2023 Econ Grade 11 p2 Nov MG

FINAL EXAMINATION
GRADE 11
ECONOMICS P2
NOVEMBER 2023
MARKING GUIDELINES
MARKS: 150
This marking guidelines consists of 21 pages.
Copyright reserved Please turn over

Economics/P2 2 Limpopo DOE/November 2023
Grade 11 – Marking Guidelines
SECTION A
QUESTION 1
1.1 MULTIPLE CHOICE QUESTIONS
1.1.1 B - relative✓✓
1.1.2 D - marginal cost✓✓
1.1.3 C - variable✓✓
1.1.4 D - comfort✓✓
1.1.5 A - trade liberalisation✓✓
1.1.6 B - ecosystem✓✓
1.1.7 C - externalities✓✓
1.1.8 D - parastatals✓✓
(8 x 2) (16)
1.2 MATCHING ITEMS
1.2.1 I - It exists when buyers and sellers meet to negotiate the exchange of
prohibited/illegal goods✓
1.2.2 F - This occurs when a decrease in price result in a big increase in

quantity demanded.✓
1.2.3 A - An increase in the price of these goods do not influence their demand
because they are used for survival✓
1.2.4 G - The purchase of an asset in another country such that it gives direct
control to the purchaser over the asset✓
1.2.5 H - As the income of consumers rises, less products are demanded at

each price level✓
1.2.6 C - Products that are so similar that they can be used instead of the
original good✓

1.2.7 B - The sustainable use and management of both renewable and non-
renewable resources to ensure that they are available for use for future
generations. ✓
1.2.8 E - A grouping of countries to get more control over the global economy✓
(8 x 1) (8)
1.3 ONE TERM
1.3.1 Economic profit✓
1.3.2 Price elasticity of supply ✓
1.3.3 Quotas ✓
1.3.4 Biodiversity ✓
1.3.5 Explicit costs✓
1.3.6 Long run✓
(6 x 1) (6)
TOTAL SECTION A: [30]

SECTION B
QUESTION 2: MICROECONOMICS
2.1 Answer the following questions.
2.1.1 Name any TWO examples of variable costs.
• services of a labourer ✓
• electricity ✓
• telephone bills ✓
• water accounts ✓ (2 x 1) (2)
(Accept any other correct relevant answer)
2.1.2 What effect will the increase of absolute prices have on

the consumers’ demand for goods and services?
The demand for goods and services will decrease. ✓✓ (1 x 2) (2)

2.2 DATA RESPONSE
2.2.1 Give an example of a product that can be used together with tea.
• Sugar ✓
• Milk ✓ (1)
2.2.2 Identify the initial equilibrium quantity of tea demanded.
Q✓ (1)
2.2.3 Briefly describe the term complementary goods.
It is goods or services that are used together. ✓✓ OR A need cannot

be satisfied if the product is not used together with the other. ✓✓ (2)
2.2.4 What may have caused a decrease in quantity of tea demanded?
An increase in the price of a complementary good such as sugar✓✓ (2)


2.2.5 Why is it important for the producer to understand the

relationship between complementary products?
• It will make the producer to know how the price of one item
might affect the demand for another. ✓✓
• It will also help the producer to know how changes in prices of
related goods will affect a business in terms of profits and (4)
production. ✓✓
2.3. DATA RESPONSE
2.3.1 What market structure is represented by the table?
Perfect market ✓ (1)
2.3.2 Identify the quantity at which the firm made a loss?
0✓ (1)
2.3.3 Briefly describe the term total revenue.
Total revenue is the amount of money that a business earns in a

particular period of time. ✓✓ (2)
(accept any other correct relevant answer)
2.3.4 Determine the value of A.
20 x 2 = 100✓✓ (2)

2.3.5 Illustrate with the aid of graph how maximum profit is

determined using the total revenue and total cost approach.
(4)
2.4 Briefly discuss the relationship between factor market and product
market.
• The two markets are interdependent ✓✓

• The factor market depends on the product market in that demand for
factors of production is derived. ✓✓
• It is derived from the demand for goods and services. ✓✓
• There must be demand for goods and services before there is
demand for factors of production✓✓
• For example, there must be demand for health services before there (8)
is demand for doctors. ✓

2.5 How is competition in the market beneficial to consumers?
• When there is competition amongst businesses, quality goods are

being produced which is an advantage to the consumers. ✓✓
• Competition also lead to fair or reasonable prices that consumers can
afford. ✓✓
• Exploitation of consumers is less minimal due to a variety of goods
and services. ✓✓
• Consumers are also given the opportunity to compare relative prices
of similar goods and make informed decisions on quantities to buy. ✓✓
• Competition encourage businesses to be innovative and come up with
new products for the benefit of the consumers. ✓✓ (8)
[40]
QUESTION 3: CONTEMPORARY ECONOMIC ISSUES
3.1 Answer the following questions.
3.1.1 Name any TWO examples of trade agreements.
• Free trade zone (FTZ) ✓

• General Agreement on Tariffs and Trade (GATT) ✓
• World Trade Organisation (WTO). ✓
• Millennium Development Goals (MDG’s) ✓ (2 x 1) (2)
3.1.2 Why is it important to protect the environment?
The livelihood of all living things; people and animals depend

on the good physical surroundings. ✓✓ (1 x 2) (2)
(accept any other correct relevant answer)
3.2 DATA RESPONSE
3.2.1 Name any ONE country that is represented by the haves.
• Germany✓
• Australia✓
• Canada ✓
• Russia✓ (1)
• Mexico✓

3.2.2 Mention ONE characteristic of countries that are represented by

the have-nots.
• High poverty levels✓

• Low life expectancy✓
• Low levels of education✓
• Low economic growth✓ (1)
3.2.3 Briefly describe the term North-South divide.
It refers to the gap between the developed (north) countries and the
less developing (south) countries in terms of development and (2)
wealth. ✓✓
( Accept any other correct relevant answer)
3.2.4 How would developing countries benefit from globalization?
• Countries will benefit from increased trade and investment,

which may lead to economic growth. ✓✓
• There will be high competition, which will lead to improved (2)
quality of goods and services. ✓✓
• Some countries expand and set up businesses abroad, thereby
creating jobs for domestic workers. ✓✓
3.2.5 Why is South Africa regarded as a dual economy?
• South Africa has characteristics of both developed and

developed countries. ✓✓
• Some areas in the country are well developed with all the
necessary infrastructure while other areas are not (4)
developed. ✓✓
3.3 DATA RESPONSE
3.3.1 Which province has recently been affected by cholera outbreak in

South Africa?
• Gauteng ✓
• Free State ✓ (1)

3.3.2 Identify ONE cause of cholera outbreak?

• Drinking contaminated water. ✓
• Eating food contaminated with cholera bacteria. ✓✓ (1)
3.3.3 Briefly explain the term pollution.
It is the introduction of waste material into the environment. ✓✓ (2)

3.3.4 How can the government use taxation to discourage the

consumption of toxic goods.
The government can increase sin tax to discourage the consumption of

toxic goods. ✓✓ (2)
3.3.5 Suggest ways in which citizens of the country can avoid cholera
related diseases.
• Frequently wash hands before eating ✓✓

• Drink safe water. / Boil water ✓✓ (4)
3.4 Differentiate between the North and South in terms of economic growth
and life expectancy.
North South
Economic Growth Due to advanced There is low economic
technology, developed growth due to poor
countries are able to technology. ✓✓
produce more goods
and services hence and
increase in economic
growth ✓✓
Life Expectancy People in developed Life expectancy in
countries live longer developing countries is
due to the availability of low due to problems
health services. ✓✓ such as malnutrition,
Life expectancy in disease and ill health.
developed countries ✓✓
high is 75 years. ✓✓ Life expectancy is 48
years. ✓✓
(2 x 2 (4) (2 x 2 (4) (8)

3.5 How does mankind contribute to environmental deterioration?
• Excessive consumption especially in developed countries, results in

excessive claims on nature`s resources. ✓✓
• Excessive consumption leads to the depletion of non-renewable
mineral resources. ✓✓
• More and more productive land is consumed for urban , industrial and
roads and railways. ✓✓
• Dumping of economic waste such as plastic bags, chemicals pollute
the soil, water and the atmosphere. ✓✓
• The burning of fossil fuels causes global warming which leads to
extreme heat in the environment. ✓✓ (8)
[40]
QUESTION 4 MICROECONOMICS AND

CONTEMPORARY ECONOMIC ISSUES
4.1 Answer the following questions
4.1.1 Name any TWO types of price elasticity of supply.
• Elastic supply✓
• Inelastic supply ✓
• Unit price elasticity (Unitary supply) ✓
• Perfect inelastic supply ✓
• Perfect elastic supply✓ ( 2 x 1) (2)
4.1.2 What role does effective communication system play in

globalisation?
Computers, fast internet and many communication methods

make it easier for countries to communicate and trade with
each other. ✓✓ (1 x 2) (2)
4.2 DATA RESPONSE
4.2.1 Which category of price elasticity of demand is depicted in the

graph ?
Perfectly inelastic demand. ✓ (1)

4.2.2 What is the quantity demanded at price P₁?
Q✓ (1)
4.2.3 Briefly describe the term price elasticity of demand.
It refers to a change in quantity demanded as a result of a change in

price. ✓✓ (2)
4.2.4 Explain the influence of time on price elasticity of demand.
Price elasticity of demand is more elastic in the long term than in the
short term because consumers have more time to adjust to a change (2)
in price✓✓
4.2.5 How would consumers respond to an increase in prices of

durable goods?
• Durable goods can be used and provide utility over a long

period of time, thereby delaying expenditure ✓✓
• Consumers will respond by demanding less durable goods if
there is an increase in their price. ✓✓
• Demand for these goods is thus elastic. ✓✓
(4)
4.3 DATA RESPONSE
4.3.1 Name the sector that has recently been affected by global
warming.
(1)
Agricultural sector / Farming ✓
4.3.2 How many farm workers died as a result of extreme heat?
Seven (7) ✓ (1)

4.3.3 Briefly describe the term global warming.
It is the gradual increase in the overall temperature of the earth`s

atmosphere. ✓✓ (2)
4.3.4 How does urbanisation contribute to air pollution?
• Gas emissions from the increased number of cars that in urban

areas lead to air pollution. ✓✓ (2)
• (Accept any other correct relevant answer)
4.3.5 What can the government do to reduce global warming?
• Manage the burning of fossil fuels by charging higher tax on

companies. ✓✓
• Encourage workers or commuters to share transport to reduce
fuel emissions✓✓
• Discourage the burning of trees or veld fires. ✓✓ (4)
4.4 Briefly discuss the nature of the product as one of the factors that
determine price elasticity of demand.
• The price elasticity of demand for essential products such food tend to
be inelastic. ✓✓
• Those products are important and we need them to survive. ✓✓
• As a result, consumers will keep on buying them regardless of price
changes✓✓
• The price elasticity of demand for luxury products such as
entertainment tents to be elastic. ✓✓
• These products are not essential for survival so they are sensitive to
price changes. ✓✓ (8)
4.5 What impact does environmental deterioration have on the country?
• Increasing pollution and declining air quality are harming people’s

health. ✓✓

• The exploitation of natural resources has increased the rate of extinction

of many plant and animal species. ✓✓
• With increased level of economic activities, South Africa has been
burning an increased amount of fossil fuel such as coal and
gasoline, ✓✓
• This causes climate change and global warming. ✓✓
• The recent cholera outbreak in some parts of the country led to death of
people. ✓✓
(8)
• Demand for fresh and clean water has grown twice as fast as the human
population. ✓✓
[40]
TOTAL SECTION B: [80]

SECTION C
QUESTION 5: MICROECONOMICS
• Discuss in detail the characteristics of perfect markets and

monopoly. (26)
• Why is Eskom experiencing power shortages? (10)

[40]
INTRODUCTION
Monopoly exists when there is only one seller of a product, with no close
substitutes and entry into the market is completely blocked. ✓✓ Max (2)
MAIN PART
Characteristics of perfect markets
Number of sellers✓
• There is a large number of buyers and sellers. ✓✓
• One seller will not be able to influence the price by withholding goods to
increase the price. ✓✓
Nature of the products ✓

• All products are identical with no trademarks and no substitutes
available. ✓✓
• Buyers are indifferent as to where they buy goods and services because
they are exactly the same. ✓✓
Entry to the market. ✓

• There is free entry and exit to the market, the market is fully accessible. ✓✓
• There are no barriers, buyers and sellers are completely free to enter or
leave the market. ✓✓
Availability of information ✓
• Perfect knowledge of market conditions prevail in the perfect market. ✓✓
• Buyers and sellers are aware of all information that is required for the
market to function effectively ✓✓e.g. prices, supply and demand. ✓

Factors of production ✓
• All factors of production are completely mobile. ✓✓
• Labour, capital, and other factors of production can move freely from one
market to another. ✓✓
Collusion ✓
• There is no collusion between sellers. ✓✓
• Each seller acts independently of others ✓✓
Prices ✓
• Sellers are price takers and do not have control over prices. ✓✓
• Prices are determined by the market forces of demand and supply. ✓✓
Characteristics of monopoly
Number of producers ✓
• The monopolist is the only seller in the industry and has full control over the
supply of a product ✓✓
• It represents the total industry, with complete market power✓✓ e.g. De
Beers, Eskom ✓
• This enables the monopolist to exert considerable influence over the buyer
Nature of the product ✓

• The product is unique and has no close substitutes ✓✓
• E.g. electricity and retail transport ✓
• Buyers can only buy from the monopoly or go without the product ✓✓
Profit ✓
• The monopoly makes a short-term normal and economic profits in the short
run ✓✓
• In the long run, it is more likely that the massive market power and high
prices will ensure that it makes supernormal profits ✓✓
Technical superiority ✓
• A monopoly has a technical advantage over potential competitors ✓✓
• Its access to resources and technical superiority makes it difficult for others
to compete ✓✓
• This can keep the monopolist in its position for some time, for example in
the computer software industry ✓✓

Control over prices ✓

• A monopoly has full control over the price of a product or service – but it is
limited by demand to charge excessively high prices ✓✓
• It controls the price by manipulating and restricting output to create a
shortage causing an increase in prices ✓✓
• Monopolies are therefore price makers because they have the power to
determine their own price ✓✓
• A monopoly can only decide at which point on the demand curve it wants to
produce ✓✓
Favourable circumstances✓
• Sometimes entrepreneurs may enjoy favourable circumstances in a certain
geographical area ✓✓
• E.g. there may be only one supplier of milk, a hardware store or hotel in a
particular town ✓
• There may even be laws that protect the market, ✓✓e.g. post offices in
South Africa✓
Market information ✓
• A monopoly has full knowledge of all the current market conditions because
it is the only seller available in the market representing the industry as a
whole. ✓✓
• New firms that wish to enter the market will not have the same information
available to them and this hampers their ability to enter the market✓✓
• Monopolies withhold information from consumers as such it is difficult for
them to make informed decisions as they may not be fully aware of the
needs of consumers ✓✓
Exploitation of consumers✓
• The monopolist may produce fewer products at a higher price compared to
businesses under perfect competition ✓✓
• E.g. De Beers, because the monopolist is the only producer of the product
in the market, there is always the possibility of consumer exploitation. ✓✓
• Most governments take steps to guard against such practices and new and
existing monopolies are usually well monitored ✓✓
Market entry✓
• Entry in the market is completely blocked and it is impossible for other
businesses to enter the market ✓✓
• Some monopolies are created by law passed by the government giving one
firm exclusive right to produce a particular product ✓✓
• Government can use patents, licences and copyrights to restrict market
entry preventing undesirable or incompetent firms from entering the
market ✓✓

• The barriers prevents other producers from entering the market to supply
the same type of product ✓✓
• High start-up costs include capital investment and research and
development that could be difficult for other firms to afford ✓✓
Economies of scale ✓
• The mere size of the large business gives it a cost advantage over a
smaller rival and this will make it impossible for the smaller business to
compete ✓✓ (Max 26)
(A maximum of 8 marks for mere listing of facts/examples)

(Accept any other correct relevant response)
ADDITIONAL PART
Why is Eskom experiencing power shortages?
• There are allegations of mismanagement of funds and corruption at the

power utility. ✓✓
• There is deep financial losses and poor planning which lead to power
shortages. ✓✓
• Most of Eskom`s infrastructure is old and need to be replaced or
maintained. ✓✓
• Eskom`s fleet in most plants is not operating at full capacity.
• Illegal power connections in informal settlements also lead to power
shortages. ✓✓
• There are also claims of sabotage by some of the Eskom employees.
✓✓(10)
CONCLUSION
In the real world, perfect markets are really rare to find but they serve as a
benchmark for the imperfect markets. The existence of monopolies create
problems such as unfair competition and higher prices in the market. ✓✓ (2)
(accept another correct relevant answer)

QUESTION 6: CONTEMPORARY ECONOMIC ISSUES
• Examine in detail the causes of globalisation. (26)
• Analyse the social costs of globalisation (10)

[40]
INTRODUCTION
Globalisation is the process of interaction among the countries of the world to

bring their economies and societies together to develop the global economy. ✓✓ (2)
(Accept any other relevant correct response.)
MAIN PART
Causes of globalisation
Development of technology ✓
• Globalisation has been made possible, in part by technological
innovation.✓✓
• Over the past two decades, improvement happened in computer technology
and the application of computers. ✓✓
• This application of computers, utilising all their abilities, is known as
information technology. ✓✓
Information Technology (IT) ✓

• It is based on communication technologies concerned with the transmission
of information, ✓✓ e.g. by mail or telephone and computer technologies.✓
• It is also concerned with the processing and storing of information, ✓✓ e.g.
typing and paper records. ✓
• Both of these now happen with the aid of computers. ✓✓
• The information can be retrieved, studied, changed, distributed and stored
again. ✓✓
New production processes✓

• IT is transforming the technologies of production and processes. It brought
about new systems of production based on extensive communication and
transport networks at lower costs. ✓✓
• For example, components of motorcars are made in different parts of the
world and then assembled in other parts of the world✓✓

• IT permits services to be disconnected from production and traded or

performed remotely (they are outsources, e.g. bookkeeping). ✓✓
Transportation and communication✓

• Globalisation is very dependent on communication and transportation.
Transportation systems are the means by which materials, products and
other tangible things including people are transported from place to
place. ✓✓
• Communications systems are the means by which information is
transmitted from place to place in the form of messages, ideas, instructions,
images, drawings etc. ✓✓
• Developments in transport and communication have transformed our world,
permitting unprecedented mobility of materials and products and a massive
geographical expansion of markets. ✓✓
• IT is transforming both the technologies of transformation and
communication. ✓✓
Trade liberalisation✓
• Trade liberalisation is the removal or reduction of trade barriers between
countries, ✓✓ e.g. import duties. ✓
• The purpose of trade liberalisation was to stimulate international trade ✓✓
• It started after World War II with the establishment of GATT by the United
Nations. ✓✓
• GATT members negotiated for the removal of trade restrictions and barriers
as well as to find methods of increasing international trade. ✓✓
• This role was taken over by the WTO in 1994. The WTO ensures that trade
agreements between countries are honoured and acts as a mediator in
trade disputes. ✓✓
• Removal of trade restrictions are aimed at encouraging foreign direct
investment to further develop industries and increase consumers’
purchasing power. ✓✓
• The outflow of these actions was the formation of export processing zones
(EPZs) by many countries in which no trade tariffs were levied. ✓✓
• Through trade liberalisation, some countries formed free trade areas (FTA),
where agreements were reached whereby participating countries remove all
trade barriers among themselves on goods/services traded. ✓✓
• The effect of an FTA is that the total volume of trade has increased
because countries can specialise in the products they produce the
cheapest. ✓✓
Capital liberalization ✓
• The financial markets were also liberated. As exchange and investment
controls were removed, capital was allowed to be traded in international
markets. ✓✓

• This allowed capital to move where it earned the highest returns. Investors
can move capital directly for portfolio investment and foreign direct
investment, without the intermediation of banks or monetary authorities. ✓✓
• Capital account liberalization in developing countries reduces the cost of
capital, temporarily increases investment, and permanently raises the level
of GDP per capita✓✓
Multinational enterprises✓
• Multinational enterprises are companies that establish manufacturing,
servicing and trading businesses in several countries. ✓✓
• When they produce goods/services in another country, they do not have to
export to that country, so they save in transportation costs. ✓✓
• They facilitate FDI as well as the migration of specialised labour when it is
not available in the foreign market. ✓✓
• They also play a major role in distributing and implementing new
technologies. ✓✓
• MNEs are companies that deliver products and services in at least two
countries. ✓✓
• They produce products in several countries where the costs of production is
the lowest and then distribute the products globally. ✓✓
• MNEs expose countries to international products which promotes
globalisation through international trade. ✓✓
Standardisation ✓
• Refers to making rules the same all over the world, making it easier for
countries and businesses to trade and invest internationally. ✓✓
• Those who are subjected to the rules behave in a similar manner which
promotes globalisation. ✓✓
• Globalisation was promoted by a number of facilitating rules, procedures
and norms that were laid down by international institutions. ✓✓
• Examples of such rules include, trade relations, investments, health
matters, labour and environment. ✓✓
Foreign direct investment ✓

• Foreign direct investment (FDI) is the category of international investment
that reflects the objective of obtaining a lasting interest by an investor in one
economy in an enterprise resident in another economy. ✓✓
• FDI differs from portfolio investments because it is made with the purpose
of having control, or an effective voice, in the management of the enterprise
concerned and a lasting interest in the enterprise. ✓✓
• Direct investment not only includes the initial acquisition of equity capital,
but also subsequent capital transactions between the foreign investor and
domestic and affiliated enterprises. ✓✓
• An increase of the ratio of FDI and GDP implies a greater share of FDI thus
increase of the level of globalization. ✓✓

• FDI flows (inward and outward) as a percentage of GDP indicate the

degree of global investment activities of the economy for a given time
period and reflects the changes between two period✓✓
( Max 26)
(A maximum of 8 marks for mere listing of facts/examples)

(Accept any other correct relevant response)
ADDITIONAL PART
Social costs of globalisation
• It can lead to drug trafficking as some people exploit the opportunities

offered by globalisation. 
• Human trafficking – there is an increase in the abduction of people who are
then forced to work as slaves or drug addicts. 
• Identity theft is also possible because people who use internet are exposed
to cyber-crimes. 
• The person can access another person`s banking details on the internet
and use that information to withdraw money from his account. 
• Due to globalisation, unregistered companies may create fake accounts for
people to buy goods on-line and be robbed of their hard earned money.  (10)
(Accept any other relevant explanation)
CONCLUSION
Globalisation has influenced the macroeconomic policies of different countries to

accommodate international trade.  (2)
TOTAL SECTION C: [40]
GRAND TOTAL: [150]

2023 Econ Grade 11 p2 Nov MG

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

2023 Econ Grade 11 p2 Nov MG

Uploaded by

Copyright:

Available Formats

FINAL EXAMINATION

This marking guidelines consists of 21 pages.

Copyright reserved Please turn over

1.1 MULTIPLE CHOICE QUESTIONS

1.1.2 D - marginal cost✓✓

1.1.5 A - trade liberalisation✓✓

1.2 MATCHING ITEMS

1.2.2 F - This occurs when a decrease in price result in a big increase in

1.2.5 H - As the income of consumers rises, less products are demanded at

Copyright reserved Please turn over

1.3 ONE TERM

1.3.1 Economic profit✓

1.3.2 Price elasticity of supply ✓

1.3.5 Explicit costs✓

1.3.6 Long run✓

TOTAL SECTION A: [30]

Copyright reserved Please turn over

2.1 Answer the following questions.

2.1.1 Name any TWO examples of variable costs.

2.1.2 What effect will the increase of absolute prices have on

The demand for goods and services will decrease. ✓✓ (1 x 2) (2)

2.2 DATA RESPONSE

2.2.2 Identify the initial equilibrium quantity of tea demanded.

2.2.3 Briefly describe the term complementary goods.

It is goods or services that are used together. ✓✓ OR A need cannot

2.2.4 What may have caused a decrease in quantity of tea demanded?

An increase in the price of a complementary good such as sugar✓✓ (2)

Copyright reserved Please turn over

2.2.5 Why is it important for the producer to understand the

2.3. DATA RESPONSE

2.3.1 What market structure is represented by the table?

Perfect market ✓ (1)

2.3.2 Identify the quantity at which the firm made a loss?

2.3.3 Briefly describe the term total revenue.

Total revenue is the amount of money that a business earns in a

2.3.4 Determine the value of A.

Copyright reserved Please turn over

2.3.5 Illustrate with the aid of graph how maximum profit is

• The two markets are interdependent ✓✓

Copyright reserved Please turn over

2.5 How is competition in the market beneficial to consumers?

• When there is competition amongst businesses, quality goods are

QUESTION 3: CONTEMPORARY ECONOMIC ISSUES

3.1 Answer the following questions.

3.1.1 Name any TWO examples of trade agreements.

• Free trade zone (FTZ) ✓

3.1.2 Why is it important to protect the environment?

The livelihood of all living things; people and animals depend

3.2 DATA RESPONSE

3.2.1 Name any ONE country that is represented by the haves.

Copyright reserved Please turn over

(Accept any other correct relevant answer)

3.2.2 Mention ONE characteristic of countries that are represented by

• High poverty levels✓

3.2.3 Briefly describe the term North-South divide.

3.2.4 How would developing countries benefit from globalization?

• Countries will benefit from increased trade and investment,

(Accept any other correct relevant answer)

3.2.5 Why is South Africa regarded as a dual economy?

• South Africa has characteristics of both developed and

3.3 DATA RESPONSE

3.3.1 Which province has recently been affected by cholera outbreak in

Copyright reserved Please turn over