Various options are provided as possible answers to the following questions - NSC Economics - Question 1 - 2022 - 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 - 2022 - Paper 2
Step 1
1.1.1 A firm will shut down if it cannot cover the … costs.
96%
114 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
The answer is C, fixed costs. A firm will shut down if its revenues cannot cover the fixed costs of operation.
Step 2
1.1.2 The demand curve that is relatively elastic relates to a … market.
99%
104 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
The answer is B, perfect. In a perfectly competitive market, the demand curve is perfectly elastic.
Step 3
1.1.3 In the oligopoly market, the firm will make a/an … in the long run.
96%
101 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
The answer is A, normal profit. Firms in an oligopoly can earn a normal profit in the long run due to barriers to entry.
Step 4
1.1.4 When a business fails to produce the optimum output at the lowest possible cost, it is known as … inefficiency.
98%
120 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
The answer is A, productive efficiency. This occurs when a firm does not utilize resources effectively.
Step 5
1.1.5 When the economy is experiencing a low growth, high unemployment and high inflation, it is called …
97%
117 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
The answer is B, stagnation. This term describes an economy that is stagnant with concurrent issues.
Step 6
1.1.6 Tourists who engage in activities in the natural environment of the place that they visit, is called … tourism.
97%
121 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
The answer is C, eco-tourism. This involves travel aimed at responsible enjoyment of natural areas.
Step 7
1.1.7 Measures taken to ensure that non-renewable resources are not threatened by extinction are known as …
96%
114 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
The answer is A, preservation. Preservation efforts focus on maintaining non-renewable resources.
Step 8
1.1.8 The international agreement that manages the disposal of chemical waste is called the …
99%
104 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
The answer is A, Basel Convention. This agreement regulates the disposal of hazardous waste internationally.
