474 Questions
What is the primary function of the foreign sector in the circular flow model?
To facilitate trade activities and manage exports and imports
What type of market trades consumer goods and services?
Goods Market
What is the primary role of households in the circular flow model?
To provide labor and resources, receiving income used for consumption, savings, and taxes
What is measured by the Gross Domestic Product (GDP)?
The total economic output at market prices
What type of flows involve the movement of goods and services?
Real Flows
What type of market deals in resources like labor and capital?
Factor Market
What is the primary function of the government sector in the circular flow model?
To collect taxes and inject spending into the economy
What type of market manages the flow of money, including savings and investments?
Financial Market
What does GNI (Gross National Income) account for?
All income earned by a country's residents, regardless of location
What is the basic formula for the multiplier in a simple two-sector model?
k = 1 / (1 - MPC)
What is the phase of the business cycle marked by an increase in economic activities?
Expansion
What is the lowest point of a business cycle?
Trough
What is an example of an exogenous factor influencing business cycles?
Natural disasters
Which theory proposes that business cycles are driven by external shocks?
Classical and Neoclassical Theories
What is the purpose of monetary policy?
To stabilize economic activity
What is an example of fiscal policy?
Increasing government spending during an economic downturn
What is the highest point of a business cycle?
Peak
What is the term for the marginal propensity to consume?
MPC
What is the primary objective of the New Economic Paradigm?
To smooth out the volatility in business cycles and achieve stable growth
Which of the following is a demand-side policy?
Reducing income tax rates to boost consumption
What is the purpose of leading indicators in forecasting business cycles?
To predict future economic activity by moving ahead of the business cycle
What is the primary role of the national government in the public sector?
To handle national affairs like defense and education
What is a major problem with public sector provisioning?
All of the above
What is a key objective of the public sector?
To promote economic growth and employment
What is the purpose of the Medium-Term Expenditure Framework (MTEF)?
To plan for three-year budget periods
What is a fiscal policy instrument?
Taxation
What is the Laffer Curve related to?
The relationship between taxation and economic activity
What is a goal of economic planning and policymaking?
To mitigate the adverse effects of downturns and capitalize on periods of growth
What is the primary goal of government spending?
To direct spending towards public goods and services that encourage economic growth and stability
What does the Laffer Curve illustrate?
The relationship between tax rates and tax revenue
What is a drawback of administered prices?
They lead to shortages or surpluses
What is a challenge faced by the public sector?
Information failure
What is the primary goal of protectionism?
To protect local businesses from foreign competition
What is an argument for free trade?
It promotes specialization and economies of scale
What is the infant industry argument?
A justification for protectionism to protect emerging domestic industries
What is a goal of South Africa's export promotion policies?
To encourage local firms to export goods
What is the purpose of import substitution?
To encourage local production of goods that were previously imported
What is the primary goal of South Africa's National Industrial Policy Framework (NIPF)?
To guide the overall industrial strategy of South Africa
Which of the following is a justification for South Africa's industrial policies?
To promote economic diversification
What is the focus of South Africa's Integrated Manufacturing Strategy (IMS)?
Enhancing competitiveness in the manufacturing sector
What is the purpose of South Africa's Special Economic Zones (SEZs)?
To offer incentives to attract businesses and stimulate economic activities
What is one of the key elements of South Africa's industrial strategies aligned with international best practices?
Inclusivity
What is the purpose of South Africa's Spatial Development Initiatives (SDIs)?
To target underdeveloped areas for infrastructure and industrial development
What is one of the challenges facing South Africa's industrial policies?
Implementation gaps
What is one of the indicators used to evaluate the effectiveness of South Africa's industrial strategies?
GDP growth
What is the purpose of South Africa's Industrial Development Zones (IDZs)?
To offer incentives like tax breaks and infrastructure support to attract investments
What is one of the key aspects of South Africa's industrial development policies?
Promoting regional development
What is the primary focus of the Reconstruction and Development Programme (RDP) in South Africa?
Meeting basic needs and developing human resources
What is the main difference between economic growth and economic development?
Economic growth focuses on GDP, while economic development focuses on standards of living
What is the primary goal of the Accelerated and Shared Growth Initiative of South Africa (Asgi-SA)?
Halving unemployment and poverty
What is a key feature of the North/South divide?
A significant disparity in income levels, economic stability, and access to resources
What is the primary focus of the New Growth Path (NGP) in South Africa?
Identifying job drivers like infrastructure and agriculture
What is a key feature of the Demand-side Approach to Economic Growth?
Increasing government expenditure and redistributing income
What is the primary goal of the Growth, Employment and Redistribution (GEAR) strategy in South Africa?
Aims at market-led growth, fiscal and monetary discipline, and enhancing investor confidence
What is the primary focus of South Africa's industrial policies?
Promoting economic growth and sustainable development
What is the primary goal of the Supply-side Approach to Economic Growth?
Improving the quality of the labor force and managing natural resources
What is the primary focus of industrial development in South Africa?
All of the above
What is measured by the Consumer Price Index (CPI)?
The average price change of goods and services purchased by households
What is the Economically Active Population (EAP)?
All persons available to supply labor for production
What does the Exchange Rate affect?
Trade competitiveness and economic growth
What is the Repo Rate?
The interest rate at which the central bank lends to commercial banks
What is a measure of the overall health and longevity of the population?
Life Expectancy
What is the primary purpose of these indicators?
To evaluate the impact of current policies
What is an example of a Social Indicator?
Life Expectancy
What do the indicators allow for?
All of the above
What do policymakers use these indicators for?
To evaluate the impact of current policies
What is the primary purpose of the circular flow model?
To illustrate the economic activities among various sectors
What is the type of market that deals in resources like labor and capital?
Factor Market
What is the difference between Real Flows and Money Flows?
Real Flows involve the movement of goods and services
What is the term for the total economic output at market prices?
Gross Domestic Product (GDP)
Which sector of the economy provides labor and resources?
Households
What is the term for the economic activities facilitated through various markets?
Economic Activities
What is the purpose of the foreign sector in the circular flow model?
To involve trade activities
What does the government sector do in the circular flow model?
Collects taxes and injects spending into the economy
What is the primary objective of the New Economic Paradigm?
To smooth out the volatility in business cycles and achieve stable growth
Which type of policy aims to regulate aggregate demand through fiscal stimuli or monetary adjustments?
Demand-side policy
What type of indicator predicts future economic activity?
Leading indicator
What is the purpose of the public sector?
To provide essential public goods and services
What is a challenge faced by the public sector?
Inefficiency due to lack of clear performance metrics and accountability
What is the purpose of the Medium-Term Expenditure Framework (MTEF)?
To plan and manage government expenditure over a three-year period
What is a fiscal policy instrument?
Taxation
What is the Laffer Curve related to?
The relationship between taxation and economic growth
What is the primary goal of economic planning and policymaking?
To mitigate the adverse effects of downturns and capitalize on periods of growth
What is the primary role of the national government in the public sector?
To handle national affairs such as defense and education
What is the main difference between the two-sector and three-sector models?
One includes government and foreign transactions, while the other does not.
What is the purpose of the multiplier formula?
To calculate the impact of initial increases in spending on economic output.
What is the primary characteristic of the contraction phase of a business cycle?
A decrease in economic indicators such as employment and production.
What is the primary role of government in Keynesian theory?
To smooth out business cycles through fiscal and monetary policies.
What is the purpose of fiscal policy?
To stimulate economic activity during downturns and curb inflation during booms.
What is the primary difference between endogenous and exogenous factors influencing business cycles?
Endogenous factors arise from within the economic system, while exogenous factors arise from outside the system.
What is the primary focus of Schumpeterian theory?
The role of technological innovation in causing business cycles.
What is the purpose of monetary policy?
To stabilize economic activity through the control of interest rates and the money supply.
What is the main characteristic of the peak of a business cycle?
The highest point of economic activity.
What is the primary role of households in the circular flow model?
To provide labor and consume goods and services.
What is the primary goal of government spending in achieving economic growth and stability?
To direct spending towards public goods and services
What is the Laffer Curve related to?
The relationship between tax rates and tax revenue
What is a common tool used to implement protectionism?
Quotas and subsidies
What is an argument for free trade?
Specialization and economic efficiency
What is the purpose of South Africa's export promotion policies?
To promote local industries and reduce dependency on imports
What is a challenge faced by the public sector in South Africa?
Efficiency and accountability
What is the primary goal of protectionism?
To protect local industries and jobs from foreign competition
What is an example of a drawback of administered prices?
Shortages or surpluses
What is the primary goal of import substitution in South Africa?
To encourage local production of goods that were previously imported
What is the primary role of the national government in the public sector?
To provide public goods and services
What is the primary goal of South Africa's National Industrial Policy Framework (NIPF)?
To guide the overall industrial strategy of South Africa
What is the main focus of South Africa's Integrated Manufacturing Strategy (IMS)?
Enhancing competitiveness in the manufacturing sector
What is the purpose of South Africa's Special Economic Zones (SEZs)?
To offer incentives to attract businesses and stimulate economic activities
What is one of the key elements of South Africa's industrial strategies aligned with international best practices?
Governance and transparency
What is the purpose of South Africa's Spatial Development Initiatives (SDIs)?
To target underdeveloped areas for infrastructure and industrial development
What is one of the challenges facing South Africa's industrial policies?
Implementation gaps
What is one of the indicators used to evaluate the effectiveness of South Africa's industrial strategies?
All of the above
What is the primary goal of South Africa's industrial policies?
To promote economic growth and development
What is the focus of South Africa's regional development initiatives?
Reducing economic disparities between regions
What is the purpose of South Africa's Industrial Development Zones (IDZs)?
To offer incentives like tax breaks and infrastructure support to attract investments
What is the primary focus of the Reconstruction and Development Programme (RDP) in South Africa?
Meeting basic needs, developing human resources, and building the economy
What is the main difference between economic growth and economic development?
Economic growth refers to an increase in real GDP, while economic development includes improvements in standards of living
Which of the following approaches to economic growth focuses on increasing government expenditure and redistributing income?
Demand-side approach
What is the primary goal of the Growth, Employment and Redistribution (GEAR) strategy in South Africa?
To achieve market-led growth and fiscal discipline
What is the primary focus of the Accelerated and Shared Growth Initiative of South Africa (Asgi-SA)?
To promote economic growth and job creation
What is the primary goal of South Africa's industrial policies?
To promote economic growth and sustainable development
Which of the following is a characteristic of the North/South divide?
A significant disparity exists between the developed North and the developing South in terms of income levels
What is the primary goal of South Africa's export promotion policies?
To increase the country's exports and improve its trade balance
What is the primary goal of import substitution policies?
To reduce the country's dependence on imports and promote domestic production
Which of the following is a strategy used to promote economic growth and development in South Africa?
New Growth Path (NGP)
What is the function of the Consumer Price Index (CPI)?
To measure the average price change of goods and services purchased by households
What is the Economically Active Population (EAP)?
All persons within the working age group (15-65 years) available to supply labor for production
What is the purpose of the Exchange Rate?
To reflect the value of the South African rand against other currencies
What is the Repo Rate?
The rate at which the South African Reserve Bank lends money to commercial banks, influencing other interest rates across the economy
What is the purpose of the Terms of Trade?
To compare the rate of export prices to import prices
What is the purpose of M1, M2, and M3?
To include currency in circulation and different types of bank deposits, reflecting the liquidity available in the economy
What is the purpose of Population Growth?
To track changes in population size which impacts demand for goods and services
What is the purpose of Infant and Under-5 Mortality Rates?
To track the health environment and effectiveness of healthcare systems
What is the purpose of Enrolment Rates?
To track the percentage of eligible children attending schools
What is the purpose of International Benchmarking?
To allow for the comparison of South Africa's performance with that of other countries
What is the primary function of the circular flow model?
To illustrate the economic activities among various sectors and their interactions through markets
What is the main component of the goods market in the circular flow model?
Consumer goods and services
What is measured by the Gross Domestic Product (GDP) in the circular flow model?
The total economic output at market prices
What is the purpose of the financial market in the circular flow model?
To manage the flow of money, including savings and investments
What type of flow involves the movement of goods and services in the circular flow model?
Real Flows
Which sector injects spending into the economy through public services and infrastructure in the circular flow model?
Government
What is the main function of the foreign sector in the circular flow model?
To facilitate trade activities, where exports add to the economic flow and imports lead to outflows of currency
What is the main goal of government spending in the public sector?
To encourage economic growth and stability
What is the Laffer Curve related to?
The relationship between tax rates and tax revenue
What is the multiplier effect in the circular flow model?
The extent to which additional spending can amplify economic activity
What is protectionism?
A government action to restrict international trade
What is the infant industry argument?
A justification for protecting emerging domestic industries
What is a drawback of administered prices?
They lead to shortages or surpluses
What is the primary goal of South Africa's export promotion policies?
To increase participation in the global market
What is the primary goal of import substitution?
To reduce dependency on imports
What is a challenge faced by the public sector?
Ensuring accountability and transparency
What is the main difference between Gross National Income (GNI) and Gross Domestic Product (GDP)?
GNI accounts for income earned by residents, while GDP accounts for income earned within the country.
What is a key objective of the public sector?
To provide public goods and services
What is a benefit of free trade?
Access to a wider variety of goods and services
Which of the following is a characteristic of the expansion phase of a business cycle?
Employment, production, and sales show significant growth.
What is the purpose of the multiplier formula in a simple two-sector model?
To explain how initial increases in spending lead to a more significant overall increase in economic output.
Which of the following theories proposes that business cycles are due to changes in aggregate demand?
Keynesian theory.
What is the primary objective of fiscal policy?
To stabilize economic activity.
What is the phase of the business cycle that follows the peak?
Contraction.
Which of the following is an example of an endogenous factor influencing business cycles?
Changes in consumer confidence.
What is the purpose of monetary policy?
To stabilize economic activity.
What is the primary focus of the Schumpeterian theory?
The role of technological innovation in causing business cycles.
What is the term for the highest point of a business cycle?
Peak.
What is the primary goal of the New Economic Paradigm?
To smooth out the volatility in business cycles
What is the focus of demand-side policies?
Regulating aggregate demand
What is the primary role of supply-side policies?
Increasing productivity and efficiency
What type of economic indicator confirms trends that are already in process?
Lagging indicator
What is the purpose of extrapolation in forecasting business cycles?
Predicting future behavior based on historical data and trends
What is the primary role of the public sector?
Providing essential services
What is a major challenge faced by the public sector?
Inefficiency due to lack of clear performance metrics
What is the primary objective of the Medium-Term Expenditure Framework (MTEF)?
To plan over a three-year period
What is the primary goal of taxation as a fiscal policy instrument?
To manage economic activity
What is the Laffer Curve related to?
Fiscal policy and taxation
What is the primary goal of South Africa's National Industrial Policy Framework (NIPF)?
To promote economic growth through industrial activities
What is one of the key elements of South Africa's industrial strategies aligned with international best practices?
Governance and Transparency
What is the primary focus of South Africa's Integrated Manufacturing Strategy (IMS)?
Enhancing competitiveness in the manufacturing sector
What is the purpose of South Africa's Special Economic Zones (SEZs)?
To offer incentives to attract businesses and stimulate economic activities
What is one of the indicators used to evaluate the effectiveness of South Africa's industrial strategies?
Gross Domestic Product (GDP) growth
What is one of the challenges facing South Africa's industrial policies?
All of the above
What is the purpose of South Africa's Spatial Development Initiatives (SDIs)?
To target underdeveloped areas for infrastructure and industrial development
What is one of the key aspects of South Africa's industrial development policies?
Regional development
What is the primary goal of South Africa's industrial policies?
To promote economic growth through industrial activities
What is one of the justifications for South Africa's industrial policies?
All of the above
What is the Producer Price Index (PPI) used to measure?
The average movement of selling prices from domestic production over time
What is the Employment Rate?
The proportion of the labor force that is employed
What is the Repo Rate?
The rate at which the South African Reserve Bank lends money to commercial banks
What is the primary purpose of the Terms of Trade?
To compare the rate of export prices to import prices
What is the primary indicator of the health environment and effectiveness of healthcare systems?
Infant and Under-5 Mortality Rates
What is the primary purpose of tracking Population Growth?
To track changes in population size which impacts demand for goods and services
What is the primary purpose of the Money Supply indicators?
To measure the liquidity available in the economy
What is the primary purpose of International Comparisons?
To compare South Africa's economic performance with that of other countries
What is the primary use of Economic and Social Indicators?
To evaluate the impact of current policies
What is the primary purpose of Urbanisation Rate?
To indicate the movement of the population towards urban areas
What is the main difference between economic growth and economic development?
Economic growth refers to an increase in a country's real GDP or real GDP per capita over time, while economic development refers to the broader concept.
What is the primary goal of the New Growth Path (NGP) in South Africa?
To create jobs and identify job drivers like infrastructure and agriculture.
What is the primary focus of South Africa's Reconstruction and Development Programme (RDP)?
Meeting basic needs, developing human resources, and building the economy.
What is the primary objective of South Africa's industrial policies?
To increase industrial activity, diversify the economy, and enhance regional development.
What is the main challenge facing South Africa's industrial policies?
Balancing economic growth with income inequality and poverty.
What is the primary goal of South Africa's export promotion policies?
To support domestic industries and increase their exports.
What is the primary focus of South Africa's Accelerated and Shared Growth Initiative of South Africa (Asgi-SA)?
To target halving unemployment and poverty by improving average economic growth.
What is the primary objective of South Africa's Growth, Employment, and Redistribution (GEAR) policy?
To aim at market-led growth, fiscal and monetary discipline, and enhancing investor confidence.
What is the primary goal of South Africa's Reconstruction and Development Programme (RDP) in relation to human resources?
To focus on meeting basic needs, developing human resources, and building the economy.
What is the primary focus of South Africa's industrial development policies in relation to regional development?
To enhance regional development and reduce regional disparities.
Which sector in the circular flow model involves trade activities, where exports add to the economic flow and imports lead to outflows of currency?
Foreign Sector
What is the term for the total economic output at market prices?
Gross Domestic Product
Which market deals in resources like labor and capital?
Factor Market
What is the primary function of firms in the circular flow model?
Utilize labor and resources to produce goods and services
What represents the financial transactions for goods and services?
Money Flows
Which sector in the circular flow model collects taxes and injects spending into the economy through public services and infrastructure?
Government
What is the primary function of households in the circular flow model?
Provide labor and resources, receiving income used for consumption, savings, and taxes
Which market trades consumer goods and services?
Goods Market
What does the Gross National Income (GNI) account for?
All income earned by a country's residents
What is the purpose of the multiplier effect?
To reveal initial increases in spending leading to a more significant overall increase in economic output
What is the basic formula for the multiplier in a simple two-sector model?
k = 1 / (1 - MPC)
What is the phase of the business cycle marked by a decrease in economic activities?
Contraction
What is the term for the highest point of a business cycle?
Peak
What is the purpose of monetary policy?
To control inflation and stabilize economic activity
What is an example of an endogenous factor influencing business cycles?
Technological innovations
Which theory proposes that business cycles are driven by changes in aggregate demand?
Keynesian Theory
What is the primary role of government spending in times of economic downturn?
To stimulate demand and pull the economy out of a recession
What is the term for the marginal propensity to consume?
MPC
What is the primary goal of government spending?
To provide public goods and services that promote economic growth and stability
What is the Laffer Curve related to?
The relationship between tax rates and tax revenue
What is a drawback of administered prices?
They lead to shortages or surpluses
What is the primary goal of protectionism?
To protect local businesses and jobs from foreign competition
What is one of the arguments for free trade?
It fosters innovation and specialization
What is the infant industry argument for protectionism?
To protect emerging domestic industries from foreign competition
What is the primary goal of South Africa's export promotion policies?
To increase exports
What is the purpose of import substitution?
To encourage local production of goods that were previously imported
What is a challenge faced by the public sector?
All of the above
What is the focus of the public sector in South Africa?
Managing resources
What is the primary objective of the New Economic Paradigm?
To smooth out the volatility in business cycles and achieve stable growth
Which of the following indicators is used to confirm trends that are already in process?
Lagging Indicators
What is the primary role of Provincial Governments in the public sector?
Manage regional issues, funded by both national budget and their own tax revenues
What is the purpose of the Medium-Term Expenditure Framework (MTEF)?
To plan over a three-year period
What is a key objective of the public sector?
To achieve economic equity through progressive taxation and social welfare programs
What is a challenge faced by the public sector?
Inefficiency due to lack of clear performance metrics and accountability
What is the purpose of taxation as a fiscal policy instrument?
To manage economic activity
What is the Laffer Curve related to?
Fiscal policy and taxation
What is the primary goal of economic planning and policymaking?
To understand and analyze business cycles for effective economic planning and policymaking
What is the focus of supply-side policies?
To focus on increasing productivity and efficiency through technological advancements, regulatory reforms, and incentives for industries
What is the primary goal of the Reconstruction and Development Programme (RDP) in South Africa?
To focus on meeting basic needs, developing human resources, building the economy, democratizing state and society
What is the main difference between economic growth and economic development?
Economic growth refers to an increase in a country's real GDP, while economic development refers to improvements in standards of living and income equity
Which indicator measures the average price change over time of goods and services purchased by households?
Consumer Price Index (CPI)
What is the term for the percentage of the labor force that is unemployed but actively seeking employment?
Unemployment Rate
What is the primary goal of the Accelerated and Shared Growth Initiative of South Africa (Asgi-SA)?
To target halving unemployment and poverty by improving average economic growth
What is the value of the South African rand against other currencies that affects trade competitiveness?
Exchange Rate
What is the primary goal of South Africa's export promotion policies?
To promote domestic industries to increase their exports
What is the primary goal of South Africa's National Industrial Policy Framework (NIPF)?
To increase industrial activity, diversify the economy, and enhance regional development
What is the rate at which the South African Reserve Bank lends money to commercial banks, influencing other interest rates across the economy?
Repo Rate
What is the primary goal of South Africa's Industrial Development Zones (IDZs)?
To create industrial hubs that offer incentives and benefits to attract investments
What is the term for the proportion of the Economically Active Population (EAP) that is employed?
Employment Rate
What is the term for the percentage change in the population size over time?
Population Growth
What is the primary focus of South Africa's Integrated Manufacturing Strategy (IMS)?
To promote industrial development, competitiveness, and job creation in the manufacturing sector
What is the term for the comparison of the rate of export prices to import prices?
Terms of Trade
What is the primary goal of South Africa's Spatial Development Initiatives (SDIs)?
To promote economic growth and development in specific regions
What is the primary goal of South Africa's Special Economic Zones (SEZs)?
To create industrial hubs that offer incentives and benefits to attract investments
What is the term for the various aggregates that include currency in circulation and different types of bank deposits?
M1, M2, M3
What is the term for the process of comparing South Africa’s performance with that of other countries to gauge its progress and alignment with global standards?
International Benchmarking
What is one of the key elements of South Africa's industrial strategies aligned with international best practices?
Export promotion
What is the term for the indicators that allow policymakers to identify areas needing intervention and evaluate the impact of current policies?
Economic Indicators
What guides the overall industrial strategy of South Africa?
National Industrial Policy Framework (NIPF)
What is one of the justifications for South Africa's industrial policies?
Economic diversification and job creation
What is the focus of South Africa's Integrated Manufacturing Strategy (IMS)?
Enhancing competitiveness in the manufacturing sector
What is the purpose of South Africa's Special Economic Zones (SEZs)?
To attract foreign investment and stimulate economic activities
What is one of the key elements of South Africa's industrial strategies aligned with international best practices?
All of the above
What is the purpose of South Africa's Spatial Development Initiatives (SDIs)?
To target underdeveloped areas for infrastructure and industrial development
What is one of the challenges facing South Africa's industrial policies?
All of the above
What is one of the indicators used to evaluate the effectiveness of South Africa's industrial strategies?
All of the above
What is the primary goal of South Africa's National Industrial Policy Framework (NIPF)?
To promote economic growth and development
What is the purpose of South Africa's Industrial Development Zones (IDZs)?
To offer incentives like tax breaks and infrastructure support to attract investments
What is the primary function of the circular flow model in an open economy?
To highlight the economic activities among various sectors and their interactions through markets
Which market facilitates the trading of currencies necessary for international trade?
Foreign Exchange Market
What is the term for the total economic output at market prices?
Gross Domestic Product (GDP)
Which sector involves trade activities, where exports add to the economic flow and imports lead to outflows of currency?
Foreign Sector
What type of flows represent the financial transactions for goods and services?
Money Flows
Which sector utilizes labor and resources to produce goods and services?
Firms
What is the primary function of the government sector in the circular flow model?
To collect taxes and inject spending into the economy
What is the name of the market that deals in resources like labor and capital?
Factor Market
What is the primary objective of the New Economic Paradigm?
To achieve stable growth without booms and busts
Which type of indicator confirms trends that are already in process?
Lagging indicators
What is a key objective of the public sector?
To provide structure and essential services
What is a challenge faced by the public sector?
All of the above
What is the purpose of the Medium-Term Expenditure Framework (MTEF)?
To plan over a three-year period
What is a fiscal policy instrument?
Taxation
What is the Laffer Curve related to?
The relationship between taxation and economic growth
What is the primary role of the national government in the public sector?
To handle national affairs like defense and education
What is an example of a supply-side policy?
Regulatory reforms
What is the main goal of forecasting business cycles?
To predict future economic activity
What is the primary goal of South Africa's National Industrial Policy Framework (NIPF)?
To promote economic diversification
What is the focus of the Integrated Manufacturing Strategy (IMS)?
Enhancing competitiveness in the manufacturing sector
What is the purpose of Special Economic Zones (SEZs)?
To promote economic growth through investments
What is included in the calculation of Gross National Income (GNI)?
Income earned by a country's residents, including from abroad
What is the goal of South Africa's industrial policies?
To promote economic diversification and job creation
What is the primary purpose of the multiplier effect?
To reveal how initial increases in spending lead to a more significant overall increase in economic output
What is one of the key elements of South Africa's industrial strategies aligned with international best practices?
All of the above
What is the phase of the business cycle where economic indicators decline?
Contraction
What is the purpose of Spatial Development Initiatives (SDIs)?
To target underdeveloped areas for infrastructure and industrial development
What is one of the challenges facing South Africa's industrial policies?
All of the above
Which theory suggests that business cycles are driven by changes in aggregate demand?
Keynesian Theory
What is one of the indicators used to evaluate the effectiveness of South Africa's industrial strategies?
All of the above
What is the primary tool used in monetary policy to stabilize economic activity?
Interest rates
What is the purpose of fiscal policy in times of economic downturn?
To increase government spending and reduce taxes
What is the focus of South Africa's National Research and Development Strategy (NRDS)?
To boost innovation across industries
What is the purpose of Industrial Development Zones (IDZs)?
To offer incentives like tax breaks and infrastructure support
What is the term for the marginal propensity to save?
MPS
What is the main focus of the Reconstruction and Development Programme (RDP) in South Africa?
Meeting basic needs, developing human resources, building the economy, and democratizing state and society
What is the focus of the three and four-sector models?
Government and foreign transactions
What is the primary difference between economic growth and economic development?
Economic growth refers to an increase in real GDP, while economic development includes improvements in standards of living
What is the primary objective of understanding business cycles?
To plan and forecast economic policy, business strategy, and investment decisions
What is the phase of the business cycle where economic indicators show significant growth?
Expansion
What is the primary goal of the Accelerated and Shared Growth Initiative of South Africa (Asgi-SA)?
Halving unemployment and poverty by improving average economic growth
What is the focus of South Africa's Industrial Development Zones (IDZs)?
Creating industrial clusters
What is the primary goal of South Africa's export promotion policies?
Supporting domestic industries to increase their exports
What is the primary goal of import substitution?
Encouraging the production of goods domestically that would otherwise be imported
What is the main difference between the North and South in terms of economic stability?
The North has higher levels of economic stability and access to resources
What is the focus of South Africa's National Industrial Policy Framework (NIPF)?
Increasing industrial activity and diversifying the economy
What is the primary goal of South Africa's Spatial Development Initiatives (SDIs)?
Enhancing regional development
What is the primary goal of South Africa's New Growth Path (NGP)?
Job creation and identifying job drivers
What is the primary goal of government spending?
To direct spending towards public goods and services that encourage economic growth and stability
What does the Laffer Curve illustrate?
The relationship between tax rates and tax revenue
What is a drawback of administered prices?
They can lead to shortages or surpluses
What is the primary goal of protectionism?
To protect local businesses and jobs from foreign competition
What is an argument for free trade?
It can promote specialization and economies of scale
What is the infant industry argument?
Protection of emerging domestic industries that are not yet competitive enough to withstand international competition
What is the purpose of South Africa's export promotion policies?
To encourage local firms to export their goods and increase participation in the global market
What is the purpose of import substitution?
To encourage local production of goods that were previously imported to strengthen domestic industries and reduce dependency on foreign goods
What is a challenge faced by the public sector?
Efficiency and accountability
What is the key objective of the public sector?
To achieve social and economic objectives
What does the Consumer Price Index (CPI) measure?
The average price change over time of goods and services purchased by households
What is the Economically Active Population (EAP)?
All persons within the working age group (15-65 years) available to supply labor for production
What is the Repo Rate?
The rate at which the South African Reserve Bank lends money to commercial banks
What does the Terms of Trade compare?
The rate of export prices to import prices
What does the M1 aggregate include?
Currency in circulation and different types of bank deposits
What is the purpose of demographic indicators like Population Growth?
To track changes in population size and its impact on demand for goods, services, and infrastructure
What do Infant and Under-5 Mortality Rates indicate?
The health environment and effectiveness of healthcare systems
What is the purpose of social indicators like Enrolment Rates?
To measure the percentage of eligible children attending schools and its impact on future workforce skills and economic growth
What is the purpose of international comparisons?
To gauge South Africa's progress and alignment with global standards, impacting foreign investment and economic policies
What is the purpose of economic and social indicators in policy formulation?
To identify areas needing intervention and evaluate the impact of current policies
What is the primary objective of the New Economic Paradigm?
To promote sustainable economic growth
What is the primary focus of the Multiplier Effect?
Revealing how initial increases in spending lead to a more significant overall increase in economic output
What is the primary goal of government spending?
To promote economic growth and stability.
What is the term for the prices that reflect the actual market value of goods and services?
Market Prices
What type of policy focuses on increasing productivity and efficiency?
Supply-side policy
What is the purpose of leading indicators in forecasting business cycles?
To predict future economic activity
What is the primary function of the firms sector in the circular flow model?
Utilizing labor and resources to produce goods and services
What does the Laffer Curve illustrate?
The relationship between tax rates and tax revenue.
Which of the following is an endogenous factor influencing business cycles?
Changes in consumer confidence
What is a disadvantage of administered prices?
They can lead to shortages or surpluses.
What is the primary objective of monetary policy?
To stabilize economic activity through control of money supply and interest rates
What is the primary focus of the goods market in the circular flow model?
Trading consumer goods and services
What is the primary role of the national government in the public sector?
Handling national affairs
Which theory suggests that business cycles are due to changes in aggregate demand?
Keynesian Theory
What is the primary function of the financial market in the circular flow model?
Managing the flow of money, including savings and investments
What is the primary goal of protectionism?
To restrict international trade and protect local industries.
What is a major problem with public sector provisioning?
Inefficiency due to lack of clear performance metrics
What is an argument for free trade?
It leads to specialization and economic efficiency.
What is the phase of the business cycle characterized by a decline in economic activity?
Contraction
What is the purpose of the Medium-Term Expenditure Framework (MTEF)?
To plan public sector budgets over a three-year period
What is the term for the total economic output at market prices?
Gross Domestic Product (GDP)
What is a fiscal policy instrument?
Taxation
What is the infant industry argument?
Protecting emerging domestic industries from foreign competition.
What type of flows represent the financial transactions for goods and services in the circular flow model?
Money Flows
What is the formula for the multiplier in a simple two-sector model?
k = 1 / (1 - MPC)
What is the primary function of the households sector in the circular flow model?
Providing labor and resources to the economy
What is the primary role of government in fiscal policy?
To stabilize economic activity through government spending and taxation
What is the primary goal of South Africa's export promotion policies?
To increase participation in the global market.
What is the Laffer Curve related to?
The relationship between taxation and economic growth
What is the term for the lowest point of a business cycle?
Trough
What is the primary function of the foreign sector in the circular flow model?
Involved in trade activities, where exports add to the economic flow
What is the purpose of import substitution?
To reduce dependency on imports.
What is the primary goal of government spending?
To promote economic growth
What is the relationship between the multiplier effect and additional spending in the circular flow model?
The multiplier effect captures the extent to which additional spending can amplify economic activity
What is the term for the highest point of a business cycle?
Peak
What is a challenge faced by the public sector?
Efficiency and accountability.
What is the focus of supply-side policies?
Improving productivity and efficiency
What is the primary role of the national government in the public sector?
To provide services that are not suitable for private sector delivery.
What is the primary focus of South Africa's economic growth and development policies?
Fostering economic growth and development
What is the difference between economic growth and economic development?
Economic growth refers to an increase in GDP, while economic development refers to improvements in standards of living
What is the primary goal of the Reconstruction and Development Programme (RDP) in South Africa?
Meeting basic needs
What is the primary goal of the Growth, Employment and Redistribution (GEAR) strategy in South Africa?
Aiming at market-led growth, fiscal and monetary discipline, and enhancing investor confidence
What is the primary goal of the Accelerated and Shared Growth Initiative of South Africa (Asgi-SA)?
Halving unemployment and poverty by improving average economic growth
What is the primary focus of the New Growth Path (NGP) in South Africa?
Job creation and identifying job drivers
What is the primary goal of South Africa's industrial policies?
Increasing industrial activity, diversifying the economy, and enhancing regional development
What is the primary goal of the demand-side approach to economic growth?
Increasing government expenditure and redistributing income
What is the primary goal of the supply-side approach to economic growth?
Improving the quality of the labor force, managing and using natural resources efficiently, and accumulating capital goods
What is the primary difference between the North and the South in terms of economic development?
The North is more developed, while the South is less developed
What is the primary goal of South Africa's National Industrial Policy Framework (NIPF)?
To guide the overall industrial strategy of South Africa
What is the focus of South Africa's Integrated Manufacturing Strategy (IMS)?
To enhance competitiveness in the manufacturing sector
What is the purpose of South Africa's Special Economic Zones (SEZs)?
To offer incentives to attract businesses and stimulate economic activities
What is one of the key elements of South Africa's industrial strategies aligned with international best practices?
Focusing on sustainable industrial practices
What is the purpose of South Africa's Spatial Development Initiatives (SDIs)?
To target underdeveloped areas for infrastructure and industrial development
What is one of the challenges facing South Africa's industrial policies?
Implementation gaps
What is one of the indicators used to evaluate the effectiveness of South Africa's industrial strategies?
All of the above
What is the purpose of South Africa's Industrial Development Zones (IDZs)?
To offer incentives like tax breaks and infrastructure support
What is one of the key aspects of South Africa's industrial development policies?
Enhancing regional development
What is the justification for South Africa's industrial policies?
All of the above
What does the Consumer Price Index (CPI) measure?
The average price change of goods and services purchased by households
What is the Economically Active Population (EAP)?
All persons within the working age group (15-65 years) available to supply labor for production
What is the purpose of the Repo Rate?
To influence other interest rates across the economy
What do the M1, M2, and M3 aggregates include?
Currency in circulation and different types of bank deposits
What is the Infant Mortality Rate an indicator of?
The overall health and longevity of the population
What is the purpose of international comparisons?
To gauge South Africa's progress and alignment with global standards
What is the use of economic and social indicators in policy formulation?
To identify areas needing intervention and evaluate the impact of current policies
What is the Term of Trade?
A comparison of the rate of export prices to import prices
What is the purpose of enrollment rates in education?
To impact future workforce skills and economic growth
What is the purpose of access to basic services indicators?
To evaluate the quality of life and infrastructural development
Wat is die hoofdoel van die sirkulerende vloei-model?
Om die interaksie tussen verskillende sektore in 'n geslote ekonomie te illustreer.
Watter mark gespecialiseer in die verkoop van verbruikersgoedere en dienste?
Goeie en dienstemark
Watter sektor verleen arbeid en hulpbronne en ontvang inkomste vir verbruik, spaar en belasting?
Huishoudings
Watter metode word gebruik om die totale ekonomiese uitset van 'n land te meet?
Gross Domestic Product (GDP)
Watter mark bestuur die geldvloei, insluitend spaar en beleggings, via instellings soos banke?
Finansiële mark
Watter faktor het 'n invloed op die ekonomie deur verandering in uitgawe?
Die multiplier-effek
Watter sektor is verantwoordelik vir die inkomste-injektie in die ekonomie?
Regering
Watter twee tipes vloeie is belangrik in die sirkulerende vloei-model?
Realvloeie en geldvloeie
Wat verteenwoordig die GNI (Bruto Nasionale Inkomste)?
Al die inkomste.mdlende deur 'n land se burgers, aangepas vir inkomste ontvang vanaf die buiteland.
Watter faktor beïnvloed die aanpasbaarheid van die ekonomie?
Die verandering in die kolektiewe gedrag van verbruikers en sakeonderskeppers.
Watter teorie stel dat besigheidssiklusse deur kolektiewe gedrag van verbruikers en sakeonderskeppers veroorsaak word?
Keynesiaanse teorie.
Wat is die doel van die monetêre beleid?
Om die ekonomiese aktiwiteit te stabiliseer.
Wat is die formule vir die vermenigvuldiger in 'n eenvoudige twee-sektor-model?
k = 1 / (1 - MPC)
Watter fase van die besigheidssiklus word gekenmerk deur 'n toename in ekonomiese aktiwiteit?
Uitbreiding.
Watter faktor kan 'n besigheidssiklus beïnvloed?
Die natuurrampe.
Wat is die doel van die fiskale beleid?
Om die ekonomiese aktiwiteit te stabiliseer.
Watter is 'n voorbeeld van 'n eksogene faktor wat 'n besigheidssiklus beïnvloed?
Natuurrampe.
Wat is die hoogste punt van die besigheidssiklus?
Die piek.
Wat is die doel van die Suid-Afrikaanse Industriële Ontwikkelingsbeleid?
Om die industriële aktiwiteit te verhoog en die ekonomie te diversifiseer
Watter benadering tot ekonomiese groei fokus op die verbetering van die kwaliteit van die arbeidsmag?
Aanbod-kant benadering
Wat is die doel van die Reconstruction and Development Programme (RDP) in Suid-Afrika?
Om die basiese behoeftes van die bevolking te vervul
Wat is die hoofdoel van die Growth, Employment and Redistribution (GEAR) beleid?
Om die markgeleide groei te bevorder
Watter een van die volgende is 'n voorbeeld van 'n aanbod-kant benadering tot ekonomiese groei?
Verbeterring van die kwaliteit van die arbeidsmag
Wat is die hoofdoel van die New Growth Path (NGP) in Suid-Afrika?
Om die werksgeleentheid te skep
Wat is die hoofdoel van die Accelerated and Shared Growth Initiative of South Africa (Asgi-SA)?
Om die helfte van die armoede en werkloosheid te verminder
Watter een van die volgende is 'n kenmerk van die Suid-Afrikaanse ekonomiese groei en ontwikkeling?
Die bevordering van die menslike hulpbronne
Wat is die hoofdoel van die South African Customs Union (SACU)?
Om die handel tussen lande te bevorder
Wat is die verskil tussen ekonomiese groei en ekonomiese ontwikkeling?
Ekonomiese groei verwys na die verhoging van die BBP, terwyl ekonomiese ontwikkeling verwys na die verhoging van die lewensstandaard
Watter indeks meet die gemiddelde prysverandering oor tyd van goedere en dienste wat deur huishoudings gekoop word?
Verbruikersprysindeks (CPI)
Watter is die doel van die repo-koers?
Om die rentekoers te beheer
Watter is 'n voorbeeld van 'n sosiale indikator?
Bevolkingsgroei
Watter is die doel van die ekonomie se sosiale indikatore?
Om die welvaart van die bevolking te evalueer
Watter is 'n voorbeeld van 'n ekonomiese indikator?
Inflasiekoers
Watter is die doel van die wisselkoers?
Om die handelkompetensie te beïnvloed
Watter is die doel van die M1, M2, M3?
Om die likiditeit in die ekonomie te meet
Watter is die doel van die ekonomie se indikatore?
Om beleid te formuleer en die effektiwiteit van beleid te evalueer
Watter is die doel van internasionale vergelykings?
Om Suid-Afrika se prestasie met andere lande te vergelyk
Watter is die doel van die geldvoorsiening?
Om die likiditeit in die ekonomie te verhoog
Watter doelwit van die Nuwe Ekonomiese Paradigma?
Om die vlugtheid in besigheidsiklusse te vermy
Watter begrip word gebruik om die toestand van die ekonomie te beskryf?
GDP
Watter tipe beleid word gebruik om die ekonomie te stabiliseer?
Fiskale beleid
Watter is 'n voorbeeld van 'n loodende indikator?
Aandelepryse
Watter is die hoofdoel van die openbare sektor?
Om dienste te verskaf
Watter is 'n probleem met die openbare sektor se berekening?
Onvermoë om behoeftes te assesseer
Watter is die hoofdoel van die Medium-Term Expenditure Framework (MTEF)?
Om die begroting oor 'n drie-jaar periode te beplan
Watter is 'n fiscale beleidsinstrument?
Belasting
Watter is die Laffer-Kurwe verwant aan?
Belasting
Watter is die hoofdoel van ekonomiese beplanning en beleidmaak?
Om 'n stabiele ekonomie te creeer
Wat is die hoofdoel van regeringsbesteding?
Om openbare goedere en dienste te verskaf
Waarvoor word die Laffer-kurwe gebruik?
Om die verhouding tussen belastingtariewe en belastinginkomste te illustreer
Watter is een van die redes vir die mislukking van die openbare sektor?
Oormatige burokrasie
Watter is een van die voordele van vrye handel?
Specialisering
Watter is die doel van Suid-Afrika se uitvoerbevorderingbeleid?
Om uitvoer van plaaslike goedere te verhoog
Watter is een van die argumente vir proteksionisme?
Al die bogenoemde
Watter is een van die uitdagings wat die openbare sektor in die gesig staar?
Oormatige burokrasie
Watter is die hoofdoel van die publieke sektor in Suid-Afrika?
Om openbare goedere en dienste te verskaf
Watter is een van die voordele van subsidies?
Om lokale industrieë te beskerm
Watter is die doel van Suid-Afrika se invoerbevorderingbeleid?
Om invoer van plaaslike goedere te verhoog
Watter is die hoofdoel van Suid-Afrika se Nasionale Industriële Beleidsraamwerk (NIPF)?
Om die nasionale ekonomie te diversifiseer
Wat is die hoofdoel van Suid-Afrika se Industrial Policy Action Plans (IPAP)?
Om spesifieke aksies uit te voer om die NIPF te implementeer
Watter is een van die redes vir Suid-Afrika se industriele beleide?
Om die werkloosheid te verminder
Watter is die fokus van Suid-Afrika se Geïntegreerde Vervaardigingsstrategie (IMS)?
Om die vervaardigingsproses te verbeter
Watter is die doel van Suid-Afrika se Spesiale Ekonomiese Sones (SEZs)?
Om die ekonomiese aktiwiteite te stimuleer
Watter is een van die uitdagings wat Suid-Afrika se industriele beleide in die gesig staar?
Om die implementeringsgap te oorbrug
Watter is een van die elemente van Suid-Afrika se industriele strategieë wat met internasionale beste praktyke verwant is?
Om die duurzaamheid van industriele praktyke te verbeter
Watter is die doel van Suid-Afrika se Ruimtelike Ontwikkelingsiniciatiewe (SDIs)?
Om die onderontwikkelde gebiede te ontwikkel
Watter is een van die indikatore wat gebruik word om die effektiwiteit van Suid-Afrika se industriele strategieë te evalueer?
Om die ekonomiese groei te meet
Watter is die fokus van Suid-Afrika se Nasionale Navorsing- en Ontwikkelingsstrategie (NRDS)?
Om die innovasie te verhoog
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