340 Questions
What is a characteristic of a perfectly competitive market?
There is complete mobility of factors of production
What is the primary objective of a firm in a perfect market?
To maximize profit
What is the role of individual businesses in perfectly competitive markets?
They are price takers
What does the industry comprise of in a perfect market?
Multiple businesses producing identical products
What is the focus of businesses in perfectly competitive markets?
Total revenue, average revenue, and marginal revenue
What is the significance of perfect information in a perfectly competitive market?
It ensures that no single entity can wield undue influence over the market
What is the impact of freedom of entry and exit on a perfectly competitive market?
It ensures that no single entity can wield undue influence over the market
What is the result of a perfectly competitive market?
Maximum efficiency and equitable resource distribution
What is the primary condition for a firm to achieve profit maximization in perfect competition?
MR equals MC
Which of the following market structures is characterized by a single firm dominating the entire market for a product or service?
Monopoly
What is the primary goal of governments when designing competition policies in imperfect markets?
To enhance economic efficiency
What is a characteristic of a monopoly in terms of revenue and cost curves?
The marginal revenue curve lies below the demand curve
What is the primary characteristic of an oligopoly?
Interdependence of firms
Which of the following market structures is characterized by many firms selling differentiated products?
Monopolistic competition
What is the primary feature of oligopolies in terms of market structure?
A few firms dominate the market
What is the outcome of imperfect markets in terms of resource allocation?
Resources are allocated least efficiently
What is the primary reason why monopolies can generate sustained profits in the long term?
Barriers to entry
What is the primary difference between monopolistic competition and perfect competition?
The level of product differentiation
Which of the following market structures is characterized by the absence of barriers to entry?
Perfect competition
What is the primary consequence of monopolistic competition on economic efficiency?
Redundant expenditures on advertising and marketing
What is the shape of the demand curve for an oligopolist?
Kinked
Which of the following market structures is characterized by the presence of strategic behaviors like price fixing and collusive practices?
Oligopoly
What is the primary reason for the existence of barriers to entry in monopolies?
To maintain a monopoly's exclusive control
What is the primary reason why imperfect markets result in allocative and productive inefficiencies?
Market power and control over prices
What is the primary goal of firms in imperfect markets?
To maximize profits
What is the outcome of long-term dynamics in perfect markets?
Firms make normal profits but no economic profits
Which of the following is a characteristic of a kinked demand curve?
Pricing strategy that discourages competitive price changes
What is the primary goal of government intervention in imperfect markets through regulations and antitrust laws?
To enhance competitive outcomes and protect consumer interests
What is the primary goal of government intervention in markets with monopolies and oligopolies?
To break down barriers to entry and increase market competition
What is the term for the situation where the production or consumption of goods and services imposes costs or benefits on others not reflected in market prices?
Externalities
What type of goods are typically provided by the government due to underproduction in private markets?
Public goods
What is the consequence of imperfect competition in markets?
Reduced output and higher prices
What is the term for the situation where buyers and sellers do not have equal knowledge, leading to choices that do not maximize welfare?
Asymmetric information
What is the type of inefficiency that occurs when resources are not allocated according to consumer preferences?
Allocative inefficiency
What is the goal of government intervention in response to market failures?
To correct market failures and improve economic efficiency
What is the consequence of imperfect distribution of income and wealth in a market economy?
Inefficient allocation of resources and unequal consumption
What is the term for goods that are underprovided by the market due to underestimating their benefits?
Merit goods
What is the consequence of negative externalities in a market economy?
Environmental degradation
What is the primary goal of cost-benefit analysis in public policy?
To ensure resources are used efficiently and enhance social welfare
Which type of inflation measures the change in price for a basket of goods and services consumed by households?
Consumer Inflation
What is the primary cause of cost-push inflation?
Increase in the cost of production
What is the consequence of inflation on debtors and creditors?
Debtors benefit at the expense of creditors
What is the primary goal of inflation targeting by the South African Reserve Bank?
To maintain inflation within a manageable range of 3% to 6%
What is the primary effect of hyperinflation?
High and accelerating inflation
What is the effect of inflation on savings?
Inflation reduces the real value of saved money
What is the primary tool used to control money supply in monetary policy?
Open market operations
What is the primary goal of regulating measures to combat inflation?
To limit inflation in essential goods
What is the primary characteristic of stagflation?
High inflation and stagnant economic growth
What is the percentage of South Africa's workforce directly employed by the tourism sector?
7%
What is the primary purpose of Ecotourism?
Promoting conservation while exploring natural areas
What is a significant environmental challenge posed by tourism?
Resource depletion
What is the primary goal of promoting Indigenous Knowledge Systems (IKS) in cultural tourism?
To preserve cultural heritage and provide unique experiences
What is the main objective of Strategic Spatial Distribution in tourism?
To develop under-explored areas
What is the primary consequence of unchecked tourism on the environment?
Ecosystem stress
What is a recommended policy to sustainably grow the tourism sector?
Enhancing both domestic and international marketing strategies
What is the primary focus of Environmental Sustainability?
Preserving the health and resources of the planet
What is the significance of Investment in Infrastructure Development for tourism?
To accommodate an increasing number of tourists
What is the primary reason for promoting Education and Training in the tourism sector?
To provide high-quality services to tourists
What is the primary goal of environmental sustainability?
To support economic activity indefinitely while maintaining environmental health
Which of the following is NOT a key concept related to environmental sustainability?
Economic Growth
What is the main cause of climate change, according to the content?
Greenhouse gas emissions
Which international agreement aims to limit global warming to well below 2 degrees Celsius above pre-industrial levels?
Paris Agreement (COP 21)
What is the primary objective of the Sustainable Development Goals (SDGs)?
To end poverty and protect the planet by 2030
What is the primary role of conservation in environmental sustainability?
To protect ecosystems and biodiversity from human activities
What is the main challenge in implementing environmental sustainability measures in South Africa?
Inadequate funding and enforcement
Which of the following is NOT a market-based approach to environmental sustainability?
Regulatory approaches
What is the primary goal of preservation in environmental sustainability?
To protect ecosystems, biodiversity, and environments from human activities
What is the primary objective of the Johannesburg Summit (WSSD 2002)?
To further the goals established in the Rio de Janeiro Summit
What is a key feature that distinguishes imperfect markets from perfect competition?
Firms have some degree of market power
What is the main difference between a monopoly and an oligopoly?
The number of firms in the market
What is the result of allocative inefficiency in imperfect markets?
Resources are not allocated according to consumer preferences
What is the primary goal of government intervention in imperfect markets?
To enhance competitive outcomes and protect consumer interests
What is the outcome of monopolistic competition in the long run?
Firms earn normal profits
What is a key characteristic of oligopolistic markets?
Firms are interdependent in their decision-making
What is the primary reason why monopolies can generate sustained profits in the long term?
Barriers to entry that prevent new entrants
What is the primary consequence of imperfect markets on economic welfare?
Welfare losses occur due to allocative inefficiency
What is the primary difference between monopolistic competition and perfect competition?
The degree of product differentiation
What is the primary consequence of strategic behaviors in oligopolistic markets?
Firms engage in collusive practices and price fixing
In a perfectly competitive market, what happens when the marginal revenue exceeds the marginal cost?
The firm increases production to enhance profits
What is the primary difference between a monopoly and a monopolistically competitive market?
The presence of barriers to entry
What is the shape of the demand curve for a monopolist?
Downward-sloping
What is a key distinction between an industry and an individual business in a perfectly competitive market?
The industry comprises multiple businesses producing identical products, while the individual business has influence over the market price.
What is the primary goal of government intervention in imperfect markets through regulations and antitrust laws?
To prevent monopolies and promote fair competition
What is the primary objective of a firm in a perfectly competitive market, in relation to its output levels?
To maximize profit by controlling its output levels.
What is the consequence of a lack of differentiation between goods sold by different sellers in a perfectly competitive market?
It ensures that no single entity can wield undue influence over the market.
What is the outcome of imperfect markets in terms of resource allocation?
Resources are allocated inefficiently
What is the primary characteristic of an oligopoly?
A few firms dominate the market
What is the primary characteristic of a perfectly competitive market that ensures maximum efficiency and equitable resource distribution?
The existence of numerous buyers and sellers, making it impossible for single entities to influence market prices.
What is the primary role of individual businesses in perfectly competitive markets, in terms of market price?
They are price takers, having no influence over the market price.
What is the primary reason why imperfect markets result in allocative and productive inefficiencies?
The lack of perfect competition
What is the primary concept that businesses in perfectly competitive markets focus on, in terms of revenue?
Total revenue, average revenue, and marginal revenue.
What is the primary goal of firms in imperfect markets?
To maximize profits
What is the primary reason why individual businesses in perfectly competitive markets cannot wield undue influence over the market?
The existence of numerous buyers and sellers, making it impossible for single entities to influence market prices.
What is the primary consequence of monopolistic competition on economic efficiency?
It leads to allocative and productive inefficiencies
What is the primary consequence of a perfectly competitive market, in terms of resource allocation?
It ensures maximum efficiency and equitable resource distribution.
What is the primary feature of imperfect markets in terms of revenue and cost curves?
Firms face different revenue and cost curves based on market structure
What is the primary reason why governments intervene in markets with monopolies and oligopolies?
To increase market competition and reduce inefficiencies
Which of the following is a characteristic of imperfect markets?
The presence of externalities and public goods
What is the primary consequence of market failures?
Net social welfare loss and allocative inefficiency
What is the primary goal of government intervention in response to market failures?
To increase market competition and reduce inefficiencies
What is the term for the situation where the production or consumption of goods and services imposes costs or benefits on others not reflected in market prices?
Externalities
What is the primary consequence of asymmetric information in markets?
Choices that do not maximize welfare
What is the primary consequence of imperfect distribution of income and wealth in a market economy?
Skewed production towards high-end goods and services
What is the primary goal of state intervention in response to market failures?
To increase market competition and reduce inefficiencies
What is the primary consequence of negative externalities in a market economy?
Increased environmental degradation
What is the primary goal of government intervention in response to market failures in terms of economic efficiency?
To increase allocative efficiency
What is the primary objective of cost-benefit analysis in public policy?
To evaluate the social costs and benefits of interventions aimed at correcting market failures
What is the primary characteristic of core inflation?
It strips out volatile items like food and energy
What is the primary consequence of high inflation on the economy?
It reduces the real value of saved money
What is the primary goal of monetary policy in combating inflation?
To manage interest rates to control money supply and demand
What is the primary characteristic of stagflation?
High inflation with stagnant economic growth and high unemployment
What is the primary cause of demand-pull inflation?
Aggregate demand outpacing aggregate supply
What is the primary goal of inflation targeting by the South African Reserve Bank?
To maintain inflation within a manageable range of 3% to 6%
What is the primary consequence of hyperinflation?
It makes the domestic currency nearly worthless
What is the primary tool used to influence broad money supply in monetary policy?
Open market operations
What is the primary goal of regulating measures to combat inflation?
To direct control maximum prices to limit inflation
What is the main advantage of promoting indigenous knowledge systems (IKS) in cultural tourism?
To preserve cultural heritage and provide unique experiences to tourists
What is the primary challenge posed by tourism to the environment?
All of the above
What is the recommended policy to sustainably grow the tourism sector in South Africa?
Investing in marketing, infrastructure, education, and environmental conservation
What is the primary benefit of tourism to the economy of South Africa?
It increases GDP and creates jobs
What is the main purpose of implementing environmental management policies in tourism?
To preserve natural sites and ensure sustainable tourism practices
What is the impact of tourism on rural areas?
It stimulates local economies and reduces poverty
What is the primary goal of strategic spatial distribution in tourism?
To evenly spread tourism benefits and involve local communities
What is the significance of business tourism in South Africa?
It contributes to GDP and creates jobs
What is the primary challenge posed by tourism to the economy of South Africa?
It is vulnerable to global economic downturns
What is the recommended strategy to enhance the cultural tourism experience in South Africa?
Promoting indigenous knowledge systems and local traditions
What is the primary goal of environmental sustainability?
To maintain the long-term health and efficiency of both the environment and its ecosystems
What is the primary difference between conservation and preservation?
Conservation focuses on managing human use of the biosphere, while preservation focuses on protecting ecosystems and biodiversity
What is the primary goal of market mechanisms in ensuring environmental sustainability?
To internalize environmental costs through taxation and tradeable permits
What is the primary focus of the Rio de Janeiro Summit (UNCED 1992)?
To build a global partnership for sustainable development and ensure the implementation of sustainable development practices
What is the primary goal of the Paris Agreement (COP 21)?
To strengthen the global response to the threat of climate change and keep global temperature rise well below 2 degrees Celsius
What is the primary challenge in implementing effective environmental sustainability measures in South Africa?
All of the above
What is the primary consequence of air, water, and soil pollution on the environment?
It leads to the depletion of natural resources and the degradation of ecosystems
What is the primary goal of education and awareness programs in environmental sustainability?
To increase public understanding of environmental impacts and sustainable practices
What is the primary characteristic of the Johannesburg Summit (WSSD 2002)?
It focused on the implementation of sustainable development practices globally
What is the primary goal of the Sustainable Development Goals (SDGs)?
To end poverty, protect the planet, and ensure that all people enjoy peace and prosperity by 2030
What is the primary consequence of imperfect competition in markets?
Allocative and productive inefficiencies
What is the primary characteristic of an oligopoly?
Interdependence among firms
What is the primary reason why monopolies can maintain prices above marginal cost?
High barriers to entry
What is the outcome of long-term dynamics in monopolistic competition?
Resource allocation similar to perfect competition
What is the primary goal of government intervention in imperfect markets?
Enhancing competitive outcomes
What is the primary characteristic of monopolistic competition?
Differentiated products and non-price competition
What is the primary consequence of imperfect markets on resource allocation?
Underutilization of resources
In a perfectly competitive market, what happens when the marginal revenue exceeds the marginal cost?
The firm should increase production to enhance profits.
What is the primary feature of an oligopoly's demand curve?
Kinked demand curve
What is the primary goal of firms in imperfect markets?
Profit maximization
What is the primary difference between monopolistic competition and perfect competition?
The level of product differentiation.
What is the shape of the demand curve for a monopolist?
Downward-sloping.
What is the primary consequence of monopsony power in imperfect markets?
Lower wages and exploitation of workers
What is the outcome of long-term dynamics in imperfect markets?
Monopolies and oligopolies dominate the market.
Why do governments aim to emulate the conditions of perfect competition?
To enhance economic efficiency and prevent monopolies.
What is the primary consequence of imperfect markets in terms of resource allocation?
Resources are allocated inefficiently, leading to market failures.
What is the primary goal of government intervention in imperfect markets?
To enhance economic efficiency and fairness.
What is the primary characteristic of an oligopoly?
A few firms dominate the market, with interdependence and non-price competition.
What is the primary reason why monopolies can generate sustained profits in the long term?
The presence of barriers to entry, preventing new entrants.
What is the primary consequence of imperfect competition on economic efficiency?
It leads to allocative and productive inefficiencies.
What is the primary implication of homogeneous products in a perfectly competitive market?
It ensures that no single entity can wield undue influence over the market.
What is the primary role of the government in a perfectly competitive market?
There is no role for the government in a perfectly competitive market.
What is the primary objective of individual businesses in a perfectly competitive market?
To maximize profits.
What is the significance of the concept of marginal revenue in a perfectly competitive market?
It is a measure of the additional revenue generated by selling one more unit.
What is the primary characteristic of the demand curve faced by an individual business in a perfectly competitive market?
It is perfectly elastic.
What is the primary consequence of freedom of entry and exit in a perfectly competitive market?
It ensures that only the most efficient firms survive.
What is the primary significance of the concept of total cost in a perfectly competitive market?
It is a measure of the total expenditure incurred by the firm.
What is the primary implication of the lack of differentiation between goods sold by different sellers in a perfectly competitive market?
It ensures that no single entity can wield undue influence over the market.
What is the primary reason for government intervention in markets with monopolies and oligopolies?
To increase market competition and reduce inefficiencies
What is the consequence of imperfect distribution of income and wealth in a market economy?
Inefficient allocation of resources
What is the term for the situation where resources are not allocated according to consumer preferences?
Allocative inefficiency
What is the primary consequence of market failures on the economy?
Net social welfare loss
What is the primary goal of government intervention in response to market failures?
To correct market failures and increase social welfare
What is the consequence of negative externalities in a market economy?
Environmental degradation
What is the primary reason for the underproduction of public goods in private markets?
Firms cannot easily charge users
What is the term for goods that are underprovided by the market due to underestimating their benefits?
Merit goods
What is the consequence of imperfect competition in markets?
Higher prices and reduced output
What is the primary consequence of asymmetric information in markets?
Choices that do not maximize welfare
What is the primary purpose of cost-benefit analysis in public policy?
To evaluate the social costs and benefits of interventions
What is the primary consequence of demand-pull inflation?
Reduced purchasing power
What is the primary goal of monetary policy in combating inflation?
To control money supply and demand
What is the primary characteristic of stagflation?
High inflation and high unemployment
What is the primary consequence of hyperinflation?
Economic collapse and social unrest
What is the primary goal of fiscal policy in combating inflation?
To manage aggregate demand
What is the primary consequence of inflation on debtors and creditors?
Debtors benefit at the expense of creditors
What is the primary goal of the South African Reserve Bank's inflation targeting?
To maintain inflation within a manageable range of 3% to 6%
What is the primary characteristic of core inflation?
It strips out volatile items like food and energy
What is the primary consequence of inflation on savings?
The real value of saved money is reduced
What is the primary goal of environmental sustainability?
To ensure the long-term health and efficiency of the environment and its ecosystems
What is the primary focus of conservation?
To manage human use of the biosphere for the greatest sustainable benefit
What is the primary consequence of air, water, and soil pollution?
Adverse changes to the natural environment
What is the primary goal of market mechanisms in ensuring environmental sustainability?
To internalize environmental costs through taxes and tradeable permits
What is the primary focus of the Johannesburg Summit (WSSD 2002)?
To enhance the implementation of sustainable development practices globally
What is the primary goal of the Paris Agreement (COP 21)?
To strengthen the global response to climate change
What is the primary consequence of the lack of effective enforcement of environmental policies in South Africa?
Challenges in achieving the desired balance between economic development and environmental protection
What is the primary role of education and awareness in ensuring environmental sustainability?
To increase public understanding of environmental impacts and sustainable practices
What is the primary goal of assigning property rights in environmental sustainability?
To help protect and manage environmental resources effectively
What is the primary consequence of climate change on global ecosystems?
Affects weather patterns, sea levels, and climate systems globally
What is the main reason why tourism can lead to resource depletion in South Africa?
Over-reliance on natural resources for tourism activities
What is the primary aim of promoting Indigenous Knowledge Systems (IKS) in cultural tourism?
To preserve cultural heritage and provide unique experiences to tourists
What is the direct impact of tourism on the national GDP of South Africa?
Significant contribution to the national GDP through consumption and supply chain stimulation
What is the primary goal of implementing strict regulations to preserve natural sites in South Africa?
To reduce the environmental impact of tourism activities
What is the primary reason why tourism can contribute to poverty reduction in South Africa?
It promotes resource distribution in rural areas
What is the primary focus of the policy recommendation to enhance marketing and promotion strategies for tourism in South Africa?
To showcase South Africa's diverse attractions to both domestic and international markets
What is the primary consequence of high tourist activity on the environment in South Africa?
Resource depletion and ecosystem stress
What is the primary goal of developing specialized training programs for the workforce in the tourism sector?
To provide high-quality services to tourists and improve the overall tourism experience
What is the primary benefit of strategic spatial distribution in the tourism sector?
It ensures that tourism benefits are evenly spread and remote areas are developed
What is the primary aim of environmental sustainability in the context of tourism development?
To preserve natural resources and reduce environmental impacts
What is the primary advantage of perfect markets in terms of resource allocation?
Resources are allocated in a way that maximizes economic efficiency and equity
Which of the following revenue metrics is most relevant to a firm's pricing strategy in a perfect market?
Marginal revenue
What is the primary reason for the existence of long-term economic profits in monopolies?
The ability of the monopolist to act as a price setter
In which type of market structure do firms face a downward-sloping demand curve?
Monopoly
What is the primary distinction between an industry and an individual business in a perfect market?
An industry is comprised of multiple businesses, while an individual business is a single entity
What is the primary consequence of imperfect competition on resource allocation?
Inefficient allocation of resources
What is the primary consequence of a lack of differentiation between goods sold by different sellers in a perfect market?
No single entity can wield undue influence over the market
What is the primary reason why individual businesses in perfectly competitive markets are price takers?
Because they have no influence over the market price and can only control their output levels
In which type of market structure do firms engage in non-price competition?
Monopolistic competition
What is the primary goal of government intervention in imperfect markets?
To enhance economic efficiency
What is the primary objective of a firm in a perfect market in terms of profit?
To maximize profits
What is the primary characteristic of imperfect markets?
Lack of perfect competition
What is the primary consequence of complete mobility of factors of production in a perfect market?
Resources are allocated in a way that maximizes economic efficiency and equity
What is the primary difference between oligopolies and monopolistic competition?
Number of firms
What is the primary characteristic of a perfectly competitive market that ensures maximum efficiency and equitable resource distribution?
Homogeneous products and freedom of entry and exit
What is the primary consequence of imperfect competition on economic efficiency?
Decreased economic efficiency
What is the primary reason for the existence of monopolies and oligopolies in a market?
To create barriers to entry and maintain market power
What is the primary reason for the existence of barriers to entry in monopolies?
To prevent new entrants
What is the primary consequence of imperfect markets in terms of resource allocation?
Allocative and productive inefficiencies
What is the primary goal of firms in imperfect markets?
To maximize profits
Which market structure is characterized by a single firm dominating the entire market for a product or service?
Monopoly
What is the primary goal of government intervention in imperfect markets through regulations and antitrust laws?
To enhance competitive outcomes and protect consumer interests
What is the primary characteristic of an oligopoly in terms of market structure?
A few firms selling homogeneous or differentiated products
What is the primary consequence of monopolistic competition on economic welfare?
Allocative and productive inefficiencies
What is the primary reason why imperfect markets result in higher prices and lower output compared to perfect competition?
Due to the presence of barriers to entry
What is the primary characteristic of monopolistic competition in terms of market structure?
Many firms selling differentiated products
What is the primary difference between monopolistic competition and perfect competition?
The level of product differentiation
What is the primary goal of firms in imperfect markets?
To maximize profits
What is the primary reason for government intervention in markets with monopolies and oligopolies?
To break down barriers to entry and increase market competition
Which of the following is a characteristic of public goods?
They are non-excludable and non-rivalrous
What is the primary consequence of imperfect distribution of income and wealth in a market economy?
It prevents market economies from being efficient
What is the term for the situation where the production or consumption of goods and services imposes costs or benefits on others not reflected in market prices?
Externality
What is the primary consequence of asymmetric information in markets?
It leads to choices that do not maximize welfare
What is the primary goal of government intervention in response to market failures?
To correct market failures and increase efficiency
What is the type of inefficiency that occurs when resources are not allocated according to consumer preferences?
Allocative inefficiency
What is the primary consequence of negative externalities in a market economy?
Environmental degradation
What is the primary goal of government intervention in markets with imperfect competition?
To break down barriers to entry and increase market competition
What is the term for goods that are underprovided by the market due to underestimating their benefits?
Merit goods
What is the primary goal of cost-benefit analysis in public policy?
To ensure efficient resource allocation and social welfare
Which type of inflation measures the change in price for a basket of goods and services consumed by households?
Consumer Inflation
What is the primary cause of cost-push inflation?
Increase in production costs
What is the primary goal of inflation targeting by the South African Reserve Bank?
To maintain inflation within a manageable range
What is the primary effect of hyperinflation?
Accelerating inflation exceeding 50% per month
What is the primary consequence of inflation on debtors and creditors?
Benefiting debtors at the expense of creditors
What is the primary tool used to control money supply in monetary policy?
Open market operations
What is the primary characteristic of stagflation?
High inflation and stagnant economic growth
What is the primary goal of regulating measures to combat inflation?
To limit price increases
What is the primary effect of inflation on savings?
Reduced savings
What percentage of South Africa's workforce is directly employed by the tourism sector?
7%
What is the primary goal of policies recommended to sustainably grow the tourism sector in South Africa?
To preserve natural sites and minimize environmental impacts
What type of tourism involves engaging with local arts, museums, and cultural sites?
Cultural Tourism
What is a challenge posed by high tourist activity in South Africa?
Resource depletion and waste production
What is the significance of Indigenous Knowledge Systems (IKS) in enhancing the cultural tourism experience in South Africa?
It provides tourists with insights into local traditions and lifestyles
What is the primary purpose of strategic spatial distribution in tourism development in South Africa?
To divert tourist flows from over-visited sites
What is the primary reason why tourism is a significant sector in South Africa?
It boosts the GDP and plays a crucial role in employment creation and poverty alleviation
What is the significance of education and training in the tourism sector in South Africa?
It is essential for developing specialized training programs
What is the result of high tourist activity on natural habitats and ecosystems?
It threatens biodiversity
What is the primary objective of government intervention in response to environmental sustainability challenges?
To implement strict regulations to preserve natural sites
What is the primary goal of environmental sustainability?
To ensure the long-term health and efficiency of both the environment and its ecosystems
What is the main difference between conservation and preservation?
Conservation focuses on managing human use of the biosphere, while preservation focuses on protecting ecosystems
Which of the following is NOT a measure to ensure environmental sustainability?
Promoting the use of fossil fuels as a primary source of energy
What is the primary goal of the Paris Agreement?
To strengthen the global response to the threat of climate change
What is the primary challenge facing the effectiveness of the South African government's interventions in environmental sustainability?
Challenges in enforcement, funding, and achieving the desired balance between economic development and environmental protection
What is the primary purpose of the Rio de Janeiro Summit?
To establish a global framework for sustainable development
What is the primary consequence of pollution on the environment?
It causes a decrease in air and water quality
What is the primary goal of the Sustainable Development Goals (SDGs)?
To end poverty, protect the planet, and ensure that all people enjoy peace and prosperity by 2030
What is the primary characteristic of environmental sustainability?
It ensures the long-term health and efficiency of both the environment and its ecosystems
What is the primary goal of the Johannesburg Summit?
To further the goals established in the Rio de Janeiro Summit
Which market structure is characterized by a single firm dominating the entire market for a product or service with no close substitutes, allowing the firm to influence market prices significantly?
Monopoly
What is the primary consequence of imperfect competition in markets?
Allocative and productive inefficiencies
What is the primary feature of oligopolies?
Interdependence of firms
What is the primary goal of government intervention in imperfect markets through regulations and antitrust laws?
Enhance competitive outcomes
What is the primary characteristic of monopolistic competition?
Many firms selling differentiated products
What is the primary consequence of monopolies on resource allocation?
Productive inefficiency
What is the primary reason why oligopolies adopt a kinked demand curve?
To discourage competitive price changes
What is the primary difference between monopolistic competition and perfect competition?
Product differentiation
What is the primary reason why imperfect markets result in allocative and productive inefficiencies?
Monopolistic power
What is the primary goal of understanding the dynamics of imperfect markets?
To understand the consequences of market power on economic welfare
In a perfectly competitive market, what is the implication of the marginal revenue (MR) exceeding the marginal cost (MC)?
The firm should increase production to enhance profits.
What is the primary reason why imperfect markets lead to market inefficiencies?
Lack of perfect competition.
In a monopolistic competition market structure, what is the primary goal of firms' non-price competition strategies?
To differentiate their products.
What is the primary reason why individual businesses in perfectly competitive markets have no influence over market prices?
Because they are price takers
What is the implication of a kinked demand curve in oligopolistic markets?
Firms engage in non-price competition.
What is the significance of the distinction between an industry and an individual business in a perfect market?
It affects the total output of the industry
What is the primary objective of a firm in a perfect market in terms of revenue metrics?
To maximize marginal revenue
What is the primary reason why governments aim to emulate the conditions of perfect competition?
To enhance economic efficiency.
In imperfect markets, what is the primary reason why firms may not achieve long-term economic profits?
Ease of market entry.
What is the primary characteristic of a perfectly competitive market that ensures maximum efficiency and equitable resource distribution?
Homogeneous products and perfect information
What is the primary role of cost concepts in decision-making for businesses in perfectly competitive markets?
To maximize profit and minimize losses
What is the primary consequence of imperfect competition on economic efficiency?
Allocative and productive inefficiencies.
Which market structure is characterized by the presence of a single firm dominating the entire market?
Monopoly.
What is the outcome of a perfectly competitive market in terms of resource allocation?
Equitable resource distribution
What is the primary objective of government intervention in imperfect markets?
To promote perfect competition.
What is the primary reason why individual businesses in perfectly competitive markets are unable to influence market prices?
Because they are price takers
What is the primary consequence of imperfect markets on resource allocation?
Inefficient allocation of resources.
What is the primary purpose of revenue and cost concepts in perfectly competitive markets?
To maximize profit and minimize losses
What is the primary objective of cost-benefit analysis in public policy?
To evaluate the social costs and benefits of interventions
What type of inflation strips out volatile items like food and energy, providing a clearer view of inflationary trends?
Core Inflation
What is the primary consequence of inflation on the real value of debt?
It decreases the real value of debt
What is the primary goal of monetary policy in controlling inflation?
To manage money supply and demand
What is the primary characteristic of stagflation?
High inflation and stagnant economic growth
What is the primary consequence of hyperinflation?
It reduces the purchasing power of money
What is the primary goal of fiscal policy in controlling inflation?
To reduce government spending
What is the primary consequence of inflation on the real value of saved money?
It decreases the real value of saved money
What is the primary cause of demand-pull inflation?
Increase in aggregate demand
What is the primary goal of the South African Reserve Bank's inflation targeting?
To maintain inflation within a manageable range
What is the primary reason for government intervention in markets with monopolies and oligopolies?
To promote economic efficiency and reduce market failures
What is the consequence of imperfect distribution of income and wealth in a market economy?
Skewed production towards high-end goods and services, while basic needs of the poorer sections remain unmet
What is the primary goal of government intervention in response to market failures?
To correct market failures and promote economic efficiency
What is the consequence of negative externalities in a market economy?
Environmental degradation and decreased social welfare
What is the primary cause of market failures?
Imperfect competition and asymmetric information
What is the term for goods that are underprovided by the market due to underestimating their benefits?
Merit goods
What is the consequence of imperfect competition in markets?
Higher prices and reduced output
What is the term for the situation where buyers and sellers do not have equal knowledge, leading to choices that do not maximize welfare?
Asymmetric information
What is the type of inefficiency that occurs when resources are not allocated according to consumer preferences?
Allocative inefficiency
What is the primary goal of government intervention in response to market failures, in terms of public goods?
To increase the production of public goods and promote social welfare
What is the primary benefit of tourism to the national economy in South Africa?
Significantly contributing to the national GDP
What is the role of strategic spatial distribution in tourism development?
All of the above
What is the primary challenge posed by tourism to the environment?
All of the above
What is the primary purpose of policy recommendations for sustainable tourism development?
All of the above
What is the significance of indigenous knowledge systems in cultural tourism?
All of the above
What is the primary contribution of tourism to employment in South Africa?
Directly employing 7% of the workforce
What is the primary goal of education and training in the tourism sector?
Providing high-quality services to tourists
What is the significance of environmental sustainability in the context of tourism development?
Preserving natural resources for future generations
What is the primary challenge posed by the environmental impact of tourism to the local economy?
Resource depletion
What is the primary goal of implementing strict regulations to preserve natural sites in tourism development?
Minimizing environmental impacts
What is the primary objective of environmental sustainability?
To ensure the long-term health and efficiency of the environment and its ecosystems
What is the primary difference between conservation and preservation?
Conservation focuses on managing human use of the biosphere, while preservation focuses on protecting ecosystems
What is the primary purpose of market mechanisms in environmental sustainability?
To internalize environmental costs and promote sustainable practices
What is the primary goal of the Rio de Janeiro Summit (UNCED 1992)?
To establish a global partnership for sustainable development
What is the primary goal of the Paris Agreement (COP 21)?
To strengthen the global response to climate change and limit global warming to well below 2 degrees Celsius
What is the primary challenge faced by the South African government in implementing environmental sustainability measures?
Balancing economic development with environmental protection
What is the primary purpose of assigning property rights in environmental sustainability?
To help protect and manage environmental resources effectively
What is the primary consequence of pollution and habitat destruction on the environment?
Loss of biodiversity and ecosystem disruption
What is the primary goal of education and awareness in environmental sustainability?
To increase public understanding of environmental impacts and sustainable practices
What is the primary outcome of the Johannesburg Summit (WSSD 2002)?
A focus on furthering the goals established in Rio
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
