CURRI

CULUM GRADE10-
12DI
RECTORATE

NCS(
CAPS)

TEACHERSUPPORTDOCUMENT

GRADE11

CSSTEPAHEAD
ECONOMI

PROGRAMME
2023
PREFACE
Thi
ssuppor
tdoc
uments
ervest
oas
sis
tEc
onomi
csl
ear
ner
s

1
 onhow t odealwi thcurricul
um gapsandl ear
ningl osses
bec aus e oft he i mpac tofCOVI D-19 in 2020. I tal so
capt ures the c hallenging topic
si nt he Grade 10 wor k.
Ac t
iviti
ess houlds er veasagui deonhowvar i
oustopi csare
asses sed at di fferent cogniti
ve levels and pr eparing
learnersf orinfor malandf ormaltas
ksi nEconomi c
s .I
twi l
l
covert hef ol
lowi ngt opics
:
PAGE
No. TOPIC

3-
15
1. Rel
ati
ons
hipBet
weenMar
ket
s

16-
20
2. Ef
fec
tCos
tandRevenue

21-
26
3. Pr
iceEl
ast
ici
tyofDemandandSuppl
y

27-
35
4. Ec
onomi
cGr
owt
h

36-
42
5. Ec
onomi
cDevel
opment

43-
51
6. MoneyandBanki
ng

52-
60
7. Gl
obal
i
sat
ion

61-
69
8. Envi
ronment

TOPI
C5:RELATI
ONSHI
PBETWEENMARKETS

2
RELATI
VEPRI
CES
WEEK 3-4
TOPI
C Rel
ati
ons
hipbet
weenmar
ket
s
WEI
GHTI
NG
SUB-TOPIC/ Rel
ati
vepric
es
CLARIFI
CATI
ON
RELATED CONCEPTS/ Bri
efl
yexpl
ainr
elat
ivepr
ices
TERMS/VOCABULARY
PRIOR-KNOWLEDGE/ Ci
rcul
arfl
owmodel.
BACKGROUND
KNOWLEDGE
RESOURCES

● Textbookandwor
kbooks
● Newspaper
s
● Pr
evi
ousques
tionpaper
s
● Pos
ter
swi
thdr
awi
ngsi
nthenot
iceboar
d
● Chal
kboar
d
● Text
books
● Exami
nat
iongui
del
i
ne
● Newsbul
l
eti
n
● I
nter
net
ERRORS/
MISCONCEPTI
ONS/
PROBLEM AREAS

● Absol
uteandrel
ati
vepr
ice
METHODOLOGY
● Groupdis
cuss
ions
● Wor
kingi
npai
rs
● Expl
anat
ionsbyeduc
ator
s(nar
rat
ion)
● Ques
tionandans
wermet
hod
● Peerexpl
anat
ion
● Combi
nat
ionoft
heabovemet
hods

ASSESSMENT Cl
asswor
k
Homewor
k
Cl
asst
est

ACTI
VITI
ES 06ac
tivi
ti
es(
eas
y,aver
ageanddi
ff
icul
t)
Relati
vepric
ei st hepri
c eofaproductcomparedtoanot herproduc t
.It
’sexpr es
sedasa
rati
obet weent hepr icesoftwopr oduct
sors er
vices.Toobt ainar elati
vepr i
ceofa
product,di
videt hepri
ceofonepr oductbyanother.Letustakec of
fee,forexample.At
all
cupofc appuccinoc os
tsR5,whil
eonec upofcoffeewi t
halmondmi l
kcos tsR10.
R10/R5=2: 1

3
Her eisaf ormulat ocalculatear elat
ivepr iceforthegoodsyouneed:
Pr=Px/ Py
Wher e;
Pri sar elati
vepr ic
e.
Pxi sthepr i
ceofaf i
rstproduc t.
Pyi sthepr i
ceofas econdpr oduct.
Thisr atioindicatesthati nsteadofbuyi ngac upofc of f
eef orR10,youcouldbuyt wot al
l
cupsofc appuc c i
no.
Let ’
st akeanot herexampl ewher et het wogoodswi l
lbehous esandapartment s.For
i
ns tance,t herei sanincreas eint hepr i
ceofhous esc ompar edtoapart
mentr ents,which
mighti ndi catethathous esar eingr eatdemandnow.Tomeett hedemandandobt ai
nt he
highes tpr ofi
t,adevel operwoul dwi t hdraw fundsf rom theapar tmentconst
ructionand
relocatet hem t othebui l
dingofhous es.Asar esult,therewi l
lbemor ehous est han
apar t
ment s.
Let ’
si magi net hatthepr i
c eofapar t ment sisdec l
i
ni ng.Itmi ghtbetheoutc omeofan
over s
uppl yofapar tmentuni ts.Asar esult,devel
oper swoul dbui l
dfewerapar
t mentsand
cons i
deral l
ocatingresour cestobui l
dinghous es.

Tosum i
tup,arel
ati
vepricei
scruci
alasi
thelpscompani
esal
locat
eresour
cesi
nt heri
ght
wayandrecei
vethehighestr
evenue.Bes
ides
,ital
lowsyout
oc omparethepr
icesandset
pr
efer
encesaboutspeci
fi
cproduct
s.

DEMANDANDSUPLYRELATIONSHIP
Rel
ati
ons
hipbet
weenpr
oductandf
actormar
ket
WEEK 3-4
TOPI
C Rel
ati
ons
hipbet
weenmar
ket
s
WEI
GHTI
NG
SUB-TOPIC/ Br
iefl
ydisc
usst
her
elat
ions
hipbet
weenpr
oduc
tandf
act
or
CLARIFI
CATI
ON markets
RELATED CONCEPTS/ Pr
oductandfac
tormar
ket
TERMS/VOCABULARY
PRIOR-KNOWLEDGE/ Ci
rcul
arf
low.
BACKGROUND
KNOWLEDGE
RESOURCES

● Text
bookandwor
kbooks
● Newspaper
s
● Pr
evi
ousques
tionpaper
s
● Pos
ter
swi
thdr
awi
ngsi
nthenot
iceboar
d
● Chal
kboar
d
● Text
books
● Exami
nat
iongui
del
i
ne
● Newsbul
l
eti
n

4
 ● I
nter
net

ERRORS/
MISCONCEPTI
ONS/
PROBLEM AREAS

● Dif
fer
enc
ebet weenpr
oduc
tandf
act
ormar
ket
.
METHODOLOGY
● Groupdi
scus
sions
● Wor
kingi
npai
rs
● Expl
anat
ionsbyeduc
ator
s(nar
rat
ion)
● Ques
tionandans
wermet
hod
● Peerexpl
anat
ion
● Combi
nat
ionoft
heabovemethods
ASSESSMENT Cl
asswor
k
Homewor
k
Cl
asst
est

ACTI
VITI
ES 06ac
tivi
ti
es(
eas
y,aver
age,anddi
ff
icul
t)

SUBSTI
TUTESANDCOMPLEMENTS
WEEK 3-4
TOPI
C Demandands
uppl
yrel
ati
ons
hip
WEI
GHTI
NG
SUB-TOPIC/ Disc
ussindetai
lthedemandandsuppl
yrelat
ionshi
pswi
th
CLARIFI
CATI
ON theaidofgr
aphs(subst
it
utesandc
omplements)
.
RELATED CONCEPTS/ Pr
oduc
tandf
act
ormar
ket
TERMS/VOCABULARY

PRI
OR-KNOWLEDGE/ Demandands
uppl
y.
BACKGROUND
KNOWLEDGE
RESOURCES

5
 ● Text
bookandwor
kbooks
● Newspaper
s
● Pr
evi
ousques
tionpaper
s
● Pos
ter
swi
thdr
awi
ngsi
nthenot
iceboar
d
● Chal
kboar
d
● Text
books
● Exami
nat
iongui
del
i
ne
● Newsbul
l
eti
n
● I
nter
net
ERRORS/
MISCONCEPTI
ONS/
PROBLEM AREAS

● Di
ff
erenc
ebet
weens
ubs
tit
utesandc
ompl
ement
s.

METHODOLOGY
● Groupdi
scus
sions
● Wor
kingi
npai
rs
● Expl
anat
ionsbyeduc
ator
s(nar
rat
ion)
● Ques
tionandans
wermet
hod
● Peerexpl
anat
ion
● Combi
nat
ionoft
heabovemethods
ASSESSMENT Cl
asswor
k
Homeworks
Cl
asst
est

ACTI
VITI
ES 06ac
tivi
ti
es(
eas
y,aver
age,anddi
ff
icul
t)

ACTIVI
TY:1
1.1MULTIPLECHOI CE
1.1.
1Thepr i
cequotedforaproduc
tandas
ignalt
obuyer
sofwhatt
heyar
eexpec
ted
topay…..
A.Elast
ici
ty
B.Ceteri
sparibus
C.Oppor t
unit
yc os
t
D.Absolutecost

1.
1.2Amar
ketwherepr
ohibit
edgoodsar
eexc
hangedi
sknownas…….
A.Goods
B.Factor
C.Blackmarket
D.Capi
tal

1.
1.3Thepri
ceofonegoodexpr
ess
edi
nter
msofanot
her
…..
A.nominal

6
 B.i
ndex
C.percentage
D.rel
ativepri
ce
1.
1.4 Thesacri
fi
cet
hatmustbemadeofonei
tem i
nfavourofanot
her
,bec
aus
eof
sc
arci
ty,i
sknownas…
A.opport
uni
tycost
s.
B.scarci
tycosts
.
C.costofli
ving.
D.standardcosts. 4x2
(
8)

1.
2 Choos eades cri
ptionf rom COLUMNBt hatmatchestheit
em inCOLUMNA.Wr i
te
onlythel etter(A-G)nextt ot heques t
ionnumber(1.2.
1–1.2.4)inthe ANSWER
BOOK.
1.
2.1 Thedemandr elati
ons hipbet weengoodst hatareus edi nconjuncti
onwi th
eachot her.Compl ement arygoods
1.
2.2 Thepr iceofagoodors ervi
ce,intermsofanothergoodors ervi
ce.
rel
ativepr ic
es
1.
2.3 Ther espons i
venes soft hequant i
tysuppl
iedofapr oduc ttoac hangeinits
pr
ice.
pri
c eelas t
ici
tyofs upply
1.
2.4. Thes egoodst hatc anbeus edinplaceofanothergood.
Substit
ut egoods 4x1
( 4)
ACTIVI
TY2
2.
1 St udythegr aphsbel owandans werthequesti
onsthatfol
low.

Pr
ice
Pr
ice
D1 S
D
S1 D
S R10
R15
R5
R10
D1
S1 S
D D
S
Quant
it
y
0 120 160 Quant
it
y
0 100 150
Tea
Cof
fee

2.
1.1 I
dent
if
ythequant
it
ydemandedf
ort
ea?

7
(1)
 40units
2.1.
2 Whatt ypegoodsisrepresentedinthegraphabove?
(1)
 Substi
tutegoods
2.1.
3 Bri
efl
ydes cr
ibet
het ermc omplementar
ygoods .
(2)
 I
trefer
st othegoodsthatc anbeus edtoget
hertos at
isf
ytheneedsoft
he
consumer.
 Thegoodst hatcanbejointl
yc onsumedtosati
sfytheneedsofthecons
umer
.

(Acc
eptanyotherc or
rec
tandr elevantresponse)
2.
1.4 Expl
aintheimpactofanincreas eincoffeepricei
nt heteamarket
.
(
2)
 I
tcausesanincreasei
nthequant it
ydemandedoft ea.
 Thepric
eforteaendsupi ncreasingasar esultoftheincr
eas
ei ndemand.
(Acc
eptanyotherc or
rec
tandr elevantresponse)
2.1.
5 Howdoest hefactormarketrelatewi t
hgoodsmar ket?
(4)
 Lessfactorsofproducti
onsuchaslabourwil
lberequi
redtopr
oducecoff
eeasa
res
ultofdec reasei
ndemandf orcoff
eeinthemarket.
 Theinc r
easeindemandf orteameansmor efac
torsofpr
oduct
ionwi
llbeneeded
toincreaseoutput.
(Acceptanyot hercor
rectandrel
evantres
ponse)

ACTI
VITY3
3.
1 St udyt
heextr
actbel
owandans
wert
heques
tionst
hatf
oll
ow.
.
Ai
rcondi
ti
oner Cool
er

Pr
ice Quant
it
ydemanded Pr
ice Quant
it
ydemanded

R22000 100 R13000 200

R28000 60 R13000 500

3.1.
1 I
dentif
yt herelat
ionshi
pbetweent hepri
ceandquantit
yofcomplementar
ygood?
(1)
 Negati
ve
3.1.
2 NameanyONEexampl eofapairofsubst
it
utegoods.
(1)
 Butt
erandmar garine
 Beefandmut t
on
 Coff
eeandt ea
3.1.
3 Bri
efl
ydes cr
ibethet ermsubs
tit
utegoods . (
2)
 I
trefer
st ogoodst hatcanbeusedt orepl
aceothergoodsorbeusedinplac
eof

8
 anothergood.
(Acceptanyot herc orrectandr el evantr es ponse)
3.
1.4 Whywoul dt hei ncr easeint hepr i
ceoft hes ubstit
utegoodl ikebutterc
ausean
i
nc r
easei nthedemandofmar gar i
ne?
(2)
Substi
tutegoodss at i
sfythes i
mi larors ameneedsi foneproduc tbecomesmore
expensive,c ons umer scanr epl
ac et hispr oduc twithas ubsti
tute.
(Acceptanyot herc orrectandr el evantr es ponse)
3.
1.5 Howdoest hepr oduc tmar ketrel atet ot hef act
ormar ket?
4)
 Productmar ketc annotexi stwithoutt hef actormar ket
.
 Anincreas eingoodsands ervi
c esi nthepr oduc tmarketwillleadtoaninc
reas
ein
demandf orf ac t
orsofpr oduc t
ioni nt hef ac t
ormar ket.
 Factorsofpr oduc t
ioni nt hefac tormar ketar eonlyvaluablewhent heyare
neededf orpr oduc tionpur posesi nt hepr oductmar ket.
(Acceptanyot herc orrectandr el evantr es ponse)

ACTI
VITY4
4.
1 St
udythegraphsbel
owandans
wert
heques
tionst
hatf
oll
ow.

Mar
ketforiPhone
Mar
ketf
ori
Phones Chargers
Pr
ice
Pr
ice

D
S D S
R15000

R11000 e
R11000 e

S D S
D

0 150 250 0 250 Quant

it
y
Quant
it
y

4.1.
1 I
dentif
yt hekindofgoodsr epresentedbygraphsabove?
(1)
 Complement arygoods.
4.1.
2 Namet heor i
ginalmarketpri
ceforiPhoneinthegraphabove
(1)
 R11000.
4.1.
3 Bri
efl
ydes cri
bet het m el
er ast
icdemand.
(2)
 Anelasticdemandi soneinwhi c
ht hechangeinquanti
tydemandedduet
oa
changeinpr i
ceislarge

9
 (Ac
ceptanyothercorr
ectandrel
evantr
esponse)
4.
1.4 Whywillt
hedemandf ori-
Phonechangeifthepr
iceofi
-Phonesdecr
eases?
(2)
 Thedemandforchargerswil
li
ncr
easebecausemorepeopl
ewi l
lbuyi
-Phones.

(Acceptanyot herc or
rectandr el
evantr esponse)
4.
1.5 Howdoest hec oeffi
ci
entof0, 8impac tthedemandel asti
ci
tyfort
heiPhone?
(4)
 Thei- Phonewillhavear elat
iveinelas
ticdemandbec aus
et heco-ef
fi
ci
entis
smallerthan1.
 Thedemandf ort hei-Phonewi l
lnotdr ast
icall
ychangewhent her
eisac hangei
n
pri
ce.
(Acceptanyot herc or
rectandr el
evantr esponse)
4.
2 Wi tht heaidofaneat lylabell
edgr aphsexpl ai
ntheimpactoflandshort
ageonthe
produc ti
onoffood.
(8)

Shor
tageof
FoodPr
oduc
tion
Pr
ice
D S
S1
D
S
I
nresponseto
R
s
hortagefi
rms
i
ncr
eas epr
ice. R20
R20
S S1
D D
S
Quant
it Shorta
ge Quant
it
y
0 1 20 3 0
 Whent hereisas hortageofland,t hes upply(producti
on)offo2
odwil3
ldecreaseas
indi
catedbyas hiftoft hesuppl
yc ur vefrom SSt oS1S1.
 Thisisbecausel andist henaturalres ourceneededinor dert
opr oduce
agricul
tur
alpr oduc t
swhi chinturni sneededf orfoodpr oduc
tion.
 Becauseoft hedec r
eas einsupply,ther ewil
lbeani ncreasei
npr i
cefrom R20t oR
40.
(Acceptanyot herc orrectandrelevantr esponse)

ACTI
VITY5
5.
1 St
udythegraphsandans
wert
heques
tionst
hatf
oll
ow.

10
5.1.
1 Identi
fyt hepr i
c es etterint hegr aphsabove.
(1)
 Thei ndus try
5.1.
2 Namet hemar ketpr i
ceint hegr aphsabove.
(1)
 R30
5.1.
3 Briefl
yexpl aint het erm aver ager evenue.
(2)
 Iti sther evenuet hati sear nedperuni tofout put.
(Acceptanyot herc orrec tandr elevantr espons e)
5.1.
4 Whatwoul dbet hei mpac tont hemar ketifmanyf irmsleavet hisindus tr
y?
(2)
 Whenf irmsl eavet hemar kett hemar kets upplycurvewi llshifttot heleft
andr educ equant itys uppl ied,pr i
cewi llber educed.
(Acceptanyot herc orrec tandr elevantr espons e)
5.1.
5 Howi st hepr iceofaper fectmar keti nfl
uenc edi nt helongr un?( 2x2)
(4)
 Ec onomi cpr ofit
sat trac tnewent r
ant sintot hemar ketwhi chwi l
lincr
eas e
themar kets upplyt husl ower i
ngi tspr i
c e
 Thei ndividualf i
rmi sapr i
cet aker ,andt hel owerpr i
cewi llwipeout
economi cpr ofit
sunt ilthepr ic
e( aver ager evenue)wi llbeequalt oaver age
cos t
 Thel ongr unequi li
br i
um pos iti
oni swher enor malprof i
twi l
lpr evail
(Acceptanyot herc orrec tr el
evantr espons e)
ACTIVI
TY6
6.1 Studyt hegr aphandans wert heques tionst hatfollow.

11
6.1.
1 I
denti
fythemarketst
ruc
tureabove. (
1)
 Per
fectmarket
6.1.
2 Whatisthecostoft
heproducti
nt hegr
aphabove?
(1)
 R3
6.1.
3 Bri
eflydescribet heterm marginalcost.
(2)
 Additi
onalc ostincurredwhenonemor eunitofapr oductispr
oduced.
(Acceptanyot herc orrectandrelevantresponse)
6.
1.4 Whyi sthemar ginalrevenuecurve(MR)i ntheperfectmarketthesameast he
demandc urve?
(2)
 Eachaddi ti
onaluni twouldbes oldatthes amepr i
cewhi chist
hehoriz
ontal
demandc urve
(Acceptanyot herc orrectandrelevantresponse)
6.
1.5 Determinewhet herthisbusinessmakesanor mal
/ec onomicprof
itoralos
s.
ShowALLc alc
ulations.
(4)
 TR–TC
 (PxQ)–( CxQ)
 (R4x70) –( R3x70)
 R280–R210
 R70

MARKETSTRUCTURE:PERFECTANDI
MPERFECT
WEEK 3-4
TOPI
C Rel
ati
ons
hipbet
weenmar
ket
s
WEI
GHTI
NG
SUB-TOPIC/ Di
scus
si n detai
lthe c
har
act
eri
sti
cs of per
fec
t and
CLARIFI
CATI
ON i
mperf
ectmarket
s

12
RELATED CONCEPTS/ Per
fec
tmar
ketandmonopol
y.
TERMS/VOCABULARY

PRI
OR-KNOWLEDGE/ Mar
kets
truc
tur
es:Per
fec
tandi
mper
fec
tmar
ket
s.
BACKGROUND
KNOWLEDGE
RESOURCES

● Text
bookandwor
kbooks
● Newspaper
s
● Pr
evi
ousques
tionpaper
s
● Pos
ter
swi
thdr
awi
ngsi
nthenot
iceboar
d
● Chal
kboar
d
● Text
books
● Exami
nat
iongui
del
i
ne
● Newsbul
l
eti
n
● I
nter
net
ERRORS/
MISCONCEPTI
ONS/
PROBLEM AREAS

● Di
ff
erenc
ebet
weenper
fec
tandi
mper
fec
tmar
ket
.

METHODOLOGY
● Groupdi
scus
sions
● Wor
kingi
npai
rs
● Expl
anat
ionsbyeduc
ator
s(nar
rat
ion)
● Ques
tionandans
wermet
hod
● Peerexpl
anat
ion
● Combi
nat
ionoft
heabovemet
hods

ASSESSMENT Cl
asswor
k
Homewor
k
Cl
asst
est

ACTI
VITI
ES 06ac
tivi
ti
es(
eas
y,aver
age,anddi
ff
icul
t)

ACTIVI
TY1
1.
1 Var i
ousopti
onsareprovidedaspos si
bleanswer
st othefol
l
owingques t
ions.
Choosethe answerand write onl
yt he l
ett
er(A–D)nextt othe questi
on
number.
1.
1.1 Thetwolar
gef i
rmsdominati
nganol i
gopoli
stmarketi
sknownasa….
A Duopoly
B Pureoli
gopol
y

13
 C Monopol
y
D Per
fec
tmarket

1.
1.2 Manyf
irmssell
i
nghet erogeneouspr
oduc
tsar
eref
err
edt
oas…
A Monopolies.
B ol
igopol
ies.
C monopolist
iccompetit
ion.
D perf
ectcompet i
ti
on.

1.
1.3 Thedemandc urveforamonopol
i
sti
ccompet
it
ioni
s..
.
A hori
zontal.
B ver
tical.
C downwar d-sl
oping.
D upwar d-sl
oping. 3X2(
6)

1.
2 Chooseadesc
ript
ionfr
om COLUMNBt hatmatchest
hei
tem inCOLUMNA.
Writ
eonlyt
helett
er(A-G)nextt
othequest
ionnumber(
1.2.
1–1.2.
5)i
n
theANSWERBOOK.

COLUMNA COLUMNB

1.
2.1Pr
icemakerF A A mar
ketstr
uc t
urethats
ell
sauni
quepr
oduc
t
wi
thnoclos
es ubst
it
ute

1.
2.2Pat
entD B Fewl
arges
ell
ersdomi
nat
ingt
hemar
ket
.

1.
2.3Longt
ermE C Goodsands
ervi
cesar
etr
aded.

1.
2.4Ol
i
gopol
yB D I
tgives t
he producerthe sol
eri
ghtt
o be a
pr
oducerapar
ti
c ul
arproduc
t

1.
2.5Monopol
i
esA E Per
iodl
ongenought
ochangeal
lthei
nput
s.

F Theabi
l
ityofaf
ir
mtoc
ont
rolands
ett
hemar
ket
pri
ce

G Legalbar
ri
ert
oent
ry.

5X1 ( 5)
1.
3 Gi veonet er
mf oreac hofthef oll
owingdes c
ript
ions.Writ
eonl yt
heter
m nextto
theques t
ionnumber( 1.3.
1–1. 3.5)
1.
3.1 Aper i
odwher ebyonl yonefac torofproducti
onc anbevar i
ed.
Shortrun
1.
3.2 Demandc ur
veforanol igopoly.
kinkeddemandc urve
1.
3.3 Whenf ir
msdobr andi ng,advertisi
ng,productdi
fferent
iat
ion,ext
endshopping
hours.
Nonpr i
cecompet i
tion

14
1.
3.4 A pl atform wherethe quant i
ti
es and pric
es of pr
oduct
ion input
s ar
e
negotiated.
Market
1.
3.5 Pr oduc t
sthatar
enotidenti
calt
oot hers
imil
aronesandhaves
light
dif
ferences.
Heterogeneous
5X1 ( 5)
ACTIVITY2
2.
1St udythegr aphandans
wert hequesti
onsthatfol
low

2.
1.1 Ident i
fyt henat ureofdemandc urvei nt hegr aphabove? (
1)
 Hor i
z ontaldemandc urve
2.
1.2 Namet het ypeofpr ofitisindicatedi nt heabovegr aph? (
1)
 Nor malpr of it
2.
1.3 Br i
ef l
yexpl aint het er m economi cpr ofi
t (
2)
 Thedi ff
er enc ebet weent her evenuer ec ei
vedf rom salesandt heexpl i
ci
tc ost
sof
produc i
ngi tsgoodsands ervices,aswel lasanyoppor tunit
yc osts
2.
1.4 Whymus tmar gi nalc ostbeequalt omar ginalr evenuef orthepr of i
ttobe
maximi
zed? (
2)
 Whent hemar gi nalrevenuei sgr eatert hant hemar ginalcost(MR>MC) ,the
busines swi llexpandi t
sout put.Thisisbec aus et heprofitofthebus i
nes sis
increas i
ng;t hebenef it
sofaddi nganext rauni tar emor ethant hec os tof
produc i
ngi t.
 Whenmar ginalr evenuei sles sthanmar gi
nalc os t(MR<MC) ,thebus ines swi
ll
reduc ei tsout put .Thisi sbec auset hebenef it
sofaddi nganext rauni tareless
thant hec os ts.i.e.,t
hepr ofitoft hebus i
nes sisdec r
eas i
ng.
 Whent hemar gi nalrevenuei sequalt omar gi
nalc ost(MR=MC) ,thebus inesswil
l
havet odec i
det os t
opaddi nganaddi t
ionaluni tofapr oductbec auset heprofi
tis
maxi mi zed.
(Acc eptanyot herc or r
ec trelevantr espons e)

2.1.
5Howisthel ong-r
unequil
ibr
ium achi
evedintheabovemarket?
(4)
 Economi cprofi
tsatt
rac
tnewent rantsi
ntothemarketwhi
chwi l
li
ncr
easethe
mar
kets upplythusl
oweri
ngitsprice
 Theindividualf
irmisapri
cetaker,andthelowerpri
cewil
lwipeouteconomi
c

15
 prof
itsunt
ilt
hepr i
ce(aver
ager evenue)wi
llbeequalt
oaveragecost
 Thelongrunequili
bri
um posi
tioniswherenormalprof
itwi
l
lprevai
l
(Acc
eptanyot hercor
rectrel
evantrespons
e)

ACTI
VITY3
3.
1St
udytheext
rac
tbel
owandans
wert
hef
oll
owi
ngques
tions
:

THREEMONOPOLI
ESTHATSOUTHAFRI
CASHOULDEND

Enti
ti
est hatareprotectedbyl egisl
ati
ons uchaslicenc es,patentri
ght sand
copyr ight smorphintomonopol ies,resulti
ngi nli
mi tedc ompeti
ti
on.Ti me
andt i
meagai n,t
heselegislat
edmonopol iesbankont het axpayer’
srandst o
bailt hem out of t he r eperc
us s
ions of what s eems t o be c hronic
underper formance.Below isal i
stofi ndus tr
iesthatar eovershadowedby
stat
e- r
un monopol i
es that,ifder egulated and pr ivatised,willyieldf ar
greaterr etur
nstothec i
tiz
ensofSout hAf rica.
➢ Avi ation
➢ Ener gySupply
➢ Rai lways

www.
mg.
ca.
za

3.1.
1 Ident ifyONEoft het hrees tatemonopol i
esi mpliedi nt heextr
ac t (1)
 Es kom
 Pr asa
3.1.
2Nameonebar r
iertoent ryment ionedt heext ractabove?
(1)
 licenc es,pat entr i
ghtsandc opyr ights
3.1.
3Desc r
ibet het erm nat uralmonopol y. (2)
 Anat ur almonopol yisat ypeofmonopol yt hatexi ststypical
l
yduet othehigh
start-upc os tsorpower fulec onomi esofs caleofc onduc ti
ngabus i
nessina
spec i
ficindus trywhi chc anr esultinsignifi
cantbar rierstoentryforpotenti
al
compet it
or s
(Acceptanyot herc orrectr el
evantr es ponse)
3.1.
4 WhydoSout hAf r
icans tate-ownedmonopol iesf ailtomakeec onomi cprof
it?
(
2)
 Sout hAf ri
c a’sstate-ownedent erpriseshavec hallengesofmi smanagement ,
corrupt i
onandpol iti
calinterferenc ewhi chleadt ot hem notbeingmanaged
effectively
(Acceptanyot herc orrectr el
evantr es ponse)
3.1.
5Howdomonopol iesdi sadvant agec ons umer s
? (4)
 Monopol iesleadt opr i
cedi scriminati
onasc ons umer smaybec hargedexcessi
vely
highpr i
ces
 Cons umer smaybef orcedt obuyl owerqual i
tygoodsbec ausec onsumerchoiceis
verylimi t
ed

16
  Cons umersur
plusandeconomicwelfar
eisreduc
edwhi
chaf
fec
tcons
umer
soverei
gnty
(Acceptanyothercor
rec
trelevantr
esponse)

ACTI
VITY4
4.
1 St udyt
hef
oll
owi
ngi
nfor
mat
ionandans
wert
hef
oll
owi
ngi
nfor
mat
ion.

4.1.
1 Ident if
yt hepoi ntont hegr apht hatindicatesopti
mum produc t
ion
(1)
 Poi ntA.
4.1.
2 Pr ovideanot heral ternat i
venamef orARc urve.
(1)
 Demandc urve.
4.1.
3 Br iefl
ydes cr
ibet het er m deadwei ghtl os
s .
(2)
 Deadwei ghtl ossist hel osst os ociety/welfar
elosscr
eatedbyamonopol yasit
produc esl ess out putt hatitc anpr oduc e.
(Ac c
eptanyot herc orr ectrelevantr espons e)
4.1.
4 whyi st hemar ginalrevenuec urve( MR)wi llal
waysli
ebelowt heaver agerevenue
curve( AR)? ( 2)
 Thenegat ives lopingdemandc urvemeanst hatmoregoodsar es ol
datl owprices
;
henc eaddi ti
onalr evenuewi lldec reaseasmor egoodsaresold.
(Ac c
eptanyot herc orr ectrelevantr espons e)
4.1.
5 Cal culatet hepr ofitorl ossoft hi smar ket.ShowALLc al
culat
ions.
(4)
PROFIT/LOSS =(ARxQ)–( ACxQ) =(AR-AC)
xQ
=( R15X120) –( R9X120) or =(R15-R9) x
120
=R1800–R1080 =R6X120
=R720 Ec onomi cPr of i
t =R720
Economi cProfit.

ACTI
VITY5

17
 5.
1 St
udyt
heext
rac
tbel
owandans
wert
heques
tionst
hatf
oll
ow:

OLI
GOPOLI
ES

Af ew large oli
gopoli
es dominate an oli
gopol y market,and they sella
homogenous and di f
ferent
iat
ed pr oducts
,i .e. j
ust a f ew hand s et
manufacturi
ng companiesdomi natethe cel
lnet work ofSouth Afr
ica.The
productsaresimi
larandsoldbyaf ew c
ompani es.Moreover,t
heproduc t
sar e
brandedduet oext r
emec ompetiti
on,andbec aus etherearehugelong- t
erm
entry barr
iers
,t he companies make exor bitant profi
ts.The compet i
ng
companieshaveanunus ualint
erdependence,t ot hepointthattheyalmos t
operateinunis
on.

[Adaptedf rom Mar kit

ect
s./
co.z
a]
5.1.1 Ident i
fyanexampl eofanol igopol ymar ketint heextractabove
(1)
 Cel lnet wor kf i
rms
5.1.
2 Namet het ypeofapr oduc ts oldbyapur eoli
gopol y
(1)
 Homogenous
5.1.3 Br ieflydes cribet het ermc ar tel (2)
 Ac ar t
eli saf or malagr eementbet weengr oupsofpr oducersofagoodors ervi
ce
toc ont rols upplyort or egul ateormani pulat
epr i
ces.
(Acc eptanyot herc or r
ec trelevantr es pons e)
5.1.4Whydof irmsc oll
udewi thoneanot her ? (2)
 Fi r
msc olludet omakehi gherpr ofit
satt heexpens eofc onsumer sandreducethe
compet itivenes soft hemar ket .
(Acc eptanyot herc or r
ec trelevantr es pons e)
5.1.5 Howdoesbr andi ngas si
stol igopol iesgai nabi ggermar ketshar e.
(4)
 Whenac ustomerr ec ogni zesabr and’ sc ol
our ,theme,logo,et c.
,t heyaremore
l
ikelyt oc hoos et hatpr oduc toveral lother s.
 Onc eac ustomerbegi nst or ec ogniz eandbuyapr oductoras ervice,good
brandi ngwi l
lkeept hem c omi ngbac kf ormor e
 Ever yc us tomerhast heirtrus ti ss
ueswheneveri tcomest ot ryi
nganewpr oduct
ors ervice,however ,as t
rongbr andc anhel pyous etyourselfapar tasawel l
-
establishedbus ines swi t
hs tr ongval uest hatc ustomersc anres onat ewit
h.
(Acc eptanyot herc or r
ec trelevantr es pons e)

ACTI
VITY6
6.
1 St udyt
hepi
ctur
ebel
owandans
wert
heques
tionst
hatf
oll
ow.

18
COLLUSI
ONAMOUNGOLI
GOPOLI
ESATTHEEXPENSEOFCONSUMERS

6.1.
1 ident i
fythemar ketstructur er epres entedbyt heabovei l
l
us t
rati
on.
(1)
 Oligopoly
6.1.
2 Nameonebar riert oent ryint hismar ketstruct ure
(1)
 Highs t
art-upc os t
 Economi esofs c ale
 Gover nmentr egul ati
on
6.1.
3 Brieflydes cr
ibet heterm nonpr icecompet it
ion
(2)
 Nonpr ic
ec ompet i
ti
onr efer st oaf or m ofcompet it
ioninwhi chtwoormor e
produc ersus es uc hfactor saspac kaging,deliveryorc ustomers ervicerat
herthan
price.
(Acc eptanyot herc orrectr elevantr esponse)
6.1.
4 Whyi sitmor ebenef ici
alf orf i
rmst oc oll
udeins t
eadofengagi nginc ompeti
ti
on?
(2)
 Bec ausef i
rmsar eabl etol imi tcompet it
ionandmar ketunc ert
aintieswhic
h
ens uresthatt heymakehi gherpr ofits
(Acc eptanyot herc orrectr elevantr es ponse)
6.1.
5 Howdoesnonpr icestrategypos i
t i
velyimpac tol i
gopolies?
(4)
 Oligopoliesus enonpr i
c es trategiest ogai nmor ecustomer se.g.,by
Adver ti
sing

19
  Morer evenueandpr ofi
tgainedbyt hebus ines
swi thoutadjust
ingt hepr ic
e
 Employeesmaybet rai
nedmor ef orthem toimprovet heirs
ervi
cet ot heir
cust
omer s
 Oli
gopol i
esareregardedasi neff
ici
entbutwhent herear emorec ustomer s
demandi ngthepr oduct
,theywi l
lincreasetheproduc ti
onandt hatwi lll
eadto
bei
ngef fic
ient
(Acceptanyot hercorr
ectrelevantres pons
e)

ACTI
VITY7
7.
1St
udythepi
ctur
eandans
wert
heques
tionst
hatf
oll
ow

7.1.
1 I
dent i
fyt henon- pr i
cec ompet i
tionstrat egyi nthec ar
t oonabove/
(1)
 Newmenu/Pr oduc tdevel opment
7.1.
2 Whatki ndofpr ofitcant hes ec ompet itorsmakei nt hel ongr un?
(1)
 Nor malpr ofit
7.1.
3 Briefl
ydes c
r i
bet het erm pr oductdi fferent iati
on
(2)
 Produc tdifferentiationi st hec haracter i
s t
icorc har acteri
sticsthatmakeyour
produc tors ervices tandoutt oyourt ar getaudi enc e.
(Acceptanyot herc or r
ec tr el
evantr es pons e)
7.1.
4 Whyi st herei nterdependenc ybet weenol igopol i
es?
(2)
 Anol igopol ymar ket ,therei sas mal lnumberofbi gf ir
ms .Acc or
dingl
y,
therei sahi ghdegr eeofmut ualinter dependenc e,impl yi
ngt hatpric
eand
outputpol icyofonef irm hasas i
gni ficantimpac tont hepr iceandout put
poli
c yoft her i
valf i
rmsi nthemar ket .
(Acceptanyot herc orrec trelevantr espons e)
7.1.
5 Howc ant het womonopol isti
cc ompet i
tor sincreaset heirmar ketshare

20
(
2x2) (
4)
 Thef i
rmsc anadver ti
setheirproduc tasthebestsuchasput t
ingupabi g
bil
lboardinabus yhighway.
 Theymus tf oc usinbui
ldi
nganddevel opi
ngthei
rbrands othatcustomer
s
canas soc
iatewi t
htheproduc t,thi
sc anbedonet hr
oughappoi nti
nga
famousands uccess
fulbrandambas sador.
 Thef i
rmsmus tinvesti
npr oduc tdevelopmentandproli
ferat
ionwhi ch
meansof feringawi derangeofdi f
ferentproduc
ttoc at
erfordiff
erent
consumerneed.
(Acceptanyot hercorr
ectrelevantres ponse)

TOPI
C6:EFFECTSOFCOSTANDREVENUE
WEEK 3-4
TOPI
C Ef
fec
tsofc
ost
sandRevenue
WEI
GHTI
NG
SUB-TOPIC/ Obj
ect
ivesoft
hebus
ines
s,Shor
t-r
unc
ost
,Longr
unc
ost
s.
CLARIFI
CATI
ON
RELATED CONCEPTS/ Spec if
ic,Meas ur
able,Ac ceptable,Reali
sti
c,Times pecif
ic,
TERMS/VOCABULARY survival,economicl oss,ec onomi cprofi
t,l
ongr un,nor mal
profit,shortrun,Tot alProduc t/Output,MarginalProduc t
/
Out put,Aver age Produc t/Out put,Fi
xed costs,Var i
able
costs,Tot alcost
s,Mar gi
nalc os t
s,Averagec ost
s,Aver age
Fixed c ost
s, Average Var i
able c os
ts, Total revenue,
Mar ginalrevenue,Aver ager evenue
PRIOR-KNOWLEDGE/ Pricef ormati
on,c haracterist
icsofmar ketstruct
ures,pr i
ce
BACKGROUND elasti
c i
ty,Value,pr ice and ut il
it
y,Producti
on Pos sibil
i
ty
KNOWLEDGE curves .
RESOURCES

● Textbookandwor
kbooks
● Newspaper
s
● Pr
evi
ousques
tionpaper
s
● Pos
ter
swi
thdr
awi
ngsi
nthenot
iceboar
d
● Chal
kboar
d
● Text
books
● Exami
nat
iongui
del
i
ne
● Newsbul
l
eti
n
● I
nter
net
ERRORS/
MISCONCEPTI
ONS/
PROBLEM AREAS

21
 ● Di
ff
erenc
ebet
weens
hor
tandt
hel
ongr
un
● Int
erpr
etati
onofprof
it
sandl
oss
es
METHODOLOGY
● Groupdisc
us s
ions
● Wor
kingi
npai
rs
● Expl
anat
ionsbyeduc
ator
s(nar
rat
ion)
● Ques
tionandans
wermet
hod
● Peerexpl
anat
ion
● Combinat
ionoft
heabovemethods
ASSESSMENT Cl
asswork
Homework
Cl
asstes
t
ACTIVI
TIES 06act
ivi
ti
es(eas
y,aver
ageanddi
ff
icul
t)

ACTI
VITY1
1.
1 Studythet
abl
ebel
owandans
wert heques
tionst
hatf
oll
ow.
Output FC VC TC AVC MC

0 20 0 20 0 -

1 20 5 25 5 5

2 20 8 28 4 A

3 20 10 30 3.
3 2

4 20 16 36 4 6

1.1.
1 I
dent if
yt hec ostthatdoesnotc hangef rom t
het abl
eabove.
(1)
 FixedCos t
s
1.1.
2 Whati st het ot
alc ostofproduc i
ngt hef or
thunitofout put
?
(1)
 36
1.1.
3 Briefl
ydes c r
ibethet erm averagevar i
ablecosts.
(2)
 I
tr eferstot hecos tsthatchangesaspr oducti
onincreases.
(Acceptanyot herc orrectr
elevantrespons e)
1.1.
4 Explaint heimpac tofpr oduc i
ngt hethirdunitofout putonaver
agevar
iabl
ecos
t.
(
2)
 Var i
ablec ostdec r
eas estoitslowest.
 Thei mpac tisnegat ive,t
hereisadec l
i
nei naveragevar i
abl
ecost
.
(Acceptanyot herc orrectr
elevantrespons e)
1.1.
5 Calculatet hevalueofA.ShowALLyourc al
culat
ions
.
(4)

22
 ChangeinTC
ChangeinQuant i
tydemanded
28-25
2-1
3
1
3
ACTIVI
TY2
2.2 St udythetablebel
owandans wert
heques
tionst
hatf
oll
ow.
Pri
ce Quanti
ty TR TC Pr
ofi
t

10 0 0 25 -25

10 5 A 30 20

10 10 100 35 65

10 15 150 40 B

10 20 200 45 155

2.2.
1 I
dentif
yt hequant it
ieswher ethebus i
nessmaximisethehi
ghes
tprof
it
.
(1)
 200quant i
t i
es
2.2.
2 Whatisr epres entedbyt he–25i ntheprofi
tcolumn?
(1)
 AlossofR25.
2.2.
3 Bri
efl
ydes c r
ibet het ermt otalrevenue.
(2)
 I
tisthet otalincomer eceivedbyt hebusinessfr
om sell
i
nggoodsandser
vic
es.

(Acceptanyot hercor
rectrelevantrespons
e)
3.
2.4 Whyi sthereaval uef
ort ot
alc ostwhenproducti
on(quanti
ty)i
s0(z
ero)
?
(2)
 Therewi l
lalwaysbefixedcos tevenifnoproduct
iontakesplac
e.
 Fir
mss ti
llhavetopayt hesefixedcostsastheyarenotrel
atedtopr
oducti
onl
evel
.

(Ac
ceptanyothercorr
ectr
elevantr
espons
e)
2.2.
5 Cal
cul
atethevaluesofAandB.ShowALLc al
cul
ati
ons
.
(4)
 A= PxQ B= TR–TC
 R10x5 R150–40
 R50 R110

2.
3 Wit
hanaidofagraphhowdoest ot
alc
ost(
TC)andt
otalr
evenue(
TR)ac
hievepr
ofi
t
maxi
miz
ati
oninaperf
ectmarket
.
(8)

23
  Thef i
rm wil
lmakeprofit
sbet weenpoi nt
sAandB( TRandTC)wherethet
otal
revenueexceedsthetotalc ost.
 Profi
tismaximiz
edwhent hegapbet weenTRandTCi sthegreat
est
.
 Thisoccursat4unit
sofpr oduc ti
onatac ostofR40.
 Breakevenpointswil
loccuratpoi nt
sAandB.
(Acceptanyothercorrectrelevantr
esponse)

TOPI
C7 PRI
CEELASTI
CITYOFDEAMANDANDSUPPLY
WEEK 5–6

24
TOPI
C Pr
iceel
ast
ici
ty
WEI
GHTI
NG
SUB-TOPIC/ Obj
ect
ivesoft
hebus
ines
s,Shor
t-r
unc
ost
,Longr
unc
ost
s.
CLARIFI
CATI
ON
RELATED CONCEPTS/ DEMAND
TERMS/VOCABULARY Pri
ceel ast
ici
tyofdemand,Per fec
telasti
cdemand.El asti
c
demand
Unitar
y el ast
ici
ty demand, Inelast
ic demand, Per f
ect
i
nelasti
cdemand
Supply,Pri
ceelasti
ci
tyofsuppl
y,Factorsofproduc
tion
PRIOR-KNOWLEDGE/ Pri
cefor mati
on,,pri
ceel
asti
cit
y,Value,pri
ceandutil
it
y,.
BACKGROUND
KNOWLEDGE
RESOURCES

● Textbookandwor
kbooks
● Newspaper
s
● Pr
evi
ousques
tionpaper
s
● Pos
ter
swi
thdr
awi
ngsi
nthenot
iceboar
d
● Chal
kboar
d
● Text
books
● Exami
nat
iongui
del
i
ne
● Newsbul
l
eti
n
● I
nter
net
ERRORS/
MISCONCEPTI
ONS/
PROBLEM AREAS
 Normalgoods
 I
nferi
orgood
 Subst
itut
eproducts
 Complementarypr
oduc
ts
 Unrel
atedproduct
s

METHODOLOGY
● Groupdi
scus
sions
● Wor
kingi
npai
rs
● Expl
anat
ionsbyeduc
ator
s(nar
rat
ion)
● Ques
tionandans
wermet
hod
● Peerexpl
anat
ion
● Combi
nat
ionoft
heabovemet
hods

ASSESSMENT Cl
asswor
k
Homewor
k
Cl
asst
est

25
ACTI
VITI
ES 06ac
tivi
ti
es(
eas
y,aver
ageanddi
ff
icul
t)

ACTIVI
TY1
1.
1 Var i
ousopt i
onsar epr ovided aspos si
bleanswerstot hefoll
owing ques
tions
.
Chooset heans werandwr iteonlythelet
ter(A–D)nextt
ot hequest
ionnumber
1.
1.1 When t he per c entage c hange in quant it
y
suppl
iedi sgr eat erthant heper cent
agec hange
inpri
ceitrefer sto…
A. priceelas ticsupply
B. priceinelas ti
cs uppl
y
C. unitar
yel as t
ici
tyofs uppl
y
D. zeroelas ticit
yofs upply

1.
1.2 Thesi
tuationinwhi chthequanti
tyofagoodors ervic
ei sunaff
ectedwhent
he
pri
ceofthatgoodors ervi
cechangesi
sknownas……
A inelast
ic
B elasti
c
C elasti
cit
y
D uni t
aryelas
tic 2x2(4)
1.
2 Choos eades cri
pti
onf r
om COLUMNBt hatmat
chest heitem i
nCOLUMNA.Wr it
e
onl
ythel ett
er(A-I)nextt
otheques t
ionnumber(1.2.1–1.2.
10)inthe ANSWER
BOOK.
COLUMNA COLUMNB

1.
2.1 Rel
ati
ve el
ast
ic A Stat
est hatan incr
eas
ei n pr
icel
eadsto an i
ncr
easei
n
demandE quanti
tysuppli
edandadec r
easeinpr
icer
esul
tsi
nadec r
eas
e
i
nquant i
tysuppli
ed,

1.
2.2Thel
aw ofdemandD.B Thecos
tofpr oduc
ingoneext
raunitofout
put
,itc
anbe
f
oundbyc al
cul
atingthec
hangeint
otalcos
twhenoutputi
s
i
ncreas
edbyoneunit.

1.
2.3Mar
ginalc
ostB CIsaneconomictermrefer
ri
ngt othechangeinbehavi
our
t
hatbuyer
sands el
l
ershaveinres
ponset
oapr ic
echangefor
agoodorser
vic
e

1.
2.4El
ast
ici
tyC D Stat
est hatan i
ncreas
ein pric
er es
ult
sin a dec
reas
ei n
quanti
ty demanded and a dec
reasein pri
ceresul
tsin an
i
ncreasei
nquantit
ydemanded.

1.
2.5Thel
awofs
uppl
yA E Whent hepr
oport
ionat
echangeproduc
ed i
n demand i
s
gr
eatert
hanthepr
oporti
onat
echangei
npri
ceofapr
oduct

5x1(5)
1.
3 Provi
det heec onomi cterm/conceptforeachofthefol
l
owingdescri
pti
ons.Wr i
te
onlythet erm/ conceptnextt otheques t
ionnumber.Noabbrevi
ati
ons,acr
onyms
andexampl eswi l
lbeac cepted.
1.
3.1 Whent her eisnoc hangepr oducedinthedemandofapr oductwi
thchangeinits
pr
ice
perf
ectl
yi nelasti
cdemand
1.
3.2 Ac hangei npr i
cethatc ausesthesamec hangei
nquanti
tydemanded.

26
 Uni
tarypr
iceel
ast
icdemand 2x1(
2)
ACTI
VITY2
2.
1 St udythegr
aphsbelowandanswert
heques
tionst
hatf
oll
ow.

PRI
CEELASTI
CITYOFDEMAND

Pr
ice

R80

R
D

0 50 11 Quant
it
y

2.1.
1 Ident i
fythequant it
yofgoodsdemandedwhent hepr i
ceincreas
es .
(1)
 50
2.1.
2 Namet het ypeofpr iceelasti
c i
tyofdemanddepi c t
edi ntheabovegr aph.
(1)
 Rel ati
veelasti
cdemand.
2.1.
3 Br ief
lydescri
bet het erm perfectlyelast
icdemand.
(2)
 Itoc curswhendemanddoesnotr eacttopricechanges .
(Acceptanyot hercor r
ectrelevantr esponse)
2.1.
4 Br ief
lyexplainthedur abili
tyoft hepr oduc tasadet erminantofpriceelast
ici
tyof
demand. (2)
 Themor edur ablethepr oduc tis,themor eelasti
cthedemandwi l
lbe.
 Ifthepr oductlastsforal ongt i
me,c onsumerswillbei nfl
uencedbypr i
ceinc
reases
andwi l
lbemor ehesitanttobuyt hepr oduct.
 Pr oductsthatarenotdur ablehaveani nelast
icdemand.
(Acceptanyot hercor r
ectrelevantr esponse)
2.1.
5 Cal cul
atet he pr i
ce elasti
city ofdemand f rom t he above gr aph.Show ALL
calc
ulat
ions.( 4)
%c hangei nQuant it
ydemanded
 PED=
%c hangei nPrice

27
 80-
65 100
 St
ep1:%c
hangei
nPr
ice= x
65 1
 =23%
50-
110 100
 Step2:%changeinQuanti
tydemanded= x
110 1
 =55%
%changei
nQuant i
tydemanded
 PED=
%c hangei
nPrice
55%

23%
 2.
4

2.
2 Whyi sthepr i
c eel asticit
yofdemandi mpor tantt othepr oduc er?
(
8)
 I
tt ellst hepr oduc ert hatf orever yactiont her ei sar eaction.
 Bys t udyi ngel asticityofdemand,wec anpr edic twhatt hec hangei npric
ewi l
lbe
forthepr oduc er s
.
 I
tisus ef ultohel pf i
rmsdec idehowt oinc reas etheirt otalrevenue.
 Toi nc reas eitst otalr evenue,t hepr oduc erc anr ai
s ethepr icet ogetmor erevenue
perpr oduc t.
 Thepr oduc ermayal sodr opt hepricet oi nc r
eas ethequant i
tys ol
d.
 I
fthebuyer sar es ens iti
vet othepr i
ce( elas ti
cdemand) ,theywi llbuymor eift
he
pri
c edr ops ,sot hepr oduc ersshoulddr opt hepr i
ce.
 I
fthebuyer sar enots ensitive(inel
asticdemand)t heywi l
lnotbuymuc hles
seven
i
fthepr iceincr eas e,s othepr oducers houl di ncreaset hepr ice.
 Toi nc reas ethes ales,r ai
s et hepricewhent hedemandi sinelasticordropthe
pri
c ewhent hedemandi sel ast
ic.
 Produc er swantt oknowhows ensi
tivet hemar kets upplyist oac hangeinthe
pri
c eoft hepr oduc t
.
(Acc eptanyot herc or r
ec tr el
evantres pons e)
2.3 Howdoess ubs tit
ut esi nfl
uenc et hepr i
ceel astici
tyofdemand?
(8)
 I
fapr oduc thasas ubs tit
ute,c ons umer swi lleasi
lychangetoanot hercheaper
produc twhent her eisac hangei npr ice.
 Thepr oductwoul dt henhaveapr iceel asti
cdemand.
 I
fapr oduc tdoesnothaveac loses ubs ti
tute,consumerswoul dei
therstopbuying
theproduc torwoul dc ont i
nuet obuyi teveni fthepricei
ncreases.
 Thiswoul dc auset hedemandf ort hepr oducttobepr i
ceinelast
ic.
(Acceptanyot herc orrectrelevantr espons e)
2.4 Exami net hei mpor tanc eofther elativepr icesintheeconomy.
(8)
 Relati
vepr i
c esc onveyi mpor tanti nformat i
onaboutt hescarci
tyofapar ti
cul
ar
goods .
 Theyar eus edbyc ons umer s,bus ines s
es ,andt hegovernmentt odecidewhich
goodsands ervi
c est opur chas e.

28
  Transmit,i
mpor tantinfor
mat i
onnec essaryforeffic
iental
locationofresourc
es
throughoutanymar keteconomy.
 Thegover nmentc andet erminethelevelofi nfl
ati
on,economi cgr owt
hand
economi cdevelopmenti nthec ount
r y.
 Theyc anbeus edbyec onomi s
tstoas sesstheec onomicperfor manceand
compar eittootherc ountri
es.
 Thegover nmentus est herel
ativepricestoc heckinwhichdirec ti
ontheeconomy
i
sheadi ng.
 Theyi mportantfortheRes erveBankandt hegover nmenttomakeef fect
ive
dec i
si
onsont hec orrectuseandi mplement ati
onofbot hfis
c alandmonet ary
polici
es.
(Acceptanyot hercor r
ectrel
evantres ponse)

ACTI
VITY3
3.
1 St udyt
hegr
aphbel
owandans
wert
heques
tionst
hatf
oll
ow.

PRI
CEELASTI
CITY

Pr
ice
S

R50

R40

Quant i
ty
3.
1.1 I
dent i
fyt 0y
het peofpr ic 20
ee l
astici
tyint hediagram above. (1)
 Pri
ceel as t
ici
tyofs upply.
3.
1.2 Whati st hequant ityofferedf orsaleint hegraph? (1)
 20
3.
1.3 Bri
eflydes c
ribet het erm pr i
ceelas t
ici
tyofs uppl
y. (2)
 I
tisther espons ivenes sofquant itysuppl i
ed,asar esultofachangeinprice.
(Acceptanyot herc orrectrelevantres ponse)
3.
1.4 Whyi st hes uppl yc urves hapedver tical
ly? (2)
 Quant i
tiesof feredf ors al
er emainc ons t
ant.
 Nomat terhowpr icesc anc hange,thequant i
tysuppliedisunres
ponsive.
(Acceptanyot herc orrectrelevantres ponse)
3.
1.5 Howar er el
at i
vepr i
cesus edi ntheec onomy? (4)
 Theys howi nflati
on,ec onomi cgr owt handec onomi cdevelopmentinac ountr
y.

 Economis
tc anusethem toassesst
heper
for
manceoft
heeconomy.
 GovernmentandtheRes erveBankcanus
ethem t
odec
ideonthecor
rec
tfi
scal
andmonet arypol
i
ciest
oi mplement.

29
 (
Acc
eptanyot
herc
orr
ectr
elevantr
espons
e)

ACTI
VITY4
4.
1 St
udytheext
rac
tbel
owandanswerthequest
ionsthatf
oll
ow.
HowWouldPr
iceEl
ast
ici
tyofSuppl
yf orNucl
earEner
gybe?

Pri
ceelas
tic
ityofsuppl
yforener
gygener
atedf
rom nuc
learpowerpl
ant
sisl
i
kel
ytobe
qui
telow,li
kelybel
ow1.

Oneoft hefactors,i
nfl
uenci
ngpr i
ceelasti
cit
yofs uppl
yistimetakentofi
lldemand–
buil
dinganew powerpl anttakesalongt i
me,suggestingthatanincr
easeinpric
e
cannotnecess
ar ybemetbyaqui ckinc
r easeinquanti
tysuppli
ed.

www.
blombeg.
ca.
za

4.1.
1 i
dent if
yt hedegr eeofpr i
ceelas tici
tythatisequalto1.
(1)
 Uni t
arypr i
ceelast
ici
tyofs upply
4.1.
2 Givet hef ormulausedt ocalculat ePES.
(1)
%∆i nQuant i
tySuppl i
ed
 PES=
%∆i nPric
e
4.1.
3 Briefl
ydes cri
betheterms uppl y.
(2)
 I
tist heamountofgoodsors er vicethatisavai
lableataspecifi
cpr i
ceto
cons umer s.
4.1.
4 explaint heef f
ectofdec r
easingr el
ati
vepr i
cesont hepeople’sstandardofl
ivi
ng.
(2)
 Dec reasingr el
ati
vepricesisani ndic
ationthatinf
lati
onisdecreasingandthatthe
peopl ehavemor edisposablei nc ometos pend.
4.1.
5 Whyi sthepr i
ceel
asti
cityofs uppl yimportant?
(4)
 I
tmeas ur eshowmuc hthes uppl iedquantityofagoodors ervicerespondstoa
changei npr i
ce.
 I
tisnec essarytochangingmar ketc onditi
ons,especi
all
ypri
c echanges .

4.
2 Briefl
ydi scussi nelas t
icsupplyand uni
taryel ast
ics uppl
yasadegr eeofpr i
ce
elasti
ci
t yofs upply,wi thoutt
heus eofadiagram.
(8)
Relati
vei nelasti
cs uppl y
 Priceelasti
cityislesst hanone( PES<1).
 Ac hangei npr ic
ewi llcauseasmall
erpercentagec hangeinquantit
ysuppli
ed.
 Produc erswoul ds truggletoadapttothepr i
cei nc
rease,part
icul
arl
yintheshor
t
run.

30
 Unitaryelast
icsupply
 Pri
ceel as
tici
tyisequaltoone(PES=1)
 Ac hangei npri
cewi l
lcauseexac
tlyt
hesameper
c ent
agechangeinquant
it
y
supplied.
 Thes upplycurvelooksli
kethenormals
uppl
ycurvewithaposi
ti
veslopef
rom l
eft
toright.

31
TOPI
C8ECONOMI
CGROWTH
TOPI
C:ECONOMI
CGROWTH

Ter
m 3 Week 1

Dur
ati
on 4HOURS Wei
ght
ing 11%

Sub-
topi
cs Wealt
hcr
eat
ionproc
ess,
Dis
tri
buti
on,Distr
ibut
ionmet
hods
,Ec
onomi
cgrowthandst
andardofli
ving

RELATEDCONCEPTS/ Wealth,
inc
ome, i
ncomepercapi
ta,economicgrowth,
inc
ome
TERMS/VOCABULARY dis
tri
but
ion,weal
thdis
tri
but
ion,
Lorenzcurve,s
tandar
dofli
ving
,gros
s

PRI
OR-
KNOWLEDGE/BACKGROUNDKNOWLEDGE

• Theopenec
onomyc
irc
ularf
lowmodeldeal
twi
thi
ngr
ade9.
Ent
repr
eneur
shi
psands
ect
orsoft
heec
onomydeal
twi
thi
ngr
ade9.

RESOURCES

Text
booksandwor
kbooks
,Pr
evi
ousQues
tionPaper
s,Pos
ter
swi
thf
ormat
sint
henot
ice
boar
d/c
las
swal
l
s,Exami
nat
iongui
del
i
nes
,AnnualTeac
hingPl
an,Nat
ionalbudgets
peec
h
s
ummar
y,Gover
nmentdepar
tment
spubl
i
cat
ions
,Car
toonsonGover
nment
,taxes
,pr
icesand
pr
oduc
tion,Magaz
ines
,

News
paper
s,I
nter
net
,St
atsSA,SARBQuar
ter
lyBul
l
eti
n,Di
agnos
ticRepor
ts

ERRORS/
MISCONCEPTI
ONS/
PROBLEM AREAS

METHODOLOGY

BASELI
NEASSESSMENT:

 Al
l
owl
ear
ner
stodi
scus
scur
renti
ssues

• Lear
ner
smus
tEXPLAI
NATI
ONANDDI
SCUSSI
ON:Weal
thc
reat
ionmeas
ures

• Def
ineandexpl
aint
her
elevantc
onc
ept
s

• Di
scus
sec
onomi
cgr
owt
h.

• Di
scus
srealGDP

• Di
scus
sthes
tandar
dofl
i
ving

ASSESSMENT

32
  Homewor
ks

● Cl
asswor
ks

● Cl
asst
est

● Dat
ares
pons
e

● Cas
est
udi
es

ACTI
VITY1

1.
1.Vari
ousquesti
onsareprovi
dedaspossi
bleans
werstot
hefoll
owingques
tions.
Choosethecorr
ectanswerandwri
teonlythel
ett
er(
A.–D.)nexttot
heques t
ion
number(1.
1.1-1.
1.5)i
ntheanswerbook,f
orexampl
e1.
1.6B.

1.
1.1. Thec urvet hatmeas uresi
nequal
i
tyanddistr
ibuti
onbetweenhousehol
dsis
knownasa………………. .
A.Gi nic oef ficient
B.c api t
al
C.Lor enzc ur ve
D.pr oduc tivei nef fi
c i
enc y
1.
1.2. RealGDPmeas urest he…………………
A.St andar dofl iving
B.Ec onomi cgr owt h
C.Ec onomi cdevel opment
D.I ncomedi stribut ion
1.
1.3. Apol i
c yai medati ncreasi
ngtheownershi
pofagricul
tur
all
andofblackpeopl
ein
theec onomyi sc alled…
A.Landr efor m.
B.Agr icultur all and.
C.Landr edi s tribut i
on.
D.i nformat ion
1.
1.4. Thes tandar dofl ivingofapopulati
onisbestdescri
bedbythe………………
A.Perc api tai nc ome
B.Lowec onomi cgr owt h
C.Dec reas ei nexpendi t
ure
D.Sec ondar yeduc ation
1.
1.5. Sout hAf ricaus esa……………….t axat
ionsystem
A.Pr opor t
ional
B.Pr ogr ess ive
C.Regr es sive
D.Al loft heabove 5x2 ( 10)

1.
2 Choos
eades
cri
pti
onf
rom COLUMNBt
hatmat
chest
hei
tem i
nCOLUMNA
COLUMNA COLUMNB

33
1.2.
1 Progr
ess
ive A As t
ockofc
apitalas
set
sofhous
ehol
ds,
repr
esent
ingmoney H
taxat
ion ear
nedandsaved.

1.
2.2 Economi
c B Whenpeoplel
ivebel
owac er
tai
nincomethr
eshol
dandc
annot I
gr
owt h af
for
dcert
ainbasi
cgoodsandservi
ces.

1.
2.3 Res
iduali
ncome C I
sagraphi
calrepr
esent
ati
onoft
hedi
str
ibut
ionofi
ncome J
/
qui
nti
ledi
stri
buti
onofinc
ome.

1.
2.4 Weal
th D Awageratesetbythegover
nmentbelowwhi c
hnoemployer A
canpayt
heirworker
sandissetabovetheequil
i
bri
um.

1.
2.5 Abs
olut
epover
ty E I
stheretur
noflandt
othos
ewhohavel
osti
tduet
o B
di
scr
iminat
oryl
aws.

1.
2.6 Mi
nimum wage F I
ncomeperper
sonorperheadoft
het
otalpopul
ati
on D

1.
2.7 LandRes
tit
uti
on G Met
hodus
edt
omeas
urei
ncomei
nequal
i
ty. E

1.
2.8 Perc
api
ta H As
yst
em i
nwhi
cht
hos
ewhoear
nmor
epaymor
e. F
i
ncome

1.
2.9 Gi
nic
oef
fi
ci
ent I I
sthei
ncr
eas
eint
hepr
oduc
tivec
apac
ityoft
heec
onomy G

1.
2.10Lor
enzc
urve J I
tcaptur
eser
rorsandomissi
onst
hatoc
cur
sdur
ingt
he C
c
alcul
ati
onofnati
onali
ncome

K Thepri
ceofgoodsands er
vic
est
hatyoupayt
omai
ntai
nan
aver
agestandar
dofli
ving.

10X1 (10)
1.
3Giveonetermforeac
hofthefoll
owingdes
cript
ions.Wr
it
eonl
ythet
erm nexttot
he
quest
ionnumber(
1.3.
1–1.3.
4)
1.
3.1Thequal
it
yofli
feofani
ndivi
dualorahousehold

 Standardofli
ving
1.
3.2Therel
ati
onshipbetweeni
nputandoutputobt
ainedwi
thoneuni
tofinput
sper
worker
.
 producti
vit
y
1.
3.3. Measur
esthenumberofyearsanewbornbabyorapers
onisexpec
tedtoli
ve

 Lifeexpectancy
1.
3.4. Theprocessthatfocus
sesont
hei
mpr
ovementoft
hes
tandar
dofl
i
vingoft
he
i
nhabit
ant soft
hec ountry
 Ec onomicdevelopment 4x1
(
4)

ACTI
VITY2
2.
1 St
udythepi
ctur
ebel
owandans
wert
heques
tionst
hatf
oll
ow.

34
 Sourcewww. c ar
toon.c
om
2.1.
1 I
dentif
yt hec auseofi nequal ityintheabovei nformat i
on
(1)
 educati
on
2.1.
2 NameONEmet hodus edbygover nmentt oreduc ei
nequali
ty.
(1)
 Soci
algr ant( cashbenef i
t)
(Acc
eptanyot herc orrectr elevantrespons e)
2.1.
3 Bri
efl
ydes c r
ibethet ermr esidualincome
(2)
 Theincomet hatremai nsaf terallexpens eshavebeendeduc t
ed
(Acc
eptanyot herc orrectr elevantrespons e)
2.1.
4 Expl
aint hei mpac tofpooreduc at
ionont hestandardofli
ving.
(2)
 Lackofeduc at
ionc anl eadt ol owincomeperc apita
 Lowerac c esst obas i
cgoodsands ervices
 Lowlifeexpec tancy
(Acc
eptanyot herc orrectr elevantrespons e)
2.1.
5 Howi sweal thcreatedt hr oughs avings
(4)
 Savi
ngsc omesf r
om inc ome;i ncomet hatisnotc onsumediss aved.
 Theygat herweal t
hwhent heykeept heircas
h,makedepos its,investt
heirmoney
andpaypr emiumsoni ns uranc epolici
es.
 Theygat herweal t
hwhent heykeept heircas
h,makedepos its,investt
heirmoney
andpaypr emiumsoni ns uranc epolici
es.
(Acc
eptanyot herc orrectr elevantrespons e)

ACTI
VITY3

35
3.
1 St
udyt
hegr
aphbel
owandans
wert
heques
tiont
hatf
oll
ow.

Source:www.
inves
topedi
a.c
om
3.
1.1 I
denti
fyac ountrywit
ht hemos tunequaldi
str
ibuti
onf r
om thegr
aphabove.
(
1)
 Countr
yB
3.
1.2 WhatisrepresentedbyletterCintheabovegr aph?
(
1)
 I
nequali
tygap
3.1.
3 Bri
efl
ydescribetheterm Lorenzcurve.
(2)
 Briefl
ydescri
bet het erm Lor enzcurve.Agraphshowingthedi
str
ibut
ionofi
ncome
(orwealth)withinanec onomy.
(Acceptanyot herc orrectr elevantrespons
e)
3.1.
4 WhatdoesaGi nicoefficientofz eromean?
(2)
 I
tmeansequaldi stributionofi nc
ome/per f
ectequali
ty.
(Acceptanyot herc orrectr elevantrespons
e)
3.1.
5 Calculat
etheval ueofGi nic oeffi
ci
ent.showallc
alcul
ati
ons
2×2 ( 4)
 Ginico-eff
ici
ent=C/C+D
=20/ 100
=0, 2

ACTI
VITY4
4.
1Studyt
heGr
aphbel
owandans
wert
heques
tiont
hatf
oll
ow.

36
4.1.
1 I
dent i
fytheper iodi nwhi chgr owt hi nr ealGDPi sthel owes t.
(1)
nd
 2 Quar terof2020
4.1.
2 Nameanec onomi ci ndicatort hatisus edt omeas ureec onomicgrowth.
(1)
 RealGDP
4.1.
3 Bri
ef lydes cribet het erm ec onomi cgr owt h.
(2)
 I
tisani nc r
eas eint hepr oduc t
ionc apac i
tyofac ount r
y.
(Acc eptanyot herc orrectr elevantr espons e.
)
4.1.
4 Explainf actor sthatl eadt oi nc reasedec onomi cgr owt h.
(2)
 I
nc reasedpr oduc t
ivitydr i
vel ong-t erm gr owt hinmos tc ountri
es
 I
mpr ovementi nt ec hnologyi simpor t
antbec aus eitreduc ethecosts
upplyi
ng
goodsands erviceandus uallyl eadt oec onomi cgrowt h
(Acc eptanyot herc orrectr elevantr espons e.
)
4.1.
5 Whyi sSout hAf ri
caexper ienc i
ngl owec onomi cgr owthr ate
(2x2)(4)
 Theover valuat i
onandvol at i
lit
yofSout hAf rica’scurrenc y
 Barrierstoent ry,limitstoc ompet i
tionandl i
mi t
ednewi nvestment
oppor tuni t
ies
 Def i
c i
enciesi ns tateor gani sation,capac i
tyandl eaders hip
(Acc eptanyot herc orrectr elevantr espons e.
)

ACTI
VITY5
5.
1 St
udythepi
ctur
ebel
owandans
wert
heques
tionst
hatf
oll
ows

37
 Sour
cewww.
car
toon
.com
5.1.
1 I
dent
if
ythec
aus
eofpover
ty
(1)
 Lackofeduc at ion
 Highr at
eofunempl oyment
5.1.
2 Nameonef ac torthatdet ermi nethes tandar dofliving
(1)
 Levelofincomeoft hehous ehold
 Populati
ons ize/f ami l
ys i
ze
5.1.
3 Bri
eflydescribet het erms tandar dofl i
ving
(2)
 Qualit
yofl i
feofani ndividualorhous ehold
(Acceptanyot herc or r
ectrel evantres ponse.)
5.1.
4 Whyi sSout hAf ri
car egardedasac ount rywi t
hthehi ghestinequalityi
nthewor l
d?
(2)
 SouthAf ri
cahashi ghl evelofunempl oymentduet olac kofskill
s
 SouthAf ri
cahasr elat i
velyhi ghlevelofi l
li
teracyduet opooreduc ation
(Acceptanyot herc or r
ectrel evantres ponse.)
5.1.
5 Howc anhighpopul ationgr owt hinfl
uenc et hest
andar dofl i
ving?
(2x2)(
4)
 Whenpopul ationgr owt hrat eisabover ealGDPt hes tandardofl i
vingwil
l
decrease
 Highpopul ationmayr esulti nshortagesofgoodands ervi
cetohi ghdemand.
 Morepeopl emayl i
vei npover tyast heyf ailtoacces sempl oymentoppor tuni
ti
es.

(
Acc
eptanyot
herc
orr
ectr
elevantr
espons
e.)

ACTI
VITY6
6.
1 Di f
ferenti
atebet
weenec
onomi
cgr
owt
handeconomi
cdevel
opment
.
(8)
ECONOMI CGROWTH ECONOMICDEVELOPMENT

 I
sani
nc r
eas
eint
hepr oduc
tive  I
sanincr
easei
nthest
andardof
c
apac
ityoft
heeconomy l
i
vingofpeopl
einac
ountry

38
  I
smeasuredasper
cent
agec
hange  Dealswithissuessuchas
i
nrealGDP educati
onliterac
y,healt
hcar
e,
employmentandenvi ronmental
sust
ainabil
i
ty.

 Concernedwi
thgoodsand  Concernedwi
thpeopl
eandhuman
ser
vices devel
opment

(Acceptanyot hercorr
ec tr
elevantrespons e.
)
6.
2 Disc
us sthei
mpor t
anceofec onomicgr owth
(8)
 Themeansf orpeopl etoenjoybet terli
vingstandard
 I
ncreasegover nmentincomeduet ot axrevenuest hatcanbeusedtofinance
spendingproject.
 Anincreaseindemandandout put,whichwi l
lincreasei
nvestmenti
nnewc api
tal
machineryandhel ptos ust
ainthegr owth.
 Apos i
tiveef
fec toncompanypr of
itandonbus inessconfi
denceingeneral
.
(Acceptanyot hercorr
ec tr
elevantrespons e.
)

ACTI
VITY7
7.
1 Wi t
htheai
dofawel
ll
abel
l
edgr
aphexpl
ainac
ount
rywi
thhi
ghi
nequal
i
ty
(
8)

1Mark-c orrec
t
l
abell
i
ng
ofBOTHaxes
1mark–l ineof
equal
it
y
withlabel
1mark–l arge
i
nequali
ty
Gap
1MarkAc tualinc
ome
dis
tributi
online
wit
h
l
abel

 TheGinic
oeff
ici
entisc
alc
ulat
edusi
ngtheLor
enzcurve.
 TheGi
nicoef
fi
cientc
anvaryfr
om 0(meani
ngper
fec
tequali
tyorf
airdi
str
ibut
ion)
.

 I
fac ountry’sincomedi s
tributi
oni salmostequal,t
heLor enzc
urvewi
l
lbecl
oserto
45degrees ’li
neandt hehi gheritsGinicoeff
ici
ent.
 I
fthereisper f
ec tequali
ty,theLor enzcurvewil
lbet hesameasthe45degr
ees’
l
ineandt heGi nicoeff
ici
entwi llbe0.
(Acc
eptanyot hercorrectrelevantresponse.
)
7.
2 Exami nethei mpac tofCOVI D- 19impactonweal thc r
eati
on

39
 (8)
 Manyc ons umer swer eret renc hedc reat i
ngal owerdemandf orgoodsand
ser vi
c es .
 Loweri nc omel evel sledt ol owers avi ngsf orc apitalformat i
on.
 Manybus ines sowner swer ef or c
edt oc l
oset heirdoor sandt huswer enotableto
ear nani nc ome.
 Cer taini ndus t
riess uchast obac coandal coholwer es uf
fer ingf r
om t heban/
res tr
ic tedt radinghour s,t her ef orel owerpr ofits
(Ac ceptanyot herc orr
ec tr elevantr espons e.
)
7.3 Hows houl dhi ghereduc at i
oni nequal iti
esbeaddr essedt oi mpr ovet hes tandar
d
ofli
vi
ngi n
Sout hAf rica?
(8)
 Pr opert rai ningands ki
ll
ingofs choolmanagementt obec omeef fic
ientand
ef f
ec tive
 Pr ovisioni ngofs oundeduc ationali nf rastruc t
ureint hef orm ofl abor ator
iesand
li
br aries
 Ups killingandr es kil
li
ngoft het eac her s
 I ns i
stingonas oundt eac hingandl ear ningat mos pher e
(Ac ceptanyot herc orrec trel evantr es pons e)
ACTIVITY8
 Di s c
us st hemet hodsus edbyt hegover nmentt or edist
ribut einc omeandweal th
(26)
 Anal ys et hec aus esofunevendi s tribut ionofi ncomei nSout hAf rica
(10)
I
ntroduc ti
on
Redist
ribut i
oni sapr oc essofr e- alloc atingi nc ome,weal thandr es ourcesequal l
y
amongs tt hec iti
z enst or educ es oc ialandec onomi cinequal i
ty.
BODY( MAI NPART)
Taxati
on
 Thegover nmentc anbegi nt oens ur er edistri
but i
onbyus ingt ax
 Pr ogr es s i
vet axs ys tem wi l
lbeus eds inc eitstatest hatthehi gher -i
ncomepay
mor et ax.
 Ther evenuec ollec tedf rom t axesi sus edt oas si
stt hepoorc it
izen

Soc
ialgr ants(cas
hbenef i
ts)
 Cas hgrantsarepaidbyt hegovernmenttorecei
verswi
thoutanyservi
cebei
ng
rendered.
 Theyhel pthepoorf acethebasi
cc os
tsofli
vingi
nthecountry
 Themai ncashgrantsi
nSout hAfr
icaareOlderPers
onsGrants;Chi
l
dSupport
Gr ants
;Disabi
li
tyGrants;etc

Payment
sinkind
 Theseareessent
ialser
vic
est
hatt
hegover
nmentens
uret
heyar
epr
ovi
dedt
othe
needyfreeofcharge.

40
  Theyconsi
stofpr i
maryhealt
hcare;bas
iceducat
ion;feedi
ngs c
hemes;protect
ion
andinfr
astr
ucture.
 Alt
houghthesedonotc ontri
butetotheaccumulati
onofas s
etsforgener
ating
l
ong-term wealt
h,theysat
isf
ybas i
cneeds.

Educat
ion
 Impr ovededuc ati
onsys
t em increas
eseduc at
ionlevel
sinlow-i
ncomefamil
iesina
c ountry
 Thi si
mpr ovesthepeoples’pr os
pec t
sinthelabourmar ket
.
 Educ ationclear
lymakeswor kersmor ecompet i
ti
veinat oughl
abourmarket.
 Thes upplyofhighl
yski
ll
edl abourneedst oincr
easeifunemploymentandpovert
y
ar etober educed.

Labourpr acti
ce
 El iminati
onofthelabourinequal
iti
esimprovethegeneralworki
ngc ondi
ti
onsf or
allSouthAfri
cans
 Thei mplementat
ionofami nimum wageandunempl oymentins
urancehelpsto
reduc erel
ati
vepovertyforpeoplewhoear nverylowwages .
 St rategi
esforhel
pingt heyouthtoobt ai
nthei
rfi
rstj
obi nc
ludeawages ubsidy,a
searchs ubsi
dyandreduc edregul
ationsforf
ir
stjobs
.

Mac
roeconomicpolicy
 Benef i
tsofstrongmac roeconomicperfor
manc eandec onomicgrowthist
hatt
ax
r
evenuei sgeneratedtofunds oci
alexpendi
ture.
 Mac roeconomi cpoli
ci
ess uchasGEARandAs giSAinf
luencethedist
ri
buti
onof
i
ncomeandweal t
hinvariousways.
 Regionaldevel opmentpol i
ci
esreducegeographicali
nequali
ti
esofincomeand
wealt
h.

Redi
stri
butionmet hods
 Sout hAf r i
ca’strans f
ormat ions ince1994hasemphas is
eds tr
ategiesfor
eli
minat i
ngi nequal it
iesandl i
vi ngc ondit
ionsforallSouthAf r
icans.
 Intervent ionsthatwoul dens ur eamor erapidredi
s tr
ibuti
onofi ncome,wealt
hand
opport uniti
est ot hepr evi
ous l
ydi s advantaged.
 Theyi nc lude:Bl ackEc onomi cEmpower ment(BEE) ;Affi
rmati
veac ti
on;Land
redi
stribut i
onandPr opertys ubs i
dies .
(Acceptanyr elevantandc orrec tres ponses) max26
Addit
ionalpar t
Anal
yset hec aus esofunevendi stri
but i
onofi ncomei nSouthAf ri
ca (10)
Unevendi st
ri
but i
onofi ncomeexi stsbec aus e:
 Al ackofeduc ationandt raining:i ndividualswithadvanc edqual i
fi
cat
ionsorski
l
ls
earnhi gherinc omet hant hos ewhoar ewithoutqualifi
cati
ons.
 Unequalowner shipofr es
our c esofweal th,suchaspr opertyandot herasset
s.

 Fami
l
ysi
zes
:somehous
ehol
dshavemor
edependant
sandbur
dent
hanot
her
s.

41
  Dis
c ri
minati
on:tradi
ti
onal
ly,genderinequal
it
yhasfavour
edmenovers imil
arl
y
qualif
iedwomen.
 I
nher encepassedonf r
om onegener ati
ontothenextensurest
hatwealt
hremains
i
nt hehandsoft hefew.
 Cultureandper s
onalpref
erencesforac er
tai
ntypeofwor kwil
laf
fec
tincome.

 Unemploymentmaydepr
ivecer
tai
npar
toft
hec
iti
zenst
heoppor
tuni
tyofear
ning
inc
ome
(
Acc
eptanyr
elevantandc
orr
ectres
ponse) max10

Conc l
usi
on
Somegover nmentpoli
ciesaregearedtowar
dsaddr
ess
ingi
ncomei
nequal
i
ties
,whi
l
e
othersaddres
swealthredist
ri
buti
on.
max2
(Acceptanyrel
evantandc orr
ectrespons
e)

TOPI
C9ECONOMI
CDEVELOPMENT

42
TOPI
C:ECONOMI
CDEVELOPMENT

Ter
m 3 Week 4

Dur
ati
on 4hour
s Wei
ght
ing 10%

Sub-
topi
cs Met
hodsofdevel
opment

Commonc
har
act
eri
sti
cs

RELATED  GEAR
CONCEPTS/TERMS  RDP
/
VOCABULARY  ASGI
SA

 NDP

 NGP

 MDG

 St
andar
dofl
i
ving,

 l
owl
evel
sofpr
oduc
tivi
ty,

 hi
ghpopul
ati
ongr
owt
handdependenc
ybur
den

 hi
ghl
evel
sofunempl
oyment

 dependenc
yont
hepr
imar
ysec
tor

 def
ici
enti
nfr
ast
ruc
tur
e

PRI
OR-
KNOWLEDGE/BACKGROUNDKNOWLEDGE

 Ear
lyec
onomi
cdevel
opment
,

 Caus
esofpover
ty,

 Typesofunempl
oyment
,

 Ec
onomi
cgr
owt
h,

 Popul
ati
onandl
abourf
orc
e

POST-KNOWLEDGE

Gr
ade12ec
onomi
cgr
owt
handdevel
opment
.

Ec
onomi
cands
oci
alper
for
manc
eindi
cat
ors

RESOURCES

43
  Lear
ner
stext
books

 News
paperar
ti
cl
es

 Chal
kboar
dsummar
y

 St
ati
sti
cs:s
tat
sSA

 Pas
texam paper
s

ERRORS/
MISCONCEPTI
ONS/
PROBLEM AREAS

Lear
ner
sconf
useec
onomi
cgr
owt
handdevel
opment

Lear
ner
sal
soc
onf
usegener
als
trat
egi
esandSout
hAf
ri
cans
trat
egi
esofdevel
opment
.

I
nter
pret
ati
onandanal
yzi
ngofgr
aphsi
sac
hal
l
enge.

METHODOLOGY

Des
cri
bet
her
elevantc
onc
ept
s

Di
scus
smet
hodst
hatc
anbei
mpl
ant
edt
oas
sis
tdevel
opment

Expl
aint
hec
har
act
eri
sti
csofec
onomi
cdevel
opment

ACTI
VITI
ES

Teac
herAc
tivi
ti
es Lear
nerAc
tivi
ti
es

 Teac
herwi
l
lint
roduc
eat
opi
c Dis
cusst
hestr
ategi
est
oinc
reas
e
devel
opment
.
 I
nfusecur
renti
ssuesfrom newspaper
ar
tic
letoel
aboratecharac
t er
ist
icsand Dif
fer
enti
atebet
weenec
onomi
cgr
owt
h
methodsofdevel
opment . anddevel
opment.

 Teac
herwi
l
ldes
cri
bebas
icc
onc
ept
s Comparethecharact
eri
sti
csofdevel
opi
ng
count
ri
eswiththoseofdevel
oped
 Compareeconomi
cgr
owt
hand
count
ri
es.
devel
opment

 Di
scussmet
hodsthatc
anbei
mpl
ant
edt
o
as
sis
tdevel
opment.

NB:Ref
ert oexaminat
ionguidel
inestodevel
op
moreact
ivit
iesandensurethatallc
ognit
ivel
evel
s
ar
eassessed.

St
epAheadPr
ogr
amme2021

ASSESSMENT

ACTI
VITY1
1.
1 Var iousopt
ionsareprovi
dedaspossi
bleans
wer stothef
oll
owi
ngques
tions.
Wri
tedownt hequest
ionnumber(1.
1.1to1.
1.5)chooset
heans
werandwr i
tethe

44
 l
etter( A- D)nextt ot heques t
ionnumberi nt heANSWERBOOK.
1.
1.1 Ameas ur eoft hequant i
tyofgoodsands ervic
esavai l
ablet othepopulati
onofa
count ryisc alled……….
A.)ec onomi cgr owt h
B.)standar dofl iving
C.)weal th
D.)pr oduc ti
vi ty
1.
1.2 Ani nc reas eint hepr oduc tivec apac it
yoft heec onomys othatgreat
ervalueof
goodsands ervi cesi spr oduc edi sknownas ………. .
A.)ec onomi cdevel opment
B.)pr i
vat i
zat i
on
C.)indus t
ri
al i
z ation
D.)ec onomi cgr owt h
1.
1.3 Theper centageofadul tswhoc anr eadandwr i
teef f
ec t
ivel
yatleastinone
l
anguagei sc alled…….
A.)mor tali
tyr at e
B.)li
ter acyr ate
C.)repor ate
D.)gr owt hr ate
1.
1.4 Thec ondi ti
ont hatexi stwhent hei ncomeofahous eholdist ool
owt obeabl eto
aff
or dbas i
cneedsi sknownas……. .
A.)pover ty
B.)inequal ity.
C.)gini- coefficient
D.)unempl oyment .
1.
1.5 Knowl edget hati suni quet oagi venc ul
tureors ociet
yi scall
ed……. .
.
A.)intellectualpr oper tyrights
B.)indigenousknowl edges ystem (IKS)
C.)goodgover nanc e
D.)ent repreneur ship.
(
2x5)10
1.
2 Choos eades cript i
onf rom COLUMNBt hatmat chesani tem inCOLUM A.wr iteonly
theletter(A- F)t ot he ques ti
onnumber( 1.2.1-1.2.
5)int heANSWERBOOK,f or
exampl e1. 2.6D
COLUMNA COLUMNB

1.
2.1 Labourf
orc
eD A.I
ncr
eas
ingt
hes
toc
kofc
api
tali
nthec
ount
ry.

1.
2.2 Dependenc
ybur
denE B.I
mplement
ingprogrammeswherebycur
rentneeds
aremetwi
thoutendanger
ingr
esourc
esforfut
ure
1.
2.3 Humandevel
opment needs
.
i
ndexF
C.Animprovementi
nthes
tandar
dofl
i
vingoft
he
1.
2.4 Ec
onomi
cdevel
opmentC popul
ati
on
D.Peoplebet
weentheageof15and64whoar
e
1.
2.5 Capi
talf
ormat
ion A employedandseeki
ngempl
oyment
.
E.Ameas
ureshowi
ngthenumberofpeopl
etobe
s
uppor
tedbytheworki
ngpopul
ati
on.
F.As
tat
ist
icus
edt
orankc
ount
ry’
saver
age

45
 achi
evementsi
nthreebas
icaspec
ts:heal
th,
knowledgeandst
andardofl
ivi
ng.

(5X1)5
1.3GiveONEwor df oreac hoft hef oll
owi ngdes criptions .ABBREVI ATIONSand
ACRONYMSwi l
lnotbeac cepted.
1.3.
1 Thenumberofyear saper s
onbor ni napar ticularc ount ryisexpec t
edt oli
ve.
Lif
eexpec tanc y
1.3.
2 Poor lydevel opedi nf ras tr
uc tureindevel opi ngc ount ries.
Def i
c ienti nfras t
ruc tur e
1.3.
3 Agover nmentpr ogr ammel aunchedi n2004t opr ovidet emporar yworkforthe
unempl oyed.
Expandedpubl i
cwor kspr ogr amme
1.3.
4 Apol icyt hatwasl aunc hedi n1994t oaddr es singpover t
yal l
evi
at i
onandt he
shor tc omi ngsi nt hepr ovis i
onofs ervicesac ros st hec ountry.
Rec ons truc ti
onandDevel opmentPr ogramme.
(4X1)(5)
ACTIVITY2
2.1.
1Namet woc har acter isti
c sofdevel opi ngc ount ries .
(2)
 Lows tandar dofl iving
 Lowl evel sofpr oduc tivity
 Hi ghpopul ationgr owt handdependenc ybur den
 Hi ghl evel sofunempl oyment
 Def i
c i
enc yofi nfras truc ture
(Acc eptanyot herr el
evantc orr
ectans wer s
)
2.1.
2 Howdoesl owl i
ter acyr ateaf f
ectt hepr oduc t
ivityoft hec ountr
y?
(2)
 Lowl iter ac ymeanst hatt hemaj orityoft hepopul at i
onc annotr eadandwr ite,t
hat
willdec reas et heirpr oduc ti
vityint hewor kplac e
 I l
li
ter at ewor ker sar emor elikelytomademi s t
akesandwas tageofr es
ources.
(Acc eptanyot herr el
evantc orr
ectans wer s
)
2.2 Readt heext rac tbel owandans wert heques tionst hatf oll
ow.
Mic
r odevel oper sopendoor sandwi ndowsf ors olvingSA’ shousingproblem.

SA’surbanpopul ati
oni sexpanding,creatingagr owi ngneedf orhous i
ng.Inadditi
on,
peoplearemovi ngawayf rom r
uralareas,wher epover t
yandunempl oymentar e
extr
emelyhi gh,towardsmet rosandc iti
es,wher et herearemor eeconomi c
opportunit
ies.I
ftheyget“ t
otown” ,theyus uall
ys ettl
eons hac ksininf ormal
sett
lementsorc heapr entalacc
ommodat ion.Iftheyqual if
yf orgover nment -provi
ded
Reconstructi
onandDevel opmentPr ogramme( RDP) ,theywi llendupr emainingont he
outski
rtofthec i
ty.Themaj ori
tyofRDPbenef i
ciari
esar esof arf rom ec onomiccentr
es
thattheyfi
ndi ttoocos tl
ytoevenl ookforempl oymentoppor tunit
ies .Itwould
theref
orebeext remelybenef i
ci
al,forthepoorandf orthec ount ry,ift hepoorc oul
d

46
ac
ces
sac
commodat
ionc
los
ert
ocent
resofempl
oymentandent
repr
eneur
shi
p.

Sour
ce:Bus
ines
s
day2023
2.
2.1 Ident ifyadevel opments trategyment ionedi ntheaboveext ract.
(1)
RDP/Rec ons truc ti
onanddevel opmentPr ogramme.
2.
2.2 Nameones ervicet hatispr ovidedbygover nmentaspar tofRDP.
(1)
Hous ing,el ectrificati
on,landr eform,wat erands ani
tati
on
2.
2.3 Br i
efl
ydes cribet heterm popul ati
ongr owt h.
(2)
Popul ati
ongr owt hist heinc r
eas ei nt henumberofpeopl elivi
ngi nacountr
yina
par
tic
ularper i
od
(Acceptanyot herr el
evantc orrectans wer s
)
2.
2.4 Expl aint hemai nai m ofRec ons truct i
onandDevel opmentPr ogramme( RDP)?
(2)
 RDPi saimedataddr es s
ingpover tyal l
eviati
onandt heshor tcomingsi
nthe
provisionofs er vicesac r
osst hec ount ry.
 I tisal soat tempt edt ocombi nemeas urest oboosttheec onomy.
(Acceptanyot herr el
evantc orrectans wer s
)
2.
2.5 Howwoul dhi gherunempl oymentr esulttoc hr
onicpoverty
(4)
I
tc anr es ul
tt oc hronicpover tyby:
 J oblesspopul at ionaref ai
lingt os at i
sfytheiressenti
alneedswhi chl
eadtobe
poor er .
 Unempl oyedgr oupisunabl et os avewhi chmaket hem toinves tl
essonwealt
h.

 Peopledependentons ocialgr
antunabl
etoinvestineduc
ati
onwhi
chl
eadt
o
povert
ytrap.
(Acceptanyotherr
elevantcorr
ectanswer
s)
ACTI
VITY3
3.
1 St udythec ar
toonbelowandans werquest
ionsthatfol
l
ow.

Sour
ce:google/
cart
oons
3.
1.1 I
dent
if
ythec
hal
l
engef
acedbydevel
opi
ngc
ount
ri
esi
ntheabovecartoon.

47
(
1)
Highl evel
sofunemployment /unemployment/l
ackofjoboppor
tuni
ti
es.
3.
1.2 NameONEc auseofyouthunempl oymentinSouthAfr
ica.
(1)
 Lac kofrel
evantski
l
ls
 Shor t
ageoflabour-intensivei
ndustri
es.
(Acceptanyotherrel
evantc orr
ectanswers)
3.1.
3 Briefl
ydescri
betheterml abourproducti
vit
y.
(2)
Labourpr oduc ti
vityreferstohowmuc hi sbeingpr oducedbyeachwor kerina
peri
odoft i
me.
(Acceptanyot herrelevantc or
rectanswer s)
3.1.
4 Whats t
rategiescanbeus edbygover nmentt oreduc eunemploymentint he
countr
y? (
2)
 Thegover nmentmus tpromot eands uppor tlabour -intensi
vei
ndustr
ieswhichis
thedr i
vingforc ebehindj obc r
eati
on.
 Pr omot emor ec apitali
nves tmentbyinc r
eas i
ngt hel evelandqual
it
yofi nvest
ment
innewt echnol ogy.
 Thegover nmentc anc reateas t
ableenvironment alsystem t
hatwil
lachieve
economi cgrowt handdevel opment.
 Cr eatingas tablesoc i
als yst
em thatwillpreventinequal it
yandpromot egender
equity.
(Acceptanyot herrelevantc or
rectanswer s)

3.1.
5 Howdoesl owl i
feexpec t
ancyaffectthehumandevel opmentindexofac ountr
y?
(4)
I
t saffec tHDIby:
 Demons tr
atingas hortageoffacil
it
iesasmor epeopledieatanearlyagewhi chis
as s
oc i
at edwi t
hs lowec onomicdevelopment .
 Indi catingahi ghmor talit
yrateandnat uralratewhichar eass
ociat
edwithal ow
HDIval ues.
 Ref l
ectingpoorl i
vingc ondit
ionasc ompar edt othoseofothercountr
ies
.
(Ac c
eptanyot herr el
evantc or
rectans wers)
3.2 Di
fferentiatebet weenec onomicgr owthanddevel opment .
(8)
Economi cgr owt h Economi cdevelopment

 I
trel
atest otheincreas
ein  Thisr
eferst
oanimprovementi
n
pr
oductivecapac i
tyofacount
ryi
n thest
andardofl
i
vingofthe
apart
icularperi
od. populat
ion.

 I
tismeas
uredi
nter
msofr
ealGDP  I
tismeas
urei
nter
msofGDPper
c
apit
a.
(Acc
eptanyot
herr
elevantc
orr
ect
ans
wer
s) (Acc
eptanyot
herr
elevantc
orr
ect
ans
wer
s)

3.
3 Hows
ucc
ess
fuli
sRDPi
nSout
hAf
ri
ca?

48
(8)
RDPhasbeens uccessfulinSout hAfricabec aus
e:
 Mos tcommuni ti
eses pec i
all
yi nruralareashavebeenel ec
tri
fi
ed.
 EPWPhaspr ovidedt empor aryempl oymentforunempl oyedpeopl e.
 Newhous eshavebeenbui l
tandal locatedtodeser vi
nghous ehold.
RDPhasnotbeens uccess f
ulbec ause:
 Therear esti
llsomec ommuni ti
eswi thoutpropers upplyofcl
eanwat erand
sanit
ation
 SomeRDPhous esar enoti ngoodqual it
y.
 Thereisabs enc eofs uffi
cientlandf orhuges cal
ehous ingventures.
(Acceptanyot herr elevantc orrectans wers)
ACTIVI
TY4
4.1.
1 Namet wof ac torsthatinf l
uenc eincome
(2)
 Levelofs ki
ll
sandt raini
ng
 Valueofweal t
hy
4.1.
2 Whatef fectdoesl ows tandardofl ivi
nghaveont heec onomy?
(2)
 Peopledependentont ransferpaymentwhi chincreasegovernments pendi
ng.

(Acc
eptanyotherrelevantc
orr
ectanswers)
4.
2 Readtheext
ractbelowandans werthequesti
onst
hatfol
low:
NDP2030Tar gets
:SA’star
getsvs
.real
it
y
Thenewdevelopmentplan:vi
si
on2030(NDP)wasadoptedbygover
nmenti
n2012.t
he
planwasdes
ignedtoreduc ei
nequal
i
tyanderadic
atepover
tyi
nSouthAf
ri
cabyaiming
toreac
hkeygoalsmeantt odevel
opSouthAfr
ica.
However ,bas edonkeyt argetsintheNDP2030t hathavenotbeenmettodate,
picture-
perfec tSouthAf ri
caenvi s
ionedintheNDP’ svi
si
on2030maynotber eali
zed
ont ime.Thenat ionalplanningc ommi s
sion(NCP),anagenc
ytaskedwit
hthestrategi
c
planningtoNDP,r eali
zedar eportin2030wi t
hrecommendati
onstoremedyissues
thatmaydet ertheNDP’ s2030t argets.
Adopt
edi
nWeb/
/
f
eb2023SANews

4.2.
1 Identi
fydevel opment alst r
at egyi ntheabovear t
icl
e.
(1)
 Jointini
t i
ati
veonPr i
oritySki ll
sAc quisi
tion/JIPSA
4.2.
2 Namet hegover nmentdepar t
mentt hati sresponsi
bleforskil
l
sdevelopmentin
SouthAfr
ica.( 1)
 Depar tmentofhi ghereduc at i
onandt raini
ng/DHET
4.2.
3 Briefl
ydes cri
bet heterm ec onomi cdevel opment.
(2)
 Economi cdevelopmentr elatest otheimpr ovementi nstandardofli
vingofthe
populationinapar ti
cularper i
odoft ime.
(Acceptanyot herrelevantc orrectanswer s)
4.2.
4 Explaint henegat i
veimpac tofs hor
tageofs ki
ll
edlabourforceinthec ount
ry.

49
 (2)
 Thehighrateofunskil
ledlabourforcesl
owdownt heproducti
onpr ocess
,
ther
eforeret
ardi
ngec onomi cgrowthratef
orthec ountr
y.
 Unskil
l
edlabourfor
c ec anbeinfl
exibl
ethusqual
ityofgoodsands ervi
cesc annot
beproduced.
 I
tishamper i
ngthecompet it
ivenessofthecount
ryi ntheint
ernat
ionalmar ket.

(Acceptanyot herrelevantc orrectanswer s

)
4.
2.5 Howwoul dlackofpr oduc t
iveres ourc
esi nacountr
yleadtopovert
y?
(4)
 Theresour c
esc annotpr ovideenoughf oodforthepopul
ati
on.
 No-exis
t enceofent r
epr eneurship,becauseoflackofbusi
nesseducat
ionand
entr
epreneur i
alski
ll
sdevel opment .
(Ac
ceptanyot herrelevantc or
rec tanswers)

ACTI
VITY5
5.
1 St
udythepict
urebel
owandans wertheques
tionst
hatf
oll
ow.
Reconst
ruc
tionanddevel
opmentpr
ogrammehass etouttot
hec or
rec
tthes
ervi
cepr
ovi
si
on
backl
ogs.

I
nar
easofSout hAf
ric
awher
eelectr
ici
tyhadtr
adi
tional
l
ynotyetbeenprovi
ded,st
ate
s
ubsi
dizedsol
arpanel
sands
olarpoweredhotwatercyl
inder
shavebeenins
tal
ledonhous
es
t
oharnesst
hepowerofthesuntoelect
ri
cit
yhous
es .

Sour
ce:googl
e/i
nter
net

5.
1.1 I
dentif
yt hedevel
opi ngpol i
cythatwasimplement
edbygover
nments
inc
e1994.
(1)
 Reconst r
ucti
i
onandDevel opmentPr ogr
amme.
5.
1.2 Namet hecommonc haracter
ist
icsofdevel
opi
ngcount
ry. (1)
 Lows tandardofli
ving
 Highlevelofunempl oyment .
 Highpopul ati
ongrowt h.

50
 (Ac ceptanyot herr el
evantc or r
ectans wers)
5.1.
3Bri
eflydes cr
ibet hec onc eptdependenc yrati
o
(2)
 Dependenc yrat i
oindi cateshowmanyyoungpeopl eundert heageof15andover
theageof64dependonpeopl eofwor ki
ngage( 16to64year sol
d)
(Ac ceptanyot herr el
evantc or r
ectans wers)
5.1.
4Explaininadequat einfras t
ructur easac our s
eofpover t
y.
(2)
 Inadequat ei nfrastructurer aisethec os t
sandr is
ksas soc iatedwithdoingbus i
nes
s
inac ountry,thisisamaj orc auseofpover ty.
(Ac ceptanyot herr el
evantc or r
ectans wers)
5.1.
5Howdoi ndigenousknowl edges ystemsc ontri
but et oec onomi cdevelopment ?
(4)
 Loc alknowl edget hatisuni quet oagi vensoc ietyorc ultur ebeusedt opursue
newbus i
nes svent urewhi chi mprovedt hes tandar dofl iving.
 Communi t
yus ekeyar eass uc hasagr icul
ture,ani malhus bandryandt reefor
her bsanddoi ngbus inesst oot herpeopl ether ebyear ni nc ome.
 Loc alcommuni tyandt hegl obalc ommuni tyf orm devel opmentpar tnershi
pto
adaptt othel ocalc ondi t
ionsandi ndigenouspr acti
ces.
(Ac ceptanyot herr el
evantc or r
ectans wers)

TOPI
C10MONEYANDBANKI
NG

51
WEEK
TOPI
C MoneyandBanki
ng
WEI
GHTI
NG
SUB-TOPIC/ Technicalfunct i
onsofmoney
CLARIFI
CATI
ON - Moder nmoney
- Money- associat
edi nst
rument s
- Themonet arysystem
- Theval ueofmoney
- Stabili
si
ngt hevalueofmoney
RELATEDCONCEPTS/ Money,Quas imoney,Cheques ,Cr editc ar
ds,el
ectronic
TERMS/VOCABULARY payment s,Infl
ation,interes tr
at e,monet arypol
icy,savi
ngs,
i
nvestment s,ec onomi cgr owth,r es ult
/lender,r
epor ate/
pri
mer ate,Mi cro- l
ending/Bankf ailure,Bankrun,
i
nsolvent,li
abilit
ies,recess i
on,depr ess i
on,shar
eholders.

FOUNDATI
ON- Ci
rcul
arFl
ow,Bus
ines
scyc
lesandI
nfl
ati
on.
KNOWLEDGEFOR
GRADE12
RESOURCES

● Textbookandwor kbooks
● Newspaper s
● Previ
ousquesti
onpaper s
● Posterswi
thdrawingsinthenot
iceboar
d
● Chalkboard
● Textbooks
● Examinati
onguideli
ne
● Newsbul l
eti
n
● I
nternet
ERRORS/MISCONCEPTIONS/ PROBLEM AREAS

● Di
ff
erenc
ebet
weenmonet
arypol
i
cyandf
isc
alpol
i
cy
● Int
erpr
etati
onofprof
it
sandl
oss
es
METHODOLOGY
● Groupdisc
us s
ions
● Wor
kingi
npai
rs
● Expl
anat
ionsbyeduc
ator
s(nar
rat
ion)
● Ques
tionandans
wermet
hod
● Peerexpl
anat
ion
● Combi
nat
ionoft
heabovemet
hods

ASSESSMENT Cl
asswor
k
Homeworks
Cl
asst
est

52
ACTI
VITI
ES 06ac
tivi
ti
es(
eas
y,aver
ageanddi
ff
icul
t)

ACTI
VITY1
1.
1 Var i
ousopti
onsar
eprovi
dedasposs
ibl
eanswer
stothefol
l
owingquest
ions
.
Choosetheans
werandwrit
eonl
ylet
ter(A-
D)nextt
otheques
tionnumber(1.
1.1-
1.
1.5)

1.
1.1 Thetotals upplyofmoneyi ntheec onomyi sknownas …….
A. M2
B. M3
C. M1
D. M1f orM2
1.
1.2 Afacil
i
t ywher ebyanac countholderisabletowi t
hdrawmorethanwhathe/ s
he
hasinthebankac countisknownas…
A loanf ac i
l
ity
B c redi
tc ard
C bankover draft
D mor t
gagebond
1.
1.3 Adepos i
tofmoneyi nthebankac countforaper i
odlongert
hanthreeyearsi
s
knownas…
A long- term depos i
t
B fixeddepos i
t
C Shor t-term deposit
D medi um- t
erm depos i
t
1.
1.4 Anexc hanger atesystem inwhichthevalueoft hecurr
encyi
sdeterminedby
marketf orcesis… exc hanger at
es yst
em.
A. fixed
B. managedf l
oat i
ng
C. monet ary
D. freef l
oat i
ng
1.
1.5 Abranc hofmac r
oec onomicsthatprovi
desaf rameworkforanal
ysi
sofmoneyand
it
sfunctionsisknownas……
A. monet aryec onomics.
B. moneys upply.
B. financialmar kets.
D. quant itati
veec onomics. 5x2 ( 10)

1.
2 Chooseadescr
ipt
ionfrom COLUMNBt hatmat
chestheit
em inCOLUMNA.Wr
it
e
onl
ythelet
ter(
A-I)nexttotheques
tionnumber(1.
2.1to1.2.
8)
COLUMNA COLUMNB

1.
2.1 Fl
atmoney D A.Moneythatmus
tbeac
cept
abl
easameansof
payment
.

1.
2.2 Cur
renc
y G B.Therat
eatwhi c
hbanksbor
rowmoneyf
rom
ther
eservebank

1.
2.3 Mor
alper
suas
ion C.Ref
erst
ohowqui
ckmoneyc
anbec
onver
ted
I
 i
ntocas
h.

1.
2.4 Exchanger
ate D.Moneythati
snotbackedupbyanyphys
ical
F as
setss
uc hasgol
d.

1.
2.5 Repor
ate B E.Gener
alr
isei
nthepr
icesofgoodsand

53
 ser
vic
eswhi
chl
eadst
oadec
li
nei
nthebuyi
ng
power

1.
2.6 Li
qui
dit
y F.Thepr
iceofonec
urr
enc
yint
ermsoft
heot
her
C

1.
2.7 I
nfl
ati
on G.Moneyus
edi
nas
pec
ifi
ccount
ry
E

1.
2.8 Legalt
enderA H.I
nter
estrat
esoff
eredbybankst
othei
r
pr
eferr
edcli
ent
s.

I
. Usedtoconvi
ncebankstoacti
nawaythati
s
desi
rabl
eincur
renteconomi
ccondi
ti
ons

8X1 (8)
1.
3 Pr
ovi
detheeconomicterm/conc
eptf
oreac
hofthefoll
owingdes
cri
pti
ons.
Wri
teonl
ytheterm orconc
eptnextt
otheques
tionnumber.

1.
3.1 Percentageofdepos itsatbankst hatmustbekeptonhandt omeets hor
t-term
andemer gencyf undingneeds .
Cashr eserves
1.
3.2 Theper centageatwhi chbankslendmoneyt otheirmostpref
erredcli
ents
.
Pri
mer ate
1.
3.3 Theamountofmoneyavai labl
ei nanec onomy.
Moneys upply
1.
3.4 Thenumberoft imest heavail
ablemoneys upplyintheeconomyc hangeshands .
Vel
oc i
tyofmoney
1.
3.5 Anac countf r
om whi chdepos it
edf undscanbewi thdr
awnatanyt ime.
Demanddepos it
1.
3.6 Aproc essofgi vingtoomanyl oanst omi cr
o- l
enders,whi
leincr
easingtheri
s kof
l
oansnotbei ngpai dbac k.
Over-expos ure

ACTIVI
TY2
2.1 Ans wert hef
ollowingques t
ions
2.1.
1 NameanyTWOexampl esofmaj orbanksinSout hAfri
ca.
(2)
Nedbank
Absa
Capitec
FNB
Standar dbank
2.1.
2 Explaintheimpor tanceofbanknot essecuri
tyfeatures.
(2)
Banknot ess
ec uri
tyfeatur
esas si
sti
nidentif
yinglegitbanknot
esf
rom f
akemoney.

(Acceptanyot herc orr
ectrelevantr
esponse.)
2.2 St udyt hepicturebelowandans werthequestionsthatfol
low.
MONEYASSOCI
ETEDI
NSTRUMENTS
Debi
tCar
d

54
2.2.
1 I dentifythemoneyi nstruments howni nthepictureabove.
(1)
Debi tcard
2.2.
2 Whati sthet hree- l
etterc odef orSouthAf r
icancurrency? (1)
ZAR
2.2.
3 Br iefl
ydes cr
ibet het erm bar teri
ngs yst
em. (2)
Bar t
erings ystem ist heexc hanges yst
em wherebygoodswer eexchangedf or
othergoods .
(Acceptanyot herc orrectrelevantr es
ponse.)
2.2.
4 Howdoesi nflati
onaf f
ec t
st hevalueofmoneyasas t
oreofvalue.
(2)
Infl
ationc ausesadec l
inei nthebuyi ngpowerofmoneyandt herefor
emakesi t
worthless
overt ime.
(Acceptanyot herc orrectrelevantr es
ponse.)
2.2.
5 Whyi smoneyanec ess i
tyint heec onomy? (4)
 Moneyf acil
itatest heexc hangeofgoodsands er
vicesintheeconomy.
 Moneyc ouldbes avedt oac c umulatewealthort obeus edatalaterdate.
 Moneypr ovidesameas uret hatenablestoputval ueongoodsands ervi
ces.
(Acceptanyot herc orrectrelevantr es
ponse.)

ACTI
VITY3
3.
1 St udyt
hepi
ctur
ebel
owandans
wert
heques
tionst
hatf
oll
ow.

NEW MONEY

Sour
ce:Sout
hAf
ri
canRes
erveBank

55
3.1.
1 I
dent ifythec urrenc ydepi ctedint hepi ctureabove.
(1)
Rand
3.1.
2 Whati sthehi ghes tdenomi nati
onofmoneys howni nt hepict
ureabove?
(1)
R200
3.1.
3 Briefl
ydes cri
bet het ermc reditcreat ion. (2)
Creditc reationi st hepr oces sofbywhi chc ommer cialbanksareabletoc r
eate
l
oansi nthef or m ofnewdepos i
ts.
(Acceptanyot herc orrec trelevantr es pons e.)
3.1.
4 Whydobanksr equi r
es ecurityagains ti s
s uingofl oans ? (2)
I
ft hebor rowerbec omesi nsolvent,s ec uri
tys er vesasaguar anteethatthe
fi
nanc ialinsti
t utionwi llbeabl etor ec overi tsmoney.
(Acceptanyot herc orrec trelevantr es pons e.)
3.1.
6 Howdoest heus eofel ectronicfundt rans fer(EFT)benef ittheeconomy?
(4)
 Electronicf undt ransferel iminatest her i
sksas sociatedwi thmoneyl os
s.
 Us i
ngEFTs avest imef orbot hbus ines sesandc us
t omer s
.
 EFTi sac onveni entmet hodofpaymentandc anbeus edf oronli
nepurchases
.
 EFTc anbedoneus ingac ellphone,c omput er.
(Ac c
eptanyot herc orrec trelevantr es pons e.)

ACTIVI
TY4
4.1 Ans werthefol
lowi
ngquesti
ons.
4.1.
1 NameanyTWOmeas uresofmoneys uppl
y.
(2)
M1
M2
M3
4.1.
2 Expl
aintherol
eofcapi
talmarketsi
ntheeconomy?
(2)
Capi
talmarket
sassi
sti
nprovidingf
inancef
orlongt
erm bor
rower
s.

4.
2 St
udyt
hegr
aphbel
owandans
wert
heques
tionst
hatf
oll
ow.

56
4.2.
1 I dentif
yt heper i
odwhent hec ons umerpr i
c eindexwasati tshighest.
(1)
January2009
4.2.
2 Whati st heSout hAf ri
c anRes erveBank’ sinflationtargetrange?
(1)
3–6%
4.2.
3 Br iefl
ydes cri
bet het erm pr imer ate.
(2)
Primer ateisthei nteres tratet hatc ommer cialbanksc hargetheircredit
wort
hy
customers.
(Acceptanyot herc orrec trelevantr es
pons e.)
4.2.
4 Expl aint hebenef i
tofhi ghCPIondebt ors.
(2)
Debt orsbenef i
tbec aus et heyr ec eivemoneywi thahighpur chasi
ngpowerand
repaytheirdebt
usingmoneywi thlowpur chasingpower .
(Acceptanyot herc orrec trelevantr es
pons e.)
4.2.
5 Howdoest her epor atei ncreas eaf fectcons umer s
?
(4)
 Ther epor ateincreas ec aus esapr i
mer ateinc reasewhi c
hmakesc ostsof
bor r
owi nghighf or
cons umer s
.
 I tresul
tst ohighc os t
sofl i
vingandputas tr
ai ninc onsumers’budget.
(Acceptanyot herc orrec trelevantr es
pons e.)

ACTIVI
TY5
5.1 Answerthef
oll
owi
ngques
tions
.
5.1.
1 NameanyTWOexampl
esofmoney-
ass
oci
atedi
nst
rument
s.
(2)

57
 Debi tcards
Creditc ards
Electronicfundstransfer
Cheques
5.1.
2 Whati stherolenationaltr
easuryintheSouthAf ri
canfi
nancialsyst
em?
(2)
Thenat i
onaltreasur
yr egul
atesthemonet arysystem worki
ngt ogetherwi
tht
he
SouthAfr
ican
Reser veBank.
(Acceptanyot hercorrectr
elevantresponse.
)
5.2 St udyt hec art
oonbel owandans werthequestionsthatf
oll
ow.

MONEYANDBANKI
NG

5.2.
1 I
denti
fyaninsti
tut
ionwher
epeoplecans avemoneyfr
om thecar
toonabove.
(1)
Bank
5.2.
2 Whatisanothernameformic
ro-
lender
s?
(1) Source:ww.
bus
ines
sti
mes.
co.
za
Loans harks
5.2.
3 Br i
ef l
ydes cri
bet heter mi nterestrates.
(2)
Inter estratesr ef ertot heamounti naf orm ofapercentaget hatalenderc harges
abor r
ower .
(Ac ceptanyot herc or r
ectr elevantr esponse.)
5.2.
4 Expl aint hepur pos eofNat i
onalCr editAc t
(2)
Nat ionalCr editAc tsetmaxi mum i nterestratesinorderprotectconsumer sagainst
beingchar ged
exc es si
vei nteres tratesbyc reditors.
(Acc eptanyot herc orrectrelevantr espons e.
)
5.2.
5 Howdoesbor r
owi ngf rom loans harksdisadvantagethec onsumer s?
(4)
 Themai ndi sadvant agewi thl oans harksisthattheychargever yhighinterest
rateswhi chmaymeanc us t
omer shavet opaydoubl etheloanamount .
 Peopl emayt akeupl oanst hatt heydon’ taffordtopaybac kwhi chcanputmor e
strainont hei rfinanc es.
(Ac ceptanyot herc or r
ec trelevantr esponse.)

ACTI
VITY6

58
6.2 Ans werthequesti
onsbelow.
6.1.
1. NameanyTWOofc ur
renci
es.
(2)
Rand
Doll
ar
Yean
Pound
6.1.
2 Whyar ebankc ardsmoreprefer r
edt hatus
ingc as
hmoney?
(2)
Bankcardsareeasytocarr
yt hanl oadsofcash.
Usi
ngc ardsr
educear i
skoflosingmoneyt hrought hef
tornegl
i
genc
e.

6.
2 Readt
heext
rac
tbelowandanswert
hequesti
onst
hatfol
low.
VBScus
tomer
squeuef
orthei
rmoneyatNedbank

TheSouthAf
ri
canRes
erveBankannouncedearli
erthisweekthatoverR300mill
i
onhad
beengivent
oNedbanktopayVBSr etaildeposi
torsaff
ectedbyt hecol
laps
eofthei
r
bank.

Theywi
l
lhaveac
ces
sofupt
oR100000onc
ethey’
veopenedanac
countatNedbank.

6.2.
1 I dent ifyt hebankt hatwasl i
qui dat edac cordingt otheext ractabove.
Hundr edsofpeopl ehavebeenqueui ngs i
nc eearlyonFr idaymor ni ngatbr anc
hesi
n
(1)
Limpopowher emanyVBSc ustomer sli
ve.
VBS
6.2.
2 Whati st henameoft hepol i
c yt hati susedt omanagemoneys uppl yint he
countr
y? (1)
Monet arypol icy
6.2.
3 Br ieflydes c r
ibet heterml i
qui dity.
(2)
Liquidi tyr eferst otheeas ewi thwhi chanas setc anbec onver t
edi nt
oc as h.
6.2.
4 Whyar ebanksadvi s
edt obec ar efulwhengi vi
ngl oanst ot hei
rclients?
(2)
Bec aus es omec li
entsmaybeunabl etor epayt heirloanswhi chc anr esulttobad
debts
(Acc eptanyot hercorrectrelevantr espons e.)
6.2.
5 Howdobankf ail
uresaffectthef inanc i
alindustry?
(4)
● I tres ultst odepos i
torsands har eholder slosi
ngs omeoral lofthei rmoney.
● I nves tor swi l
lbeunabl etoobt ainl oanst oexpandt heirbus i
nessesors tartnew
bus i
nes s es.
● Ther ewi l
lbel ackoft rus
tint hebanki ngs ystem whic hcanr esult
si nmor ebank
fail
ur es .
(Acc eptanyot hercorrectrelevantr espons e.)

6.3 Di
scus
sreas
onsf
orbankf
ail
ure.
(8)
Bankr un:
• Ar unont hebankhappenswhenal ar
genumberofbankc ust
omerswithdr
aw
theirdepos it
satthes ametimebecausetheyt
hinkthatt
hebankisbecoming
i
ns olvent.
• Thisc andes tabi
l
izethebanktothepointwhereitf
acesbankr
upt
c y.
Loanst hatarenotrepaid:

59
 • Banksal wayst akear iskbygr ant ingl oanst oitsc l
ients .
• Unf or tunat ely,notever ybodyr epayst heirl oansandt hei nt erest sont hem.
• Out st andi ngl oansar ebaddebtt hatc aus esabankt ol os ei ncomeandi nt hel ong
runf ai l
s .
Liqui ditys queez e:
• Banksf ailwhent heyar eunabl et omeett hei rday- to-dayobl i
gat i
ons ,inot her
wor ds ,whent heyar eunabl et opayt hei rbi lls.
Fraud,c or rupt i
onandmi smanagement
 Fr audr ef erst ott hemi sappr opr i
at ionort hef toff undsi nbanks .
 Cor rupt ioni st hedi s hones tandunl awf uldeedsofpeopl einpos itionsofpowerat
banks .
Diffi
c ultec onomi cs i
tuat ion:
• Ti mesofr ec es sionanddepr es s i
onc aus emanybankst of ailbec aus eoft he
dec reas ei nover al lec onomi cac tivity.
Uns tabl epol iticals ituat i
on:
• Unc er taint yi npeopl ec anbec aus edbypol i
ticalunr est ,canr esultinmanypeopl e
wi t
hdr awi ngt hei rdepos it
sandt husc aus ingabankt of ail.
(Ac c eptanyot herc or rec trel evantr es pons e.)
6.4 Di sc us st heai msoft hemonet ar ypol icyi ns trument s.
(8)
 Topr ot ec tt heval ueoft hec urr enc yi nor dert oens ur eec onomi cgr owt h.
 Toc ont rolmoneys uppl yandc redi tlevel st ot headvant ageofbot hcons umer s
andbus ines s es .
 Tomanages tabl ec ondi tionsi nt hef inanc ials ectors ot hatbanksdon’ tfac et he
ri
s kof
 Fai lur e.
 Toes tabl i
s hi nt er estr at est hatwi llenc our agei nves t
ment sands avings ,butar e
affor dabl et ot hos ewhowantt obor rowmoney.
(Ac
c eptanyot herc or rec tandr elevantr es pons e)
6.5 Anal ys et her eas onsf orpeopl et ous el oan–s harkst obor r
owmoney?
(8)
 Peopl emayc hoos et ogetl oansf rom l oans har kswhent heydon’ tmeet
affor dabi l
ityr equi r
ement ssetbybanks .
 Iti seas yt oobt ainl oansf rom l oan–s har ks,wi thoutanys ec urityneeded.
 Loans har ksar eeas il
yac c ess i
bl ewhenpeopl eneedemer genc yfinanc ing.
 Thos ewhodon’ tl i
ket hei rnamesbei ngl i
stedonc r
edi tbur eaupr eferbor r
owi ng
from l oans har ks .
 Peopl emayenj oyt her elat i
onsandunder standi ngt hatt heybui l
dwi thl oans harks.

6.6 Howdos avi ngspos iti
vel yi nfluenc et heec onomy?
(8)
 Theavai labi lityofs avi ngsi nt heec onomymakesi tpos s iblef orinves tor sto
bor rowmoneyf rom bankst os tartorexpandt heirbus ines ses .
 Theyhel pc ons umer sbeabl et odealwi thf i
nanc i
aldifficult i
esdur ingr ecess ion
wher ei nf lationt endst obehi gh.
 Whenpeopl es ave,t hec ount ryc anbeabl et omai ntainas t
abl eexc hanger ateby

60
 avoi
dingdemandpul li
nfl
ati
on.
 Savi
ngsenabl epeopletoc r
eateweal t
hf orthems el
vesandt hei
rfami
li
eswhic
h
endups pil
li
ngovert otheec onomy.
 Savi
ngsc ontr
ibut
et othegener almac roeconomi cstabil
it
ythroughvar
ious
i
ndirectposi
ti
veeffectsonempl oymentandot hervariabl
es.
(Acc
eptanyot hercorrectandr elevantresponse)

ACTI VI
TY7
 Disc ussi
ndet ai
lsthemai nf
unc ti
onsoftheSouthAfri
canReserveBank.
(26)
 Howc ant heSout hAfri
canreservebankstabi
li
zetheval
ueofmoney?
(10)
I
ntroduc t
ion
SouthAf ri
canRes erveBanki sanationali
nsti
tut
ionthati
ssuesbanknotesandcoi
nsand
i
sr esponsible
forcontroll
ingandr egulati
ngc r
edi
taswel lasmonetarypoli
cyinacountry.

(Max2)
(Acceptanys uitabl
eintroducti
on)

BODY(MAI NPART)
1. Actasabankerandf undi ngagentt ot hegover nment 
 TheBankc onduc t
sac hequeac countf orthegover nmentandot herStat
eOwned
Ent erprises(SOEs ).
 Admi nis
terst hef i
nanc ialac count
sforal lthreelevelsofthegovernmentaswel las
variouspar astatal
s.
2. Issuesc oinsandbanknot es
 TheSout hAf r
icanRes erveBankhast hesoler i
ghttopr oduce,i
ssueanddestroy
banknot esandc oinsint hec ount
ry.
 S.AMi nt&Not esc ompani esar esubsidiarycompani esoftheRes er
veBank,they
manuf acturec oinsandnot es.
3. Cus todianofgol dandf oreignr eserves
● TheSARBac tsasc us todi anoft hec ount r
y’soffi
cialgoldandotherforei
gn
exc hange. 
● Italsomar ketst hegol dout putofthec ountr yoninternati
onalmarket
s,payi
ngt he
mini nghous esinac ombi nat i
onofRandsandDol l
ars.


4. Setsthemonet aryandexc hanger at

epolici
es
 SARBi sr
espons ibleforformingandi mplementingthemonet arypolicyofthe
st
ate.
 Thegovernoroft heSARBi sassis
tedbyt heMonet aryPolicyCommi ttee(MPC)to
decideonany
changest omonet ar
ypol ic
y.
 TheSARBi sr esponsibl
ef orthestabil
it
yoft heexchanger at
ewhi c
hi stherateat
whichonec urrenc yi
sexc hangedf oranothercurr
ency.
5. Control
sinflati
on
 TheSARBs etsagoalf orinfl
ati
on( between3%and6%) ,t
hisiscal
ledinfl
ati
on

61
 targeti
ng.
 Wheni nfl
ati
onris
esthebanki ncr
easestherepor ate(reduci
ngthedemandf
or
credit
).

 Wheni nfl
ati
ondropsitreducesthereporate(s
timul at
ingthedemandfor
credit
).

6. I
ti salenderi
nthelastresor
t
● Shouldbanksrequir
ec ashurgentl
y,t
heyc angetc ashadvancesfr
om t
he
SARB.
● Thispracti
ceaddstostabil
it
yinthebankingsector.
● Bankst henr epaythel oanpl usinterestatt her eporate,i
nt hewaySARBc ont
rols
theli
quidityitall
owsont hemar ket.
7. Controlsthebanksandt hebanki ngs ystem
 TheSARBkeepss tri
ctc ontroloft heact i
vit
iesoft hebankings ectorandhasa
departmentf orbankings uper vi
si
on.
 Thec l
aimsbet weenbanksar es ettl
edonadai l
ybas i
sbyt heSARB. 
 Cli
entsf r
om BankAdepos i
tc hequesf r
om BankBi ntotheiraccountsandthes
e
chequeshavet obec leared.
8. Compi l
esandpubl i
shesmac roec onomicdat a
 TheSARBpubl i
shesstat i
sti
csaboutt heec onomyi ni
tsQuar terl
yBullet
inandin
severalotherpublicati
ons .
 Allparti
est hatareint
er estedbenef itfrom suc hinfor
mat i
on.
 Thec ompl eteSARBQuar terlyBul l
eti
nisavai l
ableont heinternet
.
(Max26)

ADDI TIONALPART
Howc ant heSout hAf r
icanr eservebanks t
abi l
izethevalueofmoney?
(10)
 Ther es ervebankc anincreas einteres trateswhent heinfl
ationratei shighin
ordert odi scour agepeopl ef r
om t akingoutl oansorbuyi ngonc redit.
 Bys ettingac ashr eserver equi r
ementwhi chprevent sbanksf rom lendingoutal l
moneyt oclients.
 Sel li
nggover nmentbondsc analsobeus edasawayf orther eservebankt o
withdr awmoneyf rom cir
c ulati
on.
 Bys ettinginf lat
iont argetingwhi c hhel pskeeppr i
ceslowbyc ont r
olli
ngi nt
erest
rates .
 Ther es ervebankc anus emor alsuas i
ont ogetbanksmaki ngt herightdec i
sions
whengr anti
ngc redit.
 Byal sowor kingc loselywi thgover nmenti nmanagi ngs alaryincreasestoavoi d
over spendi ngons alari
est hatmaypus hupi nf
lati
on.
(
5x2)( Max10)
Conc l
us i
on
Allt
hef unc ti
onsoft heSout hAf ricanRes erveBankmus tbepr operlyexec utedby
everyoner es pons i
bl e,toens ureanef fi
cientandef fect
ivebanki ngs ervi
cei nthe
country. (Max2)

62
 TOPIC11GLOBALI
SATI
ON
LESSONPLAN:GRADE11
TOPIC:GLOBALI
SATI
ON
Ter
m 4 Week 2

Dur
ati
on 4HOURS Wei
ght
ing 20%

Sub-
topi
cs  Meaningofglobali
sati
on
 Causesofglobal
is
ation
 Consequencesofglobali
sat
ion
 Nort
h/southdivi
de
RELATED Absoluteadvant age,ec onomicint
egration,freet r
ade,global
is
ation,free
CONCEPTS/TERMS tr
ade area,i nternati
onali
sati
on ,integrati
on,For ei
gn DirectInvest
ment
/VOCABULARY ,
multi
nationalenterpri
se,tr
adeblock,regional
i
s at
ion,quot
a/s,multi
nati
onal
corporat
ions,thewor l
dbank.
PRI
OR-
KNOWLEDGE/BACKGROUNDKNOWLEDGE
o Pover
tyc
onc
ept
o Sc
arc
itypr
obl
em
o Mar
ketf
orc
es
o Sout
hAf
ri
canec
onomi
cgr
owt
handdevel
opment
o Ec
onomi
credr
ess

RESOURCES
o Text
books
o Magaz
inesNews
paper
s
o Mapoft
hewor
ld
o TV&r
adi
ocover
ageonmar
ket
s
o Pos
ter
s
o I
nter
net
o St
ati
sti
cs:SARB,St
ats
SAQuar
ter
lyBul
l
eti
n
o Pas
texam paper
s

ERRORS/
MISCONCEPTI
ONS/
PROBLEM AREAS

 Confuseabsoluteandc ompar
ati
veadvantage.
 Fai
ltodiff
erentiatebetweenmulti
nati
onalcorpor
ati
onsand
mult
inati
onalcor porat
ionandmulti
nati
onalenter
pri
ses
 Nort
h- s
outhdi vide
METHODOLOGY

63
 o Br
ief
lydes
cri
beandexpl
aint
her
elevantc
onc
ept
o Br
ief
lydes
cri
be–For
eignDi
rec
tInves
tment
(FDI
)
o Di
scus
stheWor
ldTr
adeOr
gani
sat
ion(
WTO)
.
o Br
ief
lyexpl
aint
hemai
nobj
ect
iveswi
tht
heMi
l
lenni
um Devel
opmentGoal
s(MDGs
)
o Br
ief
lydes
cri
beaFr
eeTr
adeZone(
FTZ)
o Bri
efl
ydebat
et heeff
ect
sofec onomicintegr
ati
on,useexamplest
omot
ivat
eyour
ar
guments
o Examinei
ndetailt
hecausesandc onsequencesofgl
obali
sat
ion
o Debat
ethepos
iti
veandnegat
ivec
ons
equenc
esofgl
obal
i
sat
ion
o Compar
ethec
har
act
eri
sti
csofr
ich(
Nor
th)andpoor(
Sout
h)c
ount
ri
es.

ACTI
VITI
ES
Teac
herAc
tivi
ti
es Lear
nerAc
tivi
ti
es
 Provideas ummar yofwhatl earner sare  Ac t
ivel
yparti
ci
patebymarki
ng
expec tedt olearndur ingtheless on. classworkandhomework
 Conduc tbas el
ineas sessmentofgr ade  Makenot esbasedonnewc ont
ent
10c ont entandgi vef eedbackt ol earner
s taught
beforet hes tartofgr ade11wor k.
 Thet eac herwi l
lthenpr esentthel esson
byus ingdi rectinstr
uc ti
onmet hod.
 Givelear nersac ti
vit
iestowr i
te
ASSESSMENT
o Cl
assTes
t
o Dat
ares
pons
e
o Cl
ass
wor
k
o Homewor
k
o Es
sayques
tion

ACTI
VITY1
1.
1 Thevar
iousopt
ionsar
epr
ovi
dedaspos
sibl
eans
wer
stot
hef
oll
owi
ngques
tions
.
Choos
ethec
orr
ectans
werandwr
it
eonl
ythel
ett
ernextt
otheques
tionnumber
.E.
g.
1.
1.6D
1.
1.1 Atypeofi ntergover nment alagr
eementwher ebarri
erstot
radear
ereduc
ed
amongpar t
icipatings t
atesisknownas ………….
A.t r
adebl oc 
B.bui l
dingbl oc
C.banki ngbl oc
D.bus i
nes sbl oc
1.
1.2 Theproces sofi nteract
ionamongt hecountr
iesoftheworl
dtobri
ngthei
r
economiesc losert ogetheriscal
led---
- --
-------
------
A.global i
zation
B.indus tr
iali
sation
C.integration

64
 D.liber at i
on
1.1.
3 Agr oupi ngofc ountri
est ogetmor econtrolovertheglobaleconomyi scall
ed----
--
A.int egr ation
B.For eignDi rectInvestment
C.Fr eeTr ade
D.Int ernat ional i
sati
on
1.1.
4 Thei ns ti
t utiont hatisrespons ibl
ef oras si
sti
ngc ountri
eswi t
hbalanceofpayment
defi
citisknownas ……. .
A.Int ernat ionalLabourOr ganisation
B.Wor l
dbank
C.Int ernat ionalMonet aryFund
D.Wor l
dTr adeOr ganisation
1.1.
5 As oc i
o- ec onomi candpol i
tic
aldi visi
onbet weent hewealthydevelopedandt he
poorerdevel opingc ountriesiscal l
ed- -
--------
A.Sout hdi vide
B.Nor thdi vide
C.Nor th- Sout hdivide
D.Ec onomi cdi vi
de
(5x2)10
1.2 Chooseades criptionfrom c olumnBt hatmatchest heit
em inc ol
umnA.Wr iteonly
thelett
ernextt ot heques ti
onnumberi nt heanswerbook.E. g.1.2.6G
COLUMNA Ans wers COLUMNB

1.
2.1.Capi
tall
i
ber
ali
zat
ion D✓ A.Anorgani
zat
iont
hati
sini
ti
atedt
rade
l
iber
ali
zat
ion

1.
2.2I
MF F✓ B.Acountr
ycanproducemoreoutput
witht
hesameinputthananot
her
count
ry.

1.
2.3.I
nter
nat
ional
i
sat
ion E✓ C.Tr
adei
sani
mpor
tantel
ement

1.
2.4.
GATT A✓ D.Removalofr
est
ri
cti
onss
uchast
ari
ff
s
andquotas

1.
2.5.Abs
olut
eadvant
age B✓ E.Extens
ionofec onomicac
tivi
ti
es
acros
snationalborder
s

F.Anins
tit
uti
onofstandar
dizedtrade,
BOPandexc hanger
ates,i
nternat
ional
l
endingandbor r
owi
ngs.

(
1×5) 5

1.
3. GiveONEt ermforEACHofthefoll
owi
ngdescr
ipt
ions.Wr
iteONLYt heterm nextt
o
thequesti
onnumber(1.3.
1-1.
3.6)i
ntheans
werbook.Abbreviat
ions,ac
ronym and
examplesWILLNOTbeac cept
ed.
1.
3.1 Tradeunifi
cat
ionbet
weendiff
erents
tat
esbyparti
alorf
ullabol
ishi
ngofc ust
oms

65
andtar
if
fsont r
ade.
Economi cintegrati
on✓
1.
3.2 Thegr oupoff ir
sttwentymos ti
ndust
ri
ali
sedcountri
es.
G20✓
1.
3.3 Apol icyt hatli
mitsthequanti
tyofsuppl
ythatcanbei mported.
Quot as✓
1.
3.4 Thet radingofgoodsands ervic
esbetweencountri
eswithlessr
edtape.
Freet rade✓
1.
3.5 Busines sesthatar eproduc
inggoodsorservi
cesinmor ethanonec
ountry.
Multinationalent er
pri
ses. ✓
(
1×5) 5

ACTIVITY2
2.1Studyt hef ollowingext rac tandans wert heques tionst hatf ollow.
China’sFr eeTr adeZoneSeeRobus tGr owt hinQ12023
FreeTr adeZones( FTZs )inChi nawi tnes sedar api df or eignt radeandi nves tment
growthi nt hef irstquar t
er( Q1)t hisyearwi tht het otalf oreignt radeofi t
s21FTZs
amount ingt o1. 8tri
lli
onYuan,upt o6. 6%yearonyear ,ac c ordingt othemi ni
stryof
commer ce.
Thegr owt hr at ewas1. 8%hi ghert hant henat ionallevelac cordingt ot hemi nis
try
spokesper son.For eignDi r ec tInves tment( FDI ),int hes eFTZsi nac tualros eby22. 1%
from ayearear li
erto71. 9bi ll
ionYuan.
Sour ce:Fi bre2Fas hi
onNewsDes k:16May2023
2.1.
1 I
dent i
fytheor gani zationt hatr egul at est r
adebet weenc ountries.
(1)
Wor l
dTr adeOr gani s
at i
on✓
2.1.
2 Ment i
ononememberc ount ryofBRI CSbes idest heonement i
onedi nthe
extr
act. ( 1)
Braz il
,Rus sia,Indi a,Sout hAf rica✓
2.1.
3 Br i
ef l
ydes c ri
bet hec onc eptf or eigndi r
ecti nves tment .
(2)
Af orm ofi nves tmentwher eaf or eignc ompanyi nves tsinabus i
nessint he
form ofbui ldings ,mac hinesandequi pment ..✓✓
(Acc eptanyot herc orrectandr elevantr espons e)
2.1.
4 Expl aint hebenef itsofbei ngpar toft hef reet radez one.
(2)
 Af reet radez oneenc our agesc ompet iti
onwhi chc ons equent l
yincreas esthe
count ry’sef fi
c i
enc y.✓✓
 Empl oymentc r
eat edbyt hes ez oneshel pr educ eunempl oymenti nles sdeveloped
economi es .✓✓
 Count riesenj oyr educ tioni nt axes ,cus tom dut iesandr equi rement sfor
registrationofbus iness es .✓✓
(
Ac ceptanyot herc orrec tandr elevantr es pons e)

2.
1.5 Howdi
dRus
siaandUkr
ainewaraf
fec
ttheSout
hAf
ri
canEc
onomy?

66
 (4)
 Thewart r
igger
edahuges hocktot
heSout hAfri
canec onomyes pec
ial
lyt
o
energyandfoodmar ket
s,li
miti
ngsupplyandpus hi
nguppr ic
est oextr
emehi
gh
l
evels.✓✓
 Aninc r
easei
ninves
torunc er
tai
ntyl
eadt oadepreciati
onoftheRand✓✓
(Acceptanyothercor
rectandr el
evantres
ponse)

2.
2.Brieflydi scus st hec hangesi nempl oymentcondi ti
onsandchangesi ncultur
eas
cons equenc esofgl obal isation.
(8)
Changesi nempl oymentc ondi t
ions :
 Wi thgl obal isat i
onMNEsmakeFDI si nbus inessindevel opingcount r
ies
gener at ingempl oyment✓✓
 FDI spr ovi der ewar dingempl oymentoppor tuniti
es✓✓
 Gl obal isat i
onhasl edt ojobl os sesindevel opedc ount ri
es✓✓
Changesi nc ulture:
 Ther ei sani nc reas ei nthedes iretous ef oreignideas✓✓
 Gl obal isat i
onhasr es ultedi ns everalc ulturesc omi ngt oget her✓✓
 Peopl eofonec ul tur edis covers hortcomi ngsi ntheirc ulturewhent heyc ome
i
nt oc ont ac twi t hot herc ultures✓✓
 Theyadaptas pec tsofot herc ultur
est hatar emor eint unewi ththet i
mes✓✓
(Acc eptanyot herc or rec trelevantr espons e)
2.
3 Anal yset heef fec toft heCovi d-19pandemi congl obalisati
on.
(8)
 Wi tht hei nitialloc kdownt her ewasnot ravelal l
owed,butgoodswass ti
llal
lowed
tomovebet weenc ount ri
es ✓✓
 Peopl es t
oppedt ravel ling,butot hermeansofc ontac ti
ngpeopl ebec ame
promi nent .✓✓
 Ther ewasagr eat ermovet opr ocur i
nggoodsvi aonlinepl atforms,so
global i
s ati
onhasc ont inued.✓✓
 Impr ovedt echnol ogymeanspeopl ehaveac c esstoinf ormat ionandevent sin
otherc ount r
ies ,sot hepandemi cs eemst ohavepr omot edgl obal
isat
ion✓✓
 Unempl oymentr at ei nc reas eddr as ti
call
ys inc eindividualswer enotper mitt
edto
searc hf orwor kinc reas ingt heunempl oymentr ateevenf urther.✓✓
(Acc eptanyot herr elevantc orr
ec tans wer )
ACTIVI
TY3
3.
1 St udyt hepi ctur ebel owandans wert heques ti
onst hatf oll
ow.

67
3.
1.1 Ident i
fyonedi seaset hatcanbeast her esultofgl obalisati
on
(1) Fibr
e2Fas
hionNewsDes
k:
Ebol a,Mal ari
a,HI V,Dengue✓
(Acceptanyot herc orrectrelevantr es
pons e)
3.
1.2 Nameonememberc ount r
yofG8c ountries.
(1)
Canada,Fr anc e,Ger many,Italy,Japan,Rus si
a,UK,USA✓
3.
1.3 Br i
eflydes cri
bet hec onc eptc ompar ati
veadvant age.
(2)
Oc cur swhenonec ount rycanpr oduc ec ertaingoodsatal ower
oppor tunit
yc ostthananyot herc ount ri
es ✓✓
(Acceptanyot herc orrectrelevantr es
pons e)
3.
1.4 Whyar edevel opingc ountriesmor eaf f
ec tedbyc l
imatec hanget han
devel
opedc ount ri
es?(2)
 Thedevel opingc ount r
iesexper ienceadec l
inei nthepr oduc ti
onofagr i
c ul
tural
produc t
sduet oclimatec hange✓✓
 Devel opi ngc ountriesdonothavepr oduc tiveandf inanc i
alc apaci
tytor espond
tothet hr eadsofc li
mat ec hange.✓✓
(Acceptanyot herc orrectr el
evantr es pons e)

3.
1.5 Howwi lltheabol ishmentofgl obalis
ationi mpacttheSout hAfri
can
Economy? (4)
 Produc ti
onwi lldecreas east hec ountryreliesonimpor t
ingc api
tal
.✓✓
 FDIsdec reas er esulti
ngi ninc r
eas einunempl oyment.✓✓
 Produc erswi l
lnotbeabl etoexpor ttheirpr oduct
stoot hernati
ons.✓✓
(Acceptanyot herc orrectrelevantr esponse)
3.
2 Briefl
ydi s
c usstradel i
ber ali
sationands tandardi
zati
onascaus esof
gl
obali
zat
ion. (8)
Tradeliber ali
sat i
on
 Tradeliber ali
sat i
onmeanst her emovalorr educ ti
onoftr adebarri
erst
hat
restr
icttradebet weenc ount ri
es ✓✓
 Thesebar r
iersi ncl
udet ari
ff
s ,suchasdut i
esands ur
chargesandnon- tar
if
fs
suchasl icens ingrulesandquot as.✓✓

68
  Tr adel i
ber ali
s ati
onpr omot esfreet radewhi challowsc ount riestot r adegoods
withoutr egul atorybar ri
ers.✓✓ Max.4
Standar di zation
 St andar di sationr efer st omaki ngt rader ulesthes ameal lovert hewor l
d,
maki ngi teas i
erf orc ount r
iestot radeandi nvesti nter nat i
onal ly–c ountries
havet oc onf ormt oaf i
xeds etofr ules .✓✓
 Thos ewhoar es ubj ec tedtot herul esbehavei nas i
mi larmanner ,whi ch
promot esgl obal isation.✓✓
 Thei ns titut i
onsi nc ludet heWor l
dTr adeOr ganisat i
on( WTO)whi chf aci
l
itat ed
internat ionalt radeagr eement s,tariffpol i
ciesandt hepr ot ect i
onofi ntell
ec tual
proper t y.✓✓
(Ac ceptanyot herr el evantc orrectr es pons e)Max.4( 8)
3.
3 Anal yz et heenvi ronment alandec onomi ccos tsasef fect sofgl obalisat i
onont he
SouthAf ricanec onomy. (8)
Environment alc os ts
 Theover pr oduc t
ionl eadst oexpl oitationofnat uralr es our ces.✓✓
 Themanuf actur i
ngpr ocessleadst opol lution,whi chnegat ivelyinf l
uenc est he
envir onment .✓✓
 Theover - cons umpt ionl eadst oshor tagesi nnat uralr es our cess uc haswat er.
✓✓
Economi cc os ts
 Tr adel i
ber ali
s ati
onf avour sc ompet itiveindus tri
esandpenal ises
unc ompet i
t i
veones ,t husfavour i
ngdevel opedc ount riesandnotdevel opi ng
count r
ies .✓✓
 I trequi rest her econs tructi
onandr efor m ofec onomi es ,whi chi sc ost l
yand
smal lerec onomi esc annotaf fordt his.✓✓
 I tenc our agesbr aindr ain,whi c
hc r
eat ess ever eshor tagesofs kil
ledl abouri n
devel opi ngc ount ries .✓✓
ACTIVITY4
4.
1St udyt hepi ctur ebel owandans wert heques t i
onst hatf ol l
ow

Source:amaz
onU.
K
4.
1.1 I
dent
if
yonec
ount
ryt
hati
sregar
dedasadevel
opedc
ount r
y.
(
1)

69
 Canada,J apan,Denmar k,Aus trali
a,Fr ance,( Acc eptanyot herrel
evant
corr
ectresponse)✓
4.1.
2 Whatar et hephenomenadepi ctedbyt heabovepi cture?
(1)
Nor th-Sout hDi vi
de✓
4.1.
3 Br ieflydes cribet hec onc eptt radeliber al
ization
(2)
Theabol ishmentofgover nmenti nterventioni nt radef lowsonbot ht he
i
mpor tand
expor ts ide.✓✓
4.1.
4 Whyi si tbenef ici
alforc ount ri
est oengagei nf reet rade?
(2)
o Fr eet radec aus esint ernat i
onals pec iali
sati
onasi tenabl esthediff
erent
count riest opr oduc egoodsi nwhi cht heyhaveanadvant age.✓✓
o Itpr omot esi nternationalt r
adeandal sopromot esf oreigndirect
i
nves t
ment .✓✓
(Acc eptanyot herc or rectrelevantr es pons e.)
4.1.
5 Howdoesgl obal isationnegat ivelyaf fectSout hAf r
icaint ermsofc ul
ture
andpolluti
on?(4)
 Los sofc ultur eandi dent it
yasSout hAf ric
anst endst oadoptWes ter
n
cultures hyingawayf rom t heirown.✓✓
 Thepol lut i
onofmas spr oduc tioni ndevel opedc ount ri
esleadt odrought,
fl
oodsandnat uraldis astersindevel opingc ount ri
es✓✓
4.2 Di fferent iatebet weenc ountriesint heNor thandc ount ri
esintheSout hin
termsofperc apitainc omeandl i
feex pectanc y.
(8)
Nor th( Devel oped) Sout h( Developing)

Per
-capi
ta Percapitai
ncome-appr oximatel
y 85%oftheworl
d
87%oft heworld'
st ot
ali
ncomei s popul
ati
onl
ivesononlyone
producedby15%oft hetotal fi
ft
hoftheworl
d’si
ncome.
populati
onandl i
veinthe ✓✓
economical
lydevelopedregions
ofthewor l
d✓✓

Lif
e Lifeexpec
tancyindeveloped Lif
eexpec tancyin
expec
tanc
y countri
eshighandcurrentl
y developi
ngc ountriesisl
ow
standsatabout75years.✓✓ duetopr oblemss uchas
malnutri
ti
on,diseas eandil
l
healt
h.Lifeexpectancyis48
years.✓✓

4.
3 Anal ysethec onsequencesofgl
obal
i
sati
on
• Economi cgrowthi nmostcount
ri
esgrowsfas
terbecaus
et heyhaveacc
essto
i
nter
nati
onalmar kets
.✓✓
• Empl oymentisc r
eatedasneedtoproducemoregoodscreatesdemandformor
e

70
l
abour .✓✓
• Bal anc eofpayment sImpr ovesbec aus eofexc essex por tsc ompar edt ot hevalue
ofi mpor ts.✓✓
• Pover tyal leviation:Gl obal i
s ationr educ est hel evelsofpover tybec auset herear e
mor ej obs
avai l
abl e.✓✓
• Spr eadofc ulture:gl obal isat i
onhasr esul tedi ndi fferentc ulturesc omi ngt ogether
r esul ti
ngi ndi fferentc ultur esf or mi ngac ompl et el
ynewc ultureoft heirown.✓✓
• Emer genc eofwor ldc ulture:wor ld- wide,t herei sani nc reas eint hedes ir
et ouse
for eigni deas ,produc ts,t echnol ogyandpr acticest obepar toft hewor l
dc ult
ure.
✓✓ (8)( Ac ceptanyot herr elevantandc orrectans wer )
ACTI VI TY5
 Exami net hec aus esofgl obal izat ion.
(26)
 Howc anSout hAf r i
cabenef itfr om t radeagr eement ss uc hasBRI CS?
(10)
I
NTRODUCTI ON
Global is ationi st hewor ldwi dei nt er f
ac ingandi nt erac ti
onofec onomi eswi tht radeasan
i
mpor tantel ement ,andI CTmaki ngi tpos sible✓✓
Max2( Ac ceptanyot herr elevantr espons e)
MAI NPART
Tec hnol ogi c alc hanges
Global is ationhasbeenmadepos siblebyt echnol ogicalc hanges .✓✓
Muc hoft hec hangesar eevol ut ionar yandof tenunnot icedbutext remel ys ignifi
cant.✓✓
I
nf ormat i
ont ec hnol ogy✓
I
Ti sbas edont hec onver genc eoft woi ni t
iallys epar at etec hnol ogi esnamel y,
communi cat iont ec hnol ogi esandc omput ert ec hnol ogies.✓✓
Bot ht ec hnol ogi eshappenwi tht heai dofc omput ersandmobi l
ephonesar edeveloped
toper for ms imi larf unc t
ions .✓✓
I
nf ormat i
onc anber etri
eved,s tudi ed,c hanged,di stributedands toredagai n.✓✓
Newpr oduc tionpr oc esses✓
I
Tbr oughtaboutnews ys temsofpr oduc tionbas edonext ens i
vec ommuni cati
onand
trans por tat ionnet wor ksatl owerc osts .✓✓
e. g.c omponent sofmot or carsar emadei ndi f
fer entpar tsoft hewor l
dandas sembl edin
otherpar tsoft hewor l
d✓✓
I
Tper mi tss er vic est obedi sc onnec tedf rom pr oduc t i
onandt radedorper formed
remot elye. g.ac c ount ingandc allc ent res.✓✓
Trans por tationandc ommuni cat i
on✓
Global is ationi sver ydependentonc ommuni c ationandt rans por tati
on✓✓
Trans por tations ys temsar emeansbywhi c hmat er i
als,pr oduc tsandot hert angiblethings
aret rans por tedf rom pl ac et opl ac e✓✓
Communi c at i
ons ys temsar et hemeansbywhi chi nfor mat ioni st rans mittedf rom placeto
plac ei nt hef or m ofmes sages ,ideas ,i ns tructions ,images ,dr awi ngset c✓✓
I
Tt r
ans formedbot ht het echnol ogi esoft rans por tationandc ommuni cation✓✓
Tradel iber alisat ion✓
Tradel iber aliz ationi sther emovalofr es t
rictions✓✓e. g.t ariffsandquot as✓

71
Tradel i
ber alizationwasar esultof:
TheGener alAgr eementonTar if
fsandTr ade( GATT)✓
Member snegot iat edf ort hegr adualr emovalofi nternat i
onaltrader estricti
onsand
barri
ersandmet hodst oinc r
eas epar ti
cipationandvol umesoft r
ade
Therol ewast akenoverbyt heWor ldTr adeOr ganisation( WTO)i n1994✓✓
WTOens ur est hatagr eement sthatar ereac hedar ehonour edandac tsasmedi atori
n
tr
adedi sput es✓✓
Exportpr omot i
on✓
Thesear ei nc ent ivest hegover nmentgi vest omanuf ac turer
st oenc our aget he
manuf ac turingofgoodst hatc anbeexpor ted.✓✓
Partofi tist oenc our agef oreigndi rectinves tment✓✓
Freetradear ea✓
Count ri
esr emoveal ltradebar ri
ersamongt hems elvesongoodsands ervicestraded✓✓
Eachc ount ryhoweverc ontinuest ooper at eitsownt radebar r
iersagains tther estofthe
world✓✓ ( Max26mar ks)
ADDITI ONALPART:
Howc anSout hAf ricabenef itfrom tradeagr eement ss uchasBRI CS? (10)
 Newf oreigndi rectinves tmenti nSout hAf ricafrom devel opedc ount ri
esincreasing
thec ount ry’ sec onomi cgr owth✓✓
 I nc reas ingmar ketingoppor tuniti
esf orSout hAf ricanexpor tproduc tsbyexpos ing
them t odi ffer entc ount ri
es ✓✓
 Lar gerc hoic eofpr oduc t
sduet ohi ghc ompet i
ti
ont herewi llbeavar ietyofgoods
ands er vicest oc hoos ef r
om.✓✓
 Sout hAf ri
c aear nsf oreignr evenuewi thexpor t
ses peciall
ywi thmer chandisegol d
expor ts.✓✓
 Rebal anc i
ngt heBal anc eofPaymentwher ethei mpor tedgoodsar eequi val
entt o
thequant ityofexpor t
edgoods ✓✓.( Ac ceptanyot herr el
evantandc orrectanswer )

CONCLUSI ON
Globali
sat
ionhelpedtheeconomiesgrow,reducedunemploymentindevel
opi
ng
countri
esandc r
eatedmarketsforcountr
ieswithabsol
uteadvant
age.✓✓ (
Max2)
(Acceptanyothercorr
ectrel
evanthigherorderres
ponse)

72
TOPI
C12ENVI
RONMENTALDETERIORATI
ON
WEEK Ter
m 4:week3and4
TOPI
C ENVI
RONMENTALDETERI
ORATI
ON
WEI
GHTI
NG
SUB-TOPIC/ Theenvi ronment
CLARIFI
CATI
ON Thepr oblem
Protecti
ngt heenvironment
Appr oachest osust
ainabil
it
y
Globalandl ocalimpactonSout hAfri
c a.
RELATEDCONCEPTS/ Labourdemand;l aboursuppl y;equil
ibrium point
;
TERMS/VOCABULARY equili
bri
um pr ic
e;equil
ibri
um quant it
y;s urpl
usoflabour
;
shortageofl abour
PRI
OR-KNOWLEDGE/ Scarcit
ypr oblem,economi credress,i
nt ernati
onaltr
ade
BACKGROUND andpopul at
iondynami cs
.
KNOWLEDGE
RESOURCES

● Textbookandwor kbooks
● Newspaper s
● Previ
ousquesti
onpapers
● Chalkboard
● Mapoft heworld
● Examinati
onguidel
ine
● TVc over
age
ERRORS/MISCONCEPTIONS/PROBLEM AREAS

● Lear
ner
sst
ruggl
etodi
ff
erent
iat
ingbet
weenconser
vat
ionandpreser
vat
ion
● Lear
ner
sst
ruggl
etodi
ff
erent
iat
ebetweengl
obalandl
ocali
ssues
.
METHODOLOGY
● Groupdis
cussi
ons
● Workingi
npairs
● Expl
anati
onsbyeduc at
ors(nar
rati
on)
● Questi
onandans wermethod
● Peerexpl
anat
ion
● Combinat
ionoftheabovemet hods
ASSESSMENT Cl
asswork
Homewor ks
Cl
asstes
t
Debat
e
ACTI
VITI
ES 06act
ivi
ti
es(eas
y,aver
ageanddi
ff
icul
t)

ACTI
VITY1

73
1.
1 Vari
ousopt ionsar epr ovidedaspos sibleans wer st othef oll
owi
ngques t
ions.
Choos et hec orrec tans werandwr iteonl ythel etter(A- D)nextt otheques t
ion
number .
1.
1.1. Carbondi oxi det hati semi tt
edduringt hepr oduc tionofgoodsands ervi
c esare
cal
l
ed…
A.Thegr eenhous eeffect
B.Gl obalwar ming
C.Bi odi vers it
y
D.Car bonemi ss i
ons .
1.
1.2. Resour cest hatmaybec omeexhaus tedi ftheyar enotmanagedi nas ustainable
mannerar eknownas………… r es
our ces .
A.Nat ur al
B.Fi nite
C.Man- made
D.Renewabl e
1.
1.3. Resour cest hatwi l
lrunr unoutorwi llnotber eplenishedi nourlif
eti
mes
A.Non- renewabl eres ources
B.Renewabl eres ourc es
C.Rec yc labler es ources
D.Non- rec yclabl eresour c
es
1.
1.4. Gasemi ss i
onandc li
mat echangear ec onnec t
edt o……
A.Pr oper tyr i
ght s
B.Gl obalwar ming
C.Pos iti
veext er nali
ties
D.Pr ivat ebenef its
1.
1.5. Quant i
t yofgoodsac ount ryisper
mi tt
edt oimpor torpr oduc e…
A.Taxat ion
B.Ext ernalities
C.Quot as
D.Tar i
ffs
5X2 ( 10)
1.
2.Choos eades criptionf rom COLUMNBt hatmat c hest heitem inCOLUMNA.Wr i
te
onlythel ett er(A- E)nextt otheques ti
onnumber( 1. 2.1-1.2.6)
COLUMNA COLUMNB ANSWER

1.
2.1. Envi
ronment
al A.Deplet
ionofresour
cess
uchasai
r, E
degr
adati
on soi
l
,andwat er.

1.
2.2. Def
ores
tat
ion B.Theper
manentdes
truc
tionof F
woodl
ands

1.
2.3. Gl
obalwar
ming C.Longtermshif
tintemper
atur
esand B
weatherpat
terns

1.
2.4. Gr
eenhous
egas
ses D.Emi
ssi
onsonc
li
mat
echange. A

1.
2.5. Commandand E.Di
rec tregulat
ionofanindustryor D
cont
rol act
ivitythroughlawsthatstat
ewhat
i
sallowedandwhati sil
legal
.

74
 1.
2.6. Er
osi
on F.Thewear
ingawayofnat
ural C
res
our
ces

G.Ref
erst
opr
otec
tionofnat
ure

6X1 (
6)

1.3 Pr ovidet heec onomi ct erm/conceptforeac hofthefol

lowingdes c
ript
ions
.
1.3.
1. Thepr acti
ceofor ganiz
inghumanac t
ivi
ti
esinordertolimitthei
rimpactont he
naturalenvironment .
 Gr eeni s sues
1.3.
2. Al ocalis
edgr oupofi ndependentor ganismstogetherwiththeenvironmentt hat
theyinhabitanddependon.
 Ec osys tem
1.3.
3. Introduc ti
onofwas temat t
erintotheenvironment,bothdirectl
yandindir
ectly.
 Pol l
ution
1.3.
4. Theext racost sandbenef i
tsthatarenotc apt
uredbymar kett r
ansacti
ons.
 Ext ernal i
ties
1.3.
5. Keepi ngt her es ourcest hatarenon- r
enewableintact.
 Pr eservat ion
5X1 ( 5)

ACTI
VITY2
2. Answert
hef
oll
owi
ngques
tions
1

2.
1.1 Nameanyt
wot
ypesofpol
l
uti
on. (
2x1) (
2
)

Ai
rpol
l
uti
on

Wat
erpol
l
uti
on

Landpol
l
uti
on

Noi
sepol
l
uti
on

2.
1.2 Howdoenvi
ronment
als
ubs
idi
esens
ureenvi
ronment
als
ust
ainabi
l
ity? (
1x2) (
2
)

Envi
ronmentals
ubsidi
esr
educ
eac t
ivi
ti
est
hatc
auseenvi
ronmentalc
hange,
si
ncesubsi
diescoul
dbeusedfort
hedevel
opmentofnewtechnol
ogyor
equi
pment.

(
Acceptanyot
herr
elevantandcor
rectr
espons
e)

2. St
udyt
hei
nfor
mat
ionbel
owandans
werques
tionst
hatf
oll
ow
2

75
 THECONFERENCEOFTHEPARTI
ES(
COP)

TheUNhasyear l
yconfer enc
eswhi c
hserveasaf ormalmeeti
ngofpar ti
esthat
areknownast heConfer enceoftheParti
es(COP).Themeetingassesthe
progressmadeindeali
ngwi thcli
matechange.Thefir
stconf
erencewashel din
Berl
in,Germany,i
n1995andt hethi
rdmeetingwashel di
nKyoto,Japan,in
1997,wherethereductionofgr eenofgreenhousegaseswasdiscussed.

I
n2011t he17thmeet i
ngwashel
dinDur ban,SouthAfri
ca.Theemphas i
swason
thecreationofagreenc l
i
matefund.TheKyot oc onf
erenceoutli
nedthe
reduc
t i
onofgr eenhousegasemiss
ions.In2016t he22ndconfer
ence(als
oknown
asCOP22)washel di nMoroc
co.Despi
t ethesenumer ousmeetings
,global
temperaturesaresti
lli
ncr
easi
ng.

[
adapt
edf
rom 222.
wiki
pedi
a.c
om]

2.
1. I
dent
if
yanyONEAf
ri
canc
ount
rywher
ecl
i
mat
echangec
onf
erenc
ewashel
d. (
1
1 )

Sout
hAf
ri
ca

2.
1. Namet hei
nternat
ionalor
gani
sat
ioni
ntheext
rac
tabovet
hati
nit
iat
edc
li
mat
e (
1
2 changeconf
erences. )

UN

2.
1. Br
ief
lydes
cri
bet
het
ermc
ons
ervat
ion. (
2
3 )

Conservati
ondealswiththesus
tai
nabl
eus
eandmanagementofboth
renewableandnon- r
enewableres
ourc
est
oens
uret
hattheyareavai
l
abl
efor
useforfuturegener
ations.

(
Acceptanyot
herr
elevantandcor
rectr
espons
e)

2.
1. Expl
aint
heef
fec
tofc
li
mat
echangeont
heGDP. (
4
4 )

 Heavyrai
nswil
lcausef
loodswhi
chwi
l
lwi
pesof
fagr
icul
tur
alc
rops
;thi
s
wi
llreduc
eproducti
onofgoods.

 Droughtwil
lreduc
eagric
ultur
alc r
opsandals
oaf
fec
tanimals
negati
vel
y,product
ionwil
ldecreaseandal
soGDPwil
ldecr
ease.

(
Acceptanyot
herr
elevantandcor
rectr
espons
e)

2.
1. Howc
anagr
eenc
li
mat
efundhel
pst
oreduc
egl
obalwar
ming? (
2
5 )

 I
tcanenabl
ethees
tabl
i
shmentandus
eofr
enewabl
eener
gy(
eco-

76
 f
ri
endl
y).

 Cli
matefundc
anbeus
edt
odor
esear
chonal
ter
nat
ives
our
cesof
energy.

 Technol
ogic
alequipmentcanbeboughtandcons
umedt
oreduc
e
negati
veimpactcausedontheenvi
ronment
.

(
Acceptanyot
herr
elevantandcor
rectr
espons
e)

2. St
udyt
hei
nfor
mat
ionbel
owandans
wert
heques
tionst
hatf
oll
ow.
2

[
adapt
edf
rom
ht
tp:
//www.
googl
e.c
om/
amp)
]

2.
3. I
dent
it
yenvi
ronment
alf
ri
endl
ysour
ceofener
gyi
ntheabovepi
ctur
e. (
1
1 )

Wi
ndmi
l
l

Sol
arener
gy

2.
3. Whatt
ypeofpol
l
uti
ondooi
lspi
l
lsc
aus
etot
heoc
ean? (
1
2 )

Wat
erpol
l
uti
on

2.
3. Br
ief
lydes
cri
bet
het
erm mar
ket
abl
eper
mit
. (
2
3 )

Market
ingpermi
tsar
elic
encesthatpol
l
uter
scanbuyands
ellt
omeett
he
cont
roll
evel
ssetbygovernments
.

(
Acceptanyot
herr
elevantandcor
rectr
espons
e)

77
 2.
3. Expl
aint
heus
eofeduc
ati
ont
opr
otec
ttheenvi
ronment
. (
2
4 )

 Educati
onpr
ovi
despeopl
ewi
thknowl
edgeonhowt
opr
otec
tthe
envi
ronment
.

 I
tcr
eat
esawar
enes
sont
hei
mpac
tofenvi
ronment
.

 (
Acceptanyot
herr
elevantandcor
rectr
espons
e)

2.
3. Whyi
siti
mpor
tantt
opr
otec
tingt
heenvi
ronment
? (
4
5 )

 I
fenvi
ronmenti
spr
otec
tedmor
epr
oduc
tionwi
l
lbepr
oduc
edandGDP
wil
li
ncreas
e.

 Joboppor
tunit
ieswil
lbec reat
eds
inc
etour
ism wi
l
ldoi
tsbes
tduet
o
beaut
yofnaturalat
trac
tions.

 (
Acceptanyot
herr
elevantandcor
rectr
espons
e)

2. Br
ief
lydi
scus
spr
oper
tyr
ight
sandvol
unt
aryagr
eement
sasappr
oac
hest
osus
tai
n (
8
4 envir
onment. )

Pr
oper
tyr
ight

 I
fpeopl
ehadpropertyri
ghtst
ofaunaandf
lor
a,t
heywoul
dcar
efort
hem and
pr
eventt
hem f
rom becomingext
inc
t.

 Theycoul
dus
ethei
rpr
oper
tyr
ight
stof
inanc
ialgai
ntoal
l
owgui
ded
tour
s.

 Whenfar
mersgetpr
opert
yri
ght
st ogameonthei
rfar
ms,t
heyl
ookaf
tert
he
gameandcanearni
ncomefr
om t
ouri
stsvi
ewi
ngthegame. (max4)

Vol
unt
aryagr
eement

 Organi
sati
onsagr
eet
ocompl
yvol
unt
ari
l
ywi
tht
heenvi
ronment
all
awsand
r
egulat
ions.

 Anorgani
sat
iont
hatdesi
gnsandi
mplement
sanenvi
ronment
almanagement
sys
tem whi
chisc
ert
if
iedbyacont
rol
l
ingbody.

 I
tisr
egul
arl
yaudi
tedt
oens
urec
ompl
i
anc
ewi
thenvi
ronment
al
r
egul
ati
ons.

 (
Acceptanyot
herr
elevantandcor
rectr
espons
e)

2. Howdoesenvi
ronment
aldegr
adat
ioni
mpac
tonSout
hAf
ri
ca’
sec
onomy? (
8
5 )

 Sout
hAf
ri
ca’
scl
i
mat
eisaf
fec
tedbyt
hec
hangei
ngl
obalc
li
mat
e.

 Thes
echangesc
li
mat
emayhaves
igni
fi
cantef
fec
tsons
ever
alofSout
h

78
 Af
ri
cans
oci
etyandt
heec
onomy.

 Theincr
eas
edtemper
atur
eandchangesintherai
nfal
lpat
ternsc
anbe
expect
edtohaves
everei
mpactonheal
th-r
elat
edissuessuc
hass ki
ncanc
er.

 Cli
matechangescouldwors
endeser
ti
fi
cat
ion,l
andwi
llbecomemoreand
agri
cul
turalout
putcanbeexpec
tedtodecl
inei
ntheabsenceofc
orr
ecti
ve
measuresbeingappl
ied.

 Thefoodproduct
ionwhi
chneedst
oincr
easetomeettheneedsofgr
owi
ng
populat
ioni
sdir
ectl
ythr
eat
enedbycl
imatechange.

 Waters
uppli
eswil
ldecr
eas
ebec
aus
eoft
hedec
reas
einr
ainf
allandl
eadt
o
i
ncr
easeinproduc
tionc
ost
s.

 Los
sofr
esour
ces
,tr
eest
hatmayneveragai
ngr
owl
eadt
odef
ores
tat
ion.

 (
Acceptanyot
herr
elevantandcor
rectr
espons
e)

ACTI
VITY3
3.
1 Answerthef
oll
owi
ngques
tions
.

3.
1.1 Li
stanyTWOexampl
esofr
enewabl
eres
our
ces
. (
2x1)
(2)

For
est
s

Fi
sh

Ani
mal
s/pl
ant
s

(
Acceptanyot
herr
elevantandcor
rectr
espons
e)

3.
1.2 Howdogr
eent
axesc
ont
ri
but
etowar
dss
ust
ainabi
l
ity? (
1x2)
(2)

Revenuecol
lec
tedfr
om gr
eent
axesc
anbeus
edf
ort
hepr
otec
tionof
theenvi
ronment.

I
ndustri
eschar
gedfori
mpact
ingtheenvi
ronmentwillr
educ
ethei
r
negat
iveimpacts
inc
etheywi
llr
educethei
rproduc
tion.

(
Acceptanyot
herr
elevantandcor
rectr
espons
e)

3.
2 St
udyt
hei
nfor
mat
ionbel
owandans
werques
tionst
hatf
oll
ow

79
 [
adapt
edf
rom
ht
tp:
//www.
googl
e.c
om/
amp)
]

3.
2.1 I
dent
if
ythet
ermt
hatr
elat
est
othevar
iet
yofs
pec
iesi
nthedat
aabove. (
1)

Bi
odi
ver
sit
y

3.
2.2 Whatt
ypeoft
axus
edt
opr
otec
tenvi
ronment
? (
1)

Gr
eent
ax/
envi
ronment
alt
ax

3.
2.3 Br
ief
lydes
cri
bet
het
erms
ust
ainabl
edevel
opment
. (
2)

Sust
ainabl
edevelopmenti
sdevel
opmentthatmeet
stheneedsoft
he
pres
entwithoutcompromi
si
ngtheabi
li
tyoffut
uregener
ati
onstomeet
thei
rownneeds .

(
Acceptanyot
herr
elevantandcor
rectr
espons
e)

3.
2.4 Whyi
siti
mpor
tantt
opr
otec
ttheenvi
ronment
? (
2)

Envir
onmentprovi
desuswit
hnatur
alr
esourceswhic
hareusedto
producegoodsandser
vic
einor
dertosati
sfyourneedsandwant
s.

(
Acceptanyot
herr
elevantandcor
rectr
espons
e)

3.
2.5 Howdoest
heenvi
ronmentaf
fec
tec
onomi
cdevel
opment
? (
4)

 Highpopulati
ongrowthwi
l
lresul
tstohi
gherneedssat
isf
act
ion
byhouseholdsther
efor
emorenatur
alenvi
ronmentwil
lbe
consumed.

 I
fmorei
ndus
tri
esareest
abl
i
shedmor
epol
l
uti
onwi
l
lbec
aus
ed
i
ntot
heenvi
ronment.

 Morespendi
ngbygover
nmentoninf
rastr
ucturaldevel
opment
wi
llr
esul
tstomor
eenvir
onments
ldeter
iorat
ion.

 (
Acceptanyot
herr
elevantandcor
rectr
espons
e)

3.
3 St
udyt
hei
nfor
mat
ionbel
owandans
werques
tionst
hatf
oll
ow

80
 `

Adapt
edf
rom
www.
poac
hst
ats
SA

3.
3.1 Dur
ingwhi
chyearwasr
hinopoac
hingati
tshi
ghes
tinAf
ri
ca? (
1)

2015

3.
3.2 Whati
sther
eas
onofpoac
hingr
hinosi
nAf
ri
ca? (
1)

Tos
ellt
hehor
nsf
ormoney

3.
3.3 Br
ief
lydes
cri
bet
het
erm bi
odi
ver
sit
y. (
2)

Biodiver
sit
yref
erst
othevar
iet
yofpl
ant
sandani
mal
sthati
nhabi
tthe
earth.

(
Acceptanyot
herr
elevantandcor
rectr
espons
e)

3.
3.4 Expl
aint
heef
fec
tofoverc
ons
umi
ngr
enewabl
enat
uralr
esour
ces
. (
2)

I
fnatur
alr
esour
cesareoverconsumedtheywil
lbecomenon-renewabl
e
ast
heydonotreproduc
et hemsel
vesduetooverconsumpt
ion.

(
Acceptanyot
herr
elevantandcor
rectr
espons
e)

3.
3.5 Howwi
l
lcons
ervat
ionbenef
itt
hepeopl
eli
vingneart
her
hinohabi
tat
? (
4)

 Enjoyi
ngmor ej
obopport
uni
ti
est
hatwi
l
lleadt
oani
ncr
eas
ein
thestandar
dofli
ving.

 I
mpr ovi
ngentr
epr
eneur
ialabi
l
iti
est
hroughmanuf
act
uri
ngof
handcraf
ts.

 Communitywil
lenj
oytheuseofgoodinf
ras
truc
tur
eli
ker
oads
,
watert
ranspor
tandshoppi
ngfaci
li
ti
es.

 (
Acceptanyot
herr
elevantandcor
rectr
espons
e)

81
3.
4 Br
ief
lydi
scus
sgr
eenandbr
owni
ssuesasSout
hAf
ri
canenvi
ronment
ali
ssues
. (
8)

Gr
eeni
ssues

I
ncreasedlos
sofbiodi
versi
ty:i
nSouthAfr
ica15%ofplants
peci
es,37%of
mammals peci
es,14%ofbirdspeci
es,8%ofamphi
bianspeci
esand4%ofrept
il
e
speci
esareexti
nctofnearexti
nct
ion.

Cli
matechange:t
hec
hanget
orai
nfal
landt
emper
atur
ear
eal
sopr
eval
enti
n
SouthAf
ric
a.

Deteri
orati
ngfres
hwat err
esour
ces
:acc
ordi
ngt othewaterres
ear
ch
commiss i
on,Sout
hAf r
icai
sproj
ect
edtorunoutofwaterbetween2020and
2030,giventhecurr
enthighvol
umesofwastageandprojec
teddemand.

Br
owni
ssues

I
ncr
eas
edai
rpol
l
uti
on:dec
li
ningai
rqual
i
tyandhar
mingpeopl
e’sheal
th.

I
ncreas
edsoiler
osi
on:t
heannuals
oill
ossi
nSout
hAf
ri
cai
ses
timat
edat300-
400mill
i
ontons.

I
ncr
easedcons
umptionofnat
uralcapi
tal
:Sout
hAf
ri
cai
sus
ingupi
tsnat
ural
c
apit
alduetoover
-consumpt
ion.

3.
5 Anal
ysenegat
ivi
tyofgl
obal
i
sat
ionont
heenvi
ronment
? (
8)

 Dependencyonthepr
imarysec
tor-Sout
hAfr
icast
il
ldependslar
gelyon
thepri
marysect
orasasourc
eofincome/mi
neral
sareexport
edt o
Nort
herncount
ries
.

 Thecountr
iesi
ntheSouth,i
ncl
udi
ngSout
hAf
ri
ca,ar
est
il
ldens
ely
popul
atedincert
ainar
eas.

 Largeunempl
oymentLevels
-Sout hAfri
cahasal
argegr
oupofyout
h
whichi
sunemployed-evengraduatesdonoteas
il
yfi
ndjobs
/lac
kof
fundsf
orski
ll
s.

 Lowlifeexpec
tanciesi
nthecount
ry-fact
orssuchasTB/Mal
ari
a/HI
V
andAIDSar emajorprobl
ems
/insuff
ici
entheal
thcar
e,es
peci
all
yinr
ural
areas
.

 I
nc r
easi
nglevel
sofpover
ty-est
imat
esarethat50%oftheSout
hAfr
ican
populat
ioni
sinpovert
y/i
nabil
i
tyofgover
nmentt oc
reateec
onomi
c
growthFDIs.

 Lackofeconomicgrowthdevel
opment-aspec
tssuchasdr
oughts
,
cor
rupti
on,mismanagementanddis
inves
tmentsaremaj
orconc
erns.

 (
Acceptanyot
herr
elevantandcor
rectr
espons
e)

82
 ACTI
VITY4
 Examinei
ndetai
lthes
tat
eofenvi
ronment
/pr
obl
emst
hreat
eni
ngt
he (
26)
envir
onment
.
(
10)
 Anal
yset
hemeas
ures
/met
hodsus
edt
opr
otec
ttheenvi
ronment
.
[
40]

I
ntr
oduc
tion

Envi
ronment ali
ssuesar
epartlyar es
ultofthedevel
opmentofnewt ec
hnol
ogies
,whi
chhas
l
edtot heincreaseinmi
neralmining,oi
lexplor
ati
on,andt
heincreas
einthenumberof
manufacturi
ngplantandfactori
es.

(
Acceptanyot
herr
elevantandcor
recti
ntr
oduct
ion)
Body

Mai
npar
t

Nat
uralenvi
ronment
aldegr
adat
ion

 Natur
alenvi
ronment
aldegradati
onincl
udessit
uati
onst
hatar
isefrom l
ocali
nfl
uenc
es
suc
hasext r
emesofweather,l
ocali
nfec
tiousagent
sandphys
icaldis
aster
s.

 I
tisest
imat
edthat
,inSout
hAf
ri
ca,wat
erer
osi
onaf
fec
ts6.
1mi
l
li
onhec
tar
esof
c
ulti
vat
edsoil
.

 Ofthi
s6.
1mil
li
onhec
tar
es,15%i
sser
ious
lyaf
fec
ted,37%moder
atel
yandt
her
est
sl
i
ghtl
yaff
ect
ed.

 Winderos
ionhasmoresevereaff
ectonc
ult
ivat
eds
oil
,es
timat
edat10.
9mi
l
li
on
hect
arest
hati
scurr
entl
yaffect
ed.

 I
nSouthAfr
ica,t
heesti
matedannualsoi
ll
ossis2.
5tonsperhect
areperyearwi
ththe
hi
ghes
tlos
sesupt o60tonsperhect
areperyearf
rom unpr
otec
tedpineappl
efi
elds
.

(
Acceptanyot
herr
elevantandcor
recti
ntr
oduct
ion)
Human-
induc
edenvi
ronment
aldegr
adat
ion

 Thistypeofdegr
adat
ionr
efer
stot
heef
fec
tofhumanac
tivi
ti
esont
henat
ural
envir
onment.

 Humansarecons
tantl
yengagedinactivi
tiess
uchasagr
icul
tur
e,i
ndus
tri
al
devel
opment
,miningact
ivi
ti
es,r
urals
et t
lementorur
bandevel
opment.

 Thesehumanact
ivi
ti
esof
tenl
eadt
odef
ores
tat
ion,l
andandwat
erdegr
adat
ion,as
wellasai
rpol
l
uti
on.

(
Acceptanyot
herr
elevantandcor
rectf
act
)
Pover
tyandenvi
ronment
aldegr
adat
ion

83
  Pover
tyi
sseenasagr
eatt
hreatt
otheenvi
ronment
.

 Poorheal
thc
ondi
ti
onsl
i
mitpeopl
e’sc
apac
ityt
opr
oduc
eandear
n.

 Whenpeoplehavetosurvi
vefrom dayt
oday,i
tmakest
hem l
esss
ens
iti
vet
o
mai
ntai
ningthenat
uralenvi
ronmentres
our
ces.

 Poorpeopl
etendtohavel
argefamil
i
es ,coupl
edwit
hpoorhealt
hs er
vic
es,whi
chwi
l
l
i
ncreas
epovertyl
evel
sandcreat
efurtherenvi
ronment
alpr
essure.

 Peopl
eareof
teni
ll
-equi
ppedt
odealwi
tht
heef
fec
tont
heenvi
ronmenti
namanner
thatl
i
mit
sdamage.

(
Acceptanyot
herr
elevantandcor
rectf
act
Agr
icul
tur
aldevel
opmentanddef
ores
tat
ion

 Theexpansi
onofagr i
cult
ureandplantat
ionfor
est
ry,aswel
lasot
herc
ommer
cialor
subs
tanceacti
vit
ies
,threatennat
uralr
esourc
es.

 Agri
cul
tur
aldevelopmentneedsl
argetr
acksofl
andt hatmus
tbedevel
opedt
omeet
thedemandforfoodforanever-
incr
easi
ngpopulat
ion.

 Thi
softenleadst
odefor
est
ation,s
oiler
osi
on,l
anddegr
adat
ion,des
ert
if
icat
ionand
var
iousfor
msofwaterandairpoll
uti
on.

 Def
ores
tat
ionr
educ
est
hehabi
tat
sofpl
antandani
mals
pec
ies
.

 I
tal
soi
nfl
uenc
esr
ainf
allpat
ter
nsandl
ower
stheabi
l
ityf
orr
aindevel
ops
.

(
Acceptanyot
herr
elevantandcor
rectf
act
)
Landdegr
adat
ion

 Landdegradati
oni
sami
smat
chbet
weenl
andqual
i
ty,l
andus
ageandl
and
produc
tivi
ty.

 I
flandisnotusedeff
ici
ent
lyandeff
ect
ivel
yitbecomeserodedt
hroughdefores
t at
ion,
soi
lerosi
on,soi
li
nfer
ti
li
tyandfl
oodi
ng.Soi
lerosi
onisthemostser
iousf
orm ofland
degradat
ion.

 At53%wat
ereros
ionisthemainprobl
em i
nAf
ri
ca,fol
lowedbywinderos
ionat
30.
5%,c
hemic
aldegradati
onat11.
2%andphysi
caldegradat
ionat5.
3%.

(
Acceptanyot
herr
elevantandcor
rectf
act
)
I
ndus
tri
aldevel
opment
,mi
ningandenvi
ronment
aldegr
adat
ion

 I
ndus
tri
alpr
oces
sesc
ont
ri
but
etowat
er,l
andandai
rpol
l
uti
on.

 I
nSout
hAf
ri
ca,t
hemaj
orc
ont
ri
but
ort
oai
rpol
l
uti
oni
sthec
ount
ry’
soi
lref
iner
ies
.

 Theseref
iner
iesemi
thighl
evel
sofs
ulphurdi
oxi
deands
ever
alot
herc
hemi
cal
sknown
tocaus
ehealthprobl
ems.

84
  Gr
eenhousegasemi
ssi
onsasaresul
tofvehic
leemiss
ions,powerpl
ant
s,f
act
ori
esand
gi
antl
ives
toc
kfarmshaveadevas
tati
ngeffectonc
li
mat echange.

 Pol
luti
onf
rom mi
ningac
tivi
ti
esi
sadi
rec
tcaus
eofgr
oundwat
erpol
l
uti
oni
nSout
h
Afr
ica.

(
Acceptanyot
herr
elevantandcor
rectf
act
)
Humans
ett
lement
,ur
bani
sat
ionandenvi
ronmentdegr
adat
ion.

 Rural
-urbanmi
grati
onhelpsreduc
epress
ureonther
uralenvi
ronment,butput
s
press
ureontheurbanenvir
onmentsuchasdemandf
orlandands er
vices
.

 Unpl
annedinfor
mals
ett
lement
sar
eoneoft
hec
ons
equenc
esofl
arge-
scal
erur
al
ur
banmigrati
on.

 Gover
nments
truggl
est
omeett
hec
ommuni
tyneeds
.

 Run-
offf
rom s
tor
m wateri
sacommonprobl
em i
nunpl
anneds
ett
lement
sduet
othe
l
ackofpr
opersewageanddrai
nages
yst
em.

 Thecons equencesofurbani
sati
onareovercr
owding,poorhousi
ngcondit
ions
overc
ons umptionofli
mitedresour
ces
,uncoll
ect
eds ol
idwasteanduntr
eatedwast
e
water,envir
onmentalpoll
uti
onandot herf
ormsofsocialevi
l
s,s
uchaschil
dabuse,
domes ti
cabuseandc hil
dlabour.

(Acceptanyot
herr
elevantandcor
rectf
act
) max
26
ADDI
TIONALPART

 Pri
cebasedcharges,s
uc hast
axesands
ubs
idi
es,ar
eus
edt
oper
suadepol
l
uter
sto
reduc
ethelevelofpoll
uti
on.

 Theuseofpri
ce-bas
edinst
rumentsforpoll
utionc
ontrolhasbeenadvocat
edformany
year
s,buti
tisonl
yinrec
entyear
st hatgovernmenthavec ometoprot
ectthem.

 Governmental
sohadc onc
ernsthataddi
ti
onalc
har
geswoul
dinc
reas
einf
lat
ionand
ther
ebyimpactsever
elyonlow-
incomegroups.

 Mar
ket-basedapproachus
edtoc
ontrolpol
l
uti
onbypr ovi
dingec
onomi
cinc
ent
ives
f
orachi
evingreduc
tionint
heemi
ssi
onsofpoll
utant
s.

 Thec
ent
ralgover
nments
etsal
i
mitont
heamountofapol
l
utantt
hatc
anbeemi
tt
ed.

 Bus
ines
sesar
erequi
redt
ohol
danumberofper
mitequi
val
ent
stot
hei
remi
ssi
ons
.

 Fi
rmsthatneedt
oincr
easethei
remiss
ionper
mit
smus
tbuyper
mit
sfr
om t
hos
e
busi
ness
esthatr
equi
refewerpermi
ts.

 Lawscannoti
nfl
uencethenat
uralpr
ocessest
hatc
aus
eenvi
ronment
alc
hanges
,buti
t
canbeusedtoregul
atehumanbehaviour
.

85
  Lawsaboutnoisel
evel
s,pol
lut
ionandwast
emanagementhavebeeni
ntr
oduc
edt
o
keept
heenvironmentsafef
orfutur
egener
ati
ons
.

 Today,envi
ronment
all
awsar
eenf
orc
edbyal
lcount
ri
esi
nthewor
ld.

(
Acceptanyot
herr
elevantandcor
rectf
act
)
max10

CONCLUSI
ON

Envi
ronmentshoul
dbemanagedverywel
landus
edef
fi
ci
ent
lys
othatf
utur
egener
ati
on
needsshoul
dnotbecompr
omised.

(
Acceptanyot
herr
elevantandcor
rectconcl
usi
on)

Max
2

[
40]

86