Nov P1 Hard

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

The Expenditure Method includes intermediate goods, while the Income Method excludes them.
The Expenditure Method focuses on domestic production, while the Income Method includes foreign production.
The Expenditure Method includes transfer payments, while the Income Method excludes them.
The Expenditure Method calculates GDP from the production side, while the Income Method calculates it from the expenditure side. (correct)

What is the main advantage of a mixed economy, like that of South Africa?

It promotes efficient resource allocation through market forces.
It allows for complete government control over the economy.
It balances freedom of market operations with government oversight. (correct)
It eliminates poverty and inequality completely.

What is Gross Fixed Capital Formation (I) a reflection of?

Total investment in physical assets that will be used in future production. (correct)
Total income received by residents from investments abroad.
Total consumption expenditure by households.
Total domestic expenditure on goods and services.

What is a characteristic of a centrally planned economy?

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

What is the main disadvantage of a market economy?

Potential for significant inequalities in income and wealth distribution. (B) Signup and view all the answers

What is Gross National Income (GNI) equal to?

GDP plus net income from abroad. (B) Signup and view all the answers

What is the primary role of the government in a mixed economy, like that of South Africa?

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

What is the main advantage of a centrally planned economy?

Even distribution of income. (C) Signup and view all the answers

What does the circular flow model provide insights into?

How money and goods circulate within an economy. (B) Signup and view all the answers

What is the main challenge faced by the South African government in providing social services?

Inefficiencies in service delivery. (D) Signup and view all the answers

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

They provide raw materials for goods and services (D) Signup and view all the answers

What characteristic of natural resources affects their distribution across regions?

Their uneven distribution (B) Signup and view all the answers

What is the form of remuneration typically received for natural resources?

Rent (D) Signup and view all the answers

What is the primary factor that influences labor supply?

Population growth (D) Signup and view all the answers

What is the characteristic of labor that makes it inherently non-storable?

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

What is the primary factor that affects labor productivity?

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

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

It drives economic development (A) Signup and view all the answers

What is the primary characteristic that distinguishes the four primary factors of production?

Their distinct characteristics (A) Signup and view all the answers

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

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

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

Involves the extraction and harvesting of natural resources (B) Signup and view all the answers

What has been a significant historical issue affecting the primary sector in South Africa?

Discriminatory policies depriving black South Africans of land ownership and equal opportunities (C) Signup and view all the answers

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

To transform raw materials from the primary sector into finished goods (D) Signup and view all the answers

What has been a significant historical issue affecting the secondary sector in South Africa?

Discriminatory policies restricting training and job opportunities for black individuals (A) Signup and view all the answers

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

Tertiary sector (C) Signup and view all the answers

What has been a significant historical issue affecting the tertiary sector in South Africa?

Discriminatory policies restricting black people from owning businesses and property (A) Signup and view all the answers

What is essential for South Africa's economic competitiveness?

High-quality, competitively priced goods (D) Signup and view all the answers

What is a significant challenge facing South Africa's energy sector?

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

What is crucial for the facilitation of domestic and international trade in South Africa?

Efficient transport networks (C) Signup and view all the answers

What is the primary factor that influences wage levels?

Demand for specific labor types and broader economic conditions (B) Signup and view all the answers

Which of the following is NOT a characteristic of capital?

Financial markets (C) Signup and view all the answers

What is the primary reward for entrepreneurship?

Profit (A) Signup and view all the answers

What is the purpose of the circular flow diagram?

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

What is the difference between final and intermediate goods?

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

What is the primary purpose of recalculating the poverty line income annually?

To account for inflation (D) Signup and view all the answers

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

Labor Supply (D) Signup and view all the answers

Which index measures the intensity of poverty by calculating the average shortfall from the poverty line?

Poverty gap index (C) Signup and view all the answers

What is the Value Added Method used to calculate?

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

What is a characteristic of fiat money?

It is universally accepted (C) Signup and view all the answers

Which of the following is an economic aggregate?

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

What is the purpose of investment in capital goods?

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

What is the primary function of the South African Reserve Bank (SARB) in relation to the government?

Acting as a banker to the government (B) Signup and view all the answers

What is the primary consequence of bank failures on the economy?

Systemic risk affecting the broader economy (D) Signup and view all the answers

What is the role of entrepreneurs in economic systems?

To generate wealth, create jobs, and foster competition (A) Signup and view all the answers

What is the primary purpose of micro-lending?

To provide small loans to individuals unable to access traditional bank financing (D) Signup and view all the answers

What is a function of money related to its role in facilitating transactions?

Medium of exchange (A) Signup and view all the answers

What is the primary tool used by the South African Reserve Bank (SARB) to control inflation?

Repo rate adjustments (D) Signup and view all the answers

What is the primary reason for regulating micro-lending in South Africa?

To prevent predatory lending practices (B) Signup and view all the answers

What is the primary role of banks in credit creation?

Extending loans exceeding their cash reserves (D) Signup and view all the answers

Which of the following factors is NOT a reason for uneven distribution of wealth?

Natural Resources (C) Signup and view all the answers

What is the main limitation of using Per Capita GDP to measure standard of living?

It does not account for income distribution disparities (B) Signup and view all the answers

Which of the following is a characteristic of economic growth?

Increase in the capacity of an economy to produce goods and services (C) Signup and view all the answers

What is the primary purpose of taxation policies aimed at equity?

To redistribute wealth (C) Signup and view all the answers

Which of the following is NOT a factor influencing economic growth?

Weather Patterns (D) Signup and view all the answers

What is the primary difference between economic growth and economic development?

Economic growth focuses on output, while economic development focuses on welfare (D) Signup and view all the answers

What is the primary purpose of social grants as a method of wealth redistribution?

To provide a minimum level of income for the disadvantaged (C) Signup and view all the answers

Which of the following is a characteristic of a Lorenz Curve?

It illustrates the actual distribution of wealth across a population (B) Signup and view all the answers

What is the primary purpose of anti-discrimination legislation as a method of wealth redistribution?

To reduce structural inequality (B) Signup and view all the answers

Which of the following is a limitation of using GDP per capita to measure economic performance?

It does not account for income distribution disparities (B) Signup and view all the answers

What is the primary goal of economic development?

Improving the overall standard of living in a country (C) Signup and view all the answers

What is the primary characteristic of a developing country's economy?

Low standard of living and high poverty rates (C) Signup and view all the answers

What is the primary strategy for promoting economic development in developing countries?

Promoting entrepreneurship and improving infrastructure (C) Signup and view all the answers

What is the primary role of the Human Development Index (HDI)?

Measuring a country's development through factors like life expectancy, education, and GDP per capita (A) Signup and view all the answers

What is the primary goal of South Africa's Reconstruction and Development Programme (RDP)?

Restructuring the economy to enable sustainable development (A) Signup and view all the answers

What is the primary characteristic of Indigenous Knowledge Systems (IKS)?

Experiential knowledge gained through direct experience (A) Signup and view all the answers

What is the primary difference between absolute poverty and relative poverty?

Absolute poverty is defined by the lack of basic human needs, while relative poverty is defined by a comparative lack within society (C) Signup and view all the answers

What is the primary goal of modernization of agriculture in developing countries?

Enhancing agricultural productivity through advanced technology (B) Signup and view all the answers

What is the primary role of capital investment in fostering economic development?

Investing in both directly productive assets and indirectly productive infrastructure (A) Signup and view all the answers

What is the primary focus of the Growth, Employment, and Redistribution Policy (GEAR) in South Africa?

Stabilizing the economy and promoting growth and redistribution (A) Signup and view all the answers

What is the primary reason why capital is essential for economic growth?

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

What is the primary role of entrepreneurs in economic systems?

To initiate and manage businesses, identifying new opportunities and innovatively combining production factors (D) Signup and view all the answers

What is the primary distinction between final and intermediate goods?

Final goods are used in further production, while intermediate goods are not (B) Signup and view all the answers

What is the primary purpose of the circular flow diagram?

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

What is the primary factor that influences the rate of return on invested funds?

Risk, liquidity, investment duration, capital demand, funding supply, and monetary policy (B) Signup and view all the answers

What is the primary reward for entrepreneurship?

Profit (C) Signup and view all the answers

What is the primary characteristic of capital?

It is essential for economic growth (D) Signup and view all the answers

What is the primary purpose of investment in capital goods?

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

What is the primary characteristic of labor?

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

What is the primary function of the circular flow model?

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

What is the primary reason why entrepreneurship is considered a distinct factor of production?

It is a source of innovation and risk-taking (A) Signup and view all the answers

What is the primary difference between skilled and unskilled labor?

The level of education required to perform the job (A) Signup and view all the answers

What is the primary characteristic of natural resources that affects their distribution across regions?

Their uneven distribution (B) Signup and view all the answers

What is the primary reason why capital is a distinct factor of production?

It is a man-made resource used to produce goods and services (B) Signup and view all the answers

What is the primary factor that affects labor productivity?

The level of education and skills of the workforce (D) Signup and view all the answers

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

Their ability to be replenished (D) Signup and view all the answers

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

They provide raw materials for goods and services (D) Signup and view all the answers

What is the primary form of remuneration for labor?

Wages (C) Signup and view all the answers

What is the primary advantage of using the Expenditure Method to calculate GDP?

It is a more intuitive approach to understanding economic activity (B) Signup and view all the answers

Which of the following is a characteristic of a mixed economy, such as that of South Africa?

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

What is the primary role of the government in a mixed economy, like that of South Africa, in relation to economic growth?

To promote economic growth through efficient economic services (C) Signup and view all the answers

What is the primary advantage of a market economy?

Wide product variety and consumer choice (A) Signup and view all the answers

What is the primary limitation of using Gross Domestic Product (GDP) as an indicator of economic health?

It does not account for income distribution (C) Signup and view all the answers

What is the primary benefit of understanding the circular flow model?

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

What is the primary characteristic of a centrally planned economy that distinguishes it from a market economy?

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

What is the primary disadvantage of a mixed economy, such as that of South Africa?

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

What is the primary role of the government in a mixed economy, like that of South Africa, in relation to social welfare?

To provide social services to improve public welfare (B) Signup and view all the answers

What is the primary benefit of a mixed economy, such as that of South Africa?

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

What is the primary goal of South Africa's initiatives such as ASGISA and the New Economic Growth Path?

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

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

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

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

Insufficient emphasis on renewable energy (C) Signup and view all the answers

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

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

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

The tertiary sector (B) Signup and view all the answers

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

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

What is the primary reason for supporting local businesses and facilitating international trade in South Africa?

To promote economic growth and employment (B) Signup and view all the answers

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

They enhance economic competitiveness (A) Signup and view all the answers

What is the primary historical issue affecting the primary sector in South Africa?

Discriminatory policies depriving black South Africans of land ownership (D) Signup and view all the answers

What is the primary role of the Black Economic Empowerment (BEE) initiative in South Africa?

Addressing historical issues of discrimination and exclusion (C) Signup and view all the answers

What is the primary objective of strategies like Resource Improvement and Capital Investment in economic development?

To enhance the quality and value of natural resources and stimulate growth (B) Signup and view all the answers

What is the main difference between economic growth and economic development?

Economic growth is solely focused on increasing GDP, while economic development is focused on improving the standard of living (A) Signup and view all the answers

What is the primary goal of economic development?

To improve the standard of living of a society (D) Signup and view all the answers

What is the primary purpose of the Reconstruction and Development Programme (RDP) in South Africa?

To restructure the economy to enable sustainable development (B) Signup and view all the answers

What is a characteristic of Indigenous Knowledge Systems (IKS)?

It is rooted in specific communities and traditions (A) Signup and view all the answers

What is a characteristic of wealth in economic terms?

The ability to generate income and appreciate in value (B) Signup and view all the answers

What is the primary purpose of measuring wealth distribution?

To illustrate the actual distribution of wealth across a population (B) Signup and view all the answers

What is the primary challenge faced by developing countries in terms of their population?

Rapid population increases (D) Signup and view all the answers

What is the primary purpose of the Human Development Index (HDI)?

To measure a country's development through factors like life expectancy, education, and GDP per capita (D) Signup and view all the answers

What is a factor that influences economic growth?

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

What is the primary limitation of using Per Capita GDP to measure standard of living?

It does not account for income distribution disparities (A) Signup and view all the answers

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

It is characterized by a reliance on primary sector outputs with minimal industrial diversification (B) Signup and view all the answers

What is the primary reason for uneven distribution of wealth?

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

What is the primary advantage of promoting entrepreneurship in developing countries?

It creates jobs and diversifies goods and services (C) Signup and view all the answers

What is the primary reason why developing countries face challenges in terms of infrastructure?

They have insufficient capital and outdated technology (D) Signup and view all the answers

What is the primary purpose of social grants?

To redistribute wealth (A) Signup and view all the answers

What is the primary difference between absolute poverty and relative poverty?

Absolute poverty involves the lack of basic human needs, while relative poverty is a comparative lack within society (B) Signup and view all the answers

What is a characteristic of economic growth?

It is measured in both nominal and real terms (B) Signup and view all the answers

What is the primary factor that influences the standard of living?

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

What is the primary goal of initiatives aimed at wealth redistribution?

To reduce income inequality (D) Signup and view all the answers

What is the primary reason why poverty persists despite efforts to alleviate it?

The cyclical nature of poverty, where its effects can perpetuate its causes (D) Signup and view all the answers

What is the primary characteristic that distinguishes fiat money from commodity money?

Fiat money is not backed by a physical commodity (C) Signup and view all the answers

What is the primary function of the South African Reserve Bank (SARB) in relation to the banking sector?

To regulate the banking sector and maintain financial stability (D) Signup and view all the answers

What is the primary consequence of bank failures on the economy?

Loss of public trust in the banking system and potential systemic risk (A) Signup and view all the answers

What is the primary purpose of micro-lending?

To provide small loans to individuals unable to access traditional bank financing (B) Signup and view all the answers

What is the primary tool used by the South African Reserve Bank (SARB) to control inflation?

Monetary policy implementation through repo rate adjustments (B) Signup and view all the answers

What is the primary characteristic of money that enables it to facilitate transactions?

Uniformity and general acceptance (D) Signup and view all the answers

What is the primary reason for regulating micro-lending in South Africa?

To prevent predatory lending practices and ensure fair interest rates (B) Signup and view all the answers

What is the primary role of banks in credit creation?

To extend loans exceeding their cash reserves, effectively creating new money (A) Signup and view all the answers

What is the primary effect of poverty on the economy?

Reduced economic demand and contributing to a perpetual cycle of poverty (A) Signup and view all the answers

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

To identify the resources that can be replenished naturally and those that cannot (C) Signup and view all the answers

Which of the following is a characteristic that distinguishes labor from other factors of production?

It is inherently non-storable (C) Signup and view all the answers

What is the primary factor that affects the level of entrepreneurship in an economy?

Government policies and regulations (D) Signup and view all the answers

What is the primary form of remuneration received for capital?

Interest (A) Signup and view all the answers

Which of the following is a characteristic of entrepreneurship?

It involves taking risks and innovating (C) Signup and view all the answers

What is the primary reason why labor productivity is important for economic growth?

It influences the overall efficiency of production (D) Signup and view all the answers

Which of the following is NOT a characteristic of natural resources?

They are always renewable (B) Signup and view all the answers

What is the primary reason why the distribution of natural resources affects economic dynamics?

It affects the availability of resources for production (A) Signup and view all the answers

What is the primary purpose of capital in economic growth?

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

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

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

What is the primary difference between final and intermediate goods?

Final goods are not used in further production, while intermediate goods are (A) Signup and view all the answers

What is the primary purpose of the Value Added Method in calculating GDP?

To measure the total value of final goods and services (A) Signup and view all the answers

What is the primary characteristic of entrepreneurship in economic systems?

It involves identifying new opportunities and innovatively combining production factors (D) Signup and view all the answers

What is the primary reason why capital earns interest?

Because it represents a return on invested funds (C) Signup and view all the answers

What is the primary purpose of investment in capital goods?

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

What is the primary role of the foreign sector in the circular flow model?

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

What is the primary characteristic of labor in economic systems?

It is a non-storable factor of production (D) Signup and view all the answers

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

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

What is the primary purpose of the circular flow diagram?

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

What is the largest sector in developed economies in South Africa?

Tertiary sector (A) Signup and view all the answers

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

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

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

To identify the key indicators of economic health and stability (D) Signup and view all the answers

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

Insufficient emphasis on renewable energy (B) Signup and view all the answers

Which of the following is a characteristic of a mixed economy, like that of South Africa?

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

What is the primary advantage of a market economy in terms of production and innovation?

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

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

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

What is the primary disadvantage of a centrally planned economy in terms of individual and corporate incentives?

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

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

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

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

It produces consumer and capital goods (C) Signup and view all the answers

What is the primary function of the government in a mixed economy, like that of South Africa, in terms of social welfare?

To provide essential services like education, healthcare, and welfare (B) Signup and view all the answers

What is the primary characteristic of Gross Domestic Product (GDP) in terms of its calculation?

It is calculated by summing up the value of all final goods and services (A) Signup and view all the answers

What is the primary historical issue affecting the tertiary sector in South Africa?

Apartheid policies restricted participation in the tertiary sector (D) Signup and view all the answers

What is the primary purpose of Gross National Income (GNI) in terms of economic analysis?

To measure the total value of goods and services produced by residents of an economy (B) Signup and view all the answers

What is the primary function of the government in South Africa's economy?

To regulate the economy and provide public services (A) Signup and view all the answers

What is the primary role of Gross Fixed Capital Formation (I) in terms of economic growth and development?

To reflect the total investment in physical assets for future production (C) Signup and view all the answers

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

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

What is the primary characteristic of a mixed economy, like that of South Africa, in terms of government intervention?

The government intervenes in crucial areas, like infrastructure and social welfare, while allowing the market to operate freely (A) Signup and view all the answers

What is the primary advantage of a mixed economy, like that of South Africa, in terms of balancing economic growth and social welfare?

It balances economic growth with government oversight to improve social welfare (B) Signup and view all the answers

What is a key characteristic that distinguishes economic growth from economic development?

A focus on improving the standard of living of a society (A) Signup and view all the answers

Which of the following is a key factor that influences economic growth?

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

What is the primary purpose of measuring the distribution of wealth?

To identify areas of inequality within a population (C) Signup and view all the answers

What is a key challenge facing efforts to redistribute wealth?

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

What is the primary benefit of economic growth?

Improved living standards (A) Signup and view all the answers

Which of the following is a key factor that determines the standard of living?

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

What is the primary purpose of the Gini Coefficient?

To provide a numerical representation of wealth inequality (C) Signup and view all the answers

What is the primary characteristic of wealth in economic terms?

An abundance of valuable resources or material possessions (B) Signup and view all the answers

What is a key factor that influences labor productivity?

Technological advancements (A) Signup and view all the answers

What is the primary purpose of measuring the distribution of wealth using the Lorenz Curve?

To illustrate the actual distribution of wealth across a population (C) Signup and view all the answers

What is the primary difference between economic development and economic growth?

Economic growth focuses on increasing GDP, while economic development focuses on improving living standards (C) Signup and view all the answers

Which of the following strategies is most effective in promoting entrepreneurship in developing countries?

Providing education and training in crucial areas like math and science (C) Signup and view all the answers

What is the primary characteristic of developing countries?

Reliance on primary sector outputs and minimal industrial diversification (C) Signup and view all the answers

What is the primary purpose of the Human Development Index (HDI)?

To measure a country's development through factors like life expectancy, education, and GDP per capita (C) Signup and view all the answers

What is the primary advantage of industrialization in developing countries?

It promotes entrepreneurship and creates jobs (A) Signup and view all the answers

What is the primary characteristic of Indigenous Knowledge Systems (IKS)?

They are rooted in specific communities and traditions (A) Signup and view all the answers

What is the primary reason for recalculating the poverty line income annually?

To adjust for changes in the cost of living (C) Signup and view all the answers

What is the primary goal of South Africa's Reconstruction and Development Programme (RDP)?

To restructure the economy to enable sustainable development (B) Signup and view all the answers

Which of the following is a characteristic of commodity money?

It is backed by a physical commodity (D) Signup and view all the answers

What is the primary difference between absolute poverty and relative poverty?

Absolute poverty refers to a lack of basic human needs, while relative poverty refers to a comparative lack within society (C) Signup and view all the answers

What is the primary role of the South African Reserve Bank (SARB) in relation to commercial banks?

To regulate and supervise their activities (A) Signup and view all the answers

What is the primary role of capital investment in promoting economic development?

To invest in both directly productive assets and indirectly productive infrastructure (D) Signup and view all the answers

What is the primary consequence of bank failures on the economy?

Job losses for employees and erosion of public trust (D) Signup and view all the answers

What is the primary characteristic of labor quality in developing countries?

Under-skilled and poorly motivated workers (A) Signup and view all the answers

What is the primary purpose of micro-lending?

To support small-scale entrepreneurs and individuals (D) Signup and view all the answers

What is the primary function of money as a store of value?

To maintain its value over time (A) Signup and view all the answers

Which index measures the percentage of the population living below the poverty line?

Headcount Index (B) Signup and view all the answers

What is the primary role of banks in credit creation?

To extend loans exceeding their cash reserves (B) Signup and view all the answers

What is the primary tool used by the South African Reserve Bank (SARB) to control inflation?

Repo Rate Adjustments (D) Signup and view all the answers

What is the primary reason for regulating micro-lending in South Africa?

To protect borrowers from predatory lending practices (D) Signup and view all the answers

What is the primary distinction between natural resources and labor as factors of production?

Natural resources are non-storable, while labor is storable. (D) Signup and view all the answers

What is the primary factor that affects the remuneration of natural resources in a market system?

Demand for the resource (A) Signup and view all the answers

What is the primary characteristic of entrepreneurship that distinguishes it from other factors of production?

It is a human effort that combines other factors to produce goods and services. (D) Signup and view all the answers

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

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

What is the primary factor that affects labor productivity?

Level of skills and education (B) Signup and view all the answers

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

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

What is the primary characteristic of capital that distinguishes it from labor?

It is a man-made factor of production. (B) Signup and view all the answers

What is the primary reason why labor is characterized as non-storable?

It requires time for training and education. (B) Signup and view all the answers

What is the primary focus of economic development?

Enhancing the economic, social, and political welfare of a community (D) Signup and view all the answers

What is the primary source of wealth creation?

Savings (B) Signup and view all the answers

What is the Gini Coefficient used to measure?

Wealth distribution inequality (C) Signup and view all the answers

What is a characteristic of wealth in economic terms?

The ability to generate income (C) Signup and view all the answers

What is a method used to redistribute wealth?

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

What is a factor that influences economic growth?

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

What is a limitation of using Per Capita GDP to measure standard of living?

It does not account for income distribution disparities (A) Signup and view all the answers

What is a characteristic of economic growth?

It reflects an increase in the capacity of an economy to produce goods and services (C) Signup and view all the answers

What is a reason for uneven distribution of wealth?

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

What is the primary purpose of enhancing infrastructure in post-apartheid South Africa?

To provide access to previously disadvantaged groups (B) Signup and view all the answers

What is the primary factor that influences the rate of return on invested capital?

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

Which of the following is a characteristic of human capital?

It represents skills and experience (C) Signup and view all the answers

What is the primary purpose of investment in capital goods?

To match growth in labor (B) Signup and view all the answers

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

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

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

Generation of foreign exchange and tax revenue (B) Signup and view all the answers

What is the primary role of entrepreneurs in economic systems?

To mobilize resources and invest in capital (D) Signup and view all the answers

What is the primary difference between final and intermediate goods?

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

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

Transformation of raw materials into finished goods (A) Signup and view all the answers

What is a key indicator of economic health that can be better assessed through the circular flow model?

GDP (C) Signup and view all the answers

In a mixed economy, which sector is responsible for providing social services to improve public welfare?

Public sector (C) Signup and view all the answers

What is the primary challenge faced by South Africa's energy sector?

Insufficient emphasis on renewable energy (A) Signup and view all the answers

Which of the following is a key component of the circular flow?

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

What is the primary purpose of the Value Added Method in calculating GDP?

To calculate the total value of all final goods and services produced (D) Signup and view all the answers

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

Provision of services and driving overall economic growth (B) Signup and view all the answers

What is a characteristic of a market economy that can lead to overexploitation of resources?

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

Which of the following is a characteristic of capital widening?

It increases the quantity of capital goods (C) Signup and view all the answers

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

To facilitate economic competitiveness (A) Signup and view all the answers

What is the primary advantage of a mixed economy, like that of South Africa, in terms of economic growth?

Promotes economic growth while aiming to improve social welfare (B) Signup and view all the answers

What is the primary purpose of recalculating the poverty line income annually?

To adjust for changes in the cost of living (A) Signup and view all the answers

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

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

What is a characteristic of a centrally planned economy that can lead to shortages of goods?

Inefficiencies in resource allocation (B) Signup and view all the answers

What is the primary historical issue affecting the primary sector in South Africa?

Discriminatory policies during apartheid (D) Signup and view all the answers

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

To sum all expenditures made on final goods and services (B) Signup and view all the answers

Which of the following is NOT a characteristic of entrepreneurship?

It involves providing public goods (A) Signup and view all the answers

What is the primary historical issue affecting the secondary sector in South Africa?

Restrictions on training and job opportunities for black individuals (C) Signup and view all the answers

What is a characteristic of a mixed economy that can lead to persistent issues with poverty and inequality?

Potential inefficiencies and lack of competition in state-run sectors (A) Signup and view all the answers

What is the primary advantage of a market economy in terms of innovation?

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

What is the primary historical issue affecting the tertiary sector in South Africa?

Severe limitations on black people owning businesses and property (B) Signup and view all the answers

What is the primary benefit of a mixed economy in terms of social welfare?

Promotes economic growth while aiming to improve social welfare (A) Signup and view all the answers

What is a characteristic of Gross National Income (GNI) that distinguishes it from GDP?

Includes income received by residents from investments abroad (D) Signup and view all the answers

What is the primary purpose of recalculating the poverty line income annually?

To account for inflation (D) Signup and view all the answers

What is the primary function of the South African Reserve Bank (SARB) in relation to the government?

To act as a banker to the government (D) Signup and view all the answers

What is the primary consequence of bank failures on the economy?

Systemic risk and potential financial instability (A) Signup and view all the answers

What is the primary purpose of micro-lending?

To provide small loans to individuals and small businesses (A) Signup and view all the answers

What is a function of money related to its role in facilitating transactions?

Medium of Exchange (B) Signup and view all the answers

What is the primary tool used by the South African Reserve Bank (SARB) to control inflation?

Repo rate adjustments (D) Signup and view all the answers

What is the primary reason for regulating micro-lending in South Africa?

To prevent predatory lending practices (D) Signup and view all the answers

What is the primary role of banks in credit creation?

To extend loans exceeding their cash reserves (C) Signup and view all the answers

Which of the following is NOT a characteristic of fiat money?

Backed by a physical commodity (A) Signup and view all the answers

What is the primary index that measures the intensity of poverty by calculating the average shortfall from the poverty line?

Poverty Gap Index (C) Signup and view all the answers

What is the primary objective of fostering entrepreneurship in developing countries?

To create jobs and diversify goods and services (A) Signup and view all the answers

What is a common characteristic of developing countries?

Rapid population growth and low productivity (C) Signup and view all the answers

What is the primary purpose of the Human Development Index (HDI)?

To evaluate a country's development through life expectancy, education, and GDP per capita (B) Signup and view all the answers

What is a common challenge faced by South Africa in terms of education?

Poor education quality and inadequate infrastructure (C) Signup and view all the answers

What is the primary role of Indigenous Knowledge Systems (IKS) in South Africa?

To address local healthcare needs and agricultural practices (B) Signup and view all the answers

What is a characteristic of Indigenous Knowledge Systems (IKS)?

Local, culture-specific, and experiential (A) Signup and view all the answers

What is the primary goal of South Africa's Reconstruction and Development Programme (RDP)?

To restructure the economy to enable sustainable development (B) Signup and view all the answers

What is a common trait of developing countries?

Low life expectancy and high poverty rates (B) Signup and view all the answers

What is the primary purpose of the Growth, Employment, and Redistribution Policy (GEAR) in South Africa?

To stabilize the economy and promote growth and redistribution (C) Signup and view all the answers

What is a common strategy for fostering economic development in developing countries?

Investing in both directly productive assets and indirectly productive infrastructure (C) Signup and view all the answers

What is the primary driver of economic development in a country?

Availability of natural resources (D) Signup and view all the answers

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

Geographic location (A) Signup and view all the answers

What is the primary characteristic that distinguishes labor from other factors of production?

Non-storability (A) Signup and view all the answers

What is the primary factor that influences the level of remuneration for labor?

Level of skills and education (A) Signup and view all the answers

What is the primary role of entrepreneurs in economic systems?

To innovate and take risks (A) Signup and view all the answers

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

Due to their differing rates of replenishment (C) Signup and view all the answers

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

Uneven economic dynamics (B) Signup and view all the answers

What is the primary factor that affects the level of remuneration for natural resources?

Demand for the resource (B) Signup and view all the answers

Which economic system is characterized by a combination of private and public sector involvement?

Mixed Economy (C) Signup and view all the answers

What is the primary purpose of Gross Fixed Capital Formation (I) in the economy?

To reflect the total investment in physical assets (D) Signup and view all the answers

Which of the following is NOT a characteristic of a mixed economy?

Centralized decision-making and planning (A) Signup and view all the answers

What is the primary contribution of the circular flow model?

Providing insights into how money and goods circulate within an economy (A) Signup and view all the answers

What is the primary advantage of a market economy?

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

Which of the following is a challenge faced by the South African government in providing social services?

Inefficiencies in service delivery (C) Signup and view all the answers

What is the primary role of the government in a mixed economy, like that of South Africa?

To promote economic growth through efficient economic services (A) Signup and view all the answers

What is the primary advantage of a centrally planned economy?

Even distribution of income (A) Signup and view all the answers

Which of the following is NOT a characteristic of a market economy?

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

What is the primary purpose of the Expenditure Method of calculating GDP?

To calculate the total value of all final goods and services (A) Signup and view all the answers

What is the primary reason for the interdependence between different sectors and agents in the economic system?

To facilitate the circular flow of goods and services (D) Signup and view all the answers

Which of the following statements is true about the capital widening and deepening concepts?

They explain how capital affects productivity and economic output (C) Signup and view all the answers

What is the primary reason why entrepreneurs play a key role in economic growth?

They mobilize resources, invest in capital, and employ labor (C) Signup and view all the answers

What is the primary purpose of investing in capital goods?

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

What is the primary factor that affects the rate of return on invested funds?

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

What is the primary purpose of the Value Added Method in calculating GDP?

To determine the total value added at each stage of production (D) Signup and view all the answers

What is the primary characteristic that distinguishes intermediate goods from final goods?

Intermediate goods are used as inputs in the production of other goods (D) Signup and view all the answers

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

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

What is the primary purpose of the circular flow diagram?

To illustrate the economic transactions between different sectors of the economy (C) Signup and view all the answers

What is the primary reason why entrepreneurs earn profit?

To compensate for the risks and efforts involved in starting and running a business (D) Signup and view all the answers

What is the primary purpose of recalculating the poverty line income annually?

To account for inflation (A) Signup and view all the answers

What is the primary function of the South African Reserve Bank (SARB) in relation to the government?

To manage the country's foreign reserves (B) Signup and view all the answers

What is the primary consequence of bank failures on the economy?

Potential systemic risk affecting the broader economy (C) Signup and view all the answers

What is the primary role of banks in credit creation?

To extend loans exceeding their cash reserves, effectively creating new money through credit (B) Signup and view all the answers

What is the primary purpose of micro-lending?

To provide small loans to individuals unable to access traditional bank financing (B) Signup and view all the answers

What is the primary tool used by the South African Reserve Bank (SARB) to control inflation?

Adjusting the repo rate (D) Signup and view all the answers

What is the primary reason for regulating micro-lending in South Africa?

To prevent predatory lending practices and ensure fair interest rates (D) Signup and view all the answers

What is the characteristic of fiat money that distinguishes it from commodity money?

It has no intrinsic value (D) Signup and view all the answers

What is the primary function of money in facilitating transactions?

As a medium of exchange (B) Signup and view all the answers

What is the primary index used to measure the intensity of poverty?

Poverty gap index (D) Signup and view all the answers

What is the primary difference between economic growth and economic development?

Economic growth focuses on the output of goods and services, while economic development focuses on the standard of living. (D) Signup and view all the answers

Which of the following is a characteristic of wealth?

The ability to generate income, and potential for value appreciation or depreciation. (D) Signup and view all the answers

What is the primary purpose of the Gini Coefficient?

To measure the distribution of wealth across a population. (A) Signup and view all the answers

What is a factor that contributes to uneven distribution of wealth?

Economic systems that favor certain groups. (A) Signup and view all the answers

What is the primary function of social grants in wealth redistribution?

To reduce wealth inequality by providing a safety net to disadvantaged groups. (A) Signup and view all the answers

What is a factor that influences economic growth?

Technological advancements that enhance production capabilities. (A) Signup and view all the answers

What is the primary limitation of using Per Capita GDP to measure standard of living?

It does not account for income distribution disparities within countries. (C) Signup and view all the answers

What is a characteristic of a nation's economic development?

A broad-based improvement in the standard of living of a society. (A) Signup and view all the answers

What is the primary purpose of Lorenz Curve?

To illustrate the actual distribution of wealth across a population. (D) Signup and view all the answers

What is a factor that determines standard of living?

Economic growth, population size and structure, and employment levels. (C) Signup and view all the answers

What is the primary objective of the Reconstruction and Development Programme (RDP) in South Africa?

To restructure the economy to enable sustainable development (C) Signup and view all the answers

What is the primary characteristic of Indigenous Knowledge Systems (IKS) in South Africa?

Experiential and dynamic (D) Signup and view all the answers

What is the primary difference between absolute poverty and relative poverty?

Absolute poverty involves the lack of basic human needs, while relative poverty is a comparative lack within society (A) Signup and view all the answers

What is the primary role of capital investment in economic development?

To stimulate growth through investing in directly productive assets and indirectly productive infrastructure (C) Signup and view all the answers

What is the primary indicator of economic development in a country?

Human Development Index (HDI) (B) Signup and view all the answers

What is the primary challenge faced by developing countries in terms of infrastructure?

Inadequate utility services, including transportation, communication, and utilities (D) Signup and view all the answers

What is the primary strategy for promoting entrepreneurship in developing countries?

Encouraging entrepreneurship through education and training (C) Signup and view all the answers

What is the primary consequence of high population growth in developing countries?

Exacerbating economic and social challenges (C) Signup and view all the answers

What is the primary goal of the Accelerated Shared Growth Initiative for South Africa (ASGISA)?

To rectify shortcomings of previous policies and boost economic growth (A) Signup and view all the answers

What is the primary characteristic of the Human Development Index (HDI)?

Measures a combination of factors, including life expectancy, education, and GDP per capita (D) Signup and view all the answers

What is the primary objective of South Africa's economic initiatives such as ASGISA and the New Economic Growth Path?

To reduce unemployment and enhance economic growth (B) Signup and view all the answers

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

Tertiary sector (D) Signup and view all the answers

What is a significant challenge facing South Africa's infrastructure?

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

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

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

What has been a significant historical issue affecting the primary sector in South Africa?

Discriminatory policies depriving black South Africans of land ownership (D) Signup and view all the answers

What is crucial for the facilitation of domestic and international trade in South Africa?

Extensive transport networks (B) Signup and view all the answers

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

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

What is a characteristic of South Africa's tertiary sector?

Encompasses service-oriented industries (B) Signup and view all the answers

What is the primary goal of post-apartheid reforms like the Land Redistribution Programme?

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

What is essential for South Africa's economic competitiveness?

Efficient communication systems (C) Signup and view all the answers

Which economic system combines the advantages of both market economy and centrally planned economy?

Mixed economy (D) Signup and view all the answers

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

To reflect total investment in physical assets (A) Signup and view all the answers

What is the primary advantage of the Expenditure Method of calculating GDP?

It measures the total value of goods and services produced (B) Signup and view all the answers

What is the primary reason for distinguishing between final and intermediate goods in measuring economic output?

To avoid double-counting in the calculation of GDP (C) Signup and view all the answers

What is the primary characteristic of a Centrally Planned Economy?

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

What is the primary role of entrepreneurs in economic systems?

To initiate and manage businesses, identifying new opportunities and innovatively combining production factors (B) Signup and view all the answers

What is the primary disadvantage of a Market Economy?

Potential for significant inequalities in income and wealth distribution (A) Signup and view all the answers

Which of the following is a characteristic of capital?

It includes manufactured resources used in further production, such as machinery and buildings (C) Signup and view all the answers

What is the primary role of the government in a Mixed Economy?

To promote economic growth through efficient economic services (A), To provide social services to improve public welfare (C) Signup and view all the answers

What is the primary objective of the circular flow model?

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

What is the primary purpose of the circular flow diagram?

To illustrate the movement of goods and services within an economy (D) Signup and view all the answers

What is the primary reward for entrepreneurship?

Profit, which compensates for the risks and efforts involved in starting and running a business (C) Signup and view all the answers

What is the primary advantage of the Income Method of calculating GDP?

It measures the total income generated by production (B) Signup and view all the answers

What is the primary factor that influences wage levels?

The demand for specific labor types and broader economic conditions (D) Signup and view all the answers

What is the primary challenge faced by the South African government in providing social services?

Inefficiencies in service delivery (B) Signup and view all the answers

What is the primary purpose of investment in capital goods?

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

What is the primary role of entrepreneurs in economic systems?

To respond to the forces of supply and demand (C) Signup and view all the answers

What is the primary consequence of a lack of investment in capital goods?

A decrease in economic growth (B) Signup and view all the answers

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

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

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

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

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

It involves the extraction and harvesting of natural resources (A) Signup and view all the answers

What is the primary purpose of recalculating the poverty line income annually?

To adjust for changes in the cost of living (C) Signup and view all the answers

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

To manufacture and construct goods from raw materials (C) Signup and view all the answers

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

The tertiary sector (D) Signup and view all the answers

What is crucial for South Africa's economic competitiveness?

Stable exchange rates and producing high-quality goods (D) Signup and view all the answers

What has been a significant historical issue affecting the primary sector in South Africa?

Discriminatory policies depriving black South Africans of land ownership and equal opportunities (C) Signup and view all the answers

What has been a significant historical issue affecting the tertiary sector in South Africa?

Severe limitations on the participation of black people in owning businesses and property (D) Signup and view all the answers

What is essential for the facilitation of domestic and international trade in South Africa?

Extensive transport networks (C) Signup and view all the answers

What is a significant challenge facing South Africa's energy sector?

Underinvestment in new power sources and insufficient emphasis on renewable energy (C) Signup and view all the answers

What is the primary role of the government in supporting local businesses and facilitating international trade?

To support local businesses and facilitate international trade through initiatives like ASGISA (B) Signup and view all the answers

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

To facilitate sustainable management and conservation of resources (D) Signup and view all the answers

Which of the following factors does NOT influence the level of remuneration for natural resources?

Labor supply (D) Signup and view all the answers

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

To increase labor productivity (D) Signup and view all the answers

Which of the following characteristics of labor is most closely related to the level of education?

Skill level (B) Signup and view all the answers

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

It involves the organization and management of production (B) Signup and view all the answers

Which of the following is a characteristic that is common to all four primary factors of production?

They are all essential for production (A) Signup and view all the answers

What is the primary reason why natural resources and labor are distinct factors of production?

They have different characteristics (C) Signup and view all the answers

Which of the following is a consequence of the uneven distribution of natural resources across regions?

It affects economic dynamics (D) Signup and view all the answers

What is the primary function of banks in the process of credit creation?

To provide loans exceeding their cash reserves, effectively creating new money (C) Signup and view all the answers

What is the main objective of the Millennium Development Goals?

To eradicate extreme poverty and hunger by 2015 (B) Signup and view all the answers

What is the primary objective of the Reconstruction and Development Programme (RDP) in South Africa?

To redistribute wealth and address poverty (B) Signup and view all the answers

What is the primary consequence of bank failures on the economy?

Losses for depositors and investors, job losses, and potential systemic risk (B) Signup and view all the answers

Which of the following is a characteristic of Indigenous Knowledge Systems (IKS)?

Local and culture-specific (B) Signup and view all the answers

What is the primary characteristic of fiat money?

It is not backed by a physical commodity (D) Signup and view all the answers

What is the primary difference between absolute poverty and relative poverty?

Absolute poverty refers to a lack of basic human needs, while relative poverty refers to a comparative lack within society (B) Signup and view all the answers

What is the primary role of the South African Reserve Bank (SARB) in relation to the government?

To implement monetary policy and manage foreign reserves (B) Signup and view all the answers

What is the primary role of capital investment in economic development?

To invest in directly productive assets and indirectly productive infrastructure (A) Signup and view all the answers

What is the primary purpose of micro-lending?

To provide small loans to individuals unable to access traditional bank financing (A) Signup and view all the answers

What is the primary characteristic of developing countries?

Low standard of living and rapid population growth (C) Signup and view all the answers

What is the primary tool used by the South African Reserve Bank (SARB) to control inflation?

Repo rate adjustments (A) Signup and view all the answers

What is the primary purpose of the Human Development Index (HDI)?

To measure a country's development through factors like life expectancy, education, and GDP per capita (C) Signup and view all the answers

What is the primary reason for regulating micro-lending in South Africa?

To prevent predatory lending practices and ensure fair interest rates (C) Signup and view all the answers

Which strategy is NOT mentioned as a method for economic development?

Increasing population growth (A) Signup and view all the answers

What is the primary focus of the Growth, Employment, and Redistribution Policy (GEAR)?

To stabilize the economy and promote growth (C) Signup and view all the answers

What is the primary function of the headcount index?

To measure the percentage of the population living below the poverty line (B) Signup and view all the answers

What is the primary reason for recalculating the poverty line income annually?

To adjust for changes in the cost of living due to inflation (C) Signup and view all the answers

What is the primary role of labor quality improvement in economic development?

To improve education, particularly in crucial areas like math and science (C) Signup and view all the answers

Which of the following is NOT a characteristic of developing countries?

High life expectancy (A) Signup and view all the answers

What is the primary characteristic that distinguishes economic growth from economic development?

Economic growth is a narrow concept, while economic development is a broader concept. (A) Signup and view all the answers

What is the primary reason why savings are considered the primary source of wealth?

Savings are derived from income not spent on consumption. (C) Signup and view all the answers

What is the primary limitation of using the Gini Coefficient to measure wealth inequality?

It does not take into account the absolute level of wealth. (A) Signup and view all the answers

What is the primary role of government policies in determining the standard of living?

To influence economic stability and public services. (D) Signup and view all the answers

What is the primary reason why capital investment is essential for economic growth?

It increases the productive capacity of an economy. (B) Signup and view all the answers

What is the primary characteristic of the Lorenz Curve?

It illustrates the actual distribution of wealth across a population, showing deviations from perfect equality. (A) Signup and view all the answers

What is the primary factor that determines the standard of living in a country?

Economic growth. (A) Signup and view all the answers

What is the primary reason why skills and talent contribute to economic disparity?

They are not equally distributed among the population. (D) Signup and view all the answers

What is the primary role of technological advancements in economic growth?

They enhance the production capabilities of an economy. (B) Signup and view all the answers

What is the primary reason why labor productivity is essential for economic growth?

It enhances the efficiency of the workforce. (A) Signup and view all the answers

Nov P1 Hard

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Questions and Answers

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

What is the main advantage of a mixed economy, like that of South Africa?

What is Gross Fixed Capital Formation (I) a reflection of?

What is a characteristic of a centrally planned economy?

What is the main disadvantage of a market economy?

What is Gross National Income (GNI) equal to?

What is the primary role of the government in a mixed economy, like that of South Africa?

What is the main advantage of a centrally planned economy?

What does the circular flow model provide insights into?

What is the main challenge faced by the South African government in providing social services?

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

What characteristic of natural resources affects their distribution across regions?

What is the form of remuneration typically received for natural resources?

What is the primary factor that influences labor supply?

What is the characteristic of labor that makes it inherently non-storable?

What is the primary factor that affects labor productivity?

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

What is the primary characteristic that distinguishes the four primary factors of production?

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

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

What has been a significant historical issue affecting the primary sector in South Africa?

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

What has been a significant historical issue affecting the secondary sector in South Africa?

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

What has been a significant historical issue affecting the tertiary sector in South Africa?

What is essential for South Africa's economic competitiveness?

What is a significant challenge facing South Africa's energy sector?

What is crucial for the facilitation of domestic and international trade in South Africa?

What is the primary factor that influences wage levels?

Which of the following is NOT a characteristic of capital?

What is the primary reward for entrepreneurship?

What is the purpose of the circular flow diagram?

What is the difference between final and intermediate goods?

What is the primary purpose of recalculating the poverty line income annually?

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

Which index measures the intensity of poverty by calculating the average shortfall from the poverty line?

What is the Value Added Method used to calculate?

What is a characteristic of fiat money?

Which of the following is an economic aggregate?

What is the purpose of investment in capital goods?

What is the primary function of the South African Reserve Bank (SARB) in relation to the government?

What is the primary consequence of bank failures on the economy?

What is the role of entrepreneurs in economic systems?

What is the primary purpose of micro-lending?

What is a function of money related to its role in facilitating transactions?

What is the primary tool used by the South African Reserve Bank (SARB) to control inflation?

What is the primary reason for regulating micro-lending in South Africa?

What is the primary role of banks in credit creation?

Which of the following factors is NOT a reason for uneven distribution of wealth?

What is the main limitation of using Per Capita GDP to measure standard of living?

Which of the following is a characteristic of economic growth?

What is the primary purpose of taxation policies aimed at equity?

Which of the following is NOT a factor influencing economic growth?

What is the primary difference between economic growth and economic development?

What is the primary purpose of social grants as a method of wealth redistribution?

Which of the following is a characteristic of a Lorenz Curve?

What is the primary purpose of anti-discrimination legislation as a method of wealth redistribution?

Which of the following is a limitation of using GDP per capita to measure economic performance?

What is the primary goal of economic development?

What is the primary characteristic of a developing country's economy?

What is the primary strategy for promoting economic development in developing countries?

What is the primary role of the Human Development Index (HDI)?

What is the primary goal of South Africa's Reconstruction and Development Programme (RDP)?

What is the primary characteristic of Indigenous Knowledge Systems (IKS)?

What is the primary difference between absolute poverty and relative poverty?

What is the primary goal of modernization of agriculture in developing countries?

What is the primary role of capital investment in fostering economic development?

What is the primary focus of the Growth, Employment, and Redistribution Policy (GEAR) in South Africa?

What is the primary reason why capital is essential for economic growth?

What is the primary role of entrepreneurs in economic systems?

What is the primary distinction between final and intermediate goods?

What is the primary purpose of the circular flow diagram?

What is the primary factor that influences the rate of return on invested funds?

What is the primary reward for entrepreneurship?

What is the primary characteristic of capital?

What is the primary purpose of investment in capital goods?