June P1 Hard

What is the primary focus of the two-sector model in explaining the multiplier effect?

What is the term for the highest point of economic activity in a business cycle?

What is the formula for the multiplier in a simple two-sector model?

What is the term for the lowest point of economic activity in a business cycle?

What is the purpose of fiscal policy?

What is the name of the theory that explains business cycles due to changes in aggregate demand?

What is the term for external influences that affect business cycles?

What is the purpose of monetary policy?

What is the term for the phase of the business cycle where economic indicators decline?

What is the term for the potential increase in economic output resulting from an initial increase in spending?

What is the primary purpose of directing government spending towards public goods and services?

What is the main concern with administered prices?

What is the primary challenge faced by the public sector in South Africa?

Which sector in the circular flow model provides labor and resources to the economy?

What is the result of moral hazard in the public sector?

What is the primary function of the Financial Market in the circular flow model?

What is the optimal outcome of the Laffer Curve?

What is the primary function of the public sector in South Africa?

Which of the following is NOT a component of the circular flow model?

What is the primary function of the Foreign Sector in the circular flow model?

What is the primary function of the Goods Market in the circular flow model?

What does the circular flow model illustrate in an open economy?

What is the relationship between the multiplier effect and additional spending?

What is the primary metric used to measure the economic performance in the circular flow model?

What is the primary objective of the New Economic Paradigm?

Which of the following is a characteristic of supply-side policies?

What is the primary purpose of leading indicators in forecasting business cycles?

Which of the following is a challenge faced by the public sector in providing services?

What is the primary objective of the Medium-Term Expenditure Framework (MTEF) in the public sector?

What is the primary focus of fiscal policy instruments in managing economic activity?

Which of the following is a key objective of the public sector in promoting economic growth?

What is the primary challenge faced by state-owned enterprises (SOEs) in the public sector?

What is the primary purpose of studying business cycles in economic planning and policymaking?

What is the primary focus of the Laffer Curve in fiscal policy?

Which sector in the circular flow model receives income from consumption, savings, and taxes?

What is the primary function of the Goods Market in the circular flow model?

What is the term for the total economic output at market prices?

Which market manages the flow of money, including savings and investments, via institutions like banks?

What is the primary function of the Foreign Sector in the circular flow model?

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

What is the term for the movement of goods and services in the circular flow model?

Which of the following is an example of a market that facilitates economic activities in the circular flow model?

What is the primary concern when implementing subsidies and taxes in the public sector?

What is the primary cause of inefficiencies in administered prices?

What is the primary risk associated with bureaucracy in the public sector?

What is the primary objective of directing government spending towards public goods and services?

What is the primary implication of information failure in the public sector?

What is the primary conclusion about the public sector in South Africa?

What is the primary reason for the inclusion of government and foreign transactions in the three and four-sector models?

Which of the following is a characteristic of the Keynesian theory of business cycles?

What is the primary purpose of monetary policy in managing business cycles?

What is the term for the phenomenon where an initial increase in spending leads to a more significant overall increase in economic output?

Which of the following is a feature of the contraction phase of a business cycle?

What is the primary purpose of fiscal policy in managing business cycles?

Which of the following is a type of price that accounts for the economic approach of production?

What is the term for the phase of the business cycle where economic indicators such as employment and production show significant growth?

Which of the following is a characteristic of the Schumpeterian theory of business cycles?

What is the primary reason for the importance of understanding business cycles in economic planning and policymaking?

What is the primary objective of using a mix of demand-side and supply-side policies in the New Economic Paradigm?

What is the primary difference between leading indicators and coincident indicators in forecasting business cycles?

What is the primary purpose of the public sector in providing essential services?

What is the primary challenge faced by the public sector in assessing needs for effective service delivery?

What is the primary objective of the Medium-Term Expenditure Framework (MTEF) in the public sector?

What is the primary purpose of fiscal policy instruments in managing economic activity?

What is the primary objective of the public sector in promoting economic growth?

What is the primary challenge faced by state-owned enterprises (SOEs) in the public sector?

What is the primary purpose of studying business cycles in economic planning and policymaking?

What is the primary focus of supply-side policies in achieving economic stability?

What is the primary implication of mismanaging subsidies and taxes in the public sector?

What is the primary risk associated with bureaucracy in the public sector?

What is the primary objective of directing government spending towards public goods and services?

What is the primary challenge faced by the public sector in South Africa?

What is the primary implication of information failure in the public sector?

What is the primary conclusion about the public sector in South Africa?

What is the primary objective of the circular flow model in an open economy?

What is the term for the movement of goods and services in the circular flow model?

What is the primary function of the Financial Market in the circular flow model?

What is the term for the total economic output at market prices?

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

What is the primary function of the Foreign Sector in the circular flow model?

What is the primary function of the Goods Market in the circular flow model?

What is the primary function of the Factor Market in the circular flow model?

What is the primary objective of the New Economic Paradigm?

Which of the following is a characteristic of demand-side policies?

What is the primary purpose of forecasting business cycles?

What is the primary function of the public sector in providing essential services?

What is the primary challenge faced by the public sector in providing services?

What is the primary objective of fiscal policy instruments?

What is the primary purpose of leading indicators in forecasting business cycles?

What is the primary challenge faced by state-owned enterprises (SOEs) in the public sector?

What is the primary reason for the difference in the categorization of prices into Basic Prices, Factor Cost, and Market Prices?

What is the primary focus of the Medium-Term Expenditure Framework (MTEF) in the public sector?

What is the primary objective of studying business cycles in economic planning and policymaking?

Which of the following is a characteristic of the Schumpeterian theory of business cycles?

What is the primary implication of the multiplier effect on the economy?

What is the primary role of the government in managing business cycles?

Which of the following is a characteristic of the contraction phase of the business cycle?

What is the primary difference between the two-sector model and the three and four-sector models?

What is the primary focus of the Keynesian theory of business cycles?

What is the primary objective of monetary policy?

What is the primary characteristic of the expansion phase of the business cycle?

What is the primary reason for the importance of understanding business cycles in economic planning and policymaking?

What is the primary reason why subsidies and taxes can lead to inefficiencies in the public sector?

According to the Laffer Curve, what is the optimal tax rate?

What is the primary consequence of information failure in the public sector?

What is the primary role of the public sector in South Africa?

What is the primary challenge faced by the public sector in terms of bureaucracy?

What is the primary implication of moral hazard in the public sector?

What is the primary focus of the circular flow model in an open economy?

What is the term for the total economic output at market prices in the circular flow model?

Which market facilitates the trading of currencies necessary for international trade in the circular flow model?

What is the primary function of the Government sector in the circular flow model?

What is the term for the movement of goods and services in the circular flow model?

Which sector in the circular flow model receives income from consumption, savings, and taxes?

What is the primary metric used to measure the economic performance in the circular flow model?

What is the term for the flow of money, including savings and investments, via institutions like banks in the circular flow model?

What is the primary objective of the New Economic Paradigm in achieving stable growth?

Which of the following indicators confirms trends that are already in process in forecasting business cycles?

What is the primary function of state-owned enterprises (SOEs) in the public sector?

What is the primary challenge faced by the public sector in providing services?

What is the primary objective of the Medium-Term Expenditure Framework (MTEF) in the public sector?

What is the primary focus of fiscal policy instruments in managing economic activity?

What is the primary purpose of studying business cycles in economic planning and policymaking?

What is the primary challenge faced by state-owned enterprises (SOEs) in the public sector?

What is the primary objective of the public sector in promoting economic growth?

What is the primary concern when implementing subsidies and taxes in the public sector?

What is the primary difference between the two-sector model and the three and four-sector models?

What is the primary function of the multiplier formula in the context of the multiplier effect?

What is the primary characteristic of the contraction phase of a business cycle?

What is the primary purpose of monetary policy in the context of business cycles?

What is the primary focus of the Schumpeterian theory of business cycles?

What is the primary difference between the peak and trough of a business cycle?

What is the primary purpose of fiscal policy in the context of business cycles?

What is the primary characteristic of endogenous factors influencing business cycles?

What is the primary purpose of understanding business cycles in economic planning and policymaking?

What is the primary difference between the Keynesian and Classical theories of business cycles?

What is the primary benefit of understanding the multiplier effect in the circular flow model?

Which sector in the circular flow model is responsible for injecting spending into the economy through public services and infrastructure?

What is the primary function of the Financial Market in the circular flow model?

What is the term for the total economic output at market prices in the circular flow model?

Which market in the circular flow model involves trade activities, where exports add to the economic flow and imports lead to outflows of currency?

What is the primary difference between Real Flows and Money Flows in the circular flow model?

Which sector in the circular flow model provides labor and resources to the economy?

What is the primary purpose of the circular flow model in an open economy?

What is the primary difference between the two-sector model and the three and four-sector models in explaining the multiplier effect?

What is the main implication of the marginal propensity to consume (MPC) on the multiplier effect?

What is the primary characteristic of the Schumpeterian theory of business cycles?

What is the primary purpose of monetary policy in managing business cycles?

What is the primary difference between the contraction and expansion phases of a business cycle?

What is the primary implication of the two-sector model on the analysis of business cycles?

What is the primary concern of the Keynesian theory of business cycles?

What is the primary reason for the importance of understanding business cycles in economic policy and planning?

What is the primary implication of the exogenous factors on business cycles?

What is the primary reason why governments may not set optimal tax rates, despite the insights from the Laffer Curve?

What is the primary role of the multiplier effect in the context of business cycles?

What is the primary implication of information failure in the public sector?

What is the main challenge faced by the public sector in South Africa, according to the text?

What is the primary concern when implementing subsidies and taxes in the public sector?

What is the primary risk associated with bureaucracy in the public sector?

What is the primary function of the public sector in South Africa?

What is the main advantage of using a mix of demand-side and supply-side policies in achieving stable growth?

What is the primary purpose of leading indicators in forecasting business cycles?

What is the primary focus of the public sector in providing essential services?

What is the primary objective of the Medium-Term Expenditure Framework (MTEF) in the public sector?

What is the primary challenge faced by state-owned enterprises (SOEs) in the public sector?

What is the primary focus of fiscal policy instruments in managing economic activity?

What is the primary objective of studying business cycles in economic planning and policymaking?

What is the primary purpose of supply-side policies in achieving economic growth?

What is the primary challenge faced by the public sector in providing services?

What is the primary objective of the New Economic Paradigm?