Nov P2 Easy

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What is a market primarily characterized by?

A system where only sellers interact to trade goods and services
A system where the government controls the trade of goods and services
A system where only prices are used to allocate resources
A system where buyers and sellers interact to trade goods and services (correct)

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

To control the production of goods and services
To allocate resources efficiently (correct)
To benefit only the producers
To set a fixed value for all goods and services

Which of the following is a characteristic of perfect markets?

A single buyer and seller
A large number of buyers and sellers (correct)
Barriers to entry for new firms
Limited information availability

What is utility in the context of markets?

The satisfaction a consumer derives from a good or service (C) Signup and view all the answers

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

Consumer markets involve the exchange of finished products, while factor markets involve the trade of resources (B) Signup and view all the answers

According to the law of demand, what happens to the quantity demanded when the price increases?

It decreases (B) Signup and view all the answers

What happens to the quantity supplied when the price increases, according to the law of supply?

It increases (A) Signup and view all the answers

What is the purpose of the exchange mechanism in a market?

To transfer goods or services from sellers to buyers at agreed prices (A) Signup and view all the answers

What is the primary goal of market forces?

To maintain balance and efficiency (B) Signup and view all the answers

What determines prices in a market?

Consumer preferences and cost of production (B) Signup and view all the answers

Why does the public sector intervene in the economy?

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

What is the purpose of indirect taxes?

To discourage consumption of specific goods (C) Signup and view all the answers

What is the effect of setting maximum prices (price ceilings) too low?

Shortages in the market (D) Signup and view all the answers

What are public goods characterized by?

Non-excludability and non-rivalry (C) Signup and view all the answers

What is the purpose of subsidies to consumers?

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

What is market equilibrium?

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

What determines how resources are allocated in a market?

Consumer preferences reflected through prices (D) Signup and view all the answers

Why does the public sector provide merit goods?

Because they provide significant societal benefits (A) Signup and view all the answers

What is the main purpose of setting minimum and maximum price levels?

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

What is the primary goal of welfare programs in the public sector?

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

What is the main reason for the state's engagement in the production of goods and services?

To ensure national security and economic stability in vital sectors (C) Signup and view all the answers

What is the Production Possibility Curve (PPC) used to illustrate?

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

What is assumed about the resources and technology in the PPC?

They are fixed and fully utilized at the lowest cost (C) Signup and view all the answers

What does a concave PPC curve suggest?

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

What can cause a shift in the PPC?

Both internal and external factors, including improvements in technology and economic policies (B) Signup and view all the answers

What is the main purpose of indifference curves?

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

What is a key challenge for governments in implementing public sector interventions?

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

What is a potential consequence of setting minimum wages too high?

Negatively impacted employment (A) Signup and view all the answers

What do indifference curves help in understanding?

Consumer preferences and consumption choices (A) Signup and view all the answers

What is a result of uneven income distribution?

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

What is the primary goal of government intervention in markets?

To correct market failures and promote efficient resource allocation (A) Signup and view all the answers

What is a consequence of inefficient resource allocation?

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

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

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

What is necessary to reduce unemployment and underemployment in South Africa?

Substantial economic growth that outpaces population growth (A) Signup and view all the answers

What is a determinant of the supply of labour in South Africa?

Wages offered and worker skills (B) Signup and view all the answers

What is the primary role of the PPC in economics?

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

What is a consequence of high inflation rates?

A decrease in the purchasing power (C) Signup and view all the answers

What is the primary goal of environmental regulations?

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

What is the primary goal of the Labour Relations Act?

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

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

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

What is the unemployment rate calculated as?

The number of unemployed individuals divided by the total EAP (B) Signup and view all the answers

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

Frictional unemployment (D) Signup and view all the answers

What is a result of industrial reorganization due to technological changes?

Structural unemployment (A) Signup and view all the answers

What is a characteristic of unemployment in South Africa?

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

What is one of the main reasons young people, especially those aged 16 to 24, face high unemployment rates?

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

Which of the following is an effect of unemployment?

Social problems such as increased crime and substance abuse (B) Signup and view all the answers

What is the role of labour courts in South Africa?

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

What is the purpose of collective bargaining agreements?

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

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

To reduce poverty and unemployment (D) Signup and view all the answers

What is the primary focus of the JIPSA initiative?

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

What is the Economically Active Population (EAP)?

All individuals over 16 who are either employed or actively seeking employment (C) Signup and view all the answers

What is the main objective of labour relations in South Africa?

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

What is the main objective of the Public Works Programs?

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

What is the main benefit of promoting local production in South Africa?

It leads to economic growth and job creation (D) Signup and view all the answers

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

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

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

To democratize the economy (D) Signup and view all the answers

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

To equip the youth with necessary skills (A) Signup and view all the answers

What is the main reason for addressing unemployment in South Africa?

To reduce poverty and inequality (A) Signup and view all the answers

What is the primary goal of the Tirisano Campaign?

To increase access to education and improve teaching standards (C) Signup and view all the answers

What is the main objective of Land Reform?

To redistribute land to previously disadvantaged communities (D) Signup and view all the answers

What is the purpose of the Employment Equity Act?

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

What is the primary goal of initiatives like Khula Enterprise Finance?

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

What is the main objective of the National Forests Act and Marine Living Resources Act?

To promote sustainable use of natural resources (D) Signup and view all the answers

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

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

What is the purpose of the Labour Relations Act?

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

What is the purpose of social grants in South Africa?

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

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

To ensure fair prices for producers and consumers (B) Signup and view all the answers

What is the main goal of social safety nets?

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

What is the result of state engagement in the production of goods and services?

Strategic control in vital sectors (B) Signup and view all the answers

What is the Production Possibility Curve (PPC) used to illustrate?

The maximum potential output of two goods (A) Signup and view all the answers

What is the shape of the PPC curve when opportunity costs are increasing?

Concave (B) Signup and view all the answers

What can cause an outward shift in the PPC?

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

What is the primary purpose of indifference curves?

To show different combinations of two goods that provide the same level of satisfaction (D) Signup and view all the answers

What is a key challenge for governments in implementing public sector interventions?

Balancing interventions with economic efficiency (C) Signup and view all the answers

What is a potential consequence of setting minimum wages too high?

Negatively impacting employment (C) Signup and view all the answers

What is the primary goal of government intervention in markets?

To address market imperfections (A) Signup and view all the answers

What is the primary role of competition in a market?

To attract buyers and influence prices (D) Signup and view all the answers

In a market economy, what do prices primarily serve as?

Signals for resource allocation (A) Signup and view all the answers

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

Type of goods traded (D) Signup and view all the answers

Which of the following is a characteristic of imperfect markets?

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

What is the relationship between price and the quantity demanded, according to the law of demand?

Inverse (C) Signup and view all the answers

What is the primary goal of sellers in a market?

To attract buyers and negotiate prices (C) Signup and view all the answers

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

A system where buyers and sellers interact to trade goods and services (D) Signup and view all the answers

What is the primary role of the exchange mechanism in a market?

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

What is a consequence of market failures in the economy?

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

What is the primary goal of government intervention in markets?

To correct market failures and promote efficient resource allocation (C) Signup and view all the answers

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

To demonstrate the efficiency of resource allocation (A) Signup and view all the answers

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

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

What is a consequence of high inflation rates?

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

What is the primary goal of environmental regulations?

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

What is necessary to reduce unemployment and underemployment in South Africa?

Substantial economic growth that outpaces population growth (D) Signup and view all the answers

What is a determinant of the supply of labour in South Africa?

Wages offered (B) Signup and view all the answers

What is the primary role of indifference curves?

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

What is a consequence of inefficient resource allocation?

The economy operating inside the PPC curve (D) Signup and view all the answers

What is the primary function of markets in allocating resources?

To determine what goods and services are produced and consumed based on collective consumer preferences (A) Signup and view all the answers

What is the result of market equilibrium?

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

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

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

What is the purpose of subsidies to producers?

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

What is the primary characteristic of public goods?

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

What is the purpose of price controls?

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

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

Market equilibrium (D) Signup and view all the answers

What is the primary purpose of government spending?

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

What is the primary goal of taxation?

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

What is the primary purpose of regulation in the economy?

To regulate economic activity (C) Signup and view all the answers

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

Lack of education and skills (B) Signup and view all the answers

What is a result of mechanisation and technological advancements?

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

What is a key challenge facing the economically marginalised groups?

Access to education and skills (A) Signup and view all the answers

What is the primary goal of the JIPSA initiative?

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

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

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

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

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

What is the result of industrial reorganization due to technological changes?

Structural unemployment (A) Signup and view all the answers

What is a key aspect of the Reconstruction and Development Programme (RDP)?

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

What is the main goal of the Tirisano Campaign?

To increase access to education and improve the quality of teaching (D) Signup and view all the answers

What is a consequence of unemployment?

Social problems, including increased crime and familial stress (C) Signup and view all the answers

What is a characteristic of unemployment in South Africa?

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

What is the primary goal of the Employment Equity Act?

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

What is the purpose of the Land Reform policy?

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

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

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

What is the purpose of collective bargaining agreements?

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

What is the purpose of the Public Works Programs?

Use infrastructure projects to create jobs and develop skills (A) Signup and view all the answers

What is the role of labour courts in South Africa?

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

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

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

What is the Economically Active Population (EAP) in South Africa?

All individuals over 16 who are either employed or actively seeking employment (D) Signup and view all the answers

What is the primary goal of promoting local production?

Encouraging buying South African-made products to support local businesses and job creation (A) Signup and view all the answers

What is the purpose of the Khula Enterprise Finance initiative?

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

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

Frictional unemployment (C) Signup and view all the answers

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

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

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

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

What is the purpose of the Labour Relations Act?

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

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

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

What is the goal of the AsgiSA policy?

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

What is the unemployment rate calculated as?

The number of unemployed individuals divided by the total Economically Active Population (EAP), multiplied by 100 (D) Signup and view all the answers

What is the primary function of the exchange mechanism in a market?

Transfers goods or services from sellers to buyers at agreed prices (A) Signup and view all the answers

What is the primary difference between the law of demand and the law of supply?

The law of demand describes the inverse relationship between price and quantity demanded, while the law of supply describes the direct relationship between price and quantity supplied (B) Signup and view all the answers

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

To signal to producers and consumers to adjust their production and consumption decisions (A) Signup and view all the answers

What is the primary characteristic of imperfect markets?

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

What is the primary function of sellers in a market?

To attract buyers (D) Signup and view all the answers

What is the primary difference between value and price?

Value is the worth of a good or service, while price is the amount of money paid (C) Signup and view all the answers

What is the primary function of buyers in a market?

To seek the best prices (A) Signup and view all the answers

What is the primary characteristic of a market?

A system where buyers and sellers interact to trade goods and services (C) Signup and view all the answers

What is the primary role of markets in allocating resources?

To determine what goods and services are produced and consumed based on collective consumer preferences (A) Signup and view all the answers

What is the purpose of market forces in a market economy?

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

What is a key reason for public sector intervention in the economy?

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

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

To fund public services and allocate resources across various sectors (A) Signup and view all the answers

What is the primary difference between direct and indirect taxes?

Direct taxes are paid directly by individuals and corporations, while indirect taxes are paid through higher prices (D) Signup and view all the answers

What is the purpose of subsidies to producers?

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

What is the effect of setting maximum prices (price ceilings) too low?

It leads to a shortage of goods and services (D) Signup and view all the answers

What is the primary characteristic of public goods?

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

What is the main purpose of government intervention in markets?

To correct market failures and promote efficient resource allocation (B) Signup and view all the answers

What is a consequence of uneven income distribution?

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

What is the primary goal of welfare programs in the public sector?

To provide essential services like healthcare and education (B) Signup and view all the answers

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

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

What is the primary role of the state in the production of goods and services?

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

What is a determinant of the supply of labour in South Africa?

Wages offered, worker skills, and migration patterns (C) Signup and view all the answers

What is a consequence of high inflation rates?

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

What is the primary goal of environmental regulations?

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

What is necessary to reduce unemployment and underemployment in South Africa?

Substantial economic growth that outpaces population growth (D) Signup and view all the answers

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

Productivity, cost of labour, technological advancements, and economic cycles (B) Signup and view all the answers

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

To correct labour market inefficiencies and promote social equality (C) Signup and view all the answers

What is a consequence of inefficient resource allocation?

A suboptimal position on the Production Possibility Curve (PPC) (B) Signup and view all the answers

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

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

Which of the following is a type of unemployment that occurs in industries with employment that varies by season?

Seasonal unemployment (B) Signup and view all the answers

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

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

What is one of the main reasons for high unemployment rates among young people in South Africa?

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

What is the purpose of collective bargaining agreements?

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

What is the main goal of the Labour Relations Act in promoting fair labour practices?

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

What is the result of industrial reorganization due to technological changes?

Structural unemployment (D) Signup and view all the answers

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

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

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

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

What is the Economically Active Population (EAP)?

All individuals over 16 who are either employed or actively seeking employment (D) Signup and view all the answers

What is the main effect of higher wages on the labour market?

It attracts more workers (D) Signup and view all the answers

What is the purpose of social safety nets?

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

Why does the state engage in the production of goods and services?

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

What is the Production Possibility Curve (PPC) used to illustrate?

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

What does a concave PPC curve suggest?

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

What can cause a shift in the PPC?

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

What is the primary goal of welfare programs in the public sector?

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

What is the main purpose of indifference curves?

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

What is a key challenge for governments in implementing public sector interventions?

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

What is a potential consequence of setting minimum wages too high?

Negatively impacting employment (C) Signup and view all the answers

What is one of the main reasons young people, especially those aged 16 to 24, face high unemployment rates?

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

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

Historic reasons, including apartheid era policies (B) Signup and view all the answers

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

To reduce poverty and unemployment (B) Signup and view all the answers

What is the Unemployment Insurance Fund (UIF) in South Africa?

A temporary financial assistance program for qualified individuals who have lost their jobs (C) Signup and view all the answers

Which of the following is an effect of unemployment?

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

What is a characteristic of unemployment in South Africa?

It has deep historical roots and broad social impacts (A) Signup and view all the answers

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

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

What is the focus of the JIPSA initiative?

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

What is the primary goal of government interventions in addressing unemployment?

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

What is the significance of education and training in addressing unemployment?

It is essential for equipping the youth with necessary skills (A) Signup and view all the answers

What is the main focus of the Tirisano Campaign?

Effective schooling and professional teaching (A) Signup and view all the answers

What is the primary goal of the Employment Equity Act?

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

What is the main objective of the Land Reform policy?

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

What is the primary goal of the National Forests Act and Marine Living Resources Act?

To protect the environment and promote equitable access to natural resources (D) Signup and view all the answers

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

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

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

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

What is the primary goal of the Labour Relations Act?

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

What is the primary goal of social grants in South Africa?

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

What is the primary function of the exchange mechanism in a market?

To transfer goods or services from sellers to buyers (B) Signup and view all the answers

What is the relationship between price and quantity demanded according to the law of demand?

Inverse (C) Signup and view all the answers

What is the primary characteristic of a perfect market?

A large number of buyers and sellers (B) Signup and view all the answers

What is the purpose of prices in a market economy?

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

What is the primary difference between consumer and factor markets?

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

What is the relationship between price and quantity supplied according to the law of supply?

Direct (D) Signup and view all the answers

What is utility in the context of markets?

The satisfaction a consumer derives from a good or service (A) Signup and view all the answers

What is the primary goal of market forces?

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

What is the primary goal of government intervention in markets?

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

What can cause a shift in the Production Possibility Curve (PPC)?

A change in technology or resources (C) Signup and view all the answers

What is a consequence of inefficient resource allocation?

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

What is the primary role of the PPC in economics?

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

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

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

What is necessary to reduce unemployment and underemployment in South Africa?

Substantial economic growth (B) Signup and view all the answers

What is a determinant of the supply of labour in South Africa?

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

What is a consequence of high inflation rates?

Eroded purchasing power and destabilized economy (C) Signup and view all the answers

What is the primary goal of environmental regulations?

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

What is a result of uneven income distribution?

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

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

To stabilize the economy and ensure fair prices for producers and consumers (B) Signup and view all the answers

What is a potential consequence of setting minimum wages too high?

Negative impact on employment (D) Signup and view all the answers

What is the purpose of social safety nets?

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

What is the shape of the PPC when opportunity costs are decreasing?

Convex (D) Signup and view all the answers

What can cause a shift in the PPC?

Improvements in technology or increases in resource availability (B) Signup and view all the answers

What is the primary goal of welfare programs in the public sector?

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

What is the main reason for the state's engagement in the production of goods and services?

To support strategic control in vital sectors (C) Signup and view all the answers

What is the purpose of indifference curves?

To understand different combinations of two goods that provide the same level of satisfaction (B) Signup and view all the answers

What is a key challenge for governments in implementing public sector interventions?

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

What is the primary goal of privatization?

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

What is the outcome of market equilibrium?

The quantity demanded equals the quantity supplied (D) Signup and view all the answers

What is the primary function of markets?

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

What is a factor that influences demand and supply?

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

What is the purpose of public sector intervention?

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

What is a type of indirect tax?

Value-Added Tax (VAT) (C) Signup and view all the answers

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

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

What is a characteristic of merit goods?

They provide significant societal benefits (B) Signup and view all the answers

What is the purpose of taxation in the public sector?

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

What is a consequence of market failures?

Inefficient resource allocation (B) Signup and view all the answers

What is the primary goal of government intervention in markets?

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

What is the main objective of the Tirisano Campaign?

To promote effective schooling and professional teaching (B) Signup and view all the answers

What is the primary goal of the Employment Equity Act?

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

What is the main objective of the Land Reform initiative?

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

What is the purpose of the National Forests Act and Marine Living Resources Act?

To protect the environment while promoting equitable access to natural resources (B) Signup and view all the answers

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

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

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

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

What is the primary goal of the Labour Relations Act?

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

What is the primary objective of the AsgiSA policy?

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

What is one of the main reasons young people, especially those aged 16 to 24, face high unemployment rates?

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

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

To reduce poverty and unemployment (B) Signup and view all the answers

What is the main reason for the high unemployment rates in South Africa?

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

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

To provide temporary financial assistance to qualified individuals (B) Signup and view all the answers

What is a characteristic of unemployment in South Africa?

High unemployment rates among young people (A) Signup and view all the answers

What is the primary goal of government interventions in addressing unemployment?

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

What is a result of unemployment?

Increased poverty and social problems (B) Signup and view all the answers

What is the primary goal of education and training initiatives in addressing unemployment?

To equip the youth with necessary skills (A) Signup and view all the answers

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

To unify the nation and democratize the economy (D) Signup and view all the answers

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

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

What is the primary goal of the Labour Relations Act?

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

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

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

What is the primary goal of collective bargaining agreements?

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

What is one of the main reasons for high unemployment rates in South Africa?

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

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

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

What is frictional unemployment?

Unemployment that occurs when individuals switch jobs or enter the workforce (B) Signup and view all the answers

What is the Economically Active Population (EAP)?

All individuals over 16 who are either employed or actively seeking employment (B) Signup and view all the answers

What is structural unemployment?

Unemployment that results from industrial reorganization due to technological changes (C) Signup and view all the answers

What is the primary goal of the government's labour market interventions?

To ensure a stable and productive workforce, essential for South Africa's ongoing economic development and social cohesion (C) Signup and view all the answers

What is cyclical unemployment?

Unemployment associated with the economic cycles (D) Signup and view all the answers

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

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

What is the purpose of social safety nets?

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

What is the main reason for the state's engagement in the production of goods and services?

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

What is the primary goal of welfare programs in the public sector?

To alleviate poverty and stimulate economic activity (B) Signup and view all the answers

What is the effect of price floors and ceilings on the market?

They distort the natural balance of demand and supply (A) Signup and view all the answers

What is the shape of the PPC curve if opportunity costs are increasing?

Concave (B) Signup and view all the answers

What is the effect of an outward shift in the PPC?

Economic growth (D) Signup and view all the answers

What is the purpose of indifference curves?

To understand different combinations of two goods that provide the same level of satisfaction (D) Signup and view all the answers

What is a key challenge for governments in implementing public sector interventions?

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

What is a potential consequence of setting minimum wages too high?

Negatively impacting employment (D) Signup and view all the answers

What is the primary goal of government intervention in markets?

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

What is a consequence of inefficient resource allocation?

A suboptimal position on the PPC curve (B) Signup and view all the answers

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

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

What is the primary goal of environmental regulations?

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

What is a result of uneven income distribution?

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

What is the primary role of the PPC in economics?

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

What is necessary to reduce unemployment and underemployment in South Africa?

Substantial economic growth (B) Signup and view all the answers

What is a determinant of the supply of labour in South Africa?

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

What is a consequence of high inflation rates?

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

What is the primary goal of regulating monopolies?

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

What is the primary function of a market?

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

Which of the following is NOT a characteristic of a market?

Government intervention (A) Signup and view all the answers

What does the value of a good or service represent?

The worth of a good or service in exchange (D) Signup and view all the answers

What is the primary difference between perfect and imperfect markets?

Number of buyers and sellers (B) Signup and view all the answers

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

Factor markets (D) Signup and view all the answers

What is the relationship between price and quantity demanded, according to the law of demand?

Inverse relationship (B) Signup and view all the answers

What is the purpose of prices in a market economy?

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

What is the result of the interaction of supply and demand in a market?

Price determination (C) Signup and view all the answers

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

To promote fair labour practices (C) Signup and view all the answers

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

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

What is the Economically Active Population (EAP) in South Africa?

All individuals over 16 who are either employed or actively seeking employment (D) Signup and view all the answers

What type of unemployment occurs due to industrial reorganization, often due to technological changes?

Structural unemployment (C) Signup and view all the answers

What is the purpose of collective bargaining agreements?

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

What is the role of labour courts in South Africa?

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

What is a characteristic of unemployment in South Africa?

A lack of skills among the workforce (A) Signup and view all the answers

What is the calculation for the unemployment rate?

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

What is frictional unemployment?

Unemployment occurring when individuals switch jobs or enter the workforce (D) Signup and view all the answers

What is the purpose of the Labour Relations Act in promoting collective bargaining?

To facilitate collective bargaining through unions and employer organisations (D) Signup and view all the answers

What is the primary outcome of market equilibrium?

Stable market price (B) Signup and view all the answers

What is the main function of markets in resource allocation?

Determine what goods and services are produced and consumed (A) Signup and view all the answers

What can influence demand and supply in markets?

Economic conditions, consumer preferences, technological changes, and external shocks (C) Signup and view all the answers

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

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

What is the purpose of direct taxes?

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

What is the effect of setting maximum prices (price ceilings) too low?

Shortages (A) Signup and view all the answers

What are public goods characterized by?

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

What is the primary goal of government intervention in markets?

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

What is the purpose of subsidies to producers?

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

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

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

What is one of the main causes of high unemployment rates among young people, especially those aged 16 to 24?

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

What is the result of a growth rate of population surpassing that of job creation?

High unemployment rates (B) Signup and view all the answers

What is a consequence of unemployment in South Africa?

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

What is the focus of JIPSA?

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

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

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

Who is eligible for temporary financial assistance from the Unemployment Insurance Fund (UIF)?

Qualified individuals who have lost their jobs (D) Signup and view all the answers

What is a challenge faced by economically marginalised groups in South Africa?

Lesser economic opportunities and higher risks of unemployment (B) Signup and view all the answers

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

To stimulate economic growth and improve education (D) Signup and view all the answers

What is the result of the RDP's focus on infrastructure and basic services?

Upliftment of underprivileged communities (D) Signup and view all the answers

What is a key aspect of the RDP's human resource development?

Improving literacy and education rates (C) Signup and view all the answers

What is the primary goal of the Tirisano Campaign?

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

What is the main objective of the Land Reform policy?

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

What is the purpose of the National Forests Act and Marine Living Resources Act?

To protect the environment and promote equitable access to natural resources (B) Signup and view all the answers

What is the main goal of the Employment Equity Act?

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

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

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

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

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

What is the main objective of the Labour Relations Act?

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

What is the main goal of the ASGI-SA policy?

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

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Questions and Answers

What is a market primarily characterized by?

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

Which of the following is a characteristic of perfect markets?

What is utility in the context of markets?

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

According to the law of demand, what happens to the quantity demanded when the price increases?

What happens to the quantity supplied when the price increases, according to the law of supply?

What is the purpose of the exchange mechanism in a market?

What is the primary goal of market forces?

What determines prices in a market?

Why does the public sector intervene in the economy?

What is the purpose of indirect taxes?

What is the effect of setting maximum prices (price ceilings) too low?

What are public goods characterized by?

What is the purpose of subsidies to consumers?

What is market equilibrium?

What determines how resources are allocated in a market?

Why does the public sector provide merit goods?

What is the main purpose of setting minimum and maximum price levels?

What is the primary goal of welfare programs in the public sector?

What is the main reason for the state's engagement in the production of goods and services?

What is the Production Possibility Curve (PPC) used to illustrate?

What is assumed about the resources and technology in the PPC?

What does a concave PPC curve suggest?

What can cause a shift in the PPC?

What is the main purpose of indifference curves?

What is a key challenge for governments in implementing public sector interventions?

What is a potential consequence of setting minimum wages too high?

What do indifference curves help in understanding?

What is a result of uneven income distribution?

What is the primary goal of government intervention in markets?

What is a consequence of inefficient resource allocation?

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

What is necessary to reduce unemployment and underemployment in South Africa?

What is a determinant of the supply of labour in South Africa?

What is the primary role of the PPC in economics?

What is a consequence of high inflation rates?

What is the primary goal of environmental regulations?

What is the primary goal of the Labour Relations Act?

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

What is the unemployment rate calculated as?

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

What is a result of industrial reorganization due to technological changes?

What is a characteristic of unemployment in South Africa?

What is one of the main reasons young people, especially those aged 16 to 24, face high unemployment rates?

Which of the following is an effect of unemployment?

What is the role of labour courts in South Africa?

What is the purpose of collective bargaining agreements?

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

What is the primary focus of the JIPSA initiative?

What is the Economically Active Population (EAP)?

What is the main objective of labour relations in South Africa?

What is the main objective of the Public Works Programs?

What is the main benefit of promoting local production in South Africa?

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

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

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

What is the main reason for addressing unemployment in South Africa?

What is the primary goal of the Tirisano Campaign?

What is the main objective of Land Reform?

What is the purpose of the Employment Equity Act?

What is the primary goal of initiatives like Khula Enterprise Finance?

What is the main objective of the National Forests Act and Marine Living Resources Act?

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

What is the purpose of the Labour Relations Act?

What is the purpose of social grants in South Africa?

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

What is the main goal of social safety nets?

What is the result of state engagement in the production of goods and services?

What is the Production Possibility Curve (PPC) used to illustrate?

What is the shape of the PPC curve when opportunity costs are increasing?

What can cause an outward shift in the PPC?

What is the primary purpose of indifference curves?

What is a key challenge for governments in implementing public sector interventions?

What is a potential consequence of setting minimum wages too high?

What is the primary goal of government intervention in markets?