Impact, challenges and solutions for socio-economic issues

Question 1

What is the Gini coefficient?

Answer 1

It measures the distribution of income across a population of a country. If a country scores 0, they have perfect equality. If a country scores 1, they have perfect inequality.

Question 2

Describe the 3 poverty thresholds/lines.

Answer 2

• The upper-bound poverty line (UBPL), which is the point at which individuals cannot sustain a lifestyle that is considered desirable in South Africa.
• The lower-bound poverty line (LBPL) is the threshold where individuals have to choose between food and important non-food items. In 2020, this was R785 ($47,04) per month.

The food poverty line (FPL) is the point at which individuals do not have sufficient money or access to resources to buy and consume enough food to supply them with minimum per-capita-per-day energy requirements for good health (about 2 100 calories). In 2020, this was R547 ($32,78) per month.

Question 2

Describe the 3 poverty thresholds/lines.

Answer 2

• The upper-bound poverty line (UBPL), is where individuals cannot sustain a lifestyle that is considered desirable in South Africa. (R1183, 2020)
• The lower-bound poverty line (LBPL) is the threshold where individuals have to choose between food and important non-food items. (R785, 2020)

The food poverty line (FPL) is the point at which individuals do not have sufficient money to buy enough food for their minimum per-capita-per-day energy requirements for good health. (R547, 2020)

Question 3

What is inflation?

Answer 3

Inflation is the rate at which the value of a country’s currency is falling.

Question 4

Name the social factors that affect consumer behaviours and buying trends.

Answer 4

• Poverty.
• Unemployment.
• Education
• HIV/AIDS (SA is epicentre of this pandemic)

Question 5

What are cultural factors that affect consumer behaviours and buying trends?

Answer 5

• Religion
• Language

Question 6

What are demographics?

Answer 6

• It is the structure or make up of the population based on age, gender, racial groups, and geographic regions.

Question 7

What is economic crime also known as?

Answer 7

White collar crime.

Question 8

What is economic crime?

Answer 8

It is illegal acts committed by an individual or a group of individuals for an economic or financial advantage.

Question 9

What are some examples of economic crime?

Answer 9

• Money laundering
• Identity theft
• Tax crimes
• Cybercrime
• Schemes and scams

Question 10

What is ethical misconduct?

Answer 10

Ethical misconduct is any behaviour that does not follow the values and morals that are considered acceptable.

Question 11

What are some examples of ethical misconduct in the workplace?

Answer 11

• Sexual harassment
• Corruption
• Mismanagement of funds

Question 12

What are some examples of corruption?

Answer 12

• Bribery
• Theft
• Collusion

Question 13

Name the occupations that are unable to find candidates due to lack of skills.

Answer 13

• Architect
• Data scientist
• Hydrologist

Question 14

Why are natural resources considered a socioeconomic challenge?

Answer 14

• due to unavailability of natural resources.
• due to inefficiency in the use of resources.
• due to exhaustion of natural resources.

Question 15

What is dumping?

Answer 15

Dumping is when an international company provides goods to a foreign market at a low price, harming the local competitors and market.

Question 16

What is piracy?

Answer 16

Piracy is the unauthorised use or reproduction of another person’s original work for financial gain.

Question 17

What is counterfeiting?

Answer 17

Counterfeiting is the reproduction of another person’s original work for financial gain. Counterfeit goods are reproduced to look as similar to the original as possible.

Question 18

What is intellectual property?

Answer 18

It refers to something new or original that has been created, developed, or invented,

Question 19

What are the 3 categories of Maslow’s hierarchy of needs?

Answer 19

• basic
• psychological
• self-fulfilment needs.

Question 20

What does low income levels lead to?

Answer 20

• increase in shoplifting and robberies.
• negative effect on employee morale.
• low productivity, which will have a negative impact on business turnover.

Question 21

What effect does inflation have?

Answer 21

• increase in costs of resources, machinery and production costs
• decrease in consumer spending due to decrease in purchasing power

Question 22

What is retrenchment?

Answer 22

A form of dismissal due to the employer needing to cut costs, limit losses, or increase profits.

Question 23

How is the business impacted by strikes?

Answer 23

• Loss of production.
• Loss of income due to lack of productivity.
• Investors may be deterred from investing due to strike action.
• Loss or damage to property if strikes become violent.

Question 24

What is a patent?

Answer 24

A patent grants the person making the application the exclusive rights to an invention.

Question 25

How long is a patent’s limited period?

Answer 25

20 years

Question 26

What is a trademark?

Answer 26

A trademark is a brand name, slogan, or logo that identifies the services or goods of a business from the goods and services offered by another business.

Question 27

How long is a trademark’s limited period?

Answer 27

10 years.

Question 28

What is a copyright?

Answer 28

A copyright is an exclusive right granted to a creator for their original work.

Question 29

What are some ways that businesses can uplift their communities?

Answer 29

• Employing local staff, especially those within the immediate community of the business.
• Doing pro bono work will assist people in need.
• Contribute to the development of the local business association.
• Support local entrepreneurs.

Question 30

What are some factors that contribute t unemployment?

Answer 30

• Lack of skills.
• Retrenchment due to poor economic conditions.
• Lack of job opportunities.

Question 31

What are the 4 categories of unemployment?

Answer 31

Cyclical unemployment – economic cycles (recessions) force businesses to retrench.
Seasonal unemployment – some jobs are just for a specific season and then the position becomes unavailable.
Structural unemployment – necessary to restructure the workplace because of new technology.
Frictional unemployment – there is always some movement of jobs.

Question 32

How can a business deal with and get ahead of ethical misconduct?

Answer 32

Businesses need to implement a code of conduct that promotes a healthy work environment and policies and procedures about behaviour and ethical misconduct in the workplace.