2.1 Explain excise duty - NSC Consumer Studies - Question 2 - 2017 - Paper 1

A guarantee is an assurance that a product will remain functional for a specified period of time. It serves as a promise from the manufacturer, ensuring that they will address any faults that arise within the specified time frame. It assures consumers that their product meets certain quality standards.

Tiered-level or multilevel marketing operates on the principle that a product is sold and income is derived from sales rather than recruitment. This distinguishes it from illegal pyramid schemes, which primarily generate revenue through recruitment rather than actual product sales.

To use water responsibly with a washing machine, one can ensure that full loads are washed to minimize the number of cycles. Using the correct water level needed for the amount of laundry can also reduce water waste, as can switching to a high-efficiency washing machine designed to use less water overall.

To use electricity responsibly, select the correct wash cycle to match the load size and always use cold water when possible to reduce energy consumption. Additionally, ensuring that the machine is switched off after use can help save electricity.

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These clubs may be considered legal as they operate on a collective basis, pooling funds for the benefit of the members, rather than for profit, and typically following regulations governing savings clubs.

Club members benefit from receiving non-perishable groceries by gaining access to bulk savings, ensuring they have essential items available, and contributing to more predictable monthly budgets instead of uncertain cash payouts.

Interest rate hikes generally lead to lower inflation rates. When interest rates increase, borrowing becomes more expensive, which reduces consumer spending and business investment. This slowdown in economic activity can decrease demand for goods and services, ultimately putting downward pressure on the inflation rate.