flow model utilizes labor and resources to produce goods and services?

Firms Signup and view all the answers

What type of flows represent the financial transactions for goods and services in the circular flow model?

Money Flows Signup and view all the answers

Which market facilitates the trading of goods and services?

Goods Market Signup and view all the answers

What is the term for the total economic output at market prices?

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

What is the term for the extent to which additional spending can amplify economic activity in an economy?

Multiplier Effect Signup and view all the answers

Which sector in the circular flow model collects taxes and injects spending into the economy through public services and infrastructure?

Government Signup and view all the answers

What type of market deals in resources like labor and capital?

Factor Market Signup and view all the answers

Which sector in the circular flow model involves trade activities, where exports add to the economic flow and imports lead to outflows of currency?

Foreign Sector Signup and view all the answers

What is the main difference between Gross National Income and other income measures?

GNI accounts for all income earned by a country's residents, adjusting for income received from abroad. Signup and view all the answers

What is the formula for the multiplier in a simple two-sector model?

k = 1 / (1 - MPC) Signup and view all the answers

Which theory explains business cycles as driven by changes in aggregate demand influenced by collective behavior of consumers and businesses?

Keynesian Theory Signup and view all the answers

What is the primary goal of monetary policy in stabilizing economic activity?

To stabilize economic activity Signup and view all the answers

What is the term for the highest point of economic activity in a business cycle?

Peak Signup and view all the answers

What is the term for the lowest point of a business cycle, marking the end of a recession?

Trough Signup and view all the answers

Which model focuses on household and firm interactions, with spending adjustments influenced by the Marginal Propensities to Consume and Save?

Two-Sector Model Signup and view all the answers

What is the primary difference between the expansion and contraction phases of a business cycle?

Expansion has increasing economic activity, while contraction has decreasing economic activity Signup and view all the answers

What is the term for the extent to which additional spending can amplify economic activity?

Multiplier Effect Signup and view all the answers

What is the primary focus of the Schumpeterian Theory in explaining business cycles?

The role of technological innovation Signup and view all the answers

What is the primary goal of the New Economic Paradigm?

To smooth out the volatility in business cycles and achieve stable growth Signup and view all the answers

Which of the following indicators is used to predict future economic activity?

Leading Indicators Signup and view all the answers

What is the primary role of the public sector in providing essential services?

To provide structure and essential services that are not profit-driven Signup and view all the answers

What is the primary challenge faced by the public sector in service delivery?

Lack of clear performance metrics and accountability Signup and view all the answers

What is the primary objective of the Medium-Term Expenditure Framework (MTEF) in the public sector?

To plan over a three-year period for more predictable and strategic allocation of resources Signup and view all the answers

Which of the following is a fiscal policy instrument used to manage economic activity?

Taxation Signup and view all the answers

What is the primary goal of forecasting business cycles?

To mitigate the adverse effects of downturns and capitalize on periods of growth Signup and view all the answers

What is the primary focus of supply-side policies?

Increasing productivity and efficiency through technological advancements Signup and view all the answers

What is the primary challenge faced by State-Owned Enterprises (SOEs)?

Lack of competition and accountability Signup and view all the answers

What is the primary objective of the public sector in providing essential services?

To provide structure and essential services that are not profit-driven Signup and view all the answers

What is the primary argument in favor of protectionism, as stated in the Infant Industry Argument?

Protecting emerging domestic industries that are not yet competitive enough to withstand international competition. Signup and view all the answers

What is the primary goal of directing government spending towards public goods and services?

To promote economic growth and stability. Signup and view all the answers

What is the primary benefit of free trade, according to the concept of specialization?

Nations can focus on the production of goods for which they have a comparative advantage. Signup and view all the answers

What is the primary consequence of administered prices in the public sector?

Inefficient allocation of resources and distorted market operations. Signup and view all the answers

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

To provide essential services and manage resources. Signup and view all the answers

What is the primary goal of the export promotion policies in South Africa?

To encourage local firms to export their goods and increase participation in the global market. Signup and view all the answers

What is the primary drawback of excessive bureaucracy in the public sector?

It can stifle innovation and responsiveness in the public sector. Signup and view all the answers

What is the primary goal of the import substitution policies in South Africa?

To encourage local production of goods that were previously imported. Signup and view all the answers

What is the primary consequence of information failure in the public sector?

Decisions may be based on incomplete or inaccurate information, leading to inefficient outcomes. Signup and view all the answers

What is the primary goal of the Laffer Curve?

To illustrate the relationship between tax rates and tax revenue. Signup and view all the answers

What is the primary argument in favor of free trade, according to the concept of economic efficiency?

It promotes more efficient allocation of resources globally, enhancing productivity and innovation. Signup and view all the answers

What does the Consumer Price Index (CPI) measure?

The average price change over time of goods and services purchased by households Signup and view all the answers

What is the purpose of the Repo Rate?

To influence other interest rates across the economy Signup and view all the answers

What do the M1, M2, and M3 aggregates represent?

Various aggregates that include currency in circulation and different types of bank deposits Signup and view all the answers

What do Infant and Under-5 Mortality Rates indicate?

The health environment and effectiveness of healthcare systems Signup and view all the answers

What is the primary purpose of International Comparisons?

To compare South Africa’s performance with that of other countries Signup and view all the answers

What is the purpose of the Economically Active Population (EAP) indicator?

To represent all persons within the working age group available to supply labor for production Signup and view all the answers

What is the term for the value of the South African rand against other currencies?

Exchange Rate Signup and view all the answers

What do social indicators, such as Education and Health, measure?

The health environment and effectiveness of healthcare systems Signup and view all the answers

What is the purpose of the Terms of Trade?

To compare the rate of export prices to import prices Signup and view all the answers

What is the purpose of the Employment Rate?

To represent the proportion of the Economically Active Population that is employed Signup and view all the answers

What is the primary objective of the National Research and Development Strategy (NRDS) in South Africa?

To boost innovation across industries Signup and view all the answers

What is the main focus of Spatial Development Initiatives (SDIs) in South Africa's industrial policy?

To target underdeveloped areas for infrastructure and industrial development Signup and view all the answers

What is the primary justification for South Africa's industrial policies?

To promote economic diversification and job creation Signup and view all the answers

What is the primary goal of South Africa's industrial strategies in terms of alignment with international best practices?

To ensure governance and transparency in policy implementation Signup and view all the answers

What is the primary focus of evaluating the effectiveness of South Africa's industrial strategies?

All of the above Signup and view all the answers

What is the primary challenge facing South Africa's industrial policies in terms of implementation?

Implementation gaps and skills development Signup and view all the answers

What is the primary objective of the Integrated Manufacturing Strategy (IMS) in South Africa?

To enhance competitiveness in the manufacturing sector Signup and view all the answers

What is the primary goal of Special Economic Zones (SEZs) in South Africa's industrial policy?

To attract businesses and stimulate economic activities through incentives Signup and view all the answers

What is the primary focus of Industrial Development Zones (IDZs) and Special Economic Zones (SEZs) in South Africa's industrial policy?

To offer incentives like tax breaks and infrastructure support to attract investments Signup and view all the answers

What is the primary goal of South Africa's regional development initiatives in terms of industrial policy?

To reduce regional disparities through industrial activities Signup and view all the answers

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

To democratize state and society while meeting basic needs Signup and view all the answers

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

Economic growth refers to an increase in real GDP, while economic development includes improvements in standards of living Signup and view all the answers

What is the primary goal of the New Growth Path (NGP) in South Africa?

To halve unemployment and poverty by improving average economic growth Signup and view all the answers

What is the primary characteristic of the North/South divide?

A significant disparity exists between the developed 'North' and the developing 'South' in terms of income levels and economic stability Signup and view all the answers

Which approach to economic growth focuses on improving the quality of the labor force, managing natural resources, accumulating capital goods, and encouraging entrepreneurship?

Supply-side approach Signup and view all the answers

What is the primary goal of South Africa's industrial policies?

To diversify the economy and enhance regional development Signup and view all the answers

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

To achieve market-led growth, fiscal and monetary discipline, and enhance investor confidence Signup and view all the answers

What is the primary goal of South Africa's export promotion policies?

To support domestic industries to increase their exports Signup and view all the answers

What is the primary focus of the Accelerated and Shared Growth Initiative of South Africa (Asgi-SA)?

To halve unemployment and poverty by improving average economic growth Signup and view all the answers

Which of the following is an example of a supply-side approach to economic growth?

Improving the quality of the labor force Signup and view all the answers

What is the primary function of the foreign sector in the circular flow model?

To facilitate trade activities and handle exports and imports Signup and view all the answers

What is the term for the total economic output at market prices?

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

What is the primary function of the financial market in the circular flow model?

To manage the flow of money, including savings and investments Signup and view all the answers

What is the term for the movement of goods and services in the circular flow model?

Real Flows Signup and view all the answers

What is the primary function of the government sector in the circular flow model?

To collect taxes and inject spending into the economy Signup and view all the answers

What is the term for the extent to which additional spending can amplify economic activity?

The Multiplier Effect Signup and view all the answers

What is the primary function of the goods market in the circular flow model?

To trade consumer goods and services Signup and view all the answers

What is the term for the market that deals in resources like labor and capital?

Factor Market Signup and view all the answers

What is the primary purpose of directing government spending towards public goods and services?

To encourage economic growth and stability Signup and view all the answers

Which of the following is an argument in favor of protectionism?

Reducing import dependency Signup and view all the answers

What is a potential consequence of information failure in the public sector?

Inefficient outcomes Signup and view all the answers

What is the primary goal of South Africa's import substitution policies?

To reduce import dependency Signup and view all the answers

What is a potential drawback of excessive bureaucracy in the public sector?

Stifling innovation and responsiveness Signup and view all the answers

What is the primary goal of the Laffer Curve?

To illustrate the relationship between tax rates and tax revenue Signup and view all the answers

What is a benefit of free trade, according to the concept of specialization?

Nations can focus on producing goods for which they have a comparative advantage Signup and view all the answers

What is a potential consequence of administered prices?

Shortages or surpluses Signup and view all the answers

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

To manage resources and provide public goods and services Signup and view all the answers

What is an argument for protectionism?

Protecting emerging domestic industries Signup and view all the answers

What is the primary purpose of adjusting for income received from abroad in Gross National Income (GNI) calculations?

To include income earned by citizens abroad Signup and view all the answers

Which of the following models would be most suitable for analyzing the impact of government spending on economic activity?

Four-Sector Model Signup and view all the answers

What is the primary factor that determines the magnitude of the multiplier effect in a two-sector model?

Marginal Propensity to Consume (MPC) Signup and view all the answers

What is the primary characteristic of the contraction phase of a business cycle?

Decreased economic activity Signup and view all the answers

According to the Schumpeterian Theory, what is the primary driver of business cycles?

Technological innovations Signup and view all the answers

What is the primary goal of monetary policy in stabilizing economic activity?

To stimulate economic growth Signup and view all the answers

What is the primary difference between the Keynesian and Classical theories of business cycles?

The importance of aggregate demand in the economy Signup and view all the answers

What is the primary purpose of fiscal policy in times of economic downturn?

To stimulate aggregate demand Signup and view all the answers

What is the primary characteristic of the peak point of a business cycle?

The highest point of economic activity Signup and view all the answers

What is the primary role of the government sector in the circular flow model?

To regulate the economy and stabilize economic activity Signup and view all the answers

What is the primary objective of the New Economic Paradigm?

To smooth out the volatility in business cycles and achieve stable growth Signup and view all the answers

What type of indicators confirm trends that are already in process?

Lagging Indicators Signup and view all the answers

What is the main focus of supply-side policies?

Increasing productivity and efficiency through technological advancements Signup and view all the answers

What is the primary role of the public sector?

Providing essential services like defense and education Signup and view all the answers

What is a challenge facing the public sector?

Inefficient use of resources due to lack of clear performance metrics Signup and view all the answers

What is the primary objective of fiscal policy instruments?

To manage economic cycles through adjusting tax rates Signup and view all the answers

What is the primary goal of the Medium-Term Expenditure Framework (MTEF)?

To plan over a three-year period, allowing for more predictable and strategic allocation of resources Signup and view all the answers

What is the primary focus of the Laffer Curve?

To illustrate the relationship between taxation and economic activity Signup and view all the answers

What is the primary objective of the public sector's pricing policy?

To fulfill social responsibilities rather than maximizing revenue Signup and view all the answers

What is a challenge facing State-Owned Enterprises (SOEs)?

Lack of competition and accountability, leading to inefficiency Signup and view all the answers

Which of the following is a characteristic of economic development?

Redistribution of income to enhance consumption among lower-income earners Signup and view all the answers

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

Meeting basic needs and developing human resources Signup and view all the answers

What is the primary difference between the demand-side and supply-side approaches to economic growth?

The demand-side approach focuses on increasing government expenditure, while the supply-side approach focuses on improving the quality of the labor force Signup and view all the answers

What is the primary characteristic of the North/South divide?

A significant disparity in income levels and economic stability between the developed and developing countries Signup and view all the answers

What is the primary goal of industrial policies in South Africa?

Increasing industrial activity and diversifying the economy Signup and view all the answers

Which of the following is an example of a supply-side approach to economic growth?

Improving the quality of the labor force through education and training Signup and view all the answers

What is the primary objective of the New Growth Path (NGP) in South Africa?

Focusing on job creation and identifying job drivers Signup and view all the answers

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

Aiming at market-led growth and fiscal discipline Signup and view all the answers

What is the primary focus of the Accelerated and Shared Growth Initiative of South Africa (Asgi-SA)?

Targeting halving unemployment and poverty Signup and view all the answers

Which of the following is an example of an export promotion strategy?

Encouraging domestic industries to increase their exports Signup and view all the answers

What is the main objective of South Africa's industrial policies?

To reduce dependence on traditional sectors like mining Signup and view all the answers

What is the primary focus of the National Research and Development Strategy (NRDS)?

To boost innovation across industries Signup and view all the answers

What is the primary goal of Special Economic Zones (SEZs) in South Africa?

To attract foreign direct investment Signup and view all the answers

What is a key principle of South Africa's industrial policies?

Inclusivity Signup and view all the answers

What is the primary focus of Spatial Development Initiatives (SDIs) in South Africa?

To develop infrastructure in underdeveloped areas Signup and view all the answers

What is a challenge facing South Africa's industrial strategies?

Implementation gaps Signup and view all the answers

What is the primary goal of evaluating South Africa's industrial strategies?

To assess the effectiveness of policies in promoting economic growth Signup and view all the answers

What is the primary focus of the Integrated Manufacturing Strategy (IMS) in South Africa?

To enhance competitiveness in the manufacturing sector Signup and view all the answers

What is a key objective of South Africa's industrial policies in terms of employment?

To reduce unemployment rates Signup and view all the answers

What is the primary goal of South Africa's industrial policies in terms of regional development?

To promote equitable economic development across regions Signup and view all the answers

What is the primary focus of the Terms of Trade indicator?

Comparing the rate of export prices to import prices Signup and view all the answers

Which indicator measures the proportion of the Economically Active Population (EAP) that is employed?

Employment Rate Signup and view all the answers

What is the primary purpose of the M1, M2, and M3 aggregates?

Reflecting the liquidity available in the economy Signup and view all the answers

What is the primary goal of International Comparisons?

Comparing South Africa's economic performance with that of other countries Signup and view all the answers

What is the primary purpose of the Repo Rate?

Influencing other interest rates across the economy Signup and view all the answers

What do Infant and Under-5 Mortality Rates indicate?

The effectiveness of healthcare systems Signup and view all the answers

What is the primary focus of the Producer Price Index (PPI)?

Reflecting the average movement of selling prices from domestic production over time Signup and view all the answers

What is the primary purpose of the Economically Active Population (EAP) indicator?

Representing all persons within the working age group available to supply labor for production Signup and view all the answers

What do social indicators, such as Education and Health, measure?

The government's commitment to improving education and healthcare Signup and view all the answers

What is the primary goal of using economic and social indicators?

To identify areas needing intervention and evaluate the impact of current policies Signup and view all the answers

Nov P1 Hard

Questions and Answers

Which sector in the circular flow model provides labor and resources, and receives income that is used for consumption, savings, and taxes?

What type of flows involve the movement of goods and services in the circular flow model?

Which market facilitates the trading of currencies necessary for international trade?

What is the primary function of the government sector in the circular flow model?

What is the term for the total economic output at market prices?

Which sector in the circular flow model involves trade activities, where exports add to the economic flow and imports lead to outflows of currency?

What is the term for the extent to which additional spending can amplify economic activity?

Which market deals in resources like labor and capital?

What is the primary difference between Gross National Income and other income measures?

What is the main focus of the Two-Sector Model in the Multiplier Effect?

What is the formula for the multiplier in a simple two-sector model?

What is the characteristic of the expansion phase of a business cycle?

What is the term for the highest point of economic activity in a business cycle?

What is the primary factor influencing business cycles according to the Keynesian Theory?

What is the primary goal of monetary policy in stabilizing economic activity?

What is the term for the lowest point of a business cycle, marking the end of a recession?

What is the primary focus of the Schumpeterian Theory in explaining business cycles?

What is the primary tool used by governments to stabilize economic activity during downturns?

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

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

Which of the following is an example of a supply-side approach to economic growth?

What is the main objective of the New Growth Path (NGP) in South Africa?

What is the primary characteristic of the North/South divide?

What is the primary goal of directing government spending towards public goods and services?

Which of the following is an example of an export promotion strategy?

What is the primary focus of the Accelerated and Shared Growth Initiative of South Africa (Asgi-SA)?

What is the Laffer Curve primarily used to illustrate?

What is a potential consequence of administered prices?

What is the main objective of industrial policies in South Africa?

What is the primary difference between the demand-side and supply-side approaches to economic growth?

What is the primary argument of the Infant Industry Argument in favor of protectionism?

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

What is a potential benefit of free trade, according to the concept of specialization?

What is the primary goal of South Africa's export promotion policies?

What is a potential drawback of excessive bureaucracy in the public sector?

What is the primary goal of South Africa's import substitution policies?

What is a potential consequence of information failure in the public sector?

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

What is the primary purpose of the Producer Price Index (PPI)?

What does the Employment Rate measure?

What is the term for the value of the South African rand against other currencies?

Which indicator measures the overall health and longevity of the population?

What is the purpose of the Repo Rate?

What do the M1, M2, and M3 aggregates represent?

What is the purpose of International Comparisons?

What do Infant and Under-5 Mortality Rates indicate?

What is the purpose of the Economically Active Population (EAP) indicator?

What do social indicators, such as Education and Health, measure?

What is the primary goal of the National Industrial Policy Framework (NIPF) in South Africa?

What is the main objective of the Industrial Policy Action Plans (IPAP) in South Africa?

Which of the following is a key aspect of South Africa's industrial policies that aligns with international best practices?

What is the primary purpose of Spatial Development Initiatives (SDIs) in South Africa?

What is a key challenge facing South Africa's industrial policies that needs to be addressed?

Which of the following is an indicator of the effectiveness of South Africa's industrial strategies?

What is the primary goal of the National Research and Development Strategy (NRDS) in South Africa?

Which of the following is a key aspect of South Africa's industrial policies that addresses regional disparities?

What is the primary objective of the Integrated Manufacturing Strategy (IMS) in South Africa?

Which of the following is a key challenge facing South Africa's industrial policies that affects the workforce?

What is the primary objective of the New Economic Paradigm?

Which type of indicator confirms trends that are already in process?

What is the primary role of Provincial Governments?

What is a key challenge faced by the public sector?

What is the primary objective of pricing policy in the public sector?

What is a key objective of the public sector?

What is the Medium-Term Expenditure Framework (MTEF) used for?

What is a fiscal policy instrument used to manage economic activity?

What is a challenge faced by State-Owned Enterprises (SOEs)?

What is the primary role of Local Governments?

What is the primary function of the financial market in the circular flow model?

What is the term for the total economic output at market prices in a country?

Which sector in the circular flow model injects spending into the economy through public services and infrastructure?

What type of flows involve the movement of goods and services in the circular flow model?

Which market facilitates the exchange of resources like labor and capital?

What is the term for the extent to which additional spending can amplify economic activity?

Which sector in the circular flow model involves trade activities, where exports add to the economic flow and imports lead to outflows of currency?

What does the circular flow model illustrate?

What is the primary objective of government spending directed towards public goods and services?

What is the Laffer Curve primarily used to illustrate?