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Questions and Answers

What is the fundamental challenge in economics?

  • Limited resources
  • Inefficient production
  • Unlimited wants
  • Scarcity (correct)

    • What is the primary focus of microeconomics?

  • Government policies and international trade
  • The decisions of individuals and firms (correct)
  • Economic growth and inflation
  • Unemployment and poverty rates

    • What is the primary goal of resource allocation in economics?

  • To allocate resources efficiently (correct)
  • To maximize profits
  • To satisfy unlimited wants
  • To distribute resources equally

    • Which of the following is NOT a primary economic question?

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

    What is the primary focus of macroeconomics?

    <p>The overall functioning of an economy</p> Signup and view all the answers

    What is the reason for the fundamental economic problem?

    <p>The dichotomy between infinite desires and finite means</p> Signup and view all the answers

    What do individuals, governments, and societies need to make decisions about?

    <p>Resource allocation and prioritization</p> Signup and view all the answers

    What is the primary reason for the existence of economics as a social science?

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

    What is the stage of the business cycle characterized by high economic activity and increasing employment?

    <p>Prosperity</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 total demand for goods and services in the economy?

    <p>Aggregate Demand</p> Signup and view all the answers

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

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

    What is the primary focus 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 led to the establishment of structured communities and leadership hierarchies in early societies?

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

    What is the primary focus of Monetary Economics?

    <p>The role of money in the economy</p> Signup and view all the answers

    What is the approach used by economists to understand and predict economic phenomena?

    <p>Both deductive and inductive reasoning</p> Signup and view all the answers

    What was the main consequence of industrialization and urbanization?

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

    What is a result of specialization of labor?

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

    What is the purpose of economic models?

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

    What is the primary effect of business cycles on economic growth?

    <p>Expansion phases lead to growth, while contraction phases lead to declines</p> Signup and view all the answers

    What is the primary difference between Positive and Normative Economics?

    <p>Positive Economics is objective, while Normative Economics involves value judgments</p> Signup and view all the answers

    What is the systematic approach used in economics research?

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

    What is the impact of business cycles on price levels?

    <p>Inflation tends to rise during expansion and can stabilize or fall during contractions</p> Signup and view all the answers

    What is the fundamental economic challenge?

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

    What is the difference between absolute and relative scarcity?

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

    What is an opportunity cost?

    <p>The foregone benefit of the next best alternative</p> Signup and view all the answers

    What is the primary focus of Labour Economics?

    <p>Analyzing the supply and demand for labor</p> Signup and view all the answers

    What is the primary challenge in economic research?

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

    What is the primary function of financial institutions?

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

    What is the term for the movement of goods and services?

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

    What is the purpose of the Goods Market?

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

    What is the formula for the Expenditure Approach to calculate GDP?

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

    What is the main difference between GDP and GNI?

    <p>GDP is a measure of production, while GNI is a measure of income</p> Signup and view all the answers

    What is the main limitation of GDP and GNI?

    <p>All of the above</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 business cycles?

    <p>Alternating periods of expansion and contraction</p> Signup and view all the answers

    What type of economic indicator signals future economic changes before they occur?

    <p>Leading Indicator</p> Signup and view all the answers

    What is the term for data collected over successive time intervals to track economic changes?

    <p>Time Series</p> Signup and view all the answers

    What is one way governments influence economic activities?

    <p>Through taxation and finance</p> Signup and view all the answers

    What is a characteristic of mixed economies?

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

    What is the primary purpose of budget allocations in a government?

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

    What is a result of mechanization in production processes?

    <p>Increased output and replaced labor</p> Signup and view all the answers

    Which of the following is NOT a factor of production?

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

    What is a consequence of industrialization?

    <p>Urban growth and increased economic activity</p> Signup and view all the answers

    What is the primary activity of the secondary sector?

    <p>Manufacturing and processing</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 main difference between the formal and informal sectors?

    <p>Formal sector is registered and measured in official statistics, while informal sector is not</p> Signup and view all the answers

    What is a role of trade unions?

    <p>To improve working conditions and negotiate fair wages</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

    What is the primary goal of sustainable economic development?

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

    What is a consequence of globalization?

    <p>Economic opportunities have expanded, but economic disparities have increased</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 term for the total value of goods and services produced within a country's borders?

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

    What is a characteristic of the early agricultural history of South Africa?

    <p>Predominantly agrarian economy with minimal trade</p> Signup and view all the answers

    Which of the following is an example of a durable good?

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

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

    <p>To provide labor and receive income</p> Signup and view all the answers

    What is a factor that promoted industrial development in South Africa?

    <p>Government incentives and entrepreneurial immigrants</p> Signup and view all the answers

    What is the main purpose of regulatory measures in promoting sustainable development?

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

    What has driven the growth of the service sector in South Africa's economy since 1994?

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

    What is a major challenge facing the South African labour force?

    <p>Youth unemployment</p> Signup and view all the answers

    What has impacted life expectancy and demographic patterns in South Africa?

    <p>The HIV/AIDS epidemic</p> Signup and view all the answers

    What is a result of inadequate education and skills training in South Africa?

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

    What is a shift observed in the South African labour force?

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

    What is a policy implication of the labour force trends in South Africa?

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

    What is a characteristic of South Africa's population growth?

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

    What is a factor influencing population growth in South Africa?

    <p>Fertility rates and migration</p> Signup and view all the answers

    What is a consequence of urbanization in South Africa?

    <p>Increased infrastructure demands</p> Signup and view all the answers

    What is a challenge in employment in South Africa?

    <p>Limited development of the informal sector</p> Signup and view all the answers

    Which branch of economics deals with the role of money in the economy?

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

    What is the primary goal of economic models?

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

    Which approach 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 term for a good that is naturally available without cost?

    <p>Free Good</p> Signup and view all the answers

    What is the primary focus of Developmental Economics?

    <p>Policies that promote economic development in less developed countries</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 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 term for the foregone benefit of the next best alternative when a choice is made?

    <p>Opportunity Cost</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 focus of Public Sector Economics?

    <p>The economic activities of government</p> Signup and view all the answers

    What is the primary reason for the existence of economics as a social science?

    <p>To allocate resources to satisfy unlimited wants and needs</p> Signup and view all the answers

    Which economic question deals with deciding who will receive the products and services created?

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

    Which branch of economics focuses on the overall functioning of an economy?

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

    What is the primary reason for the fundamental economic problem?

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

    What is the primary focus of economics?

    <p>To allocate resources to satisfy unlimited wants and needs</p> Signup and view all the answers

    What is the primary challenge in resource allocation?

    <p>Balancing the fulfillment of diverse needs against available financial capacities</p> Signup and view all the answers

    Which economic question deals with deciding which goods and services should be produced?

    <p>What to produce?</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 is the primary function of entrepreneurship in the four factors of production?

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

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

    <p>Extraction of natural resources vs. manufacturing and processing</p> Signup and view all the answers

    What is the primary goal of sustainable development?

    <p>To achieve economic growth without depleting natural resources or harming human and environmental health</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

    What is the main role of governments in the economy?

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

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

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

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

    <p>Registration of businesses and inclusion in official statistics</p> Signup and view all the answers

    What is the primary function of the public sector of 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 focus of the circular flow model?

    <p>To explain the dynamics of the economy through a circular flow model</p> Signup and view all the answers

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

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

    What has driven the growth of the service sector in South Africa since 1994?

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

    What is a significant challenge facing the South African economy?

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

    What is the estimated population of South Africa by 2010?

    <p>50 million</p> Signup and view all the answers

    What has led to urbanization in South Africa?

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

    What has impacted life expectancy and demographic patterns in South Africa?

    <p>HIV/AIDS epidemic</p> Signup and view all the answers

    What is a significant challenge facing the South African labour force?

    <p>Skills and education</p> Signup and view all the answers

    What has led to a shift in the South African labour force?

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

    What is a challenge in employment in South Africa?

    <p>Limited development of the informal sector</p> Signup and view all the answers

    What is the primary function of financial institutions?

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

    What is a critical need for policy-making in South Africa?

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

    What is essential for accommodating growing populations in urban areas?

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

    What is the term for the movement of money in exchange for goods, services, and labor?

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

    What is the primary focus of the Goods Market?

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

    What is the formula for the Expenditure Approach to calculate GDP?

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

    What is the main difference between GDP and GNI?

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

    What is the 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 business cycles?

    <p>Alternating periods of expansion and contraction</p> Signup and view all the answers

    What type of economic indicator signals future economic changes before they occur?

    <p>Leading Indicator</p> Signup and view all the answers

    What is the term for data collected over successive time intervals to track economic changes?

    <p>Time Series</p> Signup and view all the answers

    What is the primary focus of understanding business cycles?

    <p>To understand the causes of business cycles</p> Signup and view all the answers

    What is the phase of the business cycle characterized by a downturn in economic growth and employment?

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

    What is an example of an exogenous reason for business cycles?

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

    What is the total supply of goods and services available in the economy?

    <p>Aggregate Supply</p> Signup and view all the answers

    What is 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 focus of understanding business cycles?

    <p>Anticipating economic changes and implementing measures to mitigate the adverse effects</p> Signup and view all the answers

    What is the characteristic of economically vulnerable populations during economic downturns?

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

    What is the result of specialization of labor?

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

    What led to the establishment of structured communities and leadership hierarchies in early societies?

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

    What is the main 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 focus of economic growth and development?

    <p>Improving the standard of living and economic well-being</p> Signup and view all the answers

    What is the primary role of governments in the economy?

    <p>To provide public services and infrastructure through taxation</p> Signup and view all the answers

    What is a characteristic of mixed economies?

    <p>Combination of government control and free market</p> Signup and view all the answers

    What has been the impact of mechanization on production processes?

    <p>It has greatly increased output</p> Signup and view all the answers

    What has been the consequence of urbanization?

    <p>An increase in economic activity</p> Signup and view all the answers

    What is the primary role 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 purpose of trade unions?

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

    What has been the impact of globalization on developing countries?

    <p>It has contributed to 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 characteristic of economic development in South Africa during the Agricultural-Mining Phase?

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

    What has been the impact of industrialization on economic growth?

    <p>It has led to an increase in economic growth</p> Signup and view all the answers

    What is the primary reason for the existence of the economic problem?

    <p>Human wants are unlimited, but resources are limited</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

    Which of the following is a primary economic question?

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

    What is the focus of macroeconomics?

    <p>The overall functioning of an economy</p> Signup and view all the answers

    What is the result of the fundamental economic problem?

    <p>Choice and allocation of resources</p> Signup and view all the answers

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

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

    What is the primary goal of economic decision-making?

    <p>To distribute 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

    What is the primary function of entrepreneurship?

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

    What is the main characteristic of the tertiary sector?

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

    What is the primary purpose of government regulatory measures?

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

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

    <p>One is registered, and the other is not</p> Signup and view all the answers

    What is the primary goal of sustainable economic development?

    <p>To conduct economic growth without harming the environment or human health</p> Signup and view all the answers

    What is the primary function of the public sector?

    <p>To invest in public goods and services that benefit society</p> Signup and view all the answers

    What is the primary purpose of exchange rates?

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

    What is the primary characteristic of durable goods?

    <p>They are long-lasting</p> Signup and view all the answers

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

    <p>To hire labor and produce goods and services</p> Signup and view all the answers

    What is the primary purpose of disposable income?

    <p>To spend on goods and services or save</p> Signup and view all the answers

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

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

    What type of economics involves value judgments and subjective perspectives on what the economy should be like?

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

    What is the term for the limited availability of resources that leads to the necessity of making choices?

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

    What is the purpose of economic models?

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

    What is the approach used by economists to understand and predict economic phenomena?

    <p>Both deductive and inductive reasoning</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 term for the benefit of the next best alternative when a choice is made?

    <p>Opportunity Cost</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 focus of Labour Economics?

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

    What is the term for goods that are naturally available without cost?

    <p>Free Goods</p> Signup and view all the answers

    What is the primary function of financial institutions in an economy?

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

    What is the term for the movement of goods and services in an economy?

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

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

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

    What is the formula for the Expenditure Approach to calculate GDP?

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

    What is the main 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 is the primary limitation of GDP and GNI?

    <p>All of the above</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 business cycles?

    <p>They are alternating periods of expansion and contraction</p> Signup and view all the answers

    What type of economic indicator signals future economic changes before they occur?

    <p>Leading Indicator</p> Signup and view all the answers

    What is the term for data collected over successive time intervals to track economic changes?

    <p>Time Series</p> Signup and view all the answers

    What is the primary phase of the business cycle characterized by peak economic performance?

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

    What is the term for the total supply of goods and services available in the economy?

    <p>Aggregate Supply</p> Signup and view all the answers

    Which of the following is an internal economic factor influencing business cycles?

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

    What is the primary effect of business cycles on employment?

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

    What is the primary consequence of industrialization and urbanization?

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

    What is the primary focus of understanding business cycles in economic planning?

    <p>Anticipating economic changes</p> Signup and view all the answers

    What is the primary characteristic of economically vulnerable populations during business cycles?

    <p>Reduced income and higher unemployment rates</p> Signup and view all the answers

    What is the primary effect of specialization of labor?

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

    What is the primary reason for the growth of towns and mercantile law?

    <p>Expansion of trade</p> Signup and view all the answers

    What is the primary effect of business cycles on economic growth?

    <p>Expansion during booms and contraction during recessions</p> Signup and view all the answers

    What has been the main driver of the growth of the service sector in South Africa since 1994?

    <p>Globalization and infrastructure improvements</p> Signup and view all the answers

    What is the estimated population of South Africa by 2010?

    <p>50 million</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 a significant challenge facing the South African labour force?

    <p>High youth unemployment</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?

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

    What is the primary challenge in employment in South Africa?

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

    What is the primary need for policy-making in South Africa?

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

    What is the primary factor influencing population growth in South Africa's rural areas?

    <p>Socio-economic conditions</p> Signup and view all the answers

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

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

    What is the primary purpose of understanding population and labour force trends in South Africa?

    <p>To inform policy-making and economic planning</p> Signup and view all the answers

    What is the main purpose of taxation in governments?

    <p>To fund public services and infrastructure</p> Signup and view all the answers

    What is the result of mechanization in production processes?

    <p>Increased output and replaced labor</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 trade unions?

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

    What is the primary impact 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 global trade practices</p> Signup and view all the answers

    What is the characteristic of mixed economies?

    <p>Combination of free markets and government control</p> Signup and view all the answers

    What is the primary consequence of urbanization?

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

    What is the primary role of financial institutions?

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

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

    <p>To gratify the complex interactions between economic growth, development, and globalization</p> Signup and view all the answers

    What is the main reason for the existence of economics as a social science?

    <p>To allocate limited resources to satisfy unlimited wants and needs</p> Signup and view all the answers

    Which branch of economics examines how individuals and firms interact in the market?

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

    What is the primary economic question related to deciding who will receive the products and services created?

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

    What is the main characteristic of the economic problem?

    <p>Limited resources and unlimited wants</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 primary challenge in making economic decisions?

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

    What do individuals, governments, and societies continuously make decisions about?

    <p>How to allocate resources</p> Signup and view all the answers

    What is the primary reason for the importance of economics in society?

    <p>To allocate limited resources to satisfy unlimited wants and needs</p> Signup and view all the answers

    What is the primary sector involved in?

    <p>Extraction of natural resources</p> Signup and view all the answers

    What is entrepreneurship in the context of the four factors of production?

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

    What is the term for intangible products like banking and healthcare?

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

    What sector provides public goods and services that benefit society as a whole?

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

    What is the purpose of supportive measures in achieving sustainable development?

    <p>To provide subsidies and incentives for environmentally friendly practices</p> Signup and view all the answers

    What is the primary function of the tertiary sector?

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

    What is the primary goal of budget allocations in a government?

    <p>To allocate resources effectively</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

    What is the main difference between the formal and informal sectors?

    <p>Formal sector includes registered businesses, while informal sector includes unregistered businesses</p> Signup and view all the answers

    What is the primary focus of sustainable economic development?

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

    What is the primary focus of Developmental Economics?

    <p>The policies that promote economic development in less developed countries</p> Signup and view all the answers

    Which type of economics involves value judgments and subjective perspectives?

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

    What is the primary purpose of economic models?

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

    What is the main difference between absolute 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 to most due to economic constraints</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 focus of Environmental Economics?

    <p>The economic issues with environmental implications</p> Signup and view all the answers

    What is the primary focus of International Economics?

    <p>The study of international trade and finance</p> Signup and view all the answers

    What is the primary purpose of deductive reasoning in economics?

    <p>To develop hypotheses based on existing theories</p> Signup and view all the answers

    What is the primary focus of Public Sector Economics?

    <p>The economic activities of government</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 function of financial institutions in an economy?

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

    Which of the following flows represents the movement of goods and services?

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

    What is the primary purpose of the Goods Market?

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

    What is the formula for the Expenditure Approach to calculate GDP?

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

    What is the primary difference between GDP and GNI?

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

    What is the primary limitation of GDP and GNI?

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

    What is the primary purpose of per capita income calculation?

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

    What type of economic indicator signals future economic changes before they occur?

    <p>Leading Indicator</p> Signup and view all the answers

    What is the term for data collected over successive time intervals to track economic changes?

    <p>Time Series</p> Signup and view all the answers

    What is the characteristic of business cycles?

    <p>They are cyclical and unpredictable</p> Signup and view all the answers

    What has been the main driver of South Africa's economic growth since 1994?

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

    What is the estimated population of South Africa by 2010?

    <p>50 million</p> Signup and view all the answers

    What is the main factor affecting South Africa's demographic patterns?

    <p>HIV/AIDS epidemic</p> Signup and view all the answers

    What is the main challenge in the South African labour force?

    <p>Age composition and unemployment</p> Signup and view all the answers

    What is the main reason for the shift from primary sectors to services and finance in South Africa?

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

    Which provinces have the highest population percentages in South Africa?

    <p>Gauteng and Kwazulu-Natal</p> Signup and view all the answers

    What is the primary need for policies to address the challenges in the South African labour force?

    <p>Education and training</p> Signup and view all the answers

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

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

    What is the main challenge in addressing the informal sector in South Africa?

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

    What is the primary focus of policy-making in relation to population and labour force trends in South Africa?

    <p>Economic growth and development</p> Signup and view all the answers

    What is the phase of the business cycle characterized by decreasing economic growth and output?

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

    Which of the following is an internal economic factor influencing business cycles?

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

    What is the term for the total supply of goods and services available in the economy?

    <p>Aggregate Supply</p> Signup and view all the answers

    What is the primary purpose of taxation in economies?

    <p>To fund public services and infrastructure</p> Signup and view all the answers

    What is the main effect of mechanization on employment patterns?

    <p>Replacement of labor</p> Signup and view all the answers

    What is the impact of business cycles on employment opportunities?

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

    What is the primary function of financial institutions in economies?

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

    Which of the following groups is disproportionately affected by business cycles?

    <p>Economically vulnerable populations</p> Signup and view all the answers

    What is the primary focus of understanding business cycles?

    <p>Anticipating economic changes</p> Signup and view all the answers

    What is a characteristic of mixed economies?

    <p>Combination of government control and free market</p> Signup and view all the answers

    What is the primary role of trade unions in economies?

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

    What led to the development of language and writing in early societies?

    <p>The need for trade and commerce</p> Signup and view all the answers

    What is the result of specialization of labor?

    <p>An improvement in productivity</p> Signup and view all the answers

    What is the primary consequence of urbanization?

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

    What is the consequence of industrialization and urbanization?

    <p>A shift from agrarian to industrial economies</p> Signup and view all the answers

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

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

    What is the primary effect of globalization on developing countries?

    <p>Economic disparities and imbalances</p> Signup and view all the answers

    What is the primary focus of economic growth and development?

    <p>Improving standards of living</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 characteristic of industrial development?

    <p>Shift towards industrialization and technological advances</p> Signup and view all the answers

    What is the reason for the existence of the economic problem?

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

    Which branch of economics focuses on the overall functioning of an economy?

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

    What is the primary goal of economic decisions in resource allocation?

    <p>To distribute resources efficiently</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 are the three primary economic questions?

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

    What is the definition of economics?

    <p>The study of how individuals and businesses make decisions to allocate scarce resources to satisfy their unlimited wants and needs</p> Signup and view all the answers

    What is the relationship between human wants and resources?

    <p>Human wants are unlimited and resources are limited</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 primary focus of Developmental Economics?

    <p>Policies that promote economic development in less developed countries</p> Signup and view all the answers

    Which branch of economics focuses on the supply and demand for labour and how they affect wage levels and employment?

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

    What is the term for the benefit of the next best alternative when a choice is made?

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

    Which type of economics involves value judgments and subjective perspectives on what the economy should be like?

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

    What is the primary approach used by economists to understand and predict economic phenomena?

    <p>Deductive and inductive reasoning</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 term for the resources that are naturally available without cost?

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

    What is the purpose of economic models?

    <p>To help understand and predict the interactions and outcomes of economic actions</p> Signup and view all the answers

    What is the primary difference between absolute and relative scarcity?

    <p>One is related to the availability of resources and the other is related to economic constraints</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 sector of the economy involved in?

    <p>Extraction of natural resources</p> Signup and view all the answers

    What is the term for intangible products like banking and healthcare?

    <p>Services</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

    What is the role of entrepreneurship in the factors of production?

    <p>Combining the other three factors</p> Signup and view all the answers

    What is the main difference between the formal and informal sectors?

    <p>Formal sector is registered, while informal sector is unregistered</p> Signup and view all the answers

    What is the primary goal of sustainable economic development?

    <p>Conducting economic growth without depleting natural resources</p> Signup and view all the answers

    What is the term for businesses owned by individuals or corporations?

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

    What is the primary activity of the secondary sector?

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

    What is the term for goods that are long-lasting?

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

    What is the primary role of government in the economy?

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

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

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

    What are the two main flows in the economy?

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

    What is the purpose of the Goods Market?

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

    What is GDP?

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

    What is the Expenditure Approach to calculate GDP?

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

    What is the main 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 purpose of per capita income calculation?

    <p>To understand the average income per person in a country</p> Signup and view all the answers

    What is the characteristic of business cycles?

    <p>They are characterized by alternating periods of expansion and contraction</p> Signup and view all the answers

    What type of economic indicator signals future economic changes before they occur?

    <p>Leading Indicator</p> Signup and view all the answers

    What is the term for data collected over successive time intervals to track economic changes?

    <p>Time Series</p> Signup and view all the answers

    What characterizes the prosperity phase of the business cycle?

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

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

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

    What is the primary purpose of government taxation?

    <p>To fund public services and infrastructure</p> Signup and view all the answers

    What is a characteristic of mixed economies?

    <p>Balance between government control and market freedom</p> Signup and view all the answers

    What is the total supply of goods and services available in the economy?

    <p>Aggregate Supply</p> Signup and view all the answers

    What is the impact of business cycles on employment?

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

    What is the primary effect of mechanization in production processes?

    <p>Increased output and replaced labor</p> Signup and view all the answers

    What is the primary focus of economic growth and development?

    <p>Improving standards of living</p> Signup and view all the answers

    What is the primary role of financial institutions?

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

    What is a consequence of urbanization?

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

    What led to the establishment of structured communities and leadership hierarchies in early societies?

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

    What is the result of specialization of labor?

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

    What is the primary goal of trade unions?

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

    What is a characteristic of multinational corporations?

    <p>They operate in multiple countries and have a significant impact on global markets</p> Signup and view all the answers

    What is the primary effect of business cycles on economic growth?

    <p>Expansion phases lead to growth</p> Signup and view all the answers

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

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

    What is the 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 a result of globalization?

    <p>Economic opportunities have expanded, but also contributed to economic disparities</p> Signup and view all the answers

    What is the primary focus of understanding business cycles?

    <p>Economic planning and policymaking</p> Signup and view all the answers

    What is the primary role of limited liability companies?

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

    What has driven the growth of the service sector in South Africa's economy?

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

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

    <p>Brain drain and crime</p> Signup and view all the answers

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

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

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

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

    What is a significant challenge facing South Africa's labour force?

    <p>Youth unemployment</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 economy?

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

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

    <p>It has limited development and contributes to employment challenges</p> Signup and view all the answers

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

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

    What is a challenge facing urban planning and infrastructure in South Africa?

    <p>Accommodating growing populations and reducing urban sprawl</p> Signup and view all the answers

    What is the primary goal of policy-making and economic planning in South Africa?

    <p>To address inequality and resource distribution</p> Signup and view all the answers

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