Various options are provided as possible answers to the following questions - NSC Economics - Question 1 - 2023 - 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 - 2023 - Paper 2
Step 1
1.1.1 The amount by which total cost increases when one extra product is produced is known as … cost.
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Answer
The correct answer is C. Marginal cost refers to the additional cost incurred when producing one more unit of a good or service.
Step 2
1.1.2 The process during which a business makes itself known to the public is known as …
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Answer
The correct answer is A. Advertising. This process aims to inform potential customers about products or services.
Step 3
1.1.3 When the business does not produce at the lowest possible cost, it is said to be … inefficient.
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Answer
The correct answer is A. Allocatively inefficiency occurs when resources are not used in a way that maximizes total benefit.
Step 4
1.1.4 In a perfect market normal profit is achieved when total revenue is equal to …
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Answer
The correct answer is D. Total cost. Normal profit occurs when total revenue covers total costs, including both fixed and variable costs.
Step 5
1.1.5 The prices set or controlled by government are called … prices.
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Answer
The correct answer is B. Administered prices, which are set by regulatory authorities rather than determined by free market forces.
Step 6
1.1.6 The activity of people travelling through South Africa using air, road, water or rail transport to get to another destination is known as … tourism.
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Answer
The correct answer is C. Inbound tourism, which refers to visitors traveling to a country from another country.
