June P1 Easy
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Questions and Answers

What are the four primary factors of production?

  • Land, Labor, Capital, and Technology
  • Natural Resources, Labor, Capital, and Entrepreneurship (correct)
  • Land, Labor, Capital, and Government
  • Natural Resources, Labor, Entrepreneurship, and Management

    • What is the primary payment associated with natural resources?

  • Rent (correct)
  • Wages
  • Profits
  • Interest

    • What is a characteristic of labor?

  • It varies in skill level (correct)
  • It is not affected by migration patterns
  • It is inherently storable
  • It is a non-renewable resource

    • What is the importance of natural resources in economic development?

    <p>They drive economic development by providing raw materials, generating income, creating employment opportunities, and underpinning international trade</p> Signup and view all the answers

    What is a factor affecting labor supply?

    <p>Labor force participation rates</p> Signup and view all the answers

    What is entrepreneurship in the context of factors of production?

    <p>The process of creating new businesses and opportunities</p> Signup and view all the answers

    What is a characteristic of natural resources?

    <p>They are categorized into renewable and non-renewable types</p> Signup and view all the answers

    What is the compensation for labor?

    <p>Wages and benefits</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

    What is the primary role of entrepreneurs in economic systems?

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

    What is the term for the return on invested funds in capital?

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

    What is the Income Method of calculating GDP?

    <p>Total of incomes generated by production</p> Signup and view all the answers

    What is the circular flow of goods and services?

    <p>The continuous movement of goods, services, and money within an economy</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 in further production</p> Signup and view all the answers

    What is Gross National Income (GNI)?

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

    What is the main characteristic of a market economy?

    <p>Predominantly private ownership of production factors</p> Signup and view all the answers

    What is the term for the total value of all final goods and services produced within a country's borders in a specific time period?

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

    Which of the following initiatives aims to enhance growth, competitiveness, and employment in South Africa?

    <p>New Economic Growth Path</p> Signup and view all the answers

    What is a disadvantage of a market economy?

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

    What is the primary goal of South Africa's international competitiveness strategy?

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

    What is the primary reward for entrepreneurship?

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

    What are the three main sectors of South Africa's economic structure?

    <p>Primary, Secondary, and Tertiary</p> Signup and view all the answers

    What is the main goal of a mixed economy?

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

    What is the term for the spending by businesses on capital goods like machinery and buildings?

    <p>Investment (I)</p> Signup and view all the answers

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

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

    What is a characteristic of South Africa's mixed economy?

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

    What is the term for the total spending by households on non-durable, semi-durable, and durable goods as well as services?

    <p>Consumption (C)</p> Signup and view all the answers

    What is the method of calculating GDP that involves summing the value added at each stage of production?

    <p>Value Added Method</p> Signup and view all the answers

    What is the Expenditure Method of calculating GDP?

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

    What is the main 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 importance of understanding the circular flow?

    <p>It helps in understanding the effects of various sectors on economic growth and stability</p> Signup and view all the answers

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

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

    What is a disadvantage of a centrally planned economy?

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

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

    <p>It is the largest contributor to GDP</p> Signup and view all the answers

    What is the role of the government in a mixed economy?

    <p>To provide social services and promote economic growth</p> Signup and view all the answers

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

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

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

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

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

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

    What is the primary function of capital in production?

    <p>To sustain production capabilities</p> Signup and view all the answers

    What influences the rate of return on invested capital?

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

    What is the primary role of entrepreneurs in economic systems?

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

    What represents the continuous movement of goods, services, and money within an economy?

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

    What distinguishes final goods from intermediate goods?

    <p>Final goods are not used as inputs in other goods</p> Signup and view all the answers

    What is the term for the total value of all final goods and services produced within a country's borders?

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

    What is the term for the spending by households on non-durable, semi-durable, and durable goods as well as services?

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

    What is the method of calculating GDP that involves summing the value added at each stage of production?

    <p>Value Added Method</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 term for the spending by businesses on capital goods like machinery and buildings?

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

    What is the primary objective of a mixed economy?

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

    What is Gross Fixed Capital Formation (I)?

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

    Which of the following is an advantage of a market economy?

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

    What is the primary role of the government in a mixed economy?

    <p>To provide social services and promote economic growth</p> Signup and view all the answers

    What is the primary disadvantage of a centrally planned economy?

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

    What is the significance of understanding the circular flow?

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

    What is the primary characteristic of a market economy?

    <p>Predominantly private ownership of production factors</p> Signup and view all the answers

    What is the primary goal of South Africa's mixed economy?

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

    What is the primary advantage of a mixed economy?

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

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

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

    What is the primary function of natural resources in a market system?

    <p>To generate income for resource owners and create employment opportunities</p> Signup and view all the answers

    What is a characteristic of labor in the context of factors of production?

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

    What is the compensation associated with entrepreneurship in a market system?

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

    What is a factor that influences the payment associated with natural resources?

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

    What is the primary role of a skilled workforce in economic growth?

    <p>To increase productivity and drive economic growth</p> Signup and view all the answers

    What is a characteristic of capital in the context of factors of production?

    <p>It is a man-made resource used in the production process</p> Signup and view all the answers

    What is the primary importance of natural resources in economic development?

    <p>To drive economic development by providing raw materials for goods and services</p> Signup and view all the answers

    What is the significance of sustainable management of natural resources?

    <p>To ensure the long-term availability of natural resources</p> Signup and view all the answers

    What is the primary goal of South Africa's economic services?

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

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

    <p>It dominates the economy</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

    What is the role of the government in South Africa's mixed economy?

    <p>To provide support and regulation</p> Signup and view all the answers

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

    <p>They are vital for economic competitiveness</p> Signup and view all the answers

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

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

    What is the primary goal of South Africa's international competitiveness strategy?

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

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

    <p>It generates foreign exchange</p> Signup and view all the answers

    Which factor of production is responsible for generating income for resource owners?

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

    What determines the quality of labor in a market system?

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

    What is the primary purpose of natural resources in economic development?

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

    Which factor of production is essential for production but varies in availability and renewability?

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

    What is the primary importance of labor in a market system?

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

    What is the main role of entrepreneurs in an economic system?

    <p>To identify new opportunities and innovate</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 form of remuneration for natural resources?

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

    What is the circular flow of goods and services?

    <p>A model that represents the continuous movement of goods, services, and money within an economy</p> Signup and view all the answers

    What is the primary characteristic of labor in a market system?

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

    Which factor of production underpins international trade?

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

    What is the distinction 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 reward for entrepreneurship?

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

    What is the term for the total value of all final goods and services produced within a country's borders in a specific time period?

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

    What influences the rate of return on invested capital?

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

    What is the term for the spending by households on non-durable, semi-durable, and durable goods as well as services?

    <p>Consumption (C)</p> Signup and view all the answers

    What is the main characteristic of capital?

    <p>It is a factor of production that is used to produce goods and services</p> Signup and view all the answers

    What is the term for the spending by businesses on capital goods like machinery and buildings?

    <p>Investment (I)</p> Signup and view all the answers

    What is the primary goal of a mixed economy?

    <p>To balance private and public sectors</p> Signup and view all the answers

    What is the primary characteristic of a market economy?

    <p>Predominantly private ownership of production factors</p> Signup and view all the answers

    What is the term for the sum of all expenditures made on final goods and services?

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

    What is the main advantage of a market economy?

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

    What is the main disadvantage of a centrally planned economy?

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

    What is the primary role of the government in a mixed economy?

    <p>To provide social services and promote economic growth</p> Signup and view all the answers

    What is the term for the total domestic expenditure on goods and services, adjusted for imports and exports?

    <p>Expenditure on Gross Domestic Product (GDE)</p> Signup and view all the answers

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

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

    What is the term for the return on invested funds in capital?

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

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

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

    What is the primary goal of South Africa's economic services?

    <p>To support local businesses</p> Signup and view all the answers

    What is the main sector that provides essential raw materials and energy?

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

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

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

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

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

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

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

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

    <p>They facilitate domestic and international trade</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 largest sector in developed economies?

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

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

    <p>To improve access and equity in the secondary sector</p> Signup and view all the answers

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

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

    What is a key difference between renewable and non-renewable natural resources?

    <p>Their sustainability</p> Signup and view all the answers

    What is the primary role of labor in the production process?

    <p>To provide human effort and skills</p> Signup and view all the answers

    Which factor of production is responsible for innovation and risk-taking?

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

    What is the compensation for entrepreneurship?

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

    What affects the payment associated with natural resources?

    <p>Demand, quality, climate, and technological advancements</p> Signup and view all the answers

    Why is labor supply not rapidly adjusted?

    <p>Due to the time required for training</p> Signup and view all the answers

    What is the importance of natural resources in economic development?

    <p>Providing raw materials, generating income, creating employment, and underpinning international trade</p> Signup and view all the answers

    What is the primary characteristic of labor?

    <p>It varies in skill level</p> Signup and view all the answers

    What is the primary function of capital in production?

    <p>To sustain production capabilities</p> Signup and view all the answers

    What is the importance of distinguishing between final and intermediate goods?

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

    What is the role of entrepreneurs in economic systems?

    <p>To identify new opportunities and innovate</p> Signup and view all the answers

    What is the circular flow of goods and services?

    <p>The continuous movement of goods, services, and money within an economy</p> Signup and view all the answers

    What is the significance 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 reward for entrepreneurship?

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

    What is Gross Domestic Product (GDP)?

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

    What influences the rate of return on invested capital?

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

    What is the significance of capital widening and deepening in economic growth?

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

    What is the primary sector of the circular flow diagram?

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

    What is the main objective of a mixed economy?

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

    What is the primary function of the government in a mixed economy?

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

    What is the primary goal of South Africa's economic structures?

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

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

    <p>To extract and harvest natural resources</p> Signup and view all the answers

    What is the main advantage of a market economy?

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

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

    <p>Insufficient investment in renewable energy</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 significance of the tertiary sector in South Africa's economy?

    <p>It dominates the economy and contributes significantly to GDP</p> Signup and view all the answers

    What is the term for the total value of all final goods and services produced within a country's borders in a specific time period?

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

    What is the main disadvantage of a centrally planned economy?

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

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

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

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

    <p>They facilitate domestic and international trade, boosting GDP and employment</p> Signup and view all the answers

    What does the circular flow provide insights into?

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

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

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

    What is the term for the total domestic expenditure on goods and services, adjusted for imports and exports?

    <p>Expenditure on Gross Domestic Product (GDE)</p> Signup and view all the answers

    What is the primary goal of the government in providing social services?

    <p>To improve public welfare and mitigate poverty</p> Signup and view all the answers

    What is the 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 significance 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 main characteristic of South Africa's mixed economy?

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

    What is the primary objective of international competitiveness in South Africa?

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

    Which of the following sectors provides essential raw materials and energy?

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

    What is the goal of South Africa's international competitiveness strategy?

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

    What is the main characteristic of South Africa's economic structure?

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

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

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

    What is the main goal of a mixed economy?

    <p>To promote economic growth and stability while balancing social welfare</p> Signup and view all the answers

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

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

    What is a characteristic of South Africa's mixed economy?

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

    What is Gross National Income (GNI)?

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

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

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

    What is the primary role of the government in a mixed economy?

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

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

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

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

    <p>To address land inequalities resulting from apartheid</p> Signup and view all the answers

    What is a disadvantage of a market economy?

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

    What is the significance of understanding the circular flow?

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

    What is the goal 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 a characteristic of a centrally planned economy?

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

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

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

    What is the Expenditure Method of calculating GDP?

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

    What is the primary goal of social services in a mixed economy?

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

    What is Gross Fixed Capital Formation (I)?

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

    What distinguishes natural resources from other factors of production?

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

    What is the primary reason why natural resources drive economic development?

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

    What is a characteristic of labor that affects its supply?

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

    What is the primary factor that influences the remuneration of natural resources?

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

    What is the primary role of entrepreneurs in the production process?

    <p>They take on the risk of production</p> Signup and view all the answers

    What is the primary function of capital in production?

    <p>To sustain production capabilities</p> Signup and view all the answers

    What is the primary difference between skilled and unskilled labor?

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

    What is the primary importance of a skilled workforce in economic growth?

    <p>It increases productivity</p> Signup and view all the answers

    What is the term for the return on invested funds in capital?

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

    What is the importance of entrepreneurs in economic systems?

    <p>To generate wealth and create jobs</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 term for the total spending by households on non-durable, semi-durable, and durable goods as well as services?

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

    What is the method of calculating GDP that involves summing the value added at each stage of production?

    <p>Value Added Method</p> Signup and view all the answers

    What is the primary role of government in the circular flow of goods and services?

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

    What distinguishes final goods from intermediate goods?

    <p>Their use in further production</p> Signup and view all the answers

    What is the term for the total value of all final goods and services produced within a country's borders in a specific time period?

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

    What is the primary characteristic of entrepreneurship?

    <p>Initiating and managing businesses</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

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