QUESTIONS 1.
Provide the term for the following statements:
1.1
Businesses do not maximise output from the given inputs.
1.2
When businesses produce goods and services that consumers do not want.
(1)
(1)
2.
What is the effect on the market when suppliers under invest in their businesses?
(2)
3.
Why is price discrimination not possible under perfect market conditions?
(2)
4.
What are the consequences of negative externalities on society?
(2)
5.
Briefly describe the term rent seeking.
(2)
6.
Why is rent seeking bad for the economy?
(2)
7. How can an oligopoly cause market failure?
(8)
8.
Explain by means of a graph how government can intervene in the market using subsidies
as a means to increase output.
(10)
9.
Do research on Denel. Can Denel be regarded as a monopoly in South Africa?
(20)​