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4.1 Answer the following questions. 4.1.1 Name any TWO services derived by the government that are vital to enhance people's lifestyle and level of economic and social development. (2 x 1) (2) 4.1.2 How can domestic figures be converted to national figures? (1 x 2) (2) 4.2 Study the table below and answer the questions that follow. BALANCE OF PAYMENTS (R Millions) Current Account 2015 2016 2017 Merchandised exports 970 623 105 8032 1 108 322 Net gold exports 59 521 66 762 66 411 Service receipts 191 605 210 865 210 238 Income receipts 98 016 87 773 81 637 Merchandised imports 1 076 290 1 090 089 1 105 876 Payment for services 197 643 218 830 215 544 - Income payments 198 382 208 243 225 201 Current transfers 33 533 -27 458 -38 303 Balance on current account -186 084 -121 188 -114 317 [Source: SARB Quarterly Bulletin, March 2018] 4.2.1 During which year did South Africa experience the biggest trade deficit in the balance of trade? (1) 4.2.2 Which account in the balance of payments reflects the figures of the trade balance? (1) 4.2.3 Describe the term balance of trade. (2) 4.2.4 What can South Africa do to affect the export of goods positively? (2) 4.2.5 How does international trade affect the economy positively? (4)4.1 Answer the following questions. 4.1.1 Give any TWO examples of production indicators. (2 x1) (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)4.1 Answer the following questions. 4.1.1 Give TWO reasons for public sector failure. (2x 1) (2) 4.1.2 How will a decrease in export prices affect our country's terms of trade? (1 x2) (2) 4.2 Study the graph below and answer the questions that follow. MARKET FOR US DOLLAR S Exchange rate R/US$ D D1 E1 15.00 14.60 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? (1) 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)
