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Answer the following questions - NSC Economics - Question 4 - 2023 - Paper 1
Question 4
Answer the following questions. 4.1.1 Name any TWO characteristics of countries in the South. (2) 4.1.2 How can an increase in the population's income levels influe... show full transcript
Worked Solution & Example Answer:Answer the following questions - NSC Economics - Question 4 - 2023 - Paper 1
Step 1
4.1.1 Name any TWO characteristics of countries in the South.
Answer
Countries in the South often exhibit characteristics such as:
- Low standard of living - These countries tend to have lower income levels and quality of life compared to developed nations.
- High population growth - Many countries in the South experience rapid population growth, leading to challenges in resource allocation and economic development.
Step 2
4.1.2 How can an increase in the population's income levels influence the demand for imports?
Answer
An increase in population income levels typically leads to higher demand for goods and services. Consequently, as individuals have more disposable income, they may seek imported products that are perceived as higher quality or are not available domestically.
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4.2.3 Briefly describe the term business cycles.
Answer
Business cycles refer to the fluctuations in economic activity that an economy experiences over a period. These cycles can be categorized into four phases: expansion, peak, contraction, and trough, indicating varying levels of economic growth and activity.
Step 6
4.2.4 How can competition stimulate aggregate supply?
Answer
Competition among businesses can enhance aggregate supply by:
- Encouraging innovation and efficiency in production methods.
- Leading to the establishment of new businesses, which increases the overall production of goods and services.
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4.2.5 Explain the effect of demand-side and supply-side policies on the general price level and real output, with reference to the graph above.
Answer
Demand-side policies aim to increase overall demand within the economy, shifting the AD curve outward, which can raise both the general price level and real output. Conversely, supply-side policies focus on enhancing production efficiency, shifting the AS curve outward, which can stabilize prices while increasing real output.
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4.3.4 Explain the impact of malnutrition on the child mortality rate.
Answer
Malnutrition significantly increases child mortality rates as it leads to weakened immune systems, making children more susceptible to diseases. Lack of essential nutrients can also hinder proper growth and development, resulting in higher morbidity and mortality.
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4.3.5 Why is population size important to businesses and/or the government?
Answer
Population size informs businesses and governments on infrastructure planning, resource allocation, and market potential. A larger population may indicate greater demand for goods and services, while conversely, it can also signify greater challenges in providing adequate services.
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4.4 Discuss spatial development initiatives (SDIs) as South Africa's endeavours (efforts) in regional development.
Answer
Spatial Development Initiatives (SDIs) aim to stimulate economic growth and regional development in South Africa by targeting underdeveloped areas. They focus on infrastructure development, promoting private-public partnerships, and fostering sustainable industrial development to alleviate poverty and enhance living standards.
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4.5 Analyse the relationship between the financial sector and other participants in the circular-flow model.
Answer
The financial sector plays a crucial role in the circular-flow model by facilitating the flow of money between savers and borrowers. It provides avenues for households to save while offering loans to businesses and individuals. This interaction supports investment, consumption, and overall economic activity.