340 Questions
What is the key characteristic of a perfectly competitive market?
There are many firms producing a homogeneous product
What happens to firms in a perfectly competitive market in the long run?
They make normal profits but no economic profits
What is the goal of government policies in imperfect markets?
To emulate the conditions of perfect competition
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 a characteristic of a monopoly?
A single company or entity controls the entire supply of a product or service
What is the term for the revenue earned by a business from selling one additional unit of a product?
Marginal revenue
What is a key feature of an oligopoly?
A few firms dominate the market and engage in non-price competition
What is the role of individual businesses in a perfectly competitive market?
Price takers
What happens to economic profits in monopolistic competition?
Firms earn short-term economic profits that normalize in the long run
What is the shape of the demand curve for an oligopolist?
Kinked
What is the term for the total cost of producing a certain quantity of goods?
Total cost
Why do monopolies achieve long-term economic profits?
Due to barriers to entry
What is the main distinction between an industry and an individual business in a perfect market?
An industry comprises multiple businesses producing identical products
Why is perfect information important in a perfectly competitive market?
It ensures that no single entity can wield undue influence over the market
What is the goal of firms in imperfect markets?
To maximize profits where marginal revenue equals marginal cost
What is the main characteristic of a perfect market that addresses the fundamental economic questions?
Perfect competition
What determines the marginal revenue curve of a monopolist?
The demand curve
What is a characteristic of a monopoly?
A single firm dominating the market with no close substitutes
What is a 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 a strategy used by firms in monopolistic competition?
Non-price competition
What is the primary goal of government regulations in imperfect markets?
To protect consumer interests
What is a result of monopolistic competition?
Firms earning just normal profits in the long run
What is a characteristic of imperfect markets?
Market power and higher prices
What is a consequence of imperfect markets?
Welfare losses to society
What is a feature of oligopolies?
A kinked demand curve
What is the primary difference between perfect competition and imperfect markets?
The presence of market power
What is the primary goal of environmental sustainability?
To ensure that future generations can meet their needs without compromise
What is the primary difference between conservation and preservation?
Conservation focuses on human needs, while preservation focuses on ecosystems
What is the primary cause of climate change?
Greenhouse gas emissions
What is the primary goal of the Kyoto Protocol?
To reduce greenhouse gas emissions
What is the primary objective of the Sustainable Development Goals (SDGs)?
To end poverty, protect the planet, and ensure peace and prosperity by 2030
What is the primary role of education and awareness in ensuring environmental sustainability?
To increase public understanding of environmental impacts and sustainable practices
What is the primary characteristic of pollution?
The introduction of contaminants into the natural environment that cause adverse change
What is the primary goal of market mechanisms in ensuring environmental sustainability?
To internalize environmental costs
What is the primary outcome of the Rio de Janeiro Summit?
Agenda 21
What is the primary challenge faced by the South African government in addressing environmental sustainability?
Challenges in enforcement and achieving a balance between economic development and environmental protection
What is the primary reason for government intervention in markets with monopolies and oligopolies?
To increase market competition and reduce inefficiencies
What is the result of the price mechanism failing to allocate resources efficiently?
A net social welfare loss
What is an example of a negative externality?
Pollution
Why do public goods tend to be underproduced in private markets?
Because they are non-rivalrous and non-excludable
What is an example of a merit good?
Health care
What is the result of imperfect competition in a market?
Higher prices and reduced output
What is the result of asymmetric information in a market?
Choices that do not maximize welfare
What is an example of a consequence of market failures?
Inefficiencies
What is a goal of state intervention in markets?
To correct market failures and increase efficiency
What is a result of externalities?
Environmental degradation or underprovided services
What is the primary objective of cost-benefit analysis in public policy?
To determine whether the benefits of a project or regulation exceed its costs
What type of inflation measures the change in price for a basket of goods and services consumed by households?
Consumer Inflation
What is a consequence of high inflation?
Reduced purchasing power
What is the target inflation range for the South African Reserve Bank?
3% to 6%
What is a monetary policy tool used to control inflation?
Interest Rates
What is the result of an increase in money supply circulating more rapidly than real economic growth?
Monetarists' view of inflation
What is the type of inflation that occurs when aggregate demand outpaces aggregate supply?
Demand-pull inflation
What is the consequence of inflation on debtors and creditors?
Debtors benefit at the expense of creditors
What is the goal of regulatory measures to combat inflation?
To control wages and prices
What is the term for extremely high and typically accelerating inflation?
Hyperinflation
What is the primary role of tourism in South Africa's economy?
Poverty alleviation and employment creation
What is the recommended policy to showcase South Africa's diverse attractions?
Marketing and promotion
What is a key challenge posed by tourism in South Africa?
Resource depletion
What is the significance of indigenous knowledge systems in South Africa's tourism?
To promote cultural heritage
What is the objective of strategic spatial distribution in tourism?
To develop under-explored areas
What is the primary objective of environmental sustainability?
To preserve natural resources for future generations
What is the significance of education and training in South Africa's tourism?
To develop specialized training programs
What is the impact of tourism on South Africa's GDP?
It has a significant and direct impact
What is a key benefit of tourism in South Africa's rural areas?
It promotes resource distribution
Why is environmental management crucial in South Africa's tourism?
To preserve natural sites and ensure sustainable tourism practices
In a perfectly competitive market, what is the primary objective of an individual business?
To maximize profit
What is a characteristic of products in a perfectly competitive market?
Homogeneous
What is the role of the government in a perfectly competitive market?
To ensure complete mobility of factors of production
What is the significance of perfect information in a perfectly competitive market?
It ensures maximum efficiency and equitable resource distribution
What is the distinction between an industry and an individual business in a perfect market?
An industry comprises multiple businesses, while an individual business is a single entity
What is the significance of freedom of entry and exit in a perfectly competitive market?
It ensures maximum efficiency and equitable resource distribution
What is the term for the revenue earned by a business from selling one additional unit of a product?
Marginal revenue
What is the primary difference between an individual business and an industry in a perfectly competitive market?
An individual business produces identical products, while an industry produces differentiated products
What is the goal of firms in perfect markets?
To maximize profits
What is a characteristic of oligopolies?
Interdependent firms with differentiated products
How do firms in monopolistic competition maximize profits?
By differentiating their products
What is the result of imperfect competition in a market?
Inefficient allocation of resources
What is the primary objective of government policies in imperfect markets?
To enhance economic efficiency
What is the shape of the demand curve for a monopolist?
Downward-sloping
What is the primary characteristic of a monopoly?
A single firm controlling the market
What is the result of long-term dynamics in perfect markets?
Firms make normal profits
What is the role of barriers to entry in monopolies?
To prevent new entrants
What is the goal of firms in imperfect markets?
To maximize profits
What is the primary reason for government intervention in markets with monopolies and oligopolies?
To enhance competitive outcomes and protect consumer interests
What is a characteristic of a monopoly?
A single firm dominating the entire market for a product or service
What is the result of allocative inefficiency in imperfect markets?
Higher prices and lower output
What is a key feature of an oligopoly?
A few firms that are interdependent
What is the result of monopolistic competition?
Firms earning short-term profits that are eroded in the long run
What is a characteristic of imperfect markets?
Many firms selling differentiated products
What is the primary goal of government regulations in imperfect markets?
To enhance competitive outcomes and protect consumer interests
What is a strategy used by firms in monopolistic competition?
Non-price competition such as advertising and product differentiation
What is a consequence of imperfect markets?
Lower output and higher prices
What is a result of underutilization of resources in imperfect markets?
Welfare losses to society
What is the primary objective of environmental sustainability?
To ensure the long-term health and efficiency of the environment and its ecosystems
What is the primary distinction between conservation and preservation?
Conservation manages human use of the biosphere, while preservation protects ecosystems from harm
What is the primary cause of climate change according to the Kyoto Protocol?
Greenhouse gas emissions
What is the primary goal of education and awareness in ensuring environmental sustainability?
To increase public understanding of environmental impacts and sustainable practices
What is the primary characteristic of pollution?
The introduction of contaminants into the natural environment that cause adverse change
What is the primary goal of market mechanisms in ensuring environmental sustainability?
To internalize environmental costs and promote sustainable practices
What was the primary outcome of the Rio de Janeiro Summit?
The development of Agenda 21, a comprehensive plan for sustainable development
What is the primary challenge faced by the South African government in addressing environmental sustainability?
Balancing economic development with environmental protection
What is the primary goal of the Sustainable Development Goals (SDGs)?
To end poverty, protect the planet, and ensure peace and prosperity by 2030
What is the primary outcome of the Johannesburg Summit?
The furthering of sustainable development practices globally
What is the primary goal of government intervention in markets with monopolies and oligopolies?
To increase market competition and reduce inefficiencies
What is the result of imperfect distribution of income and wealth?
Inefficient allocation of resources
What is the term for the failure of the price mechanism to allocate resources efficiently?
Market failure
What is the primary consequence of market failures?
Inefficiencies and social welfare losses
What is the primary reason for the underproduction of merit goods in private markets?
Underestimation of their benefits
What is the result of asymmetric information in a market?
Inefficient allocation of resources
What is the primary goal of state intervention in markets with externalities?
To correct market failures
What is the result of imperfect competition in a market?
Higher prices and reduced output
What is an example of a negative externality?
Pollution
What is the primary goal of government regulations in imperfect markets?
To increase market competition and reduce inefficiencies
What is the primary purpose of cost-benefit analysis in public policy?
To ensure resources are used efficiently and enhance social welfare
What is the consequence of inflation on savings?
Reduces the real value of saved money
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 term for extremely high and typically accelerating inflation, often exceeding 50% per month?
Hyperinflation
What is the result of demand-pull inflation?
An increase in aggregate demand
What is the purpose of monetary policy in combating inflation?
To manage the money supply and demand
What is the consequence of income redistribution due to inflation?
Debtors benefit at the expense of creditors
What is the term for inflation that is combined with stagnant economic growth and high unemployment?
Stagflation
What is the primary goal of fiscal policy in combating inflation?
To influence economic activity and demand
What is the purpose of regulatory measures in combating inflation?
To control the price of essential goods
What percentage of South Africa's workforce is directly employed by the tourism sector?
7%
What is a key challenge posed by tourism on the environment?
All of the above
What is the primary goal of promoting indigenous knowledge systems (IKS) in tourism?
To preserve cultural heritage
What is a recommended policy to sustainably grow the tourism sector in South Africa?
Developing specialized training programs
What is the primary objective of environmental sustainability?
To preserve natural resources for future generations
What is a benefit of spreading tourism benefits to under-explored areas?
Diverting tourist flows from over-visited sites
What is a key role of the tourism sector in South Africa?
All of the above
What is a type of tourism that involves exploring natural areas while promoting conservation?
Ecotourism
What is a recommended policy to improve the tourism sector in South Africa?
Investing in infrastructure development
What is a key feature of tourism in South Africa?
All of the above
What is a key characteristic of a perfectly competitive market that ensures maximum efficiency and equitable resource distribution?
Homogeneous products
What is the primary objective of a firm in a perfect market?
Maximize profit
What is the relationship between individual businesses and the industry in a perfect market?
Individual businesses are price takers and contribute to the industry's total output
What is the significance of perfect information in a perfectly competitive market?
It ensures no single entity can wield undue influence over the market
What is the impact of freedom of entry and exit on a perfectly competitive market?
It ensures no barriers to entry
What occurs when the marginal cost of producing an additional unit equals the marginal revenue obtained from selling that unit?
The firm has reached its profit-maximizing level of production.
What is the primary difference between an industry and an individual business in a perfect market?
An industry consists of multiple businesses, while an individual business is a single entity
What is the ultimate goal of government policies in perfect markets?
To prevent monopolies and promote fair competition.
What characterizes monopolistic competition?
Firms produce standardized products and engage in non-price competition.
What is the significance of average revenue in a perfectly competitive market?
It represents the revenue earned per unit sold
What is the primary objective of firms in a perfect market when making decisions on output and pricing strategies?
Maximize profit or minimize losses
What is a key feature of an oligopoly?
A few firms dominate the market and engage in non-price competition.
What determines the marginal revenue curve of a monopolist?
The downward-sloping demand curve.
What is the primary objective of firms in imperfect markets?
To maximize profits.
What is a characteristic of monopolistic competition?
Many firms produce differentiated products and engage in non-price competition.
What happens to economic profits in the long run in perfect competition?
They decrease to zero.
What is the primary goal of government regulations in imperfect markets?
To prevent monopolies and promote fair competition.
What is a key feature of monopolies?
A single firm controls the entire supply of a product or service.
What is the primary objective of cost-benefit analysis in public policy?
To ensure efficient and equitable resource allocation
What is the main consequence of inflation on savings?
Reduced savings rate
What type of inflation is influenced by prices set by the government or regulatory bodies?
Administered prices inflation
What is the goal of monetary policy in combating inflation?
Manage interest rates and money supply
What is the term for 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 term for the situation where high inflation is combined with stagnant economic growth and high unemployment?
Stagflation
What is a primary consequence of market failures?
Net social welfare loss
What is the primary consequence of inflation on the real value of money?
Reduced purchasing power
What is an example of a public good?
National defense
What is the primary objective of fiscal policy in combating inflation?
To influence economic activity through government spending and taxation
What is a result of imperfect competition in a market?
Higher prices and reduced output
What is the primary cause of cost-push inflation?
Increase in production costs
What is an example of a negative externality?
Pollution
What is a goal of state intervention in markets?
To correct market failures
What is a characteristic of merit goods?
They are underprovided by the market
What is a consequence of asymmetric information in a market?
Choices that do not maximize welfare
What is a result of externalities?
Net social welfare loss
What is a characteristic of oligopolies?
Few firms compete with each other
What is a goal of regulation in imperfect markets?
To increase market transparency
What is a characteristic of a monopolistic competition market?
Many firms sell differentiated products
What is the result of market inefficiency in imperfect markets?
Higher prices and lower output
What is a key feature of an oligopoly?
Interdependence of firms' decisions
Why do governments intervene in imperfect markets?
To protect consumer interests
What is the outcome of monopolistic competition in the long run?
Firms earn normal profits
What is a consequence of imperfect markets?
Welfare losses to society
What is a characteristic of a monopoly?
A single firm dominating the market
What is a strategy used by firms in oligopolies?
Collusion and price fixing
What is the result of allocative inefficiency in imperfect markets?
Price does not reflect the true scarcity of the product
What is the primary goal of government regulations in imperfect markets?
To enhance consumer welfare
What is the primary goal of environmental sustainability?
To ensure that economic activity can continue indefinitely
What is the primary difference between conservation and preservation?
Conservation involves managing human use of the biosphere, while preservation involves protecting ecosystems
What is the primary cause of climate change?
Greenhouse gas emissions from human activities
What is the primary goal of the Kyoto Protocol?
To reduce greenhouse gas emissions and mitigate climate change
What is the primary role of education and awareness in ensuring environmental sustainability?
To increase public understanding of environmental impacts and sustainable practices
What is the primary characteristic of pollution?
The introduction of contaminants into the natural environment
What is the primary goal of market mechanisms in ensuring environmental sustainability?
To internalize environmental costs through taxes and tradeable permits
What is the primary outcome of the Rio de Janeiro Summit?
The creation of Agenda 21, a plan for sustainable development
What is the primary challenge faced by the South African government in addressing environmental sustainability?
Inadequate funding and enforcement of regulations
What is the primary goal of the Sustainable Development Goals (SDGs)?
To end poverty, protect the planet, and ensure peace and prosperity by 2030
What is the approximate percentage of South Africa's workforce that is directly employed by the tourism sector?
7%
Which type of tourism involves engaging with local arts, museums, and cultural sites?
Cultural Tourism
What is one of the environmental challenges posed by tourism in South Africa?
Resource Depletion
What is one of the policy recommendations to sustainably grow the tourism sector in South Africa?
Improve Marketing and Promotion Strategies
What is the significance of indigenous knowledge systems in enhancing the cultural tourism experience?
It helps preserve cultural heritage
What is the goal of strategic spatial distribution in the tourism sector?
Divert Tourist Flows from Over-Visited Sites
What is the primary objective of environmental sustainability?
Preserve the Health and Resources of the Planet
What is the result of tourism's direct impact on the national GDP?
It contributes to the national GDP
What is the significance of education and training in the tourism sector?
It provides high-quality services to tourists
What is one of the challenges posed by tourism in rural areas?
It leads to ecosystem stress
What is the main distinction between an industry and an individual business in a perfect market?
An industry comprises multiple businesses producing identical products, while an individual business produces unique products
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 and perfect information
What is the role of individual businesses in a perfectly competitive market?
They are price takers
What is the significance of perfect information in a perfectly competitive market?
It ensures that no single entity can wield undue influence over the market
What is the term for the revenue earned by a business from selling one additional unit of a product?
Marginal revenue
What is the focus of businesses in perfectly competitive markets?
Revenue and cost concepts
What is a characteristic of products in a perfectly competitive market?
Homogeneous products
In a perfectly competitive market, what happens when marginal revenue exceeds marginal cost?
The firm should increase production to enhance profits.
What is the primary goal of government policies in markets with imperfect competition?
To enhance economic efficiency
In a monopolistically competitive market, what happens to economic profits in the long run?
Firms earn normal profits
What is a key feature of an oligopolistic market?
Interdependent firms dominating the market
What is the term for the revenue earned by a firm from selling one additional unit of a product?
Marginal revenue
In a monopoly, what allows the monopolist to act as a price setter?
Barriers to entry
What is the primary goal of firms in perfect competition?
To maximize profits
In imperfect markets, what influences the dynamics of revenue and cost curves?
Market structure and firm behavior
What is a result of imperfect competition in a market?
Resource misallocation
What is the primary goal of government policies in perfect markets?
To promote fair competition
What is a characteristic of imperfect markets?
A single firm dominating the market
What is a consequence of monopolies and oligopolies?
Higher prices and lower output
What is a feature of monopolistic competition?
Firms selling differentiated products
What is the goal of government intervention in imperfect markets?
To enhance competitive outcomes and protect consumer interests
What is an effect of imperfect markets on economic welfare?
Welfare losses to society
What is a characteristic of oligopolies?
Interdependence of firms
What is a strategy used by firms in monopolistic competition?
Advertising and product differentiation
What is a result of imperfect competition in a market?
Higher prices and lower output
What is a reason for government intervention in markets with monopolies and oligopolies?
To protect consumer interests
What is a consequence of monopolies and oligopolies in a market?
Allocative inefficiency
What is the main goal of environmental sustainability?
To ensure the long-term health and efficiency of the environment and its ecosystems
What is the primary difference between conservation and preservation?
Conservation focuses on sustainable use, while preservation aims to protect ecosystems
What is a key international agreement addressing environmental sustainability?
All of the above
What is a market-based approach to environmental sustainability?
Market mechanisms
What is the primary challenge faced by the South African government in addressing environmental sustainability?
Enforcement and achieving a balance between economic development and environmental protection
What is pollution, in the context of environmental sustainability?
The introduction of contaminants into the natural environment
What is the primary goal of the Sustainable Development Goals (SDGs)?
To end poverty and protect the planet
What is the primary role of education and awareness in ensuring environmental sustainability?
To increase public understanding of environmental impacts and sustainable practices
What is the primary outcome of the Rio de Janeiro Summit?
Agenda 21, a comprehensive plan of action for sustainable development
What is a key concept related to environmental sustainability?
All of the above
What is the primary reason for government intervention in markets with monopolies and oligopolies?
To increase economic efficiency and reduce inefficiencies
What is the result of imperfect distribution of income and wealth in a market?
Inefficient allocation of resources
What is an example of a positive externality?
Education
What is the result of asymmetric information in a market?
Choices that do not maximize welfare
What is the primary goal of state intervention in markets?
To reduce market failures and increase efficiency
What is an example of a consequence of market failures?
Environmental degradation
What is the result of productive inefficiency in a market?
Resources are not used to their full potential
What is the primary cause of allocative inefficiency in markets?
Imperfect competition
What is the result of merit goods being underprovided in a market?
Basic needs of the poorer sections remain unmet
What is the primary goal of governments in responding to market failures?
To reduce market failures and increase efficiency
What is the primary sector that contributes to South Africa's GDP and poverty alleviation?
Tourism
What type of tourism involves engaging with local arts, museums, and cultural sites?
Cultural Tourism
What is the primary challenge posed by tourism to the environment?
All of the above
What is a recommended policy to sustainably grow the tourism sector in South Africa?
Enhancing marketing and promotion strategies
What is the primary benefit of promoting indigenous knowledge systems in cultural tourism?
Preserving cultural heritage
What is the primary goal of strategic spatial distribution in tourism?
Diverting tourist flows from over-visited sites to under-explored areas
What is the primary reason why environmental sustainability is essential?
To preserve natural resources for future generations
What is the primary objective of environmental management policies in the tourism sector?
To promote sustainable tourism practices
What is the primary benefit of education and training in the tourism sector?
To provide high-quality services to tourists
What is the primary goal of marketing and promotion strategies in the tourism sector?
To showcase South Africa's diverse attractions
What is the primary objective of cost-benefit analysis in public policy?
To ensure resources are used efficiently and can help in making informed decisions that enhance social welfare
What is the result of demand-pull inflation?
An increase in the aggregate demand of goods and services
What is the consequence of inflation on the purchasing power of money?
A decrease in the purchasing power of money
What is the goal of monetary policy in combating inflation?
To reduce the money supply in the economy
What is the characteristic of stagflation?
High inflation and stagnant economic growth
What is the type of inflation that measures the change in price for a basket of goods and services consumed by households?
Consumer Inflation
What is the consequence of inflation on savings?
A decrease in the value of savings
What is the goal of the South African Reserve Bank's inflation targeting policy?
To maintain inflation within a manageable range of 3% to 6%
What is the consequence of inflation on debtors and creditors?
Debtors benefit at the expense of creditors
What is the type of inflation that measures price changes before they reach the consumer?
Producer Inflation
What is a key characteristic of imperfect markets?
There are barriers to entry and exit
What is a consequence of monopolies and oligopolies?
Higher prices and lower output
What is a characteristic of oligopolies?
A few firms that sell homogeneous products
What is the primary goal of a firm in a perfectly competitive market?
To maximize profits
What is a strategy used by firms in monopolistic competition?
Advertising and product differentiation
What is a result of allocative inefficiency in imperfect markets?
Welfare losses to society
What is the result of perfect information in a perfectly competitive market?
No single entity can influence the market
What is the term for the revenue earned by a business from selling all its output?
Total revenue
What is a characteristic of monopolistic competition?
Many firms sell differentiated products that are not perfect substitutes
What is a key feature of an industry in a perfectly competitive market?
Multiple businesses producing identical products
What is a consequence of imperfect competition in markets?
Higher prices and lower output
What is the goal of government regulations in imperfect markets?
To enhance competitive outcomes and protect consumer interests
What is the term for the cost of producing one additional unit of a product?
Marginal cost
What is a characteristic of monopolies?
A single firm dominates the entire market
What is the primary characteristic of a perfectly competitive market?
Multiple buyers and sellers with no influence over prices
What is a result of kinked demand curve strategy in oligopolies?
Prices are stabilized above competitive levels
What is the role of individual businesses in a perfectly competitive market?
They are price takers
What is the primary objective of a firm's decision-making in a perfectly competitive market?
To maximize profits
In a perfectly competitive market, what happens when the marginal revenue (MR) exceeds the marginal cost (MC)?
The firm should increase production to enhance profits.
What is the primary goal of government policies in imperfect markets?
To emulate the conditions of perfect competition.
In a monopolistic competitive market, what happens to economic profits in the long run?
Firms earn normal profits.
What is a characteristic of an oligopoly?
A few firms dominate the market and engage in non-price competition.
What is the shape of the demand curve for a monopolist?
Downward-sloping
What is the primary objective of firms in imperfect markets?
To maximize profits.
What is the result of imperfect competition in a market?
Resources are allocated inefficiently.
What is a characteristic of perfect competition?
Many firms produce homogeneous products and there are no barriers to entry.
What is the role of government policies in imperfect markets?
To prevent the formation of cartels and promote competition.
What is the primary difference between perfect competition and imperfect markets?
The level of competition and market structure.
What is the primary goal of government intervention in imperfect markets?
To increase market competition and reduce inefficiencies
What is the result of allocative inefficiency in imperfect markets?
Overproduction of goods and services
What is an example of a negative externality?
Pollution
What is the primary consequence of imperfect competition in a market?
Higher prices and reduced output
What is the result of asymmetric information in a market?
Inefficient choices by buyers and sellers
What is a characteristic of public goods?
Non-excludable and non-rivalrous
What is a consequence of market failures?
Reduced social welfare
What is an example of a merit good?
Education
What is a goal of state intervention in markets?
To correct market failures
What is the primary cause of immobility of factors of production?
Labour market rigidities
What percentage of South Africa's workforce is directly employed in the tourism sector?
7%
What is one of the environmental challenges posed by high tourist activity?
Resource depletion
Why is indigenous knowledge systems (IKS) important in tourism?
It promotes cultural heritage preservation
What is the primary goal of environmental sustainability?
Preserving health and resources for future generations
What is the main benefit of promoting IKS in tourism?
It provides unique cultural experiences
What is a key strategy for sustainable tourism?
All of the above
What is the importance of tourism in South Africa?
All of the above
What is the result of uneven tourism development?
Urban migration
Why is education and training important in tourism?
It improves service quality
What is the outcome of strategic spatial distribution in tourism?
Even distribution of tourism benefits
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 primary difference between conservation and preservation?
Conservation focuses on managing human use of the biosphere, while preservation focuses on protecting ecosystems
What is the primary goal of the Kyoto Protocol?
To reduce greenhouse gas emissions and mitigate climate change
What is the primary outcome of the Rio de Janeiro Summit?
The creation of Agenda 21, a comprehensive plan of action for sustainable development
What is the primary challenge faced by the South African government in addressing environmental sustainability?
Balancing economic development with environmental protection
What is the primary role of education and awareness in ensuring environmental sustainability?
To increase public understanding of environmental impacts and sustainable practices
What is the primary goal of market mechanisms in ensuring environmental sustainability?
To internalize environmental costs and promote sustainable practices
What is the primary characteristic of pollution?
The introduction of contaminants into the natural environment that cause adverse change
What is the primary goal of the Johannesburg Summit?
To further the goals established in the Rio de Janeiro Summit
What is the primary goal of the Paris Agreement?
To strengthen the global response to the threat of climate change
What is the primary objective of cost-benefit analysis in public policy?
To ensure resources are used efficiently and enhance social welfare
What type of inflation is influenced by prices set by the government or regulatory bodies?
Administered Prices Inflation
What is the primary consequence of inflation on savings?
Reduced savings
What is the term for the extremely high and typically accelerating inflation, often exceeding 50% per month?
Hyperinflation
What is the primary goal of the South African Reserve Bank's inflation targeting?
To maintain inflation within a manageable range of 3% to 6%
What is the result of demand-pull inflation?
Increase in aggregate demand
What is the primary benefit of debtors in a situation of high inflation?
Reduced value of debt
What is the term for the situation where high inflation is combined with stagnant economic growth and high unemployment?
Stagflation
What is the primary tool used by the government to combat inflation?
All of the above
What is the primary consequence of inflation on the purchasing power of money?
Decreased purchasing power
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