Various options are provided as possible answers to the following questions - NSC Economics - Question 1 - 2023 - Paper 2
Question 1
Various options are provided as possible answers to the following questions. Choose the answer and write only the letter (A–D) next to the question numbers (1.1.1 to... show full transcript
Worked Solution & Example Answer:Various options are provided as possible answers to the following questions - NSC Economics - Question 1 - 2023 - Paper 2
Step 1
1.1.1 The costs that do not change with the output are called … costs.
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Answer
The answer is C. Fixed costs are those that remain constant regardless of the level of output produced by a business.
Step 2
1.1.2 The removal of rules and procedures to allow easy entry of new firms in the market is called …
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Answer
The answer is A. Deregulation refers to the process of removing barriers and rules to promote competition and facilitate new entrants into a market.
Step 3
1.1.3 The benefit gained by a third party which is not included in the market price is known as … externality.
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Answer
The answer is C. Negative externality refers to costs that are suffered by a third party as a result of an economic transaction.
Step 4
1.1.4 Actual expenditure of a business on inputs required for production is called … costs.
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Answer
The answer is D. Explicit costs are direct, out-of-pocket payments for resources and inputs used in production.
Step 5
1.1.5 The rate at which the central bank lends money to commercial banks is called … rate.
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Answer
The answer is A. The prime rate is the interest rate that commercial banks charge their most credit-worthy customers.
Step 6
1.1.6 Religious events are classified under … tourism.
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Answer
The answer is D. Cultural tourism often encompasses activities related to religious events, providing experiences related to cultural and historical significance.
