Nov P2 Med
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Questions and Answers

What is the key characteristic of a perfectly competitive market?

  • Firms earn significant economic profits in the long run
  • The government regulates the market to prevent monopolies
  • There are many firms producing a homogeneous product (correct)
  • A single firm has a significant influence on the market price

    • What happens to firms in a perfectly competitive market in the long run?

  • They earn significant economic profits
  • They increase production to enhance profits
  • They exit the market due to losses
  • They make normal profits but no economic profits (correct)

    • What is the goal of government policies in imperfect markets?

  • To restrict market entry to favor certain firms
  • To emulate the conditions of perfect competition (correct)
  • To promote unfair competition
  • To create monopolies to enhance efficiency

    • 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 a characteristic of a monopoly?

    <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 term for the revenue earned by a business from selling one additional unit of a product?

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

    What is a key feature of an oligopoly?

    <p>A few firms dominate the market and engage in non-price competition</p> Signup and view all the answers

    What is the role of individual businesses in a perfectly competitive market?

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

    What happens to economic profits in monopolistic competition?

    <p>Firms earn short-term economic profits that normalize in the long run</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

    What is the term for the total cost of producing a certain quantity of goods?

    <p>Total cost</p> Signup and view all the answers

    Why do monopolies achieve long-term economic profits?

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

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

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

    Why is perfect information important in a perfectly competitive market?

    <p>It ensures that no single entity can wield undue influence over the market</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 the main characteristic of a perfect market that addresses the fundamental economic questions?

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

    What determines the marginal revenue curve of a monopolist?

    <p>The demand curve</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 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 a strategy used by firms in monopolistic competition?

    <p>Non-price competition</p> Signup and view all the answers

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

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

    What is a result of monopolistic competition?

    <p>Firms earning just normal profits in the long run</p> Signup and view all the answers

    What is a characteristic of imperfect markets?

    <p>Market power and higher prices</p> Signup and view all the answers

    What is a consequence of imperfect markets?

    <p>Welfare losses to society</p> Signup and view all the answers

    What is a feature of oligopolies?

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

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

    <p>The presence of market power</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 primary difference between conservation and preservation?

    <p>Conservation focuses on human needs, while preservation focuses on 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 the primary goal of the Kyoto Protocol?

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

    What is the primary objective of the Sustainable Development Goals (SDGs)?

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

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

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

    What is the primary characteristic of pollution?

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

    What is the primary goal of market mechanisms in ensuring environmental sustainability?

    <p>To internalize environmental costs</p> Signup and view all the answers

    What is the primary outcome of the Rio de Janeiro Summit?

    <p>Agenda 21</p> Signup and view all the answers

    What is the primary challenge faced by the South African government in addressing environmental sustainability?

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

    What is the primary reason for government intervention in markets with monopolies and oligopolies?

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

    What is the result of the price mechanism failing to allocate resources efficiently?

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

    What is an example of a negative externality?

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

    Why do public goods tend to be underproduced in private markets?

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

    What is an example of a merit good?

    <p>Health care</p> Signup and view all the answers

    What is the result of imperfect competition in a market?

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

    What is the result of asymmetric information in a market?

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

    What is an example of a consequence of market failures?

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

    What is a goal of state intervention in markets?

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

    What is a result of externalities?

    <p>Environmental degradation or underprovided services</p> Signup and view all the answers

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

    <p>To determine whether the benefits of a project or regulation exceed its costs</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 a consequence of high inflation?

    <p>Reduced purchasing power</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 a monetary policy tool used to control inflation?

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

    What is the result of an increase in money supply circulating more rapidly than real economic growth?

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

    What is the type of inflation that occurs when aggregate demand 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>Debtors benefit at the expense of creditors</p> Signup and view all the answers

    What is the goal of regulatory measures to combat inflation?

    <p>To control wages and prices</p> Signup and view all the answers

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

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

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

    <p>Poverty alleviation and employment creation</p> Signup and view all the answers

    What is the recommended policy to showcase South Africa's diverse attractions?

    <p>Marketing and promotion</p> Signup and view all the answers

    What is a key challenge posed by tourism in South Africa?

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

    What is the significance of indigenous knowledge systems in South Africa's tourism?

    <p>To promote cultural heritage</p> Signup and view all the answers

    What is the objective of strategic spatial distribution in tourism?

    <p>To develop under-explored areas</p> Signup and view all the answers

    What is the primary objective of environmental sustainability?

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

    What is the significance of education and training in South Africa's tourism?

    <p>To develop specialized training programs</p> Signup and view all the answers

    What is the impact of tourism on South Africa's GDP?

    <p>It has a significant and direct impact</p> Signup and view all the answers

    What is a key benefit of tourism in South Africa's rural areas?

    <p>It promotes resource distribution</p> Signup and view all the answers

    Why is environmental management crucial in South Africa's tourism?

    <p>To preserve natural sites and ensure sustainable tourism practices</p> Signup and view all the answers

    In a perfectly competitive market, what is the primary objective of an individual business?

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

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

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

    What is the role of the government in a perfectly competitive market?

    <p>To ensure complete mobility of factors of production</p> Signup and view all the answers

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

    <p>It ensures maximum efficiency and equitable resource distribution</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 comprises multiple businesses, while an individual business is a single entity</p> Signup and view all the answers

    What is the significance of freedom of entry and exit in a perfectly competitive market?

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

    What is the term for the revenue earned by a business from selling one additional unit of a product?

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

    What is the primary difference between an individual business and an industry in a perfectly competitive market?

    <p>An individual business produces identical products, while an industry produces differentiated products</p> Signup and view all the answers

    What is the goal of firms in perfect markets?

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

    What is a characteristic of oligopolies?

    <p>Interdependent firms with differentiated products</p> Signup and view all the answers

    How do firms in monopolistic competition maximize profits?

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

    What is the result of imperfect competition in a market?

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

    What is the primary objective of government policies in imperfect markets?

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

    What is the shape of the demand curve for a monopolist?

    <p>Downward-sloping</p> Signup and view all the answers

    What is the primary characteristic of a monopoly?

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

    What is the result of long-term dynamics in perfect markets?

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

    What is the role of barriers to entry in monopolies?

    <p>To prevent new entrants</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 the primary reason for government intervention in markets with monopolies and oligopolies?

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

    What is a characteristic of a monopoly?

    <p>A single firm dominating the entire market for a product or service</p> Signup and view all the answers

    What is the result of allocative inefficiency in imperfect markets?

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

    What is a key feature of an oligopoly?

    <p>A few firms that are interdependent</p> Signup and view all the answers

    What is the result of monopolistic competition?

    <p>Firms earning short-term profits that are eroded in the long run</p> Signup and view all the answers

    What is a characteristic of imperfect markets?

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

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

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

    What is a strategy used by firms in monopolistic competition?

    <p>Non-price competition such as advertising and product differentiation</p> Signup and view all the answers

    What is a consequence of imperfect markets?

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

    What is a result of underutilization of resources in imperfect markets?

    <p>Welfare losses to society</p> Signup and view all the answers

    What is the primary objective 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 primary distinction between conservation and preservation?

    <p>Conservation manages human use of the biosphere, while preservation protects ecosystems from harm</p> Signup and view all the answers

    What is the primary cause of climate change according to the Kyoto Protocol?

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

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

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

    What is the primary characteristic of pollution?

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

    What is the primary goal of market mechanisms in ensuring environmental sustainability?

    <p>To internalize environmental costs and promote sustainable practices</p> Signup and view all the answers

    What was the primary outcome of the Rio de Janeiro Summit?

    <p>The development of Agenda 21, a comprehensive plan for sustainable development</p> Signup and view all the answers

    What is the primary challenge faced by the South African government in addressing environmental sustainability?

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

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

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

    What is the primary outcome of the Johannesburg Summit?

    <p>The furthering of sustainable development practices globally</p> Signup and view all the answers

    What is the primary goal of government intervention in markets with monopolies and oligopolies?

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

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

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

    What is the term for the failure of the price mechanism to allocate resources efficiently?

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

    What is the primary consequence of market failures?

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

    What is the primary reason for the underproduction of merit goods in private markets?

    <p>Underestimation of their benefits</p> Signup and view all the answers

    What is the result of asymmetric information in a market?

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

    What is the primary goal of state intervention in markets with externalities?

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

    What is the result of imperfect competition in a market?

    <p>Higher prices and reduced output</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 the primary goal of government regulations in imperfect markets?

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

    What is the primary purpose 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 inflation on savings?

    <p>Reduces the real value of saved money</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 term for extremely high and typically accelerating inflation, often exceeding 50% per month?

    <p>Hyperinflation</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

    What is the purpose of monetary policy in combating inflation?

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

    What is the consequence of income redistribution due to inflation?

    <p>Debtors benefit at the expense of creditors</p> Signup and view all the answers

    What is the term for inflation that is combined with stagnant economic growth and high unemployment?

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

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

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

    What is the purpose of regulatory measures in combating inflation?

    <p>To control the price of essential goods</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 key challenge posed by tourism on the environment?

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

    What is the primary goal of promoting indigenous knowledge systems (IKS) in tourism?

    <p>To preserve cultural heritage</p> Signup and view all the answers

    What is a recommended policy to sustainably grow the tourism sector in South Africa?

    <p>Developing specialized training programs</p> Signup and view all the answers

    What is the primary objective of environmental sustainability?

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

    What is a benefit of spreading tourism benefits to under-explored areas?

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

    What is a key role of the tourism sector in South Africa?

    <p>All of the above</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

    What is a recommended policy to improve the tourism sector in South Africa?

    <p>Investing in infrastructure development</p> Signup and view all the answers

    What is a key feature of tourism in South Africa?

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

    What is a key characteristic of a perfectly competitive market that ensures maximum efficiency and equitable resource distribution?

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

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

    <p>Maximize profit</p> Signup and view all the answers

    What is the relationship between individual businesses and the industry in a perfect market?

    <p>Individual businesses are price takers and contribute to the industry's total output</p> Signup and view all the answers

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

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

    What is the impact of freedom of entry and exit on a perfectly competitive market?

    <p>It ensures no barriers to entry</p> Signup and view all the answers

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

    <p>The firm has reached its profit-maximizing level of production.</p> Signup and view all the answers

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

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

    What is the ultimate goal of government policies in perfect markets?

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

    What characterizes monopolistic competition?

    <p>Firms produce standardized products and engage in non-price competition.</p> Signup and view all the answers

    What is the significance of average revenue in a perfectly competitive market?

    <p>It represents the revenue earned per unit sold</p> Signup and view all the answers

    What is the primary objective of firms in a perfect market when making decisions on output and pricing strategies?

    <p>Maximize profit or minimize losses</p> Signup and view all the answers

    What is a key feature of an oligopoly?

    <p>A few firms dominate the market and engage in non-price competition.</p> Signup and view all the answers

    What determines the marginal revenue curve of a monopolist?

    <p>The downward-sloping demand curve.</p> Signup and view all the answers

    What is the primary objective 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 and engage in non-price competition.</p> Signup and view all the answers

    What happens to economic profits in the long run in perfect competition?

    <p>They decrease to zero.</p> Signup and view all the answers

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

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

    What is a key feature of monopolies?

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

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

    <p>To ensure efficient and equitable resource allocation</p> Signup and view all the answers

    What is the main consequence of inflation on savings?

    <p>Reduced savings rate</p> Signup and view all the answers

    What type of inflation is influenced by prices set by the government or regulatory bodies?

    <p>Administered prices inflation</p> Signup and view all the answers

    What is the goal of monetary policy in combating inflation?

    <p>Manage interest rates and money supply</p> Signup and view all the answers

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

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

    What is a primary consequence of market failures?

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

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

    <p>Reduced purchasing power</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 the primary objective of fiscal policy in combating inflation?

    <p>To influence economic activity through government spending and taxation</p> Signup and view all the answers

    What is a result of imperfect competition in a market?

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

    What is the primary cause of cost-push inflation?

    <p>Increase in production costs</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 state intervention in markets?

    <p>To correct market failures</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 asymmetric information in a market?

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

    What is a result of externalities?

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

    What is a characteristic of oligopolies?

    <p>Few firms compete with each other</p> Signup and view all the answers

    What is a goal of regulation in imperfect markets?

    <p>To increase market transparency</p> Signup and view all the answers

    What is a characteristic of a monopolistic competition market?

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

    What is the result of market inefficiency in imperfect markets?

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

    What is a key feature of an oligopoly?

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

    Why do governments intervene in imperfect markets?

    <p>To protect consumer interests</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 imperfect markets?

    <p>Welfare losses to society</p> Signup and view all the answers

    What is a characteristic of a monopoly?

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

    What is a strategy used by firms in oligopolies?

    <p>Collusion and price fixing</p> Signup and view all the answers

    What is the result of allocative inefficiency in imperfect markets?

    <p>Price does not reflect the true scarcity of the product</p> Signup and view all the answers

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

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

    What is the primary goal of environmental sustainability?

    <p>To ensure that economic activity can continue indefinitely</p> Signup and view all the answers

    What is the primary difference between conservation and preservation?

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

    What is the primary cause of climate change?

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

    What is the primary goal of the Kyoto Protocol?

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

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

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

    What is the primary characteristic of pollution?

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

    What is the primary goal of market mechanisms in ensuring environmental sustainability?

    <p>To internalize environmental costs through taxes and tradeable permits</p> Signup and view all the answers

    What is the primary outcome of the Rio de Janeiro Summit?

    <p>The creation of Agenda 21, a plan for sustainable development</p> Signup and view all the answers

    What is the primary challenge faced by the South African government in addressing environmental sustainability?

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

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

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

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

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

    Which type of tourism involves engaging with local arts, museums, and cultural sites?

    <p>Cultural Tourism</p> Signup and view all the answers

    What is one of the environmental challenges posed by tourism in South Africa?

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

    What is one of the policy recommendations to sustainably grow the tourism sector in South Africa?

    <p>Improve Marketing and Promotion Strategies</p> Signup and view all the answers

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

    <p>It helps preserve cultural heritage</p> Signup and view all the answers

    What is the goal of strategic spatial distribution in the tourism sector?

    <p>Divert Tourist Flows from Over-Visited Sites</p> Signup and view all the answers

    What is the primary objective of environmental sustainability?

    <p>Preserve the Health and Resources of the Planet</p> Signup and view all the answers

    What is the result of tourism's direct impact on the national GDP?

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

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

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

    What is one of the challenges posed by tourism in rural areas?

    <p>It leads to ecosystem stress</p> Signup and view all the answers

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

    <p>An industry comprises multiple businesses producing identical products, while an individual business produces unique 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 a characteristic of a perfectly competitive market?

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

    What is the role of individual businesses in a perfectly competitive market?

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

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

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

    What is the term for the revenue earned by a business from selling one additional unit of a product?

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

    What is the focus of businesses in perfectly competitive markets?

    <p>Revenue and cost concepts</p> Signup and view all the answers

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

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

    In a perfectly competitive market, what happens when marginal revenue exceeds marginal cost?

    <p>The firm should increase production to enhance profits.</p> Signup and view all the answers

    What is the primary goal of government policies in markets with imperfect competition?

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

    In a monopolistically competitive market, what happens to economic profits in the long run?

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

    What is a key feature of an oligopolistic market?

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

    What is the term for the revenue earned by a firm from selling one additional unit of a product?

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

    In a monopoly, what allows the monopolist to act as a price setter?

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

    What is the primary goal of firms in perfect competition?

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

    In imperfect markets, what influences the dynamics of revenue and cost curves?

    <p>Market structure and firm behavior</p> Signup and view all the answers

    What is a result of imperfect competition in a market?

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

    What is the primary goal of government policies in perfect markets?

    <p>To promote fair competition</p> Signup and view all the answers

    What is a characteristic of imperfect markets?

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

    What is a consequence of monopolies and oligopolies?

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

    What is a feature of monopolistic competition?

    <p>Firms selling differentiated products</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 an effect of imperfect markets on economic welfare?

    <p>Welfare losses to society</p> Signup and view all the answers

    What is a characteristic of oligopolies?

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

    What is a strategy used by firms in monopolistic competition?

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

    What is a result of imperfect competition in a market?

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

    What is a reason for government intervention in markets with monopolies and oligopolies?

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

    What is a consequence of monopolies and oligopolies in a market?

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

    What is the main 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 primary difference between conservation and preservation?

    <p>Conservation focuses on sustainable use, while preservation aims to protect ecosystems</p> Signup and view all the answers

    What is a key international agreement addressing environmental sustainability?

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

    What is a market-based approach to environmental sustainability?

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

    What is the primary challenge faced by the South African government in addressing environmental sustainability?

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

    What is pollution, in the context of environmental sustainability?

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

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

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

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

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

    What is the primary outcome of the Rio de Janeiro Summit?

    <p>Agenda 21, a comprehensive plan of action for sustainable development</p> Signup and view all the answers

    What is a key concept related to environmental sustainability?

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

    What is the primary reason for government intervention in markets with monopolies and oligopolies?

    <p>To increase economic efficiency and reduce inefficiencies</p> Signup and view all the answers

    What is the result of imperfect distribution of income and wealth in a market?

    <p>Inefficient allocation of resources</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 the result of asymmetric information in a market?

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

    What is the primary goal of state intervention in markets?

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

    What is an example of a consequence of market failures?

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

    What is the result of productive inefficiency in a market?

    <p>Resources are not used to their full potential</p> Signup and view all the answers

    What is the primary cause of allocative inefficiency in markets?

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

    What is the result of merit goods being underprovided in a market?

    <p>Basic needs of the poorer sections remain unmet</p> Signup and view all the answers

    What is the primary goal of governments in responding to market failures?

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

    What is the primary sector that contributes to South Africa's GDP and poverty alleviation?

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

    What type of tourism involves engaging with local arts, museums, and cultural sites?

    <p>Cultural Tourism</p> Signup and view all the answers

    What is the primary challenge posed by tourism to the environment?

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

    What is a recommended policy to sustainably grow the tourism sector in South Africa?

    <p>Enhancing marketing and promotion strategies</p> Signup and view all the answers

    What is the primary benefit of promoting indigenous knowledge systems in cultural tourism?

    <p>Preserving cultural heritage</p> Signup and view all the answers

    What is the primary goal of strategic spatial distribution in tourism?

    <p>Diverting tourist flows from over-visited sites to under-explored areas</p> Signup and view all the answers

    What is the primary reason why environmental sustainability is essential?

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

    What is the primary objective of environmental management policies in the tourism sector?

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

    What is the primary benefit of education and training in the tourism sector?

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

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

    <p>To showcase South Africa's diverse attractions</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 can help in making informed decisions that enhance social welfare</p> Signup and view all the answers

    What is the result of demand-pull inflation?

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

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

    <p>A decrease in the purchasing power of money</p> Signup and view all the answers

    What is the goal of monetary policy in combating inflation?

    <p>To reduce the money supply in the economy</p> Signup and view all the answers

    What is the characteristic of stagflation?

    <p>High inflation and stagnant economic growth</p> Signup and view all the answers

    What is the type of inflation that 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 consequence of inflation on savings?

    <p>A decrease in the value of savings</p> Signup and view all the answers

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

    <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 debtors and creditors?

    <p>Debtors benefit at the expense of creditors</p> Signup and view all the answers

    What is the type of inflation that measures price changes before they reach the consumer?

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

    What is a key characteristic of imperfect markets?

    <p>There are barriers to entry and exit</p> Signup and view all the answers

    What is a consequence of monopolies and oligopolies?

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

    What is a characteristic of oligopolies?

    <p>A few firms that sell homogeneous products</p> Signup and view all the answers

    What is the primary goal of a firm in a perfectly competitive market?

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

    What is a strategy used by firms in monopolistic competition?

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

    What is a result of allocative inefficiency in imperfect markets?

    <p>Welfare losses to society</p> Signup and view all the answers

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

    <p>No single entity can influence the market</p> Signup and view all the answers

    What is the term for the revenue earned by a business from selling all its output?

    <p>Total revenue</p> Signup and view all the answers

    What is a characteristic of monopolistic competition?

    <p>Many firms sell differentiated products that are not perfect substitutes</p> Signup and view all the answers

    What is a key feature of an industry in a perfectly competitive market?

    <p>Multiple businesses producing identical products</p> Signup and view all the answers

    What is a consequence of imperfect competition in markets?

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

    What is the goal of government regulations in imperfect markets?

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

    What is the term for the cost of producing one additional unit of a product?

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

    What is a characteristic of monopolies?

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

    What is the primary characteristic of a perfectly competitive market?

    <p>Multiple buyers and sellers with no influence over prices</p> Signup and view all the answers

    What is a result of kinked demand curve strategy in oligopolies?

    <p>Prices are stabilized above competitive levels</p> Signup and view all the answers

    What is the role of individual businesses in a perfectly competitive market?

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

    What is the primary objective of a firm's decision-making in a perfectly competitive market?

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

    In a perfectly competitive market, what happens when the marginal revenue (MR) exceeds the marginal cost (MC)?

    <p>The firm should increase production to enhance profits.</p> Signup and view all the answers

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

    <p>To emulate the conditions of perfect competition.</p> Signup and view all the answers

    In a monopolistic competitive market, what happens to economic profits in the long run?

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

    What is a characteristic of an oligopoly?

    <p>A few firms dominate the market and engage in non-price competition.</p> Signup and view all the answers

    What is the shape of the demand curve for a monopolist?

    <p>Downward-sloping</p> Signup and view all the answers

    What is the primary objective of firms in imperfect markets?

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

    What is the result of imperfect competition in a market?

    <p>Resources are allocated inefficiently.</p> Signup and view all the answers

    What is a characteristic of perfect competition?

    <p>Many firms produce homogeneous products and there are no barriers to entry.</p> Signup and view all the answers

    What is the role of government policies in imperfect markets?

    <p>To prevent the formation of cartels and promote competition.</p> Signup and view all the answers

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

    <p>The level of competition and market structure.</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 the result of allocative inefficiency in imperfect markets?

    <p>Overproduction of goods and services</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 the primary consequence of imperfect competition in a market?

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

    What is the result of asymmetric information in a market?

    <p>Inefficient choices by buyers and sellers</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 a consequence of market failures?

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

    What is an example of a merit good?

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

    What is a goal of state intervention in markets?

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

    What is the primary cause of immobility of factors of production?

    <p>Labour market rigidities</p> Signup and view all the answers

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

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

    What is one of the environmental challenges posed by high tourist activity?

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

    Why is indigenous knowledge systems (IKS) important in tourism?

    <p>It promotes cultural heritage preservation</p> Signup and view all the answers

    What is the primary goal of environmental sustainability?

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

    What is the main benefit of promoting IKS in tourism?

    <p>It provides unique cultural experiences</p> Signup and view all the answers

    What is a key strategy for sustainable tourism?

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

    What is the importance of tourism in South Africa?

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

    What is the result of uneven tourism development?

    <p>Urban migration</p> Signup and view all the answers

    Why is education and training important in tourism?

    <p>It improves service quality</p> Signup and view all the answers

    What is the outcome of strategic spatial distribution in tourism?

    <p>Even distribution of tourism benefits</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 primary difference between conservation and preservation?

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

    What is the primary goal of the Kyoto Protocol?

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

    What is the primary outcome of the Rio de Janeiro Summit?

    <p>The creation of Agenda 21, a comprehensive plan of action for sustainable development</p> Signup and view all the answers

    What is the primary challenge faced by the South African government in addressing environmental sustainability?

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

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

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

    What is the primary goal of market mechanisms in ensuring environmental sustainability?

    <p>To internalize environmental costs and promote sustainable practices</p> Signup and view all the answers

    What is the primary characteristic of pollution?

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

    What is the primary goal 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 the primary goal 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 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 type of inflation is influenced by prices set by the government or regulatory bodies?

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

    What is the primary consequence of inflation on savings?

    <p>Reduced savings</p> Signup and view all the answers

    What is the term for the extremely high and typically accelerating inflation, often exceeding 50% per month?

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

    What is the primary goal 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 result of demand-pull inflation?

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

    What is the primary benefit of debtors in a situation of high inflation?

    <p>Reduced value of debt</p> Signup and view all the answers

    What is the term for the 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 tool used by the government to combat inflation?

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

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

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

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