330 Questions
What is the primary function of prices in a market economy?
To provide signals for efficient resource allocation
Which of the following is a characteristic of a perfect market?
There is a large number of buyers and sellers
What is the relationship between price and quantity demanded, according to the Law of Demand?
Inversely proportional
What is the primary difference between consumer markets and factor markets?
The type of resources traded
What is the term for the satisfaction a consumer derives from a good or service?
Utility
What is the primary characteristic of imperfect markets?
One or more conditions of perfect markets are not met
What is the term for the amount of money that buyers are willing to pay for a good or service?
Price
What is the relationship between price and quantity supplied, according to the Law of Supply?
Directly proportional
What occurs when the quantity demanded equals the quantity supplied in a market?
Market equilibrium is reached
How do markets allocate resources?
By determining what goods and services are produced and consumed based on collective consumer preferences reflected through prices
What is the primary function of market forces in a market?
To naturally adjust supply and demand to maintain balance and efficiency
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
Why does the public sector intervene in the economy?
To address market failures, redistribute income, and provide public goods
What is the purpose of taxation in the public sector?
To fund public services and allocate resources
What is the purpose of subsidies in the public sector?
To make essential goods more affordable and support industries crucial for economic stability
What is the purpose of price controls in the public sector?
To ensure fair pricing and economic equity
What are public goods?
Goods that are non-excludable and non-rivalrous
What is the purpose of minimum prices (price floors) in the public sector?
To guarantee high incomes for producers
What is the main reason for government intervention in markets?
To correct inefficiencies and promote equitable distribution of resources
What is a consequence of uneven income distribution?
Social and economic inequalities
What is the main goal of the Tirisano Campaign?
To promote effective schooling and broader educational access
What is the purpose of regulating monopolies?
To prevent monopolistic practices and promote competition
What is a result of inefficiencies in resource allocation?
Suboptimal position on the PPC
What is the purpose of the Land Reform policy?
To redistribute land and provide compensation to those dispossessed during apartheid
What is the primary factor influencing the demand for labour in South Africa?
Technological advancements and economic cycles
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
What is the primary goal of the Employment Equity Act?
To foster a more inclusive and fair work environment
What is a consequence of underemployment in South Africa?
Reduced productivity and economic growth potential
What is the main purpose of the Khula Enterprise Finance initiative?
To provide loans and guarantees to small businesses
What is a factor influencing the supply of labour in South Africa?
Wages offered
What is the purpose of the PPC in economics?
To provide insights into the trade-offs and choices facing economies due to scarce resources
What is the primary goal of the Black Economic Empowerment (BEE) initiative?
To facilitate participation in the economy by historically marginalized groups
What is the main objective of the Labour Relations Act?
To balance employer and employee needs and promote fair labor practices
What is a consequence of high inflation rates?
Eroding purchasing power and destabilizing the economy
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
What is the purpose of income redistribution policies?
To reduce income disparities
What is the primary goal of the AsgiSA strategy?
To accelerate growth and reduce unemployment
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
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
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)
What assumption underlies the Production Possibility Curve?
Fixed resources and technology, and full utilization of all resources at the lowest cost
What does a concave Production Possibility Curve suggest?
Increasing opportunity costs
What is the effect of an outward shift in the Production Possibility Curve?
Economic growth, enhanced by better resources, improved technology, or increased investment
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
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
What is the effect of a leftward shift in the Production Possibility Curve?
A reduction in resources or technological setbacks
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
What is a consequence of high unemployment rates?
Poverty and social problems
What is the primary goal of GEAR and ASGI-SA policies?
To achieve economic growth and halve poverty and unemployment
What is the focus of JIPSA?
Acquiring skills urgently needed in the market
What is the purpose of Public Works Programs?
To develop infrastructure projects and create jobs
What is the benefit of supporting Small and Medium Enterprises (SMMEs)?
Essential for job creation and economic diversity
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
What is the purpose of government interventions in addressing economically marginalised groups?
To integrate previously disadvantaged groups into the workforce more effectively
What is the primary goal of the Reconstruction and Development Programme (RDP)?
To democratize both the state and the economy
What is the result of educational reforms in South Africa?
Increased literacy rates and matriculation pass rates
What is a primary objective of the Labour Relations Act in South Africa?
To promote fair labour practices and encourage collective bargaining
What is a key factor that attracts more workers besides higher wages?
Job security and working conditions
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 purpose of collective bargaining agreements?
To negotiate wages, hours, and other terms of employment
What is the name of the act that sets minimum employment conditions and promotes workplace safety?
Basic Conditions of Employment Act
What is the term for unemployment that occurs when individuals switch jobs or enter the workforce?
Frictional unemployment
What is a significant characteristic of unemployment in South Africa?
Lack of skills among the workforce
What is the purpose of the Labour Courts in South Africa?
To adjudicate issues related to employment and enforce labour laws
What is the term for the calculation of the unemployment rate?
Number of unemployed individuals divided by the total EAP, multiplied by 100
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
What is the primary function of a market?
To facilitate the interaction between buyers and sellers
What is the main difference between consumer markets and factor markets?
Consumer markets deal with finished products, while factor markets deal with raw materials
What happens when the quantity demanded equals the quantity supplied in a market?
The market is in a state of equilibrium
What is the primary characteristic of imperfect markets?
The presence of informational asymmetry
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
What is the primary role of prices in a market economy?
To allocate resources efficiently
What is the term for the transfer of goods or services from sellers to buyers at agreed prices?
Exchange mechanism
What is the main difference between perfect markets and imperfect markets?
The presence or absence of barriers to entry
What is the primary consequence of uneven income distribution?
Social and economic inequalities
What is the primary goal of government intervention in markets?
To correct market failures and promote equitable distribution of resources
What is the primary factor influencing the supply of labour in South Africa?
Wages offered
What is the primary consequence of high inflation rates?
Purchasing power erosion
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
What is the primary consequence of inefficiencies in resource allocation?
Suboptimal position on the PPC
What is the primary goal of regulating monopolies?
To prevent monopolistic practices and promote competition
What is the primary consequence of underemployment in South Africa?
Reduced productivity and economic growth
What is the primary purpose of income redistribution policies?
To reduce income disparities
What is the primary goal of government policies in addressing market failures?
To move the economy towards the PPC
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
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
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
What is the effect of an outward shift in the Production Possibility Curve?
Increased economic growth and efficiency
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
What is the main challenge for governments when it comes to public sector interventions?
Balancing interventions with the need for economic efficiency and growth
What is the effect of a leftward shift in the Production Possibility Curve?
Reduced economic growth and efficiency
What is the primary goal of state production in strategic sectors?
To maintain influence in vital sectors like energy and transportation
What is the primary purpose of privatization?
To reduce public sector burdens and increase efficiency
What assumption underlies the Production Possibility Curve?
Fixed resources and technology
What is the primary function of markets in resource allocation?
To allocate resources based on consumer preferences
What is the result of market forces adjusting supply and demand conditions?
Adjustments to new equilibria
What is the primary reason for public sector intervention in the economy?
All of the above
What is the purpose of indirect taxes?
To raise revenue
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
What is the purpose of public goods?
To provide essential services to the public
What is the effect of market equilibrium on the market price?
The market price is stable
What is the primary function of government spending in the public sector?
To fund public services
What is the purpose of subsidies to consumers?
To make essential goods more affordable
What is the primary goal of market dynamics and external influences?
To understand how prices are set and resources are allocated
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
Which of the following is a cause of unemployment in South Africa?
Mechanisation and technological advancements
What is a social problem associated with high unemployment rates?
Increased substance abuse
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 characteristic of economically marginalised groups?
They have had lesser economic opportunities
What is the primary focus of the Reconstruction and Development Programme (RDP)?
To democratize the state and economy, and to provide basic needs
What is the primary goal of education and training initiatives in South Africa?
To equip the youth with necessary skills to address unemployment
What is a consequence of high unemployment rates in South Africa?
Increased poverty rates
What is the primary goal of promoting local production and supporting small and medium enterprises (SMMEs)?
To support local businesses and job creation
What is the primary approach to addressing unemployment in South Africa?
A multifaceted approach including education reform, skills development, and targeted social policies
What is the main goal of the Tirisano Campaign in South Africa?
To promote effective schooling, professional teaching, and broader educational access
Which policy aims to correct historical imbalances in business ownership and management positions?
Increased Black Ownership
What is the purpose of the Mineral and Energy Control policy?
To regulate mining activities and ensure benefits accrue to all
What is the primary goal of the Labour Relations Act?
To balance employer and employee needs and promote fair labor practices
What is the primary purpose of the Khula Enterprise Finance initiative?
To provide financial assistance to small businesses
What is the main goal of the Black Economic Empowerment (BEE) initiative?
To facilitate participation in the economy by historically marginalized groups
What is the primary goal of the AsgiSA strategy?
To accelerate growth and reduce unemployment
What is the main objective of social safety nets, such as pensions and disability allowances?
To mitigate extreme poverty among the most vulnerable populations
What is the primary objective of the Labour Relations Act?
To encourage collective bargaining and fair labour practices
What is the main difference between frictional unemployment and cyclical unemployment?
Cyclical unemployment is associated with the economic cycles
What is the role of the Commission for Conciliation, Mediation, and Arbitration (CCMA)?
To resolve labour disputes through mediation and arbitration
What is the primary purpose of collective bargaining agreements?
To negotiate wages and working conditions across various sectors
What is the main reason for the lack of skills among the South African population?
Historical educational disparities
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
What is the primary objective of the Labour Relations Act in terms of self-government?
To allow workers to form and join unions
What is the main characteristic of structural unemployment?
It results from industrial reorganization and skill mismatches
What is the purpose of the Basic Conditions of Employment Act?
To set minimum employment conditions and promote workplace safety
What is the primary purpose of international labour conventions?
To dictate standards on issues ranging from child labour to discrimination and hours of work
What is the primary function of a market?
To facilitate the exchange of goods and services
What is a key characteristic of imperfect markets?
One or more conditions of perfect markets are not met
What is the term for the worth of a good or service in terms of what it can be exchanged for?
Value
What occurs when the quantity demanded equals the quantity supplied in a market?
Market equilibrium
What is the term for the satisfaction a consumer derives from a good or service?
Utility
What type of market deals with the exchange of finished products?
Consumer market
What is the primary role of prices in a market economy?
To allocate resources efficiently
What is the term for the exchange mechanism in a market?
The transfer of goods or services from sellers to buyers at agreed prices
What is the primary consequence of uneven income distribution?
Social and economic inequalities
What is the primary goal of government intervention in markets?
To correct inefficiencies and promote equitable distribution of resources
What is the primary effect of high inflation rates?
Erosion of purchasing power
What is the primary goal of regulating monopolies?
To prevent monopolistic practices and promote competition
What is the primary consequence of inefficiencies in resource allocation?
Suboptimal position on the PPC
What is the primary factor influencing the demand for labour in South Africa?
All of the above
What is the primary goal of income redistribution policies?
To reduce income disparities
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
What is the primary consequence of underemployment in South Africa?
Reduced productivity and economic growth potential
What is the primary goal of government intervention in the labour market?
To create new job opportunities and enhance worker productivity
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
What is one of the effects of high unemployment rates?
Direct correlation with high poverty rates, impacting millions
What is the main objective of the Public Works Programs?
To create jobs and develop skills
What is the focus of JIPSA?
Acquiring skills urgently needed in the market
What is one of the causes of unemployment?
The growth rate of the population surpassing that of job creation
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
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
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
What is the focus of the Government Interventions for economically marginalised groups?
Skills development initiatives, affirmative action, and BBBEE policies
What is a consequence of Mechanisation and Technological Advancements?
Redundancy of many traditional jobs
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
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
What is the main reason why the state engages in the production of goods and services?
To provide public goods and services
What is the effect of an outward shift in the Production Possibility Curve?
An increase in the production of both goods
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
What is the primary aim of the Labour Relations Act in South Africa?
To promote fair labour practices and encourage collective bargaining
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
What type of unemployment occurs when individuals switch jobs or enter the workforce?
Frictional unemployment
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
What is the primary role of the Commission for Conciliation, Mediation, and Arbitration (CCMA)?
To resolve labour disputes through mediation and arbitration
What is the effect of a leftward shift in the Production Possibility Curve?
A reduction in resources or technological setbacks
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
What is the primary goal of basic income grants?
To provide a minimum income to all citizens
What is the shape of the Production Possibility Curve that suggests increasing opportunity costs?
Concave curve
What is the formula used to calculate the unemployment rate?
Number of unemployed individuals divided by the total EAP, multiplied by 100
What is a significant factor contributing to high unemployment rates among young people, especially those aged 16 to 24?
Lack of skills
What is the primary goal of collective bargaining agreements?
To set wages and working conditions across various sectors
What is the primary objective of the Labour Relations Act in promoting fair labour practices?
To balance the interests of workers and employers
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
What is the primary factor influencing the demand for labour in South Africa?
Other factors like working conditions and job security
What is the primary goal of the Tirisano Campaign?
To achieve effective schooling and broader educational access
What is the main objective of the Land Reform policy?
To redistribute land or provide compensation to those dispossessed during apartheid
What is the main purpose of the Employment Equity Act?
To foster a more inclusive and fair work environment
What is the primary goal of the Khula Enterprise Finance initiative?
To provide financial assistance to small businesses
What is the primary outcome of market equilibrium?
Quantity demanded equals quantity supplied
What is the main objective of the Black Economic Empowerment (BEE) initiative?
To facilitate participation in the economy by historically marginalized groups
What is the primary function of markets in allocating resources?
Determining what goods and services are produced and consumed
What is the primary goal of the AsgiSA strategy?
To accelerate growth and reduce unemployment
What is the primary reason for government intervention in markets?
To address market failures and promote social welfare
What is the main objective of social grants?
To mitigate extreme poverty among the most vulnerable populations
What is the primary goal of the Labour Relations Act?
To balance employer and employee needs and promote fair labor practices
What is the primary purpose of subsidies in the public sector?
To support industries crucial for economic stability
What is the effect of a maximum price (price ceiling) set too low?
Shortage of goods and black markets
What is the primary characteristic of public goods?
Non-excludable and non-rivalrous
What is the primary purpose of government spending in the public sector?
To fund public services
What is the primary effect of market forces on the economy?
To naturally adjust supply and demand to maintain balance and efficiency
What is the primary purpose of indirect taxes in the public sector?
To discourage consumption and raise revenue
What is the primary outcome of market dynamics and external influences?
Adjustments to new equilibria as required by economic shifts
What is the primary function of a market?
To facilitate the exchange of goods and services
Which of the following is a characteristic of imperfect markets?
One or more conditions of perfect markets are not met
What is the relationship between the quantity demanded and the price of a good or service?
Inverse relationship
What is the primary function of prices in a market economy?
To allocate resources efficiently
What is the difference between consumer markets and factor markets?
Consumer markets deal with finished products, while factor markets deal with resources
What is the primary characteristic of a market?
Sellers and buyers
What is the relationship between the quantity supplied and the price of a good or service?
Direct relationship
What determines the price of goods and services in a market?
The interaction of supply and demand
What is the primary outcome when the quantity demanded equals the quantity supplied in a market?
A stable market price is achieved
How do markets allocate resources?
By determining what goods and services are produced and consumed based on collective consumer preferences
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
What is the primary reason for government intervention in markets?
To address market failures and promote social welfare
What is the primary purpose of subsidies in the public sector?
To support industries crucial for economic stability
What is the primary purpose of price controls in the public sector?
To ensure fair pricing and economic equity
What is the primary characteristic of public goods?
They are non-excludable and non-rivalrous
What is the primary purpose of taxation in the public sector?
To fund public services
What is the primary goal of government intervention in markets?
To address market failures and promote social welfare
What is the primary purpose of regulation in the public sector?
To regulate economic activity and protect the environment
What is the primary goal of government intervention in markets?
To correct inefficiencies and promote equitable distribution of resources
What is a consequence of inefficient resource allocation?
The economy operates at a point inside the PPC curve
What is the primary factor influencing the supply of labour in South Africa?
Wages offered
What is the purpose of regulating monopolies?
To promote competition
What is the effect of high inflation rates?
Erosion of purchasing power
What is the primary goal of indifference curves?
To understand consumer preferences and the impact of changes in income or prices
What is the primary goal of government policies aimed at addressing income disparities?
To reduce income disparities
What is the primary consequence of underemployment in South Africa?
Underutilization of skills and reduced economic growth potential
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
What is the primary goal of environmental regulations?
To prevent businesses from causing irreversible environmental damage
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
What is the primary objective of minimum price levels in an economy?
To ensure producers receive a fair price
What is the term for the number of unemployed individuals divided by the total Economically Active Population, multiplied by 100?
Unemployment rate
Which of the following is a characteristic of a Production Possibility Curve?
It represents the maximum potential output of two goods or services
What type of unemployment occurs when individuals switch jobs or enter the workforce?
Frictional unemployment
What is the effect of an improvement in technology on the Production Possibility Curve?
It shifts the curve to the right
What is the primary purpose of social safety nets?
To support individuals who are unable to participate fully in the economy
What is the primary characteristic of South Africa's unemployment?
Lack of skills
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
What is the purpose of the Commission for Conciliation, Mediation, and Arbitration?
To resolve labour disputes through mediation and arbitration
What is the primary purpose of privatization?
To reduce public sector burdens
What is the purpose of collective bargaining agreements?
To negotiate wages, hours, and other terms of employment
What is the shape of the Production Possibility Curve that suggests increasing opportunity costs?
Concave
What is the role of labour courts in South Africa?
To adjudicate issues related to employment
What is a consequence of high unemployment rates?
Social unrest
What is the primary purpose of the Production Possibility Curve?
To illustrate the concept of opportunity cost
What is the primary goal of welfare policies?
To support individuals who are unable to participate fully in the economy
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
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
What is the effect of a leftward shift in the Production Possibility Curve?
It indicates a reduction in resources or technological setbacks
What is the primary goal of the Tirisano Campaign?
To target effective schooling, professional teaching, and broader educational access
What is the main objective of the Land Reform policy?
To redistribute land or provide compensation to those dispossessed during apartheid
What is the primary goal of the Black Economic Empowerment (BEE) initiative?
To facilitate participation in the economy by historically marginalized groups
What is the primary goal of the Labour Relations Act?
To balance employer and employee needs and promote fair labor practices
What is the primary purpose of the Khula Enterprise Finance initiative?
To provide financial assistance to small businesses
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
What is the primary goal of the Employment Equity Act?
To foster a more inclusive and fair work environment
What is the primary goal of the AsgiSA strategy?
To accelerate growth and reduce unemployment
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
What is a consequence of high unemployment rates?
Poverty and social problems
What is the primary goal of GEAR and ASGI-SA policies?
Reducing poverty and unemployment
What is the focus of Public Works Programs?
Creating jobs and developing skills
What is the purpose of the Unemployment Insurance Fund (UIF)?
Providing temporary financial assistance to qualified individuals who have lost their jobs
What is a characteristic of economically marginalised groups?
Higher risks of unemployment
What is the primary goal of government interventions in the economy?
All of the above
What is the focus of the Reconstruction and Development Programme (RDP)?
Meeting basic needs, nation building, and democratization
What is the primary goal of education and training initiatives?
Equipping the youth with necessary skills
What is a consequence of the apartheid era's policies?
Profound disparities in education and skill distribution
What is the primary function of a market?
To facilitate the exchange of goods and services
What is a characteristic of imperfect markets?
One or more conditions of perfect markets are not met
What determines the value of a good or service?
What it can be exchanged for
What is the role of prices in a market economy?
To signal the scarcity or abundance of goods and services
What type of market deals with the exchange of resources necessary for production?
Factor market
What is the relationship between the quantity demanded and the price of a good?
Inverse
What is the term for the transfer of goods or services from sellers to buyers at agreed prices?
Exchange mechanism
What type of market is characterized by a large number of buyers and sellers, no barriers to entry, and full information availability?
Perfect market
What is the primary function of markets in an economy?
To allocate resources based on collective consumer preferences
What is the effect of an external shock on the market?
It causes prices to adjust to a new equilibrium
What is the primary reason for public sector intervention in the economy?
To address market failures and promote social welfare
What is the difference between direct and indirect taxes?
Direct taxes are levied on income, while indirect taxes are levied on goods and services
What is the purpose of price controls in the public sector?
To regulate prices and prevent exploitation
What is the effect of a maximum price (price ceiling)?
It results in a shortage of goods
What is the purpose of state production in the public sector?
To provide merit goods and public goods
What is the primary goal of government intervention in markets?
To address market failures and promote social welfare
What is the effect of government spending on the economy?
It results in an increase in economic activity
What is the primary purpose of subsidies in the public sector?
To support industries crucial for economic stability
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
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
What is the primary reason why the state engages in the production of goods and services?
To maintain strategic control in vital sectors
What is the effect of an outward shift in the Production Possibility Curve?
Economic growth and increased efficiency
What is the main challenge for governments when it comes to public sector interventions?
Balancing interventions with the need for economic efficiency and growth
What is the primary purpose of indifference curves?
To provide a graphical representation of consumer preferences and satisfaction
What is the shape of the Production Possibility Curve that suggests decreasing opportunity costs?
Convex
What is the effect of a leftward shift in the Production Possibility Curve?
Economic contraction and decreased efficiency
What assumption underlies the Production Possibility Curve?
Fixed resources and technology
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
What is the primary reason for market failures?
Inefficient allocation of resources
What is the purpose of environmental regulations?
To prevent businesses from causing environmental harm
What is the effect of inefficiencies in resource allocation?
The economy operates inside the PPC curve
What is the main factor influencing the supply of labour in South Africa?
All of the above
What is the primary goal of government intervention in markets?
To correct inefficiencies and promote equitable resource allocation
What is the consequence of high inflation rates?
Erosion of purchasing power and destabilization of the economy
What is the purpose of income redistribution policies?
To reduce income disparities
What is the primary factor influencing the demand for labour in South Africa?
All of the above
What is the consequence of underemployment in South Africa?
Reduced productivity and economic growth potential
What is the primary purpose of the PPC in economics?
To illustrate the trade-offs and opportunity costs of resource allocation
What is the primary goal of the Tirisano Campaign?
To promote effective schooling, professional teaching, and broader educational access
What is the purpose of the Employment Equity Act?
To foster a more inclusive and fair work environment
What is the primary goal of the Land Reform policy?
To redistribute land or provide compensation to those dispossessed during apartheid
What is the purpose of the Khula Enterprise Finance initiative?
To provide financial assistance to small businesses
What is the primary goal of the Black Economic Empowerment (BEE) initiative?
To facilitate participation in the economy by historically marginalized groups
What is the primary goal of the Labour Relations Act?
To balance employer and employee needs and promote fair labor practices
What is the primary goal of the AsgiSA strategy?
To accelerate growth and reduce unemployment
What is the purpose of social safety nets, such as pensions and disability allowances?
To mitigate extreme poverty among the most vulnerable populations
What is the primary objective of the Labour Relations Act?
To promote collective bargaining and fair labour practices
Which of the following is a characteristic specific to South Africa's labour market?
Lack of skills
What is the role of the Commission for Conciliation, Mediation, and Arbitration (CCMA)?
To resolve labour disputes through mediation and arbitration
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
What is the relationship between higher wages and the labour market?
Higher wages attract more workers
What is the purpose of collective bargaining agreements?
To set wages and working conditions across various sectors
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
What is the primary objective of the Labour Relations Act in promoting fair labour practices?
To protect workers' rights and job security
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
What is the purpose of international labour conventions?
To dictate standards on issues ranging from child labour to discrimination and hours of work
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
What is the primary consequence of high unemployment rates in South Africa?
Poverty and its impact on millions of people
What is the primary goal of the Public Works Programs in addressing unemployment?
To create jobs and develop skills through infrastructure projects
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 the primary focus of the JIPSA initiative in addressing unemployment?
To acquire skills urgently needed in the market
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
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
What is the primary consequence of the growth of the population surpassing that of job creation?
High unemployment rates and social problems
What is the primary goal of the Government's economic interventions in addressing unemployment?
To address the disparities created by the apartheid regime
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
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