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2.1 Give THREE examples of indirect taxes that consumers pay on goods and services - NSC Consumer Studies - Question 2 - 2021 - Paper 1
Question 2
2.1 Give THREE examples of indirect taxes that consumers pay on goods and services. 2.2 Name TWO ways of using energy more efficiently when lighting a home. 2.3 St... show full transcript
Worked Solution & Example Answer:2.1 Give THREE examples of indirect taxes that consumers pay on goods and services - NSC Consumer Studies - Question 2 - 2021 - Paper 1
Step 1
Name TWO ways of using energy more efficiently when lighting a home.
Answer
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Switch off lights when not in use: This simple action can significantly reduce energy consumption.
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Use energy-efficient bulbs: Replace traditional incandescent bulbs with compact fluorescent light (CFL) or LED bulbs, which use less energy and last longer.
Step 2
Discuss the impact of the production of EcoBricks on Municipal Service Delivery.
Answer
The EcoBrick initiative can improve municipal service delivery by decreasing the volume of waste that municipalities need to manage. Reduced landfill usage can lead to lower operational costs for waste management. Furthermore, community involvement in EcoBrick production can foster a sense of responsibility and collaboration, enhancing the municipality's relationship with its residents.
Step 3
Explain the role that communities should play to help reduce the debt of their municipality.
Answer
Communities can play a critical role in debt reduction through several actions:
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Pay for services: Residents should pay their water and electricity bills on time to ensure that municipalities have the funds needed for service provision and debt repayment.
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Engagement in projects: Joining community initiatives aimed at maintaining public infrastructure can save municipalities repair costs.
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Responsible consumption: Reducing wastage and promoting recycling can lessen the burden on municipal resources, allowing funds to allocate to debt repayments.
Step 4
Identify TWO unfair business practices by the shop owner.
Answer
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False Promise: The shop owner misrepresented the product by claiming it supports the back, which was not the case, leading to consumer dissatisfaction.
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Refusal to Honor Warranty: Despite the bed having a two-year guarantee, the owner refused to repair or replace the defective item, violating consumer rights.
Step 5
Step 6
Analyse how consumers with home loans are affected by the change in the repo rate.
Answer
When the repo rate decreases, banks generally lower interest rates on home loans. This change benefits consumers as their monthly repayments decrease, making home loans more affordable.
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Lower Monthly Installments: A reduction in the mortgage interest rate from 10% to 9.75% allows borrowers to save on their repayments, increasing disposable income.
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Potential Borrowing: With lower interest rates, more consumers may qualify for home loans, stimulating the housing market. However, if current borrowers do not adjust their loans, they may lose the opportunity to benefit from reduced interest rates.