Various options are provided as possible answers to the following questions - NSC Economics - Question 1 - 2021 - Paper 1
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 - 2021 - Paper 1
Step 1
1.1.1 Long-term financial instruments, such as shares, are traded in the … market.
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Answer
The correct answer is D. labour market as shares represent ownership in capital assets.
Step 2
1.1.2 Business cycles that are caused by changes in the construction industry that last for 15 to 20 years are called ... cycles.
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Answer
The correct answer is D. Kondratieff cycles, which are long-term cycles in economic activity.
Step 3
1.1.3 Transfer of ownership of entities from the private sector to the public sector is called ...
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Answer
The correct answer is A. privatisation. This refers to the process of transferring ownership to the public sector.
Step 4
1.1.4 Investment contracts that base their value on the underlying assets, such as currencies and commodities, are known as ...
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Answer
The correct answer is C. financial derivatives. These are contracts that derive their value from underlying market assets.
Step 5
1.1.5 The international organisation that reduces tariffs and other trade barriers to liberalise trade is called the ...
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Answer
The correct answer is A. World Bank. This institution works to reduce trade barriers and improve conditions for trade.
