Economics Paper 2.Final Exam Test 2026\2027.
Pareto efficiency
When it is impossible to increase the welfare of one without decreasing the welfare of
another.
Explicit costs
Actual expenditure of a business, e.g. wages and interest.
Normal profit
Occurs where average revenue is equal to average cost.
Heterogeneous
Products that differ, i.e. not similar.
Deflation
A sustained decline in the general price level over a period of time.
Command and control systems
Measures that ensure the maximum level of resources used, e.g. tons of fish caught.
Deforestation
Uncontrolled removal of vegetation in an unsustainable way.
Production price index
It is calculated on a basket of goods only.
Fixed
The cost that remains the same even if the output changes.
Perfect
A market structure where the individual firms are price-takers.
Marginal
The additional revenue earned when sales increase by one more unit.
Stagflation
Low growth, high unemployment and high inflation rates occur simultaneously.
Cultural/Paleo
The type of tourism where tourists come to South Africa to visit museums and art galleries.
Renewable
Resources that can be replaced or regenerated.
, Economics Paper 2.Final Exam Test 2026\2027.
Cartel/Collusion
Businesses in the same industry come to an agreement to determine quantities and prices.
Branding
Encourages people to buy new products from the same range.
Missing markets
It is incomplete because it cannot meet the demand for certain goods.
Cost-push inflation
It occurs when the price of raw materials increase.
Tourism industry
It is labour intensive and employs many skills.
Soil erosion
A consequence of deforestation.
Command and control measures
Involves setting maximum permitted levels of resource use.
Price leadership
An example of tacit collusion where a dominant firm will set the price and the others will
follow.
External cost / Negative externality
Costs paid by the consumer that are NOT included in the market price.
Short run / short term
The period in which the perfect competitor can make economic profit.
Administered / maximum / minimum
Prices on certain goods that are set or controlled by government, for example petrol.
Cultural tourism / paleo tourism
Tourists visiting museums, art galleries and areas that depict a certain lifestyle, for example
the Apartheid museum.
Air pollution / pollution / emissions
The release of harmful gases into the atmosphere.
Break-even point
Total revenue is equal to total cost.
Perfect market
Pareto efficiency
When it is impossible to increase the welfare of one without decreasing the welfare of
another.
Explicit costs
Actual expenditure of a business, e.g. wages and interest.
Normal profit
Occurs where average revenue is equal to average cost.
Heterogeneous
Products that differ, i.e. not similar.
Deflation
A sustained decline in the general price level over a period of time.
Command and control systems
Measures that ensure the maximum level of resources used, e.g. tons of fish caught.
Deforestation
Uncontrolled removal of vegetation in an unsustainable way.
Production price index
It is calculated on a basket of goods only.
Fixed
The cost that remains the same even if the output changes.
Perfect
A market structure where the individual firms are price-takers.
Marginal
The additional revenue earned when sales increase by one more unit.
Stagflation
Low growth, high unemployment and high inflation rates occur simultaneously.
Cultural/Paleo
The type of tourism where tourists come to South Africa to visit museums and art galleries.
Renewable
Resources that can be replaced or regenerated.
, Economics Paper 2.Final Exam Test 2026\2027.
Cartel/Collusion
Businesses in the same industry come to an agreement to determine quantities and prices.
Branding
Encourages people to buy new products from the same range.
Missing markets
It is incomplete because it cannot meet the demand for certain goods.
Cost-push inflation
It occurs when the price of raw materials increase.
Tourism industry
It is labour intensive and employs many skills.
Soil erosion
A consequence of deforestation.
Command and control measures
Involves setting maximum permitted levels of resource use.
Price leadership
An example of tacit collusion where a dominant firm will set the price and the others will
follow.
External cost / Negative externality
Costs paid by the consumer that are NOT included in the market price.
Short run / short term
The period in which the perfect competitor can make economic profit.
Administered / maximum / minimum
Prices on certain goods that are set or controlled by government, for example petrol.
Cultural tourism / paleo tourism
Tourists visiting museums, art galleries and areas that depict a certain lifestyle, for example
the Apartheid museum.
Air pollution / pollution / emissions
The release of harmful gases into the atmosphere.
Break-even point
Total revenue is equal to total cost.
Perfect market
