4.1 4.2 Answer the following questions. 4.1.1 Name TWO types of business cycles. [2 I 1} 4.1.2 HOW can SMMEs contribute to economic growth? {1 Jr 2} Study the graph below and answer the questions that follow. 4.2.1 4.2.2 4.2.3 4.2.4 4.2.5 SUPPLY AND DEHAHD OF DOLLARS Wormwood} Identify the demand curve that indicates a decrease in the demand for dollars. What type of exchange rate system is currently used in South Africa? Briey describe the term devaluation. Explain ONE factor that can influence the demand for the dollar. What is the effect on the rand when there is a decrease in the demand for dollars? {2} f2} {1} t1} {2} {2} {4} 40 MARKS - 20 MINUTES 4.1 Answer the following questions. 4.1.1 Name TWO problems of public sector provisioning. (2 x 1) (2) 4.1.2 What effect will low labour productivity have on inflation? (1 x 2) (2) 4.2 Study the graph below and answer the questions that follow. SUPPLY AND DEMAND OF US$ D S Price of R12 dollars (R/$) R10 D1 S 0 100 130 Quantity 4.2.1 At what point on the graph does the equilibrium for foreign exchange originally occur? (2) 4.2.2 What happens to the value of the rand when DD shifts to D,D,? Motivate your answer. (4) 4.2.3 How can the Central Bank of South Africa intervene in the market to influence the exchange rate? (4)4.1 Answer the following questions. 4.1.1 Give TWO reasons for public sector failure. (2 x 1) (2) 4.1.2 How will a decrease in export prices affect our country's terms of trade? (1 x 2) (2) 4.2 Study the graph below and answer the questions that follow. MARKET FOR US DOLLAR S Exchange rate R/US$ D1 E1 15.00 14.60 S D1 D 18 20 Quantity of US dollar 4.2.1 What market is depicted in the graph above? (1) 4.2.2 What effect does the shift in the demand curve have on the price of dollars? 4.2.3 Briefly describe the term exchange rate. (2) 4.2.4 What will the effect of the new price for dollars be on export trade between South Africa and the United States? (2) 4.2.5 Explain how an increase in the number of US tourists to South Africa will influence the value of the rand. (2x2) (4)4.3 Study the bar graph below and answer the questions that follow. GROSS DOMESTIC PRODUCT - AN ECONOMIC INDICATOR HOW DID SOUTH AFRICAN INDUSTRIES PERFORM IN THE FIRST QUARTER OF 2017? Industry growth in the first quarter of 2017, compared to the first quarter of 2016* Agriculture 22.2% Mining 12,8% GDP Personal services -0,7% -0,1% -0,6% Government -1,2% Finance -1,3% Construction -1,6% Transport -3,7% Manufacturing -4,8% Electricity -5,9% Trade -35% -25% -15% -5% 5% 15% 25% 35% Seasonally adjusted and annualised [Adapted from Stats SA GDP, 2017] 4.3.1 Which figure indicates that the GDP growth rate was not satisfactory? (1) 4.3.2 Identify the sector that contributed least to the GDP above. ( 1 ) 4.3.3 Give a reason why trade performed so poorly in respect of the total GDP. (2) 4.3.4 Why are only real GDP figures used to compare economic production that occurred in different years? (2) 4.3.5 What can the South African government do to ensure a better economic growth performance? (2 x 2) (4) 4.4 Briefly discuss health as a social indicator. (4 x 2) (8) 4.5 How can developing countries ensure the survival of labour-intensive industries in a global economy? (8) [40] TOTAL SECTION B: 8040 MARKS - 30 MINUTES 4.1 Answer the following questions. 4.1.1 Give any TWO examples of production indicators. (2 x 1) (2) 4.1.2 Why do developed countries favour the idea of free trade? (1 x 2) (2) 4.2 Study the graph below and answer the questions that follow. (bn) R200 R175 R150 Tax revenue R100 10 20 45 65 100 Tax rate % 4.2.1 Identify the curve in the graph above. (1) 4.2.2 At what tax rate will government revenue be maximised? (1) 4.2.3 How much revenue will the government receive if the tax rate is 100%? (2) 4.2.4 What effect will a decrease in the tax rate from 65% to 45% have on tax revenue? (2) 4.2.5 What consequences could a 1% VAT increase have on the different role players in the South African economy? (2 x 2) (4)