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Questions and Answers

What is Gross National Income (GNI) a measure of?

  • All income earned by a country's non-residents, including income from within the country
  • All income earned by a country's non-residents, excluding income from within the country
  • All income earned by a country's residents, including income from abroad
  • All income earned by a country's residents, excluding income from abroad (correct)

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

  • To reduce national security threats
  • To increase tax revenue
  • To encourage economic growth and stability (correct)
  • To promote free trade

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

  • k = 1 / (1 + MPC)
  • k = 1 / (1 - MPC) (correct)
  • k = MPC / (1 + MPC)
  • k = MPC / (1 - MPC)

    • What does the Laffer Curve illustrate?

    <p>The relationship between tax rates and tax revenue</p> Signup and view all the answers

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

    <p>Economic activity increases</p> Signup and view all the answers

    What is the term for the highest point of the business cycle?

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

    What is the primary challenge of administered prices?

    <p>Leading to shortages or surpluses</p> Signup and view all the answers

    Which theory proposes that business cycles are due to changes in aggregate demand?

    <p>Keynesian theory</p> Signup and view all the answers

    What is the primary goal of free trade?

    <p>To promote specialization and economies of scale</p> Signup and view all the answers

    What is the main goal of monetary policy?

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

    What is the Infant Industry Argument for protectionism?

    <p>Protecting emerging domestic industries from foreign competition</p> Signup and view all the answers

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

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

    What is the primary benefit of specialization in free trade?

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

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

    <p>To encourage local firms to export their goods</p> Signup and view all the answers

    What is the focus of the Schumpeterian theory?

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

    What is the primary risk of bureaucracy in the public sector?

    <p>Stifling innovation and responsiveness</p> Signup and view all the answers

    What is the term for the phase of the business cycle where economic indicators decline?

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

    What is the primary benefit of free trade for consumers?

    <p>Access to a wider variety of goods and services, often at lower prices</p> Signup and view all the answers

    What is the purpose of fiscal policy?

    <p>To stimulate borrowing and investment</p> Signup and view all the answers

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

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

    What is the main purpose of the circular flow model in an open economy?

    <p>To illustrate the economic activities among various sectors</p> Signup and view all the answers

    What is the role of households in the circular flow model?

    <p>To provide labor and resources and receive income</p> Signup and view all the answers

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

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

    What is the difference between real flows and money flows?

    <p>Real flows involve goods and services, while money flows involve financial transactions</p> Signup and view all the answers

    What is the purpose of the financial market?

    <p>To manage the flow of money, including savings and investments</p> Signup and view all the answers

    What is the GDP?

    <p>The total economic output at market prices</p> Signup and view all the answers

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

    <p>To collect taxes and inject spending into the economy</p> Signup and view all the answers

    What is the goods market?

    <p>A market that trades consumer goods and services</p> Signup and view all the answers

    What is the primary objective of the New Economic Paradigm?

    <p>To achieve stable growth without booms and busts</p> Signup and view all the answers

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

    <p>Lagging Indicators</p> Signup and view all the answers

    What is the primary role of the National Government in the public sector?

    <p>Handling national affairs</p> Signup and view all the answers

    What is a key challenge faced by the public sector in provisioning services?

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

    What is the primary objective of economic growth in the public sector?

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

    What is used to plan public sector expenditures over a three-year period?

    <p>Medium-Term Expenditure Framework (MTEF)</p> Signup and view all the answers

    What is the primary instrument of fiscal policy?

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

    What is the purpose of forecasting business cycles?

    <p>To predict future economic activity</p> Signup and view all the answers

    What type of economic indicators move with the economy, indicating the current state of economic affairs?

    <p>Coincident Indicators</p> Signup and view all the answers

    What is the purpose of the public sector in providing essential services?

    <p>To provide structure and essential services</p> Signup and view all the answers

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

    <p>To meet basic needs and develop human resources</p> Signup and view all the answers

    What is the difference between economic growth and economic development?

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

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

    <p>To target halving unemployment and poverty by improving average economic growth</p> Signup and view all the answers

    What is the main focus of the supply-side approach to economic growth?

    <p>Improving the quality of the labor force, managing and using natural resources, and accumulating capital goods</p> Signup and view all the answers

    What is the main goal of the Growth, Employment and Redistribution (GEAR) policy?

    <p>To promote market-led growth and enhance investor confidence</p> Signup and view all the answers

    What is import substitution?

    <p>Encouraging the production of goods domestically that would otherwise be imported</p> Signup and view all the answers

    What is the main difference between the North and South in terms of economic stability?

    <p>The North has higher economic stability, while the South has lower economic stability</p> Signup and view all the answers

    What is the main goal of the New Growth Path (NGP)?

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

    What is the main focus of the demand-side approach to economic growth?

    <p>Increased government expenditure, redistribution of income, and import substitution</p> Signup and view all the answers

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

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

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

    <p>To measure the average price change over time of goods and services purchased by households</p> Signup and view all the answers

    What is the Economically Active Population (EAP) comprised of?

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

    What is the primary function of the Repo Rate?

    <p>To influence other interest rates across the economy</p> Signup and view all the answers

    What does M1, M2, and M3 represent in the economy?

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

    What is the primary purpose of the Terms of Trade?

    <p>To compare the rate of export prices to import prices</p> Signup and view all the answers

    What is the primary indicator of the health environment and effectiveness of healthcare systems?

    <p>Infant and Under-5 Mortality Rates</p> Signup and view all the answers

    What is the primary purpose of the Enrolment Rates indicator?

    <p>To measure the percentage of eligible children attending schools</p> Signup and view all the answers

    What is the primary purpose of the Housing Development indicator?

    <p>To measure the government's ability to provide adequate housing</p> Signup and view all the answers

    What is the primary purpose of international comparisons?

    <p>To secure international aid and plan for sustainable development</p> Signup and view all the answers

    What is the primary purpose of economic and social indicators?

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

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

    <p>Boosting innovation across industries</p> Signup and view all the answers

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

    <p>Detailing specific actions to implement the NIPF</p> Signup and view all the answers

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

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

    What is the significance of governance and transparency in South Africa's industrial strategies?

    <p>Ensuring policy implementation is transparent and accountable</p> Signup and view all the answers

    What is the purpose of Spatial Development Initiatives (SDIs)?

    <p>Targeting underdeveloped areas for infrastructure and industrial development</p> Signup and view all the answers

    What is one of the challenges faced by South Africa's industrial policies?

    <p>Implementation gaps</p> Signup and view all the answers

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

    <p>To evaluate the effectiveness of the policies</p> Signup and view all the answers

    What is one of the economic indicators used to assess South Africa's economic and social well-being?

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

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

    <p>Enhancing competitiveness in the manufacturing sector</p> Signup and view all the answers

    What is the significance of Special Economic Zones (SEZs)?

    <p>Offering incentives like tax breaks and infrastructure support</p> Signup and view all the answers

    What represents the movement of goods and services in the circular flow model?

    <p>Real Flows</p> Signup and view all the answers

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

    <p>Foreign Sector</p> Signup and view all the answers

    What is the primary function of the financial market?

    <p>Managing the flow of money, including savings and investments</p> Signup and view all the answers

    What measures the total economic output at market prices?

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

    Which market deals in resources like labor and capital?

    <p>Factor Market</p> Signup and view all the answers

    What do households provide in the circular flow model?

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

    What is the purpose of the goods market?

    <p>Trades consumer goods and services</p> Signup and view all the answers

    Which sector collects taxes and injects spending into the economy through public services and infrastructure?

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

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

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

    What is illustrated by the Laffer Curve?

    <p>The relationship between tax rates and tax revenue</p> Signup and view all the answers

    What is a challenge faced by the public sector in provisioning services?

    <p>Inefficient bureaucracy and moral hazard</p> Signup and view all the answers

    What is protectionism?

    <p>Government actions to restrict international trade</p> Signup and view all the answers

    What is the Infant Industry Argument for protectionism?

    <p>To protect emerging domestic industries</p> Signup and view all the answers

    What is the primary benefit of specialization in free trade?

    <p>Fostering innovation and economic efficiency</p> Signup and view all the answers

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

    <p>To encourage local firms to export goods</p> Signup and view all the answers

    What is the primary risk of bureaucracy in the public sector?

    <p>Moral hazard and stifling innovation</p> Signup and view all the answers

    What is the primary objective of economic growth in the public sector?

    <p>To achieve social and economic objectives</p> Signup and view all the answers

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

    <p>To reduce dependency on imports</p> Signup and view all the answers

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

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

    What is the primary focus of the Two-Sector Model in understanding the multiplier effect?

    <p>Household and firm interactions</p> Signup and view all the answers

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

    <p>To boost innovation across industries</p> Signup and view all the answers

    What is the purpose of Special Economic Zones (SEZs)?

    <p>To offer incentives to attract businesses and stimulate economic activities</p> Signup and view all the answers

    What is the term for the phase of the business cycle where economic indicators show significant growth?

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

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

    <p>To enhance competitiveness in the manufacturing sector</p> Signup and view all the answers

    What is the role of technological innovation in the Schumpeterian Theory of business cycles?

    <p>It leads to bursts of activity followed by periods of adjustment</p> Signup and view all the answers

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

    <p>To address high unemployment rates through industrial activities</p> Signup and view all the answers

    What is the primary tool used by the government to stabilize economic activity through monetary policy?

    <p>Interest rates and control of money supply</p> Signup and view all the answers

    What is the term for the highest point of the business cycle, where economic activity reaches its maximum?

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

    What is the purpose of Spatial Development Initiatives (SDIs)?

    <p>To target underdeveloped areas for infrastructure and industrial development</p> Signup and view all the answers

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

    <p>k = 1 / 1 - MPC</p> Signup and view all the answers

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

    <p>Economic growth, employment, investment levels, and technological advancement</p> Signup and view all the answers

    What is a challenge faced by South Africa's industrial policies?

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

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

    <p>To increase government spending and reduce taxes</p> Signup and view all the answers

    What is the purpose of Industrial Policy Action Plans (IPAPs)?

    <p>To detail specific actions to implement the National Industrial Policy Framework (NIPF)</p> Signup and view all the answers

    What is the term for the phase of the business cycle where economic indicators decline?

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

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

    <p>Changes in aggregate demand</p> Signup and view all the answers

    What is the main goal of regional development in South Africa's industrial policy?

    <p>To reduce regional disparities</p> Signup and view all the answers

    What is the purpose of understanding business cycles?

    <p>To plan and forecast economic policy, business strategy, and investment decisions</p> Signup and view all the answers

    What is the primary goal of the New Economic Paradigm?

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

    What is the primary focus of demand-side policies?

    <p>Regulating aggregate demand through fiscal stimuli or monetary adjustments</p> Signup and view all the answers

    What type of economic indicators predict future economic activity?

    <p>Leading indicators</p> Signup and view all the answers

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

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

    What is the primary challenge faced by the public sector in provisioning services?

    <p>Inefficiency due to lack of clear performance metrics and accountability</p> Signup and view all the answers

    What is the primary objective of economic growth in the public sector?

    <p>To promote sustainable growth through sectoral supports</p> Signup and view all the answers

    What is used to plan public sector expenditures over a three-year period?

    <p>The Medium-Term Expenditure Framework (MTEF)</p> Signup and view all the answers

    What is the primary instrument of fiscal policy?

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

    What is the purpose of forecasting business cycles?

    <p>To prepare for economic fluctuations and mitigate the adverse effects of downturns</p> Signup and view all the answers

    What type of economic indicators move with the economy, indicating the current state of economic affairs?

    <p>Coincident indicators</p> Signup and view all the answers

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

    <p>Meeting basic needs, developing human resources, and building the economy</p> Signup and view all the answers

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

    <p>Halving unemployment and poverty by improving average economic growth</p> Signup and view all the answers

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

    <p>Demand-side focuses on increasing government expenditure, while supply-side focuses on improving labor productivity</p> Signup and view all the answers

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

    <p>Increasing industrial activity, diversifying the economy, and enhancing regional development</p> Signup and view all the answers

    What is the main focus of the Growth, Employment and Redistribution (GEAR) policy?

    <p>Aims at market-led growth, fiscal and monetary discipline, and enhancing investor confidence</p> Signup and view all the answers

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

    <p>Focuses on job creation and identifying job drivers like infrastructure and agriculture</p> Signup and view all the answers

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

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

    What is the primary goal of the supply-side approach to economic growth?

    <p>Improving the quality of the labor force, managing natural resources, and accumulating capital goods</p> Signup and view all the answers

    What is the primary benefit of the demand-side approach to economic growth?

    <p>Increasing government expenditure to stimulate economic activity</p> Signup and view all the answers

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

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

    What is the Consumer Price Index (CPI)?

    <p>A measure of the average price change over time of goods and services purchased by households</p> Signup and view all the answers

    What is the Economically Active Population (EAP)?

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

    What is the Exchange Rate?

    <p>The value of the South African rand against other currencies</p> Signup and view all the answers

    What is the Repo Rate?

    <p>The rate at which the South African Reserve Bank lends money to commercial banks</p> Signup and view all the answers

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

    <p>To measure the liquidity available in the economy</p> Signup and view all the answers

    What is the primary purpose of the Terms of Trade?

    <p>To compare the rate of export prices to import prices</p> Signup and view all the answers

    What is the primary purpose of the Infant and Under-5 Mortality Rates?

    <p>To measure the effectiveness of healthcare systems</p> Signup and view all the answers

    What is the primary purpose of the Enrolment Rates?

    <p>To measure the percentage of eligible children attending schools</p> Signup and view all the answers

    What is the primary purpose of the Housing Development indicator?

    <p>To measure the government's ability to provide adequate housing</p> Signup and view all the answers

    What is the primary purpose of the Electricity, Water, and Sanitation indicator?

    <p>To measure the access to basic services essential for quality of life</p> Signup and view all the answers

    Which of the following sectors in the circular flow model involves trade activities?

    <p>Foreign Sector</p> Signup and view all the answers

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

    <p>Manages the flow of money, including savings and investments</p> Signup and view all the answers

    Which of the following is a type of flow in the circular flow model?

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

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

    <p>Trades consumer goods and services</p> Signup and view all the answers

    Which of the following sectors in the circular flow model provides labor and resources?

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

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

    <p>Collects taxes and injects spending into the economy</p> Signup and view all the answers

    What does GDP measure in the circular flow model?

    <p>The total economic output at market prices</p> Signup and view all the answers

    What is the primary focus of the circular flow model?

    <p>To describe the movement of money and goods across different sectors of the economy</p> Signup and view all the answers

    Which income earned by a country's residents is accounted for in GNI, adjusting for income received from abroad?

    <p>All income earned by a country's residents</p> Signup and view all the answers

    What is the result of initial increases in spending, according to the multiplier effect?

    <p>A more significant overall increase in economic output</p> Signup and view all the answers

    What is the primary difference between the Two-Sector Model and the Three and Four-Sector Models?

    <p>The inclusion of government and foreign transactions</p> Signup and view all the answers

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

    <p>Economic indicators decline</p> Signup and view all the answers

    What is the primary goal of monetary policy?

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

    Which theory suggests that business cycles are driven by external shocks and normal market processes?

    <p>Classical and Neoclassical Theories</p> Signup and view all the answers

    What is the focus of the Schumpeterian Theory?

    <p>The role of technological innovation in causing business cycles</p> Signup and view all the answers

    What is the primary goal of fiscal policy?

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

    Which phase of the business cycle is characterized by rising consumer demand and increased factory production?

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

    What is the primary goal of understanding business cycles?

    <p>To plan and forecast in economic policy, business strategy, and investment decisions</p> Signup and view all the answers

    What is the primary goal of the New Economic Paradigm?

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

    What type of economic indicators predict future economic activity?

    <p>Leading indicators</p> Signup and view all the answers

    What is the primary role of the public sector in the economy?

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

    What is the primary challenge faced by the public sector in provisioning services?

    <p>Lack of accountability and efficiency</p> Signup and view all the answers

    What is the primary objective of economic growth in the public sector?

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

    What is used to plan public sector expenditures over a three-year period?

    <p>The Medium-Term Expenditure Framework (MTEF)</p> Signup and view all the answers

    What is the primary instrument of fiscal policy?

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

    What is the purpose of forecasting business cycles?

    <p>To better prepare for economic fluctuations and make informed decisions</p> Signup and view all the answers

    What type of economic indicators move with the economy, indicating the current state of economic affairs?

    <p>Coincident indicators</p> Signup and view all the answers

    What is the primary goal of demand-side policies?

    <p>To regulate aggregate demand and manage economic cycles</p> Signup and view all the answers

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

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

    Which of the following is a common tool used to implement protectionism?

    <p>Both A and B</p> Signup and view all the answers

    What is the primary argument for free trade?

    <p>Specialization and economic efficiency</p> Signup and view all the answers

    What is the primary challenge faced by the public sector in provisioning services?

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

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

    <p>To encourage local firms to export</p> Signup and view all the answers

    What is the primary risk of bureaucracy in the public sector?

    <p>Stifling innovation and responsiveness</p> Signup and view all the answers

    What is the primary benefit of free trade for consumers?

    <p>Increased access to goods and services</p> Signup and view all the answers

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

    <p>To encourage local production of goods</p> Signup and view all the answers

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

    <p>To provide services not suitable for private sector delivery</p> Signup and view all the answers

    What is the primary argument for protectionism in terms of national security?

    <p>To ensure the self-sufficiency of crucial industries</p> Signup and view all the answers

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

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

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

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

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

    <p>To reduce dependence on imported goods and stimulate domestic production</p> Signup and view all the answers

    What is the main goal of the Growth, Employment and Redistribution (GEAR) policy?

    <p>To promote economic growth through market-led growth and fiscal discipline</p> Signup and view all the answers

    What is the primary focus of the supply-side approach to economic growth?

    <p>Improving the quality of the labor force through education and training</p> Signup and view all the answers

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

    <p>To promote industrial development, diversify the economy, and enhance regional development</p> Signup and view all the answers

    What is the main difference between the North and South in terms of economic stability?

    <p>The North has a higher level of human development, while the South has a lower level of human development</p> Signup and view all the answers

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

    <p>To halve unemployment and poverty by improving average economic growth</p> Signup and view all the answers

    What is the primary focus of the demand-side approach to economic growth?

    <p>Increasing government expenditure on public goods and services</p> Signup and view all the answers

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

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

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

    <p>To guide the overall industrial strategy of South Africa</p> Signup and view all the answers

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

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

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

    <p>To enhance competitiveness in the manufacturing sector</p> Signup and view all the answers

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

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

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

    <p>Attraction of domestic and international investors</p> Signup and view all the answers

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

    <p>Implementation gaps</p> Signup and view all the answers

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

    <p>To assess the impact on economic growth</p> Signup and view all the answers

    What is the primary focus of South Africa's Regional Development initiatives?

    <p>To reduce economic disparities between regions</p> Signup and view all the answers

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

    <p>To boost innovation across industries</p> Signup and view all the answers

    What is the primary benefit of South Africa's Spatial Development Initiatives (SDIs)?

    <p>Targeted infrastructure development</p> Signup and view all the answers

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

    <p>To track the average price change of goods and services purchased by households</p> Signup and view all the answers

    What is the significance of the Terms of Trade in Foreign Trade?

    <p>It compares the rate of export prices to import prices</p> Signup and view all the answers

    What is the Repo Rate, and what does it influence?

    <p>The Repo Rate is the rate at which the South African Reserve Bank lends money to commercial banks, influencing other interest rates</p> Signup and view all the answers

    What do the aggregates M1, M2, and M3 represent in the Money Supply?

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

    What is the significance of the Infant and Under-5 Mortality Rates in Health and Nutrition?

    <p>They measure the effectiveness of healthcare systems</p> Signup and view all the answers

    What is the purpose of analyzing economic and social indicators in Policy Formulation?

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

    What is the significance of the Employment Rate in Employment Indicators?

    <p>It reflects the proportion of the Economically Active Population that is employed</p> Signup and view all the answers

    What is the primary purpose of International Benchmarking?

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

    What is the significance of the Population Growth rate in Demographics?

    <p>It impacts the demand for goods, services, and infrastructure</p> Signup and view all the answers

    What is the primary purpose of Uses of These Indicators in Investment Decisions?

    <p>To assess the economic stability and growth potential of South Africa, influencing investment flows</p> Signup and view all the answers

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

    <p>To facilitate international trade and exchange of currencies</p> Signup and view all the answers

    What does the goods market trade in the circular flow model?

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

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

    <p>Real flows refer to the movement of goods and services, while money flows refer to the financial transactions</p> Signup and view all the answers

    What is the primary goal of the circular flow model in an open economy?

    <p>To illustrate the interactions between various sectors and their impact on national accounts and economic indicators</p> Signup and view all the answers

    What is the role of households in the circular flow model?

    <p>To provide labor and resources, receiving income used for consumption, savings, and taxes</p> Signup and view all the answers

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

    <p>To manage the flow of money, including savings and investments</p> Signup and view all the answers

    What type of prices are used in the production approach?

    <p>Basic Prices</p> Signup and view all the answers

    What is the primary focus of the government in the circular flow model?

    <p>To collect taxes and inject spending into the economy through public services and infrastructure</p> Signup and view all the answers

    In the multiplier formula, what does MPC represent?

    <p>Marginal Propensity to Consume</p> Signup and view all the answers

    What does GDP measure in the circular flow model?

    <p>The total economic output at market prices</p> Signup and view all the answers

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

    <p>Reduced factory production</p> Signup and view all the answers

    Which theory explains business cycles as driven by changes in aggregate demand?

    <p>Keynesian Theory</p> Signup and view all the answers

    What is the primary goal of monetary policy?

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

    What is the term for the phase of the business cycle where economic indicators decline?

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

    What is the term for the highest point of the business cycle?

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

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

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

    What is the focus of the Schumpeterian theory?

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

    What is the purpose of fiscal policy?

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

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

    <p>To meet basic needs and develop human resources</p> Signup and view all the answers

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

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

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

    <p>Supply-side approach</p> Signup and view all the answers

    What is the main limitation of administered prices?

    <p>They can lead to shortages or surpluses</p> Signup and view all the answers

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

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

    What is the main difference between the North and South in terms of economic stability?

    <p>Income levels and economic stability</p> Signup and view all the answers

    What is the primary argument for protectionism in terms of national security?

    <p>To ensure the self-sufficiency of crucial industries</p> Signup and view all the answers

    What is the primary benefit of specialization in free trade?

    <p>It fosters innovation and improves international relations</p> Signup and view all the answers

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

    <p>To halve unemployment and poverty</p> Signup and view all the answers

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

    <p>To create jobs and identify job drivers</p> Signup and view all the answers

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

    <p>To encourage local firms to export their goods</p> Signup and view all the answers

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

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

    What is the primary limitation of subsidies in the context of government spending?

    <p>They can distort market operations and lead to inefficiencies</p> Signup and view all the answers

    What is the primary objective of free trade policies?

    <p>To eliminate discrimination against imports and exports</p> Signup and view all the answers

    What is the primary benefit of the demand-side approach to economic growth?

    <p>Redistribution of income to enhance consumption</p> Signup and view all the answers

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

    <p>Decisions are based on incomplete or inaccurate information</p> Signup and view all the answers

    What is the primary goal of the supply-side approach to economic growth?

    <p>To improve productivity and competitiveness through education and training</p> Signup and view all the answers

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

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

    What is the primary benefit of free trade for consumers?

    <p>They have access to a wider variety of goods and services, often at lower prices</p> Signup and view all the answers

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

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

    What is the primary objective of the New Economic Paradigm?

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

    What is the main purpose of forecasting business cycles?

    <p>To enable effective economic planning and policymaking</p> Signup and view all the answers

    What is the primary role of the National Government in the public sector?

    <p>To handle national affairs like defense and education</p> Signup and view all the answers

    What is the primary challenge faced by the public sector in provisioning services?

    <p>Lack of clear performance metrics and accountability</p> Signup and view all the answers

    What is the primary objective of economic growth in the public sector?

    <p>To promote sustainable growth through various sectoral supports</p> Signup and view all the answers

    What is used to plan public sector expenditures over a three-year period?

    <p>The Medium-Term Expenditure Framework (MTEF)</p> Signup and view all the answers

    What is the primary instrument of fiscal policy?

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

    What type of economic indicators predict future economic activity?

    <p>Leading indicators</p> Signup and view all the answers

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

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

    What is the main focus of supply-side policies?

    <p>Improving productivity and efficiency through technological advancements</p> Signup and view all the answers

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

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

    What is the purpose of the National Industrial Policy Framework (NIPF)?

    <p>To guide the overall industrial strategy of South Africa</p> Signup and view all the answers

    What is the focus of the Integrated Manufacturing Strategy (IMS)?

    <p>To enhance competitiveness in the manufacturing sector</p> Signup and view all the answers

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

    <p>To boost innovation across industries</p> Signup and view all the answers

    What is the purpose of the Spatial Development Initiatives (SDIs)?

    <p>To target underdeveloped areas for infrastructure and industrial development</p> Signup and view all the answers

    What is the purpose of the Special Economic Zones (SEZs)?

    <p>To offer incentives to attract businesses and stimulate economic activities</p> Signup and view all the answers

    What is a key challenge faced by South Africa's industrial strategies?

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

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

    <p>To evaluate the impact on employment, investment, and technological advancement</p> Signup and view all the answers

    What is the purpose of the Industrial Development Zones (IDZs)?

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

    What is the purpose of the National Government in the public sector?

    <p>To provide essential services to the public</p> Signup and view all the answers

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

    <p>To measure the average price change of goods and services purchased by households</p> Signup and view all the answers

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

    <p>The Employment Rate is the proportion of the EAP that is employed, while the Unemployment Rate is the percentage of the labor force that is unemployed</p> Signup and view all the answers

    What is the primary purpose of the Terms of Trade?

    <p>To compare the rate of export prices to import prices</p> Signup and view all the answers

    What is the primary function of the Repo Rate?

    <p>To influence the interest rates across the economy</p> Signup and view all the answers

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

    <p>To measure the money supply and liquidity in the economy</p> Signup and view all the answers

    What is the primary purpose of the Infant and Under-5 Mortality Rates?

    <p>To measure the health environment and effectiveness of healthcare systems</p> Signup and view all the answers

    What is the primary purpose of Public Spending on Education?

    <p>To indicate the government's commitment to improving education</p> Signup and view all the answers

    What is the primary purpose of the Urbanisation Rate?

    <p>To indicate the movement of the population towards urban areas</p> Signup and view all the answers

    What is the primary purpose of International Comparisons?

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

    What is the primary purpose of Policy Formulation using economic and social indicators?

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

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

    <p>To facilitate trade activities, including exports and imports</p> Signup and view all the answers

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

    <p>Real flows refer to the movement of goods and services, while money flows refer to financial transactions</p> Signup and view all the answers

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

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

    What is the role of households in the circular flow model?

    <p>To provide labor and resources, receiving income used for consumption, savings, and taxes</p> Signup and view all the answers

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

    <p>To collect taxes and inject spending into the economy through public services and infrastructure</p> Signup and view all the answers

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

    <p>To manage the flow of money, including savings and investments</p> Signup and view all the answers

    What is the significance of the circular flow model in an open economy?

    <p>It illustrates the economic activities among various sectors and their interactions through markets</p> Signup and view all the answers

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

    <p>The total economic output at market prices</p> Signup and view all the answers

    What type of prices are used in the production approach to calculating Gross National Income (GNI)?

    <p>Basic Prices</p> Signup and view all the answers

    In the two-sector model, what determines the value of the multiplier?

    <p>Marginal Propensity to Consume (MPC) and Save (MPS)</p> Signup and view all the answers

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

    <p>Economic indicators decline</p> Signup and view all the answers

    Which theory explains business cycles by focusing on external shocks and normal market processes?

    <p>Classical and Neoclassical Theories</p> Signup and view all the answers

    What is the primary tool of monetary policy?

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

    What is the name of the phase of the business cycle that marks the highest point of economic activity?

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

    What is the focus of the Schumpeterian theory of business cycles?

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

    What is the primary goal of fiscal policy?

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

    What is the term for the phase of the business cycle where economic indicators decline?

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

    What is the primary goal of government policy in response to business cycles?

    <p>To smooth out business cycles</p> Signup and view all the answers

    What is the main focus of the supply-side approach to economic growth?

    <p>Improving the quality of the labor force and accumulating capital goods</p> Signup and view all the answers

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

    <p>Meeting basic needs, developing human resources, and building the economy</p> Signup and view all the answers

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

    <p>Halving unemployment and poverty by improving average economic growth</p> Signup and view all the answers

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

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

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

    <p>Supporting domestic industries to increase their exports</p> Signup and view all the answers

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

    <p>Encouraging domestic production of goods that would otherwise be imported</p> Signup and view all the answers

    What is the primary focus of the demand-side approach to economic growth?

    <p>Increasing government expenditure and redistributing income</p> Signup and view all the answers

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

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

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

    <p>A significant disparity in income levels and economic stability</p> Signup and view all the answers

    What is the main goal of the Growth, Employment and Redistribution (GEAR) policy?

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

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

    <p>To measure the average price change of goods and services purchased by households</p> Signup and view all the answers

    What is the purpose of the Repo Rate?

    <p>To influence other interest rates across the economy</p> Signup and view all the answers

    What is the primary goal of the New Economic Paradigm?

    <p>To smooth out the volatility in business cycles</p> Signup and view all the answers

    What type of economic indicators predict future economic activity?

    <p>Leading Indicators</p> Signup and view all the answers

    What is the significance of the Terms of Trade?

    <p>It compares the rate of export prices to import prices</p> Signup and view all the answers

    What is the primary role of the public sector in the economy?

    <p>To provide essential services</p> Signup and view all the answers

    What is the focus of social indicators?

    <p>To assess the overall health and longevity of the population</p> Signup and view all the answers

    What is the significance of the Infant and Under-5 Mortality Rates?

    <p>They measure the effectiveness of healthcare systems</p> Signup and view all the answers

    What is the primary challenge faced by the public sector in provisioning services?

    <p>Efficiency challenges</p> Signup and view all the answers

    What is the purpose of the Employment Rate?

    <p>To reflect the proportion of the EAP that is employed</p> Signup and view all the answers

    What is the primary objective of economic growth in the public sector?

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

    What is used to plan public sector expenditures over a three-year period?

    <p>Medium-Term Expenditure Framework (MTEF)</p> Signup and view all the answers

    What is the significance of the M1, M2, and M3 aggregates?

    <p>They include currency in circulation and different types of bank deposits</p> Signup and view all the answers

    What is the purpose of international comparisons?

    <p>To compare South Africa's performance with global standards</p> Signup and view all the answers

    What is the primary instrument of fiscal policy?

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

    What is the significance of the Urbanisation Rate?

    <p>It indicates the movement of the population towards urban areas</p> Signup and view all the answers

    What is the purpose of forecasting business cycles?

    <p>To mitigate the adverse effects of downturns</p> Signup and view all the answers

    What type of economic indicators move with the economy, indicating the current state of economic affairs?

    <p>Coincident Indicators</p> Signup and view all the answers

    What is the primary use of economic and social indicators?

    <p>To identify areas needing intervention and evaluate policy impact</p> Signup and view all the answers

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

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

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

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

    What is the main disadvantage of administered prices?

    <p>Leading to shortages or surpluses</p> Signup and view all the answers

    What is the primary benefit of specialization in free trade?

    <p>Enhancing consumer choice</p> Signup and view all the answers

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

    <p>To increase participation in the global market</p> Signup and view all the answers

    What is the primary risk of bureaucracy in the public sector?

    <p>Stifling innovation and responsiveness</p> Signup and view all the answers

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

    <p>To strengthen domestic industries and reduce dependency on foreign goods</p> Signup and view all the answers

    What is the primary benefit of free trade for consumers?

    <p>Access to a wider variety of goods and services</p> Signup and view all the answers

    What is the primary goal of protectionism?

    <p>To protect local businesses and jobs from foreign competition</p> Signup and view all the answers

    What is the primary challenge of the public sector in provisioning services?

    <p>Efficiency and accountability</p> Signup and view all the answers

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

    <p>To achieve social and economic objectives</p> Signup and view all the answers

    What is the primary objective of South Africa's National Industrial Policy Framework?

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

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

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

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

    <p>To offer incentives to attract investments</p> Signup and view all the answers

    Which of the following is a challenge faced by South Africa's industrial policies?

    <p>Implementation gaps</p> Signup and view all the answers

    What is the primary focus of South Africa's National Research and Development Strategy?

    <p>Boosting innovation across industries</p> Signup and view all the answers

    What is the primary goal of South Africa's Integrated Manufacturing Strategy?

    <p>Enhancing competitiveness in the manufacturing sector</p> Signup and view all the answers

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

    <p>Promoting equitable economic development across different regions</p> Signup and view all the answers

    Which of the following is a key aspect of South Africa's industrial strategies in terms of governance and transparency?

    <p>Ensuring policy implementation is transparent and accountable</p> Signup and view all the answers

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

    <p>Targeting underdeveloped areas for infrastructure and industrial development</p> Signup and view all the answers

    Which of the following is a challenge faced by South Africa's industrial policies in terms of skills development?

    <p>Bridging the skills gap in the workforce</p> Signup and view all the answers

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

    <p>Reduced consumer spending</p> Signup and view all the answers

    What is the main difference between the two-sector and three-sector models of the multiplier effect?

    <p>Inclusion of government and foreign transactions</p> Signup and view all the answers

    Which theory suggests that business cycles are driven by external shocks and normal market processes will always tend toward equilibrium unless disturbed by external factors?

    <p>Classical and neoclassical theories</p> Signup and view all the answers

    What is the purpose of monetary policy in stabilizing economic activity?

    <p>To control inflation through interest rates and money supply</p> Signup and view all the answers

    What is the focus of the Schumpeterian theory of business cycles?

    <p>Technological innovation and its impact on economic activity</p> Signup and view all the answers

    What is the primary goal of fiscal policy during economic downturns?

    <p>To stimulate demand through increased government spending and reduced taxes</p> Signup and view all the answers

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

    <p>To manage the flow of money and facilitate savings and investments</p> Signup and view all the answers

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

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

    What is the primary objective of measuring Gross Domestic Product (GDP)?

    <p>To measure the economic output at market prices</p> Signup and view all the answers

    Which of the following is an exogenous factor influencing business cycles?

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

    What is the primary goal of government policy in response to business cycles?

    <p>To smooth out the cycles and reduce their impact</p> Signup and view all the answers

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

    <p>To facilitate trade activities and manage the flow of currency</p> Signup and view all the answers

    What is the primary difference between real flows and money flows?

    <p>Real flows involve the movement of goods and services, while money flows involve the financial transactions</p> Signup and view all the answers

    What is the term for the phase of the business cycle where economic indicators show significant growth?

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

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

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

    What is the role of households in the circular flow model?

    <p>To provide labor and resources, receiving income used for consumption, savings, and taxes</p> Signup and view all the answers

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

    <p>To deal in resources like labor and capital</p> Signup and view all the answers

    What is the primary objective of understanding the multiplier effect in the circular flow model?

    <p>To capture the extent to which additional spending can amplify economic activity</p> Signup and view all the answers

    What is the primary objective of the New Economic Paradigm?

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

    What type of economic indicators predict future economic activity by moving ahead of the business cycle?

    <p>Leading Indicators</p> Signup and view all the answers

    What is the primary role of the National Government in the public sector?

    <p>To handle national affairs like defense and education</p> Signup and view all the answers

    What is the primary challenge faced by the public sector in provisioning services?

    <p>Inefficient use of resources</p> Signup and view all the answers

    What is the primary objective of economic growth in the public sector?

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

    What is used to plan public sector expenditures over a three-year period?

    <p>The Medium-Term Expenditure Framework (MTEF)</p> Signup and view all the answers

    What is the primary instrument of fiscal policy?

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

    What is the purpose of forecasting business cycles?

    <p>To predict future economic activity</p> Signup and view all the answers

    What type of economic indicators move with the economy, indicating the current state of economic affairs?

    <p>Coincident Indicators</p> Signup and view all the answers

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

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

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

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

    What is the name of the curve that illustrates the relationship between tax rates and tax revenue?

    <p>Laffer Curve</p> Signup and view all the answers

    What is the term for the failure of government policies and actions to efficiently allocate resources?

    <p>Public Sector Failure</p> Signup and view all the answers

    What is the primary argument in favor of protectionism?

    <p>Protecting emerging domestic industries from foreign competition</p> Signup and view all the answers

    What is the term for the policy of eliminating discrimination against imports and exports?

    <p>Free Trade</p> Signup and view all the answers

    What is the primary benefit of specialization in free trade?

    <p>Economies of scale and improved productivity</p> Signup and view all the answers

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

    <p>To encourage local firms to export goods</p> Signup and view all the answers

    What is the primary challenge of administered prices?

    <p>Shortages or surpluses depending on price levels</p> Signup and view all the answers

    What is the primary risk of bureaucracy in the public sector?

    <p>Excessive bureaucracy stifling innovation</p> Signup and view all the answers

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

    <p>To ensure social welfare and social justice</p> Signup and view all the answers

    Which of the following frameworks aims to boost innovation across industries in South Africa?

    <p>National Research and Development Strategy (NRDS)</p> Signup and view all the answers

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

    <p>Reducing dependence on traditional sectors like mining</p> Signup and view all the answers

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

    <p>Enhancing competitiveness in the manufacturing sector</p> Signup and view all the answers

    Which of the following is a key principle of South Africa's industrial strategies?

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

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

    <p>Attracting businesses and stimulating economic activities</p> Signup and view all the answers

    What is the primary focus of the National Industrial Policy Framework (NIPF)?

    <p>Guiding the overall industrial strategy of South Africa</p> Signup and view all the answers

    What is a key challenge faced by South Africa's industrial policies?

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

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

    <p>Detailing specific actions to implement the NIPF</p> Signup and view all the answers

    What is a key aspect of evaluating South Africa's industrial strategies?

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

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

    <p>Reducing regional disparities</p> Signup and view all the answers

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

    <p>To meet basic needs, develop human resources, build the economy, and democratize state and society</p> 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?

    <p>Supply-side approach</p> Signup and view all the answers

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

    <p>To halve unemployment and poverty by improving average economic growth</p> Signup and view all the answers

    What is the main difference between the North and South in terms of economic stability?

    <p>Disparity in income levels and access to resources</p> Signup and view all the answers

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

    <p>Enhancing regional development and industrial activity</p> Signup and view all the answers

    What is the main goal of the Growth, Employment and Redistribution (GEAR) policy?

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

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

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

    What is the primary focus of the demand-side approach to economic growth?

    <p>Increasing government expenditure, redistributing income, and promoting import substitution</p> Signup and view all the answers

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

    <p>To create jobs and identify job drivers like infrastructure and agriculture</p> Signup and view all the answers

    What is the primary benefit of the supply-side approach to economic growth?

    <p>Improved productivity and competitiveness through innovation and technological advancement</p> Signup and view all the answers

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

    <p>To compare the prices of exports and imports</p> Signup and view all the answers

    What is the primary benefit of analyzing the Infant and Under-5 Mortality Rates?

    <p>To evaluate the effectiveness of healthcare systems</p> Signup and view all the answers

    What is the primary role of the Producer Price Index (PPI) in measuring inflation?

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

    What is the primary purpose of the M1, M2, and M3 aggregates in measuring money supply?

    <p>To reflect the liquidity available in the economy</p> Signup and view all the answers

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

    <p>To compare South Africa's performance with that of other countries</p> Signup and view all the answers

    What is the primary purpose of the Unemployment Rate indicator?

    <p>To reflect the percentage of the labor force that is unemployed but actively seeking employment</p> Signup and view all the answers

    What is the primary benefit of analyzing the Access to Basic Services indicator?

    <p>To measure the quality of life and infrastructural development</p> Signup and view all the answers

    What is the primary role of the Repo Rate in influencing interest rates across the economy?

    <p>To determine the rate at which the South African Reserve Bank lends money to commercial banks</p> Signup and view all the answers

    What is the primary purpose of analyzing the Enrolment Rates in education?

    <p>To measure the impact of education on future workforce skills and economic growth</p> Signup and view all the answers

    What is the primary benefit of analyzing the Population Growth indicator?

    <p>To measure the impact of population growth on demand for goods and services</p> Signup and view all the answers

    What is the primary purpose of distinguishing between Basic Prices, Factor Cost, and Market Prices?

    <p>To facilitate the production, income, and expenditure methods of calculating GNI</p> Signup and view all the answers

    According to the Two-Sector Model, what influences spending adjustments?

    <p>Marginal Propensities to Consume and Save</p> Signup and view all the answers

    What is a critical point in a business cycle that marks the end of a recession?

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

    Which theory suggests that business cycles are driven by external shocks and normal market processes?

    <p>Classical and Neoclassical Theories</p> Signup and view all the answers

    What is the primary goal of monetary policy?

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

    What is the primary role of government in the Keynesian Theory?

    <p>To intervene in the market to smooth out business cycles</p> Signup and view all the answers

    What is the focus of the Schumpeterian Theory?

    <p>The role of technological innovation in causing business cycles</p> Signup and view all the answers

    What is the primary goal of fiscal policy?

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

    What is the primary benefit of understanding business cycles?

    <p>To plan and forecast economic policy</p> Signup and view all the answers

    What is the primary challenge in analyzing business cycles?

    <p>Predicting the timing and severity of recessions</p> Signup and view all the answers

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

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

    Which of the following is a characteristic of protectionism?

    <p>Implementation of tariffs and subsidies</p> Signup and view all the answers

    What is the primary argument against free trade?

    <p>It promotes dumping of goods at lower prices</p> Signup and view all the answers

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

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

    What is the primary risk associated with administered prices?

    <p>Shortages or surpluses, depending on the price set</p> Signup and view all the answers

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

    <p>To encourage local firms to export goods</p> Signup and view all the answers

    Which of the following is a challenge faced by the public sector in provisioning services?

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

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

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

    What is the primary goal of free trade?

    <p>To promote the unrestricted exchange of goods and services</p> Signup and view all the answers

    What is the primary objective of the National Government in the public sector?

    <p>To provide essential services to citizens</p> Signup and view all the answers

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

    <p>Meeting basic needs, developing human resources, and building the economy</p> Signup and view all the answers

    Which of the following approaches to economic growth emphasizes education and training to enhance productivity?

    <p>Supply-side approach</p> Signup and view all the answers

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

    <p>Halving unemployment and poverty</p> Signup and view all the answers

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

    <p>Economic growth focuses on GDP, while economic development focuses on HDI</p> Signup and view all the answers

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

    <p>Increasing industrial activity, diversifying the economy, and enhancing regional development</p> Signup and view all the answers

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

    <p>Promoting market-led growth and fiscal discipline</p> Signup and view all the answers

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

    <p>Job creation and identifying job drivers like infrastructure and agriculture</p> Signup and view all the answers

    What is the primary difference between the North and South in terms of economic stability?

    <p>The North has higher income levels and access to resources, while the South has lower income levels and limited access to resources</p> Signup and view all the answers

    What is the primary goal of the demand-side approach to economic growth?

    <p>Increasing government expenditure to stimulate economic activity</p> Signup and view all the answers

    What is the primary focus of the supply-side approach to economic growth?

    <p>Improving the quality of the labor force and managing natural resources</p> Signup and view all the answers

    What is the primary focus of supply-side policies in achieving economic stability?

    <p>To increase productivity and efficiency through technological advancements</p> Signup and view all the answers

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

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

    What is the primary purpose of forecasting business cycles?

    <p>To understand and analyze business cycles for effective economic planning and policymaking</p> Signup and view all the answers

    What is the primary role of the National Government in the public sector?

    <p>To handle national affairs like defense and education</p> Signup and view all the answers

    What is the primary challenge faced by the public sector in provisioning services?

    <p>Lack of accountability and efficiency</p> Signup and view all the answers

    What is the primary instrument of fiscal policy?

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

    What is the primary objective of the New Economic Paradigm?

    <p>To achieve stable growth without booms and busts through a balanced approach</p> Signup and view all the answers

    What is the primary function of the factor market in the open economy?

    <p>To deal in resources like labor and capital</p> Signup and view all the answers

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

    <p>To plan public sector expenditures over a three-year period</p> Signup and view all the answers

    Which of the following is a key economic indicator that can be measured using the circular flow model?

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

    What is the primary focus of demand-side policies in achieving economic stability?

    <p>To regulate aggregate demand through fiscal stimuli and monetary adjustments</p> Signup and view all the answers

    What is the primary benefit of using a mix of demand-side and supply-side policies in achieving economic stability?

    <p>It creates a balanced approach to economic stability</p> Signup and view all the answers

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

    <p>To collect taxes and inject spending into the economy</p> Signup and view all the answers

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

    <p>Real flows involve goods and services, while money flows involve financial transactions</p> Signup and view all the answers

    Which sector is responsible for injecting spending into the economy through public services and infrastructure in the circular flow model?

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

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

    <p>To manage the flow of money, including savings and investments</p> Signup and view all the answers

    Which of the following is NOT a key component of the circular flow model in an open economy?

    <p>Economically Active Population (EAP)</p> Signup and view all the answers

    What is the primary benefit of understanding the circular flow model in an open economy?

    <p>It provides a comprehensive approach to understanding the interactions between different sectors and their impact on national accounts and economic indicators</p> Signup and view all the answers

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

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

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

    <p>To boost innovation across industries</p> Signup and view all the answers

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

    <p>To offer incentives for business investments</p> Signup and view all the answers

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

    <p>To assess the impact on employment and investment levels</p> Signup and view all the answers

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

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

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

    <p>To enhance competitiveness in the manufacturing sector</p> Signup and view all the answers

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

    <p>To address high unemployment rates and stimulate economic growth</p> Signup and view all the answers

    What is the primary role of Spatial Development Initiatives (SDIs)?

    <p>To target underdeveloped areas for infrastructure and industrial development</p> Signup and view all the answers

    What is the primary objective of the National Industrial Policy Framework (NIPF)?

    <p>To guide the overall industrial strategy of South Africa</p> Signup and view all the answers

    What is the primary focus of South Africa's economic and social indicators?

    <p>To provide insights into the economy and social progress</p> Signup and view all the answers

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

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

    What is the primary indicator of the health environment and effectiveness of healthcare systems?

    <p>Infant and Under-5 Mortality Rates</p> Signup and view all the answers

    What is the primary benefit of international comparisons in the context of economic development?

    <p>To compare the performance of South Africa with that of other countries</p> Signup and view all the answers

    What is the primary purpose of the Terms of Trade?

    <p>To compare the rate of export prices to import prices</p> Signup and view all the answers

    What is the primary role of the Repo Rate in the economy?

    <p>To influence other interest rates across the economy</p> Signup and view all the answers

    What is the primary indicator of the overall health and longevity of the population?

    <p>Life Expectancy</p> Signup and view all the answers

    What is the primary purpose of the Money Supply aggregates?

    <p>To reflect the liquidity available in the economy</p> Signup and view all the answers

    What is the primary goal of policymakers in analyzing economic and social indicators?

    <p>To identify areas needing intervention and evaluate policy impact</p> Signup and view all the answers

    What is the primary purpose of the Employment Rate?

    <p>To measure the proportion of the Economically Active Population that is employed</p> Signup and view all the answers

    What is the primary role of the Exchange Rate in the economy?

    <p>To reflect the value of the South African rand against other currencies</p> Signup and view all the answers

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