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.
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Answer
The answer is C: fixed. A firm will decide to shut down operations if it is unable to cover its fixed costs, as these are constant expenses that must be paid regardless of production levels.
Step 2
1.1.2 The demand curve that is relatively elastic relates to a … market.
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Answer
The answer is B: perfect. In a perfect market, the demand curve is more likely to be elastic, meaning consumers will react significantly to price changes.
Step 3
1.1.3 In the oligopoly market, the firm will make a/an … in the long run.
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Answer
The answer is A: normal profit. Firms in an oligopoly can earn normal profits in the long run as they can differentiate their products and set prices.
Step 4
1.1.4 When a business fails to produce the optimum output at the lowest possible cost, it is known as … inefficiency.
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Answer
The answer is A: productive. When a business doesn't achieve the lowest possible cost for its output, it exhibits productive inefficiency.
Step 5
1.1.5 When the economy is experiencing a low growth, high unemployment and high inflation, it is called …
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Answer
The answer is B: stagnation. This scenario describes economic stagnation, where growth is slow yet inflation continues.
Step 6
1.1.6 Tourists who engage in activities in the natural environment of the place that they visit, is called … tourism.
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Answer
The answer is C: eco-. Such tourism emphasizes minimal impact on the environment while enjoying nature.
Step 7
1.1.7 Measures taken to ensure that non-renewable resources are not threatened by extinction are known as …
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Answer
The answer is A: preservation. Preservation efforts aim to protect non-renewable resources from depletion.
Step 8
1.1.8 The international agreement that manages the disposal of chemical waste is called the …
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Answer
The answer is A: Basel Convention. This agreement is crucial in regulating the disposal and management of hazardous waste globally.
