# Economics Grade 12 P2 Eastern Cape Mock 2015 Memo (English)

> Grade 12 Economics Paper 2 memorandum from the Eastern Cape Mock Exam 2015 (English), 19 pages. Read online or download the free PDF.

- Page: https://www.hlayiso.com/library/economics-p2-memo-gr-12-sept2015-eng/12c40d61-46bc-4736-aa5a-d256f340bfab
- Updated: 2026-09-27
- Subject: Economics
- Grade: Grade 12
- Document type: Memorandum
- Year: 2015
- Exam period: Eastern Cape Mock Exam
- Paper: 2
- Curriculum: CAPS
- Pages: 19

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Economics · Grade 12 · Eastern Cape Mock Exam · 2015. Memorandum, 19 pages. Read online or download the PDF.

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                          NATIONAL
                     SENIOR CERTIFICATE

                           GRADE 12

                      SEPTEMBER 2015

                        ECONOMICS P2
                        MEMORANDUM

MARKS:   150

                   This memorandum consists of 19 pages.

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2                                   ECONOMICS P2                               (EC/SEPTEMBER 2015)

 SECTION A(COMPULSORY)

 QUESTION 1

 1.1     MULTIPLE-CHOICE QUESTIONS

         1.1.1       C    MC = MR 

         1.1.2       C    South African Airways 

         1.1.3       B    Differentiated 

         1.1.4       C    local, exported and imported 

         1.1.5       B    Tourism Business Council of South Africa 

         1.1.6       A    clean air 

         1.1.7       B    preservation 

         1.1.8       C    Mr Derek Hanekom                                                 (16)

 1.2     MATCHING ITEMS

         1.2.1       F    Average cost of business is greater than the market price 

         1.2.2       C    Redress method used to enforce redistribution of income 

         1.2.3       H    Measures changes in prices of manufactured goods before
                          they are sold to the consumers 

         1.2.4       B    A seller is able to change the market price by changing the
                          quantity supplied 

         1.2.5       G    Consumers demand more than what producers can supply 

         1.2.6       D    People from abroad, visiting natural areas like Drakensburg
                          Mountains 

         1.2.7       A    Costs are exactly equal to revenue 

         1.2.8       E    Different prices charged for the same product for different
                          groups                                                             (8)

 1.3     1.3.1       Cost -benefit analysis 

         1.3.2       Greenhouse gases 

         1.3.3       Short run 

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(EC/SEPTEMBER 2015)                       ECONOMICS P2                              3

          1.3.4       Deflation 

          1.3.5       Indigenous knowledge system (IKS) 

          1.3.6       Supply curve                                               (6)

                                                            TOTAL SECTION A:      30

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4                                   ECONOMICS P2                               (EC/SEPTEMBER 2015)

 SECTION B

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

 QUESTION 2: MICROECONOMICS

 2.1    2.1.1    List TWO types of economic costs.

                 Implicit costs 
                 Explicit costs                                                    (2 x 1)      (2)

        2.1.2    What is the purpose of patents in monopolies?

                  Patents are used as barriers to entry in a market thereby creating
                   artificial monopolies. 
                  The patents give the holder exclusive rights to manufacture a
                   product using his/her unique invention.                    (1 x 2)          (2)

 2.2    DATA RESPONSE

        2.2.1    Identify the profit maximisation point (label) of the individual firm

                 E2                                                                             (1)

        2.2.2    At what point or label will the industry be in equilibrium?

                 E                                                                              (1)

        2.2.3    Explain the concept price taker.

                 Price taker is the individual firm that charges the going market
                 price.                                                                        (2)

        2.2.4    Identify whether the individual has made economic profit or loss
                 and write down the area for profit/loss.

                 Economic profit ; PP2FE2                                                      (2)

        2.2.5    Explain the slope of the demand curve of the individual firm.

                 It has a horizontal slope. 
                 The demand curve is perfectly elastic. 
                 It is exactly at the same level of the price. 
                 The horizontal demand curve represents the MR and AR.  (2 x 2)               (4)

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(EC/SEPTEMBER 2015)                           ECONOMICS P2                                           5

 2.3    DATA RESPONSE

        2.3.1    Define the term oligopoly.

                  An oligopoly is a market structure with a few buyers.                        (2)

        2.3.2    What message is depicted in the picture above?

                  Pepsi and Coke are fighting for a market share by reducing
                  prices. 
                  (Accept any relevant explanation.)                                             (2)

        2.3.3     What is meant by cut-throat price competition as used in the
                  extract?

                        Cut-throat competition is a situation where competitors use
                         predatory pricing (undercutting prices) to eliminate or undermine
                         rivals. 
                        Coca-Cola and Pepsi are fighting for a share in the market by
                         setting very low prices.                              (Any 1 x 2)     (2)

        2.3.4    Briefly explain ways in which Coca-Cola and Pepsi can gain
                 market share.

                 Non-price competition:
                  By advertising more to lure consumers
                  Branding to encourage loyalty to the product 
                  Product differentiation, ranges of products to cater for the
                     different markets                                        (2 x 2)        (4)

 2.4    Briefly examine the role played by the Competition Commission and the
        Competition Tribunal.

        Competition Commission
         It investigates restrictive business practices, abuse of dominant positions
          and mergers in order to achieve equity and efficiency in the South African
          economy. 
         It will make a recommendation about penalties for businesses that it finds
          guilty
         The Commission’s recommendations are submitted to the Competition
          Tribunal                                                     (Any 2 x 2)             (4)

        Competition Tribunal
        The competition Tribunal’s main function is to:
         Grant exemption 
         Authorise or prohibit large mergers 
         Adjudicate in relation to any conduct prohibited in terms of Chapter 2 or 3
          of the Act 
         Grant an order for costs in terms of the section 57 of the Act on matters
          presented to it by the commission.                              (Any 2 x 2)          (4)

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6                                  ECONOMICS P2                               (EC/SEPTEMBER 2015)

 2.5    With the aid of a table, explain the slope of the demand curve in a
        monopoly market.

          It is an industry demand curve. 
          Monopoles will have a pricing policy because it is the only supplier in the
           market.  Each quantity supplied is associated with a unique price, and
           more units can be sold by reducing the price/at higher prices less will be
           demanded and at lower prices more will be demanded. 
          The demand curve is downward sloping; it has a negative slope. 
                                                                                  (2 x 2)     (4)

                      PRICE                          QUANTITY DEMANDED
                       16                                     1
                       14                                     4
                       12                                     8
                       10                                    12

        Correct figures for price;  correct figures for quantity demanded.               (4)
                                                                                            [40]

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(EC/SEPTEMBER 2015)                         ECONOMICS P2                                             7

 QUESTION 3: CONTEMPORARY ECONOMIC ISSUES

 3.1    Answer the following questions.

        3.1.1    List any TWO reasons for the loss of biodiversity.

                      High rates of consumption 
                      Habitat loss 
                      Invasive species 
                      Pollution 
                      Climate change                                         (Any 2 x 1)     (2)

        3.1.2    How can green taxes promote a more sustainable environment?

                 Green taxes are taxes imposed on the output (or consumption) of a
                 good, wherever external environmental costs are generated. These
                 taxes are aiming at reducing pollution. 
                 Green taxes have an effect of increasing the price of goods therefore
                 the firms will change their behaviour and produce goods that are
                 more environmental friendly. 
                 (Accept any relevant explanation.)                             (1 x 2)        (2)

 3.2    DATA RESPONSE

        3.2.1    What is the range of South Africa’s inflation target?

                 South Africa’s inflation target is 3–6%.                                    (2)

        3.2.2    Explain the term inflation

                 Inflation is the continuous rise in the general price level over a period
                 of time.                                                                    (2)

        3.2.3    What does ‘pegging down inflation’ mean?

                 Application of certain measures to reduce /combat inflation.                (2)

        3.2.4    How can interest rates be used to peg down inflation?

                  Interest rates rise make it more expensive to borrow money. 
                  Expensive borrowing reduces consumer demand and in turn
                   discourages greater output. 
                  This slows down excessive business activity and controls the rise
                   in prices.                                               (2 x 2)          (4)

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8                                  ECONOMICS P2                                (EC/SEPTEMBER 2015)

 3.3    DATA RESPONSE

        3.3.1    Define environmental sustainability.

                 Environmental sustainability is maintaining the factors and practices
                 that allow the quality of the environment to endure on a long-term           (2)
                 basis. 
                 (Accept any relevant description.)

        3.3.3    Identify, with statements from the extract, any two kinds of
                 pollution that are caused by scrapped tyres.

                 Statement                                         Type of pollution
                 Abandoned tyres lying across South Africa         Land pollution 
                 /tyres left lying in the open /many of the
                 scrapped tyres end up in landfills 
                 Tyres are burnt for heat                         Air pollution 
                 (Accept any other relevant statement.)                           (4 x 1)     (4)

        3.3.3    In your opinion why is recycling so important?

                    It reduces pollution. 
                    Contributes towards the reduction of global warming. 
                    Reduces waste products in land fields 
                    Saves the earth by reducing deforestation                  (2 x 2)    (4)

 3.4    Explain the impact of inflation on debtors and creditors.

        Debtors
         A period of inflation benefits debtors at the expense of creditors.
         Contracts are drawn in advance and cannot be changed.
         Debtors pay at the reduced buying power which reduces actual
          expense.                                                            (2 x 2)

         Creditors
          Creditors receive payments with reduced buying power. 
          Creditors are disadvantaged.                                         (2 x 2)    (8)

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(EC/SEPTEMBER 2015)                       ECONOMICS P2                                        9

 3.5    Examine any TWO government intervention strategies to ensure
        environmental sustainability.

        Granting property rights:  ensures that people care for things that belong
        to them. To prevent fauna and flora species from being extinct, government
        allows property rights over them.
        Charging for the use of the environment : government levies a fee on
        consumers and producers for the waste they produce and dump on the
        environment.
        Levying environmental taxes/Green tax;  rather than charging for
        environmental use, a tax could be imposed on the output of good whenever
        external environmental costs are generated. 
        Paying for environmental subsidies:  subsidies may be provided for
        activities that reduce environmental damage,i.e., the development of new
        techniques or equipment; to encourage the production of environmentally
        friendly substitutes; encouraging recycling of waste.
        Ensuring marketable permits: instead of imposing taxes or emission
        charges on polluters, the government can assign each polluter with permitted
        limit.                                                           (Any 2 x 4)      (8)
                                                                                           [40]

 QUESTION 4:          MICROECONOMICS AND CONTEMPORARY ECONOMIC
                      ISSUES

 4.1    4.1.1 List any TWO international agreements on environmental
              sustainability.

                 Earth Summit in Rio de Janeiro (UNCED) 
                 World Summit on Sustainable Development (WSSD) 
                 Rio + 20 summit 
                 Kyoto Protocol 
                 United Nations Framework Convention on Climate Change
                 (COP 17) 
                 Conference of the Parties 
                (Accept any other relevant agreement.)              (Any 2 x 1)             (2)

        4.1.2   How will minimum wages reduce inequalities in South Africa?                 (2)

                Inequalities are reduced because workers are paid a wage that is
                above market price.
                (Accept any relevant explanation.)                            (1 x 2)       (2)

 4.2    DATA RESPONSE

        4.2.1   Close to which city is Robben Island situated?

                Cape Town                                                                  (1)

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10                                 ECONOMICS P2                                 (EC/SEPTEMBER 2015)

        4.2.2   Robben Island can be categorised as a … site.
                World Heritage site                                                           (1)

        4.2.3   Why is Robben Island labelled as ‘an experience like no other’?

                 The beauty of the island. 
                 This where the late former State President Nelson Mandela was
                  held together with other political prisoners. 
                 Museum (political history of South Africa is captured). 
                  (Accept any relevant response.)                            (2 x 2)           (4)

        4.2.4   Explain any TWO ways in which tourism can be promoted.

                 Improving marketing strategies (price, product, promotion and
                  place). 
                 By improving and extending supporting services, i.e. transport and
                  curio shops. 
                 Access to personal facilities for convenience, i.e. car rentals,
                  banking facilities. 
                  Accept any relevant answer.                                      (2 x 2)     (4)

 4.3    DATA RESPONSE

        4.3.1   Identify the company illustrated above.

                Eskom                                                                         (1)

        4.3.2   Name ONE of the new power stations under construction?
                Medupi power station /, Kusile power station                                ( 1)

        4.3.3   Describe any possible effects of the increase in electricity prices.

                 Large consumers of electricity would not want to do business in
                  South Africa/Industries will not be attracted to South Africa. 
                 Production of many goods that depend on electricity will be low. 
                 Households will use less of electricity and opt for other
                  alternatives.
                (Accept any relevant response.)                               (Any 1 x 2)      (2)

        4.3.4   Explain the ‘uniqueness of a product ‘as a feature of monopoly

                There are no close substitutes. 
                Buyers can only buy from the monopoly or go without the product. 
                (Accept any relevant response.)                              (1 x 2)           (2)

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(EC/SEPTEMBER 2015)                         ECONOMICS P2                                        11

        4.3.5   Explain why monopoly industry is regarded as inefficient.
                     The monopoly industry produces less output at higher prices. 
                     Some consumers are excluded from the market because they are
                      not able or willing to pay the higher price. 
                     It is not productive efficient when producing below the profit
                      maximising output. 
                     It produces its output at a higher AC, and it does not make the
                      most efficient use of society’s scarce resources. 
                      (Accept any relevant response.)                          (Any 2 x 2)     (4)

 4.4    Explain any TWO ways in which households benefit from tourism.

            Income:  Spending by tourists means income to the households
             because of the salaries and wages that they earn. 
            Infrastructure:Most of the infrastructure created for by tourists
             becomes available for use by local people. 
            Skills:  A variety of skills is required by the tourism industry. 
            A spin-off of tourism is the exposure to foreign cultures. 
            It impacts on cultural and social knowledge and enjoyment. 
                                                                               (Any 2 x 4)     (8)

 4.5    Compare a perfect market with a monopolistic market in terms of price,
        output and profit.

        Price
        The equilibrium price is higher in monopolistic than in the perfect market. 
        The consumer therefore pays less in perfect market and more in a
        monopolistic market. 

        Output
        The monopolistic competitor does not produce at the minimum of the LAC
        whereas the perfect competitor does. It is less efficient.  The perfect
        competitor produces more at a lower price while the monopolistic competitor
        produces less at a higher price. 

        Profit
        Both firms make normal profit in the long run. 
                                                                                              (8)
                                                                                             [40]

                                                                    TOTAL SECTION B:           80

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12                               ECONOMICS P2                           (EC/SEPTEMBER 2015)

 SECTION C

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

 STRUCTURE OF ESSAY                                             MARK ALLOCATION
 Introduction
  A good starting point would be to define a concept or key
     word that appears in the question.
  Include other sentences to support the topic.
  Do not include in your introduction any part of the
     question.
  Do not repeat any part of the introduction in the body.
  Avoid saying in the introduction what you are going to
     discuss in the body.                                            Max. 2
 Body:

 Main part: Discuss in detail/In-depth
 discussion/Examine/Critically
 discuss/Analyse/Compare/Evaluate/Distinguish/Differentiate/
 Explain/Assess/Debate                                              Max. 26

 Additional part: Give own opinion/Critically
 discuss/Evaluate/ Critically evaluate/Draw a graph and
 explain/Use the graph given and explain/Complete the given
 graph/Calculate/Deduce/
 Compare/Explain/Distinguish/Interpret/Briefly debate               Max. 10
 Conclusion
  The conclusion is a wrap up of the discussion of the topic
   in the body and should be treated as a higher order
   response.
  The conclusion can take the form of an own opinion,
   examples to support your discussion or contradictory
   viewpoint from what has been discussed.
  No aspect from either the introduction or body should be
   included in the conclusion.                                       Max. 2
 TOTAL                                                                40

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(EC/SEPTEMBER 2015)                       ECONOMICS P2                                        13

 QUESTION 5: MICROECONOMICS

 If a firm or an industry is operating inside its production possibility curve,
 then it is not using all its resources efficiently.

     Discuss causes/ reasons of market failures.                                  (26)
     Use a graph and explain how the government intervenes in the
      economy through setting maximum prices.                                      (10)

 INTRODUCTION
 Market failure occurs when the forces of demand and supply fail to allocate
 resources efficiently. 
 (Accept any relevant introduction.)                                                         (2)

 BODY

 Externalities 

 Externalities are costs not included in the pricing of goods/services, and
 consequently there is a difference between the private costs/benefits and the social
 costs/benefits of production. 

     Private costs: the cost of producing the good or service which translates into the
      prices that consumers pay.  They are also called internal costs. 
     Private benefits: Internal benefits that accrue to those who produce goods and
      buy these goods,  e.g. producing a bicycle (for producer) and using the
      bicycle (consumer). 
     Social costs: these are total costs incurred by society as a whole.  For
      example the social cost of electricity includes the cost of capital, labour,
      inputs and the cost of the externalities such as dirty water and air. 
      Social cost = private costs plus external costs 
     Social benefits: this includes the total benefit experienced by society as a
      whole. For example, municipalities provide clean water to society which
      results in fewer illnesses. 
      Social benefits = private benefits plus external benefits. 

 Negative externalities are things like pollution, tobacco smoking and alcohol
 abuse.  The costs of negative externalities are paid by society rather than by the
 producers.  For example, many illnesses are related to smoking. The treatment
 for these illnesses is paid for by society. 
 Negative externalities are often over-produced.  This leads to market failure.
 Positive externalities are the positive effects of products to third parties which are
 not paid for. 
 Positive externalities are under-produced.  This leads to market failure.

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14                                ECONOMICS P2                               (EC/SEPTEMBER 2015)

 Missing markets 

 Markets are incomplete because they cannot meet the demand for certain
 goods. 
 Public goods (community and collective goods) are in high demand but are not
 supplied by the market because of the low profit gained from them and the high cost
 of capital needed to supply them. 
 Since private producers cannot withhold these goods for non-payment, they are
 reluctant to provide these goods. 
 The government thus provides these goods and services. 

 Public goods 

 This includes community and collective goods and has two features:
  Non-rivalry: Consumption by one person does not reduce consumption by
    another individual, e.g. a lighthouse. 
  Non-excludability: Consumption can’t be confined to those who pay for it (free
    riders can use them), e.g. radio and television. 
 In addition:
  Social benefits outstrip private benefits: e.g. health care and education. 
  Non-rejectability: Individuals are not able to abstain from consumption, e.g. street
    lighting. 
  Continuous consumption e.g. traffic lights.

 Community goods 
 These are goods such as, defence, police services, prison services, street lighting,
 flood control, storm water drainage and lighthouses. 

 Collective goods 
 These are goods such as parks, beach facilities, streets. 
 Markets are incomplete and cannot meet the demand for all goods. 
 Government provides public goods, which consist of:

 Merit and demerit goods 
  Merit goods: These are highly desirable for general welfare, but not highly rated
    by the market, e.g. health care, education and safety. If people had to pay the
    market price for them, very little would be consumed. 
  The market fails because the market produces less than the desired quantity.
    
  Demerit goods: These are over-consumed goods, e.g. cigarettes, alcohol and
    drugs. Thus more of the good is produced than is socially desirable. 
  The government bans or reduces consumption of these products through
    taxation, and provides information to the population on their harmful effects. 

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(EC/SEPTEMBER 2015)                        ECONOMICS P2                                          15

 Imperfect competition 
   Most businesses operate under conditions of imperfect markets  that allow
    them to restrict output, raise prices, and produce where price exceeds marginal
    cost. 
   They can prevent new businesses from entering the industry. 
   This leads to the prevention of full adjustments to changes in consumer
    demand. 

 Lack of Information 
  Consumers, workers and entrepreneurs do not always have the necessary
    information at their disposal to make decisions
  Producers and consumers need full information to make decisions so that so
    that the market can operate efficiently. 
  Incorrect information leads to incorrect decision-making about what, for whom
    and how to produce, this leads to wastage of resources. 
  Advertisements also lead to incorrect decision-making, based on false
    information. 

 Immobility of factors of production 
   Markets may not be able to respond to changes in consumer demand, if factors
     of production cannot respond and move around easily. 
   Resources tend not to be very mobile, so most markets do not adjust rapidly to
     changes in supply and demand. 
   Labour may take time to move from one job to another or one place to another,
     and the same is true for physical capital. 
    
 Imperfect distribution of income and wealth 
   Free markets tend to generate unequal distribution of income and wealth, some
     participants are rewarded better than others 
   This is caused by:
     o     A difference in market power 
     o     The initial distribution of wealth 
     o     Unequal access to markets and educational opportunities 
     o     Discrimination 
 (Max. 8 marks for sub-headings ; 18 marks discussion)                                        (26)

 ADDITIONAL PART

 Setting maximum prices/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. 
      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. 

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16                                 ECONOMICS P2                                 (EC/SEPTEMBER 2015)

     Price
               D                                      S

     P1

     P2
                                                             maximum price 
                S            shortage                D

       0
                      Q2         Q         Q1                Quantity

 (Graph = 6 marks)

 Initially the market equilibrium price is P1 and equilibrium quantity is Q. 
        The government intervenes and passes a law that milk cannot be sold for
         more than P1. 
        The effect of this maximum price is that quantity supplied decreases to Q1 and
         quantity demanded increases to Q2. 
        There is a shortage of milk equal to the difference between Q1 and Q2. 
        A shortage creates a problem of how to allocate milk to consumers. 
        Black markets often develop where people can obtain milk. A black market is
         an illegal market in which either illegal goods are bought and sold or illegal
         prices are charged. 
        • Maximum prices may cause a shortage of goods but they do improve the
         welfare of some consumers since goods can be purchased at lower prices. 
                                                                                    (Any 4)   (10)

 CONCLUSION

 Any relevant higher order conclusion that should include:
  A summary of what has been discussed without repeating facts already
   mentioned in the body
  An opinion or valued judgement on the facts discussed
  Additional support information to strengthen the discussion
  A contradictory viewpoint with motivation

 Recommendation

 E.g. in dealing with the market failures the government can use taxes and subsidies
 to influence the market. It can also regulate the production or consumption of
 output.                                                                                     (2)
                                                                                              [40]

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(EC/SEPTEMBER 2015)                       ECONOMICS P2                                        17

 QUESTION 6

 South Africa is a land of beauty with contrasting landscapes, which is typical
 of Africa. South Africa has become a major tourist destination because of its
 rich political history.

 In light of the above statement discuss the effects of tourism
 Briefly explain ways by which tourism can be promoted in the rural areas.

 INTRODUCTION

 The tourism sector is one of the service sectors in South Africa that has grown in
 leaps and bounds. It is one of the greatest revenue generators and has become a
 force to be reckoned with. For South Africa the effects of tourism are positive than
 negative. 

 BODY

 Preserving culture and heritage 
  Tourism, especially rural and cultural tourism, contributes to preserving our
   indigenous knowledge systems. 
  Indigenous knowledge refers to the knowledge belonging to a specific ethnic
   group, culture or society. 
  It forms the basis for local level decision-making in agriculture, health care, food
   preparation, education, natural resource management and many other activities
   in rural communities. 

 Establishing the character of our society
     If foreign visitors to our country have a pleasant experience, this can
       contribute to strengthening international relations and building socio-
       economic and political networks that may benefit the country in future
     Investment in tourism is also an investment into the image of our country. A
       country with a positive image finds it easier to secure investment.
    
 Contribution to GDP 
  Tourism is a great contributor to GDP
  World tourism was affected by the global economic crisis in 2007, but it has
   proved to be the most resilient sector in the economy. 
  Despite dropping by 4,8% by 2009, in 2010, it increased again by nearly 7%. 
  Therefore tourism has the potential to bring the economy out of an economic
   slump. 

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18                                ECONOMICS P2                               (EC/SEPTEMBER 2015)

 Impact on the environment 
   Tourism involves transport which is a major contributor to pollution 
   Tourists should be transported in the most environmentally friendly way, while
    still preserving their comfort. 
   Tourists interested in a more culturally authentic experience, may prefer
    environmentally means of transport, i.e. horses, cycling, canoeing etc. 

 Impact on infrastructure 
  A high number of tourists can put pressure on existing infrastructure. 
  Sanitation, electricity, services, roads and railways may be inadequate to provide
   for the needs of locals as well as tourists, these services can be updated and
   increased if it is believed that it will contribute increasing tourism. 
  The additional income created by the tourism industry can finance these
   upgrades 
  Before the 2010 FIFA World Cup, the National Treasury allocated R574,9 million
   to the South African National Parks to develop infrastructure and improve
   facilities at the country’s nature reserves. 
   (Max 5 for sub-headings; 21 marks for discussion)                                       (26)

 ADDITIONAL PART

 Suggestions on promoting rural tourism
  Establish the economic viability of a particular project in a rural area, after
    that has been confirmed, the development of such a project will the following
    integrated approach:
         The cooperation of local population must be gained.  Local people
          need to understand the advantages of the tourism project, the efforts
          required, and the consequences
         The local communities should agree to these projects before they
          commence. 
         Products and services created need to be suitable for that particular area.
          When services are developed, they should meet the objectives of poverty
          alleviation, redistribution of income and poverty alleviation
         Access to funding should be organised in such a way that people living in
          rural areas should benefit from the funding, if they have ideas that tourists
          would be interested in
         People in the rural areas should be educated and trained, even if they are
          not in the tourism setup, because their behaviour will affect tourists
         A marketing effort needs to be developed to make the global community
          aware of the destination.                                       (Any 5 x 2)    (10)

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(EC/SEPTEMBER 2015)                      ECONOMICS P2                                       19

 CONCLUSION

 Any relevant higher order conclusion that should include:
  A summary of what has been discussed without repeating facts already
   mentioned in the body/
  An opinion or valued judgement on the facts discussed/
  Additional support information to strengthen the discussion/
  A contradictory viewpoint with motivation

 Recommendation
 E.g. Tourism has advanced tremendously in South Africa, but there is still room for
 improvement. More still needs to be done especially in marketing the rural
 destinations locally and world-wide, because they have a lot of potential.             (2)
                                                                                         [40]

                                                                TOTAL SECTION C:           40
                                                                   GRAND TOTAL:           150

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