NSC Consumer Studies Financial and contractual aspects consumers should take note of: Read the extract below and answe

Question

Read the extract below and answer the questions that follow.

FOOD PRICES HIT PEOPLE LIVING IN RURAL AREAS THE HARDEST

The consumer price index (CPI) for June was 6.6%. The CPI for people living in rural areas for June was 7.7%. This is because transport costs have a greater influence on people living in remote areas and this causes an increase in all prices. Drought in the second half of 2013 caused a sharp increase in the price of bread and cereals. A higher maize price means a higher price for the feeding of chickens. Therefore, there is a link between the price of maize and poultry.

The price of fruit and vegetables can be ascribed to the abnormal high rainfall that caused flooding in the northern part of the country in March. This led to shortages and sharp price increases. Prices also increased as a result of the weakening of the exchange rate of the rand.

[Adapted from Die Burger, 24 July 2014]

2.1.1 Define the term consumer price index.

2.1.2 Explain the reasons for the increase of food prices.

2.2 State practical ways to save water in the following cases:

2.2.1 Toilet flushing

2.2.2 Gardening

2.3 Redraw and complete the table below with regard to the following types of money-making schemes:

CRITERIA

PYRAMID SCHEME

MULTILEVEL MARKETING SCHEME

Source of income

Status in South Africa

2.4 Read the extract below and answer the question that follows.

MAKE YOUR BONUS WORK FOR YOU THIS YEAR

Consumers are urged to beat inflation in 2017 by using their 13th cheque wisely, rather than spending it on the festivities in December. Borrowing money in January to last for the first month of the new year can become a financial burden for the rest of the year. Financial advisors give the following tips:

Pay off high interest-bearing debt.
Pay next year’s school fees.
Pay extra on your home loan.
When on holiday with family or friends, share accommodation and food expenses regardless of where you stay.
Make sure that every family contributes.

Read the extract below and answer the questions that follow - NSC Consumer Studies - Question 2 - 2016 - Paper 1

Worked Solution & Example Answer:Read the extract below and answer the questions that follow - NSC Consumer Studies - Question 2 - 2016 - Paper 1

Define the term consumer price index.

Explain the reasons for the increase of food prices.

Toilet flushing

Gardening

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