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Nov P1 Hard
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Nov P1 Hard

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Questions and Answers

What is the primary focus of Developmental Economics?

  • Promoting economic development in less developed countries (correct)
  • Studying the economic activities of government
  • Analyzing labour supply and demand
  • Examining environmental economic issues

    • Which of the following is NOT a characteristic of sustainable economic development?

  • Rapid industrialization at the expense of natural resources (correct)
  • Recycling and reducing waste
  • Technological progress that enhances resource efficiency
  • Fair labour practices

    • What is the primary function of the public sector in the economy?

  • To control economic activities
  • To provide public goods and services (correct)
  • To regulate private businesses
  • To provide employment opportunities

    • Which method of economics involves value judgments and subjective perspectives?

    <p>Normative Economics</p> Signup and view all the answers

    Which sector of the economy is involved in extracting natural resources?

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

    What is the primary purpose of economic models?

    <p>To understand and predict economic phenomena</p> Signup and view all the answers

    What is the fundamental economic challenge that individuals and societies face?

    <p>The problem of scarcity</p> Signup and view all the answers

    What is the term for the portion of income available for spending or saving after taxes?

    <p>Disposable income</p> Signup and view all the answers

    Which of the following is a challenge to achieving sustainable development?

    <p>Pollution and greenhouse effects</p> Signup and view all the answers

    What type of scarcity occurs when resources are insufficient to produce a good despite its availability?

    <p>Absolute Scarcity</p> Signup and view all the answers

    What is the concept that reflects the trade-offs when a choice is made?

    <p>Opportunity Cost</p> Signup and view all the answers

    What is the term for the total value of goods and services produced within a country?

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

    Which of the following is an example of an economic good?

    <p>A loaf of bread</p> Signup and view all the answers

    Which of the following is a characteristic of the informal sector?

    <p>Unregistered businesses</p> Signup and view all the answers

    What is the primary approach used in economics to research and draw conclusions?

    <p>The Scientific Method</p> Signup and view all the answers

    What is the term for the exchange rate that determines how much of one currency can be exchanged for another?

    <p>Foreign exchange rate</p> Signup and view all the answers

    Which of the following is NOT a type of good?

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

    What makes controlled experiments challenging in economics?

    <p>Human behaviors are diverse and difficult to predict</p> Signup and view all the answers

    Which of the following is a branch of economics that focuses on the economic activities of government?

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

    What is the primary function of entrepreneurship in the economy?

    <p>To combine land, labor, and capital to create goods and services</p> Signup and view all the answers

    What is the primary reason behind the economic problem of scarcity?

    <p>The unlimited nature of human wants</p> Signup and view all the answers

    Which of the following is NOT a primary economic question?

    <p>Who will consume the products?</p> Signup and view all the answers

    What is the main focus of microeconomics?

    <p>The decisions of individuals and firms</p> Signup and view all the answers

    What is the core challenge in economics?

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

    Which branch of economics studies the broad issues like unemployment, inflation, and economic growth?

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

    What is the primary goal of economic decision-making?

    <p>To allocate resources efficiently</p> Signup and view all the answers

    What is the main difference between microeconomics and macroeconomics?

    <p>Microeconomics examines individual markets, while macroeconomics examines the overall economy</p> Signup and view all the answers

    What is the relationship between human wants and resources?

    <p>Human wants are unlimited, while resources are limited</p> Signup and view all the answers

    What are the two main flows in the economy, as described in the model?

    <p>Real Flow and Monetary Flow</p> Signup and view all the answers

    What is the focus of the Expenditure Approach in calculating GDP?

    <p>Total spending on final goods and services in the economy</p> Signup and view all the answers

    What is the primary difference between GDP and GNI?

    <p>GDP focuses on production, while GNI focuses on income</p> Signup and view all the answers

    Which of the following indicators is a leading indicator of economic changes?

    <p>Stock prices</p> Signup and view all the answers

    What is the purpose of per capita income calculation?

    <p>To understand the economic well-being of the average citizen</p> Signup and view all the answers

    What is the characteristic of a counter-cyclical indicator?

    <p>It moves in the opposite direction of the economy</p> Signup and view all the answers

    What is the primary characteristic of the prosperity phase in a business cycle?

    <p>High economic activity, increasing employment, and wages</p> Signup and view all the answers

    What is the limitation of GDP as a measure of economic activity?

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

    Which of the following is an example of an endogenous reason for business cycles?

    <p>Fluctuations in investment</p> Signup and view all the answers

    What is the purpose of the Income Approach in calculating GDP?

    <p>To calculate the total income earned from producing goods and services</p> Signup and view all the answers

    What type of economic indicators are used to analyze changes in the business cycle?

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

    What is the impact of business cycles on economically vulnerable populations?

    <p>They are disproportionately affected, leading to reduced income and higher unemployment rates</p> Signup and view all the answers

    What is the primary characteristic of a business cycle?

    <p>It is a natural fluctuation in economic activity that occurs over time</p> Signup and view all the answers

    What is the primary purpose of understanding business cycles?

    <p>To mitigate the adverse effects on the population</p> Signup and view all the answers

    What is the primary factor that led to the accumulation of wealth and power in early societies?

    <p>Control over resources</p> Signup and view all the answers

    What is the primary consequence of industrialization and urbanization?

    <p>Transformation of economies from agrarian to industrial</p> Signup and view all the answers

    What is the primary benefit of specialization of labor?

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

    What is the primary function of aggregate demand in the economy?

    <p>To reflect the total demand for goods and services</p> Signup and view all the answers

    What is the primary impact of business cycles on price levels?

    <p>Inflation tends to rise during expansion</p> Signup and view all the answers

    What is the primary role of government and social services during economic downturns?

    <p>To support economically vulnerable populations</p> Signup and view all the answers

    What has been the primary driver of South Africa's service sector growth since 1994?

    <p>Globalization and technological advancements</p> Signup and view all the answers

    What is the primary challenge facing the South African labour force in terms of education and skills?

    <p>Inadequate education and skills training</p> Signup and view all the answers

    What is the primary impact of HIV/AIDS on South Africa's demographic patterns?

    <p>Slowed natural growth rate</p> Signup and view all the answers

    What is the primary policy implication for addressing South Africa's employment challenges?

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

    What is the primary reason for provincial disparities in employment opportunities in South Africa?

    <p>Urban overcrowding and service delivery challenges</p> Signup and view all the answers

    What is the primary impact of urbanization on South Africa's economic development?

    <p>Increased pressure on social services and infrastructure</p> Signup and view all the answers

    What is the primary challenge facing South Africa's economic development in terms of resource distribution?

    <p>Inequality and resource distribution</p> Signup and view all the answers

    What is the primary sector shift in South Africa's labour force?

    <p>From primary sectors to services and finance</p> Signup and view all the answers

    What is the primary impact of the informal sector on South Africa's employment challenges?

    <p>Limited development of small businesses</p> Signup and view all the answers

    What is the primary demographic trend in South Africa's population growth?

    <p>Rapid growth due to high birth rates and immigration</p> Signup and view all the answers

    What is the primary mechanism used by governments to influence economic activities?

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

    Which economic system combines elements of free markets and government control to balance growth and social welfare?

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

    What is the primary effect of mechanization on employment patterns?

    <p>Decreased labor demand</p> Signup and view all the answers

    What is the primary reason for the growth of urban areas during industrialization?

    <p>Concentration of economic activity and resources</p> Signup and view all the answers

    What is the primary function of limited liability companies?

    <p>To protect investors from losing more than their investment</p> Signup and view all the answers

    What is the primary role of financial institutions in the economy?

    <p>To manage savings and provide loans</p> Signup and view all the answers

    What is the primary consequence of globalization on developing countries?

    <p>Economic disparities between developed and developing nations</p> Signup and view all the answers

    What is the primary goal of the World Trade Organization (WTO)?

    <p>To promote fair trade practices</p> Signup and view all the answers

    What is the primary factor that has influenced economic growth and development in South Africa?

    <p>Discovery of diamonds and gold</p> Signup and view all the answers

    What is the primary challenge faced by developing countries in the context of globalization?

    <p>Exporting raw materials used in high-value finished goods</p> Signup and view all the answers

    What is the underlying assumption behind the concept of scarcity in economics?

    <p>Human wants are infinite, but resources are limited</p> Signup and view all the answers

    Which of the following economic questions deals with the allocation of resources among different groups of people?

    <p>For whom to produce?</p> Signup and view all the answers

    What is the main difference between microeconomics and macroeconomics?

    <p>Microeconomics studies the overall functioning of an economy, while macroeconomics focuses on individual decisions</p> Signup and view all the answers

    What is the primary goal of making economic decisions?

    <p>To allocate resources efficiently</p> Signup and view all the answers

    What is the core challenge in economics?

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

    Which branch of economics studies the broad issues like unemployment, inflation, and economic growth?

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

    What is the relationship between human wants and resources?

    <p>Human wants are infinite, and resources are limited</p> Signup and view all the answers

    What is the primary purpose of economic decision-making?

    <p>To allocate resources efficiently</p> Signup and view all the answers

    What is the primary characteristic of the recovery phase in a business cycle?

    <p>Gradual improvement in economic conditions occurs</p> Signup and view all the answers

    What is the primary impact of business cycles on employment?

    <p>Job creation increases during booms and decreases during recessions</p> Signup and view all the answers

    What is the primary role of aggregate supply in the economy?

    <p>Represents the total supply of goods and services available</p> Signup and view all the answers

    What is the primary consequence of industrialization and urbanization?

    <p>Massive urban migration and the growth of cities</p> Signup and view all the answers

    What is the primary benefit of specialization of labor?

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

    What is the primary impact of business cycles on exchange rates?

    <p>Economic strength or weakness can affect the value of the national currency</p> Signup and view all the answers

    What is the primary function of government and social services during economic downturns?

    <p>To provide crucial support to economically vulnerable populations</p> Signup and view all the answers

    What is the primary characteristic of endogenous reasons for business cycles?

    <p>Internal economic factors, such as fluctuations in investment</p> Signup and view all the answers

    What is the primary impact of business cycles on economically vulnerable populations?

    <p>They are more severely affected by economic downturns</p> Signup and view all the answers

    What is the primary purpose of understanding business cycles?

    <p>To anticipate economic changes and implement measures to mitigate adverse effects</p> Signup and view all the answers

    Which of the following factors is NOT a characteristic of sustainable economic development?

    <p>Environmental degradation</p> Signup and view all the answers

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

    <p>Collecting taxes and providing public services</p> Signup and view all the answers

    What is the primary difference between the primary and secondary sectors of the economy?

    <p>One involves extraction of natural resources, the other involves manufacturing</p> Signup and view all the answers

    What is the primary purpose of the formal sector in the economy?

    <p>To include all registered businesses whose activities are measured in official statistics</p> Signup and view all the answers

    Which of the following is a characteristic of the tertiary sector of the economy?

    <p>Provides services rather than goods</p> Signup and view all the answers

    What is the primary purpose of entrepreneurship in the economy?

    <p>To combine land, labor, and capital to create goods and services</p> Signup and view all the answers

    What is the primary difference between households and businesses in the circular flow model?

    <p>One provides labor and receives income, the other hires labor and produces goods</p> Signup and view all the answers

    What is the primary purpose of the exchange rate in the economy?

    <p>To determine how much of one currency can be exchanged for another</p> Signup and view all the answers

    What is the primary challenge to achieving sustainable development?

    <p>Pollution and environmental degradation</p> Signup and view all the answers

    What is the primary objective of Labour Economics?

    <p>To analyze the supply and demand for labour and its effects on wage levels and employment</p> Signup and view all the answers

    What is the primary role of government in promoting sustainable development?

    <p>To implement regulatory measures and supportive policies</p> Signup and view all the answers

    Which of the following approaches involves observing data to develop new theories?

    <p>Inductive reasoning</p> Signup and view all the answers

    What is the primary characteristic of economic goods?

    <p>They require scarce resources to produce</p> Signup and view all the answers

    Which of the following is a challenge faced by economic researchers?

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

    What is the primary focus of International Economics?

    <p>International trade and finance</p> Signup and view all the answers

    What is the primary advantage of using economic models?

    <p>They help understand and predict economic phenomena</p> Signup and view all the answers

    What is the primary difference between absolute and relative scarcity?

    <p>Absolute scarcity occurs when resources are insufficient, while relative scarcity exists when resources are sufficient but inaccessible</p> Signup and view all the answers

    Which of the following is a limitation of economic research?

    <p>It often leads to less precise results and conclusions</p> Signup and view all the answers

    What is the primary role of opportunity costs in economic decision-making?

    <p>To reflect the trade-offs when a choice is made</p> Signup and view all the answers

    Which of the following is a characteristic of the scientific method in economics?

    <p>It involves formulating a question, conducting investigations, and drawing conclusions based on evidence</p> Signup and view all the answers

    What is the primary difference between the Real Flow and the Monetary Flow in the economy?

    <p>The Real Flow represents the movement of goods and services, while the Monetary Flow represents the movement of money.</p> Signup and view all the answers

    Which of the following is a correct calculation of GDP using the Expenditure Approach?

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

    What is the primary limitation of GDP as a measure of economic activity?

    <p>It does not account for the distribution of income among the population.</p> Signup and view all the answers

    Which of the following is a characteristic of a leading indicator of economic changes?

    <p>It signals future economic changes before they occur.</p> Signup and view all the answers

    What is the primary purpose of per capita income calculation?

    <p>To provide an average income per person, dividing total GDP or GNI by the population.</p> Signup and view all the answers

    Which of the following is a characteristic of a counter-cyclical indicator?

    <p>It moves in the opposite direction of the economy.</p> Signup and view all the answers

    What is the primary purpose of understanding business cycles?

    <p>To understand the fluctuations in economic activity and make informed economic decisions.</p> Signup and view all the answers

    Which of the following is a characteristic of the Goods Market?

    <p>It is where goods and services are exchanged.</p> Signup and view all the answers

    What is the primary difference between GDP and GNI?

    <p>GDP focuses on production within the country, while GNI focuses on income earned by the country's nationals.</p> Signup and view all the answers

    Which of the following is a correct classification of economic indicators?

    <p>Leading indicators signal future economic changes, lagging indicators confirm changes that have already occurred, and coincident indicators move in tandem with the economy.</p> Signup and view all the answers

    What is the primary reason for governments to use taxation?

    <p>To influence economic activities</p> Signup and view all the answers

    What is the impact of mechanization on employment patterns?

    <p>It has replaced labor, affecting employment patterns</p> Signup and view all the answers

    What is the primary role of trade unions in the economy?

    <p>To improve working conditions and negotiate fair wages</p> Signup and view all the answers

    What is the primary consequence of globalization on developing countries?

    <p>They often export raw materials used in high-value finished goods</p> Signup and view all the answers

    What is the primary goal of the World Trade Organization (WTO)?

    <p>To promote fair global trade practices</p> Signup and view all the answers

    What is the primary characteristic of mixed economies?

    <p>They combine elements of free markets and government control</p> Signup and view all the answers

    What is the primary impact of industrialization on urbanization?

    <p>It has perpetuated urban growth, concentrating economic activity and resources</p> Signup and view all the answers

    What is the primary role of limited liability companies in the economy?

    <p>To promote entrepreneurship and investment</p> Signup and view all the answers

    What is the primary factor that shapes the global economic landscape?

    <p>Historical context and current dynamics of global economies</p> Signup and view all the answers

    What is the primary phase of South Africa's economic development that saw the discovery of diamonds and gold?

    <p>Agricultural-Mining Phase</p> Signup and view all the answers

    What is the primary reason for the shift from primary sectors to services and finance in South Africa's labour force?

    <p>Globalization and technological advancements</p> Signup and view all the answers

    What is the primary impact of HIV/AIDS on South Africa's population growth rate?

    <p>Slowed natural growth rate</p> Signup and view all the answers

    What is the primary challenge facing South Africa's population growth, according to the demographic cycle?

    <p>Rural-urban migration</p> Signup and view all the answers

    What is the primary reason for the high unemployment rate among the youth in South Africa?

    <p>Inadequate education and skills training</p> Signup and view all the answers

    What is the primary consequence of the informal sector's limited development in South Africa?

    <p>Challenges in employment</p> Signup and view all the answers

    What is the primary policy implication for addressing South Africa's labour force challenges?

    <p>Enhance education and skills training</p> Signup and view all the answers

    What is the primary factor driving South Africa's service sector growth since 1994?

    <p>Globalization and technological advancements</p> Signup and view all the answers

    What is the primary impact of urbanization on South Africa's population and labour force?

    <p>Increased demand for social services and infrastructure</p> Signup and view all the answers

    What is the primary challenge facing South Africa's education system in terms of labour force demands?

    <p>Inadequate education and skills training</p> Signup and view all the answers

    What is the primary consequence of the mismatch between South Africa's education system and labour force demands?

    <p>Challenges in employment and skills training</p> Signup and view all the answers

    What is the primary reason why individuals, governments, and societies must continuously make decisions about resource allocation?

    <p>Because resources are finite</p> Signup and view all the answers

    Which of the following economic questions deals with the issue of who will receive the products and services created?

    <p>For whom to produce?</p> Signup and view all the answers

    What is the focus of microeconomics?

    <p>The decisions of individuals and firms</p> Signup and view all the answers

    What is the relationship between human wants and resources?

    <p>Human wants are unlimited, and resources are finite</p> Signup and view all the answers

    Which branch of economics addresses broad issues like unemployment, inflation, and economic growth?

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

    What is the core challenge in economics?

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

    What is the primary goal of economic decision-making?

    <p>To allocate resources efficiently</p> Signup and view all the answers

    What is the primary reason why economics is a social science?

    <p>Because it focuses on the behavior of individuals and societies</p> Signup and view all the answers

    What is the primary purpose of the entrepreneur in the factors of production?

    <p>To combine the other three factors to create goods and services</p> Signup and view all the answers

    Which sector of the economy provides services rather than goods?

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

    What is the term for the total value of goods and services produced within a country?

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

    What is the primary focus of sustainable economic development?

    <p>Economic growth that is conducted without depleting natural resources or harming human and environmental health</p> Signup and view all the answers

    Which sector of the economy includes unregistered businesses?

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

    What is the primary component of sustainable economic development?

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

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

    <p>To collect taxes and provide public services and infrastructure</p> Signup and view all the answers

    Which of the following is NOT a type of good?

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

    What is the primary purpose of exchange rates?

    <p>To facilitate international trade by determining how much of one currency can be exchanged for another</p> Signup and view all the answers

    Which of the following is a characteristic of the formal sector?

    <p>Includes all registered businesses whose activities are measured in official statistics like GDP</p> Signup and view all the answers

    What is the primary distinction between absolute scarcity and relative scarcity?

    <p>Absolute scarcity occurs when resources are insufficient to produce a good, while relative scarcity exists when resources are sufficient but inaccessible due to economic constraints.</p> Signup and view all the answers

    Which of the following is NOT a characteristic of economic models?

    <p>Economic models can accurately predict economic phenomena without any error.</p> Signup and view all the answers

    What is the primary challenge in conducting economic research?

    <p>Maintaining all variables constant except one.</p> Signup and view all the answers

    Which of the following is an example of an economic good?

    <p>Bread.</p> Signup and view all the answers

    What is the primary purpose of the scientific method in economics?

    <p>To formulate hypotheses and test them against empirical data.</p> Signup and view all the answers

    Which branch of economics focuses on the economic activities of government?

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

    What is the primary difference between positive and normative economics?

    <p>Positive economics focuses on describing and predicting economic phenomena, while normative economics involves value judgments.</p> Signup and view all the answers

    What is the fundamental concept in economics that reflects the trade-offs when a choice is made?

    <p>Opportunity cost.</p> Signup and view all the answers

    Which of the following is NOT a characteristic of free goods?

    <p>Free goods require scarce resources to produce.</p> Signup and view all the answers

    What is the primary focus of the Goods Market?

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

    What is the primary purpose of economic decision-making?

    <p>To allocate scarce resources in the most efficient way possible.</p> Signup and view all the answers

    Which approach to calculating GDP involves the sum of all outputs produced?

    <p>Product Approach</p> Signup and view all the answers

    What is the main limitation of GDP as a measure of economic activity?

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

    What type of economic indicator moves in the opposite direction of the economy?

    <p>Counter-cyclical Indicator</p> Signup and view all the answers

    What is the primary purpose of per capita income calculation?

    <p>To provide an average income per person</p> Signup and view all the answers

    What is the characteristic of a time series in representing business cycles?

    <p>It tracks economic changes over successive time intervals</p> Signup and view all the answers

    What is the primary difference between GDP and GNI?

    <p>GDP focuses on domestic production, while GNI accounts for all income earned by nationals</p> Signup and view all the answers

    What is the primary function of the Foreign Sector in the economy?

    <p>To engage in trade, affecting imports and exports</p> Signup and view all the answers

    What is the primary characteristic of a business cycle?

    <p>An alternating pattern of expansion and contraction</p> Signup and view all the answers

    Which of the following is a limitation of using GDP as a measure of economic activity?

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

    What is the primary characteristic of the boom phase in a business cycle?

    <p>A period of peak economic performance</p> Signup and view all the answers

    Which of the following is an exogenous reason for business cycles?

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

    What is the primary impact of business cycles on employment?

    <p>Job creation increases during booms and decreases during recessions</p> Signup and view all the answers

    What is the primary function of aggregate demand in the economy?

    <p>To measure the total demand for goods and services</p> Signup and view all the answers

    Which of the following is a characteristic of economically vulnerable populations?

    <p>They suffer the most during economic downturns</p> Signup and view all the answers

    What is the primary purpose of understanding business cycles?

    <p>To anticipate economic changes and implement measures to mitigate adverse effects</p> Signup and view all the answers

    Which of the following is an example of an endogenous reason for business cycles?

    <p>Fluctuations in investment</p> Signup and view all the answers

    What is the primary impact of business cycles on exchange rates?

    <p>Economic strength or weakness can affect the value of the national currency</p> Signup and view all the answers

    What is the primary characteristic of the recovery phase in a business cycle?

    <p>A period of gradual improvement in economic conditions</p> Signup and view all the answers

    What is the primary role of government and social services during economic downturns?

    <p>To support economically vulnerable populations</p> Signup and view all the answers

    What is the primary reason for the mixed economy approach?

    <p>To balance government control with free market principles</p> Signup and view all the answers

    How did the discovery of diamonds and gold impact the economy during the Agricultural-Mining Phase?

    <p>It transformed the economy, attracting immigrants and promoting infrastructure development</p> Signup and view all the answers

    What is the primary role of financial institutions in the economy?

    <p>To facilitate economic growth by managing savings and providing loans</p> Signup and view all the answers

    What is the primary challenge facing developing countries in the context of globalization?

    <p>The perpetuation of economic imbalances, as they export raw materials and import high-value finished goods</p> Signup and view all the answers

    What is the primary function of the World Trade Organization (WTO)?

    <p>To promote fair trade practices and regulate global trade</p> Signup and view all the answers

    What is the primary impact of mechanization on employment patterns?

    <p>It has replaced labor with machinery, affecting employment patterns</p> Signup and view all the answers

    What is the primary role of limited liability companies in promoting economic growth?

    <p>To promote entrepreneurship and investment by protecting investors</p> Signup and view all the answers

    What is the primary consequence of urbanization and industrialization?

    <p>The concentration of economic activity and resources in urban areas</p> Signup and view all the answers

    What is the primary role of trade unions in promoting economic growth?

    <p>To improve working conditions and negotiate fair wages</p> Signup and view all the answers

    What is the primary challenge facing governments in promoting economic growth and development?

    <p>Balancing the need for economic growth with social welfare and environmental protection</p> Signup and view all the answers

    What has been the primary factor driving South Africa's population growth since 1970?

    <p>High birth rates and immigration</p> Signup and view all the answers

    What is the primary consequence of urbanization on social services and infrastructure in South Africa?

    <p>Increased pressure on urban infrastructure and services</p> Signup and view all the answers

    What is the primary challenge facing the South African labour force in terms of education and skills?

    <p>Inadequate education and skills training</p> Signup and view all the answers

    What is the primary impact of the HIV/AIDS epidemic on South Africa's population growth rate?

    <p>Slowed natural growth rate</p> Signup and view all the answers

    What is the primary sector of the South African economy that has driven growth since 1994?

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

    What is the primary reason for the demographic cycle in South Africa?

    <p>Economic development and improvement in living standards</p> Signup and view all the answers

    What is the primary challenge facing the informal sector in South Africa?

    <p>Limited development and support</p> Signup and view all the answers

    What is the primary policy implication for addressing the challenges of urbanization in South Africa?

    <p>Improving urban planning and infrastructure</p> Signup and view all the answers

    What is the primary consequence of the brain drain on South Africa's economy?

    <p>Insufficient education and skills affecting service quality</p> Signup and view all the answers

    What is the primary characteristic of the South African labour force?

    <p>Youthful and underutilized</p> Signup and view all the answers

    What is the primary reason why individuals and societies must continuously make decisions about resource allocation?

    <p>Because human wants are limitless, yet resources are limited</p> Signup and view all the answers

    Which of the following is NOT a primary economic question?

    <p>Why to produce?</p> Signup and view all the answers

    What is the main focus of microeconomics?

    <p>The decisions of individuals and firms</p> Signup and view all the answers

    What is the core challenge in economics?

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

    Which branch of economics studies the broad issues like unemployment, inflation, and economic growth?

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

    What is the primary goal of economic decision-making?

    <p>To allocate resources efficiently</p> Signup and view all the answers

    What is the relationship between human wants and resources?

    <p>Human wants are infinite, and resources are limited</p> Signup and view all the answers

    What is the main difference between microeconomics and macroeconomics?

    <p>Microeconomics focuses on individual decisions, while macroeconomics focuses on the overall economy</p> Signup and view all the answers

    What is the primary focus of International Economics?

    <p>International trade and finance</p> Signup and view all the answers

    Which approach in economics involves developing hypotheses based on existing theories and testing them against empirical data?

    <p>Deductive reasoning</p> Signup and view all the answers

    What is the primary purpose of economic models?

    <p>To understand and predict economic phenomena</p> Signup and view all the answers

    What is the primary challenge in economic research?

    <p>Dealing with human behaviors that are diverse and difficult to predict</p> Signup and view all the answers

    What is the primary difference between absolute and relative scarcity?

    <p>Absolute scarcity occurs when resources are insufficient, while relative scarcity occurs when resources are sufficient but inaccessible</p> Signup and view all the answers

    What is the primary characteristic of economic goods?

    <p>They require scarce resources to produce</p> Signup and view all the answers

    What is the primary purpose of opportunity cost?

    <p>To reflect the trade-offs when a choice is made</p> Signup and view all the answers

    What is the primary focus of Labour Economics?

    <p>The supply and demand for labour and its effect on wage levels and employment</p> Signup and view all the answers

    What is the primary characteristic of the scientific method in economics?

    <p>Conducting investigations and drawing conclusions based on evidence</p> Signup and view all the answers

    What is the primary challenge in achieving sustainable development?

    <p>The limited availability of resources</p> Signup and view all the answers

    What is the primary purpose of the Goods Market in the economy?

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

    Which of the following approaches is used to calculate GDP by summing up the value of all outputs produced?

    <p>Product Approach</p> Signup and view all the answers

    What is the primary difference between GDP and GNI?

    <p>GDP focuses on production within the country, while GNI focuses on income earned by nationals</p> Signup and view all the answers

    What type of economic indicators are used to analyze changes in the business cycle?

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

    What is the primary characteristic of a procyclical indicator?

    <p>It moves in the same direction as the economy</p> Signup and view all the answers

    What is the primary purpose of understanding business cycles?

    <p>To make informed economic decisions</p> Signup and view all the answers

    What is the primary limitation of GDP as a measure of economic activity?

    <p>It does not account for the distribution of income</p> Signup and view all the answers

    What is the primary characteristic of the Real Flow in the economy?

    <p>It is the movement of goods and services</p> Signup and view all the answers

    What is the primary purpose of the Factor Market in the economy?

    <p>To trade factors of production</p> Signup and view all the answers

    What is the primary purpose of per capita income calculation?

    <p>To understand the economic well-being of the average citizen</p> Signup and view all the answers

    What is the primary reason why households are considered the main consumers of goods and services in the economy?

    <p>They provide the labor that drives economic activity.</p> Signup and view all the answers

    Which of the following is NOT a characteristic of the primary sector of the economy?

    <p>It provides services rather than goods.</p> Signup and view all the answers

    What is the primary difference between the formal and informal sectors of the economy?

    <p>The formal sector includes only registered businesses, while the informal sector includes unregistered businesses.</p> Signup and view all the answers

    What is the primary purpose of the circular flow model in economics?

    <p>To illustrate the continuous movement of money and goods among different economic agents and markets.</p> Signup and view all the answers

    What is the primary benefit of sustainable economic development?

    <p>It leads to economic growth without harming the environment.</p> Signup and view all the answers

    What is the primary role of entrepreneurship in the economy?

    <p>To combine the other three factors of production to create goods and services.</p> Signup and view all the answers

    What is the primary difference between durable and non-durable goods?

    <p>Durable goods are used for a long period of time, while non-durable goods are used for a short period of time.</p> Signup and view all the answers

    What is the primary purpose of regulatory measures in achieving sustainable economic development?

    <p>To ban environmentally harmful activities.</p> Signup and view all the answers

    What is the primary characteristic of the tertiary sector of the economy?

    <p>It provides services rather than goods.</p> Signup and view all the answers

    What is the primary purpose of understanding the concept of scarcity in economics?

    <p>To understand how to allocate resources efficiently.</p> Signup and view all the answers

    What is the primary role of governments in mixed economies?

    <p>To balance growth and social welfare</p> Signup and view all the answers

    What is the primary effect of mechanization on employment patterns?

    <p>It has replaced labor with machinery, affecting employment patterns</p> Signup and view all the answers

    What is the primary function of trade unions in the economy?

    <p>To improve working conditions and negotiate fair wages</p> Signup and view all the answers

    What is the primary consequence of globalization for developing countries?

    <p>It has resulted in economic disparities between developed and developing nations</p> Signup and view all the answers

    What is the primary goal of the World Trade Organization (WTO)?

    <p>To promote fair global trade practices</p> Signup and view all the answers

    What is the primary characteristic of the industrial development phase in South Africa's economy?

    <p>It was driven by global technological advances and internal policies</p> Signup and view all the answers

    What is the primary impact of urbanization on economic activity?

    <p>It has concentrated economic activity and resources in urban areas</p> Signup and view all the answers

    What is the primary role of financial institutions in the economy?

    <p>To manage savings and provide loans</p> Signup and view all the answers

    What is the primary characteristic of limited liability companies?

    <p>They protect investors from losing more than their investment</p> Signup and view all the answers

    What is the primary benefit of understanding the historical context of global economies?

    <p>It helps in gratifying the complex interactions between economic growth, development, and globalization</p> Signup and view all the answers

    What is the primary reason for the emergence of trade in early societies?

    <p>Accumulation of wealth and power</p> Signup and view all the answers

    Which of the following best describes the impact of business cycles on employment?

    <p>Job creation increases during booms and decreases during recessions</p> Signup and view all the answers

    What is the primary characteristic of the recovery phase in a business cycle?

    <p>Gradual improvement in economic conditions</p> Signup and view all the answers

    What is the primary role of aggregate demand in the economy?

    <p>To identify the total demand for goods and services</p> Signup and view all the answers

    What is the primary consequence of industrialization and urbanization?

    <p>Massive urban migration and shaping of modern cities</p> Signup and view all the answers

    What is the primary benefit of specialization of labor?

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

    Which of the following is an example of an endogenous reason for business cycles?

    <p>Fluctuations in investment</p> Signup and view all the answers

    What is the primary impact of business cycles on price levels?

    <p>Inflation tends to rise during expansions</p> Signup and view all the answers

    What is the primary role of government and social services during economic downturns?

    <p>To support economically vulnerable populations</p> Signup and view all the answers

    What is the primary purpose of understanding business cycles?

    <p>To anticipate economic changes and implement measures to mitigate the adverse effects</p> Signup and view all the answers

    What is the primary driver of South Africa's economic transformation from an agrarian base to a complex industrial and service-oriented economy?

    <p>Globalization and technological advancements</p> Signup and view all the answers

    Which of the following demographic trends is most closely related to urbanization in South Africa?

    <p>Rural-urban migration</p> Signup and view all the answers

    What is the primary consequence of HIV/AIDS on South Africa's demographic profile?

    <p>Reduced population growth rate</p> Signup and view all the answers

    What is the primary challenge facing the South African labour force in terms of age composition?

    <p>High proportion of youth unemployment</p> Signup and view all the answers

    Which of the following is a primary challenge facing the South African economy in terms of education and skills?

    <p>Inadequate education and skills training</p> Signup and view all the answers

    What is the primary impact of urbanization on social services and infrastructure in South Africa?

    <p>Increased demand for social services</p> Signup and view all the answers

    What is the primary policy implication for addressing the challenges facing the South African labour force?

    <p>Enhance education and skills training</p> Signup and view all the answers

    Which of the following is a primary challenge facing the South African economy in terms of geographic distribution of employment?

    <p>Provincial disparities in employment opportunities</p> Signup and view all the answers

    What is the primary consequence of the informal sector on employment in South Africa?

    <p>Limited development of small businesses</p> Signup and view all the answers

    What is the primary policy implication for addressing the challenges facing the South African economy in terms of urbanization?

    <p>Improve infrastructure and urban planning</p> Signup and view all the answers

    What is the underlying reason for the economic problem of scarcity?

    <p>Human wants are infinite, but resources are limited.</p> Signup and view all the answers

    Which branch of economics examines the overall functioning of an economy?

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

    What is the primary focus of microeconomics?

    <p>The decisions of individuals and firms</p> Signup and view all the answers

    What are the three primary economic questions?

    <p>What to produce, how to produce, and who to produce for.</p> Signup and view all the answers

    Why do individuals, governments, and societies need to make decisions about resource allocation?

    <p>Because resources are finite and human wants are infinite.</p> Signup and view all the answers

    What is the core challenge in economics?

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

    What is the primary goal of economic decision-making?

    <p>To allocate resources efficiently</p> Signup and view all the answers

    What is the relationship between human wants and resources?

    <p>Human wants are infinite, and resources are finite.</p> Signup and view all the answers

    What is the primary purpose of the Goods Market?

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

    Which of the following is a limitation of using GDP as a measure of economic activity?

    <p>It does not account for income distribution</p> Signup and view all the answers

    What is the purpose of calculating per capita income?

    <p>To understand the economic well-being of the average citizen</p> Signup and view all the answers

    What is the primary characteristic of a counter-cyclical indicator?

    <p>It moves in the opposite direction of the economy</p> Signup and view all the answers

    What is the primary difference between GDP and GNI?

    <p>GDP measures production within the country, while GNI measures income earned by nationals</p> Signup and view all the answers

    What is the primary purpose of understanding business cycles?

    <p>To facilitate economic planning and forecasting</p> Signup and view all the answers

    What is the primary characteristic of the Real Flow?

    <p>It represents the movement of goods and services</p> Signup and view all the answers

    What is the primary function of Financial Institutions?

    <p>To provide loans and facilitate savings</p> Signup and view all the answers

    Which of the following is an example of a leading indicator of economic changes?

    <p>Stock prices</p> Signup and view all the answers

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

    <p>To calculate total spending on final goods and services</p> Signup and view all the answers

    Which branch of economics studies the economic activities of government and its role in the economy?

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

    What is the primary purpose of economic models in economics?

    <p>To test hypotheses and make economic predictions</p> Signup and view all the answers

    Which type of scarcity exists when resources are sufficient to satisfy needs but are inaccessible to most due to economic constraints?

    <p>Relative Scarcity</p> Signup and view all the answers

    What is the primary focus of International Economics?

    <p>International trade and finance</p> Signup and view all the answers

    What is the primary method of economics that involves value judgments and subjective perspectives?

    <p>Normative Economics</p> Signup and view all the answers

    What is the primary challenge to economic research?

    <p>Dealing with human behaviors that are diverse and difficult to predict</p> Signup and view all the answers

    What is the primary purpose of economic decision-making?

    <p>To allocate scarce resources efficiently</p> Signup and view all the answers

    What is the primary concept that reflects the trade-offs when a choice is made?

    <p>Opportunity cost</p> Signup and view all the answers

    What is the primary approach used in economics to research and draw conclusions?

    <p>The scientific method</p> Signup and view all the answers

    What is the primary focus of Labour Economics?

    <p>The supply and demand for labour</p> Signup and view all the answers

    What is the primary characteristic of the recovery phase in a business cycle?

    <p>Gradual improvement in economic conditions and a return to growth</p> Signup and view all the answers

    Which of the following is an example of an exogenous reason for business cycles?

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

    What is the primary impact of business cycles on employment?

    <p>Job creation increases during booms and decreases during recessions</p> Signup and view all the answers

    What is the primary role of language skills and learning in the development of trade and commerce?

    <p>Recording transactions and transmitting knowledge</p> Signup and view all the answers

    What is the primary consequence of industrialization and urbanization?

    <p>The shaping of modern cities and economic hubs</p> Signup and view all the answers

    What is the primary benefit of specialization of labor?

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

    What is the primary function of aggregate demand in the economy?

    <p>To determine the total demand for goods and services</p> Signup and view all the answers

    What has contributed significantly to South Africa's population growth from 22 million in 1970 to 50 million by 2010?

    <p>High birth rates and immigration</p> Signup and view all the answers

    What is the primary impact of business cycles on economically vulnerable populations?

    <p>They are disproportionately affected by economic downturns</p> Signup and view all the answers

    What is the primary purpose of understanding business cycles?

    <p>To anticipate economic changes and implement measures to mitigate the adverse effects</p> Signup and view all the answers

    What is a significant challenge facing the South African labour force in terms of education and skills?

    <p>Inadequate education and skills mismatch</p> Signup and view all the answers

    What is the primary characteristic of a business cycle?

    <p>It is a cyclical process with phases of growth and decline</p> Signup and view all the answers

    What is a key feature of South Africa's demographic transition?

    <p>Decreasing mortality rates</p> Signup and view all the answers

    What is the primary economic sector driving South Africa's growth since 1994?

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

    What is a key policy implication for addressing South Africa's challenges?

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

    What is the impact of HIV/AIDS on South Africa's population growth?

    <p>Slowed natural growth rate</p> Signup and view all the answers

    What is a characteristic of South Africa's urbanization process?

    <p>Rapid urbanization</p> Signup and view all the answers

    What is a key challenge facing the informal sector in South Africa?

    <p>Limited development and support</p> Signup and view all the answers

    What is a key factor contributing to youth unemployment in South Africa?

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

    What is a characteristic of South Africa's economy?

    <p>Service sector-oriented economy</p> Signup and view all the answers

    What is the primary role of taxation in governments' economic influence?

    <p>To fund public services and infrastructure, thereby influencing economic activities</p> Signup and view all the answers

    What is the primary characteristic of mixed economies?

    <p>Combination of elements of free markets and government control to balance growth and social welfare</p> Signup and view all the answers

    What is the primary impact of mechanization on employment patterns?

    <p>Replacement of labor with machinery, affecting employment patterns</p> Signup and view all the answers

    What is the primary reason why the government sector is involved in the economy?

    <p>To provide public goods and services that benefit society as a whole</p> Signup and view all the answers

    What is the primary role of limited liability companies in encouraging entrepreneurship?

    <p>Protection of investors from losing more than their investment</p> Signup and view all the answers

    Which factor of production is responsible for combining the other three factors to create goods and services?

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

    What is the primary difference between the formal and informal sectors of the economy?

    <p>The formal sector is registered and included in official economic statistics, while the informal sector is not</p> Signup and view all the answers

    What is the primary consequence of globalization on developing countries?

    <p>Exploitation by developed countries and economic imbalances</p> Signup and view all the answers

    What is the primary goal of sustainable economic development?

    <p>To conduct economic growth without depleting natural resources or harming human and environmental health</p> Signup and view all the answers

    What is the primary goal of the World Trade Organization (WTO)?

    <p>Promotion of fair global trade practices and reduction of trade barriers</p> Signup and view all the answers

    Which sector of the economy is involved in the extraction of natural resources?

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

    What is the primary characteristic of the agricultural-mining phase of South Africa's economic development?

    <p>The discovery of diamonds and gold, transforming the economy</p> Signup and view all the answers

    What is the primary factor that influenced industrial development in South Africa?

    <p>Global technological advances and internal policies</p> Signup and view all the answers

    What is the primary role of households in the economy?

    <p>To provide labor and receive income used to purchase goods and services</p> Signup and view all the answers

    What is the primary difference between durable goods and non-durable goods?

    <p>Durable goods are long-lasting, while non-durable goods are consumed immediately or shortly after purchase</p> Signup and view all the answers

    What is the primary challenge facing the South African economy?

    <p>Inadequate capital and skilled labor shortages</p> Signup and view all the answers

    What is the primary role of trade unions in improving working conditions?

    <p>Negotiation of fair wages and working conditions</p> Signup and view all the answers

    What is the primary purpose of the circular flow model?

    <p>To illustrate the interactions between households, businesses, and the government in the economy</p> Signup and view all the answers

    What is the primary characteristic of the tertiary sector of the economy?

    <p>It provides services rather than goods</p> Signup and view all the answers

    What is the primary benefit of sustainable economic development?

    <p>It enhances resource efficiency and reduces waste</p> Signup and view all the answers

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