CH SUM : Macro Economics

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What is the primary characteristic of capital?

Consumed by the end user

Return on invested funds

Manufactured resources used in further production (correct)

Economic growth without production capabilities

What is the reward for entrepreneurship?

Profit, compensating for risks and efforts (correct)

Dividend payments

Wages for labor

Interest on invested funds

What is the difference between final and intermediate goods?

Final goods are imported, while intermediate goods are produced domestically

Final goods are consumed by the end user, while intermediate goods are used as inputs in production (correct)

Final goods are produced domestically, while intermediate goods are imported

Final goods are used in further production, while intermediate goods are consumed by the end user

What is the purpose of the circular flow diagram?

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

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

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

What is the result of investment in capital goods?

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

What is the role of entrepreneurs in the economy?

To initiate and manage businesses, identifying new opportunities and innovatively combining production factors (A) 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?

Consumption (C) (B) Signup and view all the answers

What affects the rate of return on invested funds?

Risk, liquidity, investment duration, capital demand, funding supply, and monetary policy (C) Signup and view all the answers

What is the term for the economic concepts that illustrate how capital affects productivity and economic output?

Capital Widening and Deepening (C) Signup and view all the answers

What are the four primary factors of production?

Natural Resources, Labor, Capital, Entrepreneurship (D) Signup and view all the answers

What is the payment associated with natural resources?

Rent (C) Signup and view all the answers

What type of labor is heavily reliant on the level of skills and education?

Skilled labor (C) Signup and view all the answers

What affects the supply of natural resources?

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

What is the characteristic of natural resources that varies across regions?

Distribution (B) Signup and view all the answers

What is the outcome of effective management of natural resources?

Sustainable development (D) Signup and view all the answers

What is the characteristic of labor that makes it non-storable?

Human effort (C) Signup and view all the answers

What is the form of remuneration for labor?

Wages and benefits (B) Signup and view all the answers

What is the Total of incomes generated by production?

Wages, rent, interest, profits (D) Signup and view all the answers

What is the formula for Expenditure Method?

GDP = C + I + G + (X - Z) (C) Signup and view all the answers

What is the importance of understanding the Circular Flow?

To understand the effects of various sectors on economic growth and stability (C) Signup and view all the answers

What is characteristic of a Mixed Economy?

Both private and public sector involvement (D) Signup and view all the answers

What is an advantage of a Market Economy?

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

What is a characteristic of a Centrally Planned Economy?

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

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

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

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

Providing social services and promoting economic growth (D) Signup and view all the answers

What is Gross Fixed Capital Formation (I)?

Reflects total investment in physical assets (C) Signup and view all the answers

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

Total domestic expenditure on goods and services (B) Signup and view all the answers

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

New Economic Growth Path (D) Signup and view all the answers

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

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

What is the significance of the primary sector in South Africa?

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

What is the main goal of South Africa's economic structure?

To enhance global market position (A) Signup and view all the answers

What is the significance of the tertiary sector in South Africa?

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

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

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

What is the historical context of exclusion in South Africa's primary sector?

Discriminatory policies deprived black South Africans of land ownership and equal opportunities (B) Signup and view all the answers

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

Both A and B (B) Signup and view all the answers

What is the purpose of the Black Economic Empowerment Act?

To address historical exclusion and promote equity (B) Signup and view all the answers

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

Both B and C (A) Signup and view all the answers

What is the primary purpose of natural resources in a market system?

To provide raw materials for goods and services (C) Signup and view all the answers

What determines the payment associated with natural resources?

Demand for the resource and its quality (C) Signup and view all the answers

What is the characteristic of labor that affects its supply?

Time required for training (C) Signup and view all the answers

What type of labor is essential for production and economic growth?

Skilled labor (A) Signup and view all the answers

What is the form of remuneration received by labor?

Wages and benefits (C) Signup and view all the answers

What is the significance of natural resources in a market system?

They drive economic development (C) Signup and view all the answers

What is the characteristic of natural resources that varies across regions?

Distribution (A) Signup and view all the answers

What is the outcome of effective management of natural resources?

Sustainable economic development (A) Signup and view all the answers

What is the primary objective of a mixed economy?

To balance economic growth with social welfare (A) Signup and view all the answers

What is Gross National Income (GNI)?

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

Which sector is characterized by private ownership of production factors?

Market Economy (D) Signup and view all the answers

What is the purpose of the circular flow diagram?

To show the flow of goods and services within an economy (A) Signup and view all the answers

What is the primary advantage of a market economy?

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

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

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

What is the primary disadvantage of a centrally planned economy?

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

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

It represents total investment in physical assets (D) Signup and view all the answers

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

To balance economic growth with social welfare (C) Signup and view all the answers

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

It reflects total domestic expenditure on goods and services (A) Signup and view all the answers

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

To achieve economic growth, competitiveness, and employment (A) Signup and view all the answers

Which sector in South Africa's economy is characterized by the extraction and harvesting of natural resources?

Primary sector (D) Signup and view all the answers

What is the historical context of exclusion in South Africa's tertiary sector?

Restrictions on black people owning businesses and property (C) Signup and view all the answers

What is the significance of the secondary sector in South Africa?

It produces consumer and capital goods (D) Signup and view all the answers

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

To provide services (A) Signup and view all the answers

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

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

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

Insufficient investment in new power sources (A) Signup and view all the answers

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

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

What is the purpose of the Black Economic Empowerment Act?

To dismantle barriers in the tertiary sector (C) Signup and view all the answers

What is the role of international trade in South Africa's economy?

To increase GDP and foreign exchange earnings (D) Signup and view all the answers

What is the primary role of entrepreneurs in economic systems?

To manage businesses and create jobs (C) Signup and view all the answers

Which of the following is a characteristic of capital?

It includes manufactured resources used in production (B) Signup and view all the answers

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

To evaluate the total economic activity of a country (C) Signup and view all the answers

What is the significance of the circular flow diagram?

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

What is the primary factor that influences the supply of capital?

Capital demand and funding supply (C) Signup and view all the answers

What is the importance of investment in capital goods?

It is necessary to match growth in labor and to manage depreciation (A) Signup and view all the answers

What is the key difference between final and intermediate goods?

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

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

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

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

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

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

Consumption (C) (D) Signup and view all the answers

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

They are categorized into renewable and non-renewable types (C) Signup and view all the answers

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

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

What is the primary importance of labor in a market system?

It is crucial for production and economic growth (B) Signup and view all the answers

What is the primary characteristic that affects the supply of labor?

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

What is the primary form of remuneration received by labor?

Wages (B) Signup and view all the answers

What is the primary significance of natural resources in a market system?

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

What is the primary outcome of effective management of natural resources?

Improved resource sustainability (C) Signup and view all the answers

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

Their sustainability and renewability (D) Signup and view all the answers

What is the primary reason why entrepreneurs are crucial in economic systems?

They mobilize resources and invest in capital (C) Signup and view all the answers

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

It calculates the total value of all final goods and services (B) Signup and view all the answers

What is the relationship between capital deepening and economic output?

Capital deepening increases productivity, leading to higher economic output (A) Signup and view all the answers

What is the primary difference between final and intermediate goods?

Final goods are consumed by the end user and not used in further production, while intermediate goods are used as inputs (A) Signup and view all the answers

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

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

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

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

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

It is a manufactured resource used in further production (D) Signup and view all the answers

What is the primary effect of entrepreneurship on the economy?

It generates wealth and creates jobs (D) Signup and view all the answers

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

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

What is the primary reason why understanding the circular flow of goods and services is important?

It illustrates the interdependence between different sectors and agents in the economic system (B) Signup and view all the answers

What is the primary purpose of the expenditure method in calculating GDP?

To calculate the total spending on final goods and services (A) Signup and view all the answers

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

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

What is the primary advantage of a market economy?

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

What is the primary challenge facing the South African government in the mixed economy?

Persistent issues with poverty and inequality (B) Signup and view all the answers

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

It is the total income received by residents from investments abroad (D) Signup and view all the answers

What is the primary purpose of the circular flow diagram?

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

What is the primary advantage of a centrally planned economy?

Provision of full employment and essential services (C) Signup and view all the answers

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

It reflects the total investment in physical assets (A) Signup and view all the answers

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

To calculate the total spending on final goods and services (A) Signup and view all the answers

What is the primary characteristic of a market economy?

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

What is the primary goal of South Africa's initiatives to enhance its global market position?

To produce high-quality, competitively priced goods and maintain stable exchange rates (B) Signup and view all the answers

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

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

What is the historical context of exclusion in South Africa's secondary sector?

Restriction of training and job opportunities for black individuals (C) Signup and view all the answers

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

To play a dual role in facilitating economic growth and addressing social inequalities (B) Signup and view all the answers

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

It supports the overall economic growth and development (B) Signup and view all the answers

What is the primary objective of the Black Economic Empowerment Act?

To promote economic empowerment and equity for black South Africans (C) Signup and view all the answers

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

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

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

They generate employment and foreign exchange (D) Signup and view all the answers

What is the primary focus of the New Economic Growth Path initiative?

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

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

It is crucial for economic competitiveness and dissemination of information (D) Signup and view all the answers

What is the primary purpose of distinguishing between final and intermediate goods in measuring economic output?

To avoid double-counting in calculating Gross Domestic Product (GDP) (D) Signup and view all the answers

What is a key characteristic of entrepreneurship that drives economic renewal and innovation?

Identification of new opportunities and innovatively combining production factors (B) Signup and view all the answers

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

Providing labor and receiving wages, spending income on goods and services, and saving money through financial markets (D) 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, calculated through the Value Added Method?

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

What is the primary effect of investment in capital goods on economic growth?

Increase in economic output (D) Signup and view all the answers

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

Involvement in trade and financial transactions with other countries (B) Signup and view all the answers

What is the primary purpose of the circular flow diagram?

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

What is the primary characteristic of capital that sustains production capabilities?

Its manufactured resources used in further production (D) Signup and view all the answers

What is the primary reward for entrepreneurship, which compensates for the risks and efforts involved in starting and running a business?

Profit (C) Signup and view all the answers

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

Risk, liquidity, investment duration, capital demand, and funding supply (D) Signup and view all the answers

What is the primary goal of enhancing South Africa's international competitiveness?

To produce high-quality, competitively priced goods and maintain stable exchange rates (A) Signup and view all the answers

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

It is the dominant contributor to the country's GDP (D) Signup and view all the answers

What was the impact of apartheid policies on black South Africans in the primary sector?

They were deprived of land ownership and equal opportunities in farming and mining (B) Signup and view all the answers

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

Manufacturing and construction, transforming raw materials into finished goods (B) Signup and view all the answers

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

It is essential for sustained economic activity (D) Signup and view all the answers

What is the purpose of the Land Redistribution Programme in South Africa?

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

What is the role of international trade in South Africa's economy?

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

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

It is crucial for information dissemination and economic competitiveness (C) Signup and view all the answers

What is the primary goal of the Black Economic Empowerment Act in South Africa?

To dismantle historical barriers and promote economic empowerment (C) Signup and view all the answers

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

It facilitates domestic and international trade, boosting GDP and employment (A) Signup and view all the answers

What is the primary reason why natural resources are categorized into renewable and non-renewable types?

To ensure sustainable management (C) Signup and view all the answers

Which of the following factors affects the remuneration received by labor?

Both demand for the resource and the level of skills and education (C) Signup and view all the answers

What is the primary characteristic of entrepreneurship that distinguishes it from other factors of production?

It is the driving force behind innovation and risk-taking (A) Signup and view all the answers

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

Natural Resources (A) Signup and view all the answers

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

It affects economic dynamics and necessitates sustainable management (B) Signup and view all the answers

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

Due to the time required for training, particularly for skilled positions (D) Signup and view all the answers

What is the primary characteristic of natural resources that makes them essential for production?

They provide raw materials for goods and services (C) Signup and view all the answers

What is the primary purpose of rent as a form of remuneration for natural resources?

To reflect the value of natural resources in a market system (A) Signup and view all the answers

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

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

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

GDP does not include net income from abroad, while GNI does (C) Signup and view all the answers

What is a characteristic of a centrally planned economy that can lead to inefficiencies?

Centralized decision-making and planning (B) Signup and view all the answers

What is the primary advantage of a market economy?

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

What is the significance of Gross Fixed Capital Formation (I) in an economy?

It reflects total investment in physical assets for future production (C) Signup and view all the answers

What is a challenge facing South Africa's mixed economy?

Persistent issues with poverty and inequality (B) Signup and view all the answers

What is the significance of the circular flow diagram in understanding an economy?

It provides insights into how money and goods circulate within an economy (A) Signup and view all the answers

What is the primary characteristic of a mixed economy?

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

What is the significance of Expenditure on Gross Domestic Product (GDE) in an economy?

It is the total domestic expenditure on goods and services, adjusted for imports and exports (A) Signup and view all the answers

What is a characteristic of a market economy that can lead to inequalities?

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

What is the primary role of natural resources in a market system?

To provide raw materials for goods and services (B) Signup and view all the answers

What is the characteristic of labor that affects its supply?

Training period (B) Signup and view all the answers

What is the form of remuneration received by entrepreneurship?

Profit (B) Signup and view all the answers

What is the significance of natural resources in a market system?

They drive economic development (C) Signup and view all the answers

What is the characteristic of natural resources that varies across regions?

Distribution (D) Signup and view all the answers

What is the outcome of effective management of natural resources?

Sustainable economic growth (A) Signup and view all the answers

What is the primary importance of labor in a market system?

It is essential for production and economic growth (B) Signup and view all the answers

What determines the payment associated with natural resources?

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

What is the primary function of entrepreneurship in the economy?

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

What is the purpose of the Value Added Method in calculating Gross Domestic Product (GDP)?

To sum the value added at each stage of production (B) Signup and view all the answers

What is the primary factor that influences the supply of capital?

The broader economic conditions (B) Signup and view all the answers

What is the term for the total spending by businesses on capital goods?

Investment (I) (C) Signup and view all the answers

What is the primary reason why entrepreneurs take risks to launch and expand business ventures?

To generate profit and compensate for the risks involved (D) Signup and view all the answers

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

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

What is the primary purpose of the circular flow diagram?

To illustrate the interdependence between different sectors and agents in the economy (B) Signup and view all the answers

What is the primary characteristic of capital that affects its productivity?

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

What is the primary purpose of investment in capital goods?

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

What is the primary factor that influences the demand for specific labor types?

The broader economic conditions (B) Signup and view all the answers

Which method of calculating GDP is based on the sum of all expenditures made on final goods and services?

Expenditure Method (C) Signup and view all the answers

What is the primary goal of a mixed economy?

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

What is the term for the total value of goods and services produced within a country's borders, plus net income from abroad?

Gross National Income (GNI) (A) Signup and view all the answers

What is the primary characteristic of a market economy?

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

What is the advantage of a market economy?

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

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

To promote international trade and competitiveness (A) Signup and view all the answers

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

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

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

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

Which sector is responsible for extracting and harvesting natural resources in South Africa?

Primary sector (C) Signup and view all the answers

What is the term for the total domestic expenditure on goods and services, adjusted for imports and exports?

Expenditure on Gross Domestic Product (GDE) (B) Signup and view all the answers

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

It is the largest contributor to GDP (B) Signup and view all the answers

What is the significance of understanding the circular flow in an economy?

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

What is the historical context of exclusion in South Africa's primary sector?

Discrimination against black South Africans during apartheid (B) Signup and view all the answers

What is the primary advantage of a centrally planned economy?

Even distribution of income and efficient resource utilization (A) Signup and view all the answers

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

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

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

It is essential for economic competitiveness and growth (B) Signup and view all the answers

What is the primary objective of the Black Economic Empowerment Act?

To dismantle barriers to black economic participation (A) Signup and view all the answers

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

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

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

It generates significant employment and foreign exchange (C) Signup and view all the answers

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

It is essential for information dissemination and economic competitiveness (B) Signup and view all the answers

What are the four primary factors of production?

Natural Resources, Labor, Capital, and Entrepreneurship (A) Signup and view all the answers

What is the primary characteristic of natural resources?

They are essential for production (D) Signup and view all the answers

What is the form of remuneration received by labor?

Wages and benefits (A) Signup and view all the answers

What is the significance of natural resources in a market system?

They drive economic development by providing raw materials for goods and services (C) Signup and view all the answers

What determines the payment associated with natural resources?

Factors such as demand for the resource, its quality, climate, technological advancements, and geographic location (B) Signup and view all the answers

What is the characteristic of labor that makes it non-storable?

It is human effort that cannot be stored (D) Signup and view all the answers

What is the significance of entrepreneurship in a market system?

It is essential for production and economic growth (A) Signup and view all the answers

What is the outcome of effective management of natural resources?

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

What is the main goal of South Africa's economic structure?

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

What is the significance of the primary sector in South Africa?

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

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

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

What is the significance of the tertiary sector in South Africa?

It dominates the GDP and drives economic growth (C) Signup and view all the answers

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

It provides essential services and facilities (B) Signup and view all the answers

What is the historical context of exclusion in South Africa's primary sector?

Discrimination based on race (B) Signup and view all the answers

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

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

What is the purpose of the Black Economic Empowerment Act?

To address historical exclusion and empower black individuals (C) Signup and view all the answers

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

It facilitates information dissemination and economic activity (D) Signup and view all the answers

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

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

What is the primary function of entrepreneurs in the economy?

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

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

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

What is the primary reward for capital investment?

Interest (A) Signup and view all the answers

What is the key difference between final and intermediate goods?

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

What is the term for the continuous movement of goods, services, and money within an economy?

Circular Flow of Goods and Services (C) Signup and view all the answers

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

To engage in trade and financial transactions with other countries (B) 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?

Consumption (C) (B) Signup and view all the answers

What is the primary characteristic of capital that sustains production capabilities?

It is essential for economic growth (B) Signup and view all the answers

What is the term for the economic concepts that illustrate how capital affects productivity and economic output?

Capital Widening and Deepening (C) Signup and view all the answers

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

To evaluate the total economic activity (C) Signup and view all the answers

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

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

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

Mixed Economy (B) Signup and view all the answers

What is the primary characteristic of a market economy?

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

What is the advantage of a market economy in terms of innovation?

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

What is the characteristic of a Centrally Planned Economy in terms of resource allocation?

Resources are allocated by the state (B) Signup and view all the answers

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

Providing social services and promoting economic growth (D) Signup and view all the answers

What is the primary characteristic of the South African economy?

Mixed Economy (C) Signup and view all the answers

What is the outcome of effective management of natural resources?

Sustainable resource utilization (D) Signup and view all the answers

What is the formula for the Expenditure Method of calculating GDP?

GDP = C + I + G + (X - Z) (B) Signup and view all the answers

What is the primary focus of the circular flow diagram?

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

CH SUM : Macro Economics

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Questions and Answers

What is the primary characteristic of capital?

What is the reward for entrepreneurship?

What is the difference between final and intermediate goods?

What is the purpose of the circular flow diagram?

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?

What is the result of investment in capital goods?

What is the role of entrepreneurs in the economy?

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

What affects the rate of return on invested funds?

What is the term for the economic concepts that illustrate how capital affects productivity and economic output?

What are the four primary factors of production?

What is the payment associated with natural resources?

What type of labor is heavily reliant on the level of skills and education?

What affects the supply of natural resources?

What is the characteristic of natural resources that varies across regions?

What is the outcome of effective management of natural resources?

What is the characteristic of labor that makes it non-storable?

What is the form of remuneration for labor?

What is the Total of incomes generated by production?

What is the formula for Expenditure Method?

What is the importance of understanding the Circular Flow?

What is characteristic of a Mixed Economy?

What is an advantage of a Market Economy?

What is a characteristic of a Centrally Planned Economy?

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

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

What is Gross Fixed Capital Formation (I)?

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

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

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

What is the significance of the primary sector in South Africa?

What is the main goal of South Africa's economic structure?

What is the significance of the tertiary sector in South Africa?

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

What is the historical context of exclusion in South Africa's primary sector?

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

What is the purpose of the Black Economic Empowerment Act?

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

What is the primary purpose of natural resources in a market system?

What determines the payment associated with natural resources?

What is the characteristic of labor that affects its supply?

What type of labor is essential for production and economic growth?

What is the form of remuneration received by labor?

What is the significance of natural resources in a market system?

What is the characteristic of natural resources that varies across regions?

What is the outcome of effective management of natural resources?

What is the primary objective of a mixed economy?

What is Gross National Income (GNI)?

Which sector is characterized by private ownership of production factors?

What is the purpose of the circular flow diagram?

What is the primary advantage of a market economy?

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

What is the primary disadvantage of a centrally planned economy?

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

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

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

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

Which sector in South Africa's economy is characterized by the extraction and harvesting of natural resources?

What is the historical context of exclusion in South Africa's tertiary sector?

What is the significance of the secondary sector in South Africa?

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

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

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

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

What is the purpose of the Black Economic Empowerment Act?

What is the role of international trade in South Africa's economy?

What is the primary role of entrepreneurs in economic systems?

Which of the following is a characteristic of capital?

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

What is the significance of the circular flow diagram?

What is the primary factor that influences the supply of capital?

What is the importance of investment in capital goods?

What is the key difference between final and intermediate goods?

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

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

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