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1. Explain why an investor would want to invest in financial assets as opposed to investing in real assets

1. Explain the benefits of investing in financial assets?

Structural unemployment is best defined as unemployment caused by:





a.




A long-term decline in a particular industry





b.




A mismatch between available jobs and the unemployed





c.




Defects in the industrial and commercial structure





d.




A switch from labor-intensive to capital-intensive production methods

Christopher owns a large bicycle store and is planning his first business trip to Italy to source new suppliers. As it is his first trip abroad, he decides to make use of the travel agency that owns the space next to his store. The travel agency books his flight on Emirates airline and also books his hotel for him. The travel agency is a ________, which is part of Emirates’ _________ environment.


Select one:



a.


supplier; international



b.


agent; market



c.


retailer; market



d.


intermediary; market

Kulula decides to conduct environment scanning by updating relevant secondary or published information which they obtain from the organisation’s own database. Which form of elementary scanning is being applied?


Select one:



a.


Scanning in the most elementary form



b.


Scanning at the most advanced level



c.


Scanning at an external level



d.


Scanning at intermediate level

The facilities, labour, raw materials and processing requirements would be included in the ___________ of the business plan.


Select one:



a.


general company description



b.


management plan



c.


operating plan



d.


marketing plan

Which one of the following is NOT an effect of

higher inflation?

O a. An increase in the cost of living.

O b. An increase in the standard of living.

O c. Redistribution of wealth from the lender to

the borrower.

O d. A decrease of the real value of existing

savings.

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In response to the COVID-19 pandemic, countries

injected trillions of dollars into their economies to

provide relief to households and firms. This

response is an example of …. policy, which can

result in ... inflation, ceteris paribus.

O a. expansionary; demand-pull

O b. expansionary; cost-push

O c. contractionary; cost-push

O d. contractionary; demand-pull


The appropriate policy to combat cost-push

inflation would be to increase

illustrated by

which will be

O a. interest rates; leftward shift of the aggregate

demand curve

O b. government spending; rightward shift of the

aggregate demand curve

O c. productivity; rightward shift of the

aggregate supply curve

O d. wages; leftward shift of the aggregate

supply curve


A depreciation of the rand may have inflationary

consequences in South Africa because it.

O a. Increases the costs of exports.

O b. Discourages savings.

O c. Increases the costs of imported goods.

O d. Discourages exports.