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Questions and Answers

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?

    <p>State ownership of resources.</p> Signup and view all the answers

    What is the main disadvantage of a market economy?

    <p>Potential for significant inequalities in income and wealth distribution.</p> Signup and view all the answers

    What is Gross National Income (GNI) equal to?

    <p>GDP plus net income from abroad.</p> Signup and view all the answers

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

    <p>To balance freedom of market operations with government oversight.</p> Signup and view all the answers

    What is the main advantage of a centrally planned economy?

    <p>Even distribution of income.</p> Signup and view all the answers

    What does the circular flow model provide insights into?

    <p>How money and goods circulate within an economy.</p> Signup and view all the answers

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

    <p>Inefficiencies in service delivery.</p> Signup and view all the answers

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

    <p>They provide raw materials for goods and services</p> Signup and view all the answers

    What characteristic of natural resources affects their distribution across regions?

    <p>Their uneven distribution</p> Signup and view all the answers

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

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

    What is the primary factor that influences labor supply?

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

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

    <p>It is non-storable</p> Signup and view all the answers

    What is the primary factor that affects labor productivity?

    <p>Level of skills</p> Signup and view all the answers

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

    <p>It drives economic development</p> Signup and view all the answers

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

    <p>Their distinct characteristics</p> Signup and view all the answers

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

    <p>To enhance growth, competitiveness, and employment</p> Signup and view all the answers

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

    <p>Involves the extraction and harvesting of natural resources</p> Signup and view all the answers

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

    <p>Discriminatory policies depriving black South Africans of land ownership and equal opportunities</p> Signup and view all the answers

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

    <p>To transform raw materials from the primary sector into finished goods</p> Signup and view all the answers

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

    <p>Discriminatory policies restricting training and job opportunities for black individuals</p> Signup and view all the answers

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

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

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

    <p>Discriminatory policies restricting black people from owning businesses and property</p> Signup and view all the answers

    What is essential for South Africa's economic competitiveness?

    <p>High-quality, competitively priced goods</p> Signup and view all the answers

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

    <p>Inadequate investment in new power sources</p> Signup and view all the answers

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

    <p>Efficient transport networks</p> Signup and view all the answers

    What is the primary factor that influences wage levels?

    <p>Demand for specific labor types and broader economic conditions</p> Signup and view all the answers

    Which of the following is NOT a characteristic of capital?

    <p>Financial markets</p> Signup and view all the answers

    What is the primary reward for entrepreneurship?

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

    What is the purpose of the circular flow diagram?

    <p>To highlight the interdependence between different sectors and agents in the economic system</p> Signup and view all the answers

    What is the difference between final and intermediate goods?

    <p>Final goods are consumed by the end user, while intermediate goods are used as inputs in the production of other goods</p> Signup and view all the answers

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

    <p>To account for inflation</p> Signup and view all the answers

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

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

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

    <p>Poverty gap index</p> Signup and view all the answers

    What is the Value Added Method used to calculate?

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

    What is a characteristic of fiat money?

    <p>It is universally accepted</p> Signup and view all the answers

    Which of the following is an economic aggregate?

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

    What is the purpose of investment in capital goods?

    <p>To match growth in labor and manage depreciation</p> Signup and view all the answers

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

    <p>Acting as a banker to the government</p> Signup and view all the answers

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

    <p>Systemic risk affecting the broader economy</p> Signup and view all the answers

    What is the role of entrepreneurs in economic systems?

    <p>To generate wealth, create jobs, and foster competition</p> Signup and view all the answers

    What is the primary purpose of micro-lending?

    <p>To provide small loans to individuals unable to access traditional bank financing</p> Signup and view all the answers

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

    <p>Medium of exchange</p> Signup and view all the answers

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

    <p>Repo rate adjustments</p> Signup and view all the answers

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

    <p>To prevent predatory lending practices</p> Signup and view all the answers

    What is the primary role of banks in credit creation?

    <p>Extending loans exceeding their cash reserves</p> Signup and view all the answers

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

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

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

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

    Which of the following is a characteristic of economic growth?

    <p>Increase in the capacity of an economy to produce goods and services</p> Signup and view all the answers

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

    <p>To redistribute wealth</p> Signup and view all the answers

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

    <p>Weather Patterns</p> Signup and view all the answers

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

    <p>Economic growth focuses on output, while economic development focuses on welfare</p> Signup and view all the answers

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

    <p>To provide a minimum level of income for the disadvantaged</p> Signup and view all the answers

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

    <p>It illustrates the actual distribution of wealth across a population</p> Signup and view all the answers

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

    <p>To reduce structural inequality</p> Signup and view all the answers

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

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

    What is the primary goal of economic development?

    <p>Improving the overall standard of living in a country</p> Signup and view all the answers

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

    <p>Low standard of living and high poverty rates</p> Signup and view all the answers

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

    <p>Promoting entrepreneurship and improving infrastructure</p> Signup and view all the answers

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

    <p>Measuring a country's development through factors like life expectancy, education, and GDP per capita</p> Signup and view all the answers

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

    <p>Restructuring the economy to enable sustainable development</p> Signup and view all the answers

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

    <p>Experiential knowledge gained through direct experience</p> Signup and view all the answers

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

    <p>Absolute poverty is defined by the lack of basic human needs, while relative poverty is defined by a comparative lack within society</p> Signup and view all the answers

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

    <p>Enhancing agricultural productivity through advanced technology</p> Signup and view all the answers

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

    <p>Investing in both directly productive assets and indirectly productive infrastructure</p> Signup and view all the answers

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

    <p>Stabilizing the economy and promoting growth and redistribution</p> Signup and view all the answers

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

    <p>To match growth in labor and manage depreciation</p> Signup and view all the answers

    What is the primary role of entrepreneurs in economic systems?

    <p>To initiate and manage businesses, identifying new opportunities and innovatively combining production factors</p> Signup and view all the answers

    What is the primary distinction between final and intermediate goods?

    <p>Final goods are used in further production, while intermediate goods are not</p> Signup and view all the answers

    What is the primary purpose of the circular flow diagram?

    <p>To highlight the interdependence between different sectors and agents in the economic system</p> Signup and view all the answers

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

    <p>Risk, liquidity, investment duration, capital demand, funding supply, and monetary policy</p> Signup and view all the answers

    What is the primary reward for entrepreneurship?

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

    What is the primary characteristic of capital?

    <p>It is essential for economic growth</p> Signup and view all the answers

    What is the primary purpose of investment in capital goods?

    <p>To match growth in labor and manage depreciation</p> Signup and view all the answers

    What is the primary characteristic of labor?

    <p>It is non-storable</p> Signup and view all the answers

    What is the primary function of the circular flow model?

    <p>To highlight the interdependence between different sectors and agents in the economic system</p> Signup and view all the answers

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

    <p>It is a source of innovation and risk-taking</p> Signup and view all the answers

    What is the primary difference between skilled and unskilled labor?

    <p>The level of education required to perform the job</p> Signup and view all the answers

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

    <p>Their uneven distribution</p> Signup and view all the answers

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

    <p>It is a man-made resource used to produce goods and services</p> Signup and view all the answers

    What is the primary factor that affects labor productivity?

    <p>The level of education and skills of the workforce</p> Signup and view all the answers

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

    <p>Their ability to be replenished</p> Signup and view all the answers

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

    <p>They provide raw materials for goods and services</p> Signup and view all the answers

    What is the primary form of remuneration for labor?

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

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

    <p>It is a more intuitive approach to understanding economic activity</p> Signup and view all the answers

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

    <p>Coexistence of private and public sectors</p> 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?

    <p>To promote economic growth through efficient economic services</p> Signup and view all the answers

    What is the primary advantage of a market economy?

    <p>Wide product variety and consumer choice</p> Signup and view all the answers

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

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

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

    <p>It provides insights into the effects of various sectors on economic growth</p> Signup and view all the answers

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

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

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

    <p>Persistent issues with poverty and inequality</p> 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?

    <p>To provide social services to improve public welfare</p> Signup and view all the answers

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

    <p>Promotes economic growth while aiming to improve social welfare</p> 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?

    <p>Enhancing economic self-sufficiency and growth</p> Signup and view all the answers

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

    <p>It provides essential raw materials and energy</p> Signup and view all the answers

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

    <p>Insufficient emphasis on renewable energy</p> Signup and view all the answers

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

    <p>Transforming raw materials into finished goods</p> Signup and view all the answers

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

    <p>The tertiary sector</p> Signup and view all the answers

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

    <p>Facilitating domestic and international trade</p> Signup and view all the answers

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

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

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

    <p>They enhance economic competitiveness</p> Signup and view all the answers

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

    <p>Discriminatory policies depriving black South Africans of land ownership</p> Signup and view all the answers

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

    <p>Addressing historical issues of discrimination and exclusion</p> Signup and view all the answers

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

    <p>To enhance the quality and value of natural resources and stimulate growth</p> Signup and view all the answers

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

    <p>Economic growth is solely focused on increasing GDP, while economic development is focused on improving the standard of living</p> Signup and view all the answers

    What is the primary goal of economic development?

    <p>To improve the standard of living of a society</p> Signup and view all the answers

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

    <p>To restructure the economy to enable sustainable development</p> Signup and view all the answers

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

    <p>It is rooted in specific communities and traditions</p> Signup and view all the answers

    What is a characteristic of wealth in economic terms?

    <p>The ability to generate income and appreciate in value</p> Signup and view all the answers

    What is the primary purpose of measuring wealth distribution?

    <p>To illustrate the actual distribution of wealth across a population</p> Signup and view all the answers

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

    <p>Rapid population increases</p> Signup and view all the answers

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

    <p>To measure a country's development through factors like life expectancy, education, and GDP per capita</p> Signup and view all the answers

    What is a factor that influences economic growth?

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

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

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

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

    <p>It is characterized by a reliance on primary sector outputs with minimal industrial diversification</p> Signup and view all the answers

    What is the primary reason for uneven distribution of wealth?

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

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

    <p>It creates jobs and diversifies goods and services</p> Signup and view all the answers

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

    <p>They have insufficient capital and outdated technology</p> Signup and view all the answers

    What is the primary purpose of social grants?

    <p>To redistribute wealth</p> Signup and view all the answers

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

    <p>Absolute poverty involves the lack of basic human needs, while relative poverty is a comparative lack within society</p> Signup and view all the answers

    What is a characteristic of economic growth?

    <p>It is measured in both nominal and real terms</p> Signup and view all the answers

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

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

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

    <p>To reduce income inequality</p> Signup and view all the answers

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

    <p>The cyclical nature of poverty, where its effects can perpetuate its causes</p> Signup and view all the answers

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

    <p>Fiat money is not backed by a physical commodity</p> Signup and view all the answers

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

    <p>To regulate the banking sector and maintain financial stability</p> Signup and view all the answers

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

    <p>Loss of public trust in the banking system and potential systemic risk</p> Signup and view all the answers

    What is the primary purpose of micro-lending?

    <p>To provide small loans to individuals unable to access traditional bank financing</p> Signup and view all the answers

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

    <p>Monetary policy implementation through repo rate adjustments</p> Signup and view all the answers

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

    <p>Uniformity and general acceptance</p> Signup and view all the answers

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

    <p>To prevent predatory lending practices and ensure fair interest rates</p> Signup and view all the answers

    What is the primary role of banks in credit creation?

    <p>To extend loans exceeding their cash reserves, effectively creating new money</p> Signup and view all the answers

    What is the primary effect of poverty on the economy?

    <p>Reduced economic demand and contributing to a perpetual cycle of poverty</p> Signup and view all the answers

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

    <p>To identify the resources that can be replenished naturally and those that cannot</p> Signup and view all the answers

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

    <p>It is inherently non-storable</p> Signup and view all the answers

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

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

    What is the primary form of remuneration received for capital?

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

    Which of the following is a characteristic of entrepreneurship?

    <p>It involves taking risks and innovating</p> Signup and view all the answers

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

    <p>It influences the overall efficiency of production</p> Signup and view all the answers

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

    <p>They are always renewable</p> Signup and view all the answers

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

    <p>It affects the availability of resources for production</p> Signup and view all the answers

    What is the primary purpose of capital in economic growth?

    <p>To match growth in labor and manage depreciation</p> Signup and view all the answers

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

    <p>To collect taxes and redistribute income</p> Signup and view all the answers

    What is the primary difference between final and intermediate goods?

    <p>Final goods are not used in further production, while intermediate goods are</p> Signup and view all the answers

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

    <p>To measure the total value of final goods and services</p> Signup and view all the answers

    What is the primary characteristic of entrepreneurship in economic systems?

    <p>It involves identifying new opportunities and innovatively combining production factors</p> Signup and view all the answers

    What is the primary reason why capital earns interest?

    <p>Because it represents a return on invested funds</p> Signup and view all the answers

    What is the primary purpose of investment in capital goods?

    <p>To match growth in labor and manage depreciation</p> Signup and view all the answers

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

    <p>To involve trade and financial transactions with other countries</p> Signup and view all the answers

    What is the primary characteristic of labor in economic systems?

    <p>It is a non-storable factor of production</p> Signup and view all the answers

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

    <p>To enhance growth, competitiveness, and employment</p> Signup and view all the answers

    What is the primary purpose of the circular flow diagram?

    <p>To illustrate the interdependence between different sectors and agents in the economy</p> Signup and view all the answers

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

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

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

    <p>To support the marketing and distribution of goods</p> Signup and view all the answers

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

    <p>To identify the key indicators of economic health and stability</p> Signup and view all the answers

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

    <p>Insufficient emphasis on renewable energy</p> Signup and view all the answers

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

    <p>Coexistence of private and public sectors</p> Signup and view all the answers

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

    <p>Efficient production and innovation driven by profit motives</p> Signup and view all the answers

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

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

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

    <p>Lack of individual and corporate incentive to improve efficiency or innovate</p> Signup and view all the answers

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

    <p>It provides essential raw materials and energy</p> Signup and view all the answers

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

    <p>It produces consumer and capital goods</p> 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?

    <p>To provide essential services like education, healthcare, and welfare</p> Signup and view all the answers

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

    <p>It is calculated by summing up the value of all final goods and services</p> Signup and view all the answers

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

    <p>Apartheid policies restricted participation in the tertiary sector</p> Signup and view all the answers

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

    <p>To measure the total value of goods and services produced by residents of an economy</p> Signup and view all the answers

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

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

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

    <p>To reflect the total investment in physical assets for future production</p> Signup and view all the answers

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

    <p>To address historical inequalities in land ownership</p> 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?

    <p>The government intervenes in crucial areas, like infrastructure and social welfare, while allowing the market to operate freely</p> 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?

    <p>It balances economic growth with government oversight to improve social welfare</p> Signup and view all the answers

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

    <p>A focus on improving the standard of living of a society</p> Signup and view all the answers

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

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

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

    <p>To identify areas of inequality within a population</p> Signup and view all the answers

    What is a key challenge facing efforts to redistribute wealth?

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

    What is the primary benefit of economic growth?

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

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

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

    What is the primary purpose of the Gini Coefficient?

    <p>To provide a numerical representation of wealth inequality</p> Signup and view all the answers

    What is the primary characteristic of wealth in economic terms?

    <p>An abundance of valuable resources or material possessions</p> Signup and view all the answers

    What is a key factor that influences labor productivity?

    <p>Technological advancements</p> Signup and view all the answers

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

    <p>To illustrate the actual distribution of wealth across a population</p> Signup and view all the answers

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

    <p>Economic growth focuses on increasing GDP, while economic development focuses on improving living standards</p> Signup and view all the answers

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

    <p>Providing education and training in crucial areas like math and science</p> Signup and view all the answers

    What is the primary characteristic of developing countries?

    <p>Reliance on primary sector outputs and minimal industrial diversification</p> Signup and view all the answers

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

    <p>To measure a country's development through factors like life expectancy, education, and GDP per capita</p> Signup and view all the answers

    What is the primary advantage of industrialization in developing countries?

    <p>It promotes entrepreneurship and creates jobs</p> Signup and view all the answers

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

    <p>They are rooted in specific communities and traditions</p> Signup and view all the answers

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

    <p>To adjust for changes in the cost of living</p> Signup and view all the answers

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

    <p>To restructure the economy to enable sustainable development</p> Signup and view all the answers

    Which of the following is a characteristic of commodity money?

    <p>It is backed by a physical commodity</p> Signup and view all the answers

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

    <p>Absolute poverty refers to a lack of basic human needs, while relative poverty refers to a comparative lack within society</p> Signup and view all the answers

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

    <p>To regulate and supervise their activities</p> Signup and view all the answers

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

    <p>To invest in both directly productive assets and indirectly productive infrastructure</p> Signup and view all the answers

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

    <p>Job losses for employees and erosion of public trust</p> Signup and view all the answers

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

    <p>Under-skilled and poorly motivated workers</p> Signup and view all the answers

    What is the primary purpose of micro-lending?

    <p>To support small-scale entrepreneurs and individuals</p> Signup and view all the answers

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

    <p>To maintain its value over time</p> Signup and view all the answers

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

    <p>Headcount Index</p> Signup and view all the answers

    What is the primary role of banks in credit creation?

    <p>To extend loans exceeding their cash reserves</p> Signup and view all the answers

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

    <p>Repo Rate Adjustments</p> Signup and view all the answers

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

    <p>To protect borrowers from predatory lending practices</p> Signup and view all the answers

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

    <p>Natural resources are non-storable, while labor is storable.</p> Signup and view all the answers

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

    <p>Demand for the resource</p> Signup and view all the answers

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

    <p>It is a human effort that combines other factors to produce goods and services.</p> Signup and view all the answers

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

    <p>It affects economic dynamics and necessitates sustainable management.</p> Signup and view all the answers

    What is the primary factor that affects labor productivity?

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

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

    <p>They provide raw materials for goods and services.</p> Signup and view all the answers

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

    <p>It is a man-made factor of production.</p> Signup and view all the answers

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

    <p>It requires time for training and education.</p> Signup and view all the answers

    What is the primary focus of economic development?

    <p>Enhancing the economic, social, and political welfare of a community</p> Signup and view all the answers

    What is the primary source of wealth creation?

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

    What is the Gini Coefficient used to measure?

    <p>Wealth distribution inequality</p> Signup and view all the answers

    What is a characteristic of wealth in economic terms?

    <p>The ability to generate income</p> Signup and view all the answers

    What is a method used to redistribute wealth?

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

    What is a factor that influences economic growth?

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

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

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

    What is a characteristic of economic growth?

    <p>It reflects an increase in the capacity of an economy to produce goods and services</p> Signup and view all the answers

    What is a reason for uneven distribution of wealth?

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

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

    <p>To provide access to previously disadvantaged groups</p> Signup and view all the answers

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

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

    Which of the following is a characteristic of human capital?

    <p>It represents skills and experience</p> Signup and view all the answers

    What is the primary purpose of investment in capital goods?

    <p>To match growth in labor</p> Signup and view all the answers

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

    <p>To enhance growth, competitiveness, and employment</p> Signup and view all the answers

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

    <p>Generation of foreign exchange and tax revenue</p> Signup and view all the answers

    What is the primary role of entrepreneurs in economic systems?

    <p>To mobilize resources and invest in capital</p> Signup and view all the answers

    What is the primary difference between final and intermediate goods?

    <p>Final goods are consumed by the end user, while intermediate goods are used in further production</p> Signup and view all the answers

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

    <p>Transformation of raw materials into finished goods</p> Signup and view all the answers

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

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

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

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

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

    <p>Insufficient emphasis on renewable energy</p> Signup and view all the answers

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

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

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

    <p>To calculate the total value of all final goods and services produced</p> Signup and view all the answers

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

    <p>Provision of services and driving overall economic growth</p> Signup and view all the answers

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

    <p>Efficient production and innovation driven by profit motives</p> Signup and view all the answers

    Which of the following is a characteristic of capital widening?

    <p>It increases the quantity of capital goods</p> Signup and view all the answers

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

    <p>To facilitate economic competitiveness</p> 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?

    <p>Promotes economic growth while aiming to improve social welfare</p> Signup and view all the answers

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

    <p>To adjust for changes in the cost of living</p> Signup and view all the answers

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

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

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

    <p>Inefficiencies in resource allocation</p> Signup and view all the answers

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

    <p>Discriminatory policies during apartheid</p> Signup and view all the answers

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

    <p>To sum all expenditures made on final goods and services</p> Signup and view all the answers

    Which of the following is NOT a characteristic of entrepreneurship?

    <p>It involves providing public goods</p> Signup and view all the answers

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

    <p>Restrictions on training and job opportunities for black individuals</p> Signup and view all the answers

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

    <p>Potential inefficiencies and lack of competition in state-run sectors</p> Signup and view all the answers

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

    <p>Efficient production and innovation driven by profit motives</p> Signup and view all the answers

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

    <p>Severe limitations on black people owning businesses and property</p> Signup and view all the answers

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

    <p>Promotes economic growth while aiming to improve social welfare</p> Signup and view all the answers

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

    <p>Includes income received by residents from investments abroad</p> Signup and view all the answers

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

    <p>To account for inflation</p> Signup and view all the answers

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

    <p>To act as a banker to the government</p> Signup and view all the answers

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

    <p>Systemic risk and potential financial instability</p> Signup and view all the answers

    What is the primary purpose of micro-lending?

    <p>To provide small loans to individuals and small businesses</p> Signup and view all the answers

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

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

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

    <p>Repo rate adjustments</p> Signup and view all the answers

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

    <p>To prevent predatory lending practices</p> Signup and view all the answers

    What is the primary role of banks in credit creation?

    <p>To extend loans exceeding their cash reserves</p> Signup and view all the answers

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

    <p>Backed by a physical commodity</p> 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?

    <p>Poverty Gap Index</p> Signup and view all the answers

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

    <p>To create jobs and diversify goods and services</p> Signup and view all the answers

    What is a common characteristic of developing countries?

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

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

    <p>To evaluate a country's development through life expectancy, education, and GDP per capita</p> Signup and view all the answers

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

    <p>Poor education quality and inadequate infrastructure</p> Signup and view all the answers

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

    <p>To address local healthcare needs and agricultural practices</p> Signup and view all the answers

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

    <p>Local, culture-specific, and experiential</p> Signup and view all the answers

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

    <p>To restructure the economy to enable sustainable development</p> Signup and view all the answers

    What is a common trait of developing countries?

    <p>Low life expectancy and high poverty rates</p> Signup and view all the answers

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

    <p>To stabilize the economy and promote growth and redistribution</p> Signup and view all the answers

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

    <p>Investing in both directly productive assets and indirectly productive infrastructure</p> Signup and view all the answers

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

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

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

    <p>Geographic location</p> Signup and view all the answers

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

    <p>Non-storability</p> Signup and view all the answers

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

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

    What is the primary role of entrepreneurs in economic systems?

    <p>To innovate and take risks</p> Signup and view all the answers

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

    <p>Due to their differing rates of replenishment</p> Signup and view all the answers

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

    <p>Uneven economic dynamics</p> Signup and view all the answers

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

    <p>Demand for the resource</p> Signup and view all the answers

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

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

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

    <p>To reflect the total investment in physical assets</p> Signup and view all the answers

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

    <p>Centralized decision-making and planning</p> Signup and view all the answers

    What is the primary contribution of the circular flow model?

    <p>Providing insights into how money and goods circulate within an economy</p> Signup and view all the answers

    What is the primary advantage of a market economy?

    <p>Efficient production and innovation driven by profit motives</p> Signup and view all the answers

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

    <p>Inefficiencies in service delivery</p> Signup and view all the answers

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

    <p>To promote economic growth through efficient economic services</p> Signup and view all the answers

    What is the primary advantage of a centrally planned economy?

    <p>Even distribution of income</p> Signup and view all the answers

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

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

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

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

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

    <p>To facilitate the circular flow of goods and services</p> Signup and view all the answers

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

    <p>They explain how capital affects productivity and economic output</p> Signup and view all the answers

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

    <p>They mobilize resources, invest in capital, and employ labor</p> Signup and view all the answers

    What is the primary purpose of investing in capital goods?

    <p>To match growth in labor and manage depreciation</p> Signup and view all the answers

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

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

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

    <p>To determine the total value added at each stage of production</p> Signup and view all the answers

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

    <p>Intermediate goods are used as inputs in the production of other goods</p> Signup and view all the answers

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

    <p>To involve trade and financial transactions with other countries</p> Signup and view all the answers

    What is the primary purpose of the circular flow diagram?

    <p>To illustrate the economic transactions between different sectors of the economy</p> Signup and view all the answers

    What is the primary reason why entrepreneurs earn profit?

    <p>To compensate for the risks and efforts involved in starting and running a business</p> Signup and view all the answers

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

    <p>To account for inflation</p> Signup and view all the answers

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

    <p>To manage the country's foreign reserves</p> Signup and view all the answers

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

    <p>Potential systemic risk affecting the broader economy</p> Signup and view all the answers

    What is the primary role of banks in credit creation?

    <p>To extend loans exceeding their cash reserves, effectively creating new money through credit</p> Signup and view all the answers

    What is the primary purpose of micro-lending?

    <p>To provide small loans to individuals unable to access traditional bank financing</p> Signup and view all the answers

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

    <p>Adjusting the repo rate</p> Signup and view all the answers

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

    <p>To prevent predatory lending practices and ensure fair interest rates</p> Signup and view all the answers

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

    <p>It has no intrinsic value</p> Signup and view all the answers

    What is the primary function of money in facilitating transactions?

    <p>As a medium of exchange</p> Signup and view all the answers

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

    <p>Poverty gap index</p> Signup and view all the answers

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

    <p>Economic growth focuses on the output of goods and services, while economic development focuses on the standard of living.</p> Signup and view all the answers

    Which of the following is a characteristic of wealth?

    <p>The ability to generate income, and potential for value appreciation or depreciation.</p> Signup and view all the answers

    What is the primary purpose of the Gini Coefficient?

    <p>To measure the distribution of wealth across a population.</p> Signup and view all the answers

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

    <p>Economic systems that favor certain groups.</p> Signup and view all the answers

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

    <p>To reduce wealth inequality by providing a safety net to disadvantaged groups.</p> Signup and view all the answers

    What is a factor that influences economic growth?

    <p>Technological advancements that enhance production capabilities.</p> Signup and view all the answers

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

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

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

    <p>A broad-based improvement in the standard of living of a society.</p> Signup and view all the answers

    What is the primary purpose of Lorenz Curve?

    <p>To illustrate the actual distribution of wealth across a population.</p> Signup and view all the answers

    What is a factor that determines standard of living?

    <p>Economic growth, population size and structure, and employment levels.</p> Signup and view all the answers

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

    <p>To restructure the economy to enable sustainable development</p> Signup and view all the answers

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

    <p>Experiential and dynamic</p> Signup and view all the answers

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

    <p>Absolute poverty involves the lack of basic human needs, while relative poverty is a comparative lack within society</p> Signup and view all the answers

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

    <p>To stimulate growth through investing in directly productive assets and indirectly productive infrastructure</p> Signup and view all the answers

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

    <p>Human Development Index (HDI)</p> Signup and view all the answers

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

    <p>Inadequate utility services, including transportation, communication, and utilities</p> Signup and view all the answers

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

    <p>Encouraging entrepreneurship through education and training</p> Signup and view all the answers

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

    <p>Exacerbating economic and social challenges</p> Signup and view all the answers

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

    <p>To rectify shortcomings of previous policies and boost economic growth</p> Signup and view all the answers

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

    <p>Measures a combination of factors, including life expectancy, education, and GDP per capita</p> 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?

    <p>To reduce unemployment and enhance economic growth</p> Signup and view all the answers

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

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

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

    <p>Underinvestment in new energy sources</p> Signup and view all the answers

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

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

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

    <p>Discriminatory policies depriving black South Africans of land ownership</p> Signup and view all the answers

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

    <p>Extensive transport networks</p> Signup and view all the answers

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

    <p>Provides essential raw materials and energy</p> Signup and view all the answers

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

    <p>Encompasses service-oriented industries</p> Signup and view all the answers

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

    <p>To address historical inequalities in land ownership</p> Signup and view all the answers

    What is essential for South Africa's economic competitiveness?

    <p>Efficient communication systems</p> Signup and view all the answers

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

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

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

    <p>To reflect total investment in physical assets</p> Signup and view all the answers

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

    <p>It measures the total value of goods and services produced</p> Signup and view all the answers

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

    <p>To avoid double-counting in the calculation of GDP</p> Signup and view all the answers

    What is the primary characteristic of a Centrally Planned Economy?

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

    What is the primary role of entrepreneurs in economic systems?

    <p>To initiate and manage businesses, identifying new opportunities and innovatively combining production factors</p> Signup and view all the answers

    What is the primary disadvantage of a Market Economy?

    <p>Potential for significant inequalities in income and wealth distribution</p> Signup and view all the answers

    Which of the following is a characteristic of capital?

    <p>It includes manufactured resources used in further production, such as machinery and buildings</p> Signup and view all the answers

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

    <p>To promote economic growth through efficient economic services</p> Signup and view all the answers

    What is the primary objective of the circular flow model?

    <p>To provide insights into how money and goods circulate within an economy</p> Signup and view all the answers

    What is the primary purpose of the circular flow diagram?

    <p>To illustrate the movement of goods and services within an economy</p> Signup and view all the answers

    What is the primary reward for entrepreneurship?

    <p>Profit, which compensates for the risks and efforts involved in starting and running a business</p> Signup and view all the answers

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

    <p>It measures the total income generated by production</p> Signup and view all the answers

    What is the primary factor that influences wage levels?

    <p>The demand for specific labor types and broader economic conditions</p> Signup and view all the answers

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

    <p>Inefficiencies in service delivery</p> Signup and view all the answers

    What is the primary purpose of investment in capital goods?

    <p>To match growth in labor and manage depreciation</p> Signup and view all the answers

    What is the primary role of entrepreneurs in economic systems?

    <p>To respond to the forces of supply and demand</p> Signup and view all the answers

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

    <p>A decrease in economic growth</p> Signup and view all the answers

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

    <p>To enhance growth, competitiveness, and employment</p> Signup and view all the answers

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

    <p>To collect taxes and redistribute income through spending and transfers</p> Signup and view all the answers

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

    <p>It involves the extraction and harvesting of natural resources</p> Signup and view all the answers

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

    <p>To adjust for changes in the cost of living</p> Signup and view all the answers

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

    <p>To manufacture and construct goods from raw materials</p> Signup and view all the answers

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

    <p>The tertiary sector</p> Signup and view all the answers

    What is crucial for South Africa's economic competitiveness?

    <p>Stable exchange rates and producing high-quality goods</p> Signup and view all the answers

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

    <p>Discriminatory policies depriving black South Africans of land ownership and equal opportunities</p> Signup and view all the answers

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

    <p>Severe limitations on the participation of black people in owning businesses and property</p> Signup and view all the answers

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

    <p>Extensive transport networks</p> Signup and view all the answers

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

    <p>Underinvestment in new power sources and insufficient emphasis on renewable energy</p> Signup and view all the answers

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

    <p>To support local businesses and facilitate international trade through initiatives like ASGISA</p> Signup and view all the answers

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

    <p>To facilitate sustainable management and conservation of resources</p> Signup and view all the answers

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

    <p>Labor supply</p> Signup and view all the answers

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

    <p>To increase labor productivity</p> Signup and view all the answers

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

    <p>Skill level</p> Signup and view all the answers

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

    <p>It involves the organization and management of production</p> Signup and view all the answers

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

    <p>They are all essential for production</p> Signup and view all the answers

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

    <p>They have different characteristics</p> Signup and view all the answers

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

    <p>It affects economic dynamics</p> Signup and view all the answers

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

    <p>To provide loans exceeding their cash reserves, effectively creating new money</p> Signup and view all the answers

    What is the main objective of the Millennium Development Goals?

    <p>To eradicate extreme poverty and hunger by 2015</p> Signup and view all the answers

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

    <p>To redistribute wealth and address poverty</p> Signup and view all the answers

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

    <p>Losses for depositors and investors, job losses, and potential systemic risk</p> Signup and view all the answers

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

    <p>Local and culture-specific</p> Signup and view all the answers

    What is the primary characteristic of fiat money?

    <p>It is not backed by a physical commodity</p> Signup and view all the answers

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

    <p>Absolute poverty refers to a lack of basic human needs, while relative poverty refers to a comparative lack within society</p> Signup and view all the answers

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

    <p>To implement monetary policy and manage foreign reserves</p> Signup and view all the answers

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

    <p>To invest in directly productive assets and indirectly productive infrastructure</p> Signup and view all the answers

    What is the primary purpose of micro-lending?

    <p>To provide small loans to individuals unable to access traditional bank financing</p> Signup and view all the answers

    What is the primary characteristic of developing countries?

    <p>Low standard of living and rapid population growth</p> Signup and view all the answers

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

    <p>Repo rate adjustments</p> Signup and view all the answers

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

    <p>To measure a country's development through factors like life expectancy, education, and GDP per capita</p> Signup and view all the answers

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

    <p>To prevent predatory lending practices and ensure fair interest rates</p> Signup and view all the answers

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

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

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

    <p>To stabilize the economy and promote growth</p> Signup and view all the answers

    What is the primary function of the headcount index?

    <p>To measure the percentage of the population living below the poverty line</p> Signup and view all the answers

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

    <p>To adjust for changes in the cost of living due to inflation</p> Signup and view all the answers

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

    <p>To improve education, particularly in crucial areas like math and science</p> Signup and view all the answers

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

    <p>High life expectancy</p> Signup and view all the answers

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

    <p>Economic growth is a narrow concept, while economic development is a broader concept.</p> Signup and view all the answers

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

    <p>Savings are derived from income not spent on consumption.</p> Signup and view all the answers

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

    <p>It does not take into account the absolute level of wealth.</p> Signup and view all the answers

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

    <p>To influence economic stability and public services.</p> Signup and view all the answers

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

    <p>It increases the productive capacity of an economy.</p> Signup and view all the answers

    What is the primary characteristic of the Lorenz Curve?

    <p>It illustrates the actual distribution of wealth across a population, showing deviations from perfect equality.</p> Signup and view all the answers

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

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

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

    <p>They are not equally distributed among the population.</p> Signup and view all the answers

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

    <p>They enhance the production capabilities of an economy.</p> Signup and view all the answers

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

    <p>It enhances the efficiency of the workforce.</p> Signup and view all the answers

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