476 Questions
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
What is the goal of governments in creating a perfect competitive market?
To enhance economic efficiency
What characterizes a monopoly?
A single company controlling the entire supply
What is a characteristic of oligopolies?
A few firms dominating the market
What is the goal of firms in monopolistic competition?
To attract consumers through product differentiation
What happens to economic profits in a monopolistically competitive market?
They decrease in the long run
What determines the shape of the demand curve for an oligopolist?
The kinked demand curve prevents competitors from altering their prices
Why do monopolies often achieve long-term economic profits?
Due to the barriers to entry preventing new entrants
What happens when marginal revenue equals marginal cost in an imperfect market?
The firm maximizes profits
What influences the dynamics of imperfect markets?
The interplay of cost and revenue curves
What is the main reason for government intervention in imperfect markets?
To harness the benefits of market competition and mitigate its downsides
Which of the following is an example of a positive externality?
Education
What is a characteristic of public goods?
They are non-excludable and non-rivalrous
What is a consequence of imperfect competition?
Higher prices and reduced output
What is a cause of market failures?
All of the above
What is a type of inefficiency that arises from the underutilization of resources?
Productive inefficiency
What is a consequence of market failures?
Reduced social welfare
How do governments typically provide public goods?
Direct provision by the government
What is an example of a negative externality?
Pollution
What is a goal of government intervention in market failures?
To correct market failures and increase efficiency
What is the primary objective of a firm in a perfect market?
To maximize profit
What is a characteristic of a perfectly competitive market?
Homogeneous products
What is the main distinction between an industry and an individual business in a perfect market?
Industry comprises multiple businesses producing identical products, while individual businesses are price takers
What is the purpose of revenue and cost concepts in a perfect market?
To make decisions on output and pricing strategies
What is a characteristic of individual businesses in a perfect market?
Price taker
What is the result of numerous buyers and sellers in a perfect market?
Impossible for single entities to influence market prices
What is the significance of perfect information in a perfect market?
Ensures no single entity can wield undue influence over the market
What is the condition of the market in a perfect market?
Unregulated by the government
What percentage of South Africa's workforce is directly employed by tourism?
7%
What is a key way that tourism promotes poverty reduction in rural areas?
Resource distribution and local economy stimulation
What is a major environmental challenge posed by high tourist activity?
Resource depletion and waste management
What is recommended to enhance the cultural tourism experience in South Africa?
Promote indigenous knowledge systems
What is a key policy recommendation for sustainable tourism development?
Implement strict environmental regulations
What is a type of tourism that involves exploring natural areas while promoting conservation?
Ecotourism
Why is it essential to develop under-explored areas in South Africa?
To reduce tourist traffic in popular areas
What is a key economic impact of tourism in South Africa?
Significant contribution to national GDP
What is a crucial aspect of environmental sustainability?
Preserving the health and resources of the planet
Why is education and training recommended for the tourism workforce?
To provide high-quality services to tourists
What is environmental sustainability?
The ability of the environment to support economic activity indefinitely
What is the main goal of conservation?
To manage human use of the biosphere for sustainable benefit
What is pollution?
The introduction of contaminants into the natural environment
What is a major environmental challenge?
All of the above
What is a market mechanism to ensure sustainability?
Implementing environmental taxes and tradeable permits
What is the aim of the Paris Agreement?
To reduce greenhouse gas emissions
What is the focus of the Johannesburg Summit?
Furthering the goals established in Rio
What is Agenda 21?
A comprehensive plan of action for sustainable development
What is a challenge facing the South African government's environmental sustainability interventions?
All of the above
What is a key aspect of sustainable development?
Meeting the needs of current and future generations
What is the primary goal of cost-benefit analysis in public policy?
To ensure resources are used efficiently and enhance social welfare
What is the main difference between consumer inflation and headline inflation?
Consumer inflation includes all items in the consumer basket, while headline inflation excludes some items
What is the primary cause of cost-push inflation?
Increase in the cost of production
What is the consequence of inflation on savings?
It reduces the real value of saved money
What is the target inflation range for the South African Reserve Bank?
3% to 6%
What is an example of a monetary policy tool used to combat inflation?
Interest rates
What is the term for an extremely high and typically accelerating inflation?
Hyperinflation
What is the benefit of inflation to debtors?
It reduces the real value of their debt
What is the term for a situation where high inflation is combined with stagnant economic growth and high unemployment?
Stagflation
What is the primary goal of inflation targeting by the South African Reserve Bank?
To maintain inflation within a manageable range
What is a characteristic of a monopoly?
A single firm dominating the entire market
What is the result of allocative inefficiency in imperfect markets?
Lower output and higher prices
What is a key feature of an oligopoly?
Interdependence of firms
What is the result of non-price competition in monopolistic competition?
Increased customer loyalty
What is the primary goal of government intervention in imperfect markets?
To protect consumer interests
What is a characteristic of monopolistic competition?
Many firms selling differentiated products
What is the result of strategic behaviors in oligopolies?
Price fixing and collusive practices
What is the outcome of imperfect markets in terms of economic efficiency?
Allocative inefficiency and productive inefficiency
What is the result of barriers to entry in monopolies?
Sustained profits for the monopolist
What is the outcome of monopolistic competition in the long run?
Normal profits for firms
Which of the following is a characteristic of a perfectly competitive market?
Homogeneous products
What is the primary objective of a firm in a perfect market?
To maximize profit
What is the significance of numerous buyers and sellers in a perfect market?
It makes it impossible for single entities to influence market prices
What is the role of revenue and cost concepts in a perfect market?
To determine profit maximization
What is the main distinction between an industry and an individual business in a perfect market?
Industry is where businesses produce identical products, contributing to the industry's total output
What is the condition of the market in a perfect market?
Unregulated
What is the significance of perfect information in a perfect market?
It ensures that no single entity can wield undue influence over the market
What is a characteristic of individual businesses in a perfect market?
Price takers
What is a key characteristic of a monopoly?
A single firm dominating the market
What is a consequence of imperfect competition?
Higher prices and lower output
Why do governments intervene in imperfect markets?
To enhance competitive outcomes and protect consumer interests
What is a key feature of oligopolies?
Firms selling homogeneous products and interdependent decisions
What is the outcome of monopolistic competition in the long run?
Firms earn normal profits
What is a consequence of monopolies and oligopolies?
Lower output and higher prices
What is a key characteristic of monopolistic competition?
Many firms selling differentiated products
What is the main reason for government intervention in imperfect markets?
To enhance competitive outcomes and protect consumer interests
What is a key difference between monopolies and oligopolies?
Monopolies have a single firm, while oligopolies have few firms
What is a consequence of imperfect markets?
Allocative and productive inefficiencies
What is the primary goal of government intervention in imperfect markets?
To increase market competition and reduce inefficiencies
What is an example of a negative externality?
Pollution
What is a characteristic of public goods?
They are non-excludable and non-rivalrous
What is a consequence of imperfect competition?
Higher prices and reduced output
What is a type of inefficiency that arises from the underutilization of resources?
Productive inefficiency
What is a cause of market failures?
Externalities
What is a consequence of market failures?
Social welfare loss
What is asymmetric information?
When buyers and sellers do not have equal knowledge
What is the goal of government intervention in market failures?
To correct market failures and increase economic efficiency
What is a result of imperfect distribution of income and wealth?
Skewed production towards high-end goods and services
What is the main characteristic of a perfectly competitive market?
No barriers to entry and a large number of firms producing a homogeneous product
What is the result of firms in a perfectly competitive market adjusting their output in response to profits and losses?
An equilibrium where firms make normal profits but no economic profits
What is the purpose of government policies in promoting perfect competition?
To dismantle barriers to entry and promote transparency
What is the shape of the demand curve for an oligopolist?
A kinked curve
What is the main characteristic of a monopolistically competitive market?
Many firms sell products that are differentiated but serve a similar purpose
What is the goal of firms in imperfect markets?
To maximize profits where marginal revenue equals marginal cost
What is a characteristic of monopolies?
A single company or entity controls the entire supply of a product or service
What is the main difference between imperfect markets and perfect competition?
The presence of barriers to entry and the lack of perfect competition
What is the significance of the interplay of cost and revenue curves in imperfect markets?
It influences the strategic behavior of firms
What is the goal of governments in creating competition policies?
To promote transparency and ensure a level playing field in the market
What is the primary goal of cost-benefit analysis in public policy?
To ensure resources are used efficiently and enhance social welfare
What type of inflation occurs when aggregate demand in an economy outpaces aggregate supply?
Demand-pull inflation
What is the primary objective of monetary policy in controlling inflation?
Managing interest rates to control money supply and demand
What is the consequence of inflation on the real value of money?
It reduces the purchasing power of money
What is the target inflation range for the South African Reserve Bank?
3% to 6%
What type of inflation is characterized by extremely high and typically accelerating inflation?
Hyperinflation
What is the result of income redistribution due to inflation?
It benefits debtors at the expense of creditors
What is the primary goal of environmental sustainability?
To ensure the long-term health and efficiency of the environment and its ecosystems
What is a consequence of inflation on savings?
It reduces the real value of saved money
What is a type of inflation that strips out volatile items like food and energy?
Core inflation
What is the main goal of conservation?
To manage human use of the biosphere for sustainable benefit
What is the main cause of air, water, and soil pollution?
Industrial activities and waste mismanagement
What is a situation where high inflation is combined with stagnant economic growth and high unemployment?
Stagflation
What is the focus of the Johannesburg Summit?
To promote sustainable development globally
What is the aim of the Paris Agreement?
To keep global temperature rise well below 2 degrees Celsius
What is the main challenge facing the South African government's environmental sustainability interventions?
Enforcement and achieving a balance between economic development and environmental protection
What is a market mechanism to ensure sustainability?
Environmental taxes and tradeable permits
What is the main goal of preservation?
To protect ecosystems, biodiversity, and environments from harmful human activities
What is the primary goal of Agenda 21?
To promote sustainable development globally
What is the main environmental challenge posed by high tourist activity?
Pollution
What is the percentage of South Africa's workforce directly employed by tourism?
7%
What is the focus of cultural tourism?
Engaging with local arts, museums, and cultural sites
What is a key benefit of tourism in South Africa?
All of the above
What is a major environmental challenge posed by high tourist activity?
Waste management and ecosystem stress
What is a key policy recommendation for sustainable tourism development?
Implementing strict regulations to preserve natural sites
What is the significance of indigenous knowledge systems in cultural tourism?
Providing unique experiences to tourists
Why is it essential to develop under-explored areas in South Africa?
To divert tourist flows from over-visited sites
What is the primary goal of conservation?
Preserving natural resources
What is environmental sustainability?
Preserving the health and resources of the planet for future generations
What is the significance of education and training in the tourism sector?
Providing high-quality services to tourists
When does a firm in a perfectly competitive market increase production to enhance profits?
When MR exceeds MC
What is a critical tool for economic analysis and policy formulation?
Perfect markets and perfect competition
What is a characteristic of imperfect markets?
Lack of perfect competition
What is a barrier to entry that helps maintain a monopoly's exclusive control?
All of the above
What is a characteristic of oligopolies?
Many firms dominate the market
What is a consequence of imperfect competition?
Market inefficiencies
What is a characteristic of monopolistic competition?
Firms sell differentiated products
What influences the dynamics of imperfect markets?
Market structure and strategic behavior of firms
What is the goal of firms in imperfect markets?
To maximize profits
What is a characteristic of long-term dynamics in perfect markets?
Firms make normal profits
What is the primary goal of a firm in a perfect market?
To maximize profit
What is a characteristic of a perfectly competitive market?
Homogeneous products
What is the significance of perfect information in a perfect market?
It ensures that no single entity can wield undue influence
What is the main distinction between an industry and an individual business in a perfect market?
The total output and market prices
What is the purpose of revenue and cost concepts in a perfect market?
To inform decision-making on output and pricing strategies
What is a characteristic of individual businesses in a perfect market?
They are price takers
What is the result of numerous buyers and sellers in a perfect market?
It makes it impossible for single entities to influence market prices
What determines the market price in a perfect market?
The interaction of numerous buyers and sellers
What is a primary goal of government intervention in imperfect markets?
To increase market competition and reduce inefficiencies
What type of goods are typically underprovided by private markets?
Public goods
What is a consequence of asymmetric information in markets?
Reduced consumer welfare
What is a cause of market failures?
All of the above
What is a type of inefficiency that arises from the misallocation of resources?
Allocative inefficiency
What is a consequence of market failures?
Economic inequities and social issues
What is an example of a negative externality?
Pollution
What is a goal of government intervention in market failures?
To correct market failures and promote efficiency
What is a characteristic of imperfect markets?
Monopolies and oligopolies
What is a way to address market failures?
Imposing taxes on negative externalities
What is a characteristic of monopolies in imperfect markets?
A single firm dominating the market with no close substitutes
What is the result of imperfect competition in markets?
Allocative and productive inefficiencies
What is the primary goal of government intervention in imperfect markets?
To enhance competitive outcomes and protect consumer interests
What is a characteristic of oligopolies in imperfect markets?
Firms producing differentiated products with some interdependence
What is the result of monopolistic competition in markets?
Lower prices and higher output due to competitive pressure
What is a type of inefficiency that arises from the underutilization of resources?
Productive inefficiency
What is the primary goal of cost-benefit analysis in public policy?
To ensure resources are used efficiently and enhance social welfare
What is the consequence of imperfect competition on economic welfare?
Decreased economic welfare due to welfare losses
What is the characteristic of firms in monopolistic competition?
Firms have some control over prices due to product differentiation
What is inflation?
A sustained increase in the general price level of goods and services
What is the main consequence of inflation?
Reduced purchasing power
What is the impact of imperfect competition on market prices?
Prices are higher than marginal costs
What is a characteristic of hyperinflation?
Extremely high and accelerating inflation
What is the role of government intervention in imperfect markets?
To enhance competitive outcomes and protect consumer interests
What is a measure used to combat inflation?
All of the above
What is the target inflation rate in South Africa?
3% to 6%
What is a type of inflation that strips out volatile items like food and energy?
Core inflation
What is a consequence of inflation?
Reduced purchasing power and income redistribution
What is the view that suggests inflation is a result of an increase in money supply?
Monetarists' view
What is the primary objective of cost-benefit analysis in public policy?
To ensure resources are used efficiently and enhance social welfare
What is the primary contribution of tourism to the national GDP of South Africa?
Through consumption by tourists and indirect supply chain activities
What is a major environmental challenge posed by high tourist activity in South Africa?
Resource depletion and waste management
What is recommended to enhance the cultural tourism experience in South Africa?
Promoting indigenous knowledge systems
What is a key policy recommendation for sustainable tourism development in South Africa?
Implementing strict regulations to preserve natural sites
What is the significance of environmental sustainability in South Africa?
Preserving natural sites for future generations
What is the role of tourism in employment creation in South Africa?
Directly employing 7% of the workforce
What is a key aspect of strategic spatial distribution in South Africa?
Developing under-explored areas to divert tourist flows
What is the primary goal of marketing and promotion strategies in tourism development?
Showcasing South Africa's diverse attractions
What is a key benefit of tourism in South Africa?
Boosting the national GDP through consumption and supply chain activities
What is the main objective of education and training in the tourism sector?
Providing high-quality services to tourists
What is the primary goal of environmental sustainability?
To ensure the long-term health and efficiency of the environment and its ecosystems
What is the main difference between conservation and preservation?
Conservation involves managing human use of the biosphere, while preservation involves protecting ecosystems and biodiversity from harm
What is the primary cause of climate change?
Greenhouse gas emissions
What is the focus of the Rio de Janeiro Summit (UNCED 1992)?
To promote sustainable development and build a global partnership
What is the aim of the Kyoto Protocol?
To reduce greenhouse gas emissions
What is a key aspect of sustainable development?
Meeting the needs of the present without compromising the ability of future generations to meet their own needs
What is a challenge facing the South African government's environmental sustainability interventions?
Enforcement, funding, and achieving the desired balance between economic development and environmental protection
What is a market mechanism to ensure sustainability?
Environmental taxes and tradeable permits
What is the primary goal of the Paris Agreement?
To keep a global temperature rise this century well below 2 degrees Celsius above pre-industrial levels
What is the focus of the Johannesburg Summit (WSSD 2002)?
To further the goals established in Rio, emphasizing the need to enhance the implementation of sustainable development practices globally
What is the primary objective of a firm in a perfect market?
To maximize profit
What characterizes a perfectly competitive market?
Multiple buyers and sellers
What is a key feature of products in a perfectly competitive market?
Homogeneous goods
What is the significance of perfect information in a perfect market?
It ensures maximum efficiency
What is a characteristic of individual businesses in a perfect market?
Price taker
What is the main distinction between an industry and an individual business in a perfect market?
Industry comprises multiple businesses
What do revenue and cost concepts help with in a perfect market?
Decision-making
What is a result of numerous buyers and sellers in a perfect market?
Impossible for single entities to influence market prices
What happens when marginal revenue equals marginal cost in a firm?
The firm will maintain the current level of production.
What is a characteristic of imperfect markets?
Firms have some degree of market power.
What is the goal of firms in imperfect markets?
To maximize profits.
What is a characteristic of monopolistic competition?
Many firms produce differentiated products.
What happens to economic profits in a monopolistically competitive market?
They tend to decrease over time.
What influences the dynamics of imperfect markets?
The interplay of cost and revenue curves and market structure
What is a characteristic of a monopoly?
A single firm produces the entire supply of a product or service.
What is a characteristic of oligopolies?
A few firms dominate the market.
What is the main distinction between perfect and imperfect markets?
The degree of market power held by firms.
What is the goal of governments in promoting perfect competition?
To enhance economic efficiency and equity.
What is a key characteristic of a monopoly?
A single firm dominating the entire market
What is a consequence of imperfect competition?
Lower output and higher prices
Why do governments intervene in imperfect markets?
To enhance competitive outcomes and protect consumer interests
What is a key feature of an oligopoly?
A few firms competing with each other
What is a characteristic of monopolistic competition?
Many firms selling differentiated products
What can lead to welfare losses in imperfect markets?
Lower output and higher prices
What is a key difference between monopolies and oligopolies?
The number of firms in the market
What is a consequence of imperfect markets?
Allocative and productive inefficiencies
What is a key characteristic of monopolies?
A single firm dominating the entire market
What is a goal of government intervention in imperfect markets?
To enhance competitive outcomes and protect consumer interests
What is the primary reason for government intervention in imperfect markets?
To increase market competition and reduce inefficiencies
What is an example of a negative externality?
Pollution
What is a characteristic of public goods?
They are non-excludable and non-rivalrous
What is a consequence of market failures?
Net social welfare loss
What is a type of inefficiency that arises from the underutilization of resources?
Productive inefficiency
What is a cause of market failures?
Imperfect competition
What is a goal of government intervention in market failures?
To correct market failures and increase efficiency
What is an example of a positive externality?
Education
What is a consequence of imperfect distribution of income and wealth?
Skewed production towards high-end goods and services
What is a type of market failure that arises from the unequal distribution of information?
Asymmetric information
What is the primary goal of cost-benefit analysis in public policy?
To evaluate the social costs and benefits of government interventions
What type of inflation measures the change in price for a basket of goods and services consumed by households?
Consumer Inflation
What is the result of an increase in the cost of production due to higher wages, raw material costs, and other expenses?
Cost-push Inflation
What is the target range for inflation set by the South African Reserve Bank?
3% to 6%
What is the consequence of inflation on savings?
Reduces the real value of saved money
What is the monetary policy tool used to control money supply and demand?
Interest Rates
What is the characteristic of hyperinflation?
Extremely high and typically accelerating inflation
What is the consequence of inflation on income distribution?
Redistributes income from creditors to debtors
What is the goal of wage controls as a measure to combat inflation?
To limit wage increases to prevent spiraling inflation
What is the type of inflation that combines high inflation with stagnant economic growth and high unemployment?
Stagflation
What percentage of South Africa's workforce is directly employed by tourism?
7%
What is a key way that tourism promotes poverty reduction in rural areas?
By stimulating local economies
What is a major environmental challenge posed by high tourist activity?
Increased water consumption
What is recommended to enhance the cultural tourism experience in South Africa?
Promoting indigenous knowledge systems
What is a key policy recommendation for sustainable tourism development?
Investing in improving tourism-related infrastructure
What type of tourism involves exploring natural areas while promoting conservation?
Ecotourism
What is the main goal of environmental sustainability?
To ensure that future generations can meet their needs without compromise
What is conservation?
The management of human use of the biosphere for sustainable benefit
Why is it essential to develop under-explored areas in South Africa?
To divert tourist flows from over-visited sites
What is a key economic impact of tourism in South Africa?
Significantly contributing to the national GDP
What is a major environmental challenge?
All of the above
What is a market mechanism to ensure sustainability?
All of the above
What is a crucial aspect of environmental sustainability?
Preserving natural resources and the environment
Why is education and training recommended for the tourism workforce?
To provide high-quality services to tourists
What is the aim of the Paris Agreement?
To reduce greenhouse gas emissions and limit global warming
What is the focus of the Johannesburg Summit?
To further the goals established in Rio
What is Agenda 21?
A comprehensive plan of action for sustainable development
What is a key aspect of sustainable development?
Promoting social and environmental welfare
What is a challenge facing the South African government's environmental sustainability interventions?
Lack of funding and enforcement
What is pollution?
The introduction of contaminants into the natural environment
What is the primary objective of firms in a perfect market?
To maximize profit
What characterizes products in a perfectly competitive market?
Homogeneity of goods
What is the impact of numerous buyers and sellers in a perfect market?
No influence over market prices
What is the significance of perfect information in a perfect market?
Complete information about market conditions
What is the distinction between an industry and an individual business in a perfect market?
An industry has multiple businesses, an individual business is a single entity
What is the purpose of revenue and cost concepts in a perfect market?
To make decisions on output and pricing strategies
What is a characteristic of individual businesses in a perfect market?
Price takers
What is the condition of the market in a perfect market?
Unregulated
What is a characteristic of a monopoly?
A single firm dominating the market with no close substitutes
What is a consequence of monopolies and oligopolies?
Allocative and productive inefficiencies
Why do governments intervene in imperfect markets?
To enhance competitive outcomes and protect consumer interests
What is a characteristic of oligopolies?
A few firms producing homogeneous or differentiated products
What is a consequence of monopolistic competition?
Redundant expenditures on advertising and marketing
What determines the dynamics of imperfect markets?
Demand and cost structures
What is a characteristic of imperfect markets?
Deviation from the idealized model of perfect competition
What is the goal of government intervention in imperfect markets?
To enhance competitive outcomes and protect consumer interests
What is a consequence of allocative inefficiency in imperfect markets?
Increased welfare losses
What is a characteristic of monopolistic competition?
Many firms producing differentiated products
When does a firm in a perfectly competitive market increase production?
When marginal revenue exceeds marginal cost
What is a characteristic of imperfect markets?
Firms have market power
What is a characteristic of monopolistic competition?
Firms differentiate their products
What happens to economic profits in an oligopoly?
Firms earn high economic profits
What is the shape of the demand curve for an oligopolist?
Kinked
Why do governments aim to emulate the conditions of perfect competition?
To enhance economic efficiency
What is a characteristic of a perfectly competitive market?
Firms are price-takers
What is the goal of firms in a perfectly competitive market?
To maximize profits
What is a characteristic of a monopoly?
A single firm controls the entire supply of a product or service
What influences the dynamics of imperfect markets?
The interplay of cost and revenue curves, market structure, and the strategic behavior of firms
What is the primary goal of government intervention in imperfect markets?
To increase market competition and reduce inefficiencies
Which of the following is a characteristic of public goods?
They are non-excludable and non-rivalrous
What is a consequence of imperfect competition?
Higher prices and reduced output
Which of the following is an example of a negative externality?
Pollution
What is a type of inefficiency that arises from the underutilization of resources?
Productive inefficiency
What is a goal of government intervention in market failures?
To correct market failures and promote efficient allocation of resources
Which of the following is a cause of market failures?
All of the above
What is a consequence of asymmetric information?
Choices that do not maximize welfare
What is a type of goods that are underprovided by private markets?
Public goods
What is a result of imperfect distribution of income and wealth?
Inefficient allocation of resources
What percentage of South Africa's workforce is directly employed by tourism?
7%
What is a key way that tourism promotes poverty reduction in rural areas?
By stimulating local economies
What is a major environmental challenge posed by high tourist activity?
Increased resource depletion
What is recommended to enhance the cultural tourism experience in South Africa?
Promoting indigenous knowledge systems
What is a key policy recommendation for sustainable tourism development?
Enhancing environmental management
What type of tourism involves exploring natural areas while promoting conservation?
Ecotourism
Why is it essential to develop under-explored areas in South Africa?
To divert tourist flows from over-visited sites
What is a key economic impact of tourism in South Africa?
Significantly contributing to the national GDP
What is a crucial aspect of environmental sustainability?
Preserving natural resources
Why is education and training recommended for the tourism workforce?
To provide high-quality services to tourists
What is the primary purpose of cost-benefit analysis in public policy?
To evaluate the social costs and benefits of interventions
What is the result of a sustained increase in the general price level of goods and services in an economy?
Inflation
What is the primary goal of monetary policy in controlling inflation?
To manage the money supply and demand
What is the consequence of inflation on the purchasing power of money?
It reduces the purchasing power of money
What is the primary goal of fiscal policy in controlling inflation?
To influence economic activity
What is the consequence of inflation on savings?
It discourages saving and investment
What is the primary goal of the South African Reserve Bank's inflation targeting strategy?
To maintain inflation within a range of 3% to 6%
What is the type of inflation that strips out volatile items like food and energy?
Core Inflation
What is the type of inflation that occurs when aggregate demand in an economy outpaces aggregate supply?
Demand-pull Inflation
What is the consequence of inflation on debtors and creditors?
It benefits debtors at the expense of creditors
What is environmental sustainability?
The ability to use natural resources indefinitely without compromising the needs of future generations
What is the primary goal of conservation?
To protect ecosystems, biodiversity, and environments from harmful human activities
What is the main challenge facing the South African government's environmental sustainability interventions?
Challenges in balancing economic development with environmental protection
What is the aim of the Rio de Janeiro Summit?
To establish a global partnership for sustainable development
What is the focus of the Johannesburg Summit?
To enhance the implementation of sustainable development practices globally
What is a market mechanism to ensure sustainability?
Implementing environmental taxes and tradeable permits
What is the primary goal of the Kyoto Protocol?
To reduce greenhouse gas emissions and combat climate change
What is the main goal of sustainable development?
To end poverty, protect the planet, and ensure peace and prosperity
What is a key aspect of sustainable development?
Balancing economic development with environmental protection
What is the primary goal of the Paris Agreement?
To keep a global temperature rise this century well below 2 degrees Celsius
What is the primary goal of firms in a perfect market?
To maximize profit
What is the ideal market structure that governments aim to emulate?
Perfect Competition
What is the characteristic of products in a perfectly competitive market?
Homogeneous
What is the characteristic of a monopoly?
A single company controlling the entire supply
What is the result of numerous buyers and sellers in a perfect market?
Impossible for single entities to influence market prices
What is the significance of perfect information in a perfect market?
Ensures no single entity can wield undue influence
What is the primary goal of firms in imperfect markets?
To maximize economic profits
What is the main distinction between an industry and an individual business in a perfect market?
Industry is a group of businesses, individual business is a single entity
What is the main difference between perfect and imperfect markets?
Degree of competition among firms
What is the result of numerous buyers and sellers in a perfect market?
Efficient allocation of resources
Which type of market structure is characterized by a single firm dominating the entire market for a product or service?
Monopoly
What is the purpose of revenue and cost concepts in a perfect market?
To make decisions on output and pricing strategies
What is a characteristic of individual businesses in a perfect market?
They are price takers
What is the main characteristic of oligopolies?
Few firms dominating a market
What is a key feature of oligopolies?
Interdependence of firms
What is a characteristic of monopolistic competition?
Firms selling differentiated products that are not perfect substitutes
What is the condition of the market in a perfect market?
Unregulated
What is the long-term dynamic in perfectly competitive markets?
Firms enter and exit the market based on profits and losses
What is the result of imperfect competition?
Market inefficiencies
What is a consequence of imperfect competition?
Lower output and higher prices
What is the primary goal of government intervention in imperfect markets?
To prevent monopolies and foster fair competition
Why do governments intervene in imperfect markets?
To reduce welfare losses to society
What is the main difference between monopolistic competition and perfect competition?
Degree of product differentiation
What is a characteristic of monopolies?
A single firm dominating the entire market
What is a result of imperfect competition?
Higher prices and lower output
What is a feature of monopolistic competition?
Firms advertising and differentiating their products
Why do monopolies often achieve long-term economic profits?
Because of barriers to entry, such as patents and regulatory measures
What is a goal of government intervention in imperfect markets?
To control monopolistic and oligopolistic powers
What is a consequence of market failures?
Social welfare loss and inefficient allocation of resources
What is a cause of market failures?
Externalities
What is a characteristic of public goods?
Non-excludable and non-rivalrous
What is an example of a negative externality?
Pollution
What is a goal of government intervention in market failures?
To correct market failures and increase economic efficiency
What is a type of inefficiency that arises from the underutilization of resources?
Productive inefficiency
What is a cause of imperfect competition?
A small number of firms and high barriers to entry
What is a consequence of asymmetric information?
Choices that do not maximize welfare
What is a type of goods that may be underprovided by the private market?
Merit goods
What is a goal of government regulation in imperfect markets?
To increase market competition and reduce inefficiencies
What is the primary goal of cost-benefit analysis in public policy?
To evaluate the social costs and benefits of interventions aimed at correcting market failures
What is the main difference between consumer inflation and headline inflation?
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
What is the result of extremely high and typically accelerating inflation?
Hyperinflation
What is the primary objective of the South African Reserve Bank's inflation targeting?
To maintain inflation within a manageable range of 3% to 6%
What is the consequence of inflation on savings?
It reduces the real value of saved money
What is the impact of inflation on debtors and creditors?
It benefits debtors at the expense of creditors
What is the name of the index that measures price changes before they reach the consumer?
Producer Price Index (PPI)
What is the term for inflation influenced by prices set by the government or regulatory bodies?
Administered Prices Inflation
What is the term for a situation where high inflation is combined with stagnant economic growth and high unemployment?
Stagflation
What is the main tool used by governments to evaluate the social costs and benefits of interventions aimed at correcting market failures?
Cost-benefit analysis
What percentage of South Africa's workforce is directly employed by tourism?
7%
What is a way that tourism promotes poverty reduction in rural areas?
By stimulating local economies
What is a major environmental challenge posed by high tourist activity?
Resource depletion
What is recommended to enhance the cultural tourism experience in South Africa?
Promoting indigenous knowledge systems
What is a key policy recommendation for sustainable tourism development?
Environmental management
What type of tourism involves exploring natural areas while promoting conservation?
Ecotourism
Why is it essential to develop under-explored areas in South Africa?
To divert tourist flows from over-visited sites
What is a key economic impact of tourism in South Africa?
Contribution to GDP
What is a crucial aspect of environmental sustainability?
Conservation
Why is education and training recommended for the tourism workforce?
To provide high-quality services to tourists
What is the primary goal of environmental sustainability?
To ensure the long-term health and efficiency of the environment and its ecosystems
What is conservation?
The management of human use of the biosphere to yield the greatest sustainable benefit
What is the primary cause of climate change?
Greenhouse gas emissions
What is the goal of the Kyoto Protocol?
To reduce greenhouse gas emissions globally
What is the focus of the Sustainable Development Goals (SDGs)?
To reduce poverty and protect the planet
What is a major challenge facing the South African government's environmental sustainability interventions?
Challenges in enforcement, funding, and achieving the desired balance between economic development and environmental protection
What is the primary goal of education and awareness in environmental sustainability?
To increase public understanding of environmental impacts and sustainable practices
What is the aim of the Paris Agreement?
To strengthen the global response to the threat of climate change
What is the focus of the Johannesburg Summit?
To further the goals established in the Rio de Janeiro Summit
What is Agenda 21?
A comprehensive plan of action to build a global partnership for sustainable development
What is the primary goal of cost-benefit analysis in public policy?
To evaluate the social costs and benefits of interventions aimed at correcting market failures
What is the main difference between consumer inflation and headline inflation?
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
What is the result of demand-pull inflation?
An increase in aggregate demand
In a perfect market, what is the relationship between marginal cost and marginal revenue when profits are maximized?
Marginal cost equals marginal revenue
What is the primary objective of firms in an imperfect market?
To maximize profits
What is the consequence of inflation on savings?
It reduces the real value of saved money
What is the aim of the South African Reserve Bank's inflation targeting?
To maintain inflation within a manageable range of 3% to 6%
What is a characteristic of monopolistic competition?
Many firms sell differentiated products
What is the impact of inflation on debtors and creditors?
It benefits debtors at the expense of creditors
Why do firms in imperfect markets face different revenue and cost curves?
Because they have different market structures
What is a characteristic of hyperinflation?
An extremely high and typically accelerating inflation rate
What is the purpose of government intervention in imperfect markets?
To enhance economic efficiency
What is the primary objective of a firm in a perfect market?
To maximize profit
What is the main goal of fiscal policy measures to combat inflation?
To reduce or increase public spending to influence economic activity
What is a characteristic of an oligopoly?
Few firms dominate the market
What is a characteristic of a perfectly competitive market?
Numerous buyers and sellers
What is the result of the interplay of cost and revenue curves in imperfect markets?
Firms maximize profits where marginal revenue equals marginal cost
What is the purpose of open market operations in monetary policy?
To buy or sell government bonds to influence broad money supply
What is a consequence of stagflation?
A situation where high inflation is combined with stagnant economic growth and high unemployment
Why do firms in imperfect markets engage in non-price competition?
To differentiate their products
What is the significance of homogeneous products in a perfect market?
It ensures that no single entity can wield undue influence
What is the role of individual businesses in a perfect market?
They are price takers
What is the long-term outcome of imperfect markets?
Firms may earn economic profits or incur losses
What is the significance of perfect competition in economics?
It serves as a benchmark for evaluating real-world market structures
What is the purpose of revenue and cost concepts in a perfect market?
To aid in decision-making
What is a characteristic of an industry in a perfect market?
It comprises multiple businesses producing identical products
What is the result of perfect information in a perfect market?
It ensures no single entity can wield undue influence
What is the condition of the market in a perfect market?
It is unregulated by the government
What is the primary reason for government intervention in imperfect markets?
To increase market competition and reduce inefficiencies
What is a consequence of externalities?
Net social welfare loss
What is an example of a public good?
National defense
What is a cause of market failures?
Imperfect distribution of income and wealth
What is a consequence of imperfect competition?
Allocative inefficiency and potential consumer harm
What is a type of inefficiency that arises from the underutilization of resources?
Productive inefficiency
What is a consequence of asymmetric information?
Choices that do not maximize welfare
What is a goal of government intervention in market failures?
To correct market failures and promote efficient outcomes
What is a characteristic of merit goods?
They are underprovided by the market
What is a consequence of market failures on the less wealthy?
They are disproportionately affected by market failures
What is a key feature of imperfect markets?
Barriers to entry for new firms
What is a consequence of monopolies and oligopolies?
Allocative and productive inefficiencies
What is the primary goal of government intervention in imperfect markets?
To enhance competitive outcomes and protect consumer interests
What is a characteristic of monopolistic competition?
Many firms sell differentiated products
What percentage of South Africa's workforce is directly employed by the tourism sector?
7%
What is a result of imperfect competition in markets?
Lower output and higher prices
What is the primary goal of environmental sustainability?
To preserve natural resources for future generations
What is a key difference between monopolies and oligopolies?
The number of firms in the market
Which type of tourism involves exploring natural areas while promoting conservation?
Ecotourism
What is a consequence of market power in imperfect markets?
Lower output and higher prices
What is a major environmental challenge posed by high tourist activity?
Resource depletion
Why is it essential to develop under-explored areas in South Africa?
To divert tourist flows from over-visited sites
What is a characteristic of oligopolies?
Firms are interdependent in their pricing and output decisions
What is a result of imperfect competition in terms of resource allocation?
Inefficient allocation of resources
What is a key policy recommendation for sustainable tourism development?
All of the above
What is the main difference between monopolies and perfect competition?
The number of firms in the market
What is the significance of indigenous knowledge systems in cultural tourism?
All of the above
What is a key economic impact of tourism in South Africa?
It significantly contributes to the national GDP
What is recommended to enhance the cultural tourism experience in South Africa?
Promoting indigenous knowledge systems
Why is education and training recommended for the tourism workforce?
To provide high-quality services to tourists
What is the primary goal of environmental sustainability?
To ensure that future generations can meet their needs without compromise
What is the main difference between conservation and preservation?
Conservation is about managing human use of the biosphere, while preservation is about protecting ecosystems
What is the primary cause of climate change?
Greenhouse gas emissions
What is a key measure to ensure environmental sustainability?
Implementing environmental taxes
What was the main goal of the Rio de Janeiro Summit?
To establish a global partnership for sustainable development
What is the primary goal of the Paris Agreement?
To keep a global temperature rise well below 2 degrees Celsius above pre-industrial levels
What is a key challenge facing the South African government's environmental sustainability interventions?
Enforcement challenges and achieving the desired balance between economic development and environmental protection
What is a key aspect of sustainable development?
Meeting the needs of present and future generations
What is the primary goal of education and awareness in promoting environmental sustainability?
To promote sustainable development practices
What is the main goal of the Sustainable Development Goals (SDGs)?
To end poverty and protect the planet by 2030
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