Term 1 Test

Play an AI-generated podcast conversation about this lesson

What is the primary purpose of natural resources in the economy?

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

What is the typical form of remuneration for natural resources?

Rent (correct)
Wages
Interest
Benefits

What is a characteristic of labor?

It is storable
It is non-renewable
It is not affected by technological advancements
It varies in skill level (correct)

What is a factor that affects labor supply?

Labor force participation rates (B) Signup and view all the answers

What is the primary role of entrepreneurship in the economy?

Not mentioned in the content (B) Signup and view all the answers

What is a type of natural resource?

Mineral deposits (B) Signup and view all the answers

What is a form of remuneration for labor?

Wages (C) Signup and view all the answers

What is a characteristic of capital?

Not mentioned in the content (D) Signup and view all the answers

What is the primary function of capital in an economy?

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

What is the key distinction between final and intermediate goods?

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

What is the reward for entrepreneurship in an economic system?

Profit for risks and efforts taken (D) Signup and view all the answers

What is the Gross Domestic Product (GDP) a measure of?

The total value of all final goods and services produced within a country (C) Signup and view all the answers

What is the purpose of the circular flow diagram in economics?

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

What is investment (I) in the context of the circular flow of goods and services?

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

What is the role of entrepreneurs in an economic system?

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

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

Interest (B) Signup and view all the answers

What is the importance of capital widening and deepening in economic growth?

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

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

To facilitate trade and financial transactions with other countries (C) Signup and view all the answers

What is the Income Method of calculating GDP?

Total of incomes generated by production (A) Signup and view all the answers

What is Gross National Income (GNI)?

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

What is the main characteristic of a market economy?

Predominantly private ownership of production factors (C) Signup and view all the answers

What is a disadvantage of a market economy?

Potential for significant inequalities in income and wealth distribution (D) Signup and view all the answers

What is a characteristic of a centrally planned economy?

State ownership of resources (A) Signup and view all the answers

What is an advantage of a mixed economy?

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

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

Inefficiencies in service delivery (C) Signup and view all the answers

What is the Expenditure Method of calculating GDP?

Sum of all expenditures made on final goods and services (C) Signup and view all the answers

What is Gross Fixed Capital Formation (I) in the Expenditure Method?

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

Why is understanding the Circular Flow important?

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

What is a key objective of South Africa's economic initiatives such as ASGISA and the New Economic Growth Path?

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

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

To extract and harvest natural resources (A) Signup and view all the answers

What is a key challenge facing South Africa's energy infrastructure?

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

What is a significant historical barriers faced by black South Africans in the primary sector?

Deprivation of land ownership and equal opportunities in farming and mining (D) Signup and view all the answers

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

To provide services such as finance, insurance, and retail (A) Signup and view all the answers

What is a key aspect of South Africa's international trade strategy?

Maintaining stable exchange rates and producing high-quality goods (C) Signup and view all the answers

What is a historical barrier faced by black South Africans in the secondary sector?

Restricted training and job opportunities in manufacturing and construction (C) Signup and view all the answers

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

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

What is a key objective of post-apartheid reforms such as the Land Redistribution Programme?

To address historical exclusions and inequalities in the primary sector (D) Signup and view all the answers

What is the primary goal of South Africa's economic growth initiatives?

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

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

They are essential for production but vary in availability and renewability (C) Signup and view all the answers

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

To represent the human effort, both physical and mental (D) Signup and view all the answers

What is a factor that influences the payment associated with natural resources?

Quality of the resource (B) Signup and view all the answers

What is a characteristic of labor that affects its supply?

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

What is the primary role of entrepreneurship in the economy?

To organize and manage production (D) Signup and view all the answers

What is a common way to categorize natural resources?

Renewable and non-renewable (C) Signup and view all the answers

What is the typical form of compensation for labor?

Wages (D) Signup and view all the answers

Why are natural resources essential for economic development?

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

Which of the following methods of calculating GDP adds up all the expenditures made by households, firms, government and foreigners on final goods and services?

Expenditure Method (C) Signup and view all the answers

What is the term for the total income earned by residents of a country from abroad, minus the income earned by non-residents in the domestic economy?

Gross National Income (B) Signup and view all the answers

Which economic system combines elements of both market capitalism and central planning?

Mixed Economy (A) Signup and view all the answers

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

To balance individual freedom with government oversight (B) Signup and view all the answers

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

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

What is the primary advantage of a centrally planned economy?

Even distribution of income (C) Signup and view all the answers

Which of the following is a disadvantage of a market economy?

Potential for significant inequalities in income and wealth distribution (B) Signup and view all the answers

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

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

What is the main challenge facing the South African government in providing social services?

Inefficient service delivery (A) Signup and view all the answers

What does Gross Fixed Capital Formation (I) reflect in the Expenditure Method?

Total investment in physical assets for future production (A) Signup and view all the answers

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

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

What is the primary sector in South Africa's economy responsible for?

Extracting and harvesting natural resources (A) Signup and view all the answers

What is a key aspect of South Africa's international trade strategy?

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

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

Providing essential services like finance and healthcare (B) Signup and view all the answers

What is a significant historical barrier faced by black South Africans in the primary sector?

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

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

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

What is a key challenge facing South Africa's energy infrastructure?

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

What is a historical barrier faced by black South Africans in the secondary sector?

Restricted training and job opportunities in manufacturing (A) Signup and view all the answers

What is the primary objective of post-apartheid reforms like the Land Redistribution Programme?

To address historical inequalities in land ownership (B) Signup and view all the answers

What is the primary composition of the secondary sector?

Manufacturing and construction (B) Signup and view all the answers

What is the primary function of capital in an economy?

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

What is the relationship between households and businesses in the circular flow?

Households provide labor to businesses and receive wages (C) Signup and view all the answers

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

Interest (B) Signup and view all the answers

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

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

What is a key difference between renewable and non-renewable natural resources?

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

Why are natural resources essential for economic development?

They generate income for resource owners and create employment opportunities (D) Signup and view all the answers

What determines the payment associated with natural resources?

Their demand and quality (C) Signup and view all the answers

What is a characteristic of labor that affects its supply?

Its level of skill (C) Signup and view all the answers

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

To provide the human effort required for production (A) Signup and view all the answers

What is the typical form of compensation for entrepreneurship?

Profit (D) Signup and view all the answers

What is the primary function of capital in an economy?

To provide the man-made assets required for production (D) Signup and view all the answers

What is the key distinction between natural resources and other factors of production?

Their inherent existence in the environment (B) Signup and view all the answers

What is the primary function of capital in an economy?

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

Which of the following is NOT a key component of the circular flow of goods and services?

Human Capital (H) (C) Signup and view all the answers

What is the primary reward for entrepreneurship in an economic system?

Profit (C) Signup and view all the answers

What is the Gross Domestic Product (GDP) a measure of?

The total value of all final goods and services produced within a country (C) Signup and view all the answers

What is the difference between final and intermediate goods?

Final goods are consumed by the end user, while intermediate goods are used in further production (A) Signup and view all the answers

What is the main objective of South Africa's international trade strategy?

To enhance its global market position by producing high-quality, competitively priced goods (A) Signup and view all the answers

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

Interest (C) Signup and view all the answers

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

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

What is the role of entrepreneurs in an economic system?

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

What is the importance of capital widening and deepening in economic growth?

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

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

Underinvestment in new power sources and insufficient emphasis on renewable energy (D) Signup and view all the answers

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

To facilitate trade and financial transactions with other countries (C) Signup and view all the answers

What is the historical barrier that black South Africans faced in the secondary sector?

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

What is the Value Added Method of calculating GDP?

Sum of value added at each stage of production (C) Signup and view all the answers

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

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

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

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

What is the primary role of the tertiary sector in providing employment opportunities?

Expansion of employment and skills training (D) Signup and view all the answers

What is the primary objective of post-apartheid reforms such as the Land Redistribution Programme?

To address historical inequalities in land ownership and equal opportunities in farming (C) Signup and view all the answers

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

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

What is the primary objective of South Africa's infrastructure development?

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

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

To add up all the expenditures made by households, firms, government, and foreigners on final goods and services (A) Signup and view all the answers

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

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

What is the Gross Fixed Capital Formation (I) in the context of the Expenditure Method?

Total investment in physical assets that will be used in future production (D) Signup and view all the answers

What is the primary advantage of a mixed economy over a market economy?

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

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

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

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

Level of government intervention (A) Signup and view all the answers

What is the primary goal of understanding the Circular Flow?

To provide insights into how money and goods circulate within an economy (C) Signup and view all the answers

What is the primary characteristic of a market economy?

Predominantly private ownership of production factors (D) Signup and view all the answers

What is the primary advantage of a centrally planned economy over a market economy?

Even distribution of income (D) Signup and view all the answers

What is the primary role of the government in providing social services in South Africa?

To provide education, healthcare, welfare, and community amenities (B) Signup and view all the answers

Which factor of production is responsible for driving economic development by providing raw materials for goods and services?

Natural Resources (A) Signup and view all the answers

What determines the payment associated with natural resources?

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

What is a characteristic of labor that affects its supply?

Non-storability (B) Signup and view all the answers

What is the primary role of entrepreneurship in the economy?

To take risks and combine factors of production (A) Signup and view all the answers

What is a key characteristic of natural resources that distinguishes them from other factors of production?

They are unevenly distributed across regions (B) Signup and view all the answers

What is the typical form of compensation for labor?

Wages (C) Signup and view all the answers

What is a common way to categorize natural resources?

Renewable and non-renewable (D) Signup and view all the answers

Why are natural resources essential for economic development?

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

What is the primary function of entrepreneurs in the economy?

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

What is the key difference between final and intermediate goods?

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

What is the return on invested funds in capital?

Interest (D) Signup and view all the answers

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

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

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

To redistribute income through spending and transfers (C) Signup and view all the answers

What is the importance of capital widening and deepening in economic growth?

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

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

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

What is the reward for entrepreneurship in an economic system?

Profit (C) Signup and view all the answers

What is the purpose of the circular flow diagram in economics?

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

What is the primary function of capital in an economy?

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

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

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

What is the primary characteristic of a mixed economy?

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

What is the main advantage of a market economy?

Wide product variety and consumer choice. (A) Signup and view all the answers

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

To provide social services and promote economic growth. (D) Signup and view all the answers

What is the main disadvantage of a centrally planned economy?

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

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

To enhance its global market position by producing high-quality goods (D) Signup and view all the answers

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

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

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

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

Why is understanding the Circular Flow important in economics?

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

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

It adds up all the expenditures made by households, firms, government, and foreigners on final goods and services. (D) Signup and view all the answers

What is the historical barrier faced by black South Africans in the tertiary sector?

Severe restrictions on owning businesses and property (C) Signup and view all the answers

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

To transform raw materials into finished goods (B) Signup and view all the answers

What is a key challenge facing the South African government in providing social services?

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

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

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

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

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

What is the primary goal of post-apartheid reforms such as the Land Redistribution Programme?

To address historical inequalities in land ownership (A) Signup and view all the answers

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

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

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

To support the marketing and distribution of goods (A) Signup and view all the answers

What is the primary goal of South Africa's economic growth initiatives?

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

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

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

Which factor of production is characterized by its uneven distribution across regions?

Natural Resources (D) Signup and view all the answers

What is the primary way that natural resources generate income for resource owners?

Through rent (D) Signup and view all the answers

Which of the following is a characteristic of skilled labor?

It requires a high level of education (A) Signup and view all the answers

What is a key difference between renewable and non-renewable natural resources?

Their sustainability (D) Signup and view all the answers

Which factor of production receives compensation in the form of wages and benefits?

Labor (A) Signup and view all the answers

What is a key reason why natural resources are essential for economic development?

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

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

They are storable (B) Signup and view all the answers

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

To provide human effort, both physical and mental (C) Signup and view all the answers

What is the primary driver of changes in capital demand?

Changes in interest rates (D) Signup and view all the answers

What is the key distinction between capital widening and capital deepening?

Capital widening refers to an increase in the quantity of capital, while capital deepening refers to an increase in the quality of capital (C) Signup and view all the answers

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

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

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

To calculate the total value added at each stage of production (D) Signup and view all the answers

What is the relationship between entrepreneurship and economic growth?

Entrepreneurship drives economic growth by mobilizing resources and investing in capital (C) Signup and view all the answers

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

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

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

To provide labor and receive wages, spend income on goods and services, and save money through financial markets (D) Signup and view all the answers

What is the primary purpose of the Gross National Income (GNI)?

To measure the total income earned by residents of a country from abroad, minus the income earned by non-residents in the domestic economy (A) Signup and view all the answers

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

To involve trade and financial transactions with other countries, affecting the domestic economy through exports and imports (A) Signup and view all the answers

What is the primary purpose of investment in capital goods?

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

Which of the following initiatives aims to enhance growth, competitiveness, and employment in South Africa?

New Economic Growth Path (A), ASGISA (C) Signup and view all the answers

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

Providing essential services to support economic growth and development (D) Signup and view all the answers

Which of the following is a key challenge facing South Africa's energy infrastructure?

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

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

Extracting and harvesting natural resources (B) Signup and view all the answers

Which of the following is a significant historical barrier faced by black South Africans in the secondary sector?

Restricted training and job opportunities (C) Signup and view all the answers

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

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

What is the primary goal of post-apartheid reforms such as the Land Redistribution Programme?

Addressing historical inequalities in land ownership (C) Signup and view all the answers

Which of the following is a characteristic of the tertiary sector in South Africa's economy?

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

What is the primary goal of South Africa's economic growth initiatives?

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

Which of the following is a key aspect of South Africa's international trade strategy?

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

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

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

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

It balances the benefits of market-driven and state-controlled sectors (C) Signup and view all the answers

What is the primary role of the government in a mixed economy, as seen in South Africa?

To promote economic growth, while also addressing social welfare concerns (D) Signup and view all the answers

What is the main characteristic of a market economy that promotes economic growth?

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

What is the primary challenge facing the South African government in providing social services, such as education and healthcare?

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

What is the primary difference between the Expenditure Method and the Income Method of calculating GDP?

The Expenditure Method adds up all expenditures, while the Income Method adds up all incomes (D) Signup and view all the answers

What is the primary advantage of a centrally planned economy, as seen in its ability to address social welfare concerns?

Even distribution of income and employment (B) Signup and view all the answers

What is the primary role of Gross Fixed Capital Formation (I) in the Expenditure Method of calculating GDP?

To reflect total investment in physical assets (A) Signup and view all the answers

What is the primary importance of understanding the Circular Flow in economics?

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

What is the primary characteristic of a mixed economy, as seen in South Africa?

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

What is the key factor that determines the sustainability of natural resource management?

Renewability of the resource (C) Signup and view all the answers

Which of the following is a characteristic that distinguishes labor from other factors of production?

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

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

They provide raw materials for production (B) Signup and view all the answers

Which of the following factors affects the payment associated with labor?

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

What is the primary role of entrepreneurship in the economy?

To take on the risks associated with production (D) Signup and view all the answers

How do natural resources vary in terms of their availability?

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

What is the primary characteristic of natural resources that affects their sustainability?

Their renewability (A) Signup and view all the answers

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

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

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

To measure the sum of all expenditures made on final goods and services (C) Signup and view all the answers

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

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

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

To provide social services and promote economic growth (B) Signup and view all the answers

What is the primary advantage of a market economy?

Wide product variety and consumer choice (D) Signup and view all the answers

What is the primary disadvantage of a centrally planned economy?

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

What is the primary benefit of understanding the circular flow diagram in economics?

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

What is the primary role of Gross Fixed Capital Formation (I) in the Expenditure Method?

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

What is the primary characteristic of Gross National Income (GNI)?

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

What is the primary challenge facing the South African government in providing social services?

Inefficiencies in service delivery (A) Signup and view all the answers

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

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

What is the primary reason why investment in capital goods is necessary?

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

Which of the following is an example of social capital?

Infrastructure such as buildings and roads (A) Signup and view all the answers

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

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

What is the primary reason why entrepreneurs take risks?

To drive economic renewal and innovation (D) Signup and view all the answers

What is the key distinction between final and intermediate goods?

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

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

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

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

To provide labor and receive wages, spend income on goods and services, and save money through financial markets (B) 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 in a specific time period?

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

What is the primary function of capital in an economy?

To sustain production capabilities and manage depreciation (D) Signup and view all the answers

What is the primary reward for entrepreneurship in an economic system?

Profit earned from business ventures (B) Signup and view all the answers

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

To enhance its global market position by producing high-quality, competitively priced goods (C) Signup and view all the answers

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

Tertiary sector (D) Signup and view all the answers

What is the primary historical barrier faced by black South Africans in the secondary sector?

Restricted job opportunities and training in the sector (B) Signup and view all the answers

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

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

What is the primary objective of post-apartheid reforms such as the Land Redistribution Programme?

To address historical inequalities and discriminatory policies (B) Signup and view all the answers

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

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

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

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

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

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

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

To support the marketing and distribution of goods and drive overall economic growth (A) Signup and view all the answers

What is the primary barrier that black South Africans faced in the primary sector during apartheid?

Deprivation of land ownership and equal opportunities in farming and mining (C) Signup and view all the answers

Term 1 Test

Choose a study mode

Podcast

Questions and Answers

What is the primary purpose of natural resources in the economy?

What is the typical form of remuneration for natural resources?

What is a characteristic of labor?

What is a factor that affects labor supply?

What is the primary role of entrepreneurship in the economy?

What is a type of natural resource?

What is a form of remuneration for labor?

What is a characteristic of capital?

What is the primary function of capital in an economy?

What is the key distinction between final and intermediate goods?

What is the reward for entrepreneurship in an economic system?

What is the Gross Domestic Product (GDP) a measure of?

What is the purpose of the circular flow diagram in economics?

What is investment (I) in the context of the circular flow of goods and services?

What is the role of entrepreneurs in an economic system?

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

What is the importance of capital widening and deepening in economic growth?

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

What is the Income Method of calculating GDP?

What is Gross National Income (GNI)?

What is the main characteristic of a market economy?

What is a disadvantage of a market economy?

What is a characteristic of a centrally planned economy?

What is an advantage of a mixed economy?

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

What is the Expenditure Method of calculating GDP?

What is Gross Fixed Capital Formation (I) in the Expenditure Method?

Why is understanding the Circular Flow important?

What is a key objective of South Africa's economic initiatives such as ASGISA and the New Economic Growth Path?

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

What is a key challenge facing South Africa's energy infrastructure?

What is a significant historical barriers faced by black South Africans in the primary sector?

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

What is a key aspect of South Africa's international trade strategy?

What is a historical barrier faced by black South Africans in the secondary sector?

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

What is a key objective of post-apartheid reforms such as the Land Redistribution Programme?

What is the primary goal of South Africa's economic growth initiatives?

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

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

What is a factor that influences the payment associated with natural resources?

What is a characteristic of labor that affects its supply?

What is the primary role of entrepreneurship in the economy?

What is a common way to categorize natural resources?

What is the typical form of compensation for labor?

Why are natural resources essential for economic development?

Which of the following methods of calculating GDP adds up all the expenditures made by households, firms, government and foreigners on final goods and services?

What is the term for the total income earned by residents of a country from abroad, minus the income earned by non-residents in the domestic economy?

Which economic system combines elements of both market capitalism and central planning?

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

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

What is the primary advantage of a centrally planned economy?

Which of the following is a disadvantage of a market economy?

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

What is the main challenge facing the South African government in providing social services?

What does Gross Fixed Capital Formation (I) reflect in the Expenditure Method?

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

What is the primary sector in South Africa's economy responsible for?

What is a key aspect of South Africa's international trade strategy?

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

What is a significant historical barrier faced by black South Africans in the primary sector?

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

What is a key challenge facing South Africa's energy infrastructure?

What is a historical barrier faced by black South Africans in the secondary sector?

What is the primary objective of post-apartheid reforms like the Land Redistribution Programme?

What is the primary composition of the secondary sector?

What is the primary function of capital in an economy?

What is the relationship between households and businesses in the circular flow?

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

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

What is a key difference between renewable and non-renewable natural resources?

Why are natural resources essential for economic development?

What determines the payment associated with natural resources?

What is a characteristic of labor that affects its supply?

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

What is the typical form of compensation for entrepreneurship?