June P1 Mix

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?

Providing raw materials, generating income, creating employment, and underpinning international trade (C) Signup and view all the answers

What is a characteristic of labor?

It is always non-storable (A) Signup and view all the answers

What is the importance of labor in economic growth?

Productivity heavily relies on the level of skills and education (A) Signup and view all the answers

What affects the labor supply?

Population growth, labor force participation rates, and migration patterns (A) Signup and view all the answers

What is the remuneration associated with labor?

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

Why are natural resources essential for production?

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

What is entrepreneurship in the context of factors of production?

A factor of production that organizes and manages other factors (D) Signup and view all the answers

What is the primary function of capital in an economy?

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

What is the main reward for entrepreneurship?

Profit (A) Signup and view all the answers

What is the purpose of the circular flow model?

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

What is the difference between final and intermediate goods?

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

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

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

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

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

What is the impact of entrepreneurship on the economy?

It generates wealth, creates jobs, and fosters competition (C) Signup and view all the answers

What is the return on invested funds for capital?

Interest (C) 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 term for the spending by businesses on capital goods like machinery and buildings?

Investment (C) Signup and view all the answers

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

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

What is the main characteristic of a market economy?

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

What is a disadvantage of a centrally planned economy?

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

What is the significance of understanding the Circular Flow?

All of the above (D) 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

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

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

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

Persistent issues with poverty and inequality (B) 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 Gross Fixed Capital Formation (I)?

Total investment in physical assets (D) 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 goal of initiatives like ASGISA and the New Economic Growth Path?

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

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

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

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

Primary, secondary, and tertiary sector (A) Signup and view all the answers

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

Essential raw materials and energy (C) Signup and view all the answers

What is the focus of the secondary sector?

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

What is the primary objective of the Land Redistribution Programme?

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

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

Tertiary sector (C) Signup and view all the answers

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

Supporting sustained economic activity (C) Signup and view all the answers

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

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

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

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

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

The Expenditure Method calculates GDP from the perspective of expenditures, while the Income Method calculates it from the perspective of incomes. (C) Signup and view all the answers

What is the primary advantage of a mixed economy?

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

What is the main characteristic of a centrally planned economy?

State ownership of resources and centralized decision-making. (A) Signup and view all the answers

What does Gross National Income (GNI) measure?

The income generated by production, including income from abroad. (D) Signup and view all the answers

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

To provide social services and regulate the economy to balance economic growth with social welfare. (A) Signup and view all the answers

What is the main advantage of a market economy?

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

What is Gross Fixed Capital Formation (I)?

The total investment in physical assets that will be used in future production. (C) Signup and view all the answers

What is the main disadvantage of a market economy?

Overexploitation of resources due to profit motives. (C) Signup and view all the answers

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

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

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

To balance economic growth with social welfare and environmental concerns. (D) Signup and view all the answers

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

Their renewability (C) Signup and view all the answers

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

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

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

Training time (D) Signup and view all the answers

How does a skilled workforce contribute to economic growth?

By increasing productivity (A) Signup and view all the answers

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

To organize and coordinate production (A) Signup and view all the answers

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

Due to their renewability (D) Signup and view all the answers

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

Skill level (C) Signup and view all the answers

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

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

How does the availability of natural resources affect economic dynamics?

It varies depending on the region (A) Signup and view all the answers

What is the primary importance of labor in production?

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

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

To produce high-quality, competitively priced goods (D) Signup and view all the answers

What is the focus of the secondary sector?

Transforming raw materials into finished goods (C) Signup and view all the answers

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

Provision of essential raw materials and energy (B) Signup and view all the answers

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

Tertiary sector (C) Signup and view all the answers

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

Sustaining economic activity (A) Signup and view all the answers

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

Facilitating economic competitiveness (D) Signup and view all the answers

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

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

What is the primary objective of the Land Redistribution Programme?

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

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

Three main sectors: primary, secondary, and tertiary (A) Signup and view all the answers

What is the primary role of entrepreneurs in an economy?

To identify new business opportunities and combine resources (A) 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?

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

What is the purpose of investment in capital goods?

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

What is the return on invested funds for capital?

Interest (D) Signup and view all the answers

What is the distinction between final and intermediate goods?

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

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

Foreign sector (A) 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?

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

What is the relationship between capital and economic growth?

Capital is essential for maintaining and expanding production (A) Signup and view all the answers

What is the primary reward for entrepreneurship?

Profit (A) Signup and view all the answers

What is the significance of understanding the circular flow model?

It illustrates the interdependence between different sectors and agents in the economy (C) Signup and view all the answers

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

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

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

Based on their availability and renewability (A) Signup and view all the answers

What is a characteristic of labor that affects its supply?

The time required for training and education (D) Signup and view all the answers

What is the primary reason natural resources drive economic development?

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

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

Because it increases labor productivity (A) Signup and view all the answers

What is the primary difference between natural resources and labor?

One is human effort while the other is environmental assets (B) Signup and view all the answers

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

Due to geographic location (A) Signup and view all the answers

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

By managing and organizing the production process (C) Signup and view all the answers

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

Rent (D) Signup and view all the answers

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

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

What is the primary function of entrepreneurs in an economy?

To initiate and manage businesses, identifying new opportunities and innovatively combining all other production factors (C) 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 return on invested funds for capital?

Interest (C) Signup and view all the answers

What is the difference between final and intermediate goods?

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

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

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

What is the primary reward for entrepreneurship?

Profit (B) Signup and view all the answers

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

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

What is the primary function of capital in an economy?

To sustain production capabilities and match growth in labor (A) Signup and view all the answers

What is the importance of capital in economic growth?

It sustains production capabilities and matches growth in labor (A) Signup and view all the answers

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

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

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

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

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

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

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

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

What is the primary objective of the Land Redistribution Programme in South Africa?

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

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

Crucial for sustained economic activity (C) Signup and view all the answers

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

Vital for economic competitiveness (D) Signup and view all the answers

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

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

What is the primary characteristic of a mixed economy?

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

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

To produce high-quality, competitively priced goods (D) Signup and view all the answers

What is the significance of the public sector in South Africa's economic structure?

Influences the country's business cycles and economic dynamics (D) Signup and view all the answers

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

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

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

To address historical inequalities in the economy (C) Signup and view all the answers

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

Both a and b (A) Signup and view all the answers

What is the primary characteristic of a market economy?

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

What is the primary disadvantage of a centrally planned economy?

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

What is the primary advantage of a centrally planned economy?

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

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

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

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

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

What is the primary purpose of the circular flow model?

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 Gross Fixed Capital Formation (I)?

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

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

Due to differences in climate and geography (D) Signup and view all the answers

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

Labor (D) Signup and view all the answers

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

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

What is the primary role of labor in economic growth?

Increasing productivity and driving economic growth (B) Signup and view all the answers

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

Natural Resources (A) Signup and view all the answers

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

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

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

Their uneven distribution across regions (A) Signup and view all the answers

What is the form of remuneration associated with labor?

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

What is the primary importance of labor in economic growth?

Increasing productivity and driving economic growth (C) Signup and view all the answers

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

The time required for training, particularly for skilled positions (C) Signup and view all the answers

What is the primary function of entrepreneurship in the economy?

To manage and initiate businesses, identifying new opportunities (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?

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

What is the primary reward for entrepreneurship?

Profit (B) Signup and view all the answers

What is the main characteristic of capital?

It is essential for economic growth and sustains production capabilities (C) Signup and view all the answers

What is the circular flow of goods and services?

The movement of goods and services between different sectors of the economy (A) Signup and view all the answers

What is the importance of capital widening and deepening?

It illustrates how capital affects productivity and economic output (C) Signup and view all the answers

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

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

What is the main difference between final and intermediate goods?

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

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

To influence both consumption and production (D) Signup and view all the answers

What is the primary goal of calculating GDP?

To measure the total value of all final goods and services produced within a country's borders (A) 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?

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

What is the primary sector's significance in the economy?

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

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

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

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

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

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

To enhance the country's global market position (C) Signup and view all the answers

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

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

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

It enhances economic self-sufficiency and growth (A) Signup and view all the answers

What is the primary objective of the Land Redistribution Programme?

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

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

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

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

To regulate the economy and address market failures (A) Signup and view all the answers

What is the primary difference between GDP and GNI?

GDP measures domestic income, while GNI measures income from abroad. (D) Signup and view all the answers

What is the primary goal of a mixed economy?

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

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

To provide essential services like healthcare and education. (A) Signup and view all the answers

What is the primary advantage of a market economy?

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

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

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

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

It reflects total investment in physical assets that will be used in future production. (D) Signup and view all the answers

What is the primary role of the circular flow model?

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

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

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

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

To provide essential services like healthcare and education, and promote economic growth. (B) Signup and view all the answers

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

To highlight their differences in availability and renewability (D) Signup and view all the answers

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

It increases the rent associated with the resource (A) Signup and view all the answers

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

It increases the rent associated with the resource (B) Signup and view all the answers

How does labor supply adjust to changes in the economy?

Labor supply cannot be rapidly adjusted due to the time required for training (A) Signup and view all the answers

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

It increases productivity (A) Signup and view all the answers

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

It coordinates the other factors of production to create goods and services (D) Signup and view all the answers

What is the primary distinction between labor and entrepreneurship?

Labor represents human effort, while entrepreneurship coordinates production (D) Signup and view all the answers

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

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

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

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

What is the primary reason labor is compensated through wages?

Because labor is a human effort used in the production process (D) Signup and view all the answers

What is the primary function of entrepreneurship in an economy?

To identify new opportunities and innovate (B) Signup and view all the answers

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

Capital widening (D) Signup and view all the answers

Which of the following is NOT a characteristic of capital?

Natural resources (C) Signup and view all the answers

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

It sustains production capabilities (C) 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 (D) Signup and view all the answers

What is the primary purpose of the circular flow model?

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

Which of the following is a characteristic of final goods?

Consumed by the end user and not used in further production (A) Signup and view all the answers

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

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

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

Investment (B) Signup and view all the answers

Which of the following is a characteristic of intermediate goods?

Used as inputs in the production of other goods (C) Signup and view all the answers

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

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

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

Tertiary sector (C) Signup and view all the answers

What is the primary focus of the secondary sector?

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

What is the main objective of the Land Redistribution Programme?

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

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

To provide a framework for the private sector to operate (A) Signup and view all the answers

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

To support sustained economic activity and growth (A) Signup and view all the answers

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

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

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

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

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

To enhance growth, competitiveness, and employment in South Africa (D) Signup and view all the answers

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

Discriminating against black South Africans in terms of land ownership and economic opportunities (D) Signup and view all the answers

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

It provides insights into the effects of various sectors on economic growth and stability. (B) Signup and view all the answers

What is the primary goal of a mixed economy?

To achieve a balance between economic growth and social welfare. (B) Signup and view all the answers

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

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

What is the main advantage of a mixed economy?

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

Which of the following is a 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 primary role of the government in a mixed economy?

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

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

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

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

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

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

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

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

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

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

Geographic location (B) Signup and view all the answers

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

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

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

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

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

Level of education (D) Signup and view all the answers

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

Due to their varying levels of renewability (C) Signup and view all the answers

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

By driving innovation and productivity (D) Signup and view all the answers

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

Due to its inability to be stored for future use (C) Signup and view all the answers

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

By increasing productivity and efficiency (B) Signup and view all the answers

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

Due to their role in providing raw materials (D) Signup and view all the answers

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

By driving innovation and efficiency (B) Signup and view all the answers

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

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

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

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

What is the main advantage of a mixed economy?

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

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

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

What is Gross National Income (GNI) measure?

The total value of all goods and services produced by a country's citizens, regardless of where they are produced (A) Signup and view all the answers

What is the main characteristic of a market economy?

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

What is the main disadvantage of a centrally planned economy?

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

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

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

What is the primary goal of the circular flow model?

To demonstrate the circulation of money and goods within an economy (A) Signup and view all the answers

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

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

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

It transforms raw materials into finished goods (C) Signup and view all the answers

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

To regulate the economy and provide essential services (B) Signup and view all the answers

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

It generates foreign exchange and tax revenue (B) Signup and view all the answers

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

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

What is the primary objective of the Land Redistribution Programme?

To provide land ownership opportunities for black South Africans (C) Signup and view all the answers

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

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

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

To facilitate the dissemination of information and support economic growth (C) Signup and view all the answers

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

They facilitate the transportation of goods and support economic growth (D) Signup and view all the answers

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

To maintain stable exchange rates and align inflation with major trading partners (D) Signup and view all the answers

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

Economic conditions (A) Signup and view all the answers

What concept illustrates how capital affects productivity and economic output?

Capital widening and deepening (A) Signup and view all the answers

What is the critical role of entrepreneurs in economic systems?

Mobilizing resources, investing in capital, and employing labor (D) Signup and view all the answers

What is the primary purpose of the circular flow diagram?

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

What is the distinction between final and intermediate goods?

Final goods are consumed by the end user, while intermediate goods are used as inputs in the production of other goods (B) 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?

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

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

Gross Fixed Capital Formation (I) (B) Signup and view all the answers

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

To collect taxes and redistribute income (C) 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?

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

What is the primary goal of investment in capital goods?

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

June P1 Mix

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Questions and Answers

What are the four primary factors of production?

What type of remuneration is typically associated with natural resources?

What is a characteristic of natural resources?

What is the importance of natural resources in economic development?

What is a characteristic of labor?

What is the importance of labor in economic growth?

What affects the labor supply?

What is the remuneration associated with labor?

Why are natural resources essential for production?

What is entrepreneurship in the context of factors of production?

What is the primary function of capital in an economy?

What is the main reward for entrepreneurship?

What is the purpose of the circular flow model?

What is the difference between final and intermediate goods?

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

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

What is the impact of entrepreneurship on the economy?

What is the return on invested funds for capital?

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

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

What is the main characteristic of a market economy?

What is a disadvantage of a centrally planned economy?

What is the significance of understanding the Circular Flow?

What is Gross National Income (GNI)?

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

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

What is an advantage of a market economy?

What is Gross Fixed Capital Formation (I)?

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

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

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

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

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

What is the focus of the secondary sector?

What is the primary objective of the Land Redistribution Programme?

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

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

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

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

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

What is the primary advantage of a mixed economy?

What is the main characteristic of a centrally planned economy?

What does Gross National Income (GNI) measure?

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

What is the main advantage of a market economy?

What is Gross Fixed Capital Formation (I)?

What is the main disadvantage of a market economy?

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

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

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

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

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

How does a skilled workforce contribute to economic growth?

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

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

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

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

How does the availability of natural resources affect economic dynamics?

What is the primary importance of labor in production?

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

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

What is the focus of the secondary sector?

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

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

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

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

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

What is the primary objective of the Land Redistribution Programme?

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

What is the primary role of entrepreneurs in an economy?

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

What is the purpose of investment in capital goods?

What is the return on invested funds for capital?

What is the distinction between final and intermediate goods?

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