June P1 Med
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Questions and Answers

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

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

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

  • Supply of labor
  • Quality of the resource
  • Government regulations
  • Demand for the resource (correct)

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

  • It represents the human effort (correct)
  • It is a non-renewable resource
  • It is a storable resource
  • It is a capital good

    • What is the primary factor that affects the labor supply?

    <p>Population growth and labor force participation rates</p> Signup and view all the answers

    What is the primary form of remuneration for labor?

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

    What is the primary purpose of entrepreneurship in the economy?

    <p>To manage risk and innovate</p> Signup and view all the answers

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

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

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

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

    What is the primary factor that influences wage levels?

    <p>The demand for specific labor types and broader economic conditions</p> Signup and view all the answers

    What is the primary role of entrepreneurs in an economy?

    <p>To initiate and manage businesses, generating wealth and creating jobs</p> Signup and view all the answers

    What is the main purpose of investing in capital goods?

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

    What is the term for the return on invested funds?

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

    What is the circular flow of goods and services?

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

    What is the primary difference between final and intermediate goods?

    <p>Final goods are not used in further production, while intermediate goods are used as inputs</p> Signup and view all the answers

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

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

    What is the component of the circular flow diagram that represents the total spending by households on non-durable, semi-durable, and durable goods as well as services?

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

    What is the term for the spending by businesses on capital goods like machinery and buildings, not including financial investments?

    <p>Investment (I)</p> Signup and view all the answers

    What is the main purpose of capital in economic systems?

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

    What is the Gross National Income (GNI)?

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

    What is the main characteristic of a market economy?

    <p>Predominantly private ownership of production factors</p> Signup and view all the answers

    What is the purpose of the Expenditure Method?

    <p>To calculate the sum of all expenditures made on final goods and services</p> Signup and view all the answers

    What is the main advantage of a mixed economy?

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

    What is the Gross Fixed Capital Formation (I)?

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

    What is the main disadvantage of a centrally planned economy?

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

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

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

    What is the main advantage of a market economy?

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

    What is the importance of understanding the Circular Flow?

    <p>It provides insights into the effects of various sectors on economic growth and stability</p> Signup and view all the answers

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

    <p>Inefficiencies in service delivery</p> 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?

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

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

    <p>To extract and harvest natural resources</p> Signup and view all the answers

    What is the main goal of South Africa's international competitiveness strategy?

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

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

    <p>It generates a significant portion of the country's GDP</p> Signup and view all the answers

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

    <p>Discriminatory policies depriving them of land ownership</p> Signup and view all the answers

    What is a key importance of the secondary sector in South Africa's economy?

    <p>It enhances economic self-sufficiency and growth</p> Signup and view all the answers

    What is a challenge faced by South Africa's energy sector?

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

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

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

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

    <p>Severe limitations in owning businesses and property</p> Signup and view all the answers

    What is a key aspect of South Africa's communication systems?

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

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

    <p>To manage and organize the production process</p> Signup and view all the answers

    What is the key distinction between natural resources and labor?

    <p>One is inherent, and the other is acquired</p> Signup and view all the answers

    What is the main reason for the uneven distribution of natural resources across regions?

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

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

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

    What is the main characteristic of labor that affects its supply?

    <p>Time required for adjustment</p> Signup and view all the answers

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

    <p>Providing raw materials for goods and services</p> Signup and view all the answers

    What is the main factor that influences the remuneration of labor?

    <p>Skill level and education</p> Signup and view all the answers

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

    <p>One can be replenished, and the other cannot</p> Signup and view all the answers

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

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

    Which sector involves the extraction and harvesting of natural resources?

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

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

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

    What was a historical challenge faced by black South Africans in the primary sector?

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

    Which of the following is a characteristic of capital?

    <p>Includes manufactured resources used in further production</p> Signup and view all the answers

    What is the main goal of South Africa's international competitiveness strategy?

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

    What is a key aspect of South Africa's infrastructure?

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

    What is the primary role of entrepreneurs in an economy?

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

    What is a significant challenge faced by South Africa's energy sector?

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

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

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

    What is a key importance of the secondary sector in South Africa's economy?

    <p>It enhances economic self-sufficiency and growth</p> Signup and view all the answers

    Which of the following is a component of the circular flow diagram?

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

    What is the primary reward for entrepreneurship?

    <p>Profit, which compensates for the risks and efforts involved in starting and running a business</p> Signup and view all the answers

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

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

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

    <p>Severe limitations in owning businesses and property</p> Signup and view all the answers

    What is the term for spending by businesses on capital goods like machinery and buildings?

    <p>Investment (I)</p> Signup and view all the answers

    What is the main purpose of capital in economic systems?

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

    What is the term for the return on invested funds?

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

    What is the distinction between final and intermediate goods?

    <p>Final goods are consumed by the end user and not used in further production, while intermediate goods are used as inputs</p> Signup and view all the answers

    Which of the following is an economic aggregate?

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

    What is the primary component of the Expenditure Method?

    <p>C + I + G</p> Signup and view all the answers

    What is the primary goal of a mixed economy?

    <p>To balance economic freedom with government oversight</p> Signup and view all the answers

    What is the primary characteristic of a market economy?

    <p>Predominantly private ownership of production factors</p> Signup and view all the answers

    What is the primary advantage of a centrally planned economy?

    <p>Even distribution of income</p> Signup and view all the answers

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

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

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

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

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

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

    What is the primary importance of understanding the Circular Flow?

    <p>To understand the effects of various sectors on economic growth and stability</p> Signup and view all the answers

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

    <p>Inefficiencies in service delivery</p> Signup and view all the answers

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

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

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

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

    What is the term associated with the payment for the use of natural resources?

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

    What is a key characteristic of natural resources that affects their availability?

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

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

    <p>Organizing and managing resources</p> Signup and view all the answers

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

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

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

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

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

    <p>Provides raw materials for goods and services</p> Signup and view all the answers

    What is a key characteristic of labor that distinguishes it from natural resources?

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

    What is the primary purpose of capital in economic systems?

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

    What is the main distinction between final and intermediate goods?

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

    What is the term for the return on invested funds?

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

    What is the primary role of entrepreneurs in an economy?

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

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

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

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

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

    What is the primary factor that affects the labor supply?

    <p>Wage levels</p> Signup and view all the answers

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

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

    What is the primary form of remuneration associated with entrepreneurship?

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

    What is the primary characteristic of capital that affects productivity and economic output?

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

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

    <p>To enhance its global market position by producing high-quality, competitively priced goods</p> Signup and view all the answers

    Which sector contributes the most to South Africa's GDP?

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

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

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

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

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

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

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

    What is a challenge faced by South Africa's energy sector?

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

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

    <p>To regulate economic activities and provide infrastructure</p> Signup and view all the answers

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

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

    What is a key aspect of South Africa's communication systems?

    <p>Efficient communication systems like the postal service, landlines, and digital communications</p> Signup and view all the answers

    What was a historical challenge faced by black South Africans in the tertiary sector?

    <p>Severe limitations on owning businesses and property</p> Signup and view all the answers

    What is the primary objective of the Expenditure Method?

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

    What is the main characteristic of a mixed economy?

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

    What is the primary advantage of a market economy?

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

    What is the main disadvantage of a centrally planned economy?

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

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

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

    What is the Gross National Income (GNI)?

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

    What is the primary purpose of investing in capital goods?

    <p>To increase production capacity and future economic growth</p> Signup and view all the answers

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

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

    What is the primary importance of understanding the Circular Flow?

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

    What is the Gross Fixed Capital Formation (I)?

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

    What is the primary factor that differentiates natural resources from capital?

    <p>Its ability to be created by human effort</p> Signup and view all the answers

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

    <p>Time required for training</p> Signup and view all the answers

    Which of the following is a characteristic of entrepreneurship?

    <p>Distinctiveness in its characteristics</p> Signup and view all the answers

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

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

    What is the primary importance of a skilled workforce in the economy?

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

    What is the primary distinction between labor and entrepreneurship?

    <p>Characteristics and importance</p> Signup and view all the answers

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

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

    What is the primary form of remuneration associated with labor?

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

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

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

    What is the primary function of capital in the economy?

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

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

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

    Which of the following is a characteristic of entrepreneurs?

    <p>They take risks to launch and expand business ventures</p> Signup and view all the answers

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

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

    What is the primary difference between final and intermediate goods?

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

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

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

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

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

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

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

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

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

    What is a key aspect of South Africa's communication systems?

    <p>Efficient communication systems</p> Signup and view all the answers

    What is a challenge faced by South Africa's energy sector?

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

    What is the primary reward for entrepreneurship?

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

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

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

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

    <p>To manufacture and construct products</p> Signup and view all the answers

    What is the term for the spending by businesses on capital goods like machinery and buildings, not including financial investments?

    <p>Investment (I)</p> Signup and view all the answers

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

    <p>It expands employment and skills training</p> Signup and view all the answers

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

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

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

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

    What is the primary role of capital in economic growth?

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

    What is the primary methodology used to calculate GDP?

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

    What is the primary component of GDP that reflects investment in physical assets?

    <p>Gross Investment (I)</p> Signup and view all the answers

    Which economic system combines the benefits of market capitalism and central planning?

    <p>Mixed Economy</p> Signup and view all the answers

    What is the primary characteristic of a market economy?

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

    What is the primary advantage of a centrally planned economy?

    <p>Even distribution of income</p> Signup and view all the answers

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

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

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

    <p>Inefficiencies in service delivery</p> Signup and view all the answers

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

    <p>Insights into economic policies and decisions</p> Signup and view all the answers

    What is the primary component of GDP that reflects household spending on goods and services?

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

    What is the primary purpose of the Expenditure Method in calculating GDP?

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

    What is the primary role of capital in economic systems?

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

    What type of goods are consumed by the end user and not used in further production?

    <p>Final goods</p> Signup and view all the answers

    What is the term for the return on invested funds?

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

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

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

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

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

    What is the role of entrepreneurs in economic systems?

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

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

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

    What is the primary reward for entrepreneurship?

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

    What is the term for the spending by businesses on capital goods like machinery and buildings, not including financial investments?

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

    What is the circular flow of goods and services?

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

    What is the primary importance of entrepreneurship in the production process?

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

    Which factor of production is inherently non-storable?

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

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

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

    What is the primary distinction between skilled and unskilled labor?

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

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

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

    What is the primary form of remuneration associated with capital?

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

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

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

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

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

    What is the main goal of South Africa's international competitiveness strategy?

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

    Which sector is dominant in developed economies?

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

    What is a key importance of the secondary sector in South Africa's economy?

    <p>It enhances economic self-sufficiency and growth</p> Signup and view all the answers

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

    <p>Limited access to business ownership and property</p> Signup and view all the answers

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

    <p>To extract and harvest natural resources</p> Signup and view all the answers

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

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

    What is a key aspect of South Africa's communication systems?

    <p>Efficient communication systems</p> Signup and view all the answers

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

    <p>To account for income received by residents from investments abroad</p> Signup and view all the answers

    What is the main characteristic of a mixed economy?

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

    What is a challenge faced by South Africa's energy sector?

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

    What is the primary advantage of a market economy?

    <p>Wide product variety and consumer choice</p> Signup and view all the answers

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

    <p>To facilitate domestic and international trade</p> 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?

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

    What is the main disadvantage of a centrally planned economy?

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

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

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

    What is the main advantage of understanding the Circular Flow?

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

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

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

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

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

    What is the primary difference between the Expenditure Method and the Income Method?

    <p>The Expenditure Method calculates the total value of final goods and services produced, while the Income Method accounts for income generated by production</p> Signup and view all the answers

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

    <p>Coexistence of private and public sectors, with government intervention in crucial areas</p> Signup and view all the answers

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