June P1 Mix
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Questions and Answers

What are the four primary factors of production?

  • Raw Materials, Labor, Equipment, and Skills
  • Land, Labor, Capital, and Management
  • Land, Labor, Capital, and Technology
  • Natural Resources, Labor, Capital, and Entrepreneurship (correct)

    • What type of remuneration is typically associated with natural resources?

  • Profit
  • Rent (correct)
  • Interest
  • Wages

    • What is a characteristic of natural resources?

  • They are only found in urban areas
  • They can be categorized into renewable and non-renewable types (correct)
  • They are always renewable
  • They are always non-renewable

    • What is the importance of natural resources in economic development?

    <p>Providing raw materials, generating income, creating employment, and underpinning international trade</p> Signup and view all the answers

    What is a characteristic of labor?

    <p>It is always non-storable</p> Signup and view all the answers

    What is the importance of labor in economic growth?

    <p>Productivity heavily relies on the level of skills and education</p> Signup and view all the answers

    What affects the labor supply?

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

    What is the remuneration associated with labor?

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

    Why are natural resources essential for production?

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

    What is entrepreneurship in the context of factors of production?

    <p>A factor of production that organizes and manages other factors</p> Signup and view all the answers

    What is the primary function of capital in an economy?

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

    What is the main reward for entrepreneurship?

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

    What is the purpose of the circular flow model?

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

    What is the difference between final and intermediate goods?

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

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

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

    What is the formula to calculate GDP using the value added method?

    <p>Sum of value added at each stage of production</p> Signup and view all the answers

    What is the impact of entrepreneurship on the economy?

    <p>It generates wealth, creates jobs, and fosters competition</p> Signup and view all the answers

    What is the return on invested funds for capital?

    <p>Interest</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 term for the spending by businesses on capital goods like machinery and buildings?

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

    What is the Gross Domestic Product (GDP) calculated using the Expenditure Method?

    <p>Sum of all expenditures made on final goods and services</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 a 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 significance of understanding the Circular Flow?

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

    What is Gross National Income (GNI)?

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

    What is a characteristic of South Africa's mixed economy?

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

    What is a disadvantage of South Africa's mixed economy?

    <p>Persistent issues with poverty and inequality</p> Signup and view all the answers

    What is an advantage of a market economy?

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

    What is Gross Fixed Capital Formation (I)?

    <p>Total investment in physical assets</p> Signup and view all the answers

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

    <p>Providing social services and promoting economic growth</p> Signup and view all the answers

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

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

    What are the three main sectors of South Africa's economic structure?

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

    What is the main contribution of the primary sector to the economy?

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

    What is the focus of the secondary sector?

    <p>Manufacturing and construction</p> Signup and view all the answers

    What is the primary objective of the Land Redistribution Programme?

    <p>To address historical inequalities in land ownership</p> Signup and view all the answers

    What is the dominant contributor to South Africa's GDP?

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

    What is the importance of reliable energy sources in South Africa?

    <p>Supporting sustained economic activity</p> Signup and view all the answers

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

    <p>To enhance economic competitiveness</p> Signup and view all the answers

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

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

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

    <p>The Expenditure Method calculates GDP from the perspective of expenditures, while the Income Method calculates it from the perspective of incomes.</p> Signup and view all the answers

    What is the primary advantage of a mixed economy?

    <p>It promotes economic growth while aiming to improve social welfare.</p> Signup and view all the answers

    What is the main characteristic of a centrally planned economy?

    <p>State ownership of resources and centralized decision-making.</p> Signup and view all the answers

    What does Gross National Income (GNI) measure?

    <p>The income generated by production, including income from abroad.</p> Signup and view all the answers

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

    <p>To provide social services and regulate the economy to balance economic growth with social welfare.</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 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 main disadvantage of a market economy?

    <p>Overexploitation of resources due to profit motives.</p> Signup and view all the answers

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

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

    What is the main objective of the South African government's dual role in the mixed economy?

    <p>To balance economic growth with social welfare and environmental concerns.</p> Signup and view all the answers

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

    <p>Their renewability</p> Signup and view all the answers

    What is the primary factor that influences the payment of rent for natural resources?

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

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

    <p>Training time</p> Signup and view all the answers

    How does a skilled workforce contribute to economic growth?

    <p>By increasing productivity</p> Signup and view all the answers

    What is the primary purpose of entrepreneurship in the context of factors of production?

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

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

    <p>Due to their renewability</p> Signup and view all the answers

    What is the primary factor that affects the payment of wages for labor?

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

    What is the primary importance of natural resources in economic development?

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

    How does the availability of natural resources affect economic dynamics?

    <p>It varies depending on the region</p> Signup and view all the answers

    What is the primary importance of labor in production?

    <p>It is essential for production</p> Signup and view all the answers

    What is the primary goal of initiatives like 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 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 focus of the secondary sector?

    <p>Transforming raw materials into finished goods</p> Signup and view all the answers

    What is the main contribution of the primary sector to the economy?

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

    What is the dominant contributor to South Africa's GDP?

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

    What is the importance of reliable energy sources in South Africa?

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

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

    <p>Facilitating economic competitiveness</p> Signup and view all the answers

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

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

    What is the primary objective of the Land Redistribution Programme?

    <p>To address historical inequalities in land ownership</p> Signup and view all the answers

    What is a characteristic of South Africa's economic structure?

    <p>Three main sectors: primary, secondary, and tertiary</p> Signup and view all the answers

    What is the primary role of entrepreneurs in an economy?

    <p>To identify new business opportunities and combine resources</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?

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

    What is the purpose of investment in capital goods?

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

    What is the return on invested funds for capital?

    <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, while intermediate goods are used in further production</p> Signup and view all the answers

    What is the main component of the circular flow model that involves trade and financial transactions with other countries?

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

    What is the term for the 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 relationship between capital and economic growth?

    <p>Capital is essential for maintaining and expanding production</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 significance of understanding the circular flow model?

    <p>It illustrates the interdependence between different sectors and agents in the economy</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

    Why are natural resources categorized into renewable and non-renewable types?

    <p>Based on their availability and renewability</p> Signup and view all the answers

    What is a characteristic of labor that affects its supply?

    <p>The time required for training and education</p> Signup and view all the answers

    What is the primary reason natural resources drive economic development?

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

    What is the primary reason a skilled workforce is crucial for production and economic growth?

    <p>Because it increases labor productivity</p> Signup and view all the answers

    What is the primary difference between natural resources and labor?

    <p>One is human effort while the other is environmental assets</p> Signup and view all the answers

    What is the primary reason natural resources are unevenly distributed across regions?

    <p>Due to geographic location</p> Signup and view all the answers

    What is the primary way in which entrepreneurship contributes to production?

    <p>By managing and organizing the production process</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 primary characteristic of labor that affects its productivity?

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

    What is the primary function of entrepreneurs in an economy?

    <p>To initiate and manage businesses, identifying new opportunities and innovatively combining all other production factors</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 return on invested funds for capital?

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

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

    <p>To involve trade and financial transactions with other countries, affecting the domestic economy through exports and imports</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?

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

    What is the primary function of capital in an economy?

    <p>To sustain production capabilities and match growth in labor</p> Signup and view all the answers

    What is the importance of capital in economic growth?

    <p>It sustains production capabilities and matches growth in labor</p> Signup and view all the answers

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

    <p>To provide labor and receive wages, spend income on goods and services, and save money through financial markets</p> Signup and view all the answers

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

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

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

    <p>Manufacturing and construction</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 is the primary objective of the Land Redistribution Programme in South Africa?

    <p>To address historical inequalities in land ownership</p> Signup and view all the answers

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

    <p>Crucial for sustained economic activity</p> Signup and view all the answers

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

    <p>Vital for economic competitiveness</p> Signup and view all the answers

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

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

    What is the primary characteristic of a mixed economy?

    <p>Coexistence of private and public sectors</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 significance of the public sector in South Africa's economic structure?

    <p>Influences the country's business cycles and economic dynamics</p> Signup and view all the answers

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

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

    What is the primary goal of initiatives like Black Economic Empowerment (BEE) in South Africa?

    <p>To address historical inequalities in the economy</p> Signup and view all the answers

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

    <p>Both a and b</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 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 advantage of a centrally planned economy?

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

    What is the formula to calculate GDP using the Expenditure Method?

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

    What is the primary role of the 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 purpose of the circular flow model?

    <p>To provide insights into how money and goods circulate within an economy</p> Signup and view all the answers

    What is the primary advantage of 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 primary reason why natural resources are unevenly distributed across regions?

    <p>Due to differences in climate and geography</p> Signup and view all the answers

    Which factor of production is characterized by being non-storable and varying in skill level?

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

    What is the form of remuneration associated with natural resources influenced by?

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

    What is the primary role of labor in economic growth?

    <p>Increasing productivity and driving economic growth</p> Signup and view all the answers

    Which factor of production is essential for production and varies in availability and renewability?

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

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

    <p>They drive economic development by providing raw materials for goods and services</p> Signup and view all the answers

    What is the primary characteristic of natural resources that affects economic dynamics?

    <p>Their uneven distribution across regions</p> Signup and view all the answers

    What is the form of remuneration associated with labor?

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

    What is the primary importance of labor in economic growth?

    <p>Increasing productivity and driving economic growth</p> Signup and view all the answers

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

    <p>The time required for training, particularly for skilled positions</p> Signup and view all the answers

    What is the primary function of entrepreneurship in the economy?

    <p>To manage and initiate businesses, identifying new opportunities</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 main characteristic of capital?

    <p>It is essential for economic growth and sustains production capabilities</p> Signup and view all the answers

    What is the circular flow of goods and services?

    <p>The movement of goods and services between different sectors of the economy</p> Signup and view all the answers

    What is the importance of capital widening and deepening?

    <p>It illustrates how capital affects productivity and economic output</p> Signup and view all the answers

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

    <p>To involve trade and financial transactions with other countries</p> Signup and view all the answers

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

    <p>To influence both consumption and production</p> Signup and view all the answers

    What is the primary goal of calculating GDP?

    <p>To measure 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 primary objective of South Africa's economic initiatives like 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 sector's significance in the economy?

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

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

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

    What is the main role of the tertiary sector in the economy?

    <p>To support the marketing and distribution of goods</p> Signup and view all the answers

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

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

    What is the main significance of the secondary sector in the economy?

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

    What is the primary objective of the Land Redistribution Programme?

    <p>To address historical inequalities in land ownership</p> Signup and view all the answers

    What is the main significance of transport networks in South Africa's economy?

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

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

    <p>To regulate the economy and address market failures</p> Signup and view all the answers

    What is the primary difference between GDP and GNI?

    <p>GDP measures domestic income, while GNI measures income from abroad.</p> Signup and view all the answers

    What is the primary goal of a mixed economy?

    <p>To balance individual freedom with government oversight and social welfare.</p> Signup and view all the answers

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

    <p>To provide essential services like healthcare and education.</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 primary 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 objective of South Africa's mixed economy?

    <p>To balance economic growth with social welfare and environmental protection.</p> Signup and view all the answers

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

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

    What is the primary role of the circular flow model?

    <p>To provide insights into how money and goods circulate within an economy.</p> Signup and view all the answers

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

    <p>Persistent issues with poverty and inequality.</p> Signup and view all the answers

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

    <p>To provide essential services like healthcare and education, and promote economic growth.</p> Signup and view all the answers

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

    <p>To highlight their differences in availability and renewability</p> Signup and view all the answers

    How does the quality of a natural resource affect its rent?

    <p>It increases the rent associated with the resource</p> Signup and view all the answers

    What is the primary effect of technological advancements on natural resources?

    <p>It increases the rent associated with the resource</p> Signup and view all the answers

    How does labor supply adjust to changes in the economy?

    <p>Labor supply cannot be rapidly adjusted due to the time required for training</p> Signup and view all the answers

    What is the primary effect of a skilled workforce on economic growth?

    <p>It increases productivity</p> Signup and view all the answers

    What is the primary reason entrepreneurship is a factor of production?

    <p>It coordinates the other factors of production to create goods and services</p> Signup and view all the answers

    What is the primary distinction between labor and entrepreneurship?

    <p>Labor represents human effort, while entrepreneurship coordinates production</p> Signup and view all the answers

    What is the primary role of natural resources in the production process?

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

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

    <p>It affects economic dynamics and necessitates sustainable management</p> Signup and view all the answers

    What is the primary reason labor is compensated through wages?

    <p>Because labor is a human effort used in the production process</p> Signup and view all the answers

    What is the primary function of entrepreneurship in an economy?

    <p>To identify new opportunities and innovate</p> Signup and view all the answers

    What is the term for the process of increasing the quantity of capital goods and services?

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

    Which of the following is NOT a characteristic of capital?

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

    What is the main reason for the importance of capital in an economy?

    <p>It sustains production capabilities</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 primary purpose of the circular flow model?

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

    Which of the following is a characteristic of final goods?

    <p>Consumed by the end user and not used in further production</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 redistribute income</p> Signup and view all the answers

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

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

    Which of the following is a characteristic of intermediate goods?

    <p>Used as inputs in the production of other goods</p> Signup and view all the answers

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

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

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

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

    What is the primary focus of the secondary sector?

    <p>Manufacturing and construction of goods</p> Signup and view all the answers

    What is the main objective of the Land Redistribution Programme?

    <p>To address the historical inequalities in land ownership and farming opportunities</p> Signup and view all the answers

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

    <p>To provide a framework for the private sector to operate</p> Signup and view all the answers

    What is the primary importance of reliable energy sources in South Africa's economy?

    <p>To support sustained economic activity and growth</p> Signup and view all the answers

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

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

    What is the primary importance of transport networks in South Africa's economy?

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

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

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

    What is the primary characteristic of the apartheid era's economic policies?

    <p>Discriminating against black South Africans in terms of land ownership and economic opportunities</p> Signup and view all the answers

    Which of the following statements about the circular flow model is true?

    <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 primary goal of a mixed economy?

    <p>To achieve a balance between economic growth and social welfare.</p> Signup and view all the answers

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

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

    What is the main advantage of a mixed economy?

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

    Which of the following is a 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 promote economic growth.</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 disadvantage of South Africa's mixed economy?

    <p>Persistent issues with poverty and inequality.</p> Signup and view all the answers

    What is the formula for calculating Gross Domestic Product (GDP) using the Expenditure Method?

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

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

    <p>GDP includes only domestic production, while GNI includes net income from abroad.</p> Signup and view all the answers

    Which of the following is a factor that influences the rent associated with natural resources?

    <p>Geographic location</p> Signup and view all the answers

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

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

    What is the main way in which natural resources drive economic development?

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

    What is the primary characteristic that distinguishes skilled labor from unskilled labor?

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

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

    <p>Due to their varying levels of renewability</p> Signup and view all the answers

    What is the primary way in which entrepreneurship contributes to economic growth?

    <p>By driving innovation and productivity</p> Signup and view all the answers

    What is the primary reason why labor is considered a non-storable factor of production?

    <p>Due to its inability to be stored for future use</p> Signup and view all the answers

    What is the primary way in which capital contributes to economic growth?

    <p>By increasing productivity and efficiency</p> Signup and view all the answers

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

    <p>Due to their role in providing raw materials</p> Signup and view all the answers

    What is the primary way in which labor productivity affects economic growth?

    <p>By driving innovation and efficiency</p> Signup and view all the answers

    What is the primary reason for the government's involvement in the mixed economy of South Africa?

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

    Which of the following is a characteristic of a centrally planned economy?

    <p>State ownership of resources</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 formula to calculate GDP using the Expenditure Method?

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

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

    <p>Providing social services and promoting economic growth</p> Signup and view all the answers

    What is Gross National Income (GNI) measure?

    <p>The total value of all goods and services produced by a country's citizens, regardless of where they are produced</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 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 role of the government in a mixed economy?

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

    What is the primary goal of the circular flow model?

    <p>To demonstrate the circulation of money and goods within an economy</p> Signup and view all the answers

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

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

    What is the main characteristic of the secondary sector in South Africa's economy?

    <p>It transforms raw materials into finished goods</p> Signup and view all the answers

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

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

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

    <p>It generates foreign exchange and tax revenue</p> Signup and view all the answers

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

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

    What is the primary objective of the Land Redistribution Programme?

    <p>To provide land ownership opportunities for black South Africans</p> Signup and view all the answers

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

    <p>It is the largest contributor to the country's GDP</p> Signup and view all the answers

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

    <p>To facilitate the dissemination of information and support economic growth</p> Signup and view all the answers

    What is the primary importance of transport networks in South Africa's economy?

    <p>They facilitate the transportation of goods and support economic growth</p> Signup and view all the answers

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

    <p>To maintain stable exchange rates and align inflation with major trading partners</p> Signup and view all the answers

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

    <p>Economic conditions</p> Signup and view all the answers

    What concept illustrates how capital affects productivity and economic output?

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

    What is the critical role of entrepreneurs in economic systems?

    <p>Mobilizing resources, investing in capital, and employing labor</p> Signup and view all the answers

    What is the primary purpose of the circular flow diagram?

    <p>To highlight the interdependence between different sectors and agents in the economic system</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, while intermediate goods are used as inputs in the production of other goods</p> Signup and view all the answers

    What is the economic concept that represents 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 economic concept that represents the spending by businesses on capital goods like machinery and buildings?

    <p>Gross Fixed Capital Formation (I)</p> Signup and view all the answers

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

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

    What is the economic concept 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 primary goal of investment in capital goods?

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

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