Nov P1 Med

What does GNI (Gross National Income) account for?

Income earned by the government only
All income earned by a country's residents, adjusting for income received from abroad (correct)
Only income earned within the country
Income earned by foreigners within the country

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

k = 1 / (1 - MPC) (correct)
k = 1 - MPC
k = MPC / (1 - MPC)
k = MPC

What is the phase of the business cycle characterized by an increase in economic activities?

Expansion (correct)
Contraction
Peak
Trough

What is the lowest point of the business cycle?

Trough (D) Signup and view all the answers

What is an example of an exogenous factor influencing business cycles?

Natural disasters (A) Signup and view all the answers

Which theory suggests that business cycles are driven by external shocks and normal market processes will always tend toward equilibrium?

Classical and Neoclassical Theories (D) Signup and view all the answers

What is the primary tool of monetary policy?

Interest rates (C) Signup and view all the answers

What is the purpose of fiscal policy?

To stabilize economic activity (B) Signup and view all the answers

What is the phase of the business cycle characterized by a decline in economic indicators?

Contraction (C) Signup and view all the answers

What is the term for the highest point of the business cycle?

Peak (A) Signup and view all the answers

What is the primary objective of the New Economic Paradigm?

To smooth out the volatility in business cycles and achieve stable growth (D) Signup and view all the answers

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

Regulating aggregate demand through fiscal stimuli or monetary adjustments (C) Signup and view all the answers

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

To predict future economic activity (D) Signup and view all the answers

What is the primary role of the public sector in the economy?

To provide essential services that are not profit-driven (C) Signup and view all the answers

What is a challenge faced by the public sector in terms of efficiency?

Lack of clear performance metrics and accountability (D) Signup and view all the answers

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

To plan over a three-year period, allowing for more predictable and strategic allocation of resources (A) Signup and view all the answers

What is the purpose of fiscal policy instruments in the economy?

To manage economic activity through taxation and government expenditure (A) Signup and view all the answers

Which of the following is an objective of the public sector in terms of economic growth?

To promote sustainable growth through various sectoral supports (C) Signup and view all the answers

What is the purpose of the Laffer Curve in fiscal policy?

To show the relationship between taxation and economic growth (D) Signup and view all the answers

What is a challenge faced by state-owned enterprises in the public sector?

Lack of competition and accountability (C) Signup and view all the answers

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

To encourage economic growth and stability (D) Signup and view all the answers

What does the Laffer Curve illustrate?

The relationship between tax rates and tax revenue (C) Signup and view all the answers

What is a potential consequence of price controls set below market equilibrium?

Shortage of goods (B) Signup and view all the answers

What is the primary argument in favor of protectionism?

Safeguarding jobs against foreign competition (B) Signup and view all the answers

What is a benefit of free trade according to the comparative advantage argument?

Nations can focus on the production of goods for which they have a comparative advantage (C) Signup and view all the answers

What is the primary goal of South Africa's export promotion policies?

Encouraging local firms to export their goods (B) Signup and view all the answers

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

Inefficient outcomes (D) Signup and view all the answers

What is the primary objective of import substitution policies?

Encouraging local production of goods that were previously imported (C) Signup and view all the answers

What is a potential consequence of bureaucracy in the public sector?

Excessive bureaucracy stifling innovation and responsiveness (D) Signup and view all the answers

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

Managing resources and providing services that are not suitable for private sector delivery (D) Signup and view all the answers

What is the primary goal of the National Industrial Policy Framework (NIPF) in South Africa?

To guide the overall industrial strategy of South Africa (B) Signup and view all the answers

What is the main objective of Industrial Policy Action Plans (IPAP)?

To detail specific actions to implement the National Industrial Policy Framework (NIPF) (C) Signup and view all the answers

What is the main focus of the Integrated Manufacturing Strategy (IMS)?

To enhance competitiveness in the manufacturing sector (B) Signup and view all the answers

What is the main purpose of Special Economic Zones (SEZs)?

To offer incentives to attract businesses and stimulate economic activities (C) Signup and view all the answers

Why is economic diversification a key justification for South Africa's industrial policies?

To reduce dependence on traditional sectors like mining (A) Signup and view all the answers

What is a key aspect of South Africa's industrial strategies aligning with international best practices?

Focusing on sustainable industrial practices (C) Signup and view all the answers

What is the primary goal of Spatial Development Initiatives (SDIs)?

To promote regional development through infrastructure development (D) Signup and view all the answers

What is a key challenge facing South Africa's industrial policies?

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

What is a key aspect of evaluating the effectiveness of South Africa's industrial strategies?

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

What is the primary purpose of South Africa's economic and social indicators?

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

What is the primary purpose of the Consumer Price Index (CPI)?

To measure the average price change of goods and services (A) Signup and view all the answers

What is the Employment Rate?

The proportion of the Economically Active Population that is employed (C) Signup and view all the answers

What is the Repo Rate?

The rate at which the South African Reserve Bank lends money to commercial banks (D) Signup and view all the answers

What is the primary use of M1, M2, and M3?

To measure the liquidity available in the economy (D) Signup and view all the answers

What is the primary purpose of tracking Infant and Under-5 Mortality Rates?

To indicate the effectiveness of healthcare systems (C) Signup and view all the answers

What is the primary purpose of tracking Population Growth?

To track changes in population size, which impacts demand for goods, services, and infrastructure (C) Signup and view all the answers

What is the primary purpose of tracking Housing Development?

To measure the government's ability to provide adequate housing, reflecting on economic stability and quality of life (A) Signup and view all the answers

What is the primary purpose of tracking Access to Basic Services?

To track the availability of essential services such as electricity, water, and sanitation (C) Signup and view all the answers

What is the primary purpose of International Comparisons?

To compare South Africa's performance with that of other countries, highlighting areas of strength and those requiring improvement (B) Signup and view all the answers

What is the primary use of economic and social indicators?

To identify areas needing intervention and evaluate the impact of current policies (A) Signup and view all the answers

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

To meet basic needs, develop human resources, and build the economy (D) Signup and view all the answers

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 (C) Signup and view all the answers

What is the main objective of the Export Promotion strategy?

To support domestic industries to increase their exports (A) Signup and view all the answers

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 (B) Signup and view all the answers

What is the main characteristic of the North/South divide?

A significant disparity exists between developed and developing countries in terms of income levels, economic stability, and access to resources (B) Signup and view all the answers

What is the main focus of Supply-side Approach to Economic Growth?

Improving the quality of the labor force and accumulating capital goods (D) Signup and view all the answers

What is the main goal of Import Substitution strategy?

To encourage domestic production and retain economic benefits within the country (A) Signup and view all the answers

What is the main focus of South Africa's industrial policies?

To increase industrial activity, diversify the economy, and enhance regional development (A) Signup and view all the answers

What is the main difference between Growth, Employment and Redistribution (GEAR) and Reconstruction and Development Programme (RDP)?

GEAR focuses on market-led growth, while RDP focuses on meeting basic needs (A) Signup and view all the answers

What is the main goal of the Demand-side Approach to Economic Growth?

To increase government expenditure, redistribute income, and encourage import substitution (D) Signup and view all the answers

Which sector of the economy provides labor and resources?

Households (A) Signup and view all the answers

What is the main purpose of the Foreign Exchange Market?

To handle the trading of currencies (C) Signup and view all the answers

What type of flow involves the movement of goods and services?

Real Flows (A) Signup and view all the answers

What is GDP an example of?

National Account Aggregate (C) Signup and view all the answers

Which market deals in resources like labor and capital?

Factor Market (D) Signup and view all the answers

What is the main function of the government in the circular flow model?

To collect taxes and inject spending into the economy (B) Signup and view all the answers

What is the multiplier effect related to?

The extent to which additional spending can amplify economic activity (C) Signup and view all the answers

Which market trades consumer goods and services?

Goods Market (C) Signup and view all the answers

What is the purpose of the multiplier effect in economics?

To measure the impact of initial spending on overall economic output (C) Signup and view all the answers

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

Contraction (B) Signup and view all the answers

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

Keynesian Theory (B) Signup and view all the answers

What is the primary tool of monetary policy?

Interest rates and control of money supply (B) Signup and view all the answers

What is the name of the phase of the business cycle characterized by an increase in economic activities?

Expansion (A) Signup and view all the answers

What is the term for the highest point of the business cycle?

Peak (A) Signup and view all the answers

What is the name of the theory that focuses on the role of technological innovation in causing business cycles?

Schumpeterian Theory (B) Signup and view all the answers

What is the primary objective of fiscal policy?

To stabilize economic activity (C) Signup and view all the answers

What is the term for the lowest point of the business cycle?

Trough (A) Signup and view all the answers

What is the name of the model that focuses on household and firm interactions?

Two-Sector Model (A) Signup and view all the answers

Which economic indicator measures the average price change over time of goods and services purchased by households?

Consumer Price Index (CPI) (D) Signup and view all the answers

What is the primary purpose of tracking the Economically Active Population (EAP)?

To track the number of people available to supply labor for production (B) Signup and view all the answers

What is the primary purpose of tracking the Exchange Rate?

To track the value of the South African rand against other currencies (A) Signup and view all the answers

What is the primary purpose of tracking the Terms of Trade?

To compare the rate of export prices to import prices (A) Signup and view all the answers

What is the primary purpose of tracking the Repo Rate?

To track the rate at which the South African Reserve Bank lends money to commercial banks (A) Signup and view all the answers

What is the primary purpose of tracking the Life Expectancy?

To track the overall health and longevity of the population (C) Signup and view all the answers

What is the primary purpose of tracking the Enrolment Rates?

To track the percentage of eligible children attending schools (D) Signup and view all the answers

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

To encourage economic growth and stability (A) Signup and view all the answers

What is the primary purpose of tracking the Housing Development?

To track the government's ability to provide adequate housing (A) Signup and view all the answers

What is the primary purpose of International Comparisons?

To compare South Africa's performance internationally (D) Signup and view all the answers

What is the consequence of price controls set below market equilibrium?

Shortages (C) Signup and view all the answers

What is the primary argument in favor of protectionism?

Protecting local businesses and jobs from foreign competition (A) Signup and view all the answers

What is the primary use of economic and social indicators?

To identify areas needing intervention and evaluate the impact of current policies (A) Signup and view all the answers

What is the benefit of free trade according to the comparative advantage argument?

Specialization and economies of scale (C) Signup and view all the answers

What is the primary goal of South Africa's export promotion policies?

Increasing participation in the global market (B) Signup and view all the answers

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

Inefficient outcomes (C) Signup and view all the answers

What is the primary objective of import substitution policies?

Reducing dependency on imports (A) Signup and view all the answers

What is the key objective of the New Economic Paradigm?

To smooth out the volatility in business cycles and achieve stable growth (A) Signup and view all the answers

What is the primary consequence of bureaucracy in the public sector?

Stifling innovation and responsiveness (C) Signup and view all the answers

What type of indicators confirm trends that are already in process?

Lagging indicators (B) Signup and view all the answers

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

Managing resources and providing services that are not suitable for private sector delivery (D) Signup and view all the answers

What is the primary function of the national government in the public sector?

To handle national affairs like defense and education (A) Signup and view all the answers

What is the primary objective of the Laffer Curve?

To illustrate the relationship between tax rates and tax revenue (C) Signup and view all the answers

What is a major challenge faced by state-owned enterprises in the public sector?

Inefficiency due to lack of competition and accountability (C) Signup and view all the answers

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

To plan for a three-year period (C) Signup and view all the answers

What is the primary purpose of taxation as a fiscal policy instrument?

To regulate aggregate demand (D) Signup and view all the answers

What is the primary role of the public sector in the economy?

To provide essential services (A) Signup and view all the answers

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

Lack of clear performance metrics (D) Signup and view all the answers

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

To promote sustainable growth (A) Signup and view all the answers

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

To illustrate the relationship between taxation and economic growth (A) Signup and view all the answers

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

Meeting basic needs and developing human resources (D) Signup and view all the answers

Which of the following approaches to economic growth focuses on improving the quality of the labor force and accumulating capital goods?

Supply-side approach (D) Signup and view all the answers

What is a key characteristic of economic development, as opposed to economic growth?

An improvement in standards of living and income equity (C) Signup and view all the answers

What is the primary goal of South Africa's industrial policies, such as the National Industrial Policy Framework (NIPF)?

Diversifying the economy and increasing industrial activity (D) Signup and view all the answers

What is a key challenge posed by the North/South divide in terms of economic development?

A significant disparity in income levels and economic stability (B) Signup and view all the answers

What is the primary goal of the National Industrial Policy Framework (NIPF) in South Africa?

To guide the overall industrial strategy of South Africa (C) Signup and view all the answers

What is a key aspect of the Accelerated and Shared Growth Initiative of South Africa (Asgi-SA)?

A target of halving unemployment and poverty by improving average economic growth (C) Signup and view all the answers

What is the primary purpose of South Africa's trade protocols and relationships with major economies like China and the EU?

To facilitate both protectionist and free trade measures (B) Signup and view all the answers

Which of the following is a key justification for South Africa's industrial policies?

Reducing dependence on traditional sectors (C) Signup and view all the answers

What is the primary focus of the Integrated Manufacturing Strategy (IMS)?

Enhancing competitiveness in the manufacturing sector (B) Signup and view all the answers

What is a key aspect of the Growth, Employment and Redistribution (GEAR) strategy in South Africa?

Aims at market-led growth, fiscal and monetary discipline, and enhancing investor confidence (A) Signup and view all the answers

What is the main objective of Industrial Policy Action Plans (IPAP)?

To detail specific actions to implement the NIPF (D) Signup and view all the answers

What is the primary goal of the New Growth Path (NGP) strategy in South Africa?

To focus on job creation and identifying job drivers like infrastructure and agriculture (D) Signup and view all the answers

What is the primary purpose of Special Economic Zones (SEZs)?

To offer incentives to attract businesses and stimulate economic activities (D) Signup and view all the answers

What is a key aspect of the evaluation of South Africa's economic growth and development strategies?

An evaluation of their effectiveness in reducing poverty, inequality, and unemployment (D) Signup and view all the answers

What is a key aspect of South Africa's industrial strategies aligning with international best practices?

Ensuring that policy implementation is transparent and accountable (D) Signup and view all the answers

What is the primary goal of Spatial Development Initiatives (SDIs)?

To target underdeveloped areas for infrastructure and industrial development (D) Signup and view all the answers

What is a key challenge facing South Africa's industrial policies?

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

What is a key aspect of evaluating the effectiveness of South Africa's industrial strategies?

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

What is the primary purpose of South Africa's economic and social indicators?

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

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

To facilitate trade activities and exchange currencies (A) Signup and view all the answers

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

Gross Domestic Product (D) Signup and view all the answers

Which market facilitates the trading of currencies necessary for international trade?

Foreign Exchange Market (C) Signup and view all the answers

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

To provide labor and resources, receiving income (D) Signup and view all the answers

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

Real Flows (D) Signup and view all the answers

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

To collect taxes and inject spending into the economy (B) Signup and view all the answers

What is the term for the financial transactions for goods and services in the circular flow model?

Money Flows (C) Signup and view all the answers

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

To utilize labor and resources to produce goods and services (B) Signup and view all the answers

What does the Producer Price Index (PPI) measure?

The average movement of selling prices from domestic production over time (C) Signup and view all the answers

What is the primary goal of the New Economic Paradigm?

To achieve stable growth without booms and busts (B) Signup and view all the answers

What is the main difference between the two-sector and three/four-sector models in the multiplier effect?

The inclusion of government and foreign transactions (D) Signup and view all the answers

What is the Economically Active Population (EAP)?

All persons within the working age group (15-65 years) available to supply labor for production (D) Signup and view all the answers

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

The changes in aggregate demand (D) Signup and view all the answers

What does the Repo Rate influence?

Other interest rates across the economy (A) Signup and view all the answers

What type of indicators confirm trends that are already in process?

Lagging indicators (D) Signup and view all the answers

What does M1, M2, and M3 represent?

Various aggregates that include currency in circulation and different types of bank deposits (A) Signup and view all the answers

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

To stabilize economic activity (D) Signup and view all the answers

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

To operate in the public interest (D) Signup and view all the answers

What does the Infant and Under-5 Mortality Rates measure?

Indicators of the health environment and effectiveness of healthcare systems (B) Signup and view all the answers

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

A decline in economic indicators (A) Signup and view all the answers

What is a challenge faced by the public sector in terms of accountability?

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

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

To plan over a three-year period (B) Signup and view all the answers

What does the Urbanisation Rate indicate?

The movement of the population towards urban areas, affecting economic development patterns (B) Signup and view all the answers

What is the primary role of government in the Keynesian theory?

To smooth out business cycles through fiscal and monetary policies (C) Signup and view all the answers

What is the purpose of International Comparisons?

To compare South Africa's performance with that of other countries, highlighting areas of strength and those requiring improvement (D) Signup and view all the answers

What is the primary objective of fiscal policy instruments?

To adjust tax rates to manage economic activity (C) Signup and view all the answers

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

To stimulate demand and pull the economy out of a recession (D) Signup and view all the answers

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

The role of technological innovation (B) Signup and view all the answers

What is the primary use of economic and social indicators?

To identify areas needing intervention and evaluate the impact of current policies (B) Signup and view all the answers

What is the primary objective of the public sector in terms of income distribution?

To strive for economic equity through progressive taxation (D) Signup and view all the answers

What does the Exchange Rate affect?

The competitiveness of trade (B) Signup and view all the answers

What is a challenge faced by state-owned enterprises in the public sector?

Inefficiency due to lack of competition (B) Signup and view all the answers

What is the characteristic of the peak point of a business cycle?

The highest point of economic activity (B) Signup and view all the answers

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

To promote sustainable growth through various sectoral supports (C) Signup and view all the answers

What is the primary purpose of tracking Population Growth?

To track changes in population size, which impacts demand for goods, services, and infrastructure (D) Signup and view all the answers

What is the primary difference between endogenous and exogenous factors influencing business cycles?

Endogenous factors arise from within the economic system, while exogenous factors are external influences (D) Signup and view all the answers

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

To illustrate the relationship between taxation and economic growth (A) Signup and view all the answers

What is the primary purpose of understanding business cycles?

To plan and forecast in economic policy, business strategy, and investment decisions (C) Signup and view all the answers

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

To facilitate trade activities, including exports and imports (D) Signup and view all the answers

What type of market deals in resources like labor and capital?

Factor Market (C) Signup and view all the answers

What is measured by the Gross Domestic Product (GDP)?

The total economic output at market prices (D) Signup and view all the answers

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

Real Flows involve the movement of goods and services, while Money Flows involve the financial transactions for those goods and services (C) Signup and view all the answers

What is the role of households in the circular flow model?

To provide labor and resources, receiving income used for consumption, savings, and taxes (D) Signup and view all the answers

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

To manage the flow of money, including savings and investments (D) Signup and view all the answers

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

To utilize labor and resources to produce goods and services (B) Signup and view all the answers

What is the role of the Government in the circular flow model?

To collect taxes and inject spending into the economy through public services and infrastructure (A) Signup and view all the answers

What is the main objective of the New Economic Paradigm?

To smooth out the volatility in business cycles and achieve stable growth (B) Signup and view all the answers

What type of indicators confirm trends that are already in process?

Lagging indicators (D) Signup and view all the answers

What is the primary role of the public sector in the economy?

To provide essential services not driven by profit (B) Signup and view all the answers

What is a challenge faced by state-owned enterprises in the public sector?

Lack of competition and accountability (A) Signup and view all the answers

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

To allocate resources over a three-year period (D) Signup and view all the answers

What is the primary instrument of fiscal policy?

Taxation (D) Signup and view all the answers

What is the primary objective of demand-side policies?

To regulate aggregate demand through fiscal stimuli (D) Signup and view all the answers

What is the primary objective of supply-side policies?

To increase productivity and efficiency (A) Signup and view all the answers

What is the primary objective of forecasting business cycles?

To predict future economic trends (A) Signup and view all the answers

What is the primary benefit of understanding business cycles?

To mitigate the adverse effects of downturns and capitalize on periods of growth (C) Signup and view all the answers

What is the primary reason for government intervention in the public sector?

To provide public goods and services that are not suitable for private sector delivery (D) Signup and view all the answers

What is the Laffer Curve used to illustrate?

The relationship between tax rates and tax revenue (D) Signup and view all the answers

What is a potential consequence of price controls set below market equilibrium?

Shortages (A) Signup and view all the answers

What is the primary goal of South Africa's export promotion policies?

To increase participation in the global market (A) Signup and view all the answers

What is a key argument in favor of protectionism?

To protect emerging domestic industries from foreign competition (D) Signup and view all the answers

What is a benefit of free trade according to the comparative advantage argument?

Access to a wider variety of goods and services (A) Signup and view all the answers

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

To provide public goods and services that are not suitable for private sector delivery (B) Signup and view all the answers

What is a potential consequence of information failure in the public sector?

Inefficient outcomes due to incomplete or inaccurate information (C) Signup and view all the answers

What is the primary goal of import substitution policies?

To reduce dependency on imports by supporting the development of diverse local industries (C) Signup and view all the answers

What is a potential consequence of bureaucracy in the public sector?

Excessive bureaucracy can stifle innovation and responsiveness (A) Signup and view all the answers

What is the primary function of the multiplier effect in economics?

To reveal how initial increases in spending lead to a more significant overall increase in economic output (C) Signup and view all the answers

Which sector model includes government and foreign transactions?

Four-Sector Model (A), Three-Sector Model (D) Signup and view all the answers

What is the purpose of fiscal policy in times of economic downturn?

To increase government spending and reduce taxes (D) Signup and view all the answers

Which business cycle phase is characterized by a decline in economic indicators?

Contraction (B) Signup and view all the answers

What is the name of the economic theory that proposes business cycles are driven by external shocks?

Classical and Neoclassical Theories (A) Signup and view all the answers

What is the term for the highest point of the business cycle?

Peak (A) Signup and view all the answers

What is the purpose of monetary policy in times of economic boom?

To raise interest rates and curb inflation (D) Signup and view all the answers

What is the primary role of the government in the economy, according to Keynesian Theory?

To stabilize economic activity through fiscal and monetary policies (C) Signup and view all the answers

What is the term for the lowest point of the business cycle?

Trough (C) Signup and view all the answers

What is the primary objective of business cycle analysis?

To understand the causes and consequences of business cycles (C) Signup and view all the answers

What does economic growth refer to?

An increase in a country's real GDP or real GDP per capita over time (D) Signup and view all the answers

What is the main focus of the Reconstruction and Development Programme (RDP)?

Meeting basic needs, developing human resources, building the economy, and democratizing state and society (C) Signup and view all the answers

What is the primary objective of the Accelerated and Shared Growth Initiative of South Africa (Asgi-SA)?

Halving unemployment and poverty by improving average economic growth (C) Signup and view all the answers

What is the term for the disparity in income levels, economic stability, and access to resources between the developed 'North' and the developing 'South'?

North-South Divide (C) Signup and view all the answers

What is the primary goal of South Africa's export promotion policies?

To support domestic industries and increase exports (A) Signup and view all the answers

What is the main objective of South Africa's industrial policies?

To promote economic growth and sustainable development (D) Signup and view all the answers

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

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

What is the primary goal of import substitution policies?

To encourage domestic production and reduce imports (C) Signup and view all the answers

What is the primary objective of South Africa's economic and social indicators?

To track economic growth and development (D) Signup and view all the answers

What is the primary goal of the New Growth Path (NGP) in South Africa?

To create jobs and improve economic indicators (A) Signup and view all the answers

Which economic indicator measures the average price change of goods and services purchased by households?

Consumer Price Index (CPI) (C) Signup and view all the answers

What is the primary purpose of the Exchange Rate?

To affect trade competitiveness (D) Signup and view all the answers

Which social indicator measures the overall health and longevity of the population?

Life Expectancy (C) Signup and view all the answers

What is the primary purpose of the Terms of Trade?

To compare the rate of export prices to import prices (B) Signup and view all the answers

What is the Repo Rate?

The rate at which the South African Reserve Bank lends money to commercial banks (A) Signup and view all the answers

What is the primary purpose of M1, M2, and M3?

To reflect the liquidity available in the economy (B) Signup and view all the answers

Which social indicator tracks the percentage of eligible children attending schools?

Enrolment Rates (C) Signup and view all the answers

What is the primary purpose of tracking Housing Development?

To reflect the government's ability to provide adequate housing (B) Signup and view all the answers

What is the primary purpose of International Comparisons?

To compare South Africa's performance with that of other countries (C) Signup and view all the answers

What is a key use of economic and social indicators?

To identify areas needing intervention and evaluate the impact of current policies (A) Signup and view all the answers

What is the primary goal of the National Industrial Policy Framework (NIPF) in South Africa?

To guide the overall industrial strategy of South Africa (B) Signup and view all the answers

What is the main focus of the Integrated Manufacturing Strategy (IMS)?

Enhancing competitiveness in the manufacturing sector (B) Signup and view all the answers

What is the primary purpose of Special Economic Zones (SEZs)?

To offer incentives to attract businesses and stimulate economic activities (C) Signup and view all the answers

Why is economic diversification a key justification for South Africa's industrial policies?

To reduce dependence on traditional sectors (D) Signup and view all the answers

What is a key aspect of South Africa's industrial strategies aligning with international best practices?

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

What is the primary goal of Spatial Development Initiatives (SDIs)?

To target underdeveloped areas for infrastructure and industrial development (B) Signup and view all the answers

What is a key challenge facing South Africa's industrial policies?

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

What is a key aspect of evaluating the effectiveness of South Africa's industrial strategies?

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

What is the primary purpose of South Africa's economic and social indicators?

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

What is the primary goal of Industrial Policy Action Plans (IPAP)?

To detail specific actions to implement the NIPF (D) Signup and view all the answers

In an open economy, what is the main function of the foreign sector?

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

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

Real Flows (B) Signup and view all the answers

Which market manages the flow of money, including savings and investments?

Financial Market (C) Signup and view all the answers

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

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

In the circular flow model, what do households provide?

Labor and resources (C) Signup and view all the answers

What is the main function of firms in the circular flow model?

To utilize labor and resources to produce goods and services (A) Signup and view all the answers

Which market trades consumer goods and services?

Goods Market (B) Signup and view all the answers

What is the term for the movement of financial transactions in the circular flow model?

Money Flows (D) Signup and view all the answers

What is the primary purpose of GNI?

To account for all income earned by a country's residents, adjusting for income received from abroad (D) Signup and view all the answers

What is the primary goal of the New Economic Paradigm?

To smooth out the volatility in business cycles (C) Signup and view all the answers

What is the focus of the Two-Sector Model?

Household and firm interactions (A) Signup and view all the answers

What type of economic indicators confirm trends that are already in process?

Lagging indicators (B) Signup and view all the answers

What is the primary role of the public sector in terms of essential services?

To provide structure and essential services (D) Signup and view all the answers

What happens to economic indicators during the contraction phase of a business cycle?

They decline (D) Signup and view all the answers

What is the Keynesian Theory's explanation for business cycles?

Changes in aggregate demand influenced by collective behavior of consumers and businesses (A) Signup and view all the answers

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

Lack of clear performance metrics and accountability (B) Signup and view all the answers

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

To plan over a three-year period (C) Signup and view all the answers

What is the primary tool of monetary policy used to stabilize economic activity?

Interest rates (C) Signup and view all the answers

What is the primary purpose of taxation as a fiscal policy instrument?

To manage economic activity (C) Signup and view all the answers

What is the purpose of fiscal policy in times of economic downturn?

To increase government spending and reduce taxes (B) Signup and view all the answers

What is the effect of an increase in the marginal propensity to consume (MPC) on the multiplier?

The multiplier increases (D) Signup and view all the answers

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

Lack of competition (A) Signup and view all the answers

What is the purpose of the Three and Four-Sector Models?

To include government and foreign transactions in the analysis of the multiplier effect (C) Signup and view all the answers

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

To illustrate the relationship between tax rates and government revenue (A) Signup and view all the answers

What is the significance of the peak in a business cycle?

It marks the end of an expansion phase (A) Signup and view all the answers

What is the primary objective of the public sector in terms of income distribution?

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

What is the primary purpose of forecasting business cycles?

To predict future economic activity (B) Signup and view all the answers

What is the primary objective of monetary policy?

To stabilize economic activity (A) Signup and view all the answers

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 (A) Signup and view all the answers

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 (A) Signup and view all the answers

What is the primary aim of the Accelerated and Shared Growth Initiative of South Africa (Asgi-SA)?

Reducing poverty and unemployment by improving average economic growth (D) Signup and view all the answers

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

To encourage economic growth and stability (C) Signup and view all the answers

What is the primary focus of the New Growth Path (NGP) in South Africa?

Job creation and identifying job drivers like infrastructure and agriculture (B) Signup and view all the answers

Which of the following is a characteristic of free trade?

Promoting specialization and economies of scale (B) Signup and view all the answers

What is a potential consequence of bureaucracy in the public sector?

Stifling innovation and responsiveness (B) Signup and view all the answers

What is the primary characteristic of demand-side approach to economic growth?

Increasing government expenditure to stimulate economic activity (D) Signup and view all the answers

What is the primary goal of South Africa's industrial policies?

Increasing industrial activity, diversifying the economy, and enhancing regional development (C) Signup and view all the answers

What is the primary objective of import substitution policies?

To reduce dependency on imports by supporting local production (C) Signup and view all the answers

What is the primary challenge faced by South Africa in terms of economic growth and development?

The North/South divide and income inequality (C) Signup and view all the answers

What is the primary argument in favor of protectionism?

To protect local industries and jobs from foreign competition (C) Signup and view all the answers

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

Market-led growth, fiscal and monetary discipline, and enhancing investor confidence (D) Signup and view all the answers

What is the primary goal of South Africa's export promotion policies?

To encourage local firms to export their goods and increase participation in the global market (B) Signup and view all the answers

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

To illustrate the relationship between tax rates and tax revenue (C) Signup and view all the answers

What is the primary focus of the Supply-side approach to economic growth?

Improving the quality of the labor force through education and training (D) Signup and view all the answers

What is a potential consequence of price controls set below market equilibrium?

Shortage of goods (A) Signup and view all the answers

What is the primary goal of South Africa's National Industrial Policy Framework (NIPF)?

To guide the overall industrial strategy of South Africa (D) Signup and view all the answers

What is the primary characteristic of the North/South divide?

A significant disparity in income levels, economic stability, and access to resources (C) Signup and view all the answers

What is the main objective of Industrial Policy Action Plans (IPAP)?

To detail specific actions to implement the NIPF (C) Signup and view all the answers

What is a challenge faced by the public sector in terms of efficiency?

Bureaucracy and moral hazard (D) Signup and view all the answers

What is the primary focus of the Integrated Manufacturing Strategy (IMS)?

To enhance competitiveness in the manufacturing sector (B) Signup and view all the answers

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

To manage resources and provide services not suitable for private sector delivery (A) Signup and view all the answers

What is the primary purpose of Special Economic Zones (SEZs)?

To offer incentives to attract businesses and stimulate economic activities (A) Signup and view all the answers

Why is economic diversification a key justification for South Africa's industrial policies?

To reduce dependence on traditional sectors like mining (C) Signup and view all the answers

What is a key aspect of South Africa's industrial strategies aligning with international best practices?

Ensuring policy implementation is transparent and accountable (D) Signup and view all the answers

What is the primary goal of Spatial Development Initiatives (SDIs)?

To target underdeveloped areas for infrastructure and industrial development (D) Signup and view all the answers

What is a key challenge facing South Africa's industrial policies?

Implementation gaps between policy goals and actual outcomes (C) Signup and view all the answers

What is a key aspect of evaluating the effectiveness of South Africa's industrial strategies?

Assessing the impact on economic growth (D) Signup and view all the answers

What is the primary purpose of South Africa's economic and social indicators?

To provide insights into the country's economic and social well-being (C) Signup and view all the answers

What does the Producer Price Index (PPI) reflect?

The average movement of selling prices from domestic production over time. (D) Signup and view all the answers

What is the Economically Active Population (EAP) comprised of?

All persons within the working age group (15-65 years) available to supply labor for production. (A) Signup and view all the answers

What is the primary purpose of the Exchange Rate?

To measure the value of the South African rand against other currencies. (B) Signup and view all the answers

What is the primary use of the Repo Rate?

To influence other interest rates across the economy. (C) Signup and view all the answers

What does the Life Expectancy indicator measure?

The overall health and longevity of the population. (A) Signup and view all the answers

What is the primary purpose of tracking Urbanisation Rate?

To track the movement of the population towards urban areas, affecting economic development patterns. (C) Signup and view all the answers

What is the primary purpose of tracking Electricity, Water, and Sanitation indicators?

To track the provision of essential services, indicating infrastructural development. (B) Signup and view all the answers

What is the primary purpose of International Comparisons?

To compare South Africa's performance with that of other countries, highlighting areas of strength and those requiring improvement. (A) Signup and view all the answers

What is the primary use of M1, M2, and M3 indicators?

To track the liquidity available in the economy, including currency in circulation and different types of bank deposits. (A) Signup and view all the answers

What is the primary use of economic and social indicators?

To identify areas needing intervention, evaluate the impact of current policies, and guide investment decisions. (D) Signup and view all the answers

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

To facilitate trade activities and exchange currencies (C) Signup and view all the answers

Which market facilitates the trading of currencies necessary for international trade?

Foreign Exchange Market (B) Signup and view all the answers

What is the total economic output measured at market prices?

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

Which sector utilizes labor and resources to produce goods and services?

Firms (A) Signup and view all the answers

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

Real Flows (C) Signup and view all the answers

Which sector collects taxes and injects spending into the economy through public services and infrastructure?

Government (C) Signup and view all the answers

What is the financial transaction for goods and services in the circular flow model?

Money Flows (B) Signup and view all the answers

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

To provide labor and resources, receiving income (C) Signup and view all the answers

What is the primary goal of the New Economic Paradigm?

To smooth out volatility in business cycles (C) Signup and view all the answers

What type of indicators confirm trends that are already in process?

Lagging indicators (C) Signup and view all the answers

What is the primary role of the public sector in the economy?

To provide essential services (C) Signup and view all the answers

What is a challenge faced by the public sector in terms of efficiency?

Lack of clear performance metrics (D) Signup and view all the answers

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

To plan and allocate resources over a three-year period (D) Signup and view all the answers

What is the primary purpose of fiscal policy instruments?

To regulate aggregate demand (D) Signup and view all the answers

What is a characteristic of supply-side policies?

Focus on increasing productivity and efficiency (A) Signup and view all the answers

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

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

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

Lack of competition (C) Signup and view all the answers

What is the purpose of the Laffer Curve in fiscal policy?

To illustrate the relationship between tax rates and government revenue (C) Signup and view all the answers

What is the primary goal of fiscal policy?

To stabilize economic activity (C) Signup and view all the answers

Which theory proposes that business cycles are due to changes in aggregate demand?

Keynesian Theory (D) Signup and view all the answers

What is the purpose of monetary policy?

To stabilize economic activity (C) Signup and view all the answers

What is the term for the highest point of the business cycle?

Peak (D) Signup and view all the answers

What is the term for the lowest point of the business cycle?

Trough (C) Signup and view all the answers

What is the primary factor influencing the multiplier effect?

Marginal Propensity to Consume (MPC) (A) Signup and view all the answers

What is the purpose of the multiplier formula?

To measure the multiplier effect on economic output (C) Signup and view all the answers

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

The inclusion of government and foreign transactions (A) Signup and view all the answers

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

Decreased economic activity (C) Signup and view all the answers

What is the primary goal of understanding business cycles?

To plan and forecast in economic policy, business strategy, and investment decisions (D) Signup and view all the answers

What is the primary goal of government spending on public goods and services?

To encourage economic growth and stability (B) Signup and view all the answers

What is the Laffer Curve used to illustrate?

The relationship between tax rates and tax revenue (D) Signup and view all the answers

What is a common argument against free trade?

It leads to job losses due to cheaper imported goods (B) Signup and view all the answers

What is the purpose of protectionist policies?

To protect local industries from foreign competition (C) Signup and view all the answers

What is a consequence of administered prices set below market equilibrium?

Shortages (D) Signup and view all the answers

What is the primary goal of South Africa's import substitution policies?

To reduce dependency on imports (D) Signup and view all the answers

What is a challenge faced by the public sector in terms of efficiency?

Bureaucracy (A) Signup and view all the answers

What is a benefit of free trade according to the comparative advantage argument?

Specialization and efficient allocation of resources (D) Signup and view all the answers

What is the primary goal of South Africa's export promotion policies?

To promote economic growth through increased exports (D) Signup and view all the answers

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

Inefficient allocation of resources (C) Signup and view all the answers

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

Economic growth refers to an increase in real GDP, while economic development encompasses broader concepts like standards of living and income equity. (B) Signup and view all the answers

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

To meet basic needs, develop human resources, and build the economy. (D) Signup and view all the answers

What is the primary approach of the Demand-side Approach to Economic Growth?

Increasing government expenditure to stimulate economic activity. (A) Signup and view all the answers

What is the term for the significant disparity between the developed 'North' and the developing 'South'?

North/South Divide (D) Signup and view all the answers

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. (B) Signup and view all the answers

What is the primary focus of the Supply-side Approach to Economic Growth?

Improving the quality of the labor force through education and training. (A) Signup and view all the answers

What is the primary goal of South Africa's industrial policies?

To increase industrial activity, diversify the economy, and enhance regional development. (B) Signup and view all the answers

What is the primary goal of the Growth, Employment and Redistribution (GEAR) policy?

To promote market-led growth and fiscal discipline. (A) Signup and view all the answers

What is the primary focus of the New Growth Path (NGP) policy?

To focus on job creation and identifying job drivers like infrastructure and agriculture. (C) Signup and view all the answers

What is the primary goal of South Africa's partnerships with major economies like China and the EU?

To facilitate both protectionist and free trade measures. (D) Signup and view all the answers

What is the primary goal of South Africa's National Industrial Policy Framework (NIPF)?

To guide the overall industrial strategy of South Africa (A) Signup and view all the answers

What is a key justification for South Africa's industrial policies?

Reducing dependence on traditional sectors like mining (A) Signup and view all the answers

What is the primary focus of South Africa's Integrated Manufacturing Strategy (IMS)?

Enhancing competitiveness in the manufacturing sector (C) Signup and view all the answers

What is the primary purpose of South Africa's Special Economic Zones (SEZs)?

To offer incentives to attract businesses and stimulate economic activities (A) Signup and view all the answers

What is a key aspect of South Africa's industrial strategies aligning with international best practices?

Ensuring governance and transparency in policy implementation (D) Signup and view all the answers

What is a key challenge facing South Africa's industrial policies?

Implementation gaps between policy goals and actual outcomes (D) Signup and view all the answers

What is the primary purpose of evaluating the effectiveness of South Africa's industrial strategies?

To assess the impact on economic growth (D) Signup and view all the answers

What is the primary purpose of South Africa's economic and social indicators?

To provide insights into the economy and social progress (A) Signup and view all the answers

What is the primary goal of South Africa's Spatial Development Initiatives (SDIs)?

To target underdeveloped areas for infrastructure and industrial development (C) Signup and view all the answers

What is a key aspect of South Africa's National Research and Development Strategy (NRDS)?

Aiming to boost innovation across industries (B) Signup and view all the answers

What is the primary purpose of the Producer Price Index (PPI)?

To reflect the average movement of selling prices from domestic production over time. (B) Signup and view all the answers

What does the Employment Rate measure?

The proportion of the Economically Active Population (EAP) that is employed. (B) Signup and view all the answers

What does the Repo Rate influence across the economy?

Other interest rates across the economy. (B) Signup and view all the answers

What do M1, M2, M3 aggregates include?

Currency in circulation and different types of bank deposits. (D) Signup and view all the answers

What is the primary purpose of tracking Infant and Under-5 Mortality Rates?

To track the effectiveness of healthcare systems and government priorities. (A) Signup and view all the answers

What is the primary purpose of International Comparisons?

To gauge South Africa's progress and alignment with global standards. (B) Signup and view all the answers

What is the primary purpose of tracking Housing Development?

To track the government's ability to provide adequate housing. (A) Signup and view all the answers

What is the primary purpose of tracking Access to Basic Services?

To track the government's ability to provide essential services. (C) Signup and view all the answers

What is the primary purpose of tracking Population Growth?

To track changes in population size and its impact on demand for goods and services. (B) Signup and view all the answers

What is the primary use of economic and social indicators?

To evaluate the effectiveness of policies and identify areas needing intervention. (B) Signup and view all the answers

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

To promote economic growth and stability (C) Signup and view all the answers

What is the Laffer Curve used to illustrate?

The relationship between tax rates and tax revenue (B) Signup and view all the answers

What is a common tool used to implement protectionism?

Tariffs and quotas (B) Signup and view all the answers

What is a potential consequence of information failure in the public sector?

Inefficient outcomes (B) Signup and view all the answers

What is the primary objective of South Africa's export promotion policies?

To encourage local firms to export their goods (A) Signup and view all the answers

What is a potential consequence of bureaucracy in the public sector?

Stifling innovation and responsiveness (D) Signup and view all the answers

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

To provide services that are not suitable for private sector delivery (C) Signup and view all the answers

What is the primary argument in favor of protectionism?

Preservation of jobs and protection of local industries (A) Signup and view all the answers

What is a benefit of free trade according to the comparative advantage argument?

Nations can focus on the production of goods for which they have a comparative advantage (A) Signup and view all the answers

What is the primary objective of import substitution policies?

To encourage local production of goods that were previously imported (B) Signup and view all the answers

What is the primary difference between Basic Prices, Factor Cost, and Market Prices in the context of national income accounting?

They reflect different economic approaches (B) Signup and view all the answers

What is the role of the Marginal Propensities to Consume (MPC) and Save (MPS) in the Two-Sector Model of the multiplier effect?

They influence the household and firm interactions and spending adjustments (C) Signup and view all the answers

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

Increasing economic indicators (C) Signup and view all the answers

Which theory suggests that business cycles are due to changes in aggregate demand influenced by collective behavior of consumers and businesses?

Keynesian Theory (A) Signup and view all the answers

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

To stabilize economic activity (A) Signup and view all the answers

What is the primary difference between monetary and fiscal policy?

Monetary policy involves control of money supply, while fiscal policy involves government spending and taxation (D) Signup and view all the answers

What is the role of government policy in the context of business cycles?

To smooth out the fluctuations in economic activity (C) Signup and view all the answers

What is the primary purpose of understanding business cycles?

To plan and forecast economic policy, business strategy, and investment decisions (B) Signup and view all the answers

What is the primary difference between endogenous and exogenous factors influencing business cycles?

Endogenous factors are internal, while exogenous factors are external (B) Signup and view all the answers

What is the primary role of technological innovation in the context of business cycles, according to the Schumpeterian Theory?

It causes fluctuations in economic activity (A) Signup and view all the answers

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 (D) Signup and view all the answers

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

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

Which of the following approaches is supply-side oriented?

Supply-side approach focusing on improving the quality of the labor force (C) Signup and view all the answers

What is the primary objective of the Accelerated and Shared Growth Initiative of South Africa (Asgi-SA)?

Reducing poverty and unemployment by improving average economic growth (D) Signup and view all the answers

What is the primary challenge posed by the North/South divide?

Significant disparities in income levels, economic stability, and access to resources (A) Signup and view all the answers

What is the primary focus of South Africa's industrial policies?

Increasing industrial activity, diversifying the economy, and enhancing regional development (B) Signup and view all the answers

What is the primary goal of South Africa's export promotion policies?

Supporting domestic industries to increase their exports (B) Signup and view all the answers

What is the primary objective of the New Growth Path (NGP) in South Africa?

Focusing on job creation and identifying job drivers like infrastructure and agriculture (A) Signup and view all the answers

What is the primary purpose of South Africa's economic and social indicators?

To measure the overall performance of the economy and identify areas for improvement (C) Signup and view all the answers

What is the primary goal of South Africa's Growth, Employment and Redistribution (GEAR) strategy?

Aims at market-led growth, fiscal and monetary discipline, and enhancing investor confidence (D) Signup and view all the answers

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

To facilitate trade activities and inject spending into the economy (A) Signup and view all the answers

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

To trade consumer goods and services (D) Signup and view all the answers

What does the circular flow model illustrate?

The movement of goods and services across different sectors of the economy (B) Signup and view all the answers

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

To collect taxes and inject spending into the economy (D) Signup and view all the answers

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

To manage the flow of money through institutions like banks (C) Signup and view all the answers

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

To provide labor and resources, receiving income used for consumption, savings, and taxes (A) Signup and view all the answers

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

Real Flows involve the movement of goods and services, while Money Flows involve financial transactions (B) Signup and view all the answers

What does GDP (Gross Domestic Product) measure in the circular flow model?

The total economic output at market prices (D) Signup and view all the answers

What is the primary objective of the New Economic Paradigm?

To smooth out the volatility in business cycles and achieve stable growth (A) Signup and view all the answers

What type of indicator confirms trends that are already in process?

Lagging Indicator (D) Signup and view all the answers

What is the primary role of the public sector in the economy?

To provide essential services and regulate economic activity (A) Signup and view all the answers

What is a common challenge faced by state-owned enterprises (SOEs)?

Lack of competition and accountability (B) Signup and view all the answers

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

To plan and allocate resources over a three-year period (B) Signup and view all the answers

What is the primary objective of fiscal policy instruments?

To manage economic activity through taxation and spending (A) Signup and view all the answers

What is a characteristic of demand-side policies?

Aim to regulate aggregate demand through fiscal stimuli or monetary adjustments (D) Signup and view all the answers

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

To predict future economic activity (D) Signup and view all the answers

What is a challenge faced by the public sector in terms of efficiency?

Lack of clear performance metrics and accountability (C) Signup and view all the answers

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

To illustrate the relationship between tax rates and revenue (D) Signup and view all the answers

What is the primary goal of the National Industrial Policy Framework (NIPF) in South Africa?

To guide the overall industrial strategy of South Africa (C) Signup and view all the answers

What is the main objective of Industrial Policy Action Plans (IPAP)?

To implement specific actions to achieve the goals of the NIPF (C) Signup and view all the answers

What is the main focus of the Integrated Manufacturing Strategy (IMS)?

To enhance competitiveness in the manufacturing sector (B) Signup and view all the answers

What is the primary purpose of Special Economic Zones (SEZs)?

To offer incentives to attract businesses and stimulate economic activities (D) Signup and view all the answers

Why is economic diversification a key justification for South Africa's industrial policies?

To reduce dependence on traditional sectors like mining (B) Signup and view all the answers

What is a key aspect of South Africa's industrial strategies aligning with international best practices?

Sustainability and governance (B) Signup and view all the answers

What is the primary goal of Spatial Development Initiatives (SDIs)?

To target underdeveloped areas for infrastructure and industrial development (B) Signup and view all the answers

What is a key challenge facing South Africa's industrial policies?

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

What is a key aspect of evaluating the effectiveness of South Africa's industrial strategies?

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

What is the primary purpose of South Africa's economic and social indicators?

To gauge social progress and formulate policy responses (B) Signup and view all the answers

What does the Consumer Price Index (CPI) measure?

The average price change over time of goods and services purchased by households. (D) Signup and view all the answers

What is the Economically Active Population (EAP)?

All persons within the working age group (15-65 years) available to supply labor for production. (C) Signup and view all the answers

What is the purpose of tracking Exchange Rates?

To compare the value of the South African rand against other currencies. (C) Signup and view all the answers

What is the Repo Rate?

The rate at which the South African Reserve Bank lends money to commercial banks. (B) Signup and view all the answers

What is the primary use of M1, M2, and M3?

To measure the liquidity available in the economy. (B) Signup and view all the answers

What is the primary purpose of tracking Infant and Under-5 Mortality Rates?

To measure the overall health and longevity of the population. (C) Signup and view all the answers

What is the primary purpose of tracking Population Growth?

To track changes in population size which impacts demand for goods, services, and infrastructure. (A) Signup and view all the answers

What is the primary purpose of tracking Housing Development?

To track the government's ability to provide adequate housing, reflecting on economic stability and quality of life. (A) Signup and view all the answers

What is the primary purpose of International Comparisons?

To compare South Africa's performance with that of other countries, highlighting areas of strength and those requiring improvement. (B) Signup and view all the answers

What is the primary use of economic and social indicators?

To identify areas needing intervention and evaluate the impact of current policies. (D) Signup and view all the answers

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Questions and Answers

What does GNI (Gross National Income) account for?

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

What is the phase of the business cycle characterized by an increase in economic activities?

What is the lowest point of the business cycle?

What is an example of an exogenous factor influencing business cycles?

Which theory suggests that business cycles are driven by external shocks and normal market processes will always tend toward equilibrium?

What is the primary tool of monetary policy?

What is the purpose of fiscal policy?

What is the phase of the business cycle characterized by a decline in economic indicators?

What is the term for the highest point of the business cycle?

What is the primary objective of the New Economic Paradigm?

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

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

What is the primary role of the public sector in the economy?

What is a challenge faced by the public sector in terms of efficiency?

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

What is the purpose of fiscal policy instruments in the economy?

Which of the following is an objective of the public sector in terms of economic growth?

What is the purpose of the Laffer Curve in fiscal policy?

What is a challenge faced by state-owned enterprises in the public sector?

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

What does the Laffer Curve illustrate?

What is a potential consequence of price controls set below market equilibrium?

What is the primary argument in favor of protectionism?

What is a benefit of free trade according to the comparative advantage argument?

What is the primary goal of South Africa's export promotion policies?

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

What is the primary objective of import substitution policies?

What is a potential consequence of bureaucracy in the public sector?

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

What is the primary goal of the National Industrial Policy Framework (NIPF) in South Africa?

What is the main objective of Industrial Policy Action Plans (IPAP)?

What is the main focus of the Integrated Manufacturing Strategy (IMS)?

What is the main purpose of Special Economic Zones (SEZs)?

Why is economic diversification a key justification for South Africa's industrial policies?

What is a key aspect of South Africa's industrial strategies aligning with international best practices?

What is the primary goal of Spatial Development Initiatives (SDIs)?

What is a key challenge facing South Africa's industrial policies?

What is a key aspect of evaluating the effectiveness of South Africa's industrial strategies?

What is the primary purpose of South Africa's economic and social indicators?

What is the primary purpose of the Consumer Price Index (CPI)?

What is the Employment Rate?

What is the Repo Rate?

What is the primary use of M1, M2, and M3?

What is the primary purpose of tracking Infant and Under-5 Mortality Rates?

What is the primary purpose of tracking Population Growth?

What is the primary purpose of tracking Housing Development?

What is the primary purpose of tracking Access to Basic Services?

What is the primary purpose of International Comparisons?

What is the primary use of economic and social indicators?

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

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

What is the main objective of the Export Promotion strategy?

What is the primary goal of the Accelerated and Shared Growth Initiative of South Africa (Asgi-SA)?

What is the main characteristic of the North/South divide?

What is the main focus of Supply-side Approach to Economic Growth?

What is the main goal of Import Substitution strategy?

What is the main focus of South Africa's industrial policies?

What is the main difference between Growth, Employment and Redistribution (GEAR) and Reconstruction and Development Programme (RDP)?

What is the main goal of the Demand-side Approach to Economic Growth?

Which sector of the economy provides labor and resources?

What is the main purpose of the Foreign Exchange Market?

What type of flow involves the movement of goods and services?

What is GDP an example of?

Which market deals in resources like labor and capital?

What is the main function of the government in the circular flow model?

What is the multiplier effect related to?

Which market trades consumer goods and services?

What is the purpose of the multiplier effect in economics?

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

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

What is the primary tool of monetary policy?

What is the name of the phase of the business cycle characterized by an increase in economic activities?

What is the term for the highest point of the business cycle?

What is the name of the theory that focuses on the role of technological innovation in causing business cycles?

What is the primary objective of fiscal policy?