Nov P2 Hard
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Questions and Answers

What is a characteristic of a perfectly competitive market?

  • Products are differentiated among sellers
  • The government regulates the market
  • There is complete mobility of factors of production (correct)
  • A single entity has significant influence over the market

    • What is the primary objective of a firm in a perfect market?

  • To increase market share
  • To maximize profit (correct)
  • To reduce output levels
  • To minimize losses

    • What is the role of individual businesses in perfectly competitive markets?

  • They are price makers
  • They are price takers (correct)
  • They regulate the industry
  • They influence market prices

    • What does the industry comprise of in a perfect market?

    <p>Multiple businesses producing identical products</p> Signup and view all the answers

    What is the focus of businesses in perfectly competitive markets?

    <p>Total revenue, average revenue, and marginal revenue</p> Signup and view all the answers

    What is the significance of perfect information in a perfectly competitive market?

    <p>It ensures that no single entity can wield undue influence over the market</p> Signup and view all the answers

    What is the impact of freedom of entry and exit on a perfectly competitive market?

    <p>It ensures that no single entity can wield undue influence over the market</p> Signup and view all the answers

    What is the result of a perfectly competitive market?

    <p>Maximum efficiency and equitable resource distribution</p> Signup and view all the answers

    What is the primary condition for a firm to achieve profit maximization in perfect competition?

    <p>MR equals MC</p> Signup and view all the answers

    Which of the following market structures is characterized by a single firm dominating the entire market for a product or service?

    <p>Monopoly</p> Signup and view all the answers

    What is the primary goal of governments when designing competition policies in imperfect markets?

    <p>To enhance economic efficiency</p> Signup and view all the answers

    What is a characteristic of a monopoly in terms of revenue and cost curves?

    <p>The marginal revenue curve lies below the demand curve</p> Signup and view all the answers

    What is the primary characteristic of an oligopoly?

    <p>Interdependence of firms</p> Signup and view all the answers

    Which of the following market structures is characterized by many firms selling differentiated products?

    <p>Monopolistic competition</p> Signup and view all the answers

    What is the primary feature of oligopolies in terms of market structure?

    <p>A few firms dominate the market</p> Signup and view all the answers

    What is the outcome of imperfect markets in terms of resource allocation?

    <p>Resources are allocated least efficiently</p> Signup and view all the answers

    What is the primary reason why monopolies can generate sustained profits in the long term?

    <p>Barriers to entry</p> Signup and view all the answers

    What is the primary difference between monopolistic competition and perfect competition?

    <p>The level of product differentiation</p> Signup and view all the answers

    Which of the following market structures is characterized by the absence of barriers to entry?

    <p>Perfect competition</p> Signup and view all the answers

    What is the primary consequence of monopolistic competition on economic efficiency?

    <p>Redundant expenditures on advertising and marketing</p> Signup and view all the answers

    What is the shape of the demand curve for an oligopolist?

    <p>Kinked</p> Signup and view all the answers

    Which of the following market structures is characterized by the presence of strategic behaviors like price fixing and collusive practices?

    <p>Oligopoly</p> Signup and view all the answers

    What is the primary reason for the existence of barriers to entry in monopolies?

    <p>To maintain a monopoly's exclusive control</p> Signup and view all the answers

    What is the primary reason why imperfect markets result in allocative and productive inefficiencies?

    <p>Market power and control over prices</p> Signup and view all the answers

    What is the primary goal of firms in imperfect markets?

    <p>To maximize profits</p> Signup and view all the answers

    What is the outcome of long-term dynamics in perfect markets?

    <p>Firms make normal profits but no economic profits</p> Signup and view all the answers

    Which of the following is a characteristic of a kinked demand curve?

    <p>Pricing strategy that discourages competitive price changes</p> Signup and view all the answers

    What is the primary goal of government intervention in imperfect markets through regulations and antitrust laws?

    <p>To enhance competitive outcomes and protect consumer interests</p> Signup and view all the answers

    What is the primary goal of government intervention in markets with monopolies and oligopolies?

    <p>To break down barriers to entry and increase market competition</p> Signup and view all the answers

    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?

    <p>Externalities</p> Signup and view all the answers

    What type of goods are typically provided by the government due to underproduction in private markets?

    <p>Public goods</p> Signup and view all the answers

    What is the consequence of imperfect competition in markets?

    <p>Reduced output and higher prices</p> Signup and view all the answers

    What is the term for the situation where buyers and sellers do not have equal knowledge, leading to choices that do not maximize welfare?

    <p>Asymmetric information</p> Signup and view all the answers

    What is the type of inefficiency that occurs when resources are not allocated according to consumer preferences?

    <p>Allocative inefficiency</p> Signup and view all the answers

    What is the goal of government intervention in response to market failures?

    <p>To correct market failures and improve economic efficiency</p> Signup and view all the answers

    What is the consequence of imperfect distribution of income and wealth in a market economy?

    <p>Inefficient allocation of resources and unequal consumption</p> Signup and view all the answers

    What is the term for goods that are underprovided by the market due to underestimating their benefits?

    <p>Merit goods</p> Signup and view all the answers

    What is the consequence of negative externalities in a market economy?

    <p>Environmental degradation</p> Signup and view all the answers

    What is the primary goal of cost-benefit analysis in public policy?

    <p>To ensure resources are used efficiently and enhance social welfare</p> Signup and view all the answers

    Which type of inflation measures the change in price for a basket of goods and services consumed by households?

    <p>Consumer Inflation</p> Signup and view all the answers

    What is the primary cause of cost-push inflation?

    <p>Increase in the cost of production</p> Signup and view all the answers

    What is the consequence of inflation on debtors and creditors?

    <p>Debtors benefit at the expense of creditors</p> Signup and view all the answers

    What is the primary goal of inflation targeting by the South African Reserve Bank?

    <p>To maintain inflation within a manageable range of 3% to 6%</p> Signup and view all the answers

    What is the primary effect of hyperinflation?

    <p>High and accelerating inflation</p> Signup and view all the answers

    What is the effect of inflation on savings?

    <p>Inflation reduces the real value of saved money</p> Signup and view all the answers

    What is the primary tool used to control money supply in monetary policy?

    <p>Open market operations</p> Signup and view all the answers

    What is the primary goal of regulating measures to combat inflation?

    <p>To limit inflation in essential goods</p> Signup and view all the answers

    What is the primary characteristic of stagflation?

    <p>High inflation and stagnant economic growth</p> Signup and view all the answers

    What is the percentage of South Africa's workforce directly employed by the tourism sector?

    <p>7%</p> Signup and view all the answers

    What is the primary purpose of Ecotourism?

    <p>Promoting conservation while exploring natural areas</p> Signup and view all the answers

    What is a significant environmental challenge posed by tourism?

    <p>Resource depletion</p> Signup and view all the answers

    What is the primary goal of promoting Indigenous Knowledge Systems (IKS) in cultural tourism?

    <p>To preserve cultural heritage and provide unique experiences</p> Signup and view all the answers

    What is the main objective of Strategic Spatial Distribution in tourism?

    <p>To develop under-explored areas</p> Signup and view all the answers

    What is the primary consequence of unchecked tourism on the environment?

    <p>Ecosystem stress</p> Signup and view all the answers

    What is a recommended policy to sustainably grow the tourism sector?

    <p>Enhancing both domestic and international marketing strategies</p> Signup and view all the answers

    What is the primary focus of Environmental Sustainability?

    <p>Preserving the health and resources of the planet</p> Signup and view all the answers

    What is the significance of Investment in Infrastructure Development for tourism?

    <p>To accommodate an increasing number of tourists</p> Signup and view all the answers

    What is the primary reason for promoting Education and Training in the tourism sector?

    <p>To provide high-quality services to tourists</p> Signup and view all the answers

    What is the primary goal of environmental sustainability?

    <p>To support economic activity indefinitely while maintaining environmental health</p> Signup and view all the answers

    Which of the following is NOT a key concept related to environmental sustainability?

    <p>Economic Growth</p> Signup and view all the answers

    What is the main cause of climate change, according to the content?

    <p>Greenhouse gas emissions</p> Signup and view all the answers

    Which international agreement aims to limit global warming to well below 2 degrees Celsius above pre-industrial levels?

    <p>Paris Agreement (COP 21)</p> Signup and view all the answers

    What is the primary objective of the Sustainable Development Goals (SDGs)?

    <p>To end poverty and protect the planet by 2030</p> Signup and view all the answers

    What is the primary role of conservation in environmental sustainability?

    <p>To protect ecosystems and biodiversity from human activities</p> Signup and view all the answers

    What is the main challenge in implementing environmental sustainability measures in South Africa?

    <p>Inadequate funding and enforcement</p> Signup and view all the answers

    Which of the following is NOT a market-based approach to environmental sustainability?

    <p>Regulatory approaches</p> Signup and view all the answers

    What is the primary goal of preservation in environmental sustainability?

    <p>To protect ecosystems, biodiversity, and environments from human activities</p> Signup and view all the answers

    What is the primary objective of the Johannesburg Summit (WSSD 2002)?

    <p>To further the goals established in the Rio de Janeiro Summit</p> Signup and view all the answers

    What is a key feature that distinguishes imperfect markets from perfect competition?

    <p>Firms have some degree of market power</p> Signup and view all the answers

    What is the main difference between a monopoly and an oligopoly?

    <p>The number of firms in the market</p> Signup and view all the answers

    What is the result of allocative inefficiency in imperfect markets?

    <p>Resources are not allocated according to consumer preferences</p> Signup and view all the answers

    What is the primary goal of government intervention in imperfect markets?

    <p>To enhance competitive outcomes and protect consumer interests</p> Signup and view all the answers

    What is the outcome of monopolistic competition in the long run?

    <p>Firms earn normal profits</p> Signup and view all the answers

    What is a key characteristic of oligopolistic markets?

    <p>Firms are interdependent in their decision-making</p> Signup and view all the answers

    What is the primary reason why monopolies can generate sustained profits in the long term?

    <p>Barriers to entry that prevent new entrants</p> Signup and view all the answers

    What is the primary consequence of imperfect markets on economic welfare?

    <p>Welfare losses occur due to allocative inefficiency</p> Signup and view all the answers

    What is the primary difference between monopolistic competition and perfect competition?

    <p>The degree of product differentiation</p> Signup and view all the answers

    What is the primary consequence of strategic behaviors in oligopolistic markets?

    <p>Firms engage in collusive practices and price fixing</p> Signup and view all the answers

    In a perfectly competitive market, what happens when the marginal revenue exceeds the marginal cost?

    <p>The firm increases production to enhance profits</p> Signup and view all the answers

    What is the primary difference between a monopoly and a monopolistically competitive market?

    <p>The presence of barriers to entry</p> Signup and view all the answers

    What is the shape of the demand curve for a monopolist?

    <p>Downward-sloping</p> Signup and view all the answers

    What is a key distinction between an industry and an individual business in a perfectly competitive market?

    <p>The industry comprises multiple businesses producing identical products, while the individual business has influence over the market price.</p> Signup and view all the answers

    What is the primary goal of government intervention in imperfect markets through regulations and antitrust laws?

    <p>To prevent monopolies and promote fair competition</p> Signup and view all the answers

    What is the primary objective of a firm in a perfectly competitive market, in relation to its output levels?

    <p>To maximize profit by controlling its output levels.</p> Signup and view all the answers

    What is the consequence of a lack of differentiation between goods sold by different sellers in a perfectly competitive market?

    <p>It ensures that no single entity can wield undue influence over the market.</p> Signup and view all the answers

    What is the outcome of imperfect markets in terms of resource allocation?

    <p>Resources are allocated inefficiently</p> Signup and view all the answers

    What is the primary characteristic of an oligopoly?

    <p>A few firms dominate the market</p> Signup and view all the answers

    What is the primary characteristic of a perfectly competitive market that ensures maximum efficiency and equitable resource distribution?

    <p>The existence of numerous buyers and sellers, making it impossible for single entities to influence market prices.</p> Signup and view all the answers

    What is the primary role of individual businesses in perfectly competitive markets, in terms of market price?

    <p>They are price takers, having no influence over the market price.</p> Signup and view all the answers

    What is the primary reason why imperfect markets result in allocative and productive inefficiencies?

    <p>The lack of perfect competition</p> Signup and view all the answers

    What is the primary concept that businesses in perfectly competitive markets focus on, in terms of revenue?

    <p>Total revenue, average revenue, and marginal revenue.</p> Signup and view all the answers

    What is the primary goal of firms in imperfect markets?

    <p>To maximize profits</p> Signup and view all the answers

    What is the primary reason why individual businesses in perfectly competitive markets cannot wield undue influence over the market?

    <p>The existence of numerous buyers and sellers, making it impossible for single entities to influence market prices.</p> Signup and view all the answers

    What is the primary consequence of monopolistic competition on economic efficiency?

    <p>It leads to allocative and productive inefficiencies</p> Signup and view all the answers

    What is the primary consequence of a perfectly competitive market, in terms of resource allocation?

    <p>It ensures maximum efficiency and equitable resource distribution.</p> Signup and view all the answers

    What is the primary feature of imperfect markets in terms of revenue and cost curves?

    <p>Firms face different revenue and cost curves based on market structure</p> Signup and view all the answers

    What is the primary reason why governments intervene in markets with monopolies and oligopolies?

    <p>To increase market competition and reduce inefficiencies</p> Signup and view all the answers

    Which of the following is a characteristic of imperfect markets?

    <p>The presence of externalities and public goods</p> Signup and view all the answers

    What is the primary consequence of market failures?

    <p>Net social welfare loss and allocative inefficiency</p> Signup and view all the answers

    What is the primary goal of government intervention in response to market failures?

    <p>To increase market competition and reduce inefficiencies</p> Signup and view all the answers

    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?

    <p>Externalities</p> Signup and view all the answers

    What is the primary consequence of asymmetric information in markets?

    <p>Choices that do not maximize welfare</p> Signup and view all the answers

    What is the primary consequence of imperfect distribution of income and wealth in a market economy?

    <p>Skewed production towards high-end goods and services</p> Signup and view all the answers

    What is the primary goal of state intervention in response to market failures?

    <p>To increase market competition and reduce inefficiencies</p> Signup and view all the answers

    What is the primary consequence of negative externalities in a market economy?

    <p>Increased environmental degradation</p> Signup and view all the answers

    What is the primary goal of government intervention in response to market failures in terms of economic efficiency?

    <p>To increase allocative efficiency</p> Signup and view all the answers

    What is the primary objective of cost-benefit analysis in public policy?

    <p>To evaluate the social costs and benefits of interventions aimed at correcting market failures</p> Signup and view all the answers

    What is the primary characteristic of core inflation?

    <p>It strips out volatile items like food and energy</p> Signup and view all the answers

    What is the primary consequence of high inflation on the economy?

    <p>It reduces the real value of saved money</p> Signup and view all the answers

    What is the primary goal of monetary policy in combating inflation?

    <p>To manage interest rates to control money supply and demand</p> Signup and view all the answers

    What is the primary characteristic of stagflation?

    <p>High inflation with stagnant economic growth and high unemployment</p> Signup and view all the answers

    What is the primary cause of demand-pull inflation?

    <p>Aggregate demand outpacing aggregate supply</p> Signup and view all the answers

    What is the primary goal of inflation targeting by the South African Reserve Bank?

    <p>To maintain inflation within a manageable range of 3% to 6%</p> Signup and view all the answers

    What is the primary consequence of hyperinflation?

    <p>It makes the domestic currency nearly worthless</p> Signup and view all the answers

    What is the primary tool used to influence broad money supply in monetary policy?

    <p>Open market operations</p> Signup and view all the answers

    What is the primary goal of regulating measures to combat inflation?

    <p>To direct control maximum prices to limit inflation</p> Signup and view all the answers

    What is the main advantage of promoting indigenous knowledge systems (IKS) in cultural tourism?

    <p>To preserve cultural heritage and provide unique experiences to tourists</p> Signup and view all the answers

    What is the primary challenge posed by tourism to the environment?

    <p>All of the above</p> Signup and view all the answers

    What is the recommended policy to sustainably grow the tourism sector in South Africa?

    <p>Investing in marketing, infrastructure, education, and environmental conservation</p> Signup and view all the answers

    What is the primary benefit of tourism to the economy of South Africa?

    <p>It increases GDP and creates jobs</p> Signup and view all the answers

    What is the main purpose of implementing environmental management policies in tourism?

    <p>To preserve natural sites and ensure sustainable tourism practices</p> Signup and view all the answers

    What is the impact of tourism on rural areas?

    <p>It stimulates local economies and reduces poverty</p> Signup and view all the answers

    What is the primary goal of strategic spatial distribution in tourism?

    <p>To evenly spread tourism benefits and involve local communities</p> Signup and view all the answers

    What is the significance of business tourism in South Africa?

    <p>It contributes to GDP and creates jobs</p> Signup and view all the answers

    What is the primary challenge posed by tourism to the economy of South Africa?

    <p>It is vulnerable to global economic downturns</p> Signup and view all the answers

    What is the recommended strategy to enhance the cultural tourism experience in South Africa?

    <p>Promoting indigenous knowledge systems and local traditions</p> Signup and view all the answers

    What is the primary goal of environmental sustainability?

    <p>To maintain the long-term health and efficiency of both the environment and its ecosystems</p> Signup and view all the answers

    What is the primary difference between conservation and preservation?

    <p>Conservation focuses on managing human use of the biosphere, while preservation focuses on protecting ecosystems and biodiversity</p> Signup and view all the answers

    What is the primary goal of market mechanisms in ensuring environmental sustainability?

    <p>To internalize environmental costs through taxation and tradeable permits</p> Signup and view all the answers

    What is the primary focus of the Rio de Janeiro Summit (UNCED 1992)?

    <p>To build a global partnership for sustainable development and ensure the implementation of sustainable development practices</p> Signup and view all the answers

    What is the primary goal of the Paris Agreement (COP 21)?

    <p>To strengthen the global response to the threat of climate change and keep global temperature rise well below 2 degrees Celsius</p> Signup and view all the answers

    What is the primary challenge in implementing effective environmental sustainability measures in South Africa?

    <p>All of the above</p> Signup and view all the answers

    What is the primary consequence of air, water, and soil pollution on the environment?

    <p>It leads to the depletion of natural resources and the degradation of ecosystems</p> Signup and view all the answers

    What is the primary goal of education and awareness programs in environmental sustainability?

    <p>To increase public understanding of environmental impacts and sustainable practices</p> Signup and view all the answers

    What is the primary characteristic of the Johannesburg Summit (WSSD 2002)?

    <p>It focused on the implementation of sustainable development practices globally</p> Signup and view all the answers

    What is the primary goal of the Sustainable Development Goals (SDGs)?

    <p>To end poverty, protect the planet, and ensure that all people enjoy peace and prosperity by 2030</p> Signup and view all the answers

    What is the primary consequence of imperfect competition in markets?

    <p>Allocative and productive inefficiencies</p> Signup and view all the answers

    What is the primary characteristic of an oligopoly?

    <p>Interdependence among firms</p> Signup and view all the answers

    What is the primary reason why monopolies can maintain prices above marginal cost?

    <p>High barriers to entry</p> Signup and view all the answers

    What is the outcome of long-term dynamics in monopolistic competition?

    <p>Resource allocation similar to perfect competition</p> Signup and view all the answers

    What is the primary goal of government intervention in imperfect markets?

    <p>Enhancing competitive outcomes</p> Signup and view all the answers

    What is the primary characteristic of monopolistic competition?

    <p>Differentiated products and non-price competition</p> Signup and view all the answers

    What is the primary consequence of imperfect markets on resource allocation?

    <p>Underutilization of resources</p> Signup and view all the answers

    In a perfectly competitive market, what happens when the marginal revenue exceeds the marginal cost?

    <p>The firm should increase production to enhance profits.</p> Signup and view all the answers

    What is the primary feature of an oligopoly's demand curve?

    <p>Kinked demand curve</p> Signup and view all the answers

    What is the primary goal of firms in imperfect markets?

    <p>Profit maximization</p> Signup and view all the answers

    What is the primary difference between monopolistic competition and perfect competition?

    <p>The level of product differentiation.</p> Signup and view all the answers

    What is the shape of the demand curve for a monopolist?

    <p>Downward-sloping.</p> Signup and view all the answers

    What is the primary consequence of monopsony power in imperfect markets?

    <p>Lower wages and exploitation of workers</p> Signup and view all the answers

    What is the outcome of long-term dynamics in imperfect markets?

    <p>Monopolies and oligopolies dominate the market.</p> Signup and view all the answers

    Why do governments aim to emulate the conditions of perfect competition?

    <p>To enhance economic efficiency and prevent monopolies.</p> Signup and view all the answers

    What is the primary consequence of imperfect markets in terms of resource allocation?

    <p>Resources are allocated inefficiently, leading to market failures.</p> Signup and view all the answers

    What is the primary goal of government intervention in imperfect markets?

    <p>To enhance economic efficiency and fairness.</p> Signup and view all the answers

    What is the primary characteristic of an oligopoly?

    <p>A few firms dominate the market, with interdependence and non-price competition.</p> Signup and view all the answers

    What is the primary reason why monopolies can generate sustained profits in the long term?

    <p>The presence of barriers to entry, preventing new entrants.</p> Signup and view all the answers

    What is the primary consequence of imperfect competition on economic efficiency?

    <p>It leads to allocative and productive inefficiencies.</p> Signup and view all the answers

    What is the primary implication of homogeneous products in a perfectly competitive market?

    <p>It ensures that no single entity can wield undue influence over the market.</p> Signup and view all the answers

    What is the primary role of the government in a perfectly competitive market?

    <p>There is no role for the government in a perfectly competitive market.</p> Signup and view all the answers

    What is the primary objective of individual businesses in a perfectly competitive market?

    <p>To maximize profits.</p> Signup and view all the answers

    What is the significance of the concept of marginal revenue in a perfectly competitive market?

    <p>It is a measure of the additional revenue generated by selling one more unit.</p> Signup and view all the answers

    What is the primary characteristic of the demand curve faced by an individual business in a perfectly competitive market?

    <p>It is perfectly elastic.</p> Signup and view all the answers

    What is the primary consequence of freedom of entry and exit in a perfectly competitive market?

    <p>It ensures that only the most efficient firms survive.</p> Signup and view all the answers

    What is the primary significance of the concept of total cost in a perfectly competitive market?

    <p>It is a measure of the total expenditure incurred by the firm.</p> Signup and view all the answers

    What is the primary implication of the lack of differentiation between goods sold by different sellers in a perfectly competitive market?

    <p>It ensures that no single entity can wield undue influence over the market.</p> Signup and view all the answers

    What is the primary reason for government intervention in markets with monopolies and oligopolies?

    <p>To increase market competition and reduce inefficiencies</p> Signup and view all the answers

    What is the consequence of imperfect distribution of income and wealth in a market economy?

    <p>Inefficient allocation of resources</p> Signup and view all the answers

    What is the term for the situation where resources are not allocated according to consumer preferences?

    <p>Allocative inefficiency</p> Signup and view all the answers

    What is the primary consequence of market failures on the economy?

    <p>Net social welfare loss</p> Signup and view all the answers

    What is the primary goal of government intervention in response to market failures?

    <p>To correct market failures and increase social welfare</p> Signup and view all the answers

    What is the consequence of negative externalities in a market economy?

    <p>Environmental degradation</p> Signup and view all the answers

    What is the primary reason for the underproduction of public goods in private markets?

    <p>Firms cannot easily charge users</p> Signup and view all the answers

    What is the term for goods that are underprovided by the market due to underestimating their benefits?

    <p>Merit goods</p> Signup and view all the answers

    What is the consequence of imperfect competition in markets?

    <p>Higher prices and reduced output</p> Signup and view all the answers

    What is the primary consequence of asymmetric information in markets?

    <p>Choices that do not maximize welfare</p> Signup and view all the answers

    What is the primary purpose of cost-benefit analysis in public policy?

    <p>To evaluate the social costs and benefits of interventions</p> Signup and view all the answers

    What is the primary consequence of demand-pull inflation?

    <p>Reduced purchasing power</p> Signup and view all the answers

    What is the primary goal of monetary policy in combating inflation?

    <p>To control money supply and demand</p> Signup and view all the answers

    What is the primary characteristic of stagflation?

    <p>High inflation and high unemployment</p> Signup and view all the answers

    What is the primary consequence of hyperinflation?

    <p>Economic collapse and social unrest</p> Signup and view all the answers

    What is the primary goal of fiscal policy in combating inflation?

    <p>To manage aggregate demand</p> Signup and view all the answers

    What is the primary consequence of inflation on debtors and creditors?

    <p>Debtors benefit at the expense of creditors</p> Signup and view all the answers

    What is the primary goal of the South African Reserve Bank's inflation targeting?

    <p>To maintain inflation within a manageable range of 3% to 6%</p> Signup and view all the answers

    What is the primary characteristic of core inflation?

    <p>It strips out volatile items like food and energy</p> Signup and view all the answers

    What is the primary consequence of inflation on savings?

    <p>The real value of saved money is reduced</p> Signup and view all the answers

    What is the primary goal of environmental sustainability?

    <p>To ensure the long-term health and efficiency of the environment and its ecosystems</p> Signup and view all the answers

    What is the primary focus of conservation?

    <p>To manage human use of the biosphere for the greatest sustainable benefit</p> Signup and view all the answers

    What is the primary consequence of air, water, and soil pollution?

    <p>Adverse changes to the natural environment</p> Signup and view all the answers

    What is the primary goal of market mechanisms in ensuring environmental sustainability?

    <p>To internalize environmental costs through taxes and tradeable permits</p> Signup and view all the answers

    What is the primary focus of the Johannesburg Summit (WSSD 2002)?

    <p>To enhance the implementation of sustainable development practices globally</p> Signup and view all the answers

    What is the primary goal of the Paris Agreement (COP 21)?

    <p>To strengthen the global response to climate change</p> Signup and view all the answers

    What is the primary consequence of the lack of effective enforcement of environmental policies in South Africa?

    <p>Challenges in achieving the desired balance between economic development and environmental protection</p> Signup and view all the answers

    What is the primary role of education and awareness in ensuring environmental sustainability?

    <p>To increase public understanding of environmental impacts and sustainable practices</p> Signup and view all the answers

    What is the primary goal of assigning property rights in environmental sustainability?

    <p>To help protect and manage environmental resources effectively</p> Signup and view all the answers

    What is the primary consequence of climate change on global ecosystems?

    <p>Affects weather patterns, sea levels, and climate systems globally</p> Signup and view all the answers

    What is the main reason why tourism can lead to resource depletion in South Africa?

    <p>Over-reliance on natural resources for tourism activities</p> Signup and view all the answers

    What is the primary aim of promoting Indigenous Knowledge Systems (IKS) in cultural tourism?

    <p>To preserve cultural heritage and provide unique experiences to tourists</p> Signup and view all the answers

    What is the direct impact of tourism on the national GDP of South Africa?

    <p>Significant contribution to the national GDP through consumption and supply chain stimulation</p> Signup and view all the answers

    What is the primary goal of implementing strict regulations to preserve natural sites in South Africa?

    <p>To reduce the environmental impact of tourism activities</p> Signup and view all the answers

    What is the primary reason why tourism can contribute to poverty reduction in South Africa?

    <p>It promotes resource distribution in rural areas</p> Signup and view all the answers

    What is the primary focus of the policy recommendation to enhance marketing and promotion strategies for tourism in South Africa?

    <p>To showcase South Africa's diverse attractions to both domestic and international markets</p> Signup and view all the answers

    What is the primary consequence of high tourist activity on the environment in South Africa?

    <p>Resource depletion and ecosystem stress</p> Signup and view all the answers

    What is the primary goal of developing specialized training programs for the workforce in the tourism sector?

    <p>To provide high-quality services to tourists and improve the overall tourism experience</p> Signup and view all the answers

    What is the primary benefit of strategic spatial distribution in the tourism sector?

    <p>It ensures that tourism benefits are evenly spread and remote areas are developed</p> Signup and view all the answers

    What is the primary aim of environmental sustainability in the context of tourism development?

    <p>To preserve natural resources and reduce environmental impacts</p> Signup and view all the answers

    What is the primary advantage of perfect markets in terms of resource allocation?

    <p>Resources are allocated in a way that maximizes economic efficiency and equity</p> Signup and view all the answers

    Which of the following revenue metrics is most relevant to a firm's pricing strategy in a perfect market?

    <p>Marginal revenue</p> Signup and view all the answers

    What is the primary reason for the existence of long-term economic profits in monopolies?

    <p>The ability of the monopolist to act as a price setter</p> Signup and view all the answers

    In which type of market structure do firms face a downward-sloping demand curve?

    <p>Monopoly</p> Signup and view all the answers

    What is the primary distinction between an industry and an individual business in a perfect market?

    <p>An industry is comprised of multiple businesses, while an individual business is a single entity</p> Signup and view all the answers

    What is the primary consequence of imperfect competition on resource allocation?

    <p>Inefficient allocation of resources</p> Signup and view all the answers

    What is the primary consequence of a lack of differentiation between goods sold by different sellers in a perfect market?

    <p>No single entity can wield undue influence over the market</p> Signup and view all the answers

    What is the primary reason why individual businesses in perfectly competitive markets are price takers?

    <p>Because they have no influence over the market price and can only control their output levels</p> Signup and view all the answers

    In which type of market structure do firms engage in non-price competition?

    <p>Monopolistic competition</p> Signup and view all the answers

    What is the primary goal of government intervention in imperfect markets?

    <p>To enhance economic efficiency</p> Signup and view all the answers

    What is the primary objective of a firm in a perfect market in terms of profit?

    <p>To maximize profits</p> Signup and view all the answers

    What is the primary characteristic of imperfect markets?

    <p>Lack of perfect competition</p> Signup and view all the answers

    What is the primary consequence of complete mobility of factors of production in a perfect market?

    <p>Resources are allocated in a way that maximizes economic efficiency and equity</p> Signup and view all the answers

    What is the primary difference between oligopolies and monopolistic competition?

    <p>Number of firms</p> Signup and view all the answers

    What is the primary characteristic of a perfectly competitive market that ensures maximum efficiency and equitable resource distribution?

    <p>Homogeneous products and freedom of entry and exit</p> Signup and view all the answers

    What is the primary consequence of imperfect competition on economic efficiency?

    <p>Decreased economic efficiency</p> Signup and view all the answers

    What is the primary reason for the existence of monopolies and oligopolies in a market?

    <p>To create barriers to entry and maintain market power</p> Signup and view all the answers

    What is the primary reason for the existence of barriers to entry in monopolies?

    <p>To prevent new entrants</p> Signup and view all the answers

    What is the primary consequence of imperfect markets in terms of resource allocation?

    <p>Allocative and productive inefficiencies</p> Signup and view all the answers

    What is the primary goal of firms in imperfect markets?

    <p>To maximize profits</p> Signup and view all the answers

    Which market structure is characterized by a single firm dominating the entire market for a product or service?

    <p>Monopoly</p> Signup and view all the answers

    What is the primary goal of government intervention in imperfect markets through regulations and antitrust laws?

    <p>To enhance competitive outcomes and protect consumer interests</p> Signup and view all the answers

    What is the primary characteristic of an oligopoly in terms of market structure?

    <p>A few firms selling homogeneous or differentiated products</p> Signup and view all the answers

    What is the primary consequence of monopolistic competition on economic welfare?

    <p>Allocative and productive inefficiencies</p> Signup and view all the answers

    What is the primary reason why imperfect markets result in higher prices and lower output compared to perfect competition?

    <p>Due to the presence of barriers to entry</p> Signup and view all the answers

    What is the primary characteristic of monopolistic competition in terms of market structure?

    <p>Many firms selling differentiated products</p> Signup and view all the answers

    What is the primary difference between monopolistic competition and perfect competition?

    <p>The level of product differentiation</p> Signup and view all the answers

    What is the primary goal of firms in imperfect markets?

    <p>To maximize profits</p> Signup and view all the answers

    What is the primary reason for government intervention in markets with monopolies and oligopolies?

    <p>To break down barriers to entry and increase market competition</p> Signup and view all the answers

    Which of the following is a characteristic of public goods?

    <p>They are non-excludable and non-rivalrous</p> Signup and view all the answers

    What is the primary consequence of imperfect distribution of income and wealth in a market economy?

    <p>It prevents market economies from being efficient</p> Signup and view all the answers

    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?

    <p>Externality</p> Signup and view all the answers

    What is the primary consequence of asymmetric information in markets?

    <p>It leads to choices that do not maximize welfare</p> Signup and view all the answers

    What is the primary goal of government intervention in response to market failures?

    <p>To correct market failures and increase efficiency</p> Signup and view all the answers

    What is the type of inefficiency that occurs when resources are not allocated according to consumer preferences?

    <p>Allocative inefficiency</p> Signup and view all the answers

    What is the primary consequence of negative externalities in a market economy?

    <p>Environmental degradation</p> Signup and view all the answers

    What is the primary goal of government intervention in markets with imperfect competition?

    <p>To break down barriers to entry and increase market competition</p> Signup and view all the answers

    What is the term for goods that are underprovided by the market due to underestimating their benefits?

    <p>Merit goods</p> Signup and view all the answers

    What is the primary goal of cost-benefit analysis in public policy?

    <p>To ensure efficient resource allocation and social welfare</p> Signup and view all the answers

    Which type of inflation measures the change in price for a basket of goods and services consumed by households?

    <p>Consumer Inflation</p> Signup and view all the answers

    What is the primary cause of cost-push inflation?

    <p>Increase in production costs</p> Signup and view all the answers

    What is the primary goal of inflation targeting by the South African Reserve Bank?

    <p>To maintain inflation within a manageable range</p> Signup and view all the answers

    What is the primary effect of hyperinflation?

    <p>Accelerating inflation exceeding 50% per month</p> Signup and view all the answers

    What is the primary consequence of inflation on debtors and creditors?

    <p>Benefiting debtors at the expense of creditors</p> Signup and view all the answers

    What is the primary tool used to control money supply in monetary policy?

    <p>Open market operations</p> Signup and view all the answers

    What is the primary characteristic of stagflation?

    <p>High inflation and stagnant economic growth</p> Signup and view all the answers

    What is the primary goal of regulating measures to combat inflation?

    <p>To limit price increases</p> Signup and view all the answers

    What is the primary effect of inflation on savings?

    <p>Reduced savings</p> Signup and view all the answers

    What percentage of South Africa's workforce is directly employed by the tourism sector?

    <p>7%</p> Signup and view all the answers

    What is the primary goal of policies recommended to sustainably grow the tourism sector in South Africa?

    <p>To preserve natural sites and minimize environmental impacts</p> Signup and view all the answers

    What type of tourism involves engaging with local arts, museums, and cultural sites?

    <p>Cultural Tourism</p> Signup and view all the answers

    What is a challenge posed by high tourist activity in South Africa?

    <p>Resource depletion and waste production</p> Signup and view all the answers

    What is the significance of Indigenous Knowledge Systems (IKS) in enhancing the cultural tourism experience in South Africa?

    <p>It provides tourists with insights into local traditions and lifestyles</p> Signup and view all the answers

    What is the primary purpose of strategic spatial distribution in tourism development in South Africa?

    <p>To divert tourist flows from over-visited sites</p> Signup and view all the answers

    What is the primary reason why tourism is a significant sector in South Africa?

    <p>It boosts the GDP and plays a crucial role in employment creation and poverty alleviation</p> Signup and view all the answers

    What is the significance of education and training in the tourism sector in South Africa?

    <p>It is essential for developing specialized training programs</p> Signup and view all the answers

    What is the result of high tourist activity on natural habitats and ecosystems?

    <p>It threatens biodiversity</p> Signup and view all the answers

    What is the primary objective of government intervention in response to environmental sustainability challenges?

    <p>To implement strict regulations to preserve natural sites</p> Signup and view all the answers

    What is the primary goal of environmental sustainability?

    <p>To ensure the long-term health and efficiency of both the environment and its ecosystems</p> Signup and view all the answers

    What is the main difference between conservation and preservation?

    <p>Conservation focuses on managing human use of the biosphere, while preservation focuses on protecting ecosystems</p> Signup and view all the answers

    Which of the following is NOT a measure to ensure environmental sustainability?

    <p>Promoting the use of fossil fuels as a primary source of energy</p> Signup and view all the answers

    What is the primary goal of the Paris Agreement?

    <p>To strengthen the global response to the threat of climate change</p> Signup and view all the answers

    What is the primary challenge facing the effectiveness of the South African government's interventions in environmental sustainability?

    <p>Challenges in enforcement, funding, and achieving the desired balance between economic development and environmental protection</p> Signup and view all the answers

    What is the primary purpose of the Rio de Janeiro Summit?

    <p>To establish a global framework for sustainable development</p> Signup and view all the answers

    What is the primary consequence of pollution on the environment?

    <p>It causes a decrease in air and water quality</p> Signup and view all the answers

    What is the primary goal of the Sustainable Development Goals (SDGs)?

    <p>To end poverty, protect the planet, and ensure that all people enjoy peace and prosperity by 2030</p> Signup and view all the answers

    What is the primary characteristic of environmental sustainability?

    <p>It ensures the long-term health and efficiency of both the environment and its ecosystems</p> Signup and view all the answers

    What is the primary goal of the Johannesburg Summit?

    <p>To further the goals established in the Rio de Janeiro Summit</p> Signup and view all the answers

    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?

    <p>Monopoly</p> Signup and view all the answers

    What is the primary consequence of imperfect competition in markets?

    <p>Allocative and productive inefficiencies</p> Signup and view all the answers

    What is the primary feature of oligopolies?

    <p>Interdependence of firms</p> Signup and view all the answers

    What is the primary goal of government intervention in imperfect markets through regulations and antitrust laws?

    <p>Enhance competitive outcomes</p> Signup and view all the answers

    What is the primary characteristic of monopolistic competition?

    <p>Many firms selling differentiated products</p> Signup and view all the answers

    What is the primary consequence of monopolies on resource allocation?

    <p>Productive inefficiency</p> Signup and view all the answers

    What is the primary reason why oligopolies adopt a kinked demand curve?

    <p>To discourage competitive price changes</p> Signup and view all the answers

    What is the primary difference between monopolistic competition and perfect competition?

    <p>Product differentiation</p> Signup and view all the answers

    What is the primary reason why imperfect markets result in allocative and productive inefficiencies?

    <p>Monopolistic power</p> Signup and view all the answers

    What is the primary goal of understanding the dynamics of imperfect markets?

    <p>To understand the consequences of market power on economic welfare</p> Signup and view all the answers

    In a perfectly competitive market, what is the implication of the marginal revenue (MR) exceeding the marginal cost (MC)?

    <p>The firm should increase production to enhance profits.</p> Signup and view all the answers

    What is the primary reason why imperfect markets lead to market inefficiencies?

    <p>Lack of perfect competition.</p> Signup and view all the answers

    In a monopolistic competition market structure, what is the primary goal of firms' non-price competition strategies?

    <p>To differentiate their products.</p> Signup and view all the answers

    What is the primary reason why individual businesses in perfectly competitive markets have no influence over market prices?

    <p>Because they are price takers</p> Signup and view all the answers

    What is the implication of a kinked demand curve in oligopolistic markets?

    <p>Firms engage in non-price competition.</p> Signup and view all the answers

    What is the significance of the distinction between an industry and an individual business in a perfect market?

    <p>It affects the total output of the industry</p> Signup and view all the answers

    What is the primary objective of a firm in a perfect market in terms of revenue metrics?

    <p>To maximize marginal revenue</p> Signup and view all the answers

    What is the primary reason why governments aim to emulate the conditions of perfect competition?

    <p>To enhance economic efficiency.</p> Signup and view all the answers

    In imperfect markets, what is the primary reason why firms may not achieve long-term economic profits?

    <p>Ease of market entry.</p> Signup and view all the answers

    What is the primary characteristic of a perfectly competitive market that ensures maximum efficiency and equitable resource distribution?

    <p>Homogeneous products and perfect information</p> Signup and view all the answers

    What is the primary role of cost concepts in decision-making for businesses in perfectly competitive markets?

    <p>To maximize profit and minimize losses</p> Signup and view all the answers

    What is the primary consequence of imperfect competition on economic efficiency?

    <p>Allocative and productive inefficiencies.</p> Signup and view all the answers

    Which market structure is characterized by the presence of a single firm dominating the entire market?

    <p>Monopoly.</p> Signup and view all the answers

    What is the outcome of a perfectly competitive market in terms of resource allocation?

    <p>Equitable resource distribution</p> Signup and view all the answers

    What is the primary objective of government intervention in imperfect markets?

    <p>To promote perfect competition.</p> Signup and view all the answers

    What is the primary reason why individual businesses in perfectly competitive markets are unable to influence market prices?

    <p>Because they are price takers</p> Signup and view all the answers

    What is the primary consequence of imperfect markets on resource allocation?

    <p>Inefficient allocation of resources.</p> Signup and view all the answers

    What is the primary purpose of revenue and cost concepts in perfectly competitive markets?

    <p>To maximize profit and minimize losses</p> Signup and view all the answers

    What is the primary objective of cost-benefit analysis in public policy?

    <p>To evaluate the social costs and benefits of interventions</p> Signup and view all the answers

    What type of inflation strips out volatile items like food and energy, providing a clearer view of inflationary trends?

    <p>Core Inflation</p> Signup and view all the answers

    What is the primary consequence of inflation on the real value of debt?

    <p>It decreases the real value of debt</p> Signup and view all the answers

    What is the primary goal of monetary policy in controlling inflation?

    <p>To manage money supply and demand</p> Signup and view all the answers

    What is the primary characteristic of stagflation?

    <p>High inflation and stagnant economic growth</p> Signup and view all the answers

    What is the primary consequence of hyperinflation?

    <p>It reduces the purchasing power of money</p> Signup and view all the answers

    What is the primary goal of fiscal policy in controlling inflation?

    <p>To reduce government spending</p> Signup and view all the answers

    What is the primary consequence of inflation on the real value of saved money?

    <p>It decreases the real value of saved money</p> Signup and view all the answers

    What is the primary cause of demand-pull inflation?

    <p>Increase in aggregate demand</p> Signup and view all the answers

    What is the primary goal of the South African Reserve Bank's inflation targeting?

    <p>To maintain inflation within a manageable range</p> Signup and view all the answers

    What is the primary reason for government intervention in markets with monopolies and oligopolies?

    <p>To promote economic efficiency and reduce market failures</p> Signup and view all the answers

    What is the consequence of imperfect distribution of income and wealth in a market economy?

    <p>Skewed production towards high-end goods and services, while basic needs of the poorer sections remain unmet</p> Signup and view all the answers

    What is the primary goal of government intervention in response to market failures?

    <p>To correct market failures and promote economic efficiency</p> Signup and view all the answers

    What is the consequence of negative externalities in a market economy?

    <p>Environmental degradation and decreased social welfare</p> Signup and view all the answers

    What is the primary cause of market failures?

    <p>Imperfect competition and asymmetric information</p> Signup and view all the answers

    What is the term for goods that are underprovided by the market due to underestimating their benefits?

    <p>Merit goods</p> Signup and view all the answers

    What is the consequence of imperfect competition in markets?

    <p>Higher prices and reduced output</p> Signup and view all the answers

    What is the term for the situation where buyers and sellers do not have equal knowledge, leading to choices that do not maximize welfare?

    <p>Asymmetric information</p> Signup and view all the answers

    What is the type of inefficiency that occurs when resources are not allocated according to consumer preferences?

    <p>Allocative inefficiency</p> Signup and view all the answers

    What is the primary goal of government intervention in response to market failures, in terms of public goods?

    <p>To increase the production of public goods and promote social welfare</p> Signup and view all the answers

    What is the primary benefit of tourism to the national economy in South Africa?

    <p>Significantly contributing to the national GDP</p> Signup and view all the answers

    What is the role of strategic spatial distribution in tourism development?

    <p>All of the above</p> Signup and view all the answers

    What is the primary challenge posed by tourism to the environment?

    <p>All of the above</p> Signup and view all the answers

    What is the primary purpose of policy recommendations for sustainable tourism development?

    <p>All of the above</p> Signup and view all the answers

    What is the significance of indigenous knowledge systems in cultural tourism?

    <p>All of the above</p> Signup and view all the answers

    What is the primary contribution of tourism to employment in South Africa?

    <p>Directly employing 7% of the workforce</p> Signup and view all the answers

    What is the primary goal of education and training in the tourism sector?

    <p>Providing high-quality services to tourists</p> Signup and view all the answers

    What is the significance of environmental sustainability in the context of tourism development?

    <p>Preserving natural resources for future generations</p> Signup and view all the answers

    What is the primary challenge posed by the environmental impact of tourism to the local economy?

    <p>Resource depletion</p> Signup and view all the answers

    What is the primary goal of implementing strict regulations to preserve natural sites in tourism development?

    <p>Minimizing environmental impacts</p> Signup and view all the answers

    What is the primary objective of environmental sustainability?

    <p>To ensure the long-term health and efficiency of the environment and its ecosystems</p> Signup and view all the answers

    What is the primary difference between conservation and preservation?

    <p>Conservation focuses on managing human use of the biosphere, while preservation focuses on protecting ecosystems</p> Signup and view all the answers

    What is the primary purpose of market mechanisms in environmental sustainability?

    <p>To internalize environmental costs and promote sustainable practices</p> Signup and view all the answers

    What is the primary goal of the Rio de Janeiro Summit (UNCED 1992)?

    <p>To establish a global partnership for sustainable development</p> Signup and view all the answers

    What is the primary goal of the Paris Agreement (COP 21)?

    <p>To strengthen the global response to climate change and limit global warming to well below 2 degrees Celsius</p> Signup and view all the answers

    What is the primary challenge faced by the South African government in implementing environmental sustainability measures?

    <p>Balancing economic development with environmental protection</p> Signup and view all the answers

    What is the primary purpose of assigning property rights in environmental sustainability?

    <p>To help protect and manage environmental resources effectively</p> Signup and view all the answers

    What is the primary consequence of pollution and habitat destruction on the environment?

    <p>Loss of biodiversity and ecosystem disruption</p> Signup and view all the answers

    What is the primary goal of education and awareness in environmental sustainability?

    <p>To increase public understanding of environmental impacts and sustainable practices</p> Signup and view all the answers

    What is the primary outcome of the Johannesburg Summit (WSSD 2002)?

    <p>A focus on furthering the goals established in Rio</p> Signup and view all the answers

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