Podcast
Questions and Answers
In a free-market economic system, how are resource allocation decisions made?
In a free-market economic system, how are resource allocation decisions made?
- By coordinating with the government
- Through state control
- By political philosophies
- Through the price system (correct)
Which of the following is a leakage in the circular flow model?
Which of the following is a leakage in the circular flow model?
- Consumer spending
- Investment spending
- Government spending
- Imports (correct)
What is the primary goal of inflation targeting by the South African Reserve Bank (SARB)?
What is the primary goal of inflation targeting by the South African Reserve Bank (SARB)?
- To manage government spending and taxation effectively
- To regulate the interest rates and money supply
- To control inflation within a specific framework (correct)
- To reduce the budget deficit and accumulate surpluses
How does fiscal policy impact the economy when it is tightened?
How does fiscal policy impact the economy when it is tightened?
What is the purpose of direct controls in economic management?
What is the purpose of direct controls in economic management?
How do open market operations influence the economy?
How do open market operations influence the economy?
What does the bank or discount rate policy influence directly?
What does the bank or discount rate policy influence directly?
Why is coordination between fiscal and monetary policies considered crucial?
Why is coordination between fiscal and monetary policies considered crucial?
In a mixed economy, the allocation of resources is influenced by which of the following?
In a mixed economy, the allocation of resources is influenced by which of the following?
Which factor does NOT impact the circular flow model?
Which factor does NOT impact the circular flow model?
What does aggregate demand in an economy encompass?
What does aggregate demand in an economy encompass?
How are real and financial flows related in the circular flow model?
How are real and financial flows related in the circular flow model?
How does the Reserve Requirements policy impact the economy?
How does the Reserve Requirements policy impact the economy?
What is the main purpose of open market operations in monetary policy?
What is the main purpose of open market operations in monetary policy?
Why does the coordination of fiscal and monetary policies play a crucial role in economic management?
Why does the coordination of fiscal and monetary policies play a crucial role in economic management?
What is the primary function of the Bank or Discount Rate Policy?
What is the primary function of the Bank or Discount Rate Policy?
How does fiscal policy impact economic activity when it is loosened?
How does fiscal policy impact economic activity when it is loosened?
What happens when there is a budget surplus in a country?
What happens when there is a budget surplus in a country?
