1.1 Various options are provided as possible answers to the following questions - NSC Economics - Question 1 - 2022 - 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 - 2022 - Paper 2
Step 1
1.1.1 A firm will shut down if it cannot cover the … costs.
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Answer
The correct answer is A: explicit costs. Explicit costs refer to direct payments made by a firm, which are necessary for it to operate.
Step 2
1.1.2 The demand curve that is relatively elastic relates to a … market.
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Answer
The correct answer is B: perfect market. In a perfect market, the demand curve is elastic because consumers can easily switch to substitutes.
Step 3
1.1.3 In the oligopoly market, the firm will make a/an … in the long run.
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Answer
The correct answer is A: normal profit. In the long run, firms in an oligopoly may earn normal profit due to the market's structure.
Step 4
1.1.4 When a business fails to produce the optimum output at the lowest possible cost, it is known as … inefficiency.
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Answer
The correct answer is A: productive inefficiency. This occurs when a firm is not operating at its lowest average cost.
Step 5
1.1.5 When the economy is experiencing a low growth, high unemployment and high inflation, it is called …
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Answer
The correct answer is B: stagnation. This condition describes an economy that is not growing but is facing inflation.
Step 6
1.1.6 Tourists who engage in activities in the natural environment of the place that they visit, is called … tourism.
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Answer
The correct answer is C: eco- tourism. Eco-tourism emphasizes responsible travel to natural areas.
Step 7
1.1.7 Measures taken to ensure that non-renewable resources are not threatened by extinction are known as …
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Answer
The correct answer is A: preservation. This involves efforts to safeguard such resources for future generations.
Step 8
1.1.8 The international agreement that manages the disposal of chemical waste is called the …
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Answer
The correct answer is A: Basel Convention. This treaty aims to reduce the movements of hazardous waste.
