1. SA Macro-economic Environment Flashcards

1
Q

A contractionary fiscal policy entails a decrease in the demand for goods in the economy by (1)…. A result of such a policy is that the budget deficit (2)….

A

(1) decreasing government spending and/or increasing taxes

(2) increases

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2
Q

An expansionary fiscal policy entails an increase in the demand for goods in the economy by (1)…. A result of such a policy is that the budget deficit (2)….

A

(1) increasing government spending and/or decreasing taxes

(2) decreases

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3
Q

An … is someone who is willing and able to work but who does not have a job.

A

unemployed person

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4
Q

Contractionary monetary policy entails an (1)…. This therefore increases (2)…

A

(1) increase in the repo rate

(2) interest rates and cost of credit

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5
Q

Economic growth takes place when the (1)… of goods and services in an economy (2)…

A

(1) total output (production)

(2) increases

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6
Q

Expansionary monetary policy entails a (1)… This therefore decreases (2)…

A

(1) decrease in the repo rate

(2) market interest and cost of credit

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7
Q

Expenditure on GDP includes (1)… and excludes (2)…, it is all spending on what we as a country produce.

A

(1) exports

(2) imports

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8
Q

GDP is a … because it includes the total amount of goods and services produced, some of which are simply replacing goods that have depreciated or worn out.

A

gross measurement

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9
Q

GDP measures the goods and services produced inside the borders of a country by …

A

both the citizens and foreigners

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10
Q

Gross Domestic Expenditure total value of spending within the borders of a country, including imports but …, since spending on exports takes place outside the borders of the country.

A

excluding exports

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11
Q

In addition, children between the ages of … are protected from work that is “exploitative, hazardous, inappropriate for their age, detrimental to their schooling, or detrimental to their social, physical, mental, spiritual, or moral development”.

A

15 and 18

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12
Q

Inflation is defined as …

A

the sustained rise in the general level of prices

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13
Q

Intermediary goods is goods used in the production of products meant for …

A

end users

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14
Q

It is a criminal offence to employ a child under the age of … in South Africa

A

15 years

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15
Q

Marginal propensity to consume = the portion of household income that is spent on …

A

goods and services

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16
Q

Monetary policy involves all deliberate actions by the monetary authorities to influence the …

A

monetary aggregates, the availability of credit, interest rates and exchange rates

17
Q

Nominal GDP is the sum of the quantities of final goods and services produced, multiplied by their …

A

current price

18
Q

Only … are included in GDP.

A

final goods and services

19
Q

Real GDP is the sum of the quantities of final goods and services produced, multiplied by the …

A

base price

20
Q

Structural unemployment occurs when there is a mismatch between workers’ …

A

qualifications and job requirements

21
Q

The demand for goods which consist of (1)… , (2)… , and (3)… are important factors in creating employment opportunities in South Africa.

A

(1) consumer spending
(2) investment spending
(3) government spending

22
Q

The fiscal policy is a government’s policy that looks at the nature and composition of (1)… to achieve specific (2)…

A

(1) government spending, taxation and borrowing

(2) economic goals

23
Q

The GDP is the total value of (1)… produced within the (2)… during a (3)…

A

(1) all final goods and services
(2) boundaries of a country
(3) particular period (usually one year)

24
Q

The type of unemployment in SA is …

A

structural unemployment

25
The .... policy plays an important role in influencing the demand for goods.
fiscal
26
To qualify as economic growth the growth needs to be in (1)... , therefore (2)... and figures needs to be adjusted for (3)...
(1) real terms (2) inflation needs to be excluded (3) population growth
27
What is the strict definition of unemployment?
Those being 15 years and older: 1. not in paid employment 2. were available for paid employment 7 days preceding interview 3. took steps during 4 weeks preceding interview to find employment
28
You have two stabilization policies namely?
1. Fiscal policy | 2. Monetary policy
29
You have two types of fiscal policy namely?
1. Expansionary fiscal policy | 2. Contractionary fiscal policy
30
... are responsible for consumer spending and a change in their spending behaviour, even a small one, will result in a change in the demand for goods, output and income
Households
31
... is when the total real production or income grows faster than the population.
Positive economic growth