Nov P2 Easy
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Questions and Answers

What happens when the marginal cost of producing an additional unit equals the marginal revenue obtained from selling that unit?

  • The firm is in equilibrium (correct)
  • The firm will make a loss
  • The firm should increase production
  • The firm should decrease production

    • What is the goal of governments in creating a perfect competitive market?

  • To create a monopoly
  • To protect the monopolist
  • To enhance economic efficiency (correct)
  • To promote unfair competition

    • What characterizes a monopoly?

  • A single company controlling the entire supply (correct)
  • Many firms producing a similar product
  • Free entry and exit of firms
  • Perfect substitutes available

    • What is a characteristic of oligopolies?

    <p>A few firms dominating the market</p> Signup and view all the answers

    What is the goal of firms in monopolistic competition?

    <p>To attract consumers through product differentiation</p> Signup and view all the answers

    What happens to economic profits in a monopolistically competitive market?

    <p>They decrease in the long run</p> Signup and view all the answers

    What determines the shape of the demand curve for an oligopolist?

    <p>The kinked demand curve prevents competitors from altering their prices</p> Signup and view all the answers

    Why do monopolies often achieve long-term economic profits?

    <p>Due to the barriers to entry preventing new entrants</p> Signup and view all the answers

    What happens when marginal revenue equals marginal cost in an imperfect market?

    <p>The firm maximizes profits</p> Signup and view all the answers

    What influences the dynamics of imperfect markets?

    <p>The interplay of cost and revenue curves</p> Signup and view all the answers

    What is the main reason for government intervention in imperfect markets?

    <p>To harness the benefits of market competition and mitigate its downsides</p> Signup and view all the answers

    Which of the following is an example of a positive externality?

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

    What is a characteristic of public goods?

    <p>They are non-excludable and non-rivalrous</p> Signup and view all the answers

    What is a consequence of imperfect competition?

    <p>Higher prices and reduced output</p> Signup and view all the answers

    What is a cause of market failures?

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

    What is a type of inefficiency that arises from the underutilization of resources?

    <p>Productive inefficiency</p> Signup and view all the answers

    What is a consequence of market failures?

    <p>Reduced social welfare</p> Signup and view all the answers

    How do governments typically provide public goods?

    <p>Direct provision by the government</p> Signup and view all the answers

    What is an example of a negative externality?

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

    What is a goal of government intervention in market failures?

    <p>To correct market failures and increase efficiency</p> Signup and view all the answers

    What is the primary objective of a firm in a perfect market?

    <p>To maximize profit</p> Signup and view all the answers

    What is a characteristic of a perfectly competitive market?

    <p>Homogeneous products</p> Signup and view all the answers

    What is the main distinction between an industry and an individual business in a perfect market?

    <p>Industry comprises multiple businesses producing identical products, while individual businesses are price takers</p> Signup and view all the answers

    What is the purpose of revenue and cost concepts in a perfect market?

    <p>To make decisions on output and pricing strategies</p> Signup and view all the answers

    What is a characteristic of individual businesses in a perfect market?

    <p>Price taker</p> Signup and view all the answers

    What is the result of numerous buyers and sellers in a perfect market?

    <p>Impossible for single entities to influence market prices</p> Signup and view all the answers

    What is the significance of perfect information in a perfect market?

    <p>Ensures no single entity can wield undue influence over the market</p> Signup and view all the answers

    What is the condition of the market in a perfect market?

    <p>Unregulated by the government</p> Signup and view all the answers

    What percentage of South Africa's workforce is directly employed by tourism?

    <p>7%</p> Signup and view all the answers

    What is a key way that tourism promotes poverty reduction in rural areas?

    <p>Resource distribution and local economy stimulation</p> Signup and view all the answers

    What is a major environmental challenge posed by high tourist activity?

    <p>Resource depletion and waste management</p> Signup and view all the answers

    What is recommended to enhance the cultural tourism experience in South Africa?

    <p>Promote indigenous knowledge systems</p> Signup and view all the answers

    What is a key policy recommendation for sustainable tourism development?

    <p>Implement strict environmental regulations</p> Signup and view all the answers

    What is a type of tourism that involves exploring natural areas while promoting conservation?

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

    Why is it essential to develop under-explored areas in South Africa?

    <p>To reduce tourist traffic in popular areas</p> Signup and view all the answers

    What is a key economic impact of tourism in South Africa?

    <p>Significant contribution to national GDP</p> Signup and view all the answers

    What is a crucial aspect of environmental sustainability?

    <p>Preserving the health and resources of the planet</p> Signup and view all the answers

    Why is education and training recommended for the tourism workforce?

    <p>To provide high-quality services to tourists</p> Signup and view all the answers

    What is environmental sustainability?

    <p>The ability of the environment to support economic activity indefinitely</p> Signup and view all the answers

    What is the main goal of conservation?

    <p>To manage human use of the biosphere for sustainable benefit</p> Signup and view all the answers

    What is pollution?

    <p>The introduction of contaminants into the natural environment</p> Signup and view all the answers

    What is a major environmental challenge?

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

    What is a market mechanism to ensure sustainability?

    <p>Implementing environmental taxes and tradeable permits</p> Signup and view all the answers

    What is the aim of the Paris Agreement?

    <p>To reduce greenhouse gas emissions</p> Signup and view all the answers

    What is the focus of the Johannesburg Summit?

    <p>Furthering the goals established in Rio</p> Signup and view all the answers

    What is Agenda 21?

    <p>A comprehensive plan of action for sustainable development</p> Signup and view all the answers

    What is a challenge facing the South African government's environmental sustainability interventions?

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

    What is a key aspect of sustainable development?

    <p>Meeting the needs of current and future generations</p> Signup and view all the answers

    What is the primary goal of cost-benefit analysis in public policy?

    <p>To ensure resources are used efficiently and enhance social welfare</p> Signup and view all the answers

    What is the main difference between consumer inflation and headline inflation?

    <p>Consumer inflation includes all items in the consumer basket, while headline inflation excludes some items</p> Signup and view all the answers

    What is the primary cause of cost-push inflation?

    <p>Increase in the cost of production</p> Signup and view all the answers

    What is the consequence of inflation on savings?

    <p>It reduces the real value of saved money</p> Signup and view all the answers

    What is the target inflation range for the South African Reserve Bank?

    <p>3% to 6%</p> Signup and view all the answers

    What is an example of a monetary policy tool used to combat inflation?

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

    What is the term for an extremely high and typically accelerating inflation?

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

    What is the benefit of inflation to debtors?

    <p>It reduces the real value of their debt</p> Signup and view all the answers

    What is the term for a situation where high inflation is combined with stagnant economic growth and high unemployment?

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

    What is the primary goal of inflation targeting by the South African Reserve Bank?

    <p>To maintain inflation within a manageable range</p> Signup and view all the answers

    What is a characteristic of a monopoly?

    <p>A single firm dominating the entire market</p> Signup and view all the answers

    What is the result of allocative inefficiency in imperfect markets?

    <p>Lower output and higher prices</p> Signup and view all the answers

    What is a key feature of an oligopoly?

    <p>Interdependence of firms</p> Signup and view all the answers

    What is the result of non-price competition in monopolistic competition?

    <p>Increased customer loyalty</p> Signup and view all the answers

    What is the primary goal of government intervention in imperfect markets?

    <p>To protect consumer interests</p> Signup and view all the answers

    What is a characteristic of monopolistic competition?

    <p>Many firms selling differentiated products</p> Signup and view all the answers

    What is the result of strategic behaviors in oligopolies?

    <p>Price fixing and collusive practices</p> Signup and view all the answers

    What is the outcome of imperfect markets in terms of economic efficiency?

    <p>Allocative inefficiency and productive inefficiency</p> Signup and view all the answers

    What is the result of barriers to entry in monopolies?

    <p>Sustained profits for the monopolist</p> Signup and view all the answers

    What is the outcome of monopolistic competition in the long run?

    <p>Normal profits for firms</p> Signup and view all the answers

    Which of the following is a characteristic of a perfectly competitive market?

    <p>Homogeneous products</p> Signup and view all the answers

    What is the primary objective of a firm in a perfect market?

    <p>To maximize profit</p> Signup and view all the answers

    What is the significance of numerous buyers and sellers in a perfect market?

    <p>It makes it impossible for single entities to influence market prices</p> Signup and view all the answers

    What is the role of revenue and cost concepts in a perfect market?

    <p>To determine profit maximization</p> Signup and view all the answers

    What is the main distinction between an industry and an individual business in a perfect market?

    <p>Industry is where businesses produce identical products, contributing to the industry's total output</p> Signup and view all the answers

    What is the condition of the market in a perfect market?

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

    What is the significance of perfect information in a perfect market?

    <p>It ensures that no single entity can wield undue influence over the market</p> Signup and view all the answers

    What is a characteristic of individual businesses in a perfect market?

    <p>Price takers</p> Signup and view all the answers

    What is a key characteristic of a monopoly?

    <p>A single firm dominating the market</p> Signup and view all the answers

    What is a consequence of imperfect competition?

    <p>Higher prices and lower output</p> Signup and view all the answers

    Why do governments intervene in imperfect markets?

    <p>To enhance competitive outcomes and protect consumer interests</p> Signup and view all the answers

    What is a key feature of oligopolies?

    <p>Firms selling homogeneous products and interdependent decisions</p> Signup and view all the answers

    What is the outcome of monopolistic competition in the long run?

    <p>Firms earn normal profits</p> Signup and view all the answers

    What is a consequence of monopolies and oligopolies?

    <p>Lower output and higher prices</p> Signup and view all the answers

    What is a key characteristic of monopolistic competition?

    <p>Many firms selling differentiated products</p> Signup and view all the answers

    What is the main reason for government intervention in imperfect markets?

    <p>To enhance competitive outcomes and protect consumer interests</p> Signup and view all the answers

    What is a key difference between monopolies and oligopolies?

    <p>Monopolies have a single firm, while oligopolies have few firms</p> Signup and view all the answers

    What is a consequence of imperfect markets?

    <p>Allocative and productive inefficiencies</p> Signup and view all the answers

    What is the primary goal of government intervention in imperfect markets?

    <p>To increase market competition and reduce inefficiencies</p> Signup and view all the answers

    What is an example of a negative externality?

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

    What is a characteristic of public goods?

    <p>They are non-excludable and non-rivalrous</p> Signup and view all the answers

    What is a consequence of imperfect competition?

    <p>Higher prices and reduced output</p> Signup and view all the answers

    What is a type of inefficiency that arises from the underutilization of resources?

    <p>Productive inefficiency</p> Signup and view all the answers

    What is a cause of market failures?

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

    What is a consequence of market failures?

    <p>Social welfare loss</p> Signup and view all the answers

    What is asymmetric information?

    <p>When buyers and sellers do not have equal knowledge</p> Signup and view all the answers

    What is the goal of government intervention in market failures?

    <p>To correct market failures and increase economic efficiency</p> Signup and view all the answers

    What is a result of imperfect distribution of income and wealth?

    <p>Skewed production towards high-end goods and services</p> Signup and view all the answers

    What is the main characteristic of a perfectly competitive market?

    <p>No barriers to entry and a large number of firms producing a homogeneous product</p> Signup and view all the answers

    What is the result of firms in a perfectly competitive market adjusting their output in response to profits and losses?

    <p>An equilibrium where firms make normal profits but no economic profits</p> Signup and view all the answers

    What is the purpose of government policies in promoting perfect competition?

    <p>To dismantle barriers to entry and promote transparency</p> Signup and view all the answers

    What is the shape of the demand curve for an oligopolist?

    <p>A kinked curve</p> Signup and view all the answers

    What is the main characteristic of a monopolistically competitive market?

    <p>Many firms sell products that are differentiated but serve a similar purpose</p> Signup and view all the answers

    What is the goal of firms in imperfect markets?

    <p>To maximize profits where marginal revenue equals marginal cost</p> Signup and view all the answers

    What is a characteristic of monopolies?

    <p>A single company or entity controls the entire supply of a product or service</p> Signup and view all the answers

    What is the main difference between imperfect markets and perfect competition?

    <p>The presence of barriers to entry and the lack of perfect competition</p> Signup and view all the answers

    What is the significance of the interplay of cost and revenue curves in imperfect markets?

    <p>It influences the strategic behavior of firms</p> Signup and view all the answers

    What is the goal of governments in creating competition policies?

    <p>To promote transparency and ensure a level playing field in the market</p> Signup and view all the answers

    What is the primary goal of cost-benefit analysis in public policy?

    <p>To ensure resources are used efficiently and enhance social welfare</p> Signup and view all the answers

    What type of inflation occurs when aggregate demand in an economy outpaces aggregate supply?

    <p>Demand-pull inflation</p> Signup and view all the answers

    What is the primary objective of monetary policy in controlling inflation?

    <p>Managing interest rates to control money supply and demand</p> Signup and view all the answers

    What is the consequence of inflation on the real value of money?

    <p>It reduces the purchasing power of money</p> Signup and view all the answers

    What is the target inflation range for the South African Reserve Bank?

    <p>3% to 6%</p> Signup and view all the answers

    What type of inflation is characterized by extremely high and typically accelerating inflation?

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

    What is the result of income redistribution due to inflation?

    <p>It benefits debtors at the expense of creditors</p> Signup and view all the answers

    What is the primary goal of environmental sustainability?

    <p>To ensure the long-term health and efficiency of the environment and its ecosystems</p> Signup and view all the answers

    What is a consequence of inflation on savings?

    <p>It reduces the real value of saved money</p> Signup and view all the answers

    What is a type of inflation that strips out volatile items like food and energy?

    <p>Core inflation</p> Signup and view all the answers

    What is the main goal of conservation?

    <p>To manage human use of the biosphere for sustainable benefit</p> Signup and view all the answers

    What is the main cause of air, water, and soil pollution?

    <p>Industrial activities and waste mismanagement</p> Signup and view all the answers

    What is a situation where high inflation is combined with stagnant economic growth and high unemployment?

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

    What is the focus of the Johannesburg Summit?

    <p>To promote sustainable development globally</p> Signup and view all the answers

    What is the aim of the Paris Agreement?

    <p>To keep global temperature rise well below 2 degrees Celsius</p> Signup and view all the answers

    What is the main challenge facing the South African government's environmental sustainability interventions?

    <p>Enforcement and achieving a balance between economic development and environmental protection</p> Signup and view all the answers

    What is a market mechanism to ensure sustainability?

    <p>Environmental taxes and tradeable permits</p> Signup and view all the answers

    What is the main goal of preservation?

    <p>To protect ecosystems, biodiversity, and environments from harmful human activities</p> Signup and view all the answers

    What is the primary goal of Agenda 21?

    <p>To promote sustainable development globally</p> Signup and view all the answers

    What is the main environmental challenge posed by high tourist activity?

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

    What is the percentage of South Africa's workforce directly employed by tourism?

    <p>7%</p> Signup and view all the answers

    What is the focus of cultural tourism?

    <p>Engaging with local arts, museums, and cultural sites</p> Signup and view all the answers

    What is a key benefit of tourism in South Africa?

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

    What is a major environmental challenge posed by high tourist activity?

    <p>Waste management and ecosystem stress</p> Signup and view all the answers

    What is a key policy recommendation for sustainable tourism development?

    <p>Implementing strict regulations to preserve natural sites</p> Signup and view all the answers

    What is the significance of indigenous knowledge systems in cultural tourism?

    <p>Providing unique experiences to tourists</p> Signup and view all the answers

    Why is it essential to develop under-explored areas in South Africa?

    <p>To divert tourist flows from over-visited sites</p> Signup and view all the answers

    What is the primary goal of conservation?

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

    What is environmental sustainability?

    <p>Preserving the health and resources of the planet for future generations</p> Signup and view all the answers

    What is the significance of education and training in the tourism sector?

    <p>Providing high-quality services to tourists</p> Signup and view all the answers

    When does a firm in a perfectly competitive market increase production to enhance profits?

    <p>When MR exceeds MC</p> Signup and view all the answers

    What is a critical tool for economic analysis and policy formulation?

    <p>Perfect markets and perfect competition</p> Signup and view all the answers

    What is a characteristic of imperfect markets?

    <p>Lack of perfect competition</p> Signup and view all the answers

    What is a barrier to entry that helps maintain a monopoly's exclusive control?

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

    What is a characteristic of oligopolies?

    <p>Many firms dominate the market</p> Signup and view all the answers

    What is a consequence of imperfect competition?

    <p>Market inefficiencies</p> Signup and view all the answers

    What is a characteristic of monopolistic competition?

    <p>Firms sell differentiated products</p> Signup and view all the answers

    What influences the dynamics of imperfect markets?

    <p>Market structure and strategic behavior of firms</p> Signup and view all the answers

    What is the goal of firms in imperfect markets?

    <p>To maximize profits</p> Signup and view all the answers

    What is a characteristic of long-term dynamics in perfect markets?

    <p>Firms make normal profits</p> Signup and view all the answers

    What is the primary goal of a firm in a perfect market?

    <p>To maximize profit</p> Signup and view all the answers

    What is a characteristic of a perfectly competitive market?

    <p>Homogeneous products</p> Signup and view all the answers

    What is the significance of perfect information in a perfect market?

    <p>It ensures that no single entity can wield undue influence</p> Signup and view all the answers

    What is the main distinction between an industry and an individual business in a perfect market?

    <p>The total output and market prices</p> Signup and view all the answers

    What is the purpose of revenue and cost concepts in a perfect market?

    <p>To inform decision-making on output and pricing strategies</p> Signup and view all the answers

    What is a characteristic of individual businesses in a perfect market?

    <p>They are price takers</p> Signup and view all the answers

    What is the result of numerous buyers and sellers in a perfect market?

    <p>It makes it impossible for single entities to influence market prices</p> Signup and view all the answers

    What determines the market price in a perfect market?

    <p>The interaction of numerous buyers and sellers</p> Signup and view all the answers

    What is a primary goal of government intervention in imperfect markets?

    <p>To increase market competition and reduce inefficiencies</p> Signup and view all the answers

    What type of goods are typically underprovided by private markets?

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

    What is a consequence of asymmetric information in markets?

    <p>Reduced consumer welfare</p> Signup and view all the answers

    What is a cause of market failures?

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

    What is a type of inefficiency that arises from the misallocation of resources?

    <p>Allocative inefficiency</p> Signup and view all the answers

    What is a consequence of market failures?

    <p>Economic inequities and social issues</p> Signup and view all the answers

    What is an example of a negative externality?

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

    What is a goal of government intervention in market failures?

    <p>To correct market failures and promote efficiency</p> Signup and view all the answers

    What is a characteristic of imperfect markets?

    <p>Monopolies and oligopolies</p> Signup and view all the answers

    What is a way to address market failures?

    <p>Imposing taxes on negative externalities</p> Signup and view all the answers

    What is a characteristic of monopolies in imperfect markets?

    <p>A single firm dominating the market with no close substitutes</p> Signup and view all the answers

    What is the result of imperfect competition in markets?

    <p>Allocative and productive inefficiencies</p> Signup and view all the answers

    What is the primary goal of government intervention in imperfect markets?

    <p>To enhance competitive outcomes and protect consumer interests</p> Signup and view all the answers

    What is a characteristic of oligopolies in imperfect markets?

    <p>Firms producing differentiated products with some interdependence</p> Signup and view all the answers

    What is the result of monopolistic competition in markets?

    <p>Lower prices and higher output due to competitive pressure</p> Signup and view all the answers

    What is a type of inefficiency that arises from the underutilization of resources?

    <p>Productive inefficiency</p> Signup and view all the answers

    What is the primary goal of cost-benefit analysis in public policy?

    <p>To ensure resources are used efficiently and enhance social welfare</p> Signup and view all the answers

    What is the consequence of imperfect competition on economic welfare?

    <p>Decreased economic welfare due to welfare losses</p> Signup and view all the answers

    What is the characteristic of firms in monopolistic competition?

    <p>Firms have some control over prices due to product differentiation</p> Signup and view all the answers

    What is inflation?

    <p>A sustained increase in the general price level of goods and services</p> Signup and view all the answers

    What is the main consequence of inflation?

    <p>Reduced purchasing power</p> Signup and view all the answers

    What is the impact of imperfect competition on market prices?

    <p>Prices are higher than marginal costs</p> Signup and view all the answers

    What is a characteristic of hyperinflation?

    <p>Extremely high and accelerating inflation</p> Signup and view all the answers

    What is the role of government intervention in imperfect markets?

    <p>To enhance competitive outcomes and protect consumer interests</p> Signup and view all the answers

    What is a measure used to combat inflation?

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

    What is the target inflation rate in South Africa?

    <p>3% to 6%</p> Signup and view all the answers

    What is a type of inflation that strips out volatile items like food and energy?

    <p>Core inflation</p> Signup and view all the answers

    What is a consequence of inflation?

    <p>Reduced purchasing power and income redistribution</p> Signup and view all the answers

    What is the view that suggests inflation is a result of an increase in money supply?

    <p>Monetarists' view</p> Signup and view all the answers

    What is the primary objective of cost-benefit analysis in public policy?

    <p>To ensure resources are used efficiently and enhance social welfare</p> Signup and view all the answers

    What is the primary contribution of tourism to the national GDP of South Africa?

    <p>Through consumption by tourists and indirect supply chain activities</p> Signup and view all the answers

    What is a major environmental challenge posed by high tourist activity in South Africa?

    <p>Resource depletion and waste management</p> Signup and view all the answers

    What is recommended to enhance the cultural tourism experience in South Africa?

    <p>Promoting indigenous knowledge systems</p> Signup and view all the answers

    What is a key policy recommendation for sustainable tourism development in South Africa?

    <p>Implementing strict regulations to preserve natural sites</p> Signup and view all the answers

    What is the significance of environmental sustainability in South Africa?

    <p>Preserving natural sites for future generations</p> Signup and view all the answers

    What is the role of tourism in employment creation in South Africa?

    <p>Directly employing 7% of the workforce</p> Signup and view all the answers

    What is a key aspect of strategic spatial distribution in South Africa?

    <p>Developing under-explored areas to divert tourist flows</p> Signup and view all the answers

    What is the primary goal of marketing and promotion strategies in tourism development?

    <p>Showcasing South Africa's diverse attractions</p> Signup and view all the answers

    What is a key benefit of tourism in South Africa?

    <p>Boosting the national GDP through consumption and supply chain activities</p> Signup and view all the answers

    What is the main objective of education and training in the tourism sector?

    <p>Providing high-quality services to tourists</p> Signup and view all the answers

    What is the primary goal of environmental sustainability?

    <p>To ensure the long-term health and efficiency of the environment and its ecosystems</p> Signup and view all the answers

    What is the main difference between conservation and preservation?

    <p>Conservation involves managing human use of the biosphere, while preservation involves protecting ecosystems and biodiversity from harm</p> Signup and view all the answers

    What is the primary cause of climate change?

    <p>Greenhouse gas emissions</p> Signup and view all the answers

    What is the focus of the Rio de Janeiro Summit (UNCED 1992)?

    <p>To promote sustainable development and build a global partnership</p> Signup and view all the answers

    What is the aim of the Kyoto Protocol?

    <p>To reduce greenhouse gas emissions</p> Signup and view all the answers

    What is a key aspect of sustainable development?

    <p>Meeting the needs of the present without compromising the ability of future generations to meet their own needs</p> Signup and view all the answers

    What is a challenge facing the South African government's environmental sustainability interventions?

    <p>Enforcement, funding, and achieving the desired balance between economic development and environmental protection</p> Signup and view all the answers

    What is a market mechanism to ensure sustainability?

    <p>Environmental taxes and tradeable permits</p> Signup and view all the answers

    What is the primary goal of the Paris Agreement?

    <p>To keep a global temperature rise this century well below 2 degrees Celsius above pre-industrial levels</p> Signup and view all the answers

    What is the focus of the Johannesburg Summit (WSSD 2002)?

    <p>To further the goals established in Rio, emphasizing the need to enhance the implementation of sustainable development practices globally</p> Signup and view all the answers

    What is the primary objective of a firm in a perfect market?

    <p>To maximize profit</p> Signup and view all the answers

    What characterizes a perfectly competitive market?

    <p>Multiple buyers and sellers</p> Signup and view all the answers

    What is a key feature of products in a perfectly competitive market?

    <p>Homogeneous goods</p> Signup and view all the answers

    What is the significance of perfect information in a perfect market?

    <p>It ensures maximum efficiency</p> Signup and view all the answers

    What is a characteristic of individual businesses in a perfect market?

    <p>Price taker</p> Signup and view all the answers

    What is the main distinction between an industry and an individual business in a perfect market?

    <p>Industry comprises multiple businesses</p> Signup and view all the answers

    What do revenue and cost concepts help with in a perfect market?

    <p>Decision-making</p> Signup and view all the answers

    What is a result of numerous buyers and sellers in a perfect market?

    <p>Impossible for single entities to influence market prices</p> Signup and view all the answers

    What happens when marginal revenue equals marginal cost in a firm?

    <p>The firm will maintain the current level of production.</p> Signup and view all the answers

    What is a characteristic of imperfect markets?

    <p>Firms have some degree of market power.</p> Signup and view all the answers

    What is the goal of firms in imperfect markets?

    <p>To maximize profits.</p> Signup and view all the answers

    What is a characteristic of monopolistic competition?

    <p>Many firms produce differentiated products.</p> Signup and view all the answers

    What happens to economic profits in a monopolistically competitive market?

    <p>They tend to decrease over time.</p> Signup and view all the answers

    What influences the dynamics of imperfect markets?

    <p>The interplay of cost and revenue curves and market structure</p> Signup and view all the answers

    What is a characteristic of a monopoly?

    <p>A single firm produces the entire supply of a product or service.</p> Signup and view all the answers

    What is a characteristic of oligopolies?

    <p>A few firms dominate the market.</p> Signup and view all the answers

    What is the main distinction between perfect and imperfect markets?

    <p>The degree of market power held by firms.</p> Signup and view all the answers

    What is the goal of governments in promoting perfect competition?

    <p>To enhance economic efficiency and equity.</p> Signup and view all the answers

    What is a key characteristic of a monopoly?

    <p>A single firm dominating the entire market</p> Signup and view all the answers

    What is a consequence of imperfect competition?

    <p>Lower output and higher prices</p> Signup and view all the answers

    Why do governments intervene in imperfect markets?

    <p>To enhance competitive outcomes and protect consumer interests</p> Signup and view all the answers

    What is a key feature of an oligopoly?

    <p>A few firms competing with each other</p> Signup and view all the answers

    What is a characteristic of monopolistic competition?

    <p>Many firms selling differentiated products</p> Signup and view all the answers

    What can lead to welfare losses in imperfect markets?

    <p>Lower output and higher prices</p> Signup and view all the answers

    What is a key difference between monopolies and oligopolies?

    <p>The number of firms in the market</p> Signup and view all the answers

    What is a consequence of imperfect markets?

    <p>Allocative and productive inefficiencies</p> Signup and view all the answers

    What is a key characteristic of monopolies?

    <p>A single firm dominating the entire market</p> Signup and view all the answers

    What is a goal of government intervention in imperfect markets?

    <p>To enhance competitive outcomes and protect consumer interests</p> Signup and view all the answers

    What is the primary reason for government intervention in imperfect markets?

    <p>To increase market competition and reduce inefficiencies</p> Signup and view all the answers

    What is an example of a negative externality?

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

    What is a characteristic of public goods?

    <p>They are non-excludable and non-rivalrous</p> Signup and view all the answers

    What is a consequence of market failures?

    <p>Net social welfare loss</p> Signup and view all the answers

    What is a type of inefficiency that arises from the underutilization of resources?

    <p>Productive inefficiency</p> Signup and view all the answers

    What is a cause of market failures?

    <p>Imperfect competition</p> Signup and view all the answers

    What is a goal of government intervention in market failures?

    <p>To correct market failures and increase efficiency</p> Signup and view all the answers

    What is an example of a positive externality?

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

    What is a consequence of imperfect distribution of income and wealth?

    <p>Skewed production towards high-end goods and services</p> Signup and view all the answers

    What is a type of market failure that arises from the unequal distribution of information?

    <p>Asymmetric information</p> Signup and view all the answers

    What is the primary goal of cost-benefit analysis in public policy?

    <p>To evaluate the social costs and benefits of government interventions</p> Signup and view all the answers

    What type of inflation measures the change in price for a basket of goods and services consumed by households?

    <p>Consumer Inflation</p> Signup and view all the answers

    What is the result of an increase in the cost of production due to higher wages, raw material costs, and other expenses?

    <p>Cost-push Inflation</p> Signup and view all the answers

    What is the target range for inflation set by the South African Reserve Bank?

    <p>3% to 6%</p> Signup and view all the answers

    What is the consequence of inflation on savings?

    <p>Reduces the real value of saved money</p> Signup and view all the answers

    What is the monetary policy tool used to control money supply and demand?

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

    What is the characteristic of hyperinflation?

    <p>Extremely high and typically accelerating inflation</p> Signup and view all the answers

    What is the consequence of inflation on income distribution?

    <p>Redistributes income from creditors to debtors</p> Signup and view all the answers

    What is the goal of wage controls as a measure to combat inflation?

    <p>To limit wage increases to prevent spiraling inflation</p> Signup and view all the answers

    What is the type of inflation that combines high inflation with stagnant economic growth and high unemployment?

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

    What percentage of South Africa's workforce is directly employed by tourism?

    <p>7%</p> Signup and view all the answers

    What is a key way that tourism promotes poverty reduction in rural areas?

    <p>By stimulating local economies</p> Signup and view all the answers

    What is a major environmental challenge posed by high tourist activity?

    <p>Increased water consumption</p> Signup and view all the answers

    What is recommended to enhance the cultural tourism experience in South Africa?

    <p>Promoting indigenous knowledge systems</p> Signup and view all the answers

    What is a key policy recommendation for sustainable tourism development?

    <p>Investing in improving tourism-related infrastructure</p> Signup and view all the answers

    What type of tourism involves exploring natural areas while promoting conservation?

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

    What is the main goal of environmental sustainability?

    <p>To ensure that future generations can meet their needs without compromise</p> Signup and view all the answers

    What is conservation?

    <p>The management of human use of the biosphere for sustainable benefit</p> Signup and view all the answers

    Why is it essential to develop under-explored areas in South Africa?

    <p>To divert tourist flows from over-visited sites</p> Signup and view all the answers

    What is a key economic impact of tourism in South Africa?

    <p>Significantly contributing to the national GDP</p> Signup and view all the answers

    What is a major environmental challenge?

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

    What is a market mechanism to ensure sustainability?

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

    What is a crucial aspect of environmental sustainability?

    <p>Preserving natural resources and the environment</p> Signup and view all the answers

    Why is education and training recommended for the tourism workforce?

    <p>To provide high-quality services to tourists</p> Signup and view all the answers

    What is the aim of the Paris Agreement?

    <p>To reduce greenhouse gas emissions and limit global warming</p> Signup and view all the answers

    What is the focus of the Johannesburg Summit?

    <p>To further the goals established in Rio</p> Signup and view all the answers

    What is Agenda 21?

    <p>A comprehensive plan of action for sustainable development</p> Signup and view all the answers

    What is a key aspect of sustainable development?

    <p>Promoting social and environmental welfare</p> Signup and view all the answers

    What is a challenge facing the South African government's environmental sustainability interventions?

    <p>Lack of funding and enforcement</p> Signup and view all the answers

    What is pollution?

    <p>The introduction of contaminants into the natural environment</p> Signup and view all the answers

    What is the primary objective of firms in a perfect market?

    <p>To maximize profit</p> Signup and view all the answers

    What characterizes products in a perfectly competitive market?

    <p>Homogeneity of goods</p> Signup and view all the answers

    What is the impact of numerous buyers and sellers in a perfect market?

    <p>No influence over market prices</p> Signup and view all the answers

    What is the significance of perfect information in a perfect market?

    <p>Complete information about market conditions</p> Signup and view all the answers

    What is the distinction between an industry and an individual business in a perfect market?

    <p>An industry has multiple businesses, an individual business is a single entity</p> Signup and view all the answers

    What is the purpose of revenue and cost concepts in a perfect market?

    <p>To make decisions on output and pricing strategies</p> Signup and view all the answers

    What is a characteristic of individual businesses in a perfect market?

    <p>Price takers</p> Signup and view all the answers

    What is the condition of the market in a perfect market?

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

    What is a characteristic of a monopoly?

    <p>A single firm dominating the market with no close substitutes</p> Signup and view all the answers

    What is a consequence of monopolies and oligopolies?

    <p>Allocative and productive inefficiencies</p> Signup and view all the answers

    Why do governments intervene in imperfect markets?

    <p>To enhance competitive outcomes and protect consumer interests</p> Signup and view all the answers

    What is a characteristic of oligopolies?

    <p>A few firms producing homogeneous or differentiated products</p> Signup and view all the answers

    What is a consequence of monopolistic competition?

    <p>Redundant expenditures on advertising and marketing</p> Signup and view all the answers

    What determines the dynamics of imperfect markets?

    <p>Demand and cost structures</p> Signup and view all the answers

    What is a characteristic of imperfect markets?

    <p>Deviation from the idealized model of perfect competition</p> Signup and view all the answers

    What is the goal of government intervention in imperfect markets?

    <p>To enhance competitive outcomes and protect consumer interests</p> Signup and view all the answers

    What is a consequence of allocative inefficiency in imperfect markets?

    <p>Increased welfare losses</p> Signup and view all the answers

    What is a characteristic of monopolistic competition?

    <p>Many firms producing differentiated products</p> Signup and view all the answers

    When does a firm in a perfectly competitive market increase production?

    <p>When marginal revenue exceeds marginal cost</p> Signup and view all the answers

    What is a characteristic of imperfect markets?

    <p>Firms have market power</p> Signup and view all the answers

    What is a characteristic of monopolistic competition?

    <p>Firms differentiate their products</p> Signup and view all the answers

    What happens to economic profits in an oligopoly?

    <p>Firms earn high economic profits</p> Signup and view all the answers

    What is the shape of the demand curve for an oligopolist?

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

    Why do governments aim to emulate the conditions of perfect competition?

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

    What is a characteristic of a perfectly competitive market?

    <p>Firms are price-takers</p> Signup and view all the answers

    What is the goal of firms in a perfectly competitive market?

    <p>To maximize profits</p> Signup and view all the answers

    What is a characteristic of a monopoly?

    <p>A single firm controls the entire supply of a product or service</p> Signup and view all the answers

    What influences the dynamics of imperfect markets?

    <p>The interplay of cost and revenue curves, market structure, and the strategic behavior of firms</p> Signup and view all the answers

    What is the primary goal of government intervention in imperfect markets?

    <p>To increase market competition and reduce inefficiencies</p> Signup and view all the answers

    Which of the following is a characteristic of public goods?

    <p>They are non-excludable and non-rivalrous</p> Signup and view all the answers

    What is a consequence of imperfect competition?

    <p>Higher prices and reduced output</p> Signup and view all the answers

    Which of the following is an example of a negative externality?

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

    What is a type of inefficiency that arises from the underutilization of resources?

    <p>Productive inefficiency</p> Signup and view all the answers

    What is a goal of government intervention in market failures?

    <p>To correct market failures and promote efficient allocation of resources</p> Signup and view all the answers

    Which of the following is a cause of market failures?

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

    What is a consequence of asymmetric information?

    <p>Choices that do not maximize welfare</p> Signup and view all the answers

    What is a type of goods that are underprovided by private markets?

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

    What is a result of imperfect distribution of income and wealth?

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

    What percentage of South Africa's workforce is directly employed by tourism?

    <p>7%</p> Signup and view all the answers

    What is a key way that tourism promotes poverty reduction in rural areas?

    <p>By stimulating local economies</p> Signup and view all the answers

    What is a major environmental challenge posed by high tourist activity?

    <p>Increased resource depletion</p> Signup and view all the answers

    What is recommended to enhance the cultural tourism experience in South Africa?

    <p>Promoting indigenous knowledge systems</p> Signup and view all the answers

    What is a key policy recommendation for sustainable tourism development?

    <p>Enhancing environmental management</p> Signup and view all the answers

    What type of tourism involves exploring natural areas while promoting conservation?

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

    Why is it essential to develop under-explored areas in South Africa?

    <p>To divert tourist flows from over-visited sites</p> Signup and view all the answers

    What is a key economic impact of tourism in South Africa?

    <p>Significantly contributing to the national GDP</p> Signup and view all the answers

    What is a crucial aspect of environmental sustainability?

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

    Why is education and training recommended for the tourism workforce?

    <p>To provide high-quality services to tourists</p> Signup and view all the answers

    What is the primary purpose of cost-benefit analysis in public policy?

    <p>To evaluate the social costs and benefits of interventions</p> Signup and view all the answers

    What is the result of a sustained increase in the general price level of goods and services in an economy?

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

    What is the primary goal of monetary policy in controlling inflation?

    <p>To manage the money supply and demand</p> Signup and view all the answers

    What is the consequence of inflation on the purchasing power of money?

    <p>It reduces the purchasing power of money</p> Signup and view all the answers

    What is the primary goal of fiscal policy in controlling inflation?

    <p>To influence economic activity</p> Signup and view all the answers

    What is the consequence of inflation on savings?

    <p>It discourages saving and investment</p> Signup and view all the answers

    What is the primary goal of the South African Reserve Bank's inflation targeting strategy?

    <p>To maintain inflation within a range of 3% to 6%</p> Signup and view all the answers

    What is the type of inflation that strips out volatile items like food and energy?

    <p>Core Inflation</p> Signup and view all the answers

    What is the type of inflation that occurs when aggregate demand in an economy outpaces aggregate supply?

    <p>Demand-pull Inflation</p> Signup and view all the answers

    What is the consequence of inflation on debtors and creditors?

    <p>It benefits debtors at the expense of creditors</p> Signup and view all the answers

    What is environmental sustainability?

    <p>The ability to use natural resources indefinitely without compromising the needs of future generations</p> Signup and view all the answers

    What is the primary goal of conservation?

    <p>To protect ecosystems, biodiversity, and environments from harmful human activities</p> Signup and view all the answers

    What is the main challenge facing the South African government's environmental sustainability interventions?

    <p>Challenges in balancing economic development with environmental protection</p> Signup and view all the answers

    What is the aim of the Rio de Janeiro Summit?

    <p>To establish a global partnership for sustainable development</p> Signup and view all the answers

    What is the focus of the Johannesburg Summit?

    <p>To enhance the implementation of sustainable development practices globally</p> Signup and view all the answers

    What is a market mechanism to ensure sustainability?

    <p>Implementing environmental taxes and tradeable permits</p> Signup and view all the answers

    What is the primary goal of the Kyoto Protocol?

    <p>To reduce greenhouse gas emissions and combat climate change</p> Signup and view all the answers

    What is the main goal of sustainable development?

    <p>To end poverty, protect the planet, and ensure peace and prosperity</p> Signup and view all the answers

    What is a key aspect of sustainable development?

    <p>Balancing economic development with environmental protection</p> Signup and view all the answers

    What is the primary goal of the Paris Agreement?

    <p>To keep a global temperature rise this century well below 2 degrees Celsius</p> Signup and view all the answers

    What is the primary goal of firms in a perfect market?

    <p>To maximize profit</p> Signup and view all the answers

    What is the ideal market structure that governments aim to emulate?

    <p>Perfect Competition</p> Signup and view all the answers

    What is the characteristic of products in a perfectly competitive market?

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

    What is the characteristic of a monopoly?

    <p>A single company controlling the entire supply</p> Signup and view all the answers

    What is the result of numerous buyers and sellers in a perfect market?

    <p>Impossible for single entities to influence market prices</p> Signup and view all the answers

    What is the significance of perfect information in a perfect market?

    <p>Ensures no single entity can wield undue influence</p> Signup and view all the answers

    What is the primary goal of firms in imperfect markets?

    <p>To maximize economic profits</p> Signup and view all the answers

    What is the main distinction between an industry and an individual business in a perfect market?

    <p>Industry is a group of businesses, individual business is a single entity</p> Signup and view all the answers

    What is the main difference between perfect and imperfect markets?

    <p>Degree of competition among firms</p> Signup and view all the answers

    What is the result of numerous buyers and sellers in a perfect market?

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

    Which type of market structure is characterized by a single firm dominating the entire market for a product or service?

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

    What is the purpose of revenue and cost concepts in a perfect market?

    <p>To make decisions on output and pricing strategies</p> Signup and view all the answers

    What is a characteristic of individual businesses in a perfect market?

    <p>They are price takers</p> Signup and view all the answers

    What is the main characteristic of oligopolies?

    <p>Few firms dominating a market</p> Signup and view all the answers

    What is a key feature of oligopolies?

    <p>Interdependence of firms</p> Signup and view all the answers

    What is a characteristic of monopolistic competition?

    <p>Firms selling differentiated products that are not perfect substitutes</p> Signup and view all the answers

    What is the condition of the market in a perfect market?

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

    What is the long-term dynamic in perfectly competitive markets?

    <p>Firms enter and exit the market based on profits and losses</p> Signup and view all the answers

    What is the result of imperfect competition?

    <p>Market inefficiencies</p> Signup and view all the answers

    What is a consequence of imperfect competition?

    <p>Lower output and higher prices</p> Signup and view all the answers

    What is the primary goal of government intervention in imperfect markets?

    <p>To prevent monopolies and foster fair competition</p> Signup and view all the answers

    Why do governments intervene in imperfect markets?

    <p>To reduce welfare losses to society</p> Signup and view all the answers

    What is the main difference between monopolistic competition and perfect competition?

    <p>Degree of product differentiation</p> Signup and view all the answers

    What is a characteristic of monopolies?

    <p>A single firm dominating the entire market</p> Signup and view all the answers

    What is a result of imperfect competition?

    <p>Higher prices and lower output</p> Signup and view all the answers

    What is a feature of monopolistic competition?

    <p>Firms advertising and differentiating their products</p> Signup and view all the answers

    Why do monopolies often achieve long-term economic profits?

    <p>Because of barriers to entry, such as patents and regulatory measures</p> Signup and view all the answers

    What is a goal of government intervention in imperfect markets?

    <p>To control monopolistic and oligopolistic powers</p> Signup and view all the answers

    What is a consequence of market failures?

    <p>Social welfare loss and inefficient allocation of resources</p> Signup and view all the answers

    What is a cause of market failures?

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

    What is a characteristic of public goods?

    <p>Non-excludable and non-rivalrous</p> Signup and view all the answers

    What is an example of a negative externality?

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

    What is a goal of government intervention in market failures?

    <p>To correct market failures and increase economic efficiency</p> Signup and view all the answers

    What is a type of inefficiency that arises from the underutilization of resources?

    <p>Productive inefficiency</p> Signup and view all the answers

    What is a cause of imperfect competition?

    <p>A small number of firms and high barriers to entry</p> Signup and view all the answers

    What is a consequence of asymmetric information?

    <p>Choices that do not maximize welfare</p> Signup and view all the answers

    What is a type of goods that may be underprovided by the private market?

    <p>Merit goods</p> Signup and view all the answers

    What is a goal of government regulation in imperfect markets?

    <p>To increase market competition and reduce inefficiencies</p> Signup and view all the answers

    What is the primary goal of cost-benefit analysis in public policy?

    <p>To evaluate the social costs and benefits of interventions aimed at correcting market failures</p> Signup and view all the answers

    What is the main difference between consumer inflation and headline inflation?

    <p>Consumer inflation measures the change in price for a basket of goods and services consumed by households, while headline inflation is the total unadjusted inflation</p> Signup and view all the answers

    What is the result of extremely high and typically accelerating inflation?

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

    What is the primary objective of the South African Reserve Bank's inflation targeting?

    <p>To maintain inflation within a manageable range of 3% to 6%</p> Signup and view all the answers

    What is the consequence of inflation on savings?

    <p>It reduces the real value of saved money</p> Signup and view all the answers

    What is the impact of inflation on debtors and creditors?

    <p>It benefits debtors at the expense of creditors</p> Signup and view all the answers

    What is the name of the index that measures price changes before they reach the consumer?

    <p>Producer Price Index (PPI)</p> Signup and view all the answers

    What is the term for inflation influenced by prices set by the government or regulatory bodies?

    <p>Administered Prices Inflation</p> Signup and view all the answers

    What is the term for a situation where high inflation is combined with stagnant economic growth and high unemployment?

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

    What is the main tool used by governments to evaluate the social costs and benefits of interventions aimed at correcting market failures?

    <p>Cost-benefit analysis</p> Signup and view all the answers

    What percentage of South Africa's workforce is directly employed by tourism?

    <p>7%</p> Signup and view all the answers

    What is a way that tourism promotes poverty reduction in rural areas?

    <p>By stimulating local economies</p> Signup and view all the answers

    What is a major environmental challenge posed by high tourist activity?

    <p>Resource depletion</p> Signup and view all the answers

    What is recommended to enhance the cultural tourism experience in South Africa?

    <p>Promoting indigenous knowledge systems</p> Signup and view all the answers

    What is a key policy recommendation for sustainable tourism development?

    <p>Environmental management</p> Signup and view all the answers

    What type of tourism involves exploring natural areas while promoting conservation?

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

    Why is it essential to develop under-explored areas in South Africa?

    <p>To divert tourist flows from over-visited sites</p> Signup and view all the answers

    What is a key economic impact of tourism in South Africa?

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

    What is a crucial aspect of environmental sustainability?

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

    Why is education and training recommended for the tourism workforce?

    <p>To provide high-quality services to tourists</p> Signup and view all the answers

    What is the primary goal of environmental sustainability?

    <p>To ensure the long-term health and efficiency of the environment and its ecosystems</p> Signup and view all the answers

    What is conservation?

    <p>The management of human use of the biosphere to yield the greatest sustainable benefit</p> Signup and view all the answers

    What is the primary cause of climate change?

    <p>Greenhouse gas emissions</p> Signup and view all the answers

    What is the goal of the Kyoto Protocol?

    <p>To reduce greenhouse gas emissions globally</p> Signup and view all the answers

    What is the focus of the Sustainable Development Goals (SDGs)?

    <p>To reduce poverty and protect the planet</p> Signup and view all the answers

    What is a major challenge facing the South African government's environmental sustainability interventions?

    <p>Challenges in enforcement, funding, and achieving the desired balance between economic development and environmental protection</p> Signup and view all the answers

    What is the primary goal of education and awareness in environmental sustainability?

    <p>To increase public understanding of environmental impacts and sustainable practices</p> Signup and view all the answers

    What is the aim of the Paris Agreement?

    <p>To strengthen the global response to the threat of climate change</p> Signup and view all the answers

    What is the focus of the Johannesburg Summit?

    <p>To further the goals established in the Rio de Janeiro Summit</p> Signup and view all the answers

    What is Agenda 21?

    <p>A comprehensive plan of action to build a global partnership for sustainable development</p> Signup and view all the answers

    What is the primary goal of cost-benefit analysis in public policy?

    <p>To evaluate the social costs and benefits of interventions aimed at correcting market failures</p> Signup and view all the answers

    What is the main difference between consumer inflation and headline inflation?

    <p>Consumer inflation measures the change in price for a basket of goods and services consumed by households, while headline inflation measures the total unadjusted inflation</p> Signup and view all the answers

    What is the result of demand-pull inflation?

    <p>An increase in aggregate demand</p> Signup and view all the answers

    In a perfect market, what is the relationship between marginal cost and marginal revenue when profits are maximized?

    <p>Marginal cost equals marginal revenue</p> Signup and view all the answers

    What is the primary objective of firms in an imperfect market?

    <p>To maximize profits</p> Signup and view all the answers

    What is the consequence of inflation on savings?

    <p>It reduces the real value of saved money</p> Signup and view all the answers

    What is the aim of the South African Reserve Bank's inflation targeting?

    <p>To maintain inflation within a manageable range of 3% to 6%</p> Signup and view all the answers

    What is a characteristic of monopolistic competition?

    <p>Many firms sell differentiated products</p> Signup and view all the answers

    What is the impact of inflation on debtors and creditors?

    <p>It benefits debtors at the expense of creditors</p> Signup and view all the answers

    Why do firms in imperfect markets face different revenue and cost curves?

    <p>Because they have different market structures</p> Signup and view all the answers

    What is a characteristic of hyperinflation?

    <p>An extremely high and typically accelerating inflation rate</p> Signup and view all the answers

    What is the purpose of government intervention in imperfect markets?

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

    What is the primary objective of a firm in a perfect market?

    <p>To maximize profit</p> Signup and view all the answers

    What is the main goal of fiscal policy measures to combat inflation?

    <p>To reduce or increase public spending to influence economic activity</p> Signup and view all the answers

    What is a characteristic of an oligopoly?

    <p>Few firms dominate the market</p> Signup and view all the answers

    What is a characteristic of a perfectly competitive market?

    <p>Numerous buyers and sellers</p> Signup and view all the answers

    What is the result of the interplay of cost and revenue curves in imperfect markets?

    <p>Firms maximize profits where marginal revenue equals marginal cost</p> Signup and view all the answers

    What is the purpose of open market operations in monetary policy?

    <p>To buy or sell government bonds to influence broad money supply</p> Signup and view all the answers

    What is a consequence of stagflation?

    <p>A situation where high inflation is combined with stagnant economic growth and high unemployment</p> Signup and view all the answers

    Why do firms in imperfect markets engage in non-price competition?

    <p>To differentiate their products</p> Signup and view all the answers

    What is the significance of homogeneous products in a perfect market?

    <p>It ensures that no single entity can wield undue influence</p> Signup and view all the answers

    What is the role of individual businesses in a perfect market?

    <p>They are price takers</p> Signup and view all the answers

    What is the long-term outcome of imperfect markets?

    <p>Firms may earn economic profits or incur losses</p> Signup and view all the answers

    What is the significance of perfect competition in economics?

    <p>It serves as a benchmark for evaluating real-world market structures</p> Signup and view all the answers

    What is the purpose of revenue and cost concepts in a perfect market?

    <p>To aid in decision-making</p> Signup and view all the answers

    What is a characteristic of an industry in a perfect market?

    <p>It comprises multiple businesses producing identical products</p> Signup and view all the answers

    What is the result of perfect information in a perfect market?

    <p>It ensures no single entity can wield undue influence</p> Signup and view all the answers

    What is the condition of the market in a perfect market?

    <p>It is unregulated by the government</p> Signup and view all the answers

    What is the primary reason for government intervention in imperfect markets?

    <p>To increase market competition and reduce inefficiencies</p> Signup and view all the answers

    What is a consequence of externalities?

    <p>Net social welfare loss</p> Signup and view all the answers

    What is an example of a public good?

    <p>National defense</p> Signup and view all the answers

    What is a cause of market failures?

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

    What is a consequence of imperfect competition?

    <p>Allocative inefficiency and potential consumer harm</p> Signup and view all the answers

    What is a type of inefficiency that arises from the underutilization of resources?

    <p>Productive inefficiency</p> Signup and view all the answers

    What is a consequence of asymmetric information?

    <p>Choices that do not maximize welfare</p> Signup and view all the answers

    What is a goal of government intervention in market failures?

    <p>To correct market failures and promote efficient outcomes</p> Signup and view all the answers

    What is a characteristic of merit goods?

    <p>They are underprovided by the market</p> Signup and view all the answers

    What is a consequence of market failures on the less wealthy?

    <p>They are disproportionately affected by market failures</p> Signup and view all the answers

    What is a key feature of imperfect markets?

    <p>Barriers to entry for new firms</p> Signup and view all the answers

    What is a consequence of monopolies and oligopolies?

    <p>Allocative and productive inefficiencies</p> Signup and view all the answers

    What is the primary goal of government intervention in imperfect markets?

    <p>To enhance competitive outcomes and protect consumer interests</p> Signup and view all the answers

    What is a characteristic of monopolistic competition?

    <p>Many firms sell differentiated products</p> Signup and view all the answers

    What percentage of South Africa's workforce is directly employed by the tourism sector?

    <p>7%</p> Signup and view all the answers

    What is a result of imperfect competition in markets?

    <p>Lower output and higher prices</p> Signup and view all the answers

    What is the primary goal of environmental sustainability?

    <p>To preserve natural resources for future generations</p> Signup and view all the answers

    What is a key difference between monopolies and oligopolies?

    <p>The number of firms in the market</p> Signup and view all the answers

    Which type of tourism involves exploring natural areas while promoting conservation?

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

    What is a consequence of market power in imperfect markets?

    <p>Lower output and higher prices</p> Signup and view all the answers

    What is a major environmental challenge posed by high tourist activity?

    <p>Resource depletion</p> Signup and view all the answers

    Why is it essential to develop under-explored areas in South Africa?

    <p>To divert tourist flows from over-visited sites</p> Signup and view all the answers

    What is a characteristic of oligopolies?

    <p>Firms are interdependent in their pricing and output decisions</p> Signup and view all the answers

    What is a result of imperfect competition in terms of resource allocation?

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

    What is a key policy recommendation for sustainable tourism development?

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

    What is the main difference between monopolies and perfect competition?

    <p>The number of firms in the market</p> Signup and view all the answers

    What is the significance of indigenous knowledge systems in cultural tourism?

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

    What is a key economic impact of tourism in South Africa?

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

    What is recommended to enhance the cultural tourism experience in South Africa?

    <p>Promoting indigenous knowledge systems</p> Signup and view all the answers

    Why is education and training recommended for the tourism workforce?

    <p>To provide high-quality services to tourists</p> Signup and view all the answers

    What is the primary goal of environmental sustainability?

    <p>To ensure that future generations can meet their needs without compromise</p> Signup and view all the answers

    What is the main difference between conservation and preservation?

    <p>Conservation is about managing human use of the biosphere, while preservation is about protecting ecosystems</p> Signup and view all the answers

    What is the primary cause of climate change?

    <p>Greenhouse gas emissions</p> Signup and view all the answers

    What is a key measure to ensure environmental sustainability?

    <p>Implementing environmental taxes</p> Signup and view all the answers

    What was the main goal of the Rio de Janeiro Summit?

    <p>To establish a global partnership for sustainable development</p> Signup and view all the answers

    What is the primary goal of the Paris Agreement?

    <p>To keep a global temperature rise well below 2 degrees Celsius above pre-industrial levels</p> Signup and view all the answers

    What is a key challenge facing the South African government's environmental sustainability interventions?

    <p>Enforcement challenges and achieving the desired balance between economic development and environmental protection</p> Signup and view all the answers

    What is a key aspect of sustainable development?

    <p>Meeting the needs of present and future generations</p> Signup and view all the answers

    What is the primary goal of education and awareness in promoting environmental sustainability?

    <p>To promote sustainable development practices</p> Signup and view all the answers

    What is the main goal of the Sustainable Development Goals (SDGs)?

    <p>To end poverty and protect the planet by 2030</p> Signup and view all the answers

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