1.1 Various options are provided as possible answers to the following questions - NSC Economics - Question 1 - 2023 - Paper 2
Question 1
1.1 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.... show full transcript
Worked Solution & Example Answer:1.1 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 correct answer is C. fixed costs. These are the costs that remain constant regardless of the level of production or output.
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 correct answer is A. deregulation. This refers to the process of removing or reducing government regulations that restrict market entry.
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 correct answer is B. positive. This describes a situation where the benefits extend beyond the direct buyer and seller.
Step 4
1.1.4 Actual expenditure of a business on inputs required for production is called … costs.
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Answer
The correct answer is D. explicit costs. These are the out-of-pocket expenses incurred during 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 correct answer is A. prime. This interest rate is significant as it influences other rates in the economy.
Step 6
1.1.6 Religious events are classified under … tourism.
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Answer
The correct answer is D. cultural. This refers to tourism that is focused on experiencing and learning about different religions and cultures.
