# Economics Grade 11 P2 Eastern Cape November 2023 Memo (Eng) > Grade 11 Economics Paper 2 memorandum from the Eastern Cape November Exam 2023 (English), 21 pages. Read online or download the free PDF. - Page: https://www.hlayiso.com/library/economic-p2-gr11-memo-nov2023-english/d2af31bb-f8f8-4d0c-8d69-c7eb8d80032d - Updated: 2026-09-27 - Subject: Economics - Grade: Grade 11 - Language: English - Document type: Memorandum - Year: 2023 - Exam period: Eastern Cape November Exam - Paper: 2 - Curriculum: CAPS - Pages: 21 Breadcrumbs: [Home](https://www.hlayiso.com/) › [Library](https://www.hlayiso.com/library) › [Grade 11](https://www.hlayiso.com/library/grade-11) › [Economics](https://www.hlayiso.com/library/grade-11/economics) › [Economics Grade 11 P2 Eastern Cape November 2023 Memo (Eng)](https://www.hlayiso.com/library/economic-p2-gr11-memo-nov2023-english/d2af31bb-f8f8-4d0c-8d69-c7eb8d80032d) ## About this document Economics · Grade 11 · Eastern Cape November Exam · 2023 · English. Memorandum, 21 pages. Read online or download the PDF. Read it free online on the page above; download the PDF from there. ## Matching paper and memo - [ECONOMICS P2 QP GR11 NOV2023 English](https://www.hlayiso.com/library/economics-p2-qp-gr11-nov2023-english/4d677eb8-2e94-4c13-96c0-a9e115c3d907) — QP · 2023 · Eng ## Document text Text extracted from the PDF. Layout, diagrams and tables may not survive extraction. ### Page 1 Downloaded from hlayiso.com NATIONAL SENIOR CERTIFICATE GRADE 11 NOVEMBER 2023 ECONOMICS P2 MARKING GUIDELINE MARKS: 150 This marking guideline consists of 21 pages. ### Page 2 Downloaded from hlayiso.com 2 ECONOMICS P2 (EC/NOVEMBER 2023) SECTION A (COMPULSORY) QUESTION 1 1.1 MULTIPLE-CHOICE QUESTIONS 1.1.1 B Oligopoly  1.1.2 C Price makers  1.1.3 B Short run  1.1.4 A MC = MR  1.1.5 C Income  1.1.6 D Capitalism  1.1.7 D Foreign Direct Investment  1.1.8 B Non-renewable  (16) 1.2 MATCHING ITEMS 1.2.1 H – goods and services are traded  1.2.2 F – difference between total income from the sale of goods and explicit costs  1.2.3 A – aggregate demand is equal to aggregate supply  1.2.4 G – the next best alternative that is given up  1.2.5 B – demand in smaller quantities when income increases  1.2.6 C – disputes international trade agreements  1.2.7 E – when costs per unit decrease and quantity increases  1.2.8 D – introduction of contaminants that damage the natural environment  (8 x 1) (8) Copyright reserved Please turn over ### Page 3 Downloaded from hlayiso.com (EC/NOVEMBER 2023) ECONOMICS P2 3 1.3 GIVE ONE TERM 1.3.1 Homogenous  1.3.2 Sunk costs  1.3.3 Marginal utility  1.3.4 Absolute advantage  1.3.5 Indigenous Knowledge System  1.3.6 Climate change  (6 x 1) (6) TOTAL SECTION A: 30 Copyright reserved Please turn over ### Page 4 Downloaded from hlayiso.com 4 ECONOMICS P2 (EC/NOVEMBER 2023) SECTION B Answer TWO of the three questions from this section in your ANSWER BOOK. QUESTION 2: MICROECONOMICS 2.1 Answer the following questions. 2.1.1 Name any TWO examples of fixed costs. • Rent  • Salaries  • Insurance  • Loan repayment  • Insurance premiums  (Accept any other relevant correct response.) (2) 2.1.2 How are businesses affected by inelastic demand? • If demand is inelastic, it means businesses will continue to make revenue and profits, because demand will not change even if prices change. / Businesses will be able to stay afloat.  (2) (Accept any other relevant correct response.) 2.2 DATA RESPONSE 2.2.1 At which quantity is output maximised? 100 units  (1) 2.2.2 What is represented by the shaded area in the above graph? Economic loss  (1) 2.2.3 Describe the term perfect market. It is the market where the sellers of a product or service are free to compete fairly and sellers and buyers have complete information about market conditions.  (Accept any other relevant correct response.) (2) 2.2.4 Why are sellers in a perfectly competitive market known as price takers? • They are known as price takers because the pressure of competing firms forces them to accept the prevailing equilibrium price in the market  • A single seller has no influence over the market price  (Accept any other relevant correct response.) (2) Copyright reserved Please turn over ### Page 5 Downloaded from hlayiso.com (EC/NOVEMBER 2023) ECONOMICS P2 5 2.2.5 How do consumers benefit from perfect competition? They benefit from: • Low prices, high quality goods and a variety of goods to choose from.  • Easy accessibility to the product, making it easy to shop with no hustles.  (Accept any other correct relevant response.) (4) 2.3 DATA RESPONSE 2.3.1 From the extract above, which price displays that the product is elastic? $3,00  (1) 2.3.2 Name any ONE other degree of elasticity of demand. • Perfectly elastic demand  • Perfectly inelastic  • Unitary elasticity  • Relative inelastic demand  (Any 1 x 1) (1) 2.3.3 Describe the term price elasticity of demand. • Price elasticity refers to the responsiveness of the quantity demanded to a change in price  • It refers to the degree to which demand responds to a change in an economic factor  (Accept any other correct relevant response.) (2) 2.3.4 Briefly explain perfectly inelastic demand. • It is a situation where there are no changes in quantity demanded even if there is change in price of the good  • The percentage change in quantity demanded does not change when there is any percentage change in price  (Accept any other correct relevant response.) (2) 2.3.5 Examine the importance of price elasticity of demand and demand forecasting. • Price elasticity of demand indicates how much of a good or service buyers consume when the price changes  • It is important for formulating government policies, especially the taxation policy  • Consumers are able to make rational decisions that economists use on a daily basis  • Measuring demand sensitivity to price changes can be useful in predicting consumer behaviour as well as forecasting major events, such as economic recessions or recovery  (Accept any other correct relevant response.) (4) Copyright reserved Please turn over ### Page 6 Downloaded from hlayiso.com 6 ECONOMICS P2 (EC/NOVEMBER 2023) 2.4 Briefly discuss any TWO objectives of a business using the SMART principle. SPECIFIC: • The idea must be identifiable and understood and not merely a random idea,  for example the business must be the most profitable in the country.  • The goals must be well defined and focused  (8) MEASURABLE: • It must be possible to test or measure whether the goal has been reached  for example, in order to reach its specific goal, the business must make an acceptable profit monthly  • Goals must have a measurable outcome  AGREED: • Is a small business, the goal is easy to set as the owner is the only one who has to agree  • In a large business, there will be many stakeholders who are people with an interest in the success of the business  REALISTIC: • The goal must not be out of reach for the business, for example, the business must be capable of generating the required profit  • Break down each goal into a specific set of tasks and activities to accomplish the goal  TIME SPECIFIC: • There must be a time limit on achieving the goal, for example, the business must become the most profitable business within five years  • Business goals and objectives cannot be achieved when there is no time frame tied to the goal setting process  • Achievable business goals are based on the current conditions and realities of the business climate  • It is important to periodically review goals and make adjustments if necessary  (Accept any other correct relevant response.) (8) Copyright reserved Please turn over ### Page 7 Downloaded from hlayiso.com (EC/NOVEMBER 2023) ECONOMICS P2 7 2.5 How do monopolies come to existence? • A monopoly is a business that exists in a market with no competition and can therefore, set its own terms and prices and maximise its profits  • Using property rights, buying up competition and hoarding a scarce resource, among others, are ways to monopolise the market  • Businesses may be granted copyrights and patents by the government because, the government has laws in place to protect intellectual property, whereby, the creators of that property are given monopoly power over ideas, concepts, designs etc.  • Nationalisation of businesses, where, the government itself takes full control of the business or industry  • Monopolies may be created through mergers and acquisitions, whereby, economies of scale create economic efficiencies that allow businesses to drive down the process to a point where competitors cannot survive and will leave the market  (Accept any other correct relevant response.) (8) [40] Copyright reserved Please turn over ### Page 8 Downloaded from hlayiso.com 8 ECONOMICS P2 (EC/NOVEMBER 2023) QUESTION 3: CONTEMPORARY ECONOMIC ISSUES 3.1 3.1.1 Name any TWO methods of protecting the environment. • Price based method  • Market based method  • Use of laws and regulations  (Accept any other correct relevant response.) (2) 3.1.2 How can the government intervene to ensure sustainable development? • Setting and implementing water quality policy framework and standards  • Regulating the discharge of pollutants into the environment and water waste management  (Accept any other correct relevant response) (Any 1 x 2) (2) 3.2 DATA RESPONSE 3.2.1 Give any ONE challenge encountered by countries of the South. • High population pressure  • Poverty  • Hunger  • Disease  • Environmental deterioration  • Conflict  • Natural disasters (Accept any other correct relevant response.) (Any 1 x 1) (1) 3.2.2 Give ONE example of a cross border issue that countries of the South are experiencing. • Environmental protection  • HIV/Aids  • Movement of capital and labour  (1) 3.2.3 Briefly describe the term North-South divide. • North-South divide refers to the grouping of countries along the lines of socio-economic and political characteristics  • North-South divide refers to the gap between the global North and the global South in terms of development and wealth  (Accept any other correct relevant response.) (Any 1 x 2) (2) Copyright reserved Please turn over ### Page 9 Downloaded from hlayiso.com (EC/NOVEMBER 2023) ECONOMICS P2 9 3.2.4 Explain the term free trade areas. Countries trading freely with one another without trade restrictions / participating countries remove all trade barriers among themselves on goods and services traded.  (2) 3.2.5 Examine the negative impact of Covid-19 on developing countries in Africa • High levels of unemployment had been experienced by many African countries because,  the lockdown restrictions disrupted the economy greatly with the closure of businesses and consequential loss of jobs  • There has been a reduction of tourism which is the major economic sector of many countries like South Africa, Kenya, Tanzania, Ethiopia etc.  • Many investors withdrew their investment from these countries leading to a decline in foreign direct investment flows  • There has been a shift of national budgets towards the health sector, slowing down economic development in other sectors of the economy  (Accept any other correct relevant response.) (4) 3.3 DATA RESPONSE 3.3.1 Identify from the extract above ONE pillar of the National Framework for Sustainable Development (NFSD). • Nature  • Environmental health  • Climate change  • Living organisms  • Biosecurity  (1) 3.3.2 Give any ONE example of green tax. • Tax on pollution  • Tax on energy  • Carbon emission  • Fuel consumption  • Tax on transport  (Accept any other correct relevant response.) (1) Copyright reserved Please turn over ### Page 10 Downloaded from hlayiso.com 10 ECONOMICS P2 (EC/NOVEMBER 2023) 3.3.3 Describe the term National Framework for Sustainable Development. National Framework for Sustainable Development represents the comprehensive framework for all approved national strategies, policies and agendas concerned with organising environmental work in the country and maintaining a sustainable environment that supports economic growth.  (Accept any other correct relevant response.) (2) 3.3.4 Briefly explain the environmental impact assessment as an approach to sustainable development. • This is a tool that is used to assess the significant effects of a project or development proposals on the environment  (Accept any other correct relevant response.) (2) 3.3.5 How can economic growth and environmental protection be balanced? • Producers should use more of renewable resources than non- renewable resources  • Waste water generated by industries should be recycled to produce clean water  • Natural resources should be used cautiously so that economic growth and ecological conservation go together  (Accept any other correct relevant response.) (Any 2 x 2) (4) Copyright reserved Please turn over ### Page 11 Downloaded from hlayiso.com (EC/NOVEMBER 2023) ECONOMICS P2 11 3.4 Briefly discuss change in employment conditions and environmental deterioration as consequences of globalisation. Changes in employment conditions • With globalisation more companies have expanded to other countries either by outsourcing of services or setting up branches  • This has increased more jobs for the locals and has also improved the performance of these economies  • It has contributed to higher wage levels and increase in productivity  • At the same time, it has led to job losses in the developed countries  • The standard of employment around the world has become more similar, resulting in people migrating from one country to another because of better job opportunities  • Globalisation has resulted in increased in employment opportunities in an economy  • The need to produce more goods for local and international markets creates demand for more labour  this usually benefits the local labour market  (8) Environmental deterioration • The need to produce more goods requires extensive exploitation of natural resources  • The environmental degradation caused by globalisation include: o The depletion of minerals  o Damage to the flora and fauna  o Land, water, and air pollution  • Large scale production has disturbed nature to such an extent that natural disasters occur more often than before  • These include tsunamis, El Niño, drought, global warming etc.  • Because of progress in international trade, natural resources are being exhausted, more machinery is being used to produce goods more ships, aeroplanes and trucks are used to carry the goods and all this causes pollution which is harming the planet  • The state of our environment is continuously declining and various renewable resources, such as fresh water, forests, plants and animal species are being exhausted  • The consumption pattern of richer countries are the main source of environmental destruction and lead to global warming  • Globalisation has aided deforestation and the huge consumption of non-renewable fossil fuels and natural resources  • The more forests are cut down and the more water ways are overfished, the poorer and unhealthier our environment becomes  • In addition to greenhouse emissions, globalisation has caused many animals’ natural habitats to fall victim to increased farming, ranching fishing and other economic activities  Copyright reserved Please turn over ### Page 12 Downloaded from hlayiso.com 12 ECONOMICS P2 (EC/NOVEMBER 2023) 3.5 Analyse the importance of conserving biodiversity. • Biodiversity refers to the variety of different living organisms from all sources, including terrestrial, marine and other aquatic ecosystems  • Biodiversity plays an important role in sustainable development and poverty eradication  • Biodiversity supports food security and sustained livelihood through overall genetic diversity  • South Africa’s national biodiversity strategy and action plan guides conservation and the management of biodiversity  • Ensures sustainable and equitable benefits for all communities  (Accept any other correct relevant response.) (8) [40] Copyright reserved Please turn over ### Page 13 Downloaded from hlayiso.com (EC/NOVEMBER 2023) ECONOMICS P2 13 QUESTION 4: MICROECONOMICS AND CONTEMPORARY ECONOMIC ISSUES 4.1 4.1.1 Name any TWO objectives of Millennium Development Goal. • Combating poverty and hunger  • Reduce child mortality  • Improve maternal health  • Combat HIV/Aids, malaria and other diseases  • Ensure environmental sustainability  • Develop a global partnership for development  (Accept any other correct relevant response.) (Any 2 x 1) (2) 4.1.2 How can businesses minimise costs? • Improve process efficiency  • Negotiate better pricing with suppliers  • Find less expensive material or labour  • Eliminate or reduce unnecessary spending  (Any 1 x 2) (2) 4.2 DATA RESPONSE 4.2.1 Identify curve B Average total cost / average cost  (1) 4.2.2 Name the type of profit illustrated above. Normal profit  (1) 4.2.3 Explain Marginal Revenue. It is the additional revenue earned from selling an extra unit.  (2) (Accept any other correct relevant response.) 4.2.4 Briefly describe diseconomies of scale. Diseconomies of scale occur when the cost per unit increases while the quantities produced increase  (Accept any other correct relevant response.) (2) 4.2.5 Examine the importance of marginal costs. • Prevents loss of money through loss of sales or overproduction  • Determines how many products are needed to satisfy customer demand  • Provides company with important metrics for profit planning  (Accept any other correct relevant response.) (4) Copyright reserved Please turn over ### Page 14 Downloaded from hlayiso.com 14 ECONOMICS P2 (EC/NOVEMBER 2023) 4.3 DATA RESPONSE 4.3.1 From the extract, identify the leading Multinational Enterprises. • Uber  • Twitter  • Meta  (Any 1 x 1) (1) 4.3.2 Name ONE advantage of Multinational Enterprises • More cost effective to produce goods in local market than to export a finished product  • Goods can be modified to suit local people  • Provide job opportunities to local people  • Contribute to economic growth of host country  (Accept any other correct relevant response.) (1) 4.3.3 Describe the term Multinational Enterprises. Multinational Enterprises are international companies that operate all over the world and are not bound by their countries’ borders  (Accept any other correct relevant response.) (2) 4.3.4 Briefly explain free trade zones • Free trade zone is a geographic area located around a major or international airport where goods are imported and exported without the intervention of the customs authorities  (Accept any other correct relevant response.) (2) 4.3.5 Analyse the social impact of globalisation on developing countries. • Globalisation creates greater opportunities for businesses in less industrialised countries to tap into more and larger markets around the world  • Businesses located in developing countries have more access to capital flows, technology, human capital, cheaper imports and larger export markets  (Accept any other correct relevant response.) (4) Copyright reserved Please turn over ### Page 15 Downloaded from hlayiso.com (EC/NOVEMBER 2023) ECONOMICS P2 15 4.4 Briefly discuss the level of space capacity in the industry and level of employment as degrees of elasticity of supply. Level of space capacity in the industry • Where an industry is operating below full capacity and so there are unemployed resources, supply is elastic  • The industry will be able to expand production fairly easily by using more factors of production and bringing into use the idle fixed assets e.g. machines  Level of employment • In a situation of full employment, the supply of most goods and services will be inelastic  • Supply may be increased by improved productivity but in the short run no significant increases in output will be possible  • Supply in the domestic market may still be elastic if it is possible to obtain suppliers by importing from other countries, but this may lead to balance of payments difficulties  (Accept any other correct relevant response.) (8) 4.5 Examine the positive impact of globalisation on the South African economy. • South Africa has been able to access the world markets and international forums due to existence of globalisation  • The well-developed financial institutions put South Africa in a favourable position when global crisis affects other developing countries  • Certain companies have benefited greatly from increased trade, which has caused the gap between the rich and the poor to widen • The focus on knowledge has increased and thereby the demand for skilled and professional labour has also increased  • This resulted in increased salaries for well-educated and skilled workers (Accept any other correct relevant response.) (8) [40] TOTAL SECTION B: 80 Copyright reserved Please turn over ### Page 16 Downloaded from hlayiso.com 16 ECONOMICS P2 (EC/NOVEMBER 2023) SECTION C Answer ONE of the two questions from this section in the ANSWER BOOK. Your answer will be assessed as follows. QUESTION 5 • Discuss in detail demand side relationships with the aid of graphs. (26) • Examine the importance of relative price. (10) INTRODUCTION Demand relationships exists when two or more goods are used together (compliments) or replacement for each other and are interchangeable (substitutes).  (2) (Accept any other correct relevant response). MAIN PART SUBSTITUTES • A substitute is a product which can be seen as an alternative to satisfy the same need  • Goods are substitutes when an increase in the price of one product leads to an increase in the quantity demanded of the other product  • The demand for the product is influenced by the change in the price of the goods or services  • If the price of one product increases consumers tend to buy fewer of the specific product as they will buy a cheaper substitute  • The demand for products with close substitutes is very sensitive to changes in the price of the product  SUBSTITUTES Fig. A Fig. B Price of S1 Price D1 S butter D S margarine D   P1 P1   P P S1 D1 S D S D Q1  Q Q  Q1 Quantity of butter Quantity of margarine Copyright reserved Please turn over ### Page 17 Downloaded from hlayiso.com (EC/NOVEMBER 2023) ECONOMICS P2 17 • The supply of butter decreases from SS to S1S1 and the price increases from P to P1 with a fall in quantity from Q to Q1  • This will result in less butter demanded and more demand for margarine  • The demand for margarine increases from DD to D1D1, price increases from P to P1 and quantity demanded increases from Q to Q1 • If the price of butter increases, the quantity demanded for margarine increases because consumers would always want to buy a cheaper product due to their budget constraint  • Therefore, a positive relationship exists between the price of a good and the quantity demanded of the substitute  COMPLIMENTS • A complimentary good is a good whose use is related to the use of an associated good  • The two goods are complimentary if using more of good A requires the use of more of good B e.g., printers and ink cartridges  • With complementary goods, a change in the price of one will cause a change In the demand for the another  • A change in the production cost of printers due to technological progress will make printers available at lower prices  COMPLEMENTARY GOODS Fig. A Fig. B Price D Price D D1 Printers S ink S   S1 P1  P  P P1 S D1 S1 D S1 D Q Q1 Q Q1  Quantity of printers  Quantity of ink Mark allocation Indication of a change in demand (Fig. B) and change in supply (Fig. A) = 1 mark each (total = 2 marks) Indication of a change in price in each graph = 1 mark each (total = 2 marks) Max. = 4 marks Copyright reserved Please turn over ### Page 18 Downloaded from hlayiso.com 18 ECONOMICS P2 (EC/NOVEMBER 2023) • Supply of printers increased from SS to S1S1 and the price falls from P to P1 while quantity demanded increased from Q to Q1  • The increase in quantity demanded of printers will increase the demand for complimentary products e.g., ink  • Demand for ink increases from DD to D1D1 and price increases from P to P1 while quantity demanded increases from Q to Q1  • There is a negative relationship between the price of a good and the quantity demanded of the compliment  (Accept any other correct relevant response) ADDITIONAL PART • A relative price is a price of a commodity in terms of another  • Relative price is important because it can affect resource allocation in a market economy, if the relative price of a good goes up, more resources will typically be allocated to it  • Understanding how these changes can affect the economy is crucial for making crucial social economic decisions  • Understanding the behaviour of relative prices can help us understand how inflation can cause problems for a market economy  • They are important for businesses because they address the question of what to produce and how factor inputs are used in the production of the final product products i.e., how to produce  • Relative prices act as signals about surpluses and shortages that may exist in individual markets and will guide in the allocation of resources to their best use  • They are used by consumers when looking for the best deal and producers when trying to produce goods as cheap as possible while charging the highest price they can  • They tell how much cheaper or more expensive the good is compared to another good  (Accept any other correct relevant response) CONCLUSION A producer’s ability to adapt to piece changes is determined by the cost, availability and mobility of the factors of production  (Accept any other correct relevant conclusion) Copyright reserved Please turn over ### Page 19 Downloaded from hlayiso.com (EC/NOVEMBER 2023) ECONOMICS P2 19 QUESTION 6: CONTEMPORARY ECONOMIC ISSUES • Examine in detail the problems threatening the environment. (26) • Analyse the importance of protecting the environment. (10) INTRODUCTION Environment is the physical surroundings and physical conditions in which living and non-living organisms operate  (Accept any other correct relevant response.) (2) BODY Natural environment degradation  • Natural environmental degradation is the process through which the environment is compromised in some way, reducing biological diversity and the general health of the environment  • Natural environment degradation includes situations that arise from local influences such as extremes of weather, local infectious agents and physical disasters  • There is destruction and loss of nature species and natural processes such that only certain components of the original biodiversity and ecological functions persist  • The main impact of these changes is to simplify the earth and simplification itself leads to the danger of collapse  • Humans alter the natural environment in three major ways: o Transforming the land and the sea through land clearing, forestry, grazing, mining, trawling etc.  o Adding or removing species and genetically distinct population via habitat alteration or loss, hunting, fishing and introduction or invasion of species  o Altering the major biogeochemical cycles of carbon, nitrogen, water and synthetic chemicals  Human induced environmental degradation  • Most degradation of natural resources result from cumulative activities of farmers, households and industries, all trying to improve their socio-economic well-being  • These activities can be counter, productive because people may not completely understand the natural resource base  • Badly enforced property rights may result in environmental losses, as in the case of community grazing lands, tree crops, water resources  • Humans are constantly engaged in activities such as agriculture, industrial development, mining activities, rural settlement and urban development  which often led to deforestation, land and water degradation as well as air pollution  Copyright reserved Please turn over ### Page 20 Downloaded from hlayiso.com 20 ECONOMICS P2 (EC/NOVEMBER 2023) Poverty and environmental degradation  • Poverty is seen as a great threat to the environment as poor health conditions limit people’s capacity to produce and earn  • When people have to survive from day to day, it makes them less sensitive to maintaining the natural resources  • Poor households in rural areas often depend on woods as a source of energy and this leads to deforestation  • In order to survive, people cultivate erosion-prone hills and develop natural vegetation and trees to make space for houses and crops, thereby, exploiting the soil without replacing the nutrients  • People are often ill-equipped to deal with the effects on the environment in a manner that limits damage  Agricultural development and deforestation  • Expansion of agriculture and plantation forestry as well as other commercial activities threaten natural resources  • Agricultural development needs large traits of land that must be developed to meet the demand for food for an ever-increasing population  • This often leads to deforestation, soil erosion, land degradation, desertification and various forms of water and air pollution  • Farmland is therefore responsible for 80% global deforestation, corporations and local farmers take over forests and clear the trees for cattle ranching and high- demand crops such as soybeans and palm oils, and land is cleared for small family farms  • Agriculture is one of the biggest drivers of deforestation as crops are grown for both human and animal consumption as well as clearing forests for animal grazing  Land degradation  • Land degradation is a mismatch between land quality, usage and land productivity  • It is caused by multiple-forces including extreme weather conditions, particularly drought  • It is also caused by human activities that pollute or degrade the quality of soil and land utility  • If land is not used efficiently and effectively, it becomes eroded through deforestation, soil erosion, soil infertility and flooding  • Due to the above, the ability of land to provide crops and feed animals decreases annually  Copyright reserved Please turn over ### Page 21 Downloaded from hlayiso.com (EC/NOVEMBER 2023) ECONOMICS P2 21 Industrial development, mining and environmental degradation  • Industrial processes contribute to water, land and air pollution  • In South Africa, the major contributor to air pollution is the country’s oil refineries which emit high levels of sulphur dioxide and several other  chemicals known to cause health problems  • Greenhouse gas emissions as a result of vehicle emission, power plants, factories and giant livestock farms have a devastating effect on climate change  • A slight increase in world temperatures which is a direct result of greenhouse gas emissions, can cause extreme weather changes that can lead to food and water shortages and destructive floods  • Pollution from mining activities is a direct cause of ground water pollution in South Africa  • Mining exploitation has a negative impact on nature e.g., removal of vegetation for survey lines, vegetation damage and soil erosion from vehicle tracks, abandoned equipment and supplies  Human settlement, urbanisation and environmental degradation  • Rural-urban migration helps reduce pressure on the rural environment but puts pressure on the urban environment, such as demand for land  • Unplanned informal settlements are one of the consequences of large scale rural-urban migration  • Run-offs from storm water is a common problem in unplanned settlements due to the lack of proper signage and draining has led to a less-educated and older workforce reliant on agriculture  (Accept any other correct relevant response.) (A maximum of 2 marks for mere listing and examples.) ADDITIONAL PART • Protecting the environment is the foundation for sustaining the planet, community and economy because it supports and houses the  ecosystem, allowing them to grow and thrive.  • Failing to protect the environment, will put the lives of humans, animals, plants and more at risk  • Environmental conservation enable nature to get on with the job of keeping people and the planet healthy  • Conserving the environment is extremely important because a lot of environmental degradation is irreversible or will take hundreds of years to fix and can also be very dangerous to humans and animals.  • Good quality natural environment provides basic needs in terms of clean air and water, fertile land for food production.  • We have to protect and conserve natural resources as they are essential for providing a greener and cleaner environment to living creatures.  (Accept any other correct relevant response.) (10) CONCLUSION It is important to stop the misuse of natural resources but use them in a very efficient way because such rapid use cannot be tolerated by the earth anymore. Achievement of this goal is possible only through sustainable development.  (2) (Accept any other correct relevant response.) 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