ECONOMICS PAPER 2 PRACTICE SET 2026
TESTED QUESTIONS AND ACCURATE
ANSWERS BUNDLED
●● Explicit costs.
Answer: Actual expenditure of a business, e.g. wages and interest.
●● Normal profit.
Answer: Occurs where average revenue is equal to average cost.
●● Heterogeneous.
Answer: Products that differ, i.e. not similar.
●● Deflation.
Answer: A sustained decline in the general price level over a period of
time.
●● Command and control systems.
Answer: Measures that ensure the maximum level of resources used, e.g.
tons of fish caught.
●● Deforestation.
, Answer: Uncontrolled removal of vegetation in an unsustainable way.
●● Production price index.
Answer: It is calculated on a basket of goods only.
●● Fixed.
Answer: The cost that remains the same even if the output changes.
●● Perfect.
Answer: A market structure where the individual firms are price-takers.
●● Marginal.
Answer: The additional revenue earned when sales increase by one more
unit.
●● Stagflation.
Answer: Low growth, high unemployment and high inflation rates occur
simultaneously.
●● Cultural/Paleo.
Answer: The type of tourism where tourists come to South Africa to visit
museums and art galleries.
TESTED QUESTIONS AND ACCURATE
ANSWERS BUNDLED
●● Explicit costs.
Answer: Actual expenditure of a business, e.g. wages and interest.
●● Normal profit.
Answer: Occurs where average revenue is equal to average cost.
●● Heterogeneous.
Answer: Products that differ, i.e. not similar.
●● Deflation.
Answer: A sustained decline in the general price level over a period of
time.
●● Command and control systems.
Answer: Measures that ensure the maximum level of resources used, e.g.
tons of fish caught.
●● Deforestation.
, Answer: Uncontrolled removal of vegetation in an unsustainable way.
●● Production price index.
Answer: It is calculated on a basket of goods only.
●● Fixed.
Answer: The cost that remains the same even if the output changes.
●● Perfect.
Answer: A market structure where the individual firms are price-takers.
●● Marginal.
Answer: The additional revenue earned when sales increase by one more
unit.
●● Stagflation.
Answer: Low growth, high unemployment and high inflation rates occur
simultaneously.
●● Cultural/Paleo.
Answer: The type of tourism where tourists come to South Africa to visit
museums and art galleries.
