Nov P2 Med

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What is the primary function of prices in a market economy?

To determine the value of a good or service
To control the level of competition among firms
To provide signals for efficient resource allocation (correct)
To regulate the amount of resources allocated to production

Which of the following is a characteristic of a perfect market?

Information is not readily available to market participants
There is a large number of buyers and sellers (correct)
There are barriers to entry for new firms
A single buyer or seller has the power to influence the market

What is the relationship between price and quantity demanded, according to the Law of Demand?

Directly proportional
Inversely proportional (correct)
There is no relationship between the two
Constantly proportional

What is the primary difference between consumer markets and factor markets?

The type of resources traded (D) Signup and view all the answers

What is the term for the satisfaction a consumer derives from a good or service?

Utility (A) Signup and view all the answers

What is the primary characteristic of imperfect markets?

One or more conditions of perfect markets are not met (B) Signup and view all the answers

What is the term for the amount of money that buyers are willing to pay for a good or service?

Price (B) Signup and view all the answers

What is the relationship between price and quantity supplied, according to the Law of Supply?

Directly proportional (D) Signup and view all the answers

What occurs when the quantity demanded equals the quantity supplied in a market?

Market equilibrium is reached (D) Signup and view all the answers

How do markets allocate resources?

By determining what goods and services are produced and consumed based on collective consumer preferences reflected through prices (A) Signup and view all the answers

What is the primary function of market forces in a market?

To naturally adjust supply and demand to maintain balance and efficiency (B) Signup and view all the answers

What determines the price of goods and services in a market?

The interactions between buyers and sellers, reflecting both the cost of production and the value to consumers (B) Signup and view all the answers

Why does the public sector intervene in the economy?

To address market failures, redistribute income, and provide public goods (C) Signup and view all the answers

What is the purpose of taxation in the public sector?

To fund public services and allocate resources (B) Signup and view all the answers

What is the purpose of subsidies in the public sector?

To make essential goods more affordable and support industries crucial for economic stability (C) Signup and view all the answers

What is the purpose of price controls in the public sector?

To ensure fair pricing and economic equity (D) Signup and view all the answers

What are public goods?

Goods that are non-excludable and non-rivalrous (A) Signup and view all the answers

What is the purpose of minimum prices (price floors) in the public sector?

To guarantee high incomes for producers (A) Signup and view all the answers

What is the main reason for government intervention in markets?

To correct inefficiencies and promote equitable distribution of resources (D) Signup and view all the answers

What is a consequence of uneven income distribution?

Social and economic inequalities (C) Signup and view all the answers

What is the main goal of the Tirisano Campaign?

To promote effective schooling and broader educational access (B) Signup and view all the answers

What is the purpose of regulating monopolies?

To prevent monopolistic practices and promote competition (A) Signup and view all the answers

What is a result of inefficiencies in resource allocation?

Suboptimal position on the PPC (B) Signup and view all the answers

What is the purpose of the Land Reform policy?

To redistribute land and provide compensation to those dispossessed during apartheid (C) Signup and view all the answers

What is the primary factor influencing the demand for labour in South Africa?

Technological advancements and economic cycles (D) Signup and view all the answers

What is the main objective of the Mineral and Energy Control policy?

To ensure benefits from mining activities accrue to all, especially previously disadvantaged communities (D) Signup and view all the answers

What is the primary goal of the Employment Equity Act?

To foster a more inclusive and fair work environment (A) Signup and view all the answers

What is a consequence of underemployment in South Africa?

Reduced productivity and economic growth potential (A) Signup and view all the answers

What is the main purpose of the Khula Enterprise Finance initiative?

To provide loans and guarantees to small businesses (B) Signup and view all the answers

What is a factor influencing the supply of labour in South Africa?

Wages offered (C) Signup and view all the answers

What is the purpose of the PPC in economics?

To provide insights into the trade-offs and choices facing economies due to scarce resources (B) Signup and view all the answers

What is the primary goal of the Black Economic Empowerment (BEE) initiative?

To facilitate participation in the economy by historically marginalized groups (C) Signup and view all the answers

What is the main objective of the Labour Relations Act?

To balance employer and employee needs and promote fair labor practices (C) Signup and view all the answers

What is a consequence of high inflation rates?

Eroding purchasing power and destabilizing the economy (D) Signup and view all the answers

What is the primary purpose of setting minimum and maximum price levels in an economy?

To ensure producers receive a fair price and consumers can afford essential goods (D) Signup and view all the answers

What is the purpose of income redistribution policies?

To reduce income disparities (B) Signup and view all the answers

What is the primary goal of the AsgiSA strategy?

To accelerate growth and reduce unemployment (A) Signup and view all the answers

What is the main objective of social safety nets, such as pensions and disability allowances?

To support individuals who are unable to participate fully in the economy (D) Signup and view all the answers

What is the main reason why the state engages in the production of goods and services?

To provide public goods and services that are not adequately provided by the private sector (D) Signup and view all the answers

What is the name of the economic tool that illustrates the trade-offs and opportunity costs associated with the allocation of limited resources?

Production Possibility Curve (PPC) (C) Signup and view all the answers

What assumption underlies the Production Possibility Curve?

Fixed resources and technology, and full utilization of all resources at the lowest cost (C) Signup and view all the answers

What does a concave Production Possibility Curve suggest?

Increasing opportunity costs (D) Signup and view all the answers

What is the effect of an outward shift in the Production Possibility Curve?

Economic growth, enhanced by better resources, improved technology, or increased investment (A) Signup and view all the answers

What is the primary purpose of indifference curves?

To show different combinations of two goods that provide the same level of satisfaction or utility to a consumer (C) Signup and view all the answers

What is the main challenge for governments when it comes to public sector interventions?

Balancing the need for economic efficiency and growth with the need to address market imperfections and redistribute income (C) Signup and view all the answers

What is the effect of a leftward shift in the Production Possibility Curve?

A reduction in resources or technological setbacks (D) Signup and view all the answers

What is a significant factor contributing to high unemployment rates among young people, especially those aged 16 to 24?

Rapid pace of change in skill requirements (B) Signup and view all the answers

What is a consequence of high unemployment rates?

Poverty and social problems (D) Signup and view all the answers

What is the primary goal of GEAR and ASGI-SA policies?

To achieve economic growth and halve poverty and unemployment (C) Signup and view all the answers

What is the focus of JIPSA?

Acquiring skills urgently needed in the market (A) Signup and view all the answers

What is the purpose of Public Works Programs?

To develop infrastructure projects and create jobs (A) Signup and view all the answers

What is the benefit of supporting Small and Medium Enterprises (SMMEs)?

Essential for job creation and economic diversity (B) Signup and view all the answers

What is the limitation of the Unemployment Insurance Fund (UIF)?

It does not cover those who have never been employed or have been unemployed long-term (D) Signup and view all the answers

What is the purpose of government interventions in addressing economically marginalised groups?

To integrate previously disadvantaged groups into the workforce more effectively (B) Signup and view all the answers

What is the primary goal of the Reconstruction and Development Programme (RDP)?

To democratize both the state and the economy (B) Signup and view all the answers

What is the result of educational reforms in South Africa?

Increased literacy rates and matriculation pass rates (B) Signup and view all the answers

What is a primary objective of the Labour Relations Act in South Africa?

To promote fair labour practices and encourage collective bargaining (A) Signup and view all the answers

What is a key factor that attracts more workers besides higher wages?

Job security and working conditions (C) Signup and view all the answers

What is the primary function of the Commission for Conciliation, Mediation, and Arbitration (CCMA)?

To resolve labour disputes through mediation and arbitration (C) Signup and view all the answers

What is the main purpose of collective bargaining agreements?

To negotiate wages, hours, and other terms of employment (B) Signup and view all the answers

What is the name of the act that sets minimum employment conditions and promotes workplace safety?

Basic Conditions of Employment Act (C) Signup and view all the answers

What is the term for unemployment that occurs when individuals switch jobs or enter the workforce?

Frictional unemployment (D) Signup and view all the answers

What is a significant characteristic of unemployment in South Africa?

Lack of skills among the workforce (D) Signup and view all the answers

What is the purpose of the Labour Courts in South Africa?

To adjudicate issues related to employment and enforce labour laws (A) Signup and view all the answers

What is the term for the calculation of the unemployment rate?

Number of unemployed individuals divided by the total EAP, multiplied by 100 (A) Signup and view all the answers

What is the name of the act that supports self-government by allowing workers and employers to form and join unions and employer organisations?

Labour Relations Act (B) Signup and view all the answers

What is the primary function of a market?

To facilitate the interaction between buyers and sellers (A) Signup and view all the answers

What is the main difference between consumer markets and factor markets?

Consumer markets deal with finished products, while factor markets deal with raw materials (C) Signup and view all the answers

What happens when the quantity demanded equals the quantity supplied in a market?

The market is in a state of equilibrium (A) Signup and view all the answers

What is the primary characteristic of imperfect markets?

The presence of informational asymmetry (C) Signup and view all the answers

What determines the value of a good or service?

The worth of the good or service in terms of what it can be exchanged for (B) Signup and view all the answers

What is the primary role of prices in a market economy?

To allocate resources efficiently (B) Signup and view all the answers

What is the term for the transfer of goods or services from sellers to buyers at agreed prices?

Exchange mechanism (A) Signup and view all the answers

What is the main difference between perfect markets and imperfect markets?

The presence or absence of barriers to entry (A) Signup and view all the answers

What is the primary consequence of uneven income distribution?

Social and economic inequalities (B) Signup and view all the answers

What is the primary goal of government intervention in markets?

To correct market failures and promote equitable distribution of resources (A) Signup and view all the answers

What is the primary factor influencing the supply of labour in South Africa?

Wages offered (D) Signup and view all the answers

What is the primary consequence of high inflation rates?

Purchasing power erosion (A) Signup and view all the answers

What is the primary purpose of the Production Possibility Curve (PPC)?

To illustrate the trade-offs and opportunity costs associated with the allocation of limited resources (D) Signup and view all the answers

What is the primary consequence of inefficiencies in resource allocation?

Suboptimal position on the PPC (C) Signup and view all the answers

What is the primary goal of regulating monopolies?

To prevent monopolistic practices and promote competition (A) Signup and view all the answers

What is the primary consequence of underemployment in South Africa?

Reduced productivity and economic growth (C) Signup and view all the answers

What is the primary purpose of income redistribution policies?

To reduce income disparities (B) Signup and view all the answers

What is the primary goal of government policies in addressing market failures?

To move the economy towards the PPC (A) Signup and view all the answers

What is the primary goal of setting minimum and maximum price levels in an economy?

To ensure producers receive a fair price and consumers can afford essential goods (A) Signup and view all the answers

What is the main purpose of social safety nets, such as pensions and disability allowances?

To support individuals who are unable to participate fully in the economy (C) Signup and view all the answers

What is the main reason why the state engages in the production of goods and services?

To provide public goods and services that are not adequately provided by the private sector (B) Signup and view all the answers

What is the effect of an outward shift in the Production Possibility Curve?

Increased economic growth and efficiency (C) Signup and view all the answers

What is the primary purpose of indifference curves?

To complement the Production Possibility Curve by showing different combinations of two goods that provide the same level of satisfaction (B) Signup and view all the answers

What is the main challenge for governments when it comes to public sector interventions?

Balancing interventions with the need for economic efficiency and growth (A) Signup and view all the answers

What is the effect of a leftward shift in the Production Possibility Curve?

Reduced economic growth and efficiency (A) Signup and view all the answers

What is the primary goal of state production in strategic sectors?

To maintain influence in vital sectors like energy and transportation (A) Signup and view all the answers

What is the primary purpose of privatization?

To reduce public sector burdens and increase efficiency (D) Signup and view all the answers

What assumption underlies the Production Possibility Curve?

Fixed resources and technology (C) Signup and view all the answers

What is the primary function of markets in resource allocation?

To allocate resources based on consumer preferences (C) Signup and view all the answers

What is the result of market forces adjusting supply and demand conditions?

Adjustments to new equilibria (B) Signup and view all the answers

What is the primary reason for public sector intervention in the economy?

All of the above (D) Signup and view all the answers

What is the purpose of indirect taxes?

To raise revenue (A) Signup and view all the answers

What is the difference between price ceilings and price floors?

Price ceilings are set to make essential goods more affordable, while price floors are set to guarantee incomes for producers (B) Signup and view all the answers

What is the purpose of public goods?

To provide essential services to the public (A) Signup and view all the answers

What is the effect of market equilibrium on the market price?

The market price is stable (C) Signup and view all the answers

What is the primary function of government spending in the public sector?

To fund public services (B) Signup and view all the answers

What is the purpose of subsidies to consumers?

To make essential goods more affordable (A) Signup and view all the answers

What is the primary goal of market dynamics and external influences?

To understand how prices are set and resources are allocated (B) Signup and view all the answers

What is a major contributor to high unemployment rates among young people, especially those aged 16 to 24?

Rapid pace of technological change in the job market (B) Signup and view all the answers

Which of the following is a cause of unemployment in South Africa?

Mechanisation and technological advancements (D) Signup and view all the answers

What is a social problem associated with high unemployment rates?

Increased substance abuse (B) Signup and view all the answers

What is the primary goal of the Unemployment Insurance Fund (UIF)?

To provide temporary financial assistance to qualified individuals who have lost their jobs (C) Signup and view all the answers

What is a characteristic of economically marginalised groups?

They have had lesser economic opportunities (C) Signup and view all the answers

What is the primary focus of the Reconstruction and Development Programme (RDP)?

To democratize the state and economy, and to provide basic needs (A) Signup and view all the answers

What is the primary goal of education and training initiatives in South Africa?

To equip the youth with necessary skills to address unemployment (C) Signup and view all the answers

What is a consequence of high unemployment rates in South Africa?

Increased poverty rates (C) Signup and view all the answers

What is the primary goal of promoting local production and supporting small and medium enterprises (SMMEs)?

To support local businesses and job creation (A) Signup and view all the answers

What is the primary approach to addressing unemployment in South Africa?

A multifaceted approach including education reform, skills development, and targeted social policies (A) Signup and view all the answers

What is the main goal of the Tirisano Campaign in South Africa?

To promote effective schooling, professional teaching, and broader educational access (A) Signup and view all the answers

Which policy aims to correct historical imbalances in business ownership and management positions?

Increased Black Ownership (B) Signup and view all the answers

What is the purpose of the Mineral and Energy Control policy?

To regulate mining activities and ensure benefits accrue to all (D) Signup and view all the answers

What is the primary goal of the Labour Relations Act?

To balance employer and employee needs and promote fair labor practices (B) Signup and view all the answers

What is the primary purpose of the Khula Enterprise Finance initiative?

To provide financial assistance to small businesses (A) Signup and view all the answers

What is the main goal of the Black Economic Empowerment (BEE) initiative?

To facilitate participation in the economy by historically marginalized groups (A) Signup and view all the answers

What is the primary goal of the AsgiSA strategy?

To accelerate growth and reduce unemployment (C) Signup and view all the answers

What is the main objective of social safety nets, such as pensions and disability allowances?

To mitigate extreme poverty among the most vulnerable populations (D) Signup and view all the answers

What is the primary objective of the Labour Relations Act?

To encourage collective bargaining and fair labour practices (D) Signup and view all the answers

What is the main difference between frictional unemployment and cyclical unemployment?

Cyclical unemployment is associated with the economic cycles (A) Signup and view all the answers

What is the role of the Commission for Conciliation, Mediation, and Arbitration (CCMA)?

To resolve labour disputes through mediation and arbitration (D) Signup and view all the answers

What is the primary purpose of collective bargaining agreements?

To negotiate wages and working conditions across various sectors (C) Signup and view all the answers

What is the main reason for the lack of skills among the South African population?

Historical educational disparities (A) Signup and view all the answers

What is the function of labour courts in South Africa?

To adjudicate issues related to employment, including disputes over unfair dismissals and actions contrary to the LRA (C) Signup and view all the answers

What is the primary objective of the Labour Relations Act in terms of self-government?

To allow workers to form and join unions (A) Signup and view all the answers

What is the main characteristic of structural unemployment?

It results from industrial reorganization and skill mismatches (C) Signup and view all the answers

What is the purpose of the Basic Conditions of Employment Act?

To set minimum employment conditions and promote workplace safety (A) Signup and view all the answers

What is the primary purpose of international labour conventions?

To dictate standards on issues ranging from child labour to discrimination and hours of work (C) Signup and view all the answers

What is the primary function of a market?

To facilitate the exchange of goods and services (C) Signup and view all the answers

What is a key characteristic of imperfect markets?

One or more conditions of perfect markets are not met (B) Signup and view all the answers

What is the term for the worth of a good or service in terms of what it can be exchanged for?

Value (C) Signup and view all the answers

What occurs when the quantity demanded equals the quantity supplied in a market?

Market equilibrium (A) Signup and view all the answers

What is the term for the satisfaction a consumer derives from a good or service?

Utility (B) Signup and view all the answers

What type of market deals with the exchange of finished products?

Consumer market (C) Signup and view all the answers

What is the primary role of prices in a market economy?

To allocate resources efficiently (C) Signup and view all the answers

What is the term for the exchange mechanism in a market?

The transfer of goods or services from sellers to buyers at agreed prices (C) Signup and view all the answers

What is the primary consequence of uneven income distribution?

Social and economic inequalities (A) Signup and view all the answers

What is the primary goal of government intervention in markets?

To correct inefficiencies and promote equitable distribution of resources (C) Signup and view all the answers

What is the primary effect of high inflation rates?

Erosion of purchasing power (C) Signup and view all the answers

What is the primary goal of regulating monopolies?

To prevent monopolistic practices and promote competition (A) Signup and view all the answers

What is the primary consequence of inefficiencies in resource allocation?

Suboptimal position on the PPC (D) Signup and view all the answers

What is the primary factor influencing the demand for labour in South Africa?

All of the above (D) Signup and view all the answers

What is the primary goal of income redistribution policies?

To reduce income disparities (D) Signup and view all the answers

What is the primary goal of the Production Possibility Curve (PPC) in economics?

To illustrate the trade-offs and opportunity costs associated with the allocation of limited resources (B) Signup and view all the answers

What is the primary consequence of underemployment in South Africa?

Reduced productivity and economic growth potential (C) Signup and view all the answers

What is the primary goal of government intervention in the labour market?

To create new job opportunities and enhance worker productivity (B) Signup and view all the answers

Why are young people, especially those aged 16 to 24, more likely to be unemployed?

Rapid pace of change in skill requirements and lack of experience (D) Signup and view all the answers

What is one of the effects of high unemployment rates?

Direct correlation with high poverty rates, impacting millions (A) Signup and view all the answers

What is the main objective of the Public Works Programs?

To create jobs and develop skills (A) Signup and view all the answers

What is the focus of JIPSA?

Acquiring skills urgently needed in the market (A) Signup and view all the answers

What is one of the causes of unemployment?

The growth rate of the population surpassing that of job creation (B) Signup and view all the answers

What is the primary goal of the Unemployment Insurance Fund (UIF)?

To provide temporary financial assistance to qualified individuals who have lost their jobs but does not cover those who have never been employed or have been unemployed long-term (B) Signup and view all the answers

What is the main challenge of addressing unemployment in South Africa?

The multifaceted nature of the issue with deep historical roots and broad social impacts (D) Signup and view all the answers

What is the primary goal of the Reconstruction and Development Programme (RDP)?

To unify the nation and democratize both the state and the economy, transitioning from apartheid-era exclusions (D) Signup and view all the answers

What is the focus of the Government Interventions for economically marginalised groups?

Skills development initiatives, affirmative action, and BBBEE policies (D) Signup and view all the answers

What is a consequence of Mechanisation and Technological Advancements?

Redundancy of many traditional jobs (D) Signup and view all the answers

What is the primary goal of setting minimum and maximum price levels in an economy?

To protect producers and consumers from exploitation and ensure fair prices (A) Signup and view all the answers

What is the main objective of social safety nets, such as pensions and disability allowances?

To support individuals who are unable to participate fully in the economy (A) Signup and view all the answers

What is the main reason why the state engages in the production of goods and services?

To provide public goods and services (A) Signup and view all the answers

What is the effect of an outward shift in the Production Possibility Curve?

An increase in the production of both goods (D) Signup and view all the answers

What is the primary purpose of the Production Possibility Curve?

To illustrate the trade-offs and opportunity costs associated with the allocation of limited resources (B) Signup and view all the answers

What is the primary aim of the Labour Relations Act in South Africa?

To promote fair labour practices and encourage collective bargaining (D) Signup and view all the answers

What is the main challenge for governments when it comes to public sector interventions?

Balancing the need for economic efficiency and growth with the need to address market imperfections (B) Signup and view all the answers

What type of unemployment occurs when individuals switch jobs or enter the workforce?

Frictional unemployment (B) Signup and view all the answers

What is the primary purpose of indifference curves?

To show different combinations of two goods that provide the same level of satisfaction or utility to a consumer (C) Signup and view all the answers

What is the primary role of the Commission for Conciliation, Mediation, and Arbitration (CCMA)?

To resolve labour disputes through mediation and arbitration (B) Signup and view all the answers

What is the effect of a leftward shift in the Production Possibility Curve?

A reduction in resources or technological setbacks (A) Signup and view all the answers

What is the main characteristic of a labour court in South Africa?

It adjudicates issues related to employment, including disputes over unfair dismissals and actions contrary to the LRA (C) Signup and view all the answers

What is the primary goal of basic income grants?

To provide a minimum income to all citizens (A) Signup and view all the answers

What is the shape of the Production Possibility Curve that suggests increasing opportunity costs?

Concave curve (B) Signup and view all the answers

What is the formula used to calculate the unemployment rate?

Number of unemployed individuals divided by the total EAP, multiplied by 100 (D) Signup and view all the answers

What is a significant factor contributing to high unemployment rates among young people, especially those aged 16 to 24?

Lack of skills (A) Signup and view all the answers

What is the primary goal of collective bargaining agreements?

To set wages and working conditions across various sectors (C) Signup and view all the answers

What is the primary objective of the Labour Relations Act in promoting fair labour practices?

To balance the interests of workers and employers (C) Signup and view all the answers

What is the main reason why labour relations are critical for South Africa's ongoing economic development and social cohesion?

To ensure a stable and productive workforce (B) Signup and view all the answers

What is the primary factor influencing the demand for labour in South Africa?

Other factors like working conditions and job security (B) Signup and view all the answers

What is the primary goal of the Tirisano Campaign?

To achieve effective schooling and broader educational access (B) Signup and view all the answers

What is the main objective of the Land Reform policy?

To redistribute land or provide compensation to those dispossessed during apartheid (D) Signup and view all the answers

What is the main purpose of the Employment Equity Act?

To foster a more inclusive and fair work environment (A) Signup and view all the answers

What is the primary goal of the Khula Enterprise Finance initiative?

To provide financial assistance to small businesses (D) Signup and view all the answers

What is the primary outcome of market equilibrium?

Quantity demanded equals quantity supplied (A) Signup and view all the answers

What is the main objective of the Black Economic Empowerment (BEE) initiative?

To facilitate participation in the economy by historically marginalized groups (B) Signup and view all the answers

What is the primary function of markets in allocating resources?

Determining what goods and services are produced and consumed (B) Signup and view all the answers

What is the primary goal of the AsgiSA strategy?

To accelerate growth and reduce unemployment (A) Signup and view all the answers

What is the primary reason for government intervention in markets?

To address market failures and promote social welfare (C) Signup and view all the answers

What is the main objective of social grants?

To mitigate extreme poverty among the most vulnerable populations (A) Signup and view all the answers

What is the primary goal of the Labour Relations Act?

To balance employer and employee needs and promote fair labor practices (B) Signup and view all the answers

What is the primary purpose of subsidies in the public sector?

To support industries crucial for economic stability (C) Signup and view all the answers

What is the effect of a maximum price (price ceiling) set too low?

Shortage of goods and black markets (C) Signup and view all the answers

What is the primary characteristic of public goods?

Non-excludable and non-rivalrous (A) Signup and view all the answers

What is the primary purpose of government spending in the public sector?

To fund public services (B) Signup and view all the answers

What is the primary effect of market forces on the economy?

To naturally adjust supply and demand to maintain balance and efficiency (B) Signup and view all the answers

What is the primary purpose of indirect taxes in the public sector?

To discourage consumption and raise revenue (C) Signup and view all the answers

What is the primary outcome of market dynamics and external influences?

Adjustments to new equilibria as required by economic shifts (C) Signup and view all the answers

What is the primary function of a market?

To facilitate the exchange of goods and services (D) Signup and view all the answers

Which of the following is a characteristic of imperfect markets?

One or more conditions of perfect markets are not met (C) Signup and view all the answers

What is the relationship between the quantity demanded and the price of a good or service?

Inverse relationship (C) Signup and view all the answers

What is the primary function of prices in a market economy?

To allocate resources efficiently (B) Signup and view all the answers

What is the difference between consumer markets and factor markets?

Consumer markets deal with finished products, while factor markets deal with resources (B) Signup and view all the answers

What is the primary characteristic of a market?

Sellers and buyers (A) Signup and view all the answers

What is the relationship between the quantity supplied and the price of a good or service?

Direct relationship (A) Signup and view all the answers

What determines the price of goods and services in a market?

The interaction of supply and demand (B) Signup and view all the answers

What is the primary outcome when the quantity demanded equals the quantity supplied in a market?

A stable market price is achieved (A) Signup and view all the answers

How do markets allocate resources?

By determining what goods and services are produced and consumed based on collective consumer preferences (D) Signup and view all the answers

What is the primary purpose of public sector intervention in the economy?

To address market failures, redistribute income, provide public goods, and regulate economic activity (B) Signup and view all the answers

What is the primary reason for government intervention in markets?

To address market failures and promote social welfare (C) Signup and view all the answers

What is the primary purpose of subsidies in the public sector?

To support industries crucial for economic stability (C) Signup and view all the answers

What is the primary purpose of price controls in the public sector?

To ensure fair pricing and economic equity (A) Signup and view all the answers

What is the primary characteristic of public goods?

They are non-excludable and non-rivalrous (B) Signup and view all the answers

What is the primary purpose of taxation in the public sector?

To fund public services (C) Signup and view all the answers

What is the primary goal of government intervention in markets?

To address market failures and promote social welfare (C) Signup and view all the answers

What is the primary purpose of regulation in the public sector?

To regulate economic activity and protect the environment (D) Signup and view all the answers

What is the primary goal of government intervention in markets?

To correct inefficiencies and promote equitable distribution of resources (D) Signup and view all the answers

What is a consequence of inefficient resource allocation?

The economy operates at a point inside the PPC curve (A) Signup and view all the answers

What is the primary factor influencing the supply of labour in South Africa?

Wages offered (B) Signup and view all the answers

What is the purpose of regulating monopolies?

To promote competition (D) Signup and view all the answers

What is the effect of high inflation rates?

Erosion of purchasing power (C) Signup and view all the answers

What is the primary goal of indifference curves?

To understand consumer preferences and the impact of changes in income or prices (A) Signup and view all the answers

What is the primary goal of government policies aimed at addressing income disparities?

To reduce income disparities (B) Signup and view all the answers

What is the primary consequence of underemployment in South Africa?

Underutilization of skills and reduced economic growth potential (C) Signup and view all the answers

What is the primary goal of the PPC in economics?

To illustrate the trade-offs and opportunity costs associated with the allocation of limited resources (A) Signup and view all the answers

What is the primary goal of environmental regulations?

To prevent businesses from causing irreversible environmental damage (B) Signup and view all the answers

What is the primary objective of the Labour Relations Act?

To promote fair labour practices, encourage collective bargaining, and ensure peaceful resolution of labour disputes (D) Signup and view all the answers

What is the primary objective of minimum price levels in an economy?

To ensure producers receive a fair price (A) Signup and view all the answers

What is the term for the number of unemployed individuals divided by the total Economically Active Population, multiplied by 100?

Unemployment rate (B) Signup and view all the answers

Which of the following is a characteristic of a Production Possibility Curve?

It represents the maximum potential output of two goods or services (D) Signup and view all the answers

What type of unemployment occurs when individuals switch jobs or enter the workforce?

Frictional unemployment (A) Signup and view all the answers

What is the effect of an improvement in technology on the Production Possibility Curve?

It shifts the curve to the right (D) Signup and view all the answers

What is the primary purpose of social safety nets?

To support individuals who are unable to participate fully in the economy (A) Signup and view all the answers

What is the primary characteristic of South Africa's unemployment?

Lack of skills (D) Signup and view all the answers

What is the main challenge for governments when it comes to public sector interventions?

To balance interventions with the need for economic efficiency and growth (A) Signup and view all the answers

What is the purpose of the Commission for Conciliation, Mediation, and Arbitration?

To resolve labour disputes through mediation and arbitration (D) Signup and view all the answers

What is the primary purpose of privatization?

To reduce public sector burdens (C) Signup and view all the answers

What is the purpose of collective bargaining agreements?

To negotiate wages, hours, and other terms of employment (B) Signup and view all the answers

What is the shape of the Production Possibility Curve that suggests increasing opportunity costs?

Concave (A) Signup and view all the answers

What is the role of labour courts in South Africa?

To adjudicate issues related to employment (D) Signup and view all the answers

What is a consequence of high unemployment rates?

Social unrest (C) Signup and view all the answers

What is the primary purpose of the Production Possibility Curve?

To illustrate the concept of opportunity cost (B) Signup and view all the answers

What is the primary goal of welfare policies?

To support individuals who are unable to participate fully in the economy (B) Signup and view all the answers

What is the primary goal of the government's labour relations policies?

To balance the interests of workers and employers while promoting economic efficiency and social justice (B) Signup and view all the answers

What is the role of international labour conventions in South Africa?

To set international standards on issues ranging from child labour to discrimination and hours of work (D) Signup and view all the answers

What is the effect of a leftward shift in the Production Possibility Curve?

It indicates a reduction in resources or technological setbacks (B) Signup and view all the answers

What is the primary goal of the Tirisano Campaign?

To target effective schooling, professional teaching, and broader educational access (B) Signup and view all the answers

What is the main objective of the Land Reform policy?

To redistribute land or provide compensation to those dispossessed during apartheid (D) Signup and view all the answers

What is the primary goal of the Black Economic Empowerment (BEE) initiative?

To facilitate participation in the economy by historically marginalized groups (D) Signup and view all the answers

What is the primary goal of the Labour Relations Act?

To balance employer and employee needs and promote fair labor practices (A) Signup and view all the answers

What is the primary purpose of the Khula Enterprise Finance initiative?

To provide financial assistance to small businesses (D) Signup and view all the answers

What is the main objective of the Mineral and Energy Control policy?

To regulate mining activities to ensure benefits accrue to all, especially previously disadvantaged communities (C) Signup and view all the answers

What is the primary goal of the Employment Equity Act?

To foster a more inclusive and fair work environment (D) Signup and view all the answers

What is the primary goal of the AsgiSA strategy?

To accelerate growth and reduce unemployment (C) Signup and view all the answers

What is a major factor contributing to the high unemployment rates among young people, especially those aged 16 to 24?

Lack of experience and rapid pace of change in skill requirements (C) Signup and view all the answers

What is a consequence of high unemployment rates?

Poverty and social problems (A) Signup and view all the answers

What is the primary goal of GEAR and ASGI-SA policies?

Reducing poverty and unemployment (D) Signup and view all the answers

What is the focus of Public Works Programs?

Creating jobs and developing skills (D) Signup and view all the answers

What is the purpose of the Unemployment Insurance Fund (UIF)?

Providing temporary financial assistance to qualified individuals who have lost their jobs (D) Signup and view all the answers

What is a characteristic of economically marginalised groups?

Higher risks of unemployment (A) Signup and view all the answers

What is the primary goal of government interventions in the economy?

All of the above (D) Signup and view all the answers

What is the focus of the Reconstruction and Development Programme (RDP)?

Meeting basic needs, nation building, and democratization (C) Signup and view all the answers

What is the primary goal of education and training initiatives?

Equipping the youth with necessary skills (C) Signup and view all the answers

What is a consequence of the apartheid era's policies?

Profound disparities in education and skill distribution (B) Signup and view all the answers

What is the primary function of a market?

To facilitate the exchange of goods and services (A) Signup and view all the answers

What is a characteristic of imperfect markets?

One or more conditions of perfect markets are not met (C) Signup and view all the answers

What determines the value of a good or service?

What it can be exchanged for (B) Signup and view all the answers

What is the role of prices in a market economy?

To signal the scarcity or abundance of goods and services (C) Signup and view all the answers

What type of market deals with the exchange of resources necessary for production?

Factor market (D) Signup and view all the answers

What is the relationship between the quantity demanded and the price of a good?

Inverse (C) Signup and view all the answers

What is the term for the transfer of goods or services from sellers to buyers at agreed prices?

Exchange mechanism (A) Signup and view all the answers

What type of market is characterized by a large number of buyers and sellers, no barriers to entry, and full information availability?

Perfect market (B) Signup and view all the answers

What is the primary function of markets in an economy?

To allocate resources based on collective consumer preferences (B) Signup and view all the answers

What is the effect of an external shock on the market?

It causes prices to adjust to a new equilibrium (D) Signup and view all the answers

What is the primary reason for public sector intervention in the economy?

To address market failures and promote social welfare (A) Signup and view all the answers

What is the difference between direct and indirect taxes?

Direct taxes are levied on income, while indirect taxes are levied on goods and services (D) Signup and view all the answers

What is the purpose of price controls in the public sector?

To regulate prices and prevent exploitation (B) Signup and view all the answers

What is the effect of a maximum price (price ceiling)?

It results in a shortage of goods (C) Signup and view all the answers

What is the purpose of state production in the public sector?

To provide merit goods and public goods (C) Signup and view all the answers

What is the primary goal of government intervention in markets?

To address market failures and promote social welfare (A) Signup and view all the answers

What is the effect of government spending on the economy?

It results in an increase in economic activity (A) Signup and view all the answers

What is the primary purpose of subsidies in the public sector?

To support industries crucial for economic stability (A) Signup and view all the answers

What is the primary objective of setting minimum and maximum price levels in an economy?

To ensure producers receive a fair price and consumers can afford essential goods (C) Signup and view all the answers

What is the main purpose of social safety nets, such as pensions and disability allowances?

To provide welfare to support individuals who are unable to participate fully in the economy (D) Signup and view all the answers

What is the primary reason why the state engages in the production of goods and services?

To maintain strategic control in vital sectors (D) Signup and view all the answers

What is the effect of an outward shift in the Production Possibility Curve?

Economic growth and increased efficiency (B) Signup and view all the answers

What is the main challenge for governments when it comes to public sector interventions?

Balancing interventions with the need for economic efficiency and growth (B) Signup and view all the answers

What is the primary purpose of indifference curves?

To provide a graphical representation of consumer preferences and satisfaction (C) Signup and view all the answers

What is the shape of the Production Possibility Curve that suggests decreasing opportunity costs?

Convex (B) Signup and view all the answers

What is the effect of a leftward shift in the Production Possibility Curve?

Economic contraction and decreased efficiency (C) Signup and view all the answers

What assumption underlies the Production Possibility Curve?

Fixed resources and technology (C) Signup and view all the answers

What is the primary purpose of the Production Possibility Curve?

To illustrate the trade-offs and opportunity costs associated with the allocation of limited resources (D) Signup and view all the answers

What is the primary reason for market failures?

Inefficient allocation of resources (D) Signup and view all the answers

What is the purpose of environmental regulations?

To prevent businesses from causing environmental harm (C) Signup and view all the answers

What is the effect of inefficiencies in resource allocation?

The economy operates inside the PPC curve (C) Signup and view all the answers

What is the main factor influencing the supply of labour in South Africa?

All of the above (D) Signup and view all the answers

What is the primary goal of government intervention in markets?

To correct inefficiencies and promote equitable resource allocation (B) Signup and view all the answers

What is the consequence of high inflation rates?

Erosion of purchasing power and destabilization of the economy (B) Signup and view all the answers

What is the purpose of income redistribution policies?

To reduce income disparities (A) Signup and view all the answers

What is the primary factor influencing the demand for labour in South Africa?

All of the above (D) Signup and view all the answers

What is the consequence of underemployment in South Africa?

Reduced productivity and economic growth potential (A) Signup and view all the answers

What is the primary purpose of the PPC in economics?

To illustrate the trade-offs and opportunity costs of resource allocation (B) Signup and view all the answers

What is the primary goal of the Tirisano Campaign?

To promote effective schooling, professional teaching, and broader educational access (A) Signup and view all the answers

What is the purpose of the Employment Equity Act?

To foster a more inclusive and fair work environment (A) Signup and view all the answers

What is the primary goal of the Land Reform policy?

To redistribute land or provide compensation to those dispossessed during apartheid (B) Signup and view all the answers

What is the purpose of the Khula Enterprise Finance initiative?

To provide financial assistance to small businesses (B) Signup and view all the answers

What is the primary goal of the Black Economic Empowerment (BEE) initiative?

To facilitate participation in the economy by historically marginalized groups (B) Signup and view all the answers

What is the primary goal of the Labour Relations Act?

To balance employer and employee needs and promote fair labor practices (D) Signup and view all the answers

What is the primary goal of the AsgiSA strategy?

To accelerate growth and reduce unemployment (C) Signup and view all the answers

What is the purpose of social safety nets, such as pensions and disability allowances?

To mitigate extreme poverty among the most vulnerable populations (A) Signup and view all the answers

What is the primary objective of the Labour Relations Act?

To promote collective bargaining and fair labour practices (D) Signup and view all the answers

Which of the following is a characteristic specific to South Africa's labour market?

Lack of skills (C) Signup and view all the answers

What is the role of the Commission for Conciliation, Mediation, and Arbitration (CCMA)?

To resolve labour disputes through mediation and arbitration (A) Signup and view all the answers

What is the primary function of labour courts in South Africa?

To adjudicate issues related to employment, including unfair dismissals and actions contrary to the LRA (B) Signup and view all the answers

What is the relationship between higher wages and the labour market?

Higher wages attract more workers (B) Signup and view all the answers

What is the purpose of collective bargaining agreements?

To set wages and working conditions across various sectors (B) Signup and view all the answers

What is the impact of a lack of skills on the labour market in South Africa?

It results in a mismatch between the skills of the workforce and the jobs available (B) Signup and view all the answers

What is the primary objective of the Labour Relations Act in promoting fair labour practices?

To protect workers' rights and job security (D) Signup and view all the answers

What is the role of the Labour Relations Act in supporting self-government?

By allowing workers and employers to form and join unions and employer organisations (B) Signup and view all the answers

What is the purpose of international labour conventions?

To dictate standards on issues ranging from child labour to discrimination and hours of work (A) Signup and view all the answers

What is a major reason for the high unemployment rates among young people in South Africa?

Lack of experience and rapid pace of change in skill requirements (D) Signup and view all the answers

What is the primary consequence of high unemployment rates in South Africa?

Poverty and its impact on millions of people (A) Signup and view all the answers

What is the primary goal of the Public Works Programs in addressing unemployment?

To create jobs and develop skills through infrastructure projects (D) Signup and view all the answers

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 (C) Signup and view all the answers

What is the primary focus of the JIPSA initiative in addressing unemployment?

To acquire skills urgently needed in the market (D) Signup and view all the answers

What is the primary goal of the Reconstruction and Development Programme (RDP) in addressing basic needs?

To direct efforts towards housing, healthcare, and basic utilities like water and electricity (A) Signup and view all the answers

What is the primary goal of the Government's skills development initiatives in addressing unemployment?

To equip the youth with necessary skills to integrate into the workforce (A) Signup and view all the answers

What is the primary consequence of the growth of the population surpassing that of job creation?

High unemployment rates and social problems (A) Signup and view all the answers

What is the primary goal of the Government's economic interventions in addressing unemployment?

To address the disparities created by the apartheid regime (D) Signup and view all the answers

What is the primary focus of the Government's initiatives in addressing economically marginalised groups?

To integrate previously disadvantaged groups into the workforce more effectively through skills development and affirmative action (D) Signup and view all the answers

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Questions and Answers

What is the primary function of prices in a market economy?

Which of the following is a characteristic of a perfect market?

What is the relationship between price and quantity demanded, according to the Law of Demand?

What is the primary difference between consumer markets and factor markets?

What is the term for the satisfaction a consumer derives from a good or service?

What is the primary characteristic of imperfect markets?

What is the term for the amount of money that buyers are willing to pay for a good or service?

What is the relationship between price and quantity supplied, according to the Law of Supply?

What occurs when the quantity demanded equals the quantity supplied in a market?

How do markets allocate resources?

What is the primary function of market forces in a market?

What determines the price of goods and services in a market?

Why does the public sector intervene in the economy?

What is the purpose of taxation in the public sector?

What is the purpose of subsidies in the public sector?

What is the purpose of price controls in the public sector?

What are public goods?

What is the purpose of minimum prices (price floors) in the public sector?

What is the main reason for government intervention in markets?

What is a consequence of uneven income distribution?

What is the main goal of the Tirisano Campaign?

What is the purpose of regulating monopolies?

What is a result of inefficiencies in resource allocation?

What is the purpose of the Land Reform policy?

What is the primary factor influencing the demand for labour in South Africa?

What is the main objective of the Mineral and Energy Control policy?

What is the primary goal of the Employment Equity Act?

What is a consequence of underemployment in South Africa?

What is the main purpose of the Khula Enterprise Finance initiative?

What is a factor influencing the supply of labour in South Africa?

What is the purpose of the PPC in economics?

What is the primary goal of the Black Economic Empowerment (BEE) initiative?

What is the main objective of the Labour Relations Act?

What is a consequence of high inflation rates?

What is the primary purpose of setting minimum and maximum price levels in an economy?

What is the purpose of income redistribution policies?

What is the primary goal of the AsgiSA strategy?

What is the main objective of social safety nets, such as pensions and disability allowances?

What is the main reason why the state engages in the production of goods and services?

What is the name of the economic tool that illustrates the trade-offs and opportunity costs associated with the allocation of limited resources?

What assumption underlies the Production Possibility Curve?

What does a concave Production Possibility Curve suggest?

What is the effect of an outward shift in the Production Possibility Curve?

What is the primary purpose of indifference curves?

What is the main challenge for governments when it comes to public sector interventions?

What is the effect of a leftward shift in the Production Possibility Curve?

What is a significant factor contributing to high unemployment rates among young people, especially those aged 16 to 24?

What is a consequence of high unemployment rates?

What is the primary goal of GEAR and ASGI-SA policies?

What is the focus of JIPSA?

What is the purpose of Public Works Programs?

What is the benefit of supporting Small and Medium Enterprises (SMMEs)?

What is the limitation of the Unemployment Insurance Fund (UIF)?

What is the purpose of government interventions in addressing economically marginalised groups?

What is the primary goal of the Reconstruction and Development Programme (RDP)?

What is the result of educational reforms in South Africa?

What is a primary objective of the Labour Relations Act in South Africa?

What is a key factor that attracts more workers besides higher wages?

What is the primary function of the Commission for Conciliation, Mediation, and Arbitration (CCMA)?

What is the main purpose of collective bargaining agreements?

What is the name of the act that sets minimum employment conditions and promotes workplace safety?

What is the term for unemployment that occurs when individuals switch jobs or enter the workforce?

What is a significant characteristic of unemployment in South Africa?

What is the purpose of the Labour Courts in South Africa?

What is the term for the calculation of the unemployment rate?

What is the name of the act that supports self-government by allowing workers and employers to form and join unions and employer organisations?

What is the primary function of a market?

What is the main difference between consumer markets and factor markets?

What happens when the quantity demanded equals the quantity supplied in a market?

What is the primary characteristic of imperfect markets?

What determines the value of a good or service?

What is the primary role of prices in a market economy?

What is the term for the transfer of goods or services from sellers to buyers at agreed prices?

What is the main difference between perfect markets and imperfect markets?

What is the primary consequence of uneven income distribution?

What is the primary goal of government intervention in markets?