329 Questions
What is a key characteristic of markets?
Competition and negotiation between sellers and buyers
What reflects the satisfaction a consumer derives from a good or service?
Utility
What type of market deals with the exchange of resources necessary for production?
Factor markets
What is a characteristic of perfect markets?
Full information availability
What role do prices play in a market economy?
They serve as signals to allocate resources efficiently
What is the relationship between price and quantity demanded according to the Law of Demand?
Inverse
What determines the quantity supplied in a market?
Price
What is the primary goal of prices in a market economy?
To allocate resources efficiently
What is the primary outcome of market equilibrium?
A stable market price
Which of the following is NOT a function of markets?
Tax collection
What is the primary reason for public sector intervention in the economy?
To address market failures
Which of the following is a type of indirect tax?
Value-Added Tax (VAT)
What is the primary goal of imposing a price ceiling?
To make essential goods more affordable
Which of the following is a merit good?
Education
What is the primary outcome of a market response to a change in demand and supply?
An adjustment to a new equilibrium
Which of the following is a reason for public sector intervention to promote social welfare?
To provide essential services like healthcare and education
What is the primary function of government spending in the public sector?
To allocate resources across various sectors
Which of the following is a characteristic of public goods?
They are non-excludable and non-rivalrous
What is the primary purpose of setting minimum and maximum price levels?
To ensure fair prices for producers and consumers
What is a potential drawback of setting minimum wages too high?
It can lead to lower employment rates
What is the primary goal of social safety nets?
To provide support to those who are unable to participate fully in the economy
What is the main advantage of state production in vital sectors?
It provides strategic control and ensures national security
What is the primary challenge faced by governments when intervening in the economy?
Balancing interventions with economic efficiency and growth
What is the Production Possibility Curve (PPC) based on?
Fixed resources and technology
What does a concave Production Possibility Curve (PPC) suggest?
Increasing opportunity costs
What is the effect of an outward shift in the Production Possibility Curve (PPC)?
Economic growth
What is the purpose of indifference curves in relation to the Production Possibility Curve (PPC)?
To show different combinations of two goods that provide the same level of satisfaction
What is the primary advantage of privatization?
Improved economic efficiency and reduced public sector burdens
What is the primary goal of government intervention in markets?
To correct inefficiencies and promote equitable distribution of resources
What is the term for the state where the free market fails to allocate resources efficiently?
Market failure
What is the primary determinant of the demand for labour in South Africa?
Productivity and technological advancements
What is the result of inefficiencies in resource allocation?
The economy operates at a suboptimal position on the PPC curve
What is the purpose of indifference curves?
To understand consumer preferences and the impact of changes in income or prices on consumption choices
What is the main consequence of underemployment in South Africa?
Reduced productivity and economic growth potential
What is the primary goal of economic policies aimed at reducing unemployment and underemployment in South Africa?
To create new job opportunities and enhance worker productivity through better education and training
What is the term for the graphical representation of the various combinations of two goods that can be produced given the resources available?
Production possibility curve (PPC)
What is the primary factor influencing the supply of labour in South Africa?
Wages offered
What is the consequence of high inflation rates in an economy?
Eroded purchasing power
What is the primary objective of the Labour Relations Act in South Africa?
To promote fair labour practices and collective bargaining
What is the main function of the Commission for Conciliation, Mediation, and Arbitration (CCMA)?
To resolve labour disputes through mediation and arbitration
What is the difference between frictional unemployment and structural unemployment?
Frictional unemployment is short-term, while structural unemployment is long-term
What is the main reason for the lack of skills in the South African workforce?
Historical educational disparities
What is the role of collective bargaining in the labour market?
To negotiate wages, hours, and other terms of employment
What is the purpose of labour courts in South Africa?
To adjudicate issues related to employment, including disputes over unfair dismissals
What is the economically active population (EAP)?
All individuals over 16 who are either employed or actively seeking employment
What is the formula for calculating the unemployment rate?
The number of unemployed individuals divided by the total EAP, multiplied by 100
What is the main difference between cyclical unemployment and seasonal unemployment?
Cyclical unemployment is associated with economic cycles, while seasonal unemployment occurs in industries with seasonal employment
What is the main focus of the Labour Relations Act in South Africa?
To promote self-government by allowing workers and employers to form and join unions and employer organisations
What is the primary focus of the Tirisano Campaign in South Africa?
Professional teaching and broader educational access
What is the main objective of the Land Reform initiative in South Africa?
To redistribute land or provide compensation to those dispossessed during apartheid
What is the primary goal of the Khula Enterprise Finance initiative in South Africa?
To provide financial assistance to small businesses
What is the primary focus of the Labour Relations Act in South Africa?
To balance employer and employee needs and promote fair labor practices
What is the primary goal of the AsgiSA initiative in South Africa?
To accelerate growth and reduce unemployment
What is the primary objective of the Black Economic Empowerment (BEE) initiative in South Africa?
To facilitate participation in the economy by historically marginalized groups
What is the primary goal of the National Forests Act and Marine Living Resources Act in South Africa?
To protect the environment while promoting equitable access to natural resources
What is the primary focus of the Ntsika program in South Africa?
To provide non-financial support to small businesses
Which demographic group faces high unemployment rates due to a lack of experience and rapid pace of change in skill requirements?
Young people, especially those aged 16 to 24
What is a consequence of mechanisation and technological advancements in the job market?
The redundancy of many traditional jobs
Which government program aims to acquire skills urgently needed in the market?
JIPSA
What is a key aspect of the Reconstruction and Development Programme (RDP)?
Nation building and democratisation
Which of the following is a characteristic of the Economically Marginalised Groups?
Lesser economic opportunities and higher risks of unemployment
What is a consequence of high unemployment rates in South Africa?
Directly correlates with high poverty rates
Which initiative supports local businesses and job creation?
Promotion of local production
What is the primary goal of the Unemployment Insurance Fund (UIF)?
To provide temporary financial assistance to qualified individuals who have lost their jobs
What is a key aspect of the educational reforms in South Africa?
Improvement in literacy and education
What is the primary goal of government interventions for Economically Marginalised Groups?
To integrate previously disadvantaged groups into the workforce more effectively
What is the primary mechanism by which markets facilitate the exchange of goods and services?
Exchange mechanism
Which of the following is a characteristic of both consumer and factor markets?
Involve the exchange of goods and services mediated by price and utility
What is the primary function of prices in a market economy?
To allocate resources efficiently
What is the relationship between the quantity demanded and the quantity supplied in a market?
The quantity demanded is directly related to the quantity supplied
What is the primary characteristic of imperfect markets?
One or more conditions of perfect markets are not met
What is the primary function of the exchange mechanism in a market?
To transfer goods and services from sellers to buyers
What is the primary difference between the law of demand and the law of supply?
The law of demand is inversely related to price, while the law of supply is directly related
What is the primary role of prices in guiding the decisions of producers and consumers?
To signal changes in supply and demand
What is the primary consequence of setting minimum and maximum price levels that are too narrow?
Market distortions and inefficiencies
What is the primary goal of state production in vital sectors such as energy and transportation?
To maintain strategic control and ensure national security and economic stability
What is the primary advantage of basic income grants?
Providing a minimum income support to all citizens
What is the shape of the PPC when the opportunity costs are decreasing?
Convex
What is the primary outcome of a leftward shift in the PPC?
Reduced resources
What is the primary purpose of indifference curves in relation to the PPC?
To show different combinations of two goods that provide the same level of satisfaction
What is the primary goal of public sector intervention in the economy?
To address market imperfections
What is the primary challenge faced by governments when intervening in the economy?
Balancing interventions with the need for economic efficiency and growth
What is the primary advantage of privatization?
Increasing efficiency
What is the primary outcome of market distortions and inefficiencies?
Surpluses and shortages
What is the primary outcome of market equilibrium in a market economy?
Resources are allocated efficiently
How does the public sector intervene in the economy to address market failures?
By all of the above
What is the primary difference between direct and indirect taxes?
Direct taxes are paid directly to the government, while indirect taxes are paid through goods and services
What is the primary goal of government spending in the public sector?
To allocate resources across various sectors
What is the primary outcome of a market response to a change in demand and supply conditions?
A new equilibrium price and quantity
What is the primary reason for the public sector to provide merit goods?
To provide essential services necessary for a well-functioning society
What is the primary goal of price controls in the public sector?
To ensure fair pricing and economic equity
What is the primary outcome of state production in vital sectors?
Improved quality of public goods and services
What is the primary challenge faced by governments when intervening in the economy?
Balancing the need to intervene with the risk of creating unintended consequences
What is the primary function of government intervention in markets?
To correct market failures
Which of the following market failures can lead to a reduction in competition and potentially higher prices?
Monopoly
What is the primary goal of government intervention in markets, according to the content?
To correct inefficiencies and promote equitable distribution of resources
What is the result of an economy operating inside the PPC curve?
Inefficient allocation of resources
What is the primary determinant of the supply of labour in South Africa?
All of the above
What is the primary goal of economic policies aimed at reducing unemployment and underemployment in South Africa?
To create new job opportunities and enhance worker productivity
What is the consequence of high inflation rates in an economy?
Erosion of purchasing power and destabilization of the economy
What is the primary focus of the Labour Relations Act in South Africa?
To regulate labour relations and promote fair labour practices
What is the result of inefficiencies in resource allocation?
Suboptimal position on the PPC curve
What is the primary advantage of privatization?
Improved efficiency and productivity
What is the primary goal of government spending in the public sector?
To stimulate economic growth
What is a primary factor contributing to high unemployment rates among young people in South Africa?
Rapid pace of change in skill requirements
Which of the following is a consequence of high unemployment rates in South Africa?
Social problems, including increased crime and substance abuse
What is the primary goal of the Government Employment and Development Strategies for South Africa?
Reducing poverty and unemployment rates
Which of the following is a key aspect of the Reconstruction and Development Programme (RDP)?
Nation building and democratisation
What is the primary focus of the Unemployment Insurance Fund (UIF)?
Providing temporary financial assistance to qualified individuals who have lost their jobs
What is a challenge faced by economically marginalised groups in South Africa?
Lack of access to education and skills development
Which of the following is a key aspect of the growth of production and local initiatives in South Africa?
Promotion of local production
What is the primary goal of government interventions in the economy, in relation to unemployment?
Addressing the root causes of unemployment
Which of the following is a consequence of high unemployment rates in South Africa, in relation to the taxpayer?
Government expenditure on social welfare increases, funded by taxes
What is the primary goal of initiatives aimed at solving unemployment in South Africa?
Reducing poverty and unemployment rates
What is the primary goal of the Labour Relations Act in South Africa?
To promote fair labour practices and ensure peaceful resolution of labour disputes
What is the main characteristic of structural unemployment?
It results from industrial reorganization, often due to technological changes, and mismatches between the skills of the workforce and the jobs available
What is the primary function of the Commission for Conciliation, Mediation, and Arbitration (CCMA)?
To resolve labour disputes through mediation and arbitration before they escalate into strikes or lockouts
What is the primary objective of the Labour Relations Act in South Africa?
To promote economic efficiency and social justice
What is the main consequence of a lack of skills in the South African workforce?
Mismatch between the skills of the workforce and the jobs available
What is the primary role of collective bargaining in the labour market?
To negotiate wages and working conditions
What is the primary function of labour courts in South Africa?
To adjudicate issues related to employment, including disputes over unfair dismissals
What is the economically active population (EAP)?
All individuals over 16 who are either employed or actively seeking employment
What is the formula for calculating the unemployment rate?
The number of unemployed individuals divided by the total EAP, multiplied by 100
What is the primary difference between cyclical unemployment and seasonal unemployment?
Cyclical unemployment is associated with economic cycles, while seasonal unemployment is associated with seasonal fluctuations
What is the primary goal of the Tirisano Campaign in South Africa?
To increase access to higher education and professional teaching
What is the main objective of the Employment Equity Act in South Africa?
To foster a more inclusive and fair work environment
What is the primary goal of the Land Reform initiative in South Africa?
To redistribute land to previously disadvantaged communities
What is the main focus of the Khula Enterprise Finance initiative in South Africa?
To provide financial assistance to small businesses
What is the primary goal of the National Forests Act and Marine Living Resources Act in South Africa?
To protect the environment while promoting equitable access to natural resources
What is the primary goal of the Black Economic Empowerment (BEE) initiative in South Africa?
To facilitate participation in the economy by historically marginalized groups
What is the primary goal of the Labour Relations Act in South Africa?
To balance employer and employee needs and promote fair labor practices
What is the primary goal of the AsgiSA initiative in South Africa?
To accelerate growth and reduce unemployment
What is a key distinction between consumer markets and factor markets?
One involves the exchange of finished products, while the other involves the trade of resources.
What is the primary function of prices in a market economy, according to the concept of market dynamics?
To allocate resources efficiently
What is the term for the worth of a good or service in terms of what it can be exchanged for?
Value
What is a characteristic of imperfect markets?
One or more conditions of perfect markets are not met
What is the direct result of the interaction between supply and demand in a market economy?
Determination of prices
What is the relationship between the quantity demanded and price, according to the Law of Demand?
Inverse
What is the market phenomenon where sellers compete to attract buyers?
Competition
What is the term for the satisfaction a consumer derives from a good or service?
Utility
What is the primary goal of the public sector's price control mechanism?
To ensure fair pricing and prevent exploitation of consumers and workers
What is the key difference between direct and indirect taxes?
Direct taxes are paid directly by individuals and businesses, while indirect taxes are passed on to consumers
What is the primary objective of government spending in the public sector?
To allocate resources across various sectors and industries
What is the main characteristic of merit goods?
They provide significant societal benefits and are often subsidized or provided free at the point of use
What is the primary reason for public sector intervention in the economy?
To address market failures and promote social welfare
What is the primary function of subsidies in the public sector?
To support industries crucial for economic stability
What is the primary outcome of market equilibrium?
The quantity demanded equals the quantity supplied
What is the primary role of the public sector in the economy?
To provide essential public goods and services
What is the primary goal of taxation in the public sector?
To generate revenue for the government to fund public services
What is the primary outcome of public sector intervention in the economy?
Increased economic efficiency and social welfare
What is the primary goal of government intervention in the economy?
To address market failures and promote social welfare
What is the effect of a minimum wage set too high?
Negative impact on employment
What is the primary purpose of social safety nets?
To support individuals who are unable to participate fully in the economy
What does an outward shift in the Production Possibility Curve (PPC) indicate?
Economic growth
What is the primary function of indifference curves?
To display different combinations of two goods that provide the same level of satisfaction
What is the primary challenge faced by governments when intervening in the economy?
Balancing interventions with economic efficiency and growth
What is the primary goal of privatization?
To reduce public sector burdens
What is the primary advantage of state production in vital sectors?
Maintaining strategic control
What is the primary goal of imposing price floors and ceilings?
To ensure producers receive a fair price and consumers can afford essential goods
What does a concave Production Possibility Curve (PPC) suggest?
Increasing opportunity costs
What is the primary effect of uneven income distribution in a market economy?
Leads to social and economic inequalities
What is the primary goal of government intervention in addressing pollution?
To prevent environmental damage and promote social welfare
What is the primary consequence of an economy operating inside the Production Possibility Curve (PPC)?
Inefficient allocation of resources
What is the primary factor influencing the demand for labour in South Africa, according to the content?
Productivity, cost of labour, and technological advancements
What is the primary outcome of inefficiencies in resource allocation?
An economy operating inside the PPC
What is the primary goal of government policies aimed at reducing income disparities?
To redistribute wealth and income
What is the primary consequence of high inflation rates in an economy?
Eroded purchasing power and destabilization of the economy
What is the primary goal of regulating monopolies?
To promote competition and innovation
What is the primary outcome of underemployment in South Africa?
Affecting the overall productivity and economic growth potential
What is the primary goal of economic policies aimed at addressing unemployment and underemployment in South Africa?
To create new job opportunities and enhance worker productivity
What is the primary objective of the Tirisano Campaign in South Africa?
To increase access to education and improve the quality of teaching
What is the main goal of the Land Reform initiative in South Africa?
To redistribute land or provide compensation to those dispossessed during apartheid
What is the focus of the Labour Relations Act in South Africa?
To balance employer and employee needs and promote fair labor practices
What is the primary goal of the Employment Equity Act in South Africa?
To foster a more inclusive and fair work environment
What is the focus of the Legislative Support initiative in South Africa?
To enact laws that foster a more inclusive and fair work environment
What is the primary goal of the Mineral and Energy Control initiative in South Africa?
To regulate mining activities and ensure benefits accrue to all
What is the focus of the Consensus and Management initiative in South Africa?
To protect the environment while promoting equitable access to natural resources
What is the primary goal of the Black Economic Empowerment (BEE) initiative in South Africa?
To facilitate participation in the economy by historically marginalized groups
What is a major contributor to the high unemployment rate among young people in South Africa?
Rapid pace of change in skill requirements
Which of the following is a historic reason for unemployment in South Africa?
Policies from the apartheid era
What is a social problem that arises from high unemployment rates in South Africa?
Familial stress and substance abuse
What is the primary goal of the Unemployment Insurance Fund (UIF) in South Africa?
To provide temporary financial assistance to qualified individuals who have lost their jobs
What is a key aspect of the Reconstruction and Development Programme (RDP) in South Africa?
Stimulating economic growth and improving the educational framework
What is the primary purpose of the Public Works Programs in South Africa?
To create jobs and develop skills through infrastructure projects
What is a characteristic of economically marginalized groups in South Africa?
They have historically had lesser economic opportunities
What is the primary goal of skills development initiatives in South Africa?
To integrate previously disadvantaged groups into the workforce more effectively
What is the primary focus of the JIPSA initiative in South Africa?
To acquire skills urgently needed in the market
What is the primary goal of promoting local production in South Africa?
To support local businesses and job creation
What is the primary reason why higher wages attract more workers in South Africa?
Increased demand for labour
Which international labour convention does South Africa adhere to?
International Labour Organization (ILO) Convention
What is the primary objective of collective bargaining in South Africa?
To increase wages and working conditions
What is the function of the Commission for Conciliation, Mediation, and Arbitration (CCMA) in South Africa?
To resolve labour disputes through mediation and arbitration
What is the primary cause of structural unemployment in South Africa?
Lack of skills in the workforce
What is the economically active population (EAP) in South Africa?
All individuals over 16 who are either employed or actively seeking employment
What is the primary objective of the Labour Relations Act in South Africa?
To support self-government
What is the primary role of labour courts in South Africa?
To adjudicate issues related to employment
What is the primary goal of the Labour Relations Act in promoting fair labour practices?
To protect workers' rights
What is the primary reason for the existence of labour disputes in South Africa?
Differences in wages and working conditions
What is the primary outcome of market equilibrium?
A stable market price
Which of the following is a characteristic of market dynamics?
Constant adjustments to changes in demand and supply
What is the primary reason for the public sector to intervene in the economy to address market failures?
To correct market failures, such as monopolies and externalities
Which of the following is a type of government spending?
Allocating resources across various sectors
What is a major consequence of uneven income distribution in an economy?
Erosion of purchasing power
What is the primary goal of imposing a price floor?
To guarantee incomes for producers
Which of the following is a characteristic of merit goods?
They provide significant societal benefits and are often subsidized or provided free
What is the primary goal of regulating monopolies in an economy?
To promote competition and reduce prices
What is the primary outcome of market forces adjusting to changes in demand and supply?
New market equilibrium
What is the effect of an economy operating inside the PPC curve?
The economy is not utilizing resources efficiently
What is the primary role of government in addressing market failures?
To correct inefficiencies and promote equitable distribution of resources
Which of the following is a reason for the public sector to intervene in the economy to promote social welfare?
To provide essential services like healthcare and education
What is a major determinant of the supply of labour in South Africa?
Wages offered and worker skills
What is the primary goal of taxation in the public sector?
To fund public services
What is the primary goal of economic policies aimed at reducing unemployment and underemployment in South Africa?
To create new job opportunities and enhance worker productivity
Which of the following is a characteristic of public goods?
They are non-excludable and non-rivalrous
What is the consequence of high inflation rates in an economy?
Erosion of purchasing power and destabilization of the economy
What is the primary objective of the Labour Relations Act in South Africa?
To promote fair labour practices and resolve disputes
What is the result of inefficiencies in resource allocation in an economy?
The economy operates inside the PPC curve
What is the primary goal of government intervention in markets?
To correct inefficiencies and promote equitable distribution of resources
What is the primary function of the exchange mechanism in a market?
To facilitate the transfer of goods or services from sellers to buyers at agreed prices
What is the main difference between consumer markets and factor markets?
Consumer markets deal with the exchange of finished products, while factor markets deal with the exchange of resources necessary for production
What is the primary characteristic of imperfect markets?
One or more conditions of perfect markets are not met
What is the primary role of prices in a market economy?
To allocate resources efficiently
What is the relationship between price and quantity supplied according to the Law of Supply?
There is a direct relationship between price and the quantity supplied
What is the primary outcome of the interaction between demand and supply in a market?
The adjustment of prices to equilibrium level
What is a characteristic of both consumer and factor markets?
The presence of buyers and sellers
What is the primary function of prices in a market economy in terms of resource allocation?
To guide the decisions of producers and consumers
What is the primary objective of the Labour Relations Act in South Africa?
To promote fair labour practices and encourage collective bargaining
What is the primary outcome of a collective bargaining agreement?
Improved working conditions and benefits for workers
What is the primary function of the Commission for Conciliation, Mediation, and Arbitration (CCMA)?
To resolve labour disputes through mediation and arbitration
What is the primary characteristic of structural unemployment?
It results from industrial reorganization, often due to technological changes
What is the primary reason for the lack of skills in the South African workforce?
A legacy of historical educational disparities
What is the primary focus of labour courts in South Africa?
To adjudicate issues related to employment, including disputes over unfair dismissals and actions contrary to the LRA
What is the primary role of collective bargaining in the labour market?
To negotiate wages, hours, and other terms of employment
What is the primary goal of social safety nets in South Africa?
To mitigate the impacts of unemployment and support the economically marginalized
What is the primary objective of the government's measures to mitigate unemployment?
To promote economic efficiency and social justice
What is the primary characteristic of the economically active population (EAP)?
All individuals over 16 who are either employed or actively seeking employment
What is a primary cause of high unemployment rates among young people in South Africa?
Lack of education and skill development
Which of the following is a consequence of high unemployment rates in South Africa?
Direct correlation with poverty, impacting millions of people
What is the primary focus of the JIPSA initiative?
Acquiring skills urgently needed in the market
What is the primary objective of government interventions aimed at addressing unemployment?
Multifaceted approach including education reform, skills development, and targeted social policies
What is the primary goal of the Reconstruction and Development Programme (RDP)?
Unifying the nation and democratizing the economy
What is the primary outcome of the economic redress initiatives undertaken by South Africa since 1994?
Addressing disparities created by the apartheid regime
What is the primary focus of the BBBEE policies?
Integrating previously disadvantaged groups into the workforce more effectively
What is the primary advantage of the Unemployment Insurance Fund (UIF)?
Provides temporary financial assistance to qualified individuals who have lost their jobs
What is the primary objective of the education reforms in South Africa?
Equipping the youth with necessary skills
What is the primary challenge faced by the government in addressing unemployment?
Multifaceted issue with deep historical roots and broad social impacts
What is the primary goal of the Tirisano Campaign in South Africa?
To promote effective schooling and broader educational access
Which of the following initiatives aims to correct historical imbalances in business ownership and management positions?
Increased Black Ownership
What is the primary goal of the Employment Equity Act in South Africa?
To ensure a more inclusive and fair work environment
What is the primary objective of the Land Reform initiative in South Africa?
To redistribute land or provide compensation to those dispossessed during apartheid
Which of the following initiatives provides financial assistance to small businesses in South Africa?
Khula Enterprise Finance
What is the primary goal of the Black Economic Empowerment (BEE) initiative in South Africa?
To facilitate participation in the economy by historically marginalized groups
What is the primary objective of the Labour Relations Act in South Africa?
To balance employer and employee needs and promote fair labor practices
What is the primary goal of the economic redress initiatives in South Africa?
To create a more inclusive and equitable society
What is the primary consequence of price floors and ceilings in the economy?
Distortion of the natural balance of demand and supply
What is the primary objective of basic income grants?
To alleviate poverty and stimulate economic activity
What is the primary challenge faced by governments when intervening in the economy?
Balancing economic efficiency and growth
What is the primary function of the Production Possibility Curve (PPC)?
To illustrate the trade-offs and opportunity costs associated with resource allocation
What is the effect of an improvement in technology on the Production Possibility Curve (PPC)?
An outward shift in the PPC
What is the primary purpose of indifference curves in relation to the Production Possibility Curve (PPC)?
To show the different combinations of two goods that provide the same level of satisfaction
What is the primary advantage of privatization?
Increased efficiency and reduced public sector burdens
What is the primary goal of government intervention in markets?
To address market imperfections and promote social welfare
What is the consequence of a market failure to allocate resources efficiently?
Inefficiencies in resource allocation
What is the primary role of the state in the production of goods and services?
To engage in the production of goods and services not adequately provided by the private sector
What is the primary function of prices in a market economy, in terms of resource allocation?
To signal the scarcity or abundance of resources and guide production decisions
What is the key difference between a consumer market and a factor market?
The purpose of the trade, with consumer markets focusing on finished products and factor markets focusing on resources
What is the term for the worth of a good or service in terms of what it can be exchanged for?
Value
In a market economy, what adjusts based on the interaction of supply and demand?
The prices of goods and services
What is the defining characteristic of imperfect markets?
One or more conditions of perfect markets are not met
What is the primary goal of prices in a market economy, in terms of resource allocation?
To allocate resources efficiently
What is the relationship between price and quantity supplied, according to the Law of Supply?
There is a direct relationship between price and quantity supplied
What is the function of the exchange mechanism in a market?
To facilitate the exchange of goods and services between buyers and sellers
What is the primary objective of the Labour Relations Act in South Africa?
To promote collective bargaining and fair labour practices
What is the main difference between frictional unemployment and structural unemployment?
Frictional unemployment is caused by job switching, while structural unemployment is caused by technological changes
What is the primary function of the Commission for Conciliation, Mediation, and Arbitration (CCMA)?
To resolve labour disputes through mediation and arbitration
What is the main reason for the lack of skills in the South African workforce?
Historical educational disparities and industrial reorganization
What is the primary focus of the Labour Relations Act in South Africa?
To promote collective bargaining and fair labour practices
What is the purpose of labour courts in South Africa?
To adjudicate issues related to employment, including disputes over unfair dismissals and actions contrary to the LRA
What is the role of collective bargaining in the labour market?
To negotiate wages and working conditions between unions and employer groups
What is the formula for calculating the unemployment rate?
Number of unemployed individuals divided by the total EAP, multiplied by 100
What is the primary objective of the Labour Relations Act in promoting collective bargaining?
To negotiate wages and working conditions between unions and employer groups
What is the main advantage of collective bargaining agreements in South Africa?
It plays a crucial role in setting wages and working conditions across various sectors
What is a primary cause of high unemployment rates among young people in South Africa?
Lack of experience and rapid pace of change in skill requirements
Which of the following effects of unemployment is a direct consequence of high unemployment rates?
Poverty
Which group of people is historically disadvantaged and faces higher risks of unemployment?
Economically marginalised groups
What is the primary purpose of the Unemployment Insurance Fund (UIF)?
Providing temporary financial assistance to qualified individuals
What is the primary goal of the Reconstruction and Development Programme (RDP)?
Meeting basic needs
What is the primary focus of the Human Resources Development initiative?
Improving education and literacy
What is the primary goal of government interventions in addressing unemployment?
Economic growth and job creation
What is the primary outcome of addressing unemployment in South Africa?
Improved economic growth and job creation
What is the primary challenge in addressing unemployment in South Africa?
Historic disparities and lack of economic opportunities
What is the primary outcome of market equilibrium in a perfectly competitive market?
The quantity demanded equals the quantity supplied
What is the primary function of prices in a market economy?
To allocate resources efficiently
What is the primary consequence of price floors and ceilings in a market economy?
Distortion of the natural balance of demand and supply
What is the primary reason for public sector intervention in the economy, aside from addressing market failures?
To promote social welfare
What is the primary objective of basic income grants?
To provide a minimum income support to all citizens
What is the primary advantage of state production in vital sectors?
Maintaining influence in vital sectors for national security and economic stability
What is the primary consequence of uneven income distribution in an economy?
Increase in social and economic inequalities
What is the primary goal of government spending in the public sector?
To fund public services
What is the primary characteristic of public goods?
They are non-rivalrous and non-excludable
What is the primary objective of government intervention in markets?
To correct market failures and promote efficient allocation of resources
What is the primary challenge faced by governments when intervening in the economy?
Balancing interventions with the need for economic efficiency and growth
What is the primary purpose of price controls in the public sector?
To maintain reasonable prices and prevent exploitation
What is the primary factor influencing the demand for labour in South Africa?
Productivity and technological advancements
What is the primary function of the Production Possibility Curve (PPC)?
To illustrate the concept of opportunity cost
What is the primary goal of taxation in the public sector?
To fund public services
What is the consequence of an economy operating inside the PPC curve?
Inefficient allocation of resources
What is the effect of an outward shift in the Production Possibility Curve (PPC)?
Economic growth
What is the primary role of government policies in addressing market failures?
To move the economy towards the PPC curve
What is the primary purpose of indifference curves in relation to the Production Possibility Curve (PPC)?
To complement the PPC by showing different combinations of two goods that provide the same level of satisfaction
What is the primary outcome of market dynamics and external influences?
Markets respond to changes in demand and supply conditions
What is the primary consequence of underemployment in South Africa?
Underutilization of skills and labour
What is the primary function of regulation in the public sector?
To address market failures
What is the primary advantage of privatization?
Increased economic efficiency
What is the primary outcome of public sector intervention in the economy?
Social welfare is promoted
What is the primary factor influencing the supply of labour in South Africa?
Wages offered
What is the primary goal of government intervention in markets?
To address market imperfections and promote social welfare
What is the primary outcome of market equilibrium?
The allocation of resources is optimal
What is the primary goal of economic policies aimed at reducing unemployment and underemployment in South Africa?
To create new job opportunities and enhance worker productivity
What is the consequence of high inflation rates in an economy?
Erosion of purchasing power
What is the primary role of the Labour Relations Act in South Africa?
To regulate the labour market and promote fair labour practices
What is the primary aim of the Employment Equity Act in South Africa?
To promote equal employment opportunities
Which of the following initiatives is NOT a part of the Tirisano Campaign?
Increased Black Ownership
What is the primary goal of the National Forests Act and Marine Living Resources Act?
To protect the environment
Which of the following is a key outcome of the Labour Relations Act?
Balanced employer and employee needs
What is the primary objective of AsgiSA?
To accelerate growth and reduce unemployment
Which of the following is a characteristic of the economically active population (EAP)?
It includes people who are employed or unemployed but actively looking for work
What is the primary goal of social grants in South Africa?
To reduce poverty
Which of the following is a key outcome of the Black Economic Empowerment (BEE) initiative?
Increased participation in the economy by historically marginalized groups
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
