3.1 Answer the following questions - NSC Economics - Question 3 - 2023 - Paper 1
Question 3
3.1 Answer the following questions.
3.1.1 Give any TWO examples of wealth tax.
3.1.2 Why is small business development important to the South African economy?
3.2... show full transcript
Worked Solution & Example Answer:3.1 Answer the following questions - NSC Economics - Question 3 - 2023 - Paper 1
Step 1
3.1.1 Give any TWO examples of wealth tax.
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Answer
Two examples of wealth tax include:
Capital gains tax
Estate duty
Step 2
3.1.2 Why is small business development important to the South African economy?
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Small business development is crucial for the South African economy because:
It helps create employment opportunities, addressing the issue of structural unemployment.
Small businesses generate income for households, which helps reduce poverty.
They contribute positively to economic growth by increasing competition and fostering innovation.
Step 3
3.2.1 Identify a term in the extract above, which relates to the removal of import tariffs.
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The term is 'Duty-free.'
Step 4
3.2.2 Name ONE other trade protocol of which South Africa is part.
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One other trade protocol that South Africa is part of is the Southern African Customs Union (SACU).
Step 5
3.2.3 Briefly describe the term protectionism.
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Protectionism refers to a government policy aimed at restricting imports to protect domestic industries from foreign competition. This is achieved through various measures such as tariffs, import quotas, and subsidies.
Step 6
3.2.4 Explain a disadvantage when applying the protectionism policy.
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One disadvantage of applying protectionism is that other countries may retaliate by implementing their own protectionist measures. This can lead to trade wars and increased costs for consumers and businesses alike.
Step 7
3.2.5 How can the African Growth and Opportunity Act (AGOA) negatively affect South Africa?
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The African Growth and Opportunity Act (AGOA) can negatively affect South Africa by potentially exposing local industries to increased foreign competition, which may undermine domestic businesses that cannot compete with imported goods. Additionally, reliance on AGOA can make South Africa vulnerable to changes in US trade policy.
