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 value of inputs owned by an entrepreneur and used in the production process is referred to as total cost. This encompasses all costs, including fixed and variable costs, and represents the financial input needed for production.
Step 2
1.1.2 When average revenue is greater than average cost, the firm makes an/an ... .
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When average revenue exceeds average cost, the firm achieves economic profit. This indicates that the firm is generating a profit over and above its total costs.
Step 3
1.1.3 A market that is dominated by two producers is known as an/an ... .
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A market controlled by two producers is known as a duopoly. This structure allows both firms to have significant influence over market conditions.
Step 4
1.1.4 When the market fails to supply the product combination that is needed by consumers, it is called ... inefficiency.
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This situation is termed allocative inefficiency. It occurs when resources are not allocated in a way that meets consumer needs.
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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This index is called the producer price index. It reflects the prices of goods at the wholesale level, focusing specifically on imports.
Step 6
1.2.1 Industry
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A variety of firms that produce similar goods and services.
Step 7
1.2.2 Deregulation
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The removal of unnecessary laws that restrict market entry.
Step 8
1.2.3 Heterogeneous
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Products that exhibit differences in size, appearance, or quality.
Step 9
1.2.4 Maximum price
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A price ceiling set by the government to limit the price of goods.
Step 10
1.2.5 Core inflation
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The long-term trend of inflation excluding volatile items.
Step 11
1.2.6 Indigenous knowledge system
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Local traditions and practices unique to a specific region.
Step 12
1.2.7 Biodiversity
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The variety of life, including various species in an ecosystem.
Step 13
1.2.8 Erosion
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The process of soil and rock being removed by wind and water.
Step 14
1.3.1 The cost that remains the same even if the output changes
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This is referred to as fixed cost.
Step 15
1.3.2 The additional revenue earned by selling one extra unit of a product
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This is known as marginal revenue.
Step 16
1.3.3 When identical goods and services are sold at various prices to different consumers
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This practice is called price discrimination.
Step 17
1.3.4 Low growth, high unemployment and high inflation rate occurring at the same time
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This economic condition is referred to as 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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This activity is classified as tourism.
Step 19
1.3.6 The granting of licences to businesses to set limits for pollution
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