# Economics Grade 12 Paper 2 FS Prelim 2022 Memo

> Grade 12 Economics Paper 2 memorandum from the FS Prelim 2022, 21 pages. Read online or get the free PDF download, question paper linked when available.

- Page: https://www.hlayiso.com/library/economics-2022-fs-prelim-p2-memo/02781efd-6bb1-4c22-94db-bc57d9ff243f
- Updated: 2026-09-27
- Subject: Economics
- Grade: Grade 12
- Document type: Memorandum
- Year: 2022
- Exam period: FS Prelim
- Paper: 2
- Curriculum: CAPS
- Pages: 21

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Economics · Grade 12 · FS Prelim · 2022. Memorandum, 21 pages. Read online or download the PDF.

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                                        education
                                            p rtm nt
                                          du    ti n
                                        FREE STATE PROVIN E

                PREPARATORY EXAMINATION

                                  GRADE 12

                           ECONOMICS P2

                           SEPTEMBER 2022

                                MARKS: 150

                        MARKING GUIDELINE

                     This marking guideline consists of 19 pages.

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Grade 12 Prep. Exam             Marking Guidelines

 SECTION A (COMPULSORY)

 QUESTION 1

 1.1     MULTIPLE-CHOICE QUESTIONS

         1.1.1           A    Industry /market
         1.1.2           D    sunk 
         1.1.3           C    ceteris paribus                                         
         1.1.4           D    non-rivalry 
         1.1.5           B    labour 
         1.1.6           A    deflation 
         1.1.7           C    progressive 
         1.1.8           B    deforestation 
                                                                                      (8 x 2) (16)

 1.2     MATCHING ITEMS

        1.2.1        E are classified and differentiated based on degree of
                       competition

        1.2.2        G gives the holder the exclusive opportunity to be the sole
                       manufacturer of a product 

        1.2.3        F       an index used to calculate price changes of all final
                             goods and services produced 

        1.2.4        D       person travelling through other countries to get to another
                             destination 

        1.2.5        I       the period of production where only the variable
                             factors of production can change 

        1.2.6        B when a change in price will cause a small percentage
                       change in quantity needed 

        1.2.7        C an extra payment or levy in addition to price 

        1.2.8        H tourists from other countries who stay for more than one
                       day                                                (8 x (8)
                       1)

 1.3     IDENTIFY THE CONCEPT

         1.3.1           Explicit cost 
         1.3.2           Average revenue 
         1.3.3           Headline 
         1.3.4           Demerit 
         1.3.5           Sanctions 
         1.3.6           Indigenous knowledge system/ Indigenous knowledge 
                                                                            (6 x 1) (6)
                                                                    TOTAL SECTION A:            30

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Grade 12 Prep. Exam             Marking Guidelines

 SECTION B

 Answer TWO of the three questions from this section in the ANSWER BOOK.

 QUESTION 2

 2.1   2.1.1    Name any TWO indirect taxes

                    VAT
                    Excise duty/Sin tax 
                    Customs duty 
                      (Accept any other correct relevant response)     (Any 2 x (2)
                     1)

       2.1.2    Why do governments conduct a cost benefit analysis when
                undertaking large projects?

                To make informed decisions. (MTG page 129)                           (2)
                (Accept any other correct relevant response)                   (1 x
                2)

 2.2   Data response

       2.2.1    Identify the market price from the graph above.

                15                                                                    (1)
       2.2.2    What cost should be covered by the producer to be able to
                continue production in the short run?

                Average variable costs/AVC                                            (1)

       2.2.3    Briefly describe the term marginal cost.

                Marginal cost is the amount by which total cost increases when
                one extra product is produced.                               (2)

       2.2.4    How is the price determined in the perfect market?

                In a perfect market, the price is determined by the interaction of
                demand and supply. 
                (Accept any other correct relevant response)          (Any 1 x 2) (2)

       2.2.5    Calculate the loss incurred by the perfect competitor above.
                Show ALL calculations.

                 TR - TC                                 AR - AC x Q
                 (15 x 15) - (20 x 15)                 15 - 20  x 15 
                  225 – 300                                 -5 x 15 
                    -75                                       - 75                   (4)

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Grade 12 Prep. Exam             Marking Guidelines

 2.3    Data response

         2.3.1       Which pandemic is referred to in the extract above?

                     COVID-19/Coronavirus                                                (1)

         2.3.2       Name any ONE type of monopoly.

                     Artificial/legal/local/technological                                (1)
                     Natural

         2.3.3       Briefly describe the term collusion.

                     An arrangement between businesses with the aim of limiting
                     competition between them by fixing prices.                         (2)

         2.3.4       How is the nature of the product in monopolistic
                     competition different to that of a monopoly?

                     Monopolistic competitors produce differentiated products 
                     while a monopoly produces unique products.                          (2)

         2.3.5       Discuss the negative consequences that the closure of
                     restaurants had on their employees?

                        The employees lost their jobs and they could not earn any
                         income as there were no customers 
                        The employees' family's standard of living will drop, and it
                         resulted in tensions inside their households 
                        Some employees had to relocate or migrate as they could
                         not afford to pay their rent 
                         (Accept any other correct relevant response)         (2 x 2)     (4)

 2.4     Elaborate how a perfect competitor will find it difficult to earn an
         economic profit in the long run

            In the long run, a perfect competitor can only make normal profit
             due to easy access to the market 
            The economic profit will serve as a signal for others to enter the
             market 
            When new firms enter the market, supply will shift to the
             right/increase and more quantity of goods will be produced 
            The new equilibrium point will be reached and the price will
             decrease and the individual competitor will be forced to reduce the
             price as they are the price takers 
            The perfect competitor will now earn normal profit in the long
             run 
             (Accept any other correct relevant response)
             (Allocate a maximum of 4 marks for mere listing of facts/examples)
                                                                          (4 x 2)         (8)

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Grade 12 Prep. Exam             Marking Guidelines

 2.5     Analyse the impact of the kinked demand curve on an oligopoly
         market and to the individual firm.

            An oligopoly competitor will lose many sales for any small increase
             in price. 
            If a firm decreases its price, while other firms do not follow, it will
             face a more inelastic demand curve which will allow it to increase
             sales. 
            The large price decrease will cause a small increase in the
             quantity demanded in this inelastic segment. 
            The profit obtained by any price decrease is actually less than at
             the original market price. 
            Any price increases in the segment above the market price will
             have a large decrease in the quantity demanded. 
            The kinked demand curve makes all competitors in the market to
             communicate and charge at the same market price . 
             (Accept any other correct relevant response)
             (Allocate a maximum of 2 marks for the mere listing of
             facts/examples)                                                             (8)
                                                                                        [40]

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Grade 12 Prep. Exam             Marking Guidelines

 QUESTION 3

 3.1     3.1.1       Name any TWO environmental problems.

                        Biodiversity loss 
                        Chemical waste 
                        Hazardous waste 
                        Climate change 
                         (Accept any other relevant correct response)      (Any 2 x     (2)
                         1)

         3.1.2       How does inflation affect the debtors?

                     Debtors benefit because they receive money with a high
                     purchasing power and repay their debt with money with low
                     purchasing power.
                     (Accept any other relevant correct response)         (1 x          (2)
                     2)

 3.2     3.2.1       What was the lowest price per litre of fuel since 2008?

                     R6,01                                                             (1)

         3.2.2   What is the South African inflation target?

                 3 – 6 %                                                               (1)

         3.2.3   Briefly describe the term administered price inflation.

         3.2.4
                                                                    -
                 Prices set or controlled by the government  (Afr memo)
                 (Accept any other correct relevant response)

                 Explain how the South African Reserve Bank can use
                                                                                        (2)

                 monetary policy to curb cost-push inflation?

                        SARB can reduce the supply of money in the economy by
                         increasing the repo rate, thereby encouraging savings 
                        SARB can use moral suasion where they can convince
                         banks to restrict/reduce the granting of credit to producers
                         as that will reduce their spending power 
                         (Accept any other relevant correct response)            (1 x   (2)
                         2)

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Grade 12 Prep. Exam             Marking Guidelines

         3.2.5   Discuss the impact of an increase in fuel prices on
                 households.

                    Increases in fuel prices lead to businesses increasing the
                     prices of goods and it becomes difficult for households to
                     afford them 
                    Households' level of poverty is increased by increases in
                     fuel prices since they will be unable to access even their
                     basic needs 
                    Increases in fuel prices will increase the transport costs for
                     households as they use transport to go to their different
                     workplaces 
                     (Accept any other correct relevant response)             (2 x    (4)
                     2)

 3.3     3.3.1   Name the World Heritage Site depicted in the illustration
                 above.
                                                                                      (1)
                 Sterkfontein caves
                 (Accept any other correct relevant response)

         3.3.2   Give any ONE other World Heritage Site found in South
                 Africa

                 Mapungubwe/Vredefort                        Dome/Robben
                 Island/Richtersveld                                                 (1)
                 And Botanical Landscape 
                 (Accept any other correct relevant response)

         3.3.3   Briefly describe the term cultural tourism.

                 The activities of tourists who visit museums, art galleries and
                 architectural attractions and who attend festivals, sports events,
                 cultural events. 
                 (Accept any other correct relevant response)                         (2)

         3.3.4   Why is South Africa such a popular holiday destination?

                    SA has a range of tourist attractions, diverse cultures,
                     numerous special interest activities and spectacular natural
                     wildlife. 
                    The peaceful political transformation in the country and the
                     lifting of sanctions have led to a tourist boom in
                     SA. 
                    South Africa has hosted major international and African
                     events such as the rugby, soccer and cricket world cups and
                     the Africa Cup of Nations. 
                     (Accept any other correct relevant response)        (Any 1 x     (2)
                     2)

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Grade 12 Prep. Exam             Marking Guidelines

         3.3.5   How can the tourism industry benefit the poor rural
                 community of South Africa?

                    Members of the community are directly involved in the
                     tourist industry as travel agents and tour operators and earn
                     an income from tourism.
                    Entrepreneurs from households that operate as curio
                     producers, interpreters also earn income from
                     tourism. 
                    Households benefit from improved infrastructure created for
                     tourists but which local people can also use. 
                    Households also benefit from acquiring skills that the
                     tourism industry requires. 
                     (Accept any other correct relevant response)        (Any 2 x      (4)
                     2)

 3.4     Differentiate between demand-pull Inflation and cost-push
         inflation.

         DEMAND-PULL INFLATION
          It occurs when aggregate demand in an economy outpaces
            aggregate supply.
          It is when too much money is spent on too few goods. 
          It happens when it is easy to obtain loans or when people are
            employed and earn incomes, and these people overspend. 
                                                                   (Max
         4)

         COST-PUSH INFLATION
          It occurs when there is a general rise in price levels due to increases
           in the costs of factors of production such as higher wages. 
          An example can be spikes in the oil price due to war. 
          Businesses normally also react to the rise in the price of their costs
           of production by increasing prices to maintain their profit
           margins. 
           (Accept any other correct relevant response)
           (Allocate a maximum of 4 marks for mere listing of facts/examples)
                                                                             (Max      (8)
           4)
                                                                             (2 x 4)

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Grade 12 Prep. Exam             Marking Guidelines

 3.5     How effective has the Department               of   Tourism's     policy
         suggestions been in South Africa?

            The policy has been successful since it assists in marketing
             tourism nationally and internationally. 
            It also created different representative bodies that make it easy
             for tourists to access knowledge about all tourist destinations. 
            It created a platform to improve supporting services that led to
             improvement in transport, accommodation, and other
             amenities. 
            The Policy also created guidelines for levying taxes that are
             efficient, equitable and simple. 
            The policy also requires improvement in economic infrastructure,
             social infrastructure, and basic services. 
            The South African government has spent large marketing and
             promotional budgets aimed at promoting SA to international
             customers; although the impact thereof was difficult to determine,
             due to lockdown 
            This was done by DEAT and other private sector organizations
             such as Business Trust and Tourism Business Council in South
             Africa. 
            Tourism was identified as one of the 6 core pillars of growth in the
             New Growth Path Framework, contributing to economic upliftment,
             community development and poverty relief. 
            The full potential of SA Tourism sector is hindered by crime,
             funding, lack of skills and immigration. 
            Small and Medium Tourism Enterprises (SMTES) are hindered by
             lack of skills and relevant qualifications in business management.
             Education and acquisition of requisite qualifications are required to
             produce stable managers. 
            South Africa's varied landscapes, diverse wildlife and rich cultural
             resources led to its global competitiveness as a tourist destination.
             It shows in total tourist arrivals between 1995 and 2019 from 4.5 to
             10m tourists. 
            Over the last 5 years tourism created more than 64 000 jobs – more
             than mining and manufacturing combined – 4.5 % of all
             employment is directly linked to tourism. 
            National Tourism Sector Strategy aims to increase international
             tourist arrivals by 4m and domestic trips by 1m from
             2019 – 2021. 
             Accept any other correct relevant response)
             (Allocate a maximum of 2 marks for mere listing of facts/examples)       (8)
                                                                                     [40]

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 QUESTION 4

 4.1     4.1.1       Name any TWO inefficiencies in the market.

                        Productive/Technical
                        Allocative
                         (Accept any correct relevant response)           (Any 2 x (2)
                         1)

         4.1.2       Why do markets fail to protect the environment?

                     The market sees the environment as a common resource. 
                     Lack of knowledge: Businesses cause damage without
                     realising it 
                     Carelessness: People continue with harmful practices and
                     leave it to future generations to worry about the consequences
                                                                                   (2)
                     (Accept any other correct relevant response)           (Any 1 x
                     2)

 4.2     4.2.1       Identify any ONE variable cost that the companies,
                     illustrated above, pay.

                     Electricity
                     Water                                                            (1)
                     (Accept any correct relevant response)

         4.2.2       Give ONE example of a non-price strategy used to increase
                     the market share

                     Advertising /Marketing 
                     (Accept any correct relevant response)                            (1)

         4.2.3       Briefly describe the term monopolistic competition.

                     Monopolistic competition is a market structure that displays the
                     characteristics of both perfect competition and monopoly.  It
                     is a market structure that has many buyers and sellers who are
                     price setters. 
                     (Accept any correct relevant response)                           (2)

         4.2.4       Which characteristics suggest that this market structure
                     has a hybrid structure?

                     There are many buyers and sellers like the perfect competition
                      and they have a downward sloping demand curve like the
                     monopoly. 
                     NB: [The response must include both characteristics of
                     perfect competition and monopoly.]
                     (Accept any correct relevant response)               (Any 2 x (2)
                     1)

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         4.2.5       Discuss the impact of loadshedding on businesses in the
                     South African economy.

                        It leads to a loss of profit for businesses, and they cannot
                         pay their costs 
                      It also leads to a waste of resources especially if they do
                         not have the schedules of loadshedding 
                      It leads companies to retrench or lay off workers as they
                         can not afford to pay them 
                      It damages their equipment and forces them to find
                         alternative equipment that increases their costs              (4)
                     (Accept any other correct relevant response)

 4.3     4.3.1       Identify the province that benefits most from domestic
                     trips annually.

                     Kwazulu Natal/KZN                                                  (1)

         4.3.2       Give any ONE reason for the growth in tourism

                     Increased disposable income /Improved transport and
                     communication facilities 
                     (Accept any other correct relevant response)                        (1)

         4.3.3       Briefly describe the term domestic tourism.

                        It is when domestic tourists travel from place one to
                         another within the borders of the country. 
                        It is when South African citizens travel within the borders
                         of South Africa.                                              (2)

         4.3.4       Which opportunities are offered by tourism to the
                     informal sector and previously disadvantaged groups?

                        Informal sector businesses and the previously
                         disadvantaged groups earn recognition from visitors and
                         the government subsidises them to upgrade their living
                         standards 
                         (Accept any other correct relevant response)                    (2)

         4.3.5       Why does tourism have a negative impact on the
                     environment?

                        Tourists do not care whether the capacity of the area is
                         exceeded and features of the tourist sites are vandalised
                         or destroyed 
                        Tourists are most of the time not aware of environmentally
                         sensitive areas – cultural and natural assets are
                         destroyed 

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                        Safari hunting benefits the individuals directly involved by
                         ignoring environmental stress that might lead to a loss of
                         wildlife species 
                        More tourists increase the environmental cost that
                         involves the generation of waste and pollution.               (4)
                         (Accept any other correct relevant response)        (Any 2 x
                         2)

 4.4     Differentiate between the consumer price index (CPI) and the
         producer price index (PPI).

             The CPI measures the cost of living  while the PPI measures the
              cost of production 
             The CPI basket consists of consumer goods and services  while
              the PPI basket consists of goods only 
             In the CPI figures capital and intermediate goods are excluded 
              while in the PPI, capital and intermediate goods are included 
             The CPI does not show prices of imported goods explicitly while
              in the PPI prices are shown explicitly 
             CPI includes interest rates  while PPI excludes interest
              rates 
              (Accept any other correct relevant response)
              (Allocate a maximum of 4 marks for mere listing of facts/examples)
                                                                           (4 x          (8)
              2)

 4.5     Evaluate the impact of competition policy on SA economy.

         The competition policy has successfully:
          Assisted in investigating and prosecuting unfair competition
            through the competition commission 
          Made recommendations about penalties for businesses found
            guilty of abuse through the competition tribunal 
          Implemented the Competition Tribunal by accepting or rejecting
            the investigation and recommendation of the Competition
            Commission 
          Curbed the economic power of big conglomerates to arrive at a
            more equitable distribution of income and wealth 
          Regulated mergers and takeovers to regulate market power of
            mergers such as Massmart and Wallmart where conditions were
            imposed to prevent possible unemployment that may result 

         The competition policy did not succeed in the South African
         economy because:
          There are still frequent occurrences of collusive behaviour despite
            fines being imposed 
          Too many dominant firms prevented disadvantaged black
            industrialists from entering the market. 
          The original competition policy did not take into account the impact
            of mergers and acquisitions of SMMEs in terms of fair pricing 
            (Accept any other correct relevant response)

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             (Allocate a maximum of 2 marks for mere listing of
             facts/examples)                                                      (8)
             (Any 4 x 2)
                                                                                 [40]

                                                            TOTAL SECTION B: 80
 SECTION C

 Answer any ONE of the two questions in this section in the ANSWER BOOK.

 QUESTION 5

 Discuss state intervention as a consequence of market failure             (26
 marks)

 INTRODUCTION

 Government needs to ensure that resources are allocated in such a way that society
 as a whole can benefit.  While government is expected to intervene in the macro-
 economy, the modern trend is for government to allow free markets to prevail. The
 purpose of government intervention is to ensure that the right quantity of resources
 is allocated to the production of output so that society as a whole maximises its
 benefits. 
 (Accept any other correct relevant response)                                  (Max.
 2)

 MAIN PART

 1. Minimum wages

         When the government enforces a minimum wage, it means workers have to
          be paid a certain wage amount and not anything less than this.
         Graph below shows that if the wage rate is set at R15, the corresponding
          demand and supply of labour will be 200. 
         If a minimum wage of R20 is set, the demand for labour will decrease from
          200 to 100.  Some people may become unemployed due to the
          introduction of a minimum wage. 
         However, the quantity of labour supplied will increase from 200 to 300. 
         More people will offer their labour because of the higher wage. 

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                                               Minimum Wages
                                                                                        Mark allocation
                                                                                        Label of curves=1
                     D
                                                                    s
                                                                                        Label of axis=1
                                                                                        Minimum wage=2
          
                                                                         

                         s                                     D

                                 1 00       2 00       3 00
                                            Quant.it.y

 2.   Maximum price/price ceilings 

         The government sets a maximum price ceiling below the market price to
          make goods more affordable.
         Maximum prices allow the poor greater access to certain goods and services.

                                              Maximum Prices
                                                                                      Mark allocation
                                                                                      Label of curves=1

                         I
                                                                                      Label of axis=1
                                                                              s
                                   D                                                 Maximum price=2

                         

                                                                              M :aximum p rice
                                        s
                                                                                                      
                                                                          D

                                             10          20
                                                         Quant.ity

         A maximum price is set on goods such as basic foods, housing and
          transport. 
         In South Africa, the price of petrol, diesel fuel and paraffin are controlled at
          their maximum prices. 
         The government intervenes and passes a law that milk cannot be sold for
          more than R10. 
         There is a shortage of milk equal to the difference between 10 and 30. 
         A shortage creates a problem of how to allocate milk to consumers. 
         Black markets often develop where people can obtain milk. 

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Grade 12 Prep. Exam             Marking Guidelines

 3.   Minimum prices/price floors 

         The government sets a minimum price at some point above the market
          price. 
         This is done to enable producers to make a comfortable profit and thus
          encourages them to supply important essential goods. 
         Consider the market for wheat. If the government sets a minimum price at
          R25, farmers will earn greater profits and supply more wheat. Quantity
          supplied will therefore increase to 15. 

                                                Minimum price
                                                                                 Mark allocation
                                                                                 Label of curves=1
                         D                                     s                Label of axis=1
                                           Surplus
                                                                                 Minimum price=2
                                                                M inimum price
                                    '
                                    :'
                                     ''                             
               20                     '
                     --------------7--------
                                      ,
                                      ''
                                      '
                                      ''
                                      '

                             s                              D

                                     10        15      20
                                             Qua n t ity

 4.   Providing Producer Subsidies 

         The government provides subsidies to producers in order to encourage
          them to increase the production of goods or increases the supply of goods.
          
         Subsidies lower the cost of producing goods and thus the market price of
          these goods is lowered. 

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                                      Producer subsidies
                                                                  Mark allocation
                                                    s             Label of curves=1
                         D                                       Label of axis=1
                                                                  Shift of S1-subsidy=2
             
                 15
                                                        
         <l>
                 12
         0

         ~

                                                             D
                         s
                             s1

                                       8    2
                                       Quantity

     (Accept any other correct relevant response) (Note well: consider other
     headings listed on the Examination guidelines)
     (Allocate a maximum of 8 marks for mere listing of facts/examples) (26
     marks)

-
 ADDITIONAL PART

 Evaluate government redistribution of income in SA.                          (10
 marks)

    Government has redistributed through taxes (taxing the wealthy according to a
     progressive tax system), using it to provide the poor with different social grants
     to support them.  e.g. child support grant. 
    Government has also been good in providing some of the goods free of charge
     to the community, e.g. education, which benefitted children in all communities
     
    Government has also been subsidising essential goods  e.g. subsidising
     bread to assist the poor during difficult times of lock-down. 
    Government has been subsidising businesses who were hard hit by COVID-19
     regulations and this has negatively affected other firms who were not subsidised
     as they cannot compete with them. 
    Government has inappropriately used fiscal and monetary policy to achieve
     macroeconomic stability in the economy and this affected households negatively
     as their properties were repossessed due to high-interest rates. 
    Government has also prevented misleading advertisements of liquor and
     tobacco on TV and radio and this has contributed positively to the reduction in
     the use of these demerit goods in society. 
     (Accept any other relevant explanation)
     (Allocate a maximum of 2 marks for mere listing of facts/examples)          (Max.
      10)

 CONCLUSION

 The intervention of government ensures that inefficiencies are eliminated and that
 the market is operating effectively. 

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Grade 12 Prep. Exam             Marking Guidelines

 (Any other correct relevant higher orderconclusion)               (Max.
 2)
                                                                      [40]

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Grade 12 Prep. Exam             Marking Guidelines

 QUESTION 6

 Examine the measures by government to ensure sustainable development of
 the environment                                                (26
 marks)

 INTRODUCTION

 Environmental sustainability relates to the ability of the environment to survive its use
 for economic activity. 
 (Accept any other correct relevant introduction)                                  (Max.
 2)

 MAIN PART

 PUBLIC SECTOR INTERVENTION

 Public sector intervention aims to achieve social efficiency. This occurs through:

 1. Granting Property Rights 

         The conservationist effect: People care for things that belong to them. 
         To prevent fauna and flora species from becoming extinct, people are
          granted property rights if they agree to preserve the flora and fauna. 
         Property rights can be expanded to common goods such as clean air. 

 2. Environmental Taxes 

         Environmental taxes are taxes imposed on the output of goods that generate
          external environmental costs.  These are called green taxes. 
         Carbon dioxide emissions from wineries and vehicle tyres are taxed.  The
          tax rate is equal to the marginal external cost. 

 3. Environmental Subsidies 

         Subsidies are granted to businesses to reduce environmental damage, e.g.
          the government subsidises new technology that saves energy, such as
          energy-saving light bulbs or solar geysers. 

 4. Marketable Permits 

         The government gives each business a licence to pollute to a certain
          degree. 
         Businesses sell their licences to other businesses. 
         In South Africa, marketable permits are granted by the Department of
          Minerals and Energy. 

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Grade 12 Prep. Exam             Marking Guidelines

 5.   Charging for the use of the environment

        Price the environment: The government levies fees for waste produced and
         dumped in the environment. 
      In South Africa, local authorities levy charges on rubbish collection and
         sewage disposal. 
      The best results are achieved when charges are proportional (related to)
         waste produced. 
         (Accept any other relevant explanation)
         (Allocate a maximum of 8 marks for mere listing of facts/examples)
       (Note well: consider other headings listed on the Examination
 guidelines)
 (26 marks)

 ADDITIONAL PART

 How successful was the government in applying the measures to ensure
 sustainable development of the environment?                 (10
 marks)

 The different measures that were used were successful in that:

 1. Rio De Janeiro Summit (UNCED) 

          The South African government intervened by ratifying and implementing the
           Rio Declaration on Environment and Development that sought to create
           global awareness of the dangers of unsustainable development. 
          The summit was a watershed moment for the environment.  It brought
           together a remarkable 172 countries, more than 100 of them which were
           represented by their leaders to start to address at the global level the
           unsustainable use of natural resources and man's impact on the
           environment 
          It had its own challenges as other countries never agreed to limit
           greenhouse gases. 

 2. Johannesburg Summit (WSSD) 

         The South African government as the host signed the Johannesburg
          Declaration and committed itself to address socio-economic issues such as
          HIV/AIDS, improved sanitation, poverty relief and a greater supply of food
          and water. 
         Its outcome included among others decisions on, the recognition of the rights
          and roles of communities in natural resources management. 
         It also included the promotion of greater corporate responsibility and
          accountability. 
         It also included the reaffirmation of the principle of access, the incorporation
          of ethics into the implementation of Agenda 21, the acceptance of the
          need to delink economic growth from environmental degradation  and

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Grade 12 Prep. Exam             Marking Guidelines

           the launching of key initiatives and partnerships on sustainable
           development. 

 3. Kyoto Protocol 

          As a signatory of the protocol, South Africa was successful in reducing the
           emission of greenhouse gases by approximately a percentage below the
           emissions expected under a 'No-Kyoto' scenario. 
          In some cases it was reported that it was not successful since the
           greenhouse output has increased since 1997 and not decreased. 

 4.   The local authority in South Africa levies charges for rubbish collection or sewage
      disposal on households, businesses and others. 

 5.   The production of environment-friendly substitutes such as unleaded petrol was
      introduced to substitute leaded petrol. 

 6.   Municipalities encourage the recycling of waste by issuing dust bins for glass,
      tins and cardboards/by compensating recyclers to collect waste on a daily basis
      and sell at collection points to generate income. 

 7.   Community wildlife reserves managed for sport hunting in Southern Africa have
      been transformed into areas managed for conservation.

 8.   The Minister of Environmental Affairs visits communities regularly to address
      problems with water supply and water purity.

      (Accept any other relevant answer)
      (Allocatea maximum of 2 marks for mere listing of facts/examples)            (Max.
      10)

 CONCLUSION

 South Africa has had stable prices since the implementation of inflation targeting in
 2000 and has been signing all the international agreements to show that they care
 about the environment. 
 (Accept any other correct relevant higher order conclusion)                   (Max.
        2)

          [40]

                                                               TOTAL SECTION C: 40
                                                                 GRAND TOTAL: 150

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