340 Questions
What is the primary objective of a firm in a perfect market?
To maximize profit
What is a characteristic of products in a perfectly competitive market?
Homogeneous
What is a feature of a perfectly competitive market?
Freedom of entry and exit
What is the role of individual businesses in a perfectly competitive market?
Price takers
What is the total output of an industry in a perfect market?
The sum of individual business outputs
What is a revenue metric that businesses in perfect markets focus on?
Total revenue
What is a crucial cost concept in decision-making for businesses in perfect markets?
Marginal cost
What characterizes a perfect market?
Complete mobility of factors of production
What is a characteristic of a monopoly?
A single firm dominates the entire market
What is the result of imperfect markets?
Higher prices and lower output
What is the purpose of government regulations in imperfect markets?
To control monopolistic and oligopolistic powers
What is a characteristic of oligopolies?
A few firms dominate the market
What is the result of monopolistic competition?
An outcome similar to perfect competition
What is the result of market power in imperfect markets?
Higher prices and lower output
What is a characteristic of monopolistic competition?
Many firms sell differentiated products
What is the result of strategic behaviors in oligopolies?
Price fixing and collusive practices
What is the result of imperfect markets on economic welfare?
Potential welfare losses
What is the purpose of antitrust laws in imperfect markets?
To control monopolistic and oligopolistic powers
What is the condition for a firm to achieve profit maximization in a perfectly competitive market?
Marginal cost equals marginal revenue
What is the main characteristic of a perfectly competitive market?
Many firms compete with each other
What is the goal of competition policies in imperfect markets?
To promote fair competition and prevent monopolies
What is the main difference between a monopoly and a perfectly competitive market?
The presence of barriers to entry
What is the shape of the demand curve for an oligopolist?
Kinked
What is the main characteristic of monopolistic competition?
Many firms sell differentiated products
What is the condition for a firm to maximize profits in an imperfect market?
Marginal revenue equals marginal cost
What is the purpose of imperfect markets in economics?
To provide a benchmark for evaluating real-world markets
What is the result of long-term dynamics in a perfectly competitive market?
Firms make normal profits but no economic profits
Why do firms in imperfect markets often engage in non-price competition?
To differentiate their products
What is the primary purpose of cost-benefit analysis in public policy?
To evaluate the social costs and benefits of projects or regulations
Which type of inflation measures the change in price for a basket of goods and services consumed by households?
Consumer Inflation
What is the term for extremely high and typically accelerating inflation, often exceeding 50% per month?
Hyperinflation
What is the result of an increase in money supply circulating more rapidly than real economic growth, according to Monetarists?
Inflation
What is the consequence of inflation on the real value of money?
Reduced purchasing power
Which of the following is a measure to combat inflation?
All of the above
What is the target inflation range set by the South African Reserve Bank?
3% to 6%
What is the term for a situation where high inflation is combined with stagnant economic growth and high unemployment?
Stagflation
What is the consequence of inflation on debtors and creditors?
Debtors benefit at the expense of creditors
What is the impact of inflation on savings?
Discourages saving and investment
What is the main 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 the main characteristic of public goods?
They are non-excludable and non-rivalrous
What is the consequence of asymmetric information in markets?
Choices that do not maximize welfare
What is an example of a merit good?
Health care
What is the consequence of imperfect distribution of income and wealth?
Economic inequities
What is the result of imperfect competition in markets?
Higher prices and reduced output
What is the purpose of government intervention in the form of antitrust laws?
To break down barriers to entry and increase market competition
What is the consequence of externalities in markets?
Net social welfare loss
What is the result of market failures in terms of economic efficiency?
Inefficiencies
What is the role of tourism in South Africa's economy?
Contributes significantly to the national GDP and creates employment opportunities
What type of tourism involves engaging with local arts, museums, and cultural sites?
Cultural Tourism
What is a negative environmental impact of tourism?
Resource depletion and waste management issues
What is recommended to sustainably grow the tourism sector in South Africa?
Enhancing marketing strategies, infrastructure development, education, and environmental management
What is the significance of indigenous knowledge systems in cultural tourism?
They offer insights into local traditions and lifestyles
What is the purpose of strategic spatial distribution in tourism development?
To divert tourist flows from over-visited sites to under-explored areas
Why is environmental sustainability important?
It preserves the health and resources of our planet for future generations
What percentage of South Africa's workforce is directly employed in the tourism sector?
7%
What is the economic benefit of tourism in South Africa?
It significantly contributes to the national GDP
What type of tourism involves traveling for business dealings or conferences?
Business Tourism
What is the primary goal of environmental sustainability?
To support economic activity indefinitely while maintaining the environment
What is the main difference between conservation and preservation?
Conservation aims to protect ecosystems, while preservation aims to manage human use
What is the primary cause of pollution, according to the content?
Industrial activities and waste mismanagement
What is the primary goal of the Kyoto Protocol?
To reduce greenhouse gas emissions
What is the primary focus of the Johannesburg Summit (WSSD 2002)?
To promote sustainable development practices globally
What is the main goal of the Paris Agreement (COP 21)?
To keep a global temperature rise this century well below 2 degrees Celsius above pre-industrial levels
What is the primary goal of market mechanisms in environmental sustainability?
To internalize environmental costs
What is the primary focus of the Sustainable Development Goals (SDGs)?
All of the above
What is the primary challenge in implementing environmental sustainability measures in South Africa?
All of the above
What is the primary goal of regulatory approaches in environmental sustainability?
To limit pollution through direct regulation
What is the primary goal of a firm in a perfectly competitive market?
To maximize profit
In a perfectly competitive market, what is the relationship between an industry and an individual business?
An industry is a group of businesses producing identical products
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 impact of complete mobility of factors of production on a perfectly competitive market?
It ensures maximum efficiency and equitable resource distribution
What is the role of revenue metrics in decision-making for businesses in perfect markets?
To maximize profit
What is the significance of cost concepts in decision-making for businesses in perfect markets?
To maximize profit
What is a characteristic of a perfectly competitive market?
Many buyers and sellers
What is the result of freedom of entry and exit in a perfectly competitive market?
No single entity can wield undue influence over the market
What is the condition for a firm to maximize profits in a market?
When marginal revenue equals marginal cost
What is the primary characteristic of a perfectly competitive market?
Many firms produce standardized products
What is the result of imperfect markets on economic welfare?
Resources are allocated less efficiently
What is the main goal of competition policies in imperfect markets?
To promote transparency and fair competition
What is the characteristic of a monopolistically competitive market?
Many firms produce differentiated products
What is the result of long-term dynamics in a perfectly competitive market?
Firms make normal profits but no economic profits
What is the primary characteristic of a monopoly?
A single firm dominates the market
What is the characteristic of an oligopoly?
A few firms dominate the market
What is the result of imperfect competition in markets?
Higher prices and lower output
What is the result of a monopoly in a market?
The monopolist earns economic profits
What is the primary goal of government intervention in imperfect markets?
To enhance competitive outcomes and protect consumer interests
What is the purpose of government intervention in imperfect markets?
To promote transparency and fair competition
What is the characteristic of oligopolies?
Interdependence of firms
What is the condition for a firm to achieve profit maximization in an imperfect market?
When marginal revenue equals marginal cost
What is the result of strategic behaviors in oligopolies?
Collusive practices and price fixing
What is the characteristic of monopolistic competition?
Firms produce differentiated products
What is the result of market power in imperfect markets?
Higher prices and lower output
What is the purpose of antitrust laws in imperfect markets?
To enhance competitive outcomes and protect consumer interests
What is the result of imperfect markets on economic welfare?
Decreased economic welfare
What is the characteristic of imperfect markets?
Deviation from perfect competition
What is the primary objective of cost-benefit analysis?
To evaluate the social costs and benefits of interventions
What is inflation?
A sustained increase in the general price level of goods and services in an economy
What is the target inflation range set by the South African Reserve Bank?
3% to 6%
What is the consequence of inflation on the real value of money?
It reduces the real value of money
What is the result of an increase in money supply circulating more rapidly than real economic growth, according to Monetarists?
Inflation
What is the term for extremely high and typically accelerating inflation, often exceeding 50% per month?
Hyperinflation
What is the consequence of inflation on debtors and creditors?
Debtors gain and creditors lose
What is the impact of inflation on savings?
It reduces the real value of savings
What is the main goal of monetary policy in combating inflation?
To control money supply and demand
What is the term for a situation where high inflation is combined with stagnant economic growth and high unemployment?
Stagflation
What is the primary reason for government intervention in imperfect markets?
To increase market competition and reduce inefficiencies
What is a characteristic of public goods?
They are non-excludable and non-rivalrous
What is the consequence of imperfect distribution of income and wealth?
It results in overproduction of high-end goods
What is an example of a negative externality?
Pollution
What is the result of market failures in terms of economic efficiency?
It results in a net social welfare loss
What is the consequence of asymmetric information in markets?
It results in choices that do not maximize welfare
What is the purpose of government intervention in the form of antitrust laws?
To increase market competition and reduce inefficiencies
What is the result of imperfect competition in markets?
It results in higher prices and reduced output
What is an example of a merit good?
Healthcare
What is the consequence of externalities in markets?
It results in a net social welfare loss
What percentage of South Africa's workforce is directly employed by the tourism sector?
7%
What is the purpose of environmental management in sustainable tourism practices?
To reduce the environmental impact of tourism
What is the benefit of promoting indigenous knowledge systems in cultural tourism?
To provide unique experiences that differentiate South Africa from other destinations
What is the purpose of strategic spatial distribution in tourism development?
To evenly spread tourism benefits by developing under-explored areas
What is the economic impact of tourism on the national GDP?
Tourism significantly contributes to the national GDP
What is the result of high tourist activity on natural resources?
It leads to resource depletion, including water and energy consumption spikes
What is the purpose of education and training in the tourism sector?
To provide high-quality services to tourists through specialized training programs
What is the consequence of unsustainable tourism practices on the environment?
It leads to ecosystem stress, resource depletion, and waste management issues
What is the primary objective of policy recommendations for sustainable tourism development?
To enhance the economic contribution of tourism while minimizing its negative environmental impacts
What type of tourism involves exploring natural areas while promoting conservation?
Ecotourism
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 is about managing human use of the biosphere, while preservation is about protecting ecosystems and biodiversity
What is the main cause of climate change, according to the content?
Greenhouse gas emissions
What is the purpose of implementing environmental taxes and tradeable permits?
To internalize environmental costs
What is the primary goal of the Rio de Janeiro Summit (UNCED 1992)?
To promote sustainable development globally
What is the main objective of the Paris Agreement (COP 21)?
To keep a global temperature rise this century well below 2 degrees Celsius above pre-industrial levels
What is the main challenge faced by the South African government in addressing environmental sustainability?
Enforcement and achieving the desired balance between economic development and environmental protection
What is the primary goal of the Sustainable Development Goals (SDGs)?
To ensure that all people enjoy peace and prosperity by 2030
What is the main consequence of pollution on the environment?
Adverse change to the environment
What is the main purpose of education and awareness in promoting environmental sustainability?
To increase public awareness of environmental issues
In a perfectly competitive market, what happens when marginal revenue equals marginal cost?
The firm is at its optimal level of production and maximizes profits.
What is a characteristic of a monopolistically competitive market?
Firms produce differentiated products, leading to non-price competition.
What is a feature of oligopolies?
A few firms dominate the market, and firms may collude.
In a monopoly, what allows the monopolist to act as a price setter?
Barriers to entry, such as patents or resource control.
What is the purpose of government regulations in imperfect markets?
To emulate the conditions of perfect competition and prevent monopolies.
What is a characteristic of imperfect markets?
Firms face a downward-sloping demand curve.
What is the result of long-term dynamics in perfect markets?
Firms make normal profits, but no economic profits.
What is the shape of the demand curve for an oligopolist?
Kinked.
What is the goal of competition policies in imperfect markets?
To emulate the conditions of perfect competition and prevent monopolies.
What is the main characteristic of monopolistic competition?
Firms produce differentiated products, leading to non-price competition.
What is the primary objective of government intervention in imperfect markets?
To increase market competition and reduce inefficiencies
What is an example of a negative externality?
Pollution
What is the consequence of imperfect distribution of income and wealth?
Skewed production towards high-end goods and services
What is a characteristic of public goods?
Non-rivalrous and non-excludable
What is the result of asymmetric information in markets?
Choices that do not maximize welfare
What is an example of a merit good?
Education
What is the consequence of externalities in markets?
Reduced social welfare
What is the result of imperfect competition in markets?
Higher prices and reduced output
What is the purpose of antitrust laws in imperfect markets?
To increase market competition and reduce inefficiencies
What is the consequence of market failures in terms of economic efficiency?
Net social welfare loss
What is the primary goal of a firm in a perfectly competitive market?
To maximize profits
What is the key distinction between an industry and an individual business in a perfectly competitive market?
The contribution to the industry's total output
What is the result of perfect information and freedom of entry and exit in a perfectly competitive market?
No single entity can wield undue influence over the market
What is the significance of cost concepts in decision-making for businesses in perfect markets?
To maximize profits or minimize losses
What is the characteristic of products in a perfectly competitive market that ensures maximum efficiency?
Homogeneous products
How do individual businesses in perfectly competitive markets respond to changes in market prices?
They adjust their production levels to maximize profits
What is the implication of perfect mobility of factors of production in perfectly competitive markets?
Resources are allocated efficiently
What is the primary objective of a firm in a perfectly competitive market, as it relates to revenue and cost concepts?
To maximize profits through optimal output and pricing decisions
What is the primary characteristic of a monopoly?
A single firm dominating the entire market for a product or service
What is the result of imperfect markets on economic welfare?
Welfare losses to society due to underutilization of resources
What is the primary goal of government intervention in imperfect markets?
To enhance competitive outcomes and protect consumer interests
What is the characteristic of oligopolies that leads to strategic behaviors?
Interdependence of firms
What is the result of monopolistic competition in the long run?
Firms earn normal profits
What is the impact of market power on economic welfare?
Welfare losses to society due to underutilization of resources
What is the purpose of antitrust laws in imperfect markets?
To control monopolistic and oligopolistic powers
What is the result of non-price competition in oligopolies?
Stabilization of prices above competitive levels
What is the characteristic of imperfect markets that deviates from perfect competition?
A single firm dominating the market
What is the result of allocative inefficiency in imperfect markets?
Lower output and higher prices than would occur in a more competitive market
What is the primary purpose of cost-benefit analysis in public policy?
To evaluate the social costs and benefits of interventions aimed at correcting market failures
What is the term for a situation where high inflation is combined with stagnant economic growth and high unemployment?
Stagflation
What is the consequence of inflation on the real value of money?
It reduces the real value of money
What is the target inflation range set by the South African Reserve Bank?
3% to 6%
What is the main goal of government intervention in imperfect markets?
To correct market failures
What is the result of an increase in money supply circulating more rapidly than real economic growth, according to Monetarists?
Inflation
What is the impact of inflation on debtors and creditors?
It benefits debtors at the expense of creditors
What is the consequence of inflation on savings?
It reduces the value of savings
What is the term for inflation influenced by prices set by the government or regulatory bodies?
Administered Prices Inflation
Which type of inflation measures the change in price for a basket of goods and services consumed by households?
Consumer Inflation
What is the primary contribution of tourism to South Africa's economy?
It significantly contributes to the national GDP.
What is the main challenge posed by tourism to the environment in South Africa?
Resource depletion and waste management.
What is the recommended policy to enhance the tourism sector in South Africa?
Investing in infrastructure development and marketing strategies.
What is the role of indigenous knowledge systems in cultural tourism?
They provide a unique experience for tourists, differentiating South Africa from other destinations.
What is the goal of strategic spatial distribution in tourism development?
To divert tourist flows from over-visited sites to under-explored areas.
What is the significance of environmental sustainability in the context of tourism?
It is essential for preserving the health and resources of the planet for future generations.
What does environmental sustainability aim to ensure?
Economic activity indefinitely, ensuring future generations can meet their needs
What is ecotourism, and how does it contribute to conservation?
It is a type of tourism that involves exploring natural areas while promoting conservation.
What is the primary goal of conservation?
To manage human use of the biosphere for sustainable benefit
What is the main challenge posed by the environmental impact of tourism to the local economy?
It can lead to resource depletion and waste management challenges.
What is a major challenge to the current environmental status?
Air, water, and soil pollution
What is a market-based approach to ensure sustainability?
Implementing environmental taxes and tradeable permits
What is the significance of education and training in the tourism sector?
It is essential for developing specialized skills and providing high-quality services to tourists.
What is the purpose of the Kyoto Protocol?
To reduce greenhouse gas emissions
What is the main benefit of promoting cultural tourism in South Africa?
It can preserve cultural heritage and provide unique experiences for tourists.
What is the goal of the Paris Agreement?
To keep a global temperature rise well below 2°C above pre-industrial levels
What is the focus of the Johannesburg Summit?
To enhance the implementation of sustainable development practices
What is the purpose of assigning property rights?
To help protect and manage environmental resources effectively
What is a significant international agreement on environmental sustainability?
The Kyoto Protocol and Agenda 21
What is a challenge faced by the South African government in addressing environmental sustainability?
Challenges in enforcement, funding, and balancing economic development with environmental protection
What is the primary characteristic of a perfectly competitive market that ensures maximum efficiency and equitable resource distribution?
Complete mobility of factors of production
In a perfectly competitive market, what is the relationship between an industry and an individual business?
An industry comprises multiple businesses producing identical products
What is the primary focus of businesses in a perfectly competitive market?
Maximizing profits
What is the significance of homogeneous products in a perfectly competitive market?
It ensures no single entity can wield undue influence
What is the role of individual businesses in a perfectly competitive market?
Price takers
What is the significance of perfect information in a perfectly competitive market?
It prevents price manipulation
What is the primary goal of a firm in a perfectly competitive market?
Maximizing profits
What is a crucial decision-making concept for businesses in perfect markets?
Marginal revenue
What is the primary goal of government intervention in imperfect markets?
To increase market transparency and reduce inefficiencies
What is the consequence of imperfect distribution of income and wealth in a market economy?
Reduced economic efficiency and social welfare
What is an example of a positive externality?
Education and its benefits to society
What is the result of market failures in terms of economic efficiency?
Net social welfare loss
What is a characteristic of imperfect markets?
Presence of externalities
What is the consequence of asymmetric information in markets?
Choices that do not maximize welfare
What is the purpose of antitrust laws in imperfect markets?
To break down barriers to entry and increase competition
What is a feature of oligopolies?
Interdependence of firms' decisions
What is an example of a public good?
National defense and its benefits to society
What is the result of monopolistic competition?
Product differentiation and advertising
What is the goal of government regulation in imperfect markets?
To enhance competitive outcomes
What is the consequence of externalities in markets?
Reduced social welfare and environmental degradation
What is the result of imperfect competition in markets?
Higher prices and reduced output compared to perfect competition
What is a characteristic of monopolies?
A single firm dominates the market
What is the result of market power in imperfect markets?
Allocative and productive inefficiencies
What is the consequence of merit goods in markets?
Underproduction of these goods due to underestimating their benefits
What is the characteristic of imperfect markets that deviates from perfect competition?
Presence of barriers to entry
What is the outcome of imperfect markets in terms of economic welfare?
Potential welfare losses
What is a characteristic of oligopolistic competition?
Interdependence of firms' decisions
What is the result of imperfect markets on economic efficiency?
Allocative and productive inefficiencies
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 characteristic of stagflation?
High inflation combined with stagnant economic growth and high unemployment
What is the direct contribution of tourism to South Africa's GDP?
It contributes to 7% of the national GDP
What is the result of demand-pull inflation?
An increase in aggregate demand outpacing aggregate supply
What is the purpose of monetary policy in combating inflation?
To reduce the money supply and demand
What is the primary reason for the growth of tourism in South Africa?
Beautiful landscapes and diverse cultures
What is the recommended policy to preserve natural sites and ensure sustainable tourism practices?
Implementing strict regulations for environmental management
What is the consequence of inflation on the real value of debt?
It reduces the real value of debt
What is the target inflation range set by the South African Reserve Bank?
3% to 6%
What is the role of indigenous knowledge systems in cultural tourism?
To offer unique cultural experiences and preserve cultural heritage
What is the primary difference between a perfectly competitive market and a monopoly?
The presence or absence of close substitutes
In a monopolistically competitive market, what is the primary goal of firms?
To differentiate their products through branding and marketing
What is the consequence of high tourist activity on the environment?
Resource depletion and waste management challenges
What is the type of inflation that measures the total unadjusted inflation?
Headline Inflation
What is the consequence of inflation on savings?
It reduces the real value of saved money
What is the purpose of strategic spatial distribution in tourism development?
To divert tourist flows from over-visited sites to under-explored areas
What is the result of the long-term dynamics in perfectly competitive markets?
Firms make normal profits, but no economic profits
What is the primary importance of environmental sustainability?
To preserve natural resources for future generations
What is the purpose of fiscal policy in combating inflation?
To reduce government spending
What is the shape of the demand curve for a monopolist?
Downward-sloping
What is the primary goal of government policies aimed at promoting perfect competition?
To enhance economic efficiency
What is the characteristic of hyperinflation?
Extremely high and typically accelerating inflation, often exceeding 50% per month
What is the recommended policy to enhance the tourism sector in South Africa?
All of the above
What is the primary characteristic of oligopolies?
A few firms dominating a market
What is the role of tourism in employment creation in South Africa?
It employs about 7% of the workforce
What is the consequence of tourism on rural areas?
It stimulates local economies and reduces urban migration
What is the result of the dynamics of imperfect markets?
Market inefficiencies and barriers to entry
What is the primary goal of firms in imperfect markets?
To maximize profits where marginal revenue equals marginal cost
What is the primary characteristic of perfectly competitive markets?
Many firms producing a homogeneous product
What is the primary aim of antitrust laws in imperfect markets?
To dismantle barriers to entry and promote fair competition
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 main difference between conservation and preservation?
Conservation is more focused on economic benefits, while preservation is more focused on environmental protection
What is the primary cause of climate change, according to the content?
Greenhouse gas emissions
What is the purpose of implementing environmental taxes and tradeable permits?
To internalize environmental costs
What is the name of the international agreement that aims to keep the global temperature rise well below 2 degrees Celsius above pre-industrial levels?
Paris Agreement
What is the primary goal of the Sustainable Development Goals (SDGs)?
To promote sustainable development and ensure peace and prosperity
What is the role of education and awareness in promoting environmental sustainability?
To increase public understanding of environmental impacts and sustainable practices
What is the main challenge facing the South African government in implementing environmental sustainability interventions?
Lack of funding and enforcement
What is the primary purpose of assigning property rights in environmental sustainability?
To help protect and manage environmental resources effectively
What is the primary goal 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
Which of the following is a key characteristic of a perfectly competitive market?
There are numerous buyers and sellers, and firms are price takers.
What is the primary objective of a firm in a perfect market, considering revenue and cost concepts?
To maximize profit by optimizing output and pricing strategies
In a perfectly competitive market, what is the distinction between an industry and an individual business?
An industry comprises multiple businesses, contributing to the industry's total output, which affects market prices.
What is the significance of perfect information in a perfectly competitive market?
It ensures that buyers and sellers have equal access to information about market conditions.
In a perfect market, what is the relationship between individual businesses and the industry's total output?
Individual businesses contribute to the industry's total output, which affects market prices.
What is the role of government regulation in a perfect market?
There is no government regulation, as the market is self-regulating.
How do firms in a perfect market respond to changes in market prices?
They adjust their output levels in response to changes in market prices.
What is the significance of freedom of entry and exit in a perfectly competitive market?
It ensures that resources are allocated efficiently, as firms can enter or exit the market freely.
What is the primary reason for a firm's normal profits in a perfectly competitive market?
The absence of barriers to entry
In which type of market structure do firms engage in non-price competition, such as branding and advertising?
Monopolistic competition
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 primary goal of competition policies in imperfect markets?
To prevent monopolies
What is the characteristic of a demand curve in an oligopoly?
It is kinked
What is the result of long-term dynamics in imperfect markets?
Market inefficiencies arise
What is the primary reason for governments to emulate the conditions of perfect competition?
To enhance economic efficiency
What is the result of a firm's market power in an imperfect market?
The firm earns economic profits
What is the primary goal of regulating imperfect markets?
To prevent monopolies
What is the characteristic of a monopolist's marginal revenue curve?
It is downward-sloping
What is the primary characteristic of a monopolistic competition market structure?
Many firms sell differentiated products that are close substitutes
What is the consequence of a kinked demand curve in an oligopoly?
Firms are discouraged from changing prices, leading to price stability
What is the main difference between a monopoly and an oligopoly?
The number of firms in the market
What is the result of allocative inefficiency in imperfect markets?
Prices are higher than marginal costs, leading to lower output and higher prices
What is the primary goal of government intervention in imperfect markets?
To enhance competitive outcomes and protect consumer interests
What is the consequence of strategic behaviors in oligopolies?
Firms engage in non-price competition, such as advertising and product differentiation
What is the characteristic of products in a monopolistic competition market structure?
Differentiated products
What is the result of underutilization of resources in imperfect markets?
Welfare losses to society
What is the purpose of antitrust laws in imperfect markets?
To prevent monopolistic and oligopolistic powers, and enhance competitive outcomes
What is the primary consequence of imperfect distribution of income and wealth in markets?
Overproduction of high-end goods and services
Which of the following is a characteristic of public goods?
Non-rivalrous and non-excludable
What is the consequence of market power in imperfect markets?
Firms can influence market prices, leading to higher prices and lower output
What is the primary consequence of asymmetric information in markets?
Choices that do not maximize welfare
What is an example of a merit good?
Health care
What is the primary consequence of externalities in markets?
Net social welfare loss
What is the primary role of government intervention in imperfect markets?
To correct market failures
What is the consequence of imperfect competition in markets?
Allocative inefficiency and potential consumer harm
What is the purpose of antitrust laws in imperfect markets?
To break down barriers to entry and increase competition
What is the consequence of market failures in terms of economic efficiency?
Net social welfare loss
What is the primary consequence of immobility of factors of production in markets?
Inefficiencies in the production of goods and services
What percentage of South Africa's workforce is directly employed by the tourism sector?
7%
What is the main purpose of implementing strict regulations in the tourism sector?
To preserve natural sites and ensure sustainable tourism practices
What is the primary benefit of promoting indigenous knowledge systems in tourism?
To preserve cultural heritage and provide unique experiences
What is a potential environmental impact of high tourist activity?
Water and energy consumption spikes
What is a primary challenge in promoting sustainable tourism development?
Environmental degradation
What is the primary purpose of developing under-explored areas in tourism?
To divert tourist flows from over-visited sites
What is a key policy recommendation for sustainable tourism development?
Enhancing marketing and promotion strategies
What is a primary economic impact of tourism in South Africa?
Significant contribution to the national GDP
What is the primary role of education and training in tourism development?
To provide high-quality services to tourists
What is the primary goal of strategic spatial distribution in tourism development?
To develop under-explored areas
What is the primary objective of cost-benefit analysis in public policy?
To evaluate the social costs and benefits of market interventions
Which type of inflation is often characterized by a sudden and significant increase in the general price level?
Hyperinflation
What is the consequence of inflation on the real value of debt?
It decreases the real value of debt
What is the primary goal of inflation targeting by the South African Reserve Bank?
To keep inflation within a manageable range of 3% to 6%
What is the consequence of cost-push inflation on the overall economy?
It reduces aggregate supply
What is the primary purpose of monetary policy in combating inflation?
To manage interest rates and money supply
What is the consequence of stagflation on the economy?
It combines high inflation with stagnant economic growth and high unemployment
What is the primary goal of fiscal policy in combating inflation?
To reduce government spending
What is the consequence of inflation on savings in the economy?
It reduces the real value of savings
What is the primary purpose of regulatory measures in combating inflation?
To control wage and price increases
What is the primary objective of environmental sustainability?
To ensure that future generations can meet their needs without compromising the environment
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 goal of the Kyoto Protocol?
To commit state parties to reduce greenhouse gas emissions
What is a key challenge in implementing environmental sustainability measures in South Africa?
All of the above
What is the main goal of Agenda 21, established at the Rio de Janeiro Summit?
To build a global partnership for sustainable development
What is a key concept in environmental sustainability?
The ability of the environment to support economic activity indefinitely
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 main characteristic of the Johannesburg Summit?
It focused on furthering the goals established in Rio
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 main goal of the Sustainable Development Goals (SDGs)?
To end poverty, protect the planet, and ensure peace and prosperity by 2030
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