4.1 Answer the following questions. 4.1.1 Name any TWO redress methods used to redistribute wealth. 4.1.2 Why do markets fail (find it difficult) to sustain the environment? 4.2 Study the information below and answer the questions that follow. COSTS AND BENEFITS OF BUILDING A DAM PROJECTS ECONOMIC COSTS (Rm) 10 000 15 000 25 000 ECONOMIC BENEFITS (Rm) 20 000 13 000 25 000 COST-BENEFIT RATIO (CBR) 2 : 1 0.87 : 1 0.9 : 1 4.2.1 Identify in the information above a project that has the most benefits. 4.2.2 Name any ONE possible social benefit of building a bridge. 4.2.3 Briefly describe the term social cost. 4.2.4 Why should the government conduct a cost-benefit analysis before starting a new project? 4.2.5 Determine which project is most beneficial by calculating the cost-benefit ratio for Project B. Show ALL calculations.

NSC Economics Environmental Sustainability: 4.1 Answer the following questio

4.1 Answer the following questions - NSC Economics - Question 4 - 2023 - Paper 2

Question 4

4.1 Answer the following questions. 4.1.1 Name any TWO redress methods used to redistribute wealth. 4.1.2 Why do markets fail (find it difficult) to sustain the en... show full transcript

Worked Solution & Example Answer:4.1 Answer the following questions - NSC Economics - Question 4 - 2023 - Paper 2

Step 1

4.1.1 Name any TWO redress methods used to redistribute wealth.

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Answer

Affirmative Action: This method aims to promote equal opportunities in education and employment for previously disadvantaged groups.
Wealth Redistribution: This can occur through taxation policies where higher income earners pay more taxes to support social programs that benefit lower income groups.

Step 2

4.1.2 Why do markets fail (find it difficult) to sustain the environment?

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Markets fail to sustain the environment primarily due to the presence of externalities. For example, when companies pollute the environment, they do not bear the full costs associated with their actions, leading to overconsumption of natural resources and insufficient incentives to adopt more sustainable practices. Additionally, the lack of defined property rights can result in the overuse of common resources.

Step 3

4.2.1 Identify in the information above a project that has the most benefits.

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Answer

Project C has the most benefits, as it has economic benefits of Rm 25,000, which equals its economic costs.

Step 4

4.2.2 Name any ONE possible social benefit of building a bridge.

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A social benefit of building a bridge could be increased accessibility: It improves transportation routes, allowing for easier movement of people and goods.

Step 5

4.2.3 Briefly describe the term social cost.

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Answer

Social cost refers to the total cost to society resulting from an economic activity, including both the private costs incurred by individuals or firms and the external costs imposed on third parties or the environment.

Step 6

4.2.4 Why should the government conduct a cost-benefit analysis before starting a new project?

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The government should conduct a cost-benefit analysis to determine the feasibility and economic viability of the project. This analysis helps assess whether the benefits of the project outweigh the costs, ensuring that resources are allocated efficiently and that the project truly serves the public interest.

Step 7

4.2.5 Determine which project is most beneficial by calculating the cost-benefit ratio for Project B. Show ALL calculations.

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For Project B:

Economic Costs = Rm 15,000
Economic Benefits = Rm 13,000

Cost-Benefit Ratio (CBR) = Economic Benefits / Economic Costs

$CBR = rac{13,000}{15,000} = 0.87 : 1$

Thus, the cost-benefit ratio for Project B is 0.87:1, indicating that the costs outweigh the benefits, and this project is less beneficial compared to Project C.

4.1 Answer the following questions - NSC Economics - Question 4 - 2023 - Paper 2

Worked Solution & Example Answer:4.1 Answer the following questions - NSC Economics - Question 4 - 2023 - Paper 2

4.1.1 Name any TWO redress methods used to redistribute wealth.

4.1.2 Why do markets fail (find it difficult) to sustain the environment?

4.2.1 Identify in the information above a project that has the most benefits.

4.2.2 Name any ONE possible social benefit of building a bridge.

4.2.3 Briefly describe the term social cost.

4.2.4 Why should the government conduct a cost-benefit analysis before starting a new project?

4.2.5 Determine which project is most beneficial by calculating the cost-benefit ratio for Project B. Show ALL calculations.

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