Various options are provided as possible answers to the following questions - NSC Economics - Question 1 - 2024 - 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 - 2024 - Paper 2
Step 1
1.1.1 The value of inputs that are owned by an entrepreneur and used in the production process is called ... cost.
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Answer
The correct answer is C: total. Total cost includes all the inputs owned by the entrepreneur utilized in the production process.
Step 2
1.1.2 When average revenue is greater than average cost, the firm makes an/a ...
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Answer
The correct answer is D: economic profit. Economic profit occurs when total revenue exceeds total costs, indicating that the firm is operating efficiently.
Step 3
1.1.3 A market that is dominated by two producers is known as an/a ...
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The correct answer is A: duopoly. A duopoly is a specific type of oligopoly where only two firms exist in the market.
Step 4
1.1.4 When the market fails to supply the product combination that is needed by consumers, it is called ...
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The correct answer is B: allocative inefficiency. Allocative inefficiency occurs when resources are not allocated in a way that maximizes consumer satisfaction.
Step 5
1.1.5 An index that measures prices of imported goods as they enter the country is known as ... price index.
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The correct answer is B: basket. A basket price index evaluates the changes in price levels of a specific set of imported goods.
Step 6
1.2.1 Industry
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The correct answer is F: sum of all individual businesses producing a similar kind of product.
Step 7
1.2.2 Deregulation
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The correct answer is D: The removal of unnecessary laws and regulations that restrict the economy.
Step 8
1.2.3 Heterogeneous
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The correct answer is G: products that are different in appearance, size and quality.
Step 9
1.2.4 Maximum price
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The correct answer is A: A set below market equilibrium to make goods more affordable.
Step 10
1.2.5 Core inflation
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The correct answer is H: excludes the items from the CPI basket that are highly volatile or priced affected by government policy.
Step 11
1.2.6 Indigenous knowledge system
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The correct answer is E: a variety of plants and animal life within an ecosystem.
Step 12
1.2.7 Biodiversity
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The correct answer is I: a variety of plant and animal life within an ecosystem.
Step 13
1.2.8 Erosion
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The correct answer is B: some of the goods and services that are not available due to area constraints.
Step 14
1.3.1 The cost that remains the same even if the output changes
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The correct term is fixed cost.
Step 15
1.3.2 The additional revenue earned by selling one extra unit of a product
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The correct term is marginal revenue.
Step 16
1.3.3 When identical goods and services are sold at various prices to different consumers
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The correct term is price discrimination.
Step 17
1.3.4 Low growth, high unemployment and high inflation rate occurring at the same time
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The correct term is stagflation.
Step 18
1.3.5 The activity of people travelling to and staying in places outside their usual environment for no longer than one year
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The correct term is tourism.
Step 19
1.3.6 The granting of licenses to businesses to set limits for pollution.
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