NSC Consumer Studies Sustainable consumption of water and electricity: 2.1 Explain excise duty.

Excise

Question

2.1 Explain excise duty.

Excise duty is commonly referred to as a sin tax; it is placed on the manufacture and sale of products/fast-moving daily consumables, mostly non-essential items such as tobacco, alcohol, and petrol.

2.2 Explain the term guarantee.

A guarantee is an assurance that a product will remain in working order for a particular length of time. A guarantee is a promise from the manufacturer that they will sort out any problems that arise with a product or service within a specific and fixed period of time.
Alternatively, a guarantee is a promise, in writing, that the quality or durability of a product or service will meet certain standards, and that if the product or service does not satisfy the terms of the guarantee, then the manufacturer may repair it or will be liable to replace it.

2.3 State why tiered-level or multilevel marketing is not considered to be illegal pyramid schemes.

A product is sold; income is derived from the sales.

2.4 Explain how using the washing machine may contribute to the responsible use of:

2.4.1 Water

- Wash full loads of clothing; ensure that the washing machine is full of clothes before washing.
- Use grey water from the washing machine to water plants/garden; this will reduce the amount of clean water needed.
- Use the correct programmable automatic function adjusted to ensure that the minimum amount of water used for the wash.
- Use the appropriate water level needed for the amount of clothes.

2.4.2 Electricity

- Choose the correct/shorthand washing cycle for energy efficiency.
- Use cold water (with cold-water detergents) to reduce electricity consumption, but not by having to heat water in the geyser.
- Avoid many small loads/ wash full loads, thus reducing electricity consumption.
- Make sure the machine is switched off after use because it indicates an impact on electricity usage.
- A-rated washing machines are more energy efficient/use less electricity.

2.5 Read the scenario below and answer the questions that follow.
In the past, community-based saving clubs focused on individuals contributing to a joint pool of money and paying out cash on a rotating basis. More of these clubs now rotate through buying non-perishable groceries instead of paying out money or cash.

2.5.1 Give the term for the clubs in the scenario above.

Stokvel.

2.5.2 Identify, in the scenario, why these clubs may be considered legal.

These clubs may be considered legal as they are involved in buying non-perishable groceries and following a structured plan.

2.5.3 Discuss how club members benefit from receiving non-perishable groceries that are bought in bulk.

Club members benefit as they can purchase groceries at a reduced price, ensuring a steady supply without the stress of immediate payment.

2.6 Study the diagram below and answer the question that follows.
Write a paragraph and explain the impact of interest rate hikes on the inflation rate.

Interest rate hikes are intended to cool down an overheated economy. When interest rates increase, borrowing becomes more expensive; this typically reduces spending and investment.
As a result, slower consumer demand leads to lower inflation rates. Higher interest rates discourage excessive borrowing, which in turn can help stabilize prices and maintain a manageable inflation rate in the long run.

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

Worked Solution & Example Answer:2.1 Explain excise duty - NSC Consumer Studies - Question 2 - 2017 - Paper 1

Explain excise duty.

Explain the term guarantee.

State why tiered-level or multilevel marketing is not considered to be illegal pyramid schemes.

Explain how using the washing machine may contribute to the responsible use of: Water.

Explain how using the washing machine may contribute to the responsible use of: Electricity.

Give the term for the clubs in the scenario above.

Identify, in the scenario, why these clubs may be considered legal.

Discuss how club members benefit from receiving non-perishable groceries that are bought in bulk.

Explain the impact of interest rate hikes on the inflation rate.

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