Impact, challenges and solutions for socio-economic issues Flashcards
(33 cards)
What is the Gini coefficient?
It measures the distribution of income across a population of a country. If a country scores 0, they have perfect equality. If a country scores 1, they have perfect inequality.
Describe the 3 poverty thresholds/lines.
- The upper-bound poverty line (UBPL), which is the point at which individuals cannot sustain a lifestyle that is considered desirable in South Africa.
- The lower-bound poverty line (LBPL) is the threshold where individuals have to choose between food and important non-food items. In 2020, this was R785 ($47,04) per month.
The food poverty line (FPL) is the point at which individuals do not have sufficient money or access to resources to buy and consume enough food to supply them with minimum per-capita-per-day energy requirements for good health (about 2 100 calories). In 2020, this was R547 ($32,78) per month.
Describe the 3 poverty thresholds/lines.
- The upper-bound poverty line (UBPL), is where individuals cannot sustain a lifestyle that is considered desirable in South Africa. (R1183, 2020)
- The lower-bound poverty line (LBPL) is the threshold where individuals have to choose between food and important non-food items. (R785, 2020)
The food poverty line (FPL) is the point at which individuals do not have sufficient money to buy enough food for their minimum per-capita-per-day energy requirements for good health. (R547, 2020)
What is inflation?
Inflation is the rate at which the value of a country’s currency is falling.
Name the social factors that affect consumer behaviours and buying trends.
- Poverty.
- Unemployment.
- Education
- HIV/AIDS (SA is epicentre of this pandemic)
What are cultural factors that affect consumer behaviours and buying trends?
- Religion
- Language
What are demographics?
- It is the structure or make up of the population based on age, gender, racial groups, and geographic regions.
What is economic crime also known as?
White collar crime.
What is economic crime?
It is illegal acts committed by an individual or a group of individuals for an economic or financial advantage.
What are some examples of economic crime?
- Money laundering
- Identity theft
- Tax crimes
- Cybercrime
- Schemes and scams
What is ethical misconduct?
Ethical misconduct is any behaviour that does not follow the values and morals that are considered acceptable.
What are some examples of ethical misconduct in the workplace?
- Sexual harassment
- Corruption
- Mismanagement of funds
What are some examples of corruption?
- Bribery
- Theft
- Collusion
Name the occupations that are unable to find candidates due to lack of skills.
- Architect
- Data scientist
- Hydrologist
Why are natural resources considered a socioeconomic challenge?
- due to unavailability of natural resources.
- due to inefficiency in the use of resources.
- due to exhaustion of natural resources.
What is dumping?
Dumping is when an international company provides goods to a foreign market at a low price, harming the local competitors and market.
What is piracy?
Piracy is the unauthorised use or reproduction of another person’s original work for financial gain.
What is counterfeiting?
Counterfeiting is the reproduction of another person’s original work for financial gain. Counterfeit goods are reproduced to look as similar to the original as possible.
What is intellectual property?
It refers to something new or original that has been created, developed, or invented,
What are the 3 categories of Maslow’s hierarchy of needs?
- basic
- psychological
- self-fulfilment needs.
What does low income levels lead to?
- increase in shoplifting and robberies.
- negative effect on employee morale.
- low productivity, which will have a negative impact on business turnover.
What effect does inflation have?
- increase in costs of resources, machinery and production costs
- decrease in consumer spending due to decrease in purchasing power
What is retrenchment?
A form of dismissal due to the employer needing to cut costs, limit losses, or increase profits.
How is the business impacted by strikes?
- Loss of production.
- Loss of income due to lack of productivity.
- Investors may be deterred from investing due to strike action.
- Loss or damage to property if strikes become violent.
