• PRO Courses Guides New Tech Help Pro Expert Videos About wikiHow Pro Upgrade Sign In
  • EDIT Edit this Article
  • EXPLORE Tech Help Pro About Us Random Article Quizzes Request a New Article Community Dashboard This Or That Game Popular Categories Arts and Entertainment Artwork Books Movies Computers and Electronics Computers Phone Skills Technology Hacks Health Men's Health Mental Health Women's Health Relationships Dating Love Relationship Issues Hobbies and Crafts Crafts Drawing Games Education & Communication Communication Skills Personal Development Studying Personal Care and Style Fashion Hair Care Personal Hygiene Youth Personal Care School Stuff Dating All Categories Arts and Entertainment Finance and Business Home and Garden Relationship Quizzes Cars & Other Vehicles Food and Entertaining Personal Care and Style Sports and Fitness Computers and Electronics Health Pets and Animals Travel Education & Communication Hobbies and Crafts Philosophy and Religion Work World Family Life Holidays and Traditions Relationships Youth
  • Browse Articles
  • Learn Something New
  • Quizzes Hot
  • This Or That Game New
  • Train Your Brain
  • Explore More
  • Support wikiHow
  • About wikiHow
  • Log in / Sign up
  • Education and Communications
  • College University and Postgraduate
  • Academic Writing

How to Write a Good Economics Essay

Last Updated: March 7, 2023 References

This article was co-authored by Emily Listmann, MA . Emily Listmann is a private tutor in San Carlos, California. She has worked as a Social Studies Teacher, Curriculum Coordinator, and an SAT Prep Teacher. She received her MA in Education from the Stanford Graduate School of Education in 2014. This article has been viewed 126,671 times.

A good economics essay requires a clear argument that is well-supported by appropriately referenced evidence. Research your topic thoroughly and then carefully plan out your essay. A good structure is essential, as is sticking closely to the main essay question. Be sure to proofread your essay and try to write in formal and precise prose.

Preparing to Write Your Essay

Step 1 Read the question carefully.

  • For example a question such as “Discuss the macroeconomic consequences of rising house prices, alongside falling interest rates” could be divided into 2 parts: 1 part could be on the effects of rising prices, and 1 on the effects of falling interest rates.
  • In this example you could begin by discussing each separately and then bringing the 2 together and analysing how they influence each other.
  • Be sure to keep the question at the forefront of your mind and don’t veer off topic. [1] X Research source

Step 2 Research the topic thoroughly

  • Be sure that you understand all the key terms that you are being asked about.
  • Try to keep your reading focussed closely to the essay question.
  • Don’t forget to look at any lecture or class notes you have made.
  • 3 Come up with a thesis statement . A thesis statement is the main argument you will make in your essay. It should be 1-2 sentences long and respond to the essential question that’s being asked. The thesis will help you structure the body of your essay, and each point you make should relate back to the thesis.

Step 4 Plan out your content.

  • Once you have put together a list of key points, then try to add in some more detail that brings in elements from your research.
  • When you come to write out your essay, you can develop a paragraph based on each point.

Step 5 Think about your...

  • All of the evidence and explanation will be in the main body of the essay.
  • Order the key points in the body of your essay in such a way that they flow logically.
  • If you are writing a longer essay, you can break the main body into different sections. [2] X Research source
  • If you have a word limit, be sure to take this into account when you are planning.
  • Allocate yourself a rough number of words per section.
  • The introduction and conclusion can be just a paragraph each.

Writing the Essay

Step 1 Write the introduction...

  • What your essay is about.
  • What material you will cover in the essay.
  • What your argument is. [3] X Research source

Step 2 Outline your argument.

  • Having this stated clearly at the start can help you to stay focussed on the question as you work your way through the essay.
  • Try writing out this one or two sentence statement and sticking it up in front of you as you write, so it’s stays at the forefront of your mind.

Step 3 Write the body of the essay.

  • Try to begin each paragraph with a sentence that outlines what the paragraph will cover.
  • Look at the opening sentence of each paragraph and ask yourself if it is addressing the essay question. [5] X Research source

Step 4 Provide evidence for your argument.

  • Try to engage with arguments that run counter to yours, and use the evidence you have found to show the flaws.
  • It might help to imagine someone reading the essay, and anticipating the objections that he might raise.
  • Showing that you have thought about potential problems, and you can make an argument that overcomes them, is a hallmark of an excellent essay. [6] X Research source
  • If there is conflicting evidence, discuss it openly and try to show where the weight of the evidence lies. [7] X Research source
  • Don’t just ignore the evidence that runs counter to your argument.

Step 5 Write the conclusion...

  • In the conclusion you can add a few sentences that show how your essay could be developed and taken further.
  • Here you can assert why the question is important and make some tentative suggestions for further analysis.

Proofreading and Making Revisions

Step 1 Check for divergences away from the question.

  • As you read through it, think about how closely you stick to main overarching question.
  • If you notice paragraphs that drift off into other areas, you need to be tough and cut them out.
  • You have a limited number of words so it’s essential to make every one count by keeping tightly focussed on the main question.

Step 2 Assess the quality and depth of your argument.

  • Think about how you use the evidence too. Do you critically engage with it, or do you merely quote it to support your point?
  • A good analytical essay such discuss evidence critically at all times.
  • Even if the evidence supports your argument, you need to show that you have thought about the value of this particular piece of data.
  • Try to avoid making any assumptions, or writing as if something were beyond dispute. [10] X Research source

Step 3 Check spelling, grammar and style.

  • Remember an academic essay should be written in a formal style, so avoid colloquialisms.
  • Avoid contractions, such as “don’t”, or “won’t”.
  • Try to avoid paragraphs that are more than ten or fifteen lines long.
  • Think about how it looks on the page. [12] X Research source

Step 4 Check your referencing and bibliography.

  • Always include a bibliography, but don’t include references to things you haven’t read or didn’t inform your argument. [13] X Research source
  • Your teacher will know if you just add a load of titles into your bibliography that are not evidenced in the body of your essay.
  • Always follow the bibliography format used by your department or class.

Community Q&A

Community Answer

You Might Also Like

Write an Expression of Interest

  • ↑ http://www.economicshelp.org/help/tips-economic-essays/
  • ↑ http://www.writing.utoronto.ca/advice/planning-and-organizing/organizing
  • ↑ http://carleton.ca/economics/courses/writing-preliminaries/academic-essay-writing/
  • ↑ https://www.economicsnetwork.ac.uk/archive/lse_writing/page_11.htm
  • ↑ http://homes.chass.utoronto.ca/~mcmillan/writing.pdf
  • ↑ https://www.royalholloway.ac.uk/economics/documents/pdf/essaywriting-departmentofeconomics.pdf

About This Article

Emily Listmann, MA

Before you begin writing your economics essay, make sure to carefully read the prompt so that you have a clear sense of the paper's purpose and scope. Once you have read the prompt, conduct research using your textbook and relevant articles. If you cannot find research materials, ask your instructor for recommendations. After your research is done, construct a 1-2 sentence thesis statement and begin outlining your main ideas so that your essay will have a clear structure. Make sure to leave time to write a draft and revise your work before it is due. If you want to learn more, like how to cite the sources you used for your essay, keep reading the article! Did this summary help you? Yes No

  • Send fan mail to authors

Reader Success Stories

Twyla Kirkpatrick

Twyla Kirkpatrick

Dec 8, 2020

Did this article help you?

Arshad Bhatti

Arshad Bhatti

Sep 10, 2017

Fungai Samantha Zuva

Fungai Samantha Zuva

Jan 30, 2019

James Smith

James Smith

Oct 2, 2016

Mallesh Itti

Mallesh Itti

Jul 10, 2022

Am I a Narcissist or an Empath Quiz

Featured Articles

Make Your School More Period Friendly

Trending Articles

What is Golden Child Syndrome? 7 Signs You Were the Golden Child

Watch Articles

Wrap a Round Gift

  • Terms of Use
  • Privacy Policy
  • Do Not Sell or Share My Info
  • Not Selling Info

wikiHow Tech Help Pro:

Level up your tech skills and stay ahead of the curve

Economics Help

Tips for writing economics essays

Some tips for writing economics essays  Includes how to answer the question, including right diagrams and evaluation – primarily designed for A Level students.

1. Understand the question

Make sure you understand the essential point of the question. If appropriate, you could try and rephrase the question into a simpler version.

For example:

Q. Examine the macroeconomic implications of a significant fall in UK House prices, combined with a simultaneous loosening of Monetary Policy.

In plain English.

  • Discuss the effect of falling house prices on the economy
  • Discuss the effect of falling interest rates (loose monetary policy) on economy

In effect, there are two distinct parts to this question. It is a valid response, to deal with each separately, before considering both together.

It helps to keep reminding yourself of the question as you answer. Sometimes candidates start off well, but towards the end forget what the question was. Bear in mind, failure to answer the question can lead to a very low mark.

2. Write in simple sentences

For clarity of thought, it is usually best for students to write short sentences. The main thing is to avoid combining too many ideas into one sentence. If you write in short sentences, it may sound a little stilted; but it is worth remembering that there are no extra marks for a Shakespearian grasp of English. (at least in Economics Exams)

Look at this response to a question:

Q. What is the impact of higher interest rates?

Higher interest rates increase the cost of borrowing. As a result, those with mortgages will have lower disposable income. Also, consumers have less incentive to borrow and spend on credit cards. Therefore consumption will be lower. This fall in consumption will cause a fall in Aggregate Demand and therefore lead to lower economic growth. A fall in AD will also reduce inflation.

fall-in-ad-arrow-ad-as

I could have combined 1 or 2 sentences together, but here I wanted to show that short sentences can aid clarity of thought. Nothing is wasted in the above example.

Simple sentences help you to focus on one thing at once, which is another important tip.

3. Answer the question

Quite frequently, when marking economic essays, you see a candidate who has a reasonable knowledge of economics, but unfortunately does not answer the question. Therefore, as a result, they can get zero for a question. It may seem harsh, but if you don’t answer the question, the examiner can’t give any marks.

At the end of each paragraph you can ask yourself; how does this paragraph answer the question? If necessary, you can write a one-sentence summary, which directly answers the question. Don’t wait until the end of the essay to realise you have answered a different question.

Discuss the impact of Euro membership on UK fiscal and monetary policy?

Most students will have revised a question on: “The benefits and costs of the Euro. Therefore, as soon as they see the Euro in the title, they put down all their notes on the benefits and costs of the Euro. However, this question is quite specific; it only wishes to know the impact on fiscal and monetary policy.

The “joke” goes, put 10 economists in a room and you will get 11 different answers. Why? you may ask. The nature of economics is that quite often there is no “right” answer. It is important that we always consider other points of view, and discuss various different, potential outcomes. This is what we mean by evaluation.

Macro-evaluation

  • Depends on the state of the economy – full capacity or recession?
  • Time lags – it may take 18 months for interest rates to have an effect
  • Depends on other variables in the economy . Higher investment could be offset by fall in consumer spending.
  • The significance of factors . A fall in exports to the US is only a small proportion of UK AD. However, a recession in Europe is more significant because 50% of UK exports go to EU.
  • Consider the impact on all macroeconomic objectives . For example, higher interest rates may reduce inflation, but what about economic growth, unemployment, current account and balance of payments?
  • Consider both the supply and demand side . For example, expansionary fiscal policy can help to reduce demand-deficient unemployment, however, it will be ineffective in solving demand-side unemployment (e.g. structural unemployment)

Example question :

The effect of raising interest rates will reduce consumer spending.

  • However , if confidence is high, higher interest rates may not actually discourage consumer spending.

fall-in-ad-depending-spare-capacity-full

If the economy is close to full capacity a rise in interest rates may reduce inflation but not reduce growth. (AD falls from AD1 to AD2)

  • However , if there is already a slowdown in the economy, rising interest rates may cause a recession. (AD3 to AD3)

Micro-evaluation

1. The impact depends on elasticity of demand

tax-depends-elasticity

In both diagrams, we place the same tax on the good, causing supply to shift to the left.

  • When demand is price inelastic, the tax causes only a small fall in demand.
  • If demand is price elastic, the tax causes a bigger percentage fall in demand.

2. Time lag

In the short term, demand for petrol is likely to be price inelastic. However, over time, consumers may find alternatives, e.g. they buy electric cars. In the short-term, investment will not increase capacity, but over time, it may help to increase a firms profitability. Time lags.

3. Depends on market structure

If markets are competitive, then we can expect prices to remain low. However, if a firm has monopoly power, then we can expect higher prices.

4. Depends on business objectives

If a firm is seeking to maximise profits, we can expect prices to rise. However, if a firm is seeking to maximise market share, it may seek to cut prices – even if it means less profit.

5. Behavioural economics

In economics, we usually assume individuals are rational and seeking to maximise their utility. However, in the real world, people are subject to bias and may not meet expectations of classical economic theory. For example, the present-bias suggest consumers will give much higher weighting to present levels of happiness and ignore future costs. This may explain over-consumption of demerit goods and under-consumption of merit goods. See: behavioural economics

Exam-Tips

Exam tips for economics – Comprehensive e-book guide for just £5

8 thoughts on “Tips for writing economics essays”

I really want to know the difference between discussion questions and analysis questions and how to answer them in a correct way to get good credit in Economics

Analysis just involves one sided answers while Discussion questions involve using two points of view

This is a great lesson learnd by me

how can I actually manage my time

The evaluation points in this article are really useful! The thing I struggle with is analysis and application. I have all the knowledge and I have learnt the evaluation points like J-curve analysis and marshall learner condition, but my chains of reasoning are not good enough. I will try the shorter sentences recommended in this article.

What kind of method for costing analysis is most suitable for a craft brewery, in order to analyze the cost of production of different types of beer_

Really useful!Especially for the CIE exam papers

Does anyone know how to evaluate in those advantages/disadvantages essay questions where you would basically analyse the benefits of something and then evaluate? Struggling because wouldn’t the evaluation just be the disadvantages ?? Like how would you evaluate without just stating the disadvantage?

Leave a comment Cancel reply

web analytics

NOW OPEN: 2024 Term One Enrolments 🎉

economics essay plan

A State-Ranker’s Guide to Writing 20/20 Economics Essays

So, you want to know how to improve your preliminary and HSC economics essay...

economics essay plan

1. Introduction to this Guide

So, you want to know how to improve your preliminary and HSC economics essay writing? Look no further! In this guide, I’ll be covering key tips to help YOU smash the structure, amaze with your analysis, conquer the contemporary, and ultimately master the mystery of maximising your marks.

My name is Cory Aitchison, currently one of the Economics tutors at Project Academy . I completed the HSC in 2018, achieving a 99.95 ATAR as well as two state ranks — 6th in economics and 12th in chemistry. Graduating from Knox Grammar School, I also topped my grade in economics and was awarded Dux of the School for STEM. Believe it or not, at the beginning of Year 11 I initially struggled with economics due to the transition in conceptual thinking required in approaching economic assessments in comparison to my other subjects such as English. However, through Year 11 and Year 12, I built up key tips and strategies — that I’ll be sharing with you in this guide — to help me not only consistently achieve top marks in my internal assessments, but to ultimately go on to achieve the results I did in the HSC.

2. The Correct Way to Write

First off, you need to understand something: HSC economics essays are NOT english essays! They aren’t scientific discussions, nor geography reports, nor historical recounts. They’re unique and often quite different from other essays that you might’ve done previously in high school. The style of writing and approach to answering questions can be confusing at first, but follow these tips and you’ll be ready in no time:

Phrasing should be understandable and concise

Unlike some subjects where sophisticated phrasing is beneficial to getting marks, HSC economics essays should emphasise getting your point across with clarity. This means don’t run your sentences on for too long, be aware of any superfluous words, and make sure you actually understand yourself what you’re trying to say in a sentence.

For example:

GOOD: “An increase in interest rates should lead to decreased economic growth.”

NOT GOOD: “As a result of a rise or increase in interest rate levels from their previous values, the general state of economic activity in the domestic economy may begin to decrease and subsequently indicate the resultant situation of a decrease in economic growth.”

“Understandable” does not mean slang or lacking in terminology

Just because you want to get a point across, doesn’t mean you should resort to slang. In fact, using economic terminology is a strong way to boost your standing in the eyes of the marker — if you use it correctly! Always make sure you use full sentences, proper English grammar, and try and incorporate correct economic terms where possible.

GOOD: “This was a detrimental outcome for the economy.”

NOT GOOD: “This was a pretty bad outcome for the economy.”

GOOD: “The Australian Dollar depreciated.”

NOT GOOD: “The Australian Dollar decreased in value.”

Analysis should be done using low modality

Modality just refers to the confidence of your language — saying something “will” happen is strong modality, whereas saying something “might” happen is considered low modality. Since a large portion of economics is about applying theory, we have to make sure that we are aware that we are doing just that — talking about the theoretical, and so we can’t say for sure that anything will happen as predicted.

Some useful words include:

May, Might, Should, Could, Can theoretically

Don’t use words like:

Must, Will, Has to, Always

3. How to use Statistics

“What’s most important is that this contemporary is used to bring meaning or context to your argument…”

Using contemporary (statistics) can often seem straightforward at first, but using it effectively is usually harder than it looks. Contemporary generally refers to applying real-world facts to your analysis to help strengthen (or weaken) the theoretical arguments. This can include many different statistics or pieces of information, including:

  • Historic economic indicators, such as GDP, inflation, GINI coefficients, exchange rates, or unemployment rates
  • Trends or economic goals, such as long-term GDP growth rates, or the stability band for inflation
  • Names of economic policies, such as examples of fiscal or microeconomic policies
  • Specifics of economic policies, such as the amount spent on infrastructure in 2017

economics essay plan

Whatever statistics you deem relevant to include in your essay, what’s most important is that this contemporary is used to bring meaning or context to your argument — just throwing around random numbers to show off your memorisation skills won’t impress the marker, and in fact might appear as if you were making them up on the spot. Rather, your use of contemporary should actively improve your analysis.

GOOD: “Following a period of growth consistently below the long-term trend-line of 3%, the depreciation of the AUD to 0.71USD in 2017 preceded an increase in economic growth to a 10-year high of 3.4% in 2018.”

NOT GOOD: “Economic growth increased by 1 percentage point in 2017 to 2018”

NOT GOOD: “GDP was $1.32403 trillion in 2017”

GOOD: “The 2017 Budget’s Infrastructure Plan injected $42 billion into the economy — up 30% from 2016’s $31 billion, and 20% higher than the inflation-adjusted long-term expenditure.”

NOT GOOD: “The 2017 Budget’s Infrastructure Plan injected $42 billion into the economy”

That in mind, don’t think that these statistics have to be overly specific. As long as the general ideas gets across, it’s fine. You don’t need to say “$1,505,120” — just “$1.5 million” will suffice.

Ask yourself: if I get rid of the contemporary from my paragraphs, does the essay still have enough content?

Further, don’t get roped into the “contemporary trap” — where you fall into the mindset that “if I memorise all these statistics, my essay will get good marks”. Including numbers and contemporary at the expense of having a robust theoretical explanation and analysis will definitely be detrimental in getting you top marks. Particularly in trial exams and the HSC when you’ve got all these numbers floating in your head, it can be tempting to try and include as many as you can (often just because you can!). To avoid this, always try and focus your arguments on analysis and syllabus content first, contemporary second. Ask yourself: if I get rid of the contemporary from my paragraph, does the essay still have enough content?

4. Must Have Insightful “However”s

If you really want to extend your analysis and show the marker that you know your stuff, including insightful “however”s is a strong way to do it. What I mean by this is that for each of your paragraphs, try and include a counterpoint that highlights the flexible nature of economic theory. There are broadly two kinds of “however”s:

Theoretical “However”s

These are counterpoints that are based on theory — often there will be theoretical limitations for many of the concepts you come across in economics. It’s always important to include these limitations as it reinforces your knowledge of the actual content of economics.

“Although the Budget and fiscal policy can be effective at stimulating economic growth, it is also restricted by the “implementation time lag” limitation since it is only introduced annually.”

Contemporary “However”s

These are counterpoints that are based on contemporary — highlighting how although something should happen theoretically, this isn’t usually what is observed in reality. This can be particularly powerful in that it combines your knowledge of theory with your analysis of contemporary.

“Despite the expansionary stance that the RBA adopted in 2012–2016 for monetary policy, Australia’s annual GDP growth rate has remained below the trend rate of 3% — against the theoretical expectations. This could be attributed to factors such as …”

5. How to Interpret the Question

When you first look at a question, before you even put pen to paper, you need to come up with a plan of attack — how can you ensure that you answer the question correctly, and give the markers what they want? There are three main points to look for when interpreting essay questions:

Knowing your verbs

As you may (or may not) know, NESA has a bank of words that they like to pull from when writing questions, and these words impact how they want their question answered. These verbs should help steer your analysis onto the right path. For example:

Explain: “Relate causes and effects”

To answer these questions, you have to demonstrate a thorough understanding of how theory and events impact each other and the economy. This verb particularly emphasises the idea of a process — you need to be able to make clear links as to how each step leads to the next, rather than just jumping to the outcomes.

Analyse: “Draw out and relate implications”

These questions usually wants you to investigate the connections between different aspects of economic theory. Generally this involves showing a holistic understanding of how different areas (such as micro- and macroeconomic policies) come together to make a cohesive impact on the economy. It usually helps to think back to the syllabus and how the points are introduced when figuring out which ideas to link together.

Assess/Evaluate: “Make a judgement based on value/a criteria”

These require you to not only critically analyse a topic but also come to a conclusion given the arguments you provided. This type of question usually gets you to make a judgement of the effectiveness of some economic theory — such as the ability for economic policies to achieve their goals. Make sure you actually include this judgement in your answer — for example, say things like “strong impact”, “highly influential”, “extremely detrimental”.

Discuss: “Provide points for and/or against”

Similar to assess, discuss wants you to provide arguments towards and against a particular topic. Although it doesn’t require a specific judgement to be made, it does place greater emphasis on showing a well-rounded approach to the argument — providing relatively equal weightings towards both the positive and negative sides of the discussion.

Linking to the syllabus

When trying to understand what the question wants from you, I found the best way to approach it is to consider what points in the syllabus it is referring to (To do this, you need to have a solid understanding of the syllabus in the first place). Once you’ve located it, try drawing upon other topics in the vicinity of that dot point to help you answer the question.

For example, if the question mentions “trends in Australia’s trade and financial flows”, then you know from the syllabus that you probably need to talk about value, composition and direction in order to get high marks. Further, it may also be worth it to bring in ideas from the Balance of Payments, as this is the next dot point along in the syllabus.

Digging into the source

For essay questions that provide a source for you to include in your answer, this is another goldmine from which you can discern what the marker really wants. If the source mentions microeconomic policy, it probably wasn’t on accident! Even if it may not be obvious how to link that to the question immediately, try and draw upon your knowledge and implications and see if there’s a different angle that you might be missing.

6. Putting it All together — Structuring your essay

My essays usually consisted of four main parts: an introduction, a background paragraph, body paragraphs, and a conclusion.

Introduction

Your introduction should not be long. I rarely wrote an introduction longer than three sentences.

First sentence: Answer the question (thesis)

Try and answer the question, while including the main key words of the question in your answer. Don’t directly restate it — instead, try and add meaning to it in a way that represents what you’re trying to get across in your essay.

For example: if the question was “Assess the impact of microeconomic policy in improving economic growth in Australia”, my first sentence might be “Microeconomic policy has had a significant impact in increasing aggregate supply and thus long-term economic growth in Australia since the 1960s”.

Next sentences: Introduce your arguments/paragraphs

In this part, it’s fine to almost list your paragraphs — there’s no need to do a whole sentence explaining each. That’s what the paragraphs themselves are for.

For example: using the same question as above, my next sentence might be “Although trade liberalisation may have been detrimental for short-term growth in manufacturing, policies such as competition policy and wage decentralisation have been highly effective in fostering economic growth in Australia”.

Background Paragraph

The aim of a background paragraph is threefold: to get across the main theory that underpins your argument; to establish the economic context for your argument; and to show the marker that you “know your stuff”.

For example, if the essay was on monetary policy, you may want to describe the process of Domestic Market Operations (how the reserve bank changes the cash rate) in your background paragraph, so that you don’t need to mention it each time you bring up changing stances. Further, it may be good to showcase the current economic climate — such as GDP growth rate and inflation — to give context to your analysis in your essay.

Some ideas for what to include in this paragraph include:

  • Key theory such as DMOs or the rationale for macroeconomic policies
  • Economic indicators that provide context to the time period that you’re working in, such as growth rates, inflation, unemployment rates, exchange rates, cash rates, etc.
  • A brief description of the recent Budget (if talking about fiscal policy), including the stance and outcome

Bear in mind that this paragraph shouldn’t be too long — it isn’t the focus of your essay! Instead, aim for around 100–150 words at most. At this point in your essay, it may also be good to include a graph (more on this later).

Body Paragraphs

There’s no set rule for how many body paragraphs to include in your essay — I generally aim for at least 4, but there’s no real limit to how many you can (or should) write! Unlike english essays, it’s totally acceptable to just split a paragraph in two if you feel like the idea is too large to be written in one paragraph (as long as each paragraph makes sense on its own).

When writing a paragraph, I usually follow this structure:

Topic sentence

This is where you answer the question, and outline your argument or idea for this paragraph. If you are doing a discuss/assess/evaluate essay, try and make your judgement or side obvious. For example: “Trade liberalisation has been detrimental in its impact on economic growth in manufacturing industries”.

These sentences are where you bring together the theory and contemporary to build up your argument. Remember, the theory should be the focus, and contemporary a bonus. Try and weave a “story” into your analysis if you can — you should be showing the marker how everything fits together, how causes lead to effects, and ultimately bringing together relevant economic concepts to answer the question. Feel free to also include graphs here when they help strengthen your argument.

Fit in your “however” statements here. For discuss questions, this however section may take up a larger part of the paragraph if you choose to showcase two opposing arguments together.

Link your argument back to your overarching thesis, and answer the question. Following on from your “however” statement, it can often be a good idea to use linking words such as “nevertheless”, “notwithstanding”, or “despite this” to show that taking into account your arguments presented in the “however” statement, the overarching idea for the paragraph still remains.

Like the introduction, your conclusion should not be overly long. Rather, it should briefly restate the arguments made throughout your essay, and bring them all together again to reinforce how these points help answer the question.

economics essay plan

Aggregate Demand / Supply Graph

Graphs are a great way to add extra spice to your essay — not only does it help strengthen your explanations of economic theory, it also makes it look like you wrote more pages than you actually did! Graphs, such as aggregate demand graphs, business cycle graphs, and Phillips curves, can be great in reinforcing your ideas when you mention them in your essay. They usually come either in background paragraphs or body paragraphs, and it’s usually best to draw them about a quarter to a third of the page in size. It’s also good practice to label them as “Figure 1” or “Graph 1”, and refer to them as such in your actual paragraph.

Although they can be beneficial, don’t try and force them either. Not all essays have appropriate graphs, and trying to include as many as you can without regards for their relevance may come across negatively in the eyes of the marker.

8. How to Answer Source Questions

If your essay question involves a source, try and refer to it multiple times throughout your essay. For example, this can be in the background paragraph and two of your body paragraphs. Rather than just adding in an “…as seen in the source” to one of your sentences, try and actively analyse it — show the marker that you understand why they included it, and how it actually helps strengthen your arguments.

9. Plan You Essay

Don’t be afraid to use the first page of your answer booklet as a planning page. Taking a couple minutes before you answer the question to lay out your scaffold for body paragraphs is a great first step to helping ensure that you actually end up answering the question to the best of your abilities. It also serves as a great reminder to keep checking as you finish each paragraph to ensure that you actually wrote what you intended. Just make sure to make it clear to the marker that those scribbles on the page are just a plan, and not your actual essay!

10. How to Prepare for Essays in the Exam

I find it much better to prepare paragraphs and ideas that you can draw upon to help “build up” a response during the exam itself.

Don’t go into the exam with a pre-prepared essay that you are ready to regurgitate — not only are there too many possibilities to prepare for, but it’s also unlikely that you’ll actually answer the question well with a pre-prepared response.

Instead of memorising sets of essays before the exam, I find it much better to prepare paragraphs and ideas that you can draw upon to help “build up” a response during the exam itself. What I mean by this, is that in your mind you have a “bank of different paragraphs” and ideas from all the topics in the syllabus, and when you read the exam, you start drawing from different paragraphs here and there to best formulate a response that answers the question. This allows you to be flexible in answering almost any question they can throw at you.

On top of this, ensure you have a solid foundation in both the theory and contemporary — knowing what statistics or topics to include in your essay is useless knowledge unless you have the actual content to back it up.

Now that you know the basics of how to write a good HSC economics essay, it’s time to start practising! Have a go, try out different styles, and find what works best for you. Good luck!

If you would like to hear more from me and get the PDF version of the guide complete with additional diagrams and tables, click here !

Maximise Your Chances Of Coming First At School

Trial any Project Academy course for 3 weeks.

NSW's Top 1% Tutors

Unlimited Tutorials

NSW's Most Effective Courses

Access to Project's iPad

Access to Exclusive Resources

Access to Project's Study Space

economics essay plan

The Top 5 Tips for Acing HSC Biology

The Head of Biology, Alex's guide to acing HSC Biology

Alex Loustau

Alex Loustau

99.45 ATAR & AR at Normanhurst Boys

economics essay plan

T.S. Eliot Exemplar Essay - Module B HSC English Advanced

The following essay was written by Fenna Kroon, Project's English Resourcer!

Fenna Kroon

Fenna Kroon

94 in English Advanced

economics essay plan

How to Improve in HSC Trials by Evaluating Your Mistakes

Are you simply rereading your notes, highlighting your textbook, or are you...

Rishabh Jain

Rishabh Jain

Head of Product & Head of Chemistry

economics essay plan

Ultimate Guide To Getting A Co-Op Scholarship Offer

This is a summary of the best tips, tricks and techniques accumulated over...

Project Academy

Project Academy

TEAM OF ACADEMIC ADVISORS

Economics Essay Examples

Barbara P

Ace Your Essay With Our Economics Essay Examples

Published on: Jun 6, 2023

Last updated on: Jan 31, 2024

economics essay examples

Share this article

Are you struggling to understand economics essays and how to write your own?

It can be challenging to grasp the complexities of economic concepts without practical examples.

But don’t worry! 

We’ve got the solution you've been looking for. Explore quality examples that bridge the gap between theory and real-world applications. In addition, get insightful tips for writing economics essays.

So, if you're a student aiming for academic success, this blog is your go-to resource for mastering economics essays.

Let’s dive in and get started!

On This Page On This Page -->

What is an Economics Essay?

An economics essay is a written piece that explores economic theories, concepts, and their real-world applications. It involves analyzing economic issues, presenting arguments, and providing evidence to support ideas. 

The goal of an economics essay is to demonstrate an understanding of economic principles and the ability to critically evaluate economic topics.

Why Write an Economics Essay?

Writing an economics essay serves multiple purposes:

  • Demonstrate Understanding: Showcasing your comprehension of economic concepts and their practical applications.
  • Develop Critical Thinking: Cultivating analytical skills to evaluate economic issues from different perspectives.
  • Apply Theory to Real-World Contexts: Bridging the gap between economic theory and real-life scenarios.
  • Enhance Research and Analysis Skills: Improving abilities to gather and interpret economic data.
  • Prepare for Academic and Professional Pursuits: Building a foundation for success in future economics-related endeavors.

Order Essay

Paper Due? Why Suffer? That's our Job!

If you’re wondering, ‘how do I write an economics essay?’, consulting an example essay might be a good option for you. Here are some economics essay examples:

Short Essay About Economics

A Level Economics Essay Examples

Here is an essay on economics a level structure:

Band 6 Economics Essay Examples

Here are some downloadable economics essays:

Economics essay pdf

Economics essay introduction

Economics Extended Essay Examples

In an economics extended essay, students have the opportunity to delve into a specific economic topic of interest. They are required to conduct an in-depth analysis of this topic and compile a lengthy essay. 

Here are some potential economics extended essay question examples:

  • How does foreign direct investment impact economic growth in developing countries?
  • What are the factors influencing consumer behavior and their effects on market demand for sustainable products?
  • To what extent does government intervention in the form of minimum wage policies affect employment levels and income inequality?
  • What are the economic consequences of implementing a carbon tax to combat climate change?
  • How does globalization influence income distribution and the wage gap in developed economies?

IB Economics Extended Essay Examples 

IB Economics Extended Essay Examples

Economics Extended Essay Topic Examples

Extended Essay Research Question Examples Economics

Tips for Writing an Economics Essay

Writing an economics essay requires specific expertise and skills. So, it's important to have some tips up your sleeve to make sure your essay is of high quality:

  • Start with a Clear Thesis Statement: It defines your essay's focus and argument. This statement should be concise, to the point, and present the crux of your essay.
  • Conduct Research and Gather Data: Collect facts and figures from reliable sources such as academic journals, government reports, and reputable news outlets. Use this data to support your arguments and analysis and compile a literature review.
  • Use Economic Theories and Models: These help you to support your arguments and provide a framework for your analysis. Make sure to clearly explain these theories and models so that the reader can follow your reasoning.
  • Analyze the Micro and Macro Aspects: Consider all angles of the topic. This means examining how the issue affects individuals, businesses, and the economy as a whole.
  • Use Real-World Examples: Practical examples and case studies help to illustrate your points. This can make your arguments more relatable and understandable.
  • Consider the Policy Implications: Take into account the impacts of your analysis. What are the potential solutions to the problem you're examining? How might different policies affect the outcomes you're discussing?
  • Use Graphs and Charts: These help to illustrate your data and analysis. These visual aids can help make your arguments more compelling and easier to understand.
  • Proofread and Edit: Make sure to proofread your essay carefully for grammar and spelling errors. In economics, precision and accuracy are essential, so errors can undermine the credibility of your analysis.

These tips can help make your essay writing journey a breeze. Tailor them to your topic to make sure you end with a well-researched and accurate economics essay.

To wrap it up , writing an economics essay requires a combination of solid research, analytical thinking, and effective communication. 

You can craft a compelling piece of work by taking our examples as a guide and following the tips.

However, if you are still questioning "how do I write an economics essay?", it's time to get professional help from the best essay writing service -  CollegeEssay.org.

Our economics essay writing service is always ready to help students like you. Our experienced economics essay writers are dedicated to delivering high-quality, custom-written essays that are 100% plagiarism free.

Also try out our AI essay writer and get your quality economics essay now!

Barbara P (Literature)

Barbara is a highly educated and qualified author with a Ph.D. in public health from an Ivy League university. She has spent a significant amount of time working in the medical field, conducting a thorough study on a variety of health issues. Her work has been published in several major publications.

Paper Due? Why Suffer? That’s our Job!

Get Help

  • Privacy Policy
  • Cookies Policy
  • Terms of Use
  • Refunds & Cancellations
  • Our Writers
  • Success Stories
  • Our Guarantees
  • Affiliate Program
  • Referral Program
  • AI Essay Writer

Disclaimer: All client orders are completed by our team of highly qualified human writers. The essays and papers provided by us are not to be used for submission but rather as learning models only.

economics essay plan

economics essay plan

  • Business & Money

Amazon prime logo

Enjoy fast, free delivery, exclusive deals, and award-winning movies & TV shows with Prime Try Prime and start saving today with fast, free delivery

Amazon Prime includes:

Fast, FREE Delivery is available to Prime members. To join, select "Try Amazon Prime and start saving today with Fast, FREE Delivery" below the Add to Cart button.

  • Cardmembers earn 5% Back at Amazon.com with a Prime Credit Card.
  • Unlimited Free Two-Day Delivery
  • Streaming of thousands of movies and TV shows with limited ads on Prime Video.
  • A Kindle book to borrow for free each month - with no due dates
  • Listen to over 2 million songs and hundreds of playlists
  • Unlimited photo storage with anywhere access

Important:  Your credit card will NOT be charged when you start your free trial or if you cancel during the trial period. If you're happy with Amazon Prime, do nothing. At the end of the free trial, your membership will automatically upgrade to a monthly membership.

Buy new: $65.00 $65.00 FREE delivery: March 17 - 19 Ships from: Amazon.com Sold by: Amazon.com

  • Free returns are available for the shipping address you chose. You can return the item for any reason in new and unused condition: no shipping charges
  • Learn more about free returns.
  • Go to your orders and start the return
  • Select the return method

Buy used: $11.81

Kindle app logo image

Download the free Kindle app and start reading Kindle books instantly on your smartphone, tablet, or computer - no Kindle device required .

Read instantly on your browser with Kindle for Web.

Using your mobile phone camera - scan the code below and download the Kindle app.

QR code to download the Kindle App

Image Unavailable

100 Essay Plans for Economics

  • To view this video download Flash Player

Follow the author

Ernie Jowsey

100 Essay Plans for Economics Reprint Edition

Purchase options and add-ons.

  • ISBN-10 019877592X
  • ISBN-13 978-0198775928
  • Edition Reprint
  • Publisher OUP Oxford
  • Publication date March 12, 1998
  • Language English
  • Dimensions 9.69 x 7.44 x 0.57 inches
  • Print length 272 pages
  • See all details

Books with Buzz

Editorial Reviews

About the author, product details.

  • Publisher ‏ : ‎ OUP Oxford; Reprint edition (March 12, 1998)
  • Language ‏ : ‎ English
  • Paperback ‏ : ‎ 272 pages
  • ISBN-10 ‏ : ‎ 019877592X
  • ISBN-13 ‏ : ‎ 978-0198775928
  • Item Weight ‏ : ‎ 1.1 pounds
  • Dimensions ‏ : ‎ 9.69 x 7.44 x 0.57 inches
  • #30,054 in Economics (Books)
  • #603,719 in Unknown

Important information

To report an issue with this product or seller, click here .

About the author

economics essay plan

Ernie Jowsey

Discover more of the author’s books, see similar authors, read author blogs and more

Customer reviews

Customer Reviews, including Product Star Ratings help customers to learn more about the product and decide whether it is the right product for them.

To calculate the overall star rating and percentage breakdown by star, we don’t use a simple average. Instead, our system considers things like how recent a review is and if the reviewer bought the item on Amazon. It also analyzed reviews to verify trustworthiness.

  • Sort reviews by Top reviews Most recent Top reviews

Top reviews from the United States

Top reviews from other countries.

economics essay plan

  • Amazon Newsletter
  • About Amazon
  • Accessibility
  • Sustainability
  • Press Center
  • Investor Relations
  • Amazon Devices
  • Amazon Science
  • Start Selling with Amazon
  • Sell apps on Amazon
  • Supply to Amazon
  • Protect & Build Your Brand
  • Become an Affiliate
  • Become a Delivery Driver
  • Start a Package Delivery Business
  • Advertise Your Products
  • Self-Publish with Us
  • Host an Amazon Hub
  • › See More Ways to Make Money
  • Amazon Visa
  • Amazon Store Card
  • Amazon Secured Card
  • Amazon Business Card
  • Shop with Points
  • Credit Card Marketplace
  • Reload Your Balance
  • Amazon Currency Converter
  • Your Account
  • Your Orders
  • Shipping Rates & Policies
  • Amazon Prime
  • Returns & Replacements
  • Manage Your Content and Devices
  • Recalls and Product Safety Alerts
  • Conditions of Use
  • Privacy Notice
  • Your Ads Privacy Choices

Economics Essays Plans (Topic 1-4)

DOWNLOAD THE RESOURCE

Resource Description

ECONOMICS ESSAYS

DEFINITIONS  

OUTLINE BODY PARAGRAPHS

LINK TO THESIS

HISTORICAL > STATS

CURRENT > STATS

LINK TO QUESTION

TOPIC SENTENCE

DEFINITIONS + FORMULAS

CAUSE/EFFECT OR ADVANTAGES/DISADVANTAGES

CURRENT TRENDS + FUTURE TRENDS

SUMMARY OF ARGUMENTS

FUTURE TRENDS

FINAL ARGUMENT/THESIS

ESSAYS FOR ELSIE

ESSAYS FOR ELLA

Report a problem

Popular HSC Resources

  • Speech on George Orwell ‘1984’ – Human Experiences
  • How To Survive the HSC
  • One Night the Moon – Analysis (Video)
  • 2020 – Physics – PHS (Trial Paper)
  • Business Studies Influences on HR (Quiz)
  • Sci Ext – Portfolio Pack
  • 2020 – Science Ext – Exam Choice (Trial Paper)
  • Domino’s Marketing Case Study

Become a Hero

Easily become a resource hero by simply helping out HSC students. Just by donating your resources to our library!

What are you waiting for, lets Ace the HSC together!

Join our Email List

No account needed.

Get the latest HSC updates.

All you need is an email address.

pixel

  • International
  • Schools directory
  • Resources Jobs Schools directory News Search

A Level Economics essay plans

A Level Economics essay plans

Geographyeconomics

Last updated

1 August 2020

  • Share through email
  • Share through twitter
  • Share through linkedin
  • Share through facebook
  • Share through pinterest

Resources included (11)

Monetary policy- A Level Economics

Monetary policy- A Level Economics

Fiscal policy and financial markets- A Level Economics

Fiscal policy and financial markets- A Level Economics

Measuring macroeconomic performance- A Level Economics

Measuring macroeconomic performance- A Level Economics

How the macroeconomy works- A Level Economics

How the macroeconomy works- A Level Economics

Economic performance- A Level Economics

Economic performance- A Level Economics

Poverty and inequality- A Level Economics

Poverty and inequality- A Level Economics

Market failure and government intervention- A Level Economics

Market failure and government intervention- A Level Economics

Price determination - A Level Economics

Price determination - A Level Economics

Market structures- A Level Economics

Market structures- A Level Economics

Production, costs and revenue- A Level Economics

Production, costs and revenue- A Level Economics

The labour market- A Level Economics

The labour market- A Level Economics

Over 125 pages of essay plans on the following A Level Economics topics:

  • Price determination in a competitive market
  • Production, costs and revenue
  • Market structures (perfect competition, imperfectly competitive markets and monopoly)
  • The labour market
  • The distribution of income and wealth: poverty and inequality
  • The market mechanism, market failure and government intervention in markets
  • How the macroeconomy works : the circular flow of income, AD/AS analysis, and related concepts
  • Economic performance
  • Fiscal policy and financial markets
  • Monetary policy

Written specifically for AQA but suitable for any exam board.

Tes paid licence How can I reuse this?

Your rating is required to reflect your happiness.

It's good to leave some feedback.

Something went wrong, please try again later.

This resource hasn't been reviewed yet

To ensure quality for our reviews, only customers who have purchased this resource can review it

Report this resource to let us know if it violates our terms and conditions. Our customer service team will review your report and will be in touch.

Not quite what you were looking for? Search by keyword to find the right resource:

  • Economic Essays Grade 12

Grade 12 Economic Essays for the Next Three-Year Cycle (2021-2023)

  • Discuss in detail the markets within the FOUR-SECTOR model (Circular Flow)

Discuss in detail 'The new economic paradigm'/Explain the 'smoothing of cycles (Business Cycles)

Discuss in detail the features underpinning forecasting (Business Cycles)

Discuss in detail the main objectives of the public sector in the economy (Public Sector)

Discuss in detail the reason(s) for public sector failure (link them to typical problems experienced through public sector provisioning) (Public Sector)

Discuss in detail the reasons for international trade (Foreign Exchange Markets)

  • Discuss in detail export promotion (Protectionism and FreeTrade)

Discuss in detail the arguments in favour of protectionism (Protectionism and Free Trade)

Discuss in detail the demand-side approach in promoting growth and development in South Africa (Growth and development)

Discuss in detail the following South African growth and development policies and strategic initiatives (Growth and development)

Discuss in detail South Africa's initiaties (endeavours) in regional development (Industrial Development Policies)

Discuss in detail the following economic indicators (Economic and Social Performance Indicators

Discuss in detail the following social indicators (Economic and Social Performance Indicators)

Discuss in detail the various equilibrium positions with the aid of graphs-PERFECT MARKET (Perfect Market)

  • Discuss the monopoly in detail (with/without the aid of graphs) (Imperfect Market)

Examine the oligopoly in detail (Imperfect Market)

  • Compare and contrast any TWO types of market structures  

Discuss in detail how the following factors lead to the misallocation of resources in the market (Market Failures)

Discuss in detail state intervention as a consequence of market failures, with the aid of relevant graphs (Market Failures)

Discuss in detail the consequences of inflation (Inflation)

Discuss in detail the measures to combat demand-pull and/or cost-push inflation (Inflation)

Examine in detail the effects of tourism (Tourism)

Examine in detail the benefits of tourism (Tourism)

Discuss in detail how the government can ensure sustainable development (Environmental Sustainability)

  • Discuss in detail the following problems and the international measures taken to ensure sustainable development (Environmental Sustainability)

ESSAYS FOR THE NEXT THREE-YEAR CYCLE (2021-2023)

Macroeconomics- paper1.

Discuss in detail the markets within the FOUR-SECTOR model (Circular Flow) INTRODUCTION The economy of a country is regarded as an open economy because of the presence of households, producers, government, foreign sector and financial sector as active participants in the economy. Markets link the participants in the economy 🗸🗸 [Max 2]

BODY: MAIN PART PRODUCT / GOODS/ OUTPUT MARKET🗸

  • These are the markets for consumer goods and services🗸🗸
  • Goods are defined as tangible items, like food, clothes, cars, etc. that satisfies some human wants or needs🗸🗸
  • Buying and selling of goods that are produced in markets e.g. 🗸🗸
  • Capital Goods market for trading of buildings and machinery🗸🗸
  • Consumer goods market for trading of durable consumer goods, semi-durable consumer goods and non-durable consumer goods. 🗸🗸
  • Services are defined as non-tangible actions and include wholesale and retail, transport and financial markets. 🗸🗸

FACTOR / RESOURCE/ INPUT MARKETS🗸

  • Households sell factors of production on the markets: rent for natural resources, wages for labour interest for capital and profit for entrepreneurship🗸🗸
  • The factor market includes the labour, property and financial markets. 🗸🗸
  • The market where services of factors of production are traded e.g. labour is hired and capital is borrowed – these services earn wages, interest, rent and profits🗸🗸

FINANCIAL MARKETS🗸

  • They are not directly involved in the production of good and services, but act as a link between households , the business sector and other participants with surplus finds🗸🗸
  • E.g. banks, insurance companies and pension funds🗸

MONEY MARKETS🗸

  • In the money markets short term loans, and very short term funds are saved and borrowed by consumers and business enterprises 🗸🗸
  • Products sold in the market are bank debentures, treasury bills and government bonds 🗸🗸
  • The simplest form exists when parties make demand and short-term deposits and borrow on short term 🗸🗸
  • The SARB is the key institution in the money market🗸🗸

CAPITAL MARKETS🗸

  • In the capital markets long term funds are borrowed and saved by consumers and the business sector🗸🗸
  • The Johannesburg Security Exchange (JSE) is a key institution in the capital 🗸🗸
  • Products sold in this market are mortgage bonds and shares🗸🗸

FOREIGN EXCHANGE MARKETS🗸

  • On the foreign exchange markets businesses buy/ sell foreign currency to pay for imported goods and services🗸🗸
  • These transactions occur in banks and consists of electronic money transfers from one account to another🗸🗸
  • The leading centres/ most important foreign exchange markets are in London, New York and Tokyo 🗸🗸
  • e.g. traveller’s cheques to travel abroad🗸
  • Flows of private and public goods and services are real flows and they are accompanied by counter flows of expenditure and taxes on the product market🗸🗸
  • Factor services are real flows and they are accompanied by counter flows of income on the factor market🗸🗸
  • Imports and exports are real flows and are accompanied by counter flows of expenditure and revenue on the foreign exchange market🗸🗸[Max 26]
  • A change in investment of R 10m will result in a change in income of R 20m🗸🗸
  • An increase in investment causes the expenditure function to shift upwards from C1 to C2 so that C1 is parallel to C2🗸🗸
  • The effect of the increase in investment is that the total expenditure will increase from R 20m to R 30m🗸🗸
  • The increase in the value of output (Y) is greater than the increase in the expenditure (E) 🗸🗸 (Explanation must comply with the figures supplied in the graphical presentation) [Max 4] [Max 10]

CONCLUSION The circular flow ensures continued interdependence and coordination of the economic activities in the economy / markets are critically important institutions in our economic system, because they regulate the supply and demand and safeguard price stability and general business confidence. 🗸🗸 [Any other relevant conclusion] [Max 2]

INTRODUCTION The new economic paradigm in terms of the smoothing of business cycles discourages monetary policy makers from using monetary and fiscal policies to fine tune the economy but rather encourages achieving stability through sound long term decisions relating to demand and supply in the economy/smoothing out the painful part of economic down-fall that is part of the market economy🗸🗸 (Accept other relevant definition/description of smoothing/new economic paradigm). [Max 2]

BODY: MAIN PART The new economic paradigm is embedded in the demand and supply side policies. 🗸🗸

Demand-side policies

  • It focuses on aggregate demand in the economy🗸🗸
  • When households, firms and the government spend more, demand in the economy increases. 🗸🗸
  • This makes the economy grow but lead to inflation.🗸🗸
  • Aggregate demand increases more quickly than aggregate supply and this causes price increases. 🗸🗸
  • If the supply does not react to the increase in demand, prices will increase. 🗸🗸
  • This will lead to inflation (a sustained and considerable in the general price level) 🗸🗸

Unemployment:

  • Demand-side policies are effective in stimulating economic growth. 🗸🗸
  • Economic growth can lead to an increase in demand for labour. 🗸🗸
  • As a result more people will be employed and unemployment will increase. 🗸🗸
  • As unemployment decreases inflation is likely to increase. 🗸🗸
  • This relationship between unemployment and inflation is illustrated in the Phillips curve. 🗸🗸
  • The PC curve shows the initial situation. A is the point of intersection of the PC curve with the x- axis. It shows the natural rate of unemployment, for instance 14%🗸🗸
  • At point A inflation rate is zero. 🗸🗸
  • If unemployment falls to C for instance, 8%, inflation caused by wage increases is at 6%.🗸🗸
  • If unemployment increases from C to B to A, inflation falls from 6% to 2% to 0%.🗸🗸

Supply-side policies Reduction of costs 🗸

  • Infrastructural services: reasonable charge and efficient transport, communication, water
  • services and energy supply. 🗸🗸
  • Administrative costs: these costs include inspection, reports on applications
  • of various laws, regulations and by-laws, tax returns and returns providing statistical
  • information.
  • It adds to costs and businesses carry a heavy burden 🗸🗸
  • Cash incentives: it includes subsidies for businesses to locate in neglected areas where unemployment is high and compensation to exporters for certain costs they
  • incurred in development of export markets. 🗸🗸

Improving the efficiency of inputs 🗸

  • Tax rates: low tax rates can serve as an incentive to workers. It will improve the productivity and output. 🗸🗸
  • Capital consumption: replacing capital goods regularly creates opportunities for businesses to keep up with technological development and better outputs🗸🗸
  • Human resource development: to improve the quality of manpower by improving health care, education and training. 🗸🗸
  • Free advisory service: these promote opportunities to export. 🗸🗸

Improving the efficiency of markets 🗸

  • Deregulation: removal of laws, regulations and by-laws and other forms of government controls makes the market free. 🗸🗸
  • Competition: encourages the establishment of new businesses 🗸🗸
  • Levelling the play field: private businesses cannot compete with public enterprises 🗸🗸 Answers must be in full sentences and well described with examples to be able to obtain 2 marks per fact. Learners should be awarded 1 mark per heading or sub-heading to a maximum of 8 marks. (8 x 1) (8) [Max 26]

Explanation: The above graph shows:

  • Aggregate demand (AD) and aggregate supply (AS) are in equilibrium at point C. 🗸🗸
  • If aggregate demand is stimulated so that it moves to AD1 and aggregate supply responds promptly and relocates at AS1; a larger real output becomes available without any price increases. 🗸🗸
  • Supply is often sticky and fixed in the short term. 🗸🗸
  • Therefore, if aggregate demand increases to AD1 and aggregate supply does not respond, intersection is at point F. Real production increases but so does the price, in other words, with more inflation. 🗸🗸
  • The aggregate demand locates at any position to the left of AS1 inflation prevails. 🗸🗸
  • The solution is to create conditions that ensure supply is more flexible. 🗸🗸
  • If the cost of increasing production is completely flexible, a great real output can be supplied at any given price level. 🗸🗸 [Max 10]

CONCLUSION It is clear from the discussion above that it is critically important to manage the aggregate supply and demand to ensure stability in the economy. 🗸🗸 [Accept any relevant higher order conclusion] [Max 2]

INTRODUCTION Accurate prediction is not possible in Economics. The best the economists can do is to try and forecast what might happen. There are a number of techniques available to help economists to forecast business cycles, e.g. economic indicators 🗸🗸 OR Successive periods of contraction and expansion of economic activities 🗸🗸 [Accept any other relevant introduction] [Max 2]

BODY: MAIN PART Business cycle indicators Leading economic indicators 🗸

  • These are indicators that change before the economy changes / coincide with the reference turning point 🗸🗸
  • They give consumers, business leaders and policy makers a glimpse (advance warnings) of where the economy might be heading. 🗸🗸
  • Peak before a peak in aggregate economic activity is reached.
  • Most important type of indicator in helping economists to predict what the economy will be like in the future 🗸🗸
  • When these indicators rise, the level of economic activities will also rise in a few months' time/an upswing 🗸🗸
  • E.g. job advertising space/inventory/sales ratio🗸

Coincident economic indicators🗸

  • They move at the same time as the economy / if the turning point of a specific time series variable coincides with the reference turning point🗸🗸
  • It indicates the actual state of the economy🗸🗸
  • E.g. value of retail sales. 🗸
  • If the business cycle reaches a peak and then begins to decline, the value of retail sales will reach a peak and then begin to decline at same time🗸🗸

Lagging economic indicators🗸

  •  They do not change direction until after the business cycle has changed its direction🗸🗸
  • They serve to confirm the behaviour of co-incident indicators🗸🗸
  • E.g. the value of wholesalers' sales of machinery🗸
  • If the business cycle reaches a peak and begins to decline, we are able to predict the value of new machinery sold🗸🗸

Composite indicator🗸

  • It is a summary of the various indicators of the same type into a single value🗸🗸
  • Their values are consolidated into a single value , if this is done we find a value of a composite leading , coincident and lagging indicator🗸🗸 Accept ONE example from the table below:
  • This is the time that it takes for a business cycle to move through one complete cycle (measured from peak to peak) 🗸🗸
  • It is useful to know the length because the length tends to remain relatively constant over time.🗸🗸
  • If a business cycle has the length of 10 years it can be predicted that 10 years will pass between successive peaks or troughs in the economy. 🗸🗸
  • Longer cycles show strength. 🗸🗸
  • Cycles can overshoot. 🗸🗸

Ways to measure lengths:

  • Crisis to crisis 🗸🗸
  • Historical records 🗸🗸
  • Consensus on businesses experience 🗸🗸

Amplitude 🗸

  • It is the difference between the total output between a peak and a trough. 🗸🗸
  • It measures the distance of the oscillation of a variable from the trend line / It is the intensity (height) of the upswing and downswing (contraction and expansion) in economic activity 🗸🗸
  • A large amplitude during an upswing indicates strong underlying forces – which result in longer cycles 🗸🗸
  •  The larger the amplitude the more extreme the changes that may occur / extent of change 🗸🗸
  • E.g. During the upswing inflation may increase from 5% to 10%. (100% increase) 🗸🗸
  •  A trend is the movement of the economy in a general direction. 🗸🗸
  • It usually has a positive slope because the production capacity of the economy increases over time 🗸🗸
  • Also known as the long term growth potential of the economy. 🗸🗸
  • The diagram above illustrates an economy which is growing – thus an upward trend (positive slope) 🗸🗸
  • Trends are useful because they indicate the general direction in which the economy is moving – it indicates the rate of increase or decrease in the level of output🗸🗸

Extrapolation 🗸

  • Forecasters use past data e.g. trends and by assuming that this trend will continue, they make predictions about the future🗸🗸
  • Means to estimate something unknown from facts or information that are known 🗸🗸
  • if it becomes clear that the business cycle has passed through a trough and has entered a boom phase, forecasters might predict that the economy will grow in the months that follow 🗸🗸
  • It is also used to make economic predictions in other settings e.g. prediction of future share prices🗸🗸

Moving average 🗸

  • It is a statistical analytical tool that is used to analyse the changes that occur in a series of data over a certain period of time / repeatedly calculating a series of different average values along a time series to produce a smooth curve 🗸🗸
  • The moving average could be calculated for the past three months in order to smooth out any minor fluctuations 🗸🗸
  • It is calculated to iron out (minimize) small fluctuations and reveal long-term trends in the business cycle🗸🗸 Answers must be in full sentences and well described with examples to be able to obtain 2 marks per fact. Learners should be awarded 1 mark per 8 headings and examples. [8 x 1=8] [Max 26]

BODY: ADDITIONAL PART

  • An expansionary monetary policy is implemented when the economy is in recession in order to stimulate economic activities. 🗸🗸
  • Interest rates can be reduced to encourage spending. 🗸🗸
  • Households and firms can borrow more and spend more. 🗸🗸
  •  The increased spending increases the level of economic activity. 🗸🗸
  • Investment will increase and more factors of production will be employed. 🗸🗸
  • Higher levels of production, income and expenditure will be achieved. 🗸🗸
  • If the supply of goods and services does not increase in line with an increase in demand, inflation will increase. 🗸🗸
  • Inflation can be curbed by reducing money supply and availability of credit. 🗸🗸
  • To dampen demand at the peak the government will be able to reduce the money supply by increasing interest rates. 🗸🗸
  • Selling government bonds and securities (open market transactions) and reduce the supply of money in circulation. 🗸🗸
  • Increase the cash reserve requirements to manipulate money creation activities of banks. 🗸🗸
  • Persuade banks to decrease lending (moral suasion) 🗸🗸
  • To devaluate the exchange rate (exchange rate policy) 🗸🗸 [Max 10]

CONCLUSION It remain clear that business cycles must be clearly monitored through the indicators available, policy makers must act quickly by using monetary and fiscal instruments in order to prevent instability in the economy. 🗸🗸 [Accept any other relevant conclusion] [Max 2]

INTRODUCTION: The government provides goods and services that are under supplied by the market and therefore plays a major role in regulating economic activity and guiding and shaping the economy. 🗸🗸 [Max 2]

BODY: MAIN PART Objectives:

Economic growth 🗸

  • Refer to an increase in the production of goods and services 🗸🗸
  • Measured in terms of Real GDP 🗸🗸
  • For economic growth to occur, the economic growth rate must be higher than Population growth 🗸🗸
  • Growth and development in a country benefit its citizens because it often leads to a higher standard of living 🗸🗸

Full employment 🗸

  • It is when all the people who want to work, who are looking for a job must be able to get a job 🗸🗸
  • High levels of employment is the most important economic objective of the government 🗸🗸
  • The unemployment rate increased over the past few years 🗸🗸
  • Informal sector activities must be promoted because it is an area where employment increase 🗸🗸

Exchange rate stability 🗸

  • The economy must be manage effectively and effective Fiscal and monetary policy must be used to keep the exchange rate relatively stable 🗸🗸
  • Depreciation and Appreciation of the currency create uncertainties for producers and traders and should be limited. These uncertainties must be limited 🗸🗸
  • The SARB changed the Exchange rate from a Managed floating to a free floating exchange rate 🗸🗸

Price stability 🗸

  • Stable price causes better results in terms of job creation and economic growth 🗸🗸
  • The SARB inflation target is 3% - 6% and they are successful in keeping inflation within this target 🗸🗸
  • Interest Rates, based on the Repo Rate are the main instruments used in the stabilisation policy 🗸🗸
  • The stable budget deficit also has a stabilizing effect on the inflation rate 🗸🗸

Economic equity 🗸

  • Redistribution of income and wealth is essential 🗸🗸
  • South Africa uses a progressive income tax system – taxation on profits, taxation on wealth, capital gains tax and taxation on spending, are used to finance free services 🗸🗸
  • Free social services are basic education; primary health and to finance basic economic services 🗸🗸
  • E.g. Cash Grant to the poor, e.g. child grants and cash grants to vulnerable people, e.g. disability grants 🗸
  • Progressive taxation means that the higher income earners pay higher/more taxation 🗸🗸 [Max 26]
  • Learner responses can be positive or negative.
  • Follow the argument and see if the learner can produce enough evidence to support his/her answer.

Economic Growth:

  • SA targets 4–5% economic growth. Previously SA had a 5% growth rate 🗸🗸
  • In recent years the growth rate decreased steadily (presently below 3%) 🗸🗸

Full Employment:

  • Compared to foreign countries unemployment is very high. (Expanded – over 30%) 🗸🗸
  • Efforts by SA government to reduce these figures includes the GEAR strategy, focus on small business enterprises, Public Works Programme 🗸🗸

Exchange rate stability:

  • SA now operates on a free floating exchange rate system in line with international benchmarks 🗸🗸
  • Unfortunately our currency has lost its value, with a general trend of depreciation over the last few years 🗸🗸

Price stability:

  • For the past few years South Africa has managed to remain within the 3–6% target 🗸🗸
  • The current increase in the repo rate has put constraints on the inflation rate 🗸🗸

Economic equity:

  • Economic equity has improved (BEE, affirmative action, gender equity) and led to an improvement in economic equity 🗸🗸 [Any 5 x 2] [Max 10]

CONCLUSION: While some successes have been achieved by government, the fulfilling of some of the objectives are compromised by factors like lack of accountability, corruption, budgeting, nepotism and incompetence. 🗸🗸 [Any relevant conclusion] [Max 2]

INTRODUCTION The government responds to market failures by establishing and maintaining state owned enterprises to provide public goods and services 🗸🗸 [Any other relevant introduction] [Max 2]

BODY: MAIN PART

  • It is required to give an explanation of one's decisions, actions and expenditures over a period of time 🗸🗸
  • There are mechanisms for evaluating government's economic and financial performance 🗸🗸
  • That the desired quantities and quality of goods and services for which taxes are raised are delivered 🗸🗸
  • That monopolies, corruption, nepotism, incompetence and apathy does not occur 🗸🗸
  • Two important elements of accountability is participation and transparency🗸🗸
  • Ministerial responsibilities, i.e. the ministers of government departments are responsible for decisions and actions and expenditures 🗸🗸
  • Parliamentary questioning arises and members of the government departments have to respond 🗸🗸
  • The national treasury is responsible for treasury control 🗸🗸
  • The auditor-general reports annually in writing on each government department🗸🗸
  • Public goods are efficiently provided if Pareto efficiency is achieved 🗸🗸
  • That is if resources are allocated in such a way that no one can be made better off without making someone else worse off 🗸🗸
  • Bureaucracy the official rules and procedures. 🗸🗸/insensitivity to the needs of their clients 🗸🗸
  • Incompetence- the lack of skill or ability to do a task successfully🗸🗸/May have improper qualifications/or an attitude of apathy 🗸🗸
  • Corruption- the exploitation of a person's position for private gain /taking bribes, committing fraud, nepotism 🗸🗸
  • State-owned enterprises do not operate according to the forces of supply and demand 🗸🗸
  • It becomes thus very difficult for state-owned enterprises to assess needs and they are thus prone to under- or over-supplying public goods and services 🗸🗸
  • The census and other household surveys as well as local government structures provide this type of information 🗸🗸
  • Since resources are scarce, government must then decide which needs and whose needs are to be satisfied 🗸🗸
  • In the private sector houses are built according to the price that people are able and willing to pay 🗸🗸
  • In the public sector housing is regarded as a social responsibility and authorities supply them according to the needs of people 🗸🗸
  • In a market economy prices are determined by supply and demand 🗸🗸
  • The objectives of firms are to maximise their profits and they usually set prices to achieve this objective 🗸🗸
  • Government does not pursue the profit maximisation objective 🗸🗸
  • Government takes into account certain social, economic, political and environmental conditions as well as public opinion 🗸🗸
  • Free-of-charge services- this is met from taxes 🗸🗸 and applies to most community goods and collective goods 🗸🗸 (e.g.) defence, police whereby charges and toll fees are levied 🗸
  • User-charges 🗸 option to charge depends on technical reasons 🗸🗸 (e.g.) cost of providing a double lane road could be recovered by toll charges 🗸 Economic reasons 🗸 such as services like water and electricity 🗸 that have a zero price 🗸 political reasons 🗸 where income distribution is significantly unequal, administrative rationing according to need takes place 🗸🗸 (e.g.) public health and education 🗸
  • Direct and indirect subsidies direct subsidies are used to cover part of the costs 🗸🗸 (e.g.) urban bus service 🗸 and an indirect subsidy is used to write off accumulated losses or deficits 🗸🗸
  • Standing charges -called availability charges 🗸🗸 (e.g.) water and electricity 🗸 standing charges goes to meet fixed costs and the price per unit consumed covers variable costs 🗸🗸
  • Price discrimination - different users have different elastic ties of demand for a good 🗸🗸 (e.g.) commercial and manufacturing businesses pay higher rates than households and they pay on a sliding scale🗸🗸
  • State-owned enterprises that either render a service or when an existing enterprise is nationalised 🗸🗸
  • They focus on making a profit and maximizing cost at the expense of the needs of some groups 🗸🗸 (e.g.) Iscor 🗸 SABC, 🗸SAA, Spoornet 🗸
  • refers to the process whereby state-owned enterprises and state-owned assets are handed over or sold to private individuals 🗸🗸
  • cost of maintaining and managing state-owned enterprises are high which can lead to higher taxes and larger public debt 🗸🗸
  • State-owned enterprises are not run as efficiently as private enterprises 🗸🗸
  • Nationalisation is the process whereby the state takes control and ownership of privately owned assets and private enterprises 🗸🗸
  • It includes contracting of services, public-private partnerships, increasing competitiveness🗸🗸 [Max 26]

ADDITIONAL PART Possible problems in your community or elsewhere

  • Lack of drinking water due to burst pipes 🗸🗸
  • Lack of electricity due to lack of infrastructure (load shedding) 🗸🗸
  • Lack of schooling – no buildings available – lack of maintenance 🗸🗸
  • Lack of health services due to lack of staff, infrastructure, strikes 🗸🗸
  • Lack of adequate housing (RDP) 🗸🗸 [Max 10 marks - List of examples max 5 marks] [Accept any other relevant answer] 

CONCLUSION If the above problems are not dealt with timeously by government, government will continue to fail its people in terms of service delivery, seeing many protests occurring regularly 🗸🗸 [Any other relevant higher order conclusion] [Max 2]

INTRODUCTION International trade can be defined as the exchange of goods and services between countries globally. 🗸🗸 These trade agreements are negotiated by protocols and agreement due to the uneven distribution of natural resources globally. 🗸🗸

BODY-MAIN PART The main reasons for international trade.

Demand reasons The size of the population impacts demand.

  • If there is an increase in population growth, it causes an increase in demand, as more people’s needs must be satisfied. 🗸🗸
  • Local suppliers may not be able to satisfy this demand. 🗸🗸

The population’s income levels effect demand.

  • Changes in income cause a change in the demand for goods and services. 🗸🗸 • An increase in the per capita income of people in more disposable income that can be spent on local goods and services, some of which may then have to be imported. 🗸🗸

An increase in the wealth of the population leads to greater demand for goods.

  • People have access to loans and can spend more on luxury goods, many of which are produced in other countries. 🗸🗸

Preferences and tastes can play a part in the determining of prices,

  •  E.g. customers in Australia have a preference for a specific product which they do not produce and need to import and it will have a higher value than in other countries. 🗸🗸

The difference in consumption patterns is determined

  • By the level of economic development in the country, e.g. a poorly developed country will have a high demand for basic goods and services but a lower demand for luxury goods. 🗸🗸

Supply reasons Natural resources are not evenly distributed

  • Across all countries of the world. 🗸🗸
  • They vary from country to country and can only be exploited in places where these resources exist. 🗸🗸

Climatic conditions

  • Make it possible for some countries to produce certain goods at a lower price than other countries, e.g. Brazil is the biggest producer of coffee. 🗸🗸

Labour resources

  • Differ in quantity, quality and cost between countries. 🗸🗸
  • Some countries have highly skilled, well-paid workers with high productivity levels, e.g. Switzerland. 🗸🗸

Technological resources

  •  Are available in some countries that enable them to produce certain goods and services at a low unit cost, e.g. Japan. 🗸🗸

Specialisation in the production

  • Certain goods and services allows some countries to produce them at a lower cost than others, e.g. Japan produces electronic goods and sells these at a lower price. 🗸🗸

Capital allows developed countries

  • Enjoy an advantage over underdeveloped countries. 🗸🗸
  • Due to a lack of capital, some countries cannot produce all the goods they require themselves. 🗸🗸

ADDITIONAL PART

  • Buying and selling goods and services from other countries: 🗸🗸
  • The purchase of goods and services from abroad that leads to an outflow of currency from SA- Imports (M). 🗸🗸
  • The of goods and services to buyers from other countries leading to an inflow of currency to SA – Exports (X) 🗸🗸
  • Different factor endowments mean some countries can produce goods and services more efficiently than others- specialisation is therefore possible: 🗸🗸

Absolute Advantage:

  • Where one country can produce goods with fewer resources than other. 🗸🗸

Comparative Advantage:

  • Where one country can produce goods at a lower opportunity cost it sacrifices less resources in production. 🗸🗸

CONCLUSION International trade is important of countries to survive economically, as barriers to trade would disadvantage all countries, due to their interdependency globally. 🗸🗸 [Any other relevant higher order conclusion] [Max 2]

ECONOMIC PURSUITS-PAPER 1

Discuss in detail export promotion (Protectionism and Free Trade)

INTRODUCTION Export promotion refers to measures taken by governments increase production of goods and services that can be exported. The government provides incentives to encourage production 🗸🗸 [Max 2]

BODY: MAIN PART REASONS:

  • Export promotion measures lower cost of production which makes it easier to compete on the international market 🗸🗸
  • Achieve significant export-led economic growth🗸🗸
  • Export enlarges production capacity of country because more and larger manufacturing industries are established. 🗸🗸
  • The first step to export-led economic growth is to implement policies that encourage the establishment of industries to produce goods and services for export markets🗸🗸

METHODS: Exports are promoted through: Incentives🗸

  • Export incentives include information on export markets, research with regard to new markets, concessions on transport charges, export credit and export credit guarantees and publicity commending successful exporters🗸🗸
  • This will encourage manufacturers to export an increased volume of their production🗸🗸
  • Trade missions help to market SA products abroad🗸🗸and supply SA companies with information about potential markets 🗸🗸

Direct Subsidies🗸

  • Described as direct because it involves government expenditure. 🗸🗸
  • Include cash payments to exporters, refunds on import tariffs and employment subsidies.
  • The aim is to increase the competitiveness of exporting company🗸🗸 reduce cost of production🗸🗸and explore and establish overseas markets🗸🗸

Indirect subsidies

  • Regarded as indirect because it results in the government receiving less revenue🗸🗸 e.g. general tax rebates,
  • Tax concessions on profits earned from exports or on capital invested to produce export goods, refunding
  •  Of certain taxes e.g. custom duties on imported goods used in the manufacturing process🗸🗸
  • Allows companies to lower their prices and enables them to compete in international markets🗸🗸
  • Challenge for governments to design incentives and subsidies in such a way that prices of export goods can't be viewed as dumping prices🗸🗸

Trade neutrality 🗸

  • Can be achieved if incentives in favour of export production are introduced
  • Up to point that neutralises the impact of protectionist measures in place🗸🗸
  • E.g. subsidies equal to magnitude of import duties can be paid🗸

Export processing zones (EPZs) 🗸

  • Is free-trade enclave within a protected area –
  • Is fenced and controlled industrial park that falls outside
  • Domestic customs area, and usually located near harbour or airport 🗸🗸 NOTE : For the response with regard to the effectiveness of export promotion methods, a maximum of 5 marks can be allocated.
  • No limitations on size and scale since world market is very large🗸🗸
  • Cost and efficiency of production based on this and organised along lines of comparative advantage🗸🗸
  • Increased domestic production will expand exports to permit more imports and may result in backward linkage effects that stimulate domestic production in related industries🗸🗸
  • Exchange rates are realistic and there is no need for exchange control and quantitative restrictions🗸🗸
  • Value can be added to natural resources of the country 🗸🗸
  • Creates employment opportunities 🗸🗸
  • Increase in exports has positive effect on balance of payments 🗸🗸
  • Increase in production leads to lower domestic prices, which benefit local consumers🗸🗸

DISADVANTAGES

  • Real cost of production 🗸 subsidies and incentives reduce total cost of production which must be met from sales🗸🗸 real cost is thus concealed by subsidies🗸🗸products cannot compete in open market 🗸🗸
  • Lack of competition 🗸 businesses charge prices that are so low that they force competitors out of the market 🗸🗸
  • Increased tariffs and quotas 🗸can be against spirit of provisions of WTO🗸🗸overseas competitors retaliate with tariffs and quotas🗸🗸 goods are sold domestically below their real cost of production (export subsidies and dumping) 🗸🗸
  • Protection of labour-intensive industries 🗸 developed countries maintain high levels of effective protection for their industries that produce labour-intensive goods in which developing countries already have or can achieve comparative advantage 🗸🗸
  • Withdrawal of incentives often leads to closure of effected companies. 🗸🗸
  • Incentives often lead to inefficiencies in the production process, since companies don't have to do their best to compete🗸🗸
  • Can be seen as dumping 🗸🗸 [Max 26]

BODY: ADDITIONAL PART How successful is South Africa in protecting the local textile industry against foreign competition?

  • Not successful: 🗸 Many domestic textile manufacturers closed down due to unfair international competition 🗸🗸 Many wholesalers make use of suppliers from abroad 🗸🗸 e.g. Woolworths/Walmart🗸
  • Dumping still occurs – European manufacturers still dump clothing in Africa out of season at prices below cost 🗸🗸 Job losses due to a lack of protection in this industry 🗸🗸 [Accept any motivation relating to success indicators] [Max 10]

CONCLUSION South Africa's international trade policy facilitates globalisation thereby impacting positively on the balance of payment. 🗸🗸 [Accept any other relevant conclusion] [Max 2]

INTRODUCTION Protectionism refers to a deliberate policy on the part of the government to erect trade barriers, such as tariffs and quotas, in order to protect domestic industries against international competition. 🗸🗸 [Accept any other relevant definition] [Max 2]

BODY-MAIN PART Raising revenue for the government

  • Import tariffs raise revenue for the government. 🗸🗸
  • In smaller countries the tax base is often small due to low incomes of individuals and businesses. 🗸🗸
  • Low incomes do not provide much in the form of income taxes and therefore custom duties on imports is a significant source of income or revenue. 🗸🗸

Protecting the whole industrial base

  • Maintaining domestic employment. 🗸🗸
  • Countries with high unemployment are continuously pressured to stimulate employment creation and therefore resort to protectionism in order to stimulate industrialisation. 🗸🗸
  • It is thought that using protectionism the country’s citizens would purchase more domestic products and raise domestic employment. 🗸🗸
  • These measures on domestic employment creation at the expense of other countries, led to such measures as “beggar-my-neighbour” policies. 🗸🗸
  • Applying import policies is likely to reduce other countries ability to buy country’s exports and may provoke retaliation. 🗸🗸

Protecting workers

  • It is argued that imports from other countries with relatively low wages represent unfair competition and threaten the standard of living of the more highly paid workers of the local industries. 🗸🗸
  • Local industries would therefore be unable to compete because of higher wages pushing up the price levels of goods. 🗸🗸
  • Protection is thus necessary to prevent local wage levels from falling or even to prevent local businesses from closing down due to becoming unprofitable. 🗸🗸
  • Competition from low-wage countries may also reflect the fact that those countries have a comparative advantage in low-skilled labour-intensive industries. 🗸🗸

Diversifying the industrial base

  • Overtime countries need to develop diversified industries to prevent overspecialisation. 🗸🗸
  • A country relying too heavily on the export of one or a few products is very vulnerable. 🗸🗸
  • If a developing country’s employment and income is dependent on only one or two industries, there is the risk that world fluctuations in prices and demand and supply-side problems could results in significant fluctuations in domestic economic activity. 🗸🗸
  • Import restrictions may be imposed on a range of products in order to ensure that a number of domestic industries develop. 🗸🗸

Develop strategic industries

  • Some industries such as the iron-ore and steel, agriculture, (basic foodstuffs, such as maize), energy (fuels) and electronics (communication) among others, are regarded as strategic industries. 🗸🗸
  • Developing countries may feel that they need to develop these industries in order to become self-sufficient . 🗸🗸

Protecting specific industries Dumping

  • Foreign industries may engage in dumping because government subsidies permit them to sell at very low prices or because they are seeking to raise profits through price discrimination. 🗸🗸
  • The reason for selling products at lower prices may be to dispose of accumulate stocks Of the goods and as a result consumers in the importing country stand to benefit however,
  • Their long term objective may be to drive out domestic producers and gain control of the market and consumers
  • Are likely to lose out in the reduction in choice and higher prices that the exporters will be able to charge. 🗸🗸

Infant industries

  • Usually newly established and find it difficult to survive due to their average costs being higher than that of their well-established foreign competitors. 🗸🗸
  • However, if they are given protection in their early years they may be able to grow and Thereby take advantage lower their average costs and become competitive and at this point protection can be removed. 🗸🗸

Declining industries/sunset industries

  • Structural changes in the demand and supply of a good may severely hit an industry such industries should be permitted to go out of business gradually declining industries
  • Are likely to be industries that no longer have a comparative advantage and however, if they go out of business quickly there may be a sudden and large increase in unemployment. 🗸🗸
  • Protection may enable an industry to decline gradually thereby allowing time for resources including labour to move to other industries. 🗸🗸
  • Protecting domestic standards domestic regulations of food safety human rights and environmental standards have been increasingly acting as trade restrictions. 🗸🗸 [Accept any other relevant fact] [Max 26]

ADDITIONAL PART South Africa promotes exports through subsidies

Direct Subsidies

  • Strict screening measures should be put in place when companies apply for financial assistance. Government expenditure can provide direct financial support to domestic producers for their exports e.g. 🗸🗸
  • Cash grants offered to South African exhibitors to exhibit their products at exhibitions overseas. To explore new markets. 🗸🗸
  • Foreign trade missions to explore new markets imposition of tariffs on imports. 🗸🗸
  • Funds for the formation of formal export councils. 🗸🗸
  • Subsidies for training or employing personnel. 🗸🗸
  • Funds for the export market research. 🗸🗸
  • Product registration and foreign patent registrations. 🗸🗸
  • Government can refund companies certain taxes to promote exports.
  • These types of indirect subsidies are:
  • General tax rebates (Part of the cost of production can be subtracted from the tax that has been paid) 🗸🗸
  • Tax concessions on profits earned from exports or on capital invested to produce export goods. 🗸🗸
  • Refunds on import tariffs in the manufacturing process of exported goods companies often use custom duties are paid on these goods and the government refunds them. 🗸🗸 [Max 10]

CONCLUSION Most countries agree that protectionism is harmful to the economy if not well managed. Protectionism is needed especially where industries are young and need expansion or development. 🗸🗸 [Any other relevant higher order conclusion] [Max 2]

INTRODUCTION Economic growth is responsible for the overall growth of the economy, in order to enhance the well being of the economy as a whole. Whereas economic development would focus on the individual well being of the citizens of a country. [Any other relevant higher order conclusion] [Max 2]

BODY-MAIN PART Growth and Development A demand-side approach includes discretionary changes in monetary and fiscal policies with the aim of changing the level of aggregate demand. 🗸🗸

Monetary policy

  • Is driven by the South African Reserve Bank (SARB). 🗸🗸
  • It aims to stabilise prices by managing inflation. 🗸🗸

Fiscal policy

  • Is driven by the Department of Finance. 🗸🗸
  • It aims to facilitate government, political and economic objectives. 🗸🗸
  • A demand-side approach to economic growth and development does not only depend on fiscal and monetary policy. 🗸🗸
  • It is dependent on all components of aggregate demand, that is, C, I, X and G. 🗸🗸

South African approach

  • The South African approach uses both monetary and fiscal measures to influence aggregate demand in the economy. 🗸🗸
  • The South African Reserve Bank (SARB) as the central bank in South Africa formulates the monetary policy. 🗸🗸
  • They use the following instruments:

Interest rate changes

  • It is used to influence credit creation by making credit more expensive or cheaper. 🗸🗸
  • The exchange rate is stabilised by encouraging inflow or outflows. 🗸🗸

Open market transactions

  • To restrict credit the SARB sells securities. When banks buy these securities money flows from banks to the SARB. 🗸🗸
  • The banks have less money to lend and cannot extend as much credit as before. 🗸🗸
  • To encourage credit creation the SARB buys securities. Money flows into the banking system.🗸🗸

Moral suasion

  • The SARB consults with banks to act in a responsible manner based on the prevailing economic conditions. 🗸🗸

Cash Reserve Requirements

  • Banks are required to hold a certain minimum cash reserve in the central bank. 🗸🗸
  • Banks have a limited amount to give out as credit. 🗸🗸
  • South Africa’s fiscal policy is put into practice through the budgetary process. 🗸🗸
  • The main purpose of fiscal policy is to stimulate macroeconomic growth and employment, and ensure redistribution of wealth. 🗸🗸
  • The following instruments are used:

Progressive personal income tax

  • Higher income earners are taxed at higher tax rates. 🗸🗸
  • These taxes are used to finance social development. 🗸🗸
  • The poor benefit more than those with higher incomes. 🗸🗸

Wealth taxes

  • Properties are levied (taxed) according to their market values. 🗸🗸
  • Transfer duties are paid when properties are bought. 🗸🗸
  • Securities (shares and bonds) are taxed when traded. 🗸🗸
  • Capital gains tax is levied on gains on the sale of capital goods (e.g. properties, shares). 🗸🗸
  • Estate duties are paid on the estates of the deceased. 🗸🗸
  • These taxes are used to finance development expenditures which benefit the poor more  often. 🗸🗸

Cash benefits

  • Old age pensions, disability grants, child support and unemployment insurance are cash grants. These are also known as social security payments. 🗸🗸
  • Benefits in kind (natura benefits) 🗸🗸
  • These include the provision of healthcare, education, school meals, protection etc. 🗸🗸
  • When user fees are charged, poor or low income earners pay less or nothing. 🗸🗸
  • Limited quantities of free electricity and water are provided. 🗸🗸

Other redistribution

  • Public works programmes, e.g. the Strategic Integrated Projects (SIP) provides employment subsidies and other cash and financial benefits such as training, financing and export incentives.🗸🗸

Land restitution and land redistribution

  • Land restitution is the return of land to those that have lost it due to discriminatory laws in the  past. 🗸🗸
  • Land redistribution focuses on land for residential (town) and production (farm) for previously disadvantaged groups. 🗸🗸
  • The money for these programmes is provided in the main budget. 🗸🗸

Subsidies on properties

  • It helps people to acquire ownership of fixed residential properties. 🗸🗸
  • E.g. government’s housing subsidy scheme provides funding to all people earning less than  R3 500 per month🗸🗸

CONCLUSION The demand-side approach focuses on the expansion of the demand for goods and services produced in the economy. 🗸🗸 OR To ensure economic growth, there should be an adequate and growing demand for goods and services produced in the economy. 🗸🗸

[Any other relevant higher order conclusion] [Max 2]

INTRODUCTION Different growth and development strategies have been implemented in South Africa since 1994, each aimed at addressing particular needs at the time of introduction. 🗸🗸 [Any other relevant introduction] [Max 2]

BODY-MAIN PART The Reconstruction and Development Programme (RDP)

  • The RDP was an integrated, coherent socio-economic policy framework that was implemented directly after our first democratic elections in 1994. 🗸🗸
  • It seeked to mobilise all our people and our country’s resources toward the final eradication of apartheid and the building of a democratic, non-racial and non-sexist future. 🗸🗸

The RDP was based on six principles.

  • an integrated and sustainable programme. 🗸🗸
  • a people-driven process focusing on the needs of the population. 🗸🗸
  • peace and security for all, aimed at a non-violent society that respects all human rights. 🗸🗸
  • nation-building, focusing on the needs of all members of society. 🗸🗸
  • linking reconstruction and development. 🗸🗸
  • The RDP consisted of many proposals, strategies and policy programmes.
  • All of these could, however be grouped into five major policy programmes that were linked to each other.

The five key programmes were:

  • meeting basic needs. 🗸🗸
  • developing our human resources. 🗸🗸
  • building the economy. 🗸🗸
  • democratising the state and society. 🗸🗸
  • implementing the RDP. 🗸🗸

The Growth, Employment and Redistribution Programme (GEAR)

  • The GEAR built upon the strategic vision set out in the RDP, i.e. 🗸🗸
  • The importance of all the objectives of the RDP was reaffirmed but it recognized the implementation and macroeconomic problems that the government had been experiencing in implementing the RDP. 🗸🗸
  • The RDP placed much more emphasis on disciplined economic policy. 🗸🗸
  • While still recognizing that there were very serious needs that had to be addressed. 🗸🗸

The Accelerated and Shared Growth Initiative for South Africa Programme (AsgiSA).

  • AsgiSA resulted from government’s commitment to halve unemployment and poverty by 2014. 🗸🗸
  • The Joint Initiative on Priority Skills Acquisition (Jipsa) was established to address the scarce and critical skills needed to meet AsgiSA’s objectives. 🗸🗸

AsgiSA identified six important factors that prevented growth:

  • the relative volatility of the currency. 🗸🗸
  • the cost, efficiency and capacity of the national logistics system. 🗸🗸
  • shortages of suitably skilled labour, and the spatial distortions of apartheid affecting low-skilled labour costs. 🗸🗸
  • barriers to entry, limits to competition and limited new investment opportunities. 🗸🗸
  • the regulatory environment and the burden on small and medium enterprises (SME’s). 🗸🗸
  • AsgiSA was not intended to be a government programme. 🗸🗸
  • But rather a national initiative supported by all the key groups in the economy. 🗸🗸
  • Namely business, labour, entrepreneurs and government and semi-government departments and institutions. 🗸🗸

Joint Initiative on Priority Skills Acquisitions (JIPSA)

  • It is the skills development arm of ASGISA. Focus is on skills development, especially through the SETAS. 🗸🗸

Expanded Public Works Programme (EPWP)

  • It is a nationwide government intervention to create employment using labour-intensive methods, and to give people skills they can use to find jobs when their work in the EPWP is done. 🗸🗸

The New Growth Path (NGP)

  • The New Growth Path (NGP) was released in November 2011. 🗸🗸
  • This plan is designed to serve as a framework for economic policy, and to be the driver of the country’s job strategy. 🗸🗸

The New Growth Path therefore proposes certain strategies to ensure adequate demand:

  • Deepening the domestic and regional market by growing employment. 🗸🗸
  • Increasing incomes and undertaking other measures to equity and income distribution. 🗸🗸
  • Widening the market for South African goods and services through a stronger focus on exports to the region and other rapidly growing economies. 🗸🗸
  • On a macroeconomic level the NGP entails accommodating or looser monetary policy combined with stricter fiscal policy to limit inflationary pressures and enhance competitiveness. 🗸🗸
  • Government spending will be prioritised with the objective of long-term sustainable employment opportunities. 🗸🗸

The microeconomic measures to control inflationary pressures include the following:

  • A competition policy to supervise monopoly pricing on products and services. 🗸🗸
  • A review of administered prices to ensure that they do not increase above inflation without compelling reasons. 🗸🗸
  • Interventions in the case of rapidly rising prices of essential products and services such as private🗸🗸
  • Healthcare and basic food items. 🗸🗸
  • Active industrial policy. 🗸🗸
  • Rural development policy. 🗸🗸
  • Competition policy. 🗸🗸
  • Stepping up education and skills development. 🗸🗸
  • Enterprise development: promoting small business and entrepreneurship; eliminating unnecessary red tape. 🗸🗸
  • Broad-based Black Economic Empowerment (BBBEE). 🗸🗸
  • Labour practices. 🗸🗸
  • Technology policy. 🗸🗸
  • Developmental trade policies. 🗸🗸
  • Policies for African development. 🗸🗸 
  • The different growth and development strategies that have been implemented in South Africa since 1994. 🗸🗸
  • Have all contributed to making our country more prosperous and to address problems created by inequalities of the past. 🗸🗸
  • However, problems such as a low level of education, unemployment and unequal distribution of income persist. 🗸🗸
  • The current NGP is a comprehensive policy that is focused on addressing all of these problems. [Any other relevant higher order conclusion] [Max 2]

INTRODUCTION South Africa’s overall objective of Industrial Development Policy is to ensure international competitiveness in its nine provinces. OR Regional development is aimed at increasing the economic livelihood of specific areas or regions. OR Regional development attempts to limit the negative effects of economic activities in only a few areas. OR It attempts to promote the advantages of a more even regional development by using labour and other natural resources and infrastructure in neglected areas. [Accept any relevant introduction] [Max 2]

BODY-MAIN PART SPATIAL DEVELOPMENT INITIATIVES

  • SDI Programme attracts infrastructure and business investments to underdeveloped areas to create employment. 🗸🗸
  • Department of Trade and Industry is driving force behind industrial and spatial development. 🗸🗸
  • DTI plans together with central, provincial and local government, IDC, parastatals and research institutions. 🗸🗸
  • Industrial Development Policy Programme (Spatial Development) has 2 focus points spatial development initiative (SDI) and financial incentives. 🗸🗸
  • SDI refers to government’s initiative and economic development potential of certain specific spatial locations in SA. 🗸🗸

Key Objectives:

  • Stimulate economic activity in selected strategic locations. 🗸🗸
  • Generate economic growth and foster sustainable industrial development. 🗸🗸
  • Develop projects of infrastructure in certain areas and finance them through lending and private sector investment. 🗸🗸
  • Establish private-public partnerships (PPP’s). 🗸🗸

In areas with high poverty and unemployment, SDI focuses on:

  • High level support in areas where socio-economic conditions require concentrated government assistance. 🗸🗸
  • Where inherent economic potential exists. 🗸🗸
  • The approach is towards international competitiveness, regional cooperation and a more diversified ownership base. 🗸🗸

Some of the main focus points of the SDI Programme are:

  • Lubombo Corridor (agro-tourism, education, craft, commercial and agricultural sectors); 🗸🗸
  • KwaZulu-Natal (Ports of Durban and Richards Bay); 🗸🗸
  • West Coast SDI (fishing and industrial ports); 🗸🗸
  • Coast-2-Coast Corridor with agro-tourism. 🗸🗸
  • It also makes it possible for private sector businesses to take advantage of the economic potential of underdeveloped areas in private-public partnerships (PPP’s) 🗸🗸
  • In PPP a private business may provide the capital to build the factory and to buy raw materials and employ labour, while the government provides the capital for the infrastructure such as roads and water and electricity. 🗸🗸
  • The business benefits from profits and the government benefits from taxes, levies and employment opportunities. 🗸🗸

There are TWO types of PPP’s which are compensated differently: Unitary payments:

  • Private sector builds and runs a project (it performs the function on behalf of the public sector); the payment provides an acceptable return on the total investment (building cost, maintenance, operational expenses). 🗸🗸
  • Private sector constructs the project and then is given the right to change a toll fee (e.g. public road); 🗸🗸
  • The toll covers costs of construction, maintenance, operation. 🗸🗸
  • The above options can be combined: E.g. hospital (cost of building is an annual payment and a user fee is also charged). 🗸🗸
  • A track of land that forms a passageway allowing access from one area to another and particular advantages to mining, manufacturing and other businesses. 🗸🗸
  • Domestic Corridor: e.g. Lubombo, West Coast, Fish River. 🗸🗸
  • Corridors beyond the South African Borders (SADC) e.g. Maputo Development Corridor Mozambique. 🗸🗸
  • Reasons in support of South Africa’s regional integration in Southern Africa: have political and stable neighbours have important export markets and a future source of water and energy supplies integration may be a precondition for support from foreign investors, donors and multilateral institutions. 🗸🗸
  • A robust regional transport system and a solid infrastructure base hold the key to attracting investment into the SADC region – improving competitiveness and promoting trade. 🗸🗸

Advantages from Corridor development:

  • Greater levels of economic efficiency and productivity compact urban form corridor urban form. 🗸🗸
  • Corridor developments will often occur due to private investment. 🗸🗸
  • Intergration of land use and transport planning will lead to generally efficient integration. 🗸🗸
  • Efficient urbanisation leads to efficient use of land and promotion of an efficient transport system. 🗸🗸

INDUSTRIAL DEVELOPMENT ZONES (IDZ’s)

  • Geographically designed, purpose-built industrial sites providing services tailored for export- orientated industries. 🗸🗸
  • Physically enclosed and linked to an international port or airport. 🗸🗸
  • Specifically designed to attract new investment in export-driven industries. 🗸🗸
  • Falls outside domestic customs zones and able to import items free of customs and trade restrictions, add value and then export their goods. 🗸🗸
  • Development and management done by private sector. 🗸🗸
  • Government IDZ policy designed to boost exports and jobs. 🗸🗸
  • IDZ’s aim to encourage economic growth –attract foreign investment in industrial development – facilitate international competitiveness regarding manufacturing. 🗸🗸 [Max 26]

ADDITIONAL PART FINANCIAL INCENTIVES Small and Medium Enterprise Development Programme (SMEDP) • This incentive has provided a tax-free cash grant for investment in industries in

  • South Africa. 🗸🗸
  • E.g. manufacturing, agricultural, processing, aquaculture and tourism. 🗸🗸

Critical Infrastructure Fund Programme (CIF)

  • A tax-free cash grant incentive for projects has improved critical infrastructure in  South Africa. 🗸🗸
  • E.g. for installation, construction of infrastructure, payment of employees, materials directly consumed during installation. 🗸🗸

Duty Free Incentives (for businesses operating in the IDZ’s)

  • This has encouraged export-orientated manufacturing to increase their competitiveness 🗸🗸
  • And helped to promote foreign and local direct investment. 🗸🗸

Foreign Investment Grant (FIG)

  • This has assisted foreign investors to invest in new manufacturing businesses in SA. 🗸🗸
  • Benefited in terms of the cost of relocating new machinery and equipment from abroad. 🗸🗸

Strategic Investment Projects (SIP)

  • This has attracted investment from local and foreign entrepreneurs in manufacturing, computer, research and engineering sectors. 🗸🗸

Skills Support Programme (SIP)

  • This cash grant for skills development has encouraged greater investment 🗸🗸
  • In training in general and stimulated the development of new advanced skills. 🗸🗸

Black Businesses Supplier Development Programme (BBSDP)

  • This 80 % cash grant has provided black-owned enterprises with access to 🗸🗸
  • Training which has improved management of their enterprises. 🗸🗸

Special Economic Zones (SEZ)

  • It is an extention to the current financial incetives to further promoted regional development. 🗸🗸
  • The major incentive is a tax reduction of 15 % for businesses settling in this area. 🗸🗸
  • This does not mean that existing businesses in the IDZ can relocate to take advantage of this incentive. 🗸🗸
  • If a current business in the IDZ wants to expand they are allowed. 🗸🗸 [Max 10]

CONCLUSION From the above discussion it is clear that different initiatives form part of South Africa’s Regional Industrial Development Programme. [Max 2]

INTRODUCTION Economic indicators are used to evaluate the economic performance of an economic unit. This unit can be a company, an industry, a country or a region. Macro-economic indicators, measures the economic performance of a country as a whole. 🗸🗸

BODY-MAIN PART Such indicators can provide an indication of:

  • Changes taking place in a country. 🗸🗸
  • How a country compares to other countries. 🗸🗸

Inflation Rate

  • This is the general increase in the price level of goods and services in the economy over a certain period in time. E.g. one year. 🗸🗸
  • This is therefore an indicator of the health of the economy and it is monitored in two ways that is at the production wholesale level producer price level (PPI) and at the retail or consumer level consumer price index (CPI) 🗸🗸

The Consumer Price Index (CPI)

  • Shows the price increases of a representative (weighted) basket of goods and services that consumers buy. 🗸🗸
  • It is abbreviated as CPI this cover all the urban areas. 🗸🗸
  • It is an overall index and weights are obtained from expenditures of different income categories of households. 🗸🗸
  • It is the most comprehensive indicator measuring consumer inflation in the country. 🗸🗸
  • It shows changes in the general purchasing power of the rand and it is used for inflation targeting 🗸🗸
  • Is compiled by Stats SA and measures the change in the price level of a basket of consumer goods and services. 🗸🗸
  • The goods and services included in the basket are chosen to represent the goods and services purchased by an average household. 🗸🗸
  • This basket is adjusted from time to time as consumption patterns change. 🗸🗸
  • The inflation rate is the percentage change in the CPI from the previous year and can be calculated as follows:
  • Change in CPI x 100 🗸🗸        CPI

The Production Price Index (PPI)

  • Used to measure the price of goods that are produced domestically when they leave the factory year. 🗸🗸
  • The goods that are imported when they enter the country (at a port) and both of these are before consumers become involved. 🗸🗸
  • PPI consists of three baskets that are domestically manufactured outputs, e.g. changes in the PPI can be made monthly or quarterly or yearly. 🗸🗸
  • While changes in the imported products and exported commodities are given separately in the same report. 🗸🗸
  • PPI includes capital and intermediate goods but not services. 🗸🗸
  • It is based on a completely different type of a basket of items in the CPI. 🗸🗸
  • It measures the cost of production rather than the cost of living. 🗸🗸
  • It is used to predict consumer goods inflation (CPI) 🗸🗸
  • Which is also estimated and published on a monthly basis by Stats SA, is similar to the CPI, 🗸🗸
  • Except that it also includes the prices of raw materials and intermediary goods 🗸🗸 (i.e. goods that will be finished in the production process), excludes VAT and excludes  services. 🗸🗸
  • Manufactured goods included in the PPI are priced when they leave the factory, not when they are sold to consumers. 🗸🗸
  • Unlike the CPI, the PPI therefore cannot be related directly to consumers’ living standards. 🗸🗸
  • The PPI is nevertheless very useful in the analysis of inflation because it measures the cost of production. 🗸🗸
  • A significant change in the rate of increase in the PPI is usually an indication that the rate of increase in the CPI will also change a few months later. 🗸🗸

The GDP Deflator Is a ratio that indicates the relationship of the GDP at nominal prices to the GDP at real prices. GDP deflator = Normal GDP x 100 🗸🗸                            Real GDP 

Nominal GDP

  • Is the value of total gross domestic product measured at current prices. 🗸🗸
  • While the real GDP is the value of total gross domestic product measured at constant prices.🗸🗸
  • So, the GDP deflator includes changes in the prices of exports but not of imports. 🗸🗸
  • In a small open economy, like that of South Africa where both, imports and exports are significant in relation to the total size of the economy. 🗸🗸
  • The exclusion of import prices is an important shortcoming. 🗸🗸

Unemployment rate

  • In terms of economic development, employment is a very important indicator. 🗸🗸
  • Employment is, however, not very easy to measure as so many people are employed in the informal sector which is not recorded. 🗸🗸
  • The concept of underemployment is also important. 🗸🗸
  • This is when someone is employed in a position that requires less skill than their ability. 🗸🗸
  • For example when a qualified accountant works as a delivery person because he or she cannot find employment as an accountant. 🗸🗸
  • Someone may also be employed on a part-time basis but would prefer to work full time. 🗸🗸
  • A labour force survey is published quarterly by Stats SA. 🗸🗸
  • This publication contains information and statistics concerning a variety of issues related to the labour market, including the official unemployment rate. 🗸🗸
  • It is a comprehensive survey and provides information on changes in employment in different provinces and industries. 🗸🗸
  • Employment in the informal sector, and even reasons for changes in employment figures. 🗸🗸
  • The unemployment rate is a percentage of the total labour force. 🗸🗸
  • The total labour force includes all employed people and unemployed people who are looking for work. 🗸🗸
  • The unemployment rate is a lagging indicator, which means that it will only change a few periods after the trend in the economy has changed. 🗸🗸
  • For example if the economy starts growing at a faster pace. 🗸🗸
  • The unemployment rate will only react to the growth after two or three quarters. 🗸🗸

Interest rates

  • Interest rates are important indicators of future economic activity, as the interest rate level is usually an important determinant when economic decisions are being taken. 🗸🗸
  • Both the general interest rate level and the structure of interest rates are important indicators.🗸🗸
  • There are many interest rates in the economy. 🗸🗸
  • Some are short term rates, such as the repo rate, which is the interest rates at which South Africa banks borrow from the Reserve Bank to finance their liquidity deficit. 🗸🗸
  • The difference between the short term interest rates and long term interest rates: 🗸🗸
  • Is called the interest rate spread and the term structure of interest rates provides an indication of the interest rates levels on loans or investments of different maturities. 🗸🗸
  • Usually we can expect the interest rates level in a developing country to be higher than the interest rate in a developed economy. 🗸🗸
  • This is due to the higher risk attached to the developing economy. 🗸🗸
  • Factors such as political and economic uncertainty cause this higher risk. 🗸🗸
  • Developing economies also need to attract foreign investment to their country  to finance growth. 🗸🗸
  • Investors’ funds will move towards the highest yield and thereof. 🗸🗸
  • Developing countries cannot allow interest rates in their countries to become too low. 🗸🗸

Money Supply

  • The increase in the M3 money supply is an important economic indicator. 🗸🗸
  • If M, the money supply increases, this means that either (P) prices or Y (output) has to respond to the increase in M. 🗸🗸
  • Therefore, an increase in the money supply is an important indicator showing that output will increase. 🗸🗸
  • Whether this will translate to an increase in real production or the price level will depend on factors like production within the economy. 🗸🗸
  • In addition to economic growth the employment of people of working age (15 -64 years) is a majot economic objective. 🗸🗸
  • We need to know more than this; we need to know who the people are that need to be employed. 🗸🗸
  • The numbers are determined, not only by age, but also by people’s willingness to work. 🗸🗸

The Economically Active Population (EAP)

  • The EAP is also known as the labour force. 🗸🗸
  • It consists of people between the age of 15 and 64 who are willing to work for income in cash or in kind and includes: 🗸🗸
  • Workers in the formal sector- workers in the informal sector. 🗸🗸
  • Employers any one 🗸🗸
  • Self employed persons. 🗸🗸

Related Items

  • BBR or BSR - Economics Grade 12 Study Guides and Notes
  • SOUTH AFRICA'S ECONOMIC AND SOCIAL INDICATORS QUESTIONS AND ANSWERS
  • ENVIRONMENTAL SUSTAINABILITY QUESTIONS AND ANSWERS GRADE 12
  • TOURISM INFLATION QUESTIONS AND ANSWERS GRADE 12
  • INFLATION QUESTIONS AND ANSWERS GRADE 12
  • SOUTH AFRICA'S INDUSTRIAL POLICIES AND THEIR SUITABILITY IN TERMS OF INTERNATIONAL BEST PRACTICE QUESTIONS AND ANSWERS GRADE 12
  • ECONOMIC GROWTH AND DEVELOPMENT QUESTIONS AND ANSWERS GRADE 12
  • THE REASONS AND CONSEQUENCES OF MARKET FAILURES QUESTIONS AND ANSWERS GRADE 12
  • THE DYNAMICS OF IMPERFECT MARKETS QUESTIONS AND ANSWERS GRADE 12

Unemployed Persons

  • The 2021 estimate of the South African population was million people. 🗸🗸
  • The EAP numbered million ( % of the population). 🗸🗸

The Employment Rate

  • The number of employed persons expressed as a percentage of the EAP gives the employment rate. 🗸🗸
  • The employment rate can also be converted into an index. 🗸🗸
  • The SA employment rate was % in 2011. 🗸🗸
  • This is low, compared to rates in developed and even some developing countries such as Argentina and Pakistan. 🗸🗸
  •  In SA the growth in the economy is not accompanied by the similar growth in employment numbers. 🗸🗸

Employment indicators are used for:

  • To calculate trends in employment in different sectors or industries. 🗸🗸
  • This indicates structural changes in the economy. 🗸🗸
  • To calculate productivity. 🗸🗸
  • To show the success of the economy in utilizing its full potential. 🗸🗸

Unemployment Rate

  • Statistics SA (SSA) obtains its labour data each year from Quarterly Labour Surveys  (QLFS). 🗸🗸
  • It uses the standard definition of the International Labour Office (ILO) to calculate unemployment. 🗸🗸
  • The strict definition of unemployment is used to calculate the unemployment rate. 🗸🗸
  • Did not work during the seven days prior to the interview. 🗸🗸
  • Want to work and are available to start work within a week of the week of the interview. 🗸🗸
  • Have taken active steps to look for work or to start some form of self-employment in four week prior to the interview. 🗸🗸
  • In SA the official unemployment rate was % in 2021. 🗸🗸
  • In developed countries, change in the unemployment rate trigger responses. 🗸🗸
  • From governments to fine-tune the economy. 🗸🗸
  • Increases require more funds for unemployment insurance (UIF) drawings. 🗸🗸
  • In developing countries, unemployment is the most important cause of poverty. 🗸🗸 [Accept current statistical data] [Max 16]
  • To give a policy direction in the country. 🗸🗸
  • To develop mechanism to caution the most affected sectors of the economy promptly
  • e.g.during the 2019-2020 recession/pandemic some companies required a bail out from the government. 🗸🗸
  • Develop some economic stabilisers to defuse the huge impact that may result from the unexpected economic downturn. 🗸🗸
  • Open some other alternative markets for their goods and services. 🗸🗸
  • To do research and advice the business community before the actual moment hits. 🗸🗸
  • It can be used to stimulate thinking and growth in a number of sectors in the Economy. 🗸🗸 [Accept any relevant consideration] [Max 10]

CONCLUSION Countries cannot survive and grow their economies if they do not pay attention to economic indicators for their planning processes. [Accept any relevant consideration] [Max 2]

INTRODUCTION Social indicators also called human development indicators as they promote improvement in the standard of living. 🗸🗸 [Any other relevant definition] [Max 2]

BODY-MAIN PART Demographics

  • This is the description of the physical population and its composition.
  • To get this a census is done regularly to obtain this information. 🗸🗸

Human development Index (HDI)

  •  This is a measure of people’s ability to live long and healthy lives, to communicate, 🗸🗸
  •  To participate in the community and to have sufficient income to experience a decent lifestyle. 🗸🗸

Human poverty index (HPI)

  •  It measures life expectancy is measured by the percentage of newborns not expected to survive to age 40. 🗸🗸
  •  Lack of education is measured by the percentage of adults who are ill- educated. 🗸🗸

Health and nutrition

  • Life expectancy birth. 🗸🗸
  • Infant mortality rate. 🗸🗸

Nutrition indicators

  • Daily calorie intake per person. 🗸🗸
  • The number of children who go hungry. 🗸🗸
  • These measures are important to government as they are supplying healthcare and sometime have to include legislation such as adding vitamin A to basic foodstuffs such as bread. 🗸🗸
  • The standard of living of people is directly connected to their education. 🗸🗸
  • Educated people are employable and can earn an income and provide for their own wants and needs. 🗸🗸

Two important measures are:

  • Secondary enrolment percemtage-how many children that start Grade 1 get to Grade 8 and finish Grade 12. 🗸🗸
  • Adult literacy- People over the age of 15 that can read and write. 🗸🗸
  • A large percentage of the annual budget is allocated to education. 🗸🗸
  • Because of our constitution certain basic services must be supplied by the government. 🗸🗸
  • These services have a direct effect on people’s living standards. 🗸🗸
  • Electricity 🗸🗸
  • Refuse disposal🗸🗸
  • Water supply🗸🗸
  • Sanitation🗸🗸

Housing and urbanisation

  • Urbanisation the process by which an increasing proportion of a country’s population is concentrated in its urban areas as a result of natural increase and migration from rural areas. 🗸🗸
  • This measures is important as more people come to live in urban areas the greater the demand for housing, services, education, health care etc. 🗸🗸
  • Housing the percentage of the population living in a permanent dwelling or house. 🗸🗸
  • The government issue housing subsidies to help poor people to own a house South African citizens or permanent residents earning R3 500 or less a month could apply for this subsidy. 🗸🗸

International comparisons

  • Figures collected by the World Bank, International Monetary Fund (IMF) and United Nations provide the best data for comparison purpose. 🗸🗸

Other measures used:

  • Purchasing power parity (PPP) The number of units of one country’s currency that give the holder the same purchasing power as one unit of another country’s currency. 🗸🗸
  • The Big Mac Index, The index is based on the price of the Big Mac around the world as compared to its price in the United States. 🗸🗸 [Max 40]

CONCLUSION From the above discussion it is clear that social indicators play a significant role in South Africa. It is, therefore, of the utmost importance that we should study their uses in depth. [Max 2]

MICROECONOMICS-PAPER 2

INTRODUCTION A perfect market is a market structure which has a large number of buyers and sellers.  OR The market price is determined by the industry (demand and supply curves).  OR This means that individual businesses are price takers, i.e. they are not able to influence prices. OR Perfect competition is an imaginary situation, whereas monopolistic competition is a reality. 🗸🗸 [Accept any other relevant introduction] [Max 2] 

BODY-MAIN PART

  • The indicating of the equilibrium positions on the perfect market structure is of utmost importance because from this point where MC = MR
  • The dotted lines will be drawn to show economic profit or economics loss. 
  • Where the dotted lines intersect the AC and AR curves either normal profit or economic profit or economic loss will be indicated and shadowed.

Mark allocation for graph:

  • Position / shape of MC curve = 1 mark
  • MR curve = 1 mark
  • Position / shape of AC curve = 2 marks
  • Equilibrium point = 1 mark
  • Indication of price / quantity = 1 mark
  • Shading of economic loss = 2 marks MAX MARKS = (8)

Allocate marks on the graph according to the rubric provided and if facts are duplicated again in writing, do not allocate marks. Max of 8 marks.

  • Equilibrium is at E 1 i.e. where MC = MR 
  • At this point Q 1 goods are produced at a price of P 1  
  • The averages cost for Q 1 units is point R on the AC curve 
  • Price / AR is greater than AC ( TR > TC)
  • Therefore economic profit is represented by the area P 1 SRE 1  
  • Equilibrium is at E 1 i.e. where MC = MR
  • At equilibrium (point E 1 ) average cost is equal to price 
  • The AC curve is tangent to the demand curve which means that P/AR = AC (TR = TC) 
  • The business makes normal profit which is the minimum earnings required to prevent the entrepreneur from leaving the industry. 
  • Equilibrium is at E1, i.e. where MC = MR 
  • At this point Q1 goods are produced at a price of P1 
  • At equilibrium (point E1) price/AR is less than average cost/the AC curve is lies above the demand curve which means that P/AR < AC (TR < TC) 
  • The business makes an economic loss A maximum of 24 marks will be allocated for graph illustration and analysis: 8 marks max per graph illustration - (Max 26 marks)

ADDITIONAL PART CONDITIONS For a market to successfully operate under perfect competition, the following conditions should prevail at the same time:

  • No firm can influence the market price (price takers) due to a large number of buyers and sellers 
  • Products are identical (homogeneous) 
  • There are no barriers of entry, meaning that there is freedom of entry and exit 
  • Buyers and sellers act independently - no collusion between sellers 
  • No government interference to influence the market – the market is unregulated 
  • Free movement between markets - all factors of production are completely mobile 
  • Both buyers and sellers have full knowledge of all the prevailing market conditions (perfect information) 
  • If any of the above conditions are not met, the market is regarded as an imperfect market Any 5 x 2 = [Max 10 marks]

CONCLUSION Freedom of entry and exit into the perfect market alter the supply of goods on the market. This will result in changes in price which influences the profit or loss of a business.  If price falls to a level where it is equal to the AVC then the firm will shut-down.  [Max 2] Discuss the monopoly in detail (with/without the aid of graphs) (Imperfect Market)

INTRODUCTION A firm is regarded as a monopolist when it owns or controls the total supply of a scarce factor of production. Monopoly is a market structure where only one seller operates. 🗸🗸

BODY: MAIN PART The characteristics of a monopoly

Number of firms

  • The monopoly consists out of one single firm. 🗸🗸
  • The monopoly is also the industry. 🗸🗸
  • Example: Eskom or De Beers – diamond-selling 🗸🗸 [Accept any other relevant example]

Nature of product

  • The product is unique with no close substitute. 🗸🗸
  • Example: Diamonds are unique. 🗸🗸

Market entry

  • Refers to how easy or difficult it is for businesses to enter or to leave the market 🗸🗸
  • Is entirely/completely blocked. 🗸🗸
  • Economies of scale 🗸🗸
  • Limited size of the market 🗸🗸
  • Exclusive ownership of raw materials 🗸🗸
  • Licensing 🗸🗸
  • Sole rights 🗸🗸
  • Import restrictions 🗸🗸

They decide on their production level

  • The monopolist cannot set the level of output and the price independently of each other. 🗸🗸
  • If a monopolist wants to charge a higher price, it has to sell fewer units of goods. 🗸🗸 Alternatively, a reduction in price will result in a higher output sold. 🗸🗸
  • A monopolist is confronted with a normal market demand curve 🗸🗸
  • The demand curve slopes downwards from left to right 🗸🗸
  • Any point on the monopolist’s demand curve (D) is an indication of the quantity of the product that can be sold and the price at which it will trade. 🗸🗸

They are exposed to market forces

  • Consumers have limited budgets and a monopoly can therefore not demand excessive prices for its product. 🗸🗸
  • The monopolist’s product has to compete for the consumer’s favour and money with all other products available in the economy. 🗸🗸

They face substitutes

  • There are few products that have no close substitutes. 🗸🗸
  • For example, cell phones can compete with telephone services. 🗸🗸

They may enjoy favourable circumstances

  • Sometimes an entrepreneur may enjoy favourable circumstances in a certain geographical area. 🗸🗸
  • For example, there may be only one supplier of milk in a particular town. 🗸🗸

They may exploit consumers

  • Because a monopolist is the only supplier of a product, there is always the possibility of consumer exploitation. 🗸🗸
  • However, most governments continually take steps to guard against such practices. 🗸🗸

Market Information

  • All information on market conditions is available to both buyers and sellers. 🗸🗸
  • This means that there are no uncertainties. 🗸🗸

Control over price

  • In the case of a monopoly there are considerable price control, but limited by market demand and the goal of profit maximisation. 🗸🗸

Long-run economic profit Can be positive

  • Because new entries are blocked and short-run economic profit therefore cannot be reduced by new competing firms entering the industry 🗸🗸
  • The monopoly can thus continue to earn economic profit as long as the demand for its product remains intact 🗸🗸

Heading = 1 mark AC = 1 mark DD/AR = 1 mark MC = 1 mark Profit maximisation point =1 mark Labelling of the axis = 1 mark Labelling on the axis = 1 mark

Long run equilibrium of a perfect competitor

CONCLUSION A monopoly does not always make economic profit in the short run; it can also make economic loss in the short run if the total cost exceeds total revenue. 🗸🗸

INTRODUCTION

  • The oligopoly is a type of imperfect market in which only a few large producers dominate the market. 🗸🗸 [Accept any other relevant and correct response]

MAIN PART Nature of product

  • The product may be homogeneous in a pure oligopoly. 🗸🗸
  • If the product is differentiated, it is known as a differentiated oligopoly. 🗸🗸

Market information

  • There is incomplete information on the product and the prices. 🗸🗸
  •  Market entry is not easy, it is limited in the sense that huge capital outlay might be necessary. 🗸🗸
  • Oligopolists have considerable control over price, it can influence price, but not as much as the monopolist. 🗸🗸
  • Oligopolies can frequently change their prices in order to increase their market share and this result in price wars. 🗸🗸

Mutual dependence

  • The decision of one firm will influence and be influenced by the decisions of the other competitors. 🗸🗸
  • Mutual dependence (interdependence) exists amongst these businesses.
  • A change in the price or change in the market share by one firm is reflected in the sales of the others. 🗸🗸

Non-price competition

  • Non - price competition can be through advertising, packaging, after-sales services. 🗸🗸
  • Since price competition can result in destructive price wars, oligopolies prefer to compete on a different basis. 🗸🗸
  • Participants observe one another carefully- when one oligopolist launches an advertising campaign, its competitors soon follow suite. 🗸🗸
  • If oligopolies operate as a cartel, firms have an absolute cost advantage over the rest of the other competitors in the industry. 🗸🗸
  • Collusion is a strategy used by firms to eliminate competition amongst each other. 🗸🗸
  • It can be in a form of overt collusion where firms can work together to form a cartel and tacit collusion where a dominating business controls the price. 🗸🗸

Limited competition

  • There are only a few suppliers manufacturing the same product. 🗸🗸

Economic profit

  • Oligopolies can make an economic profit over the long term. 🗸🗸
  • Abnormal profits may result to joint decision-making in an oligopoly. 🗸🗸

Demand curve

  • Slope from left down to the right. 🗸🗸
  • It is known as the kinked demand since it contains the upper relatively elastic slope and the lower relatively inelastic slope. 🗸🗸 [Accept any other relevant and correct response] [Max. 26]

ADDITIONAL PART Oligopolist may increase their market share using non-price competition strategies by:

  • branding their product to create an impression that its product is for a particular age group or income group. 🗸🗸
  • aggressive advertising which inform customers about the business or product it provides.🗸🗸
  • Using appealing packaging to bring out important features of their product.
  • improving their customer service in order to ensure that they return to their businesses.🗸🗸
  • providing relevant and precise information, which is crucial to the customers, since there are competitors in the market, customers will patronize the businesses that provides relevant information. 🗸🗸
  • extending shopping hours to the convenience of customers.
  • Offering loyalty rewards to customers which will encourage their return to spend accumulated rewards. 🗸🗸  [Accept any other relevant response] [Max.10]
  • In South Africa, oligopolists have been found to be illegally manipulating prices to their benefit, yet to the detriment of consumers and have been penalized for such action. 🗸🗸 [Accept any other relevant response]

Compare and contrast any TWO types of market structures (perfect to imperfect/imperfect to imperfect) in detail in terms of the following. - Number of businesses - Nature of product - Entrance - Control over prices - Information - Examples - Demand curve - Economic profit/loss - Decision-making - Collusion - Productive/Technical efficiency - Allocative efficiency (Perfect Market and Imperfect Market)

‘’Market structures are classified under Perfect Competition, Monopolistic Competition, Oligopoly and Monopoly’’ Compare all FOUR market structures in a tabular form. NB: Learners should write in full sentences even if the comparison is done in a tabular format). (Marks depend on the combination of market structures to be examined)

PLEASE NOTE: THE ABOVE TABLE SHOULD BE VERBALLY WRITTEN AS PER ESSAY INSTRUCTION

INTRODUCTION Market failure is when the forces of supply and demand fail to allocate resources efficiently / when markets fail to allocate goods and services efficiently. 🗸🗸 [Accept any other correct introduction] [Max 2]

BODY: MAIN PART                           

1. Missing Markets

  • Markets are often incomplete in the sense that they cannot meet the demand for certain goods. 🗸🗸
  • Public goods:
  • They are not provided by the price mechanism because producers cannot withhold the goods from non-payment and there is often no way of measuring how much a person consumes. 🗸🗸

Public goods have the following features: Non-rivalry:

  • The consumption by one person does not reduce the consumption of another person e.g. a lighthouse. 🗸🗸

Non-excludability:

  • Consumption cannot be confined to those who have paid, so there are free riders e.g. radio and TV in South Africa. 🗸🗸

Merit goods

  • These are goods/services that are deemed necessary or beneficial to the society, e.g. education, health care etc. 🗸🗸
  • These goods are highly desirable for general welfare but not highly rated by the market, therefore provide inadequate output/supply. 🗸🗸
  • If people had to pay market prices for them relatively too little would be consumed – the market will fail. 🗸🗸
  • The reason for undersupply of merit goods is that the market only takes the private costs and benefits into account and not the social costs and benefits. 🗸🗸

Demerit goods

  • These are goods/services that are regarded as bad or harmful for consumption hence we should use less of these e.g. alcohol, cigarettes, etc. 🗸🗸
  • Demerit goods lead to a lot of social costs, therefore, the government charges sin tax / excise duties to discourage the consumption of such goods. 🗸🗸
  • While the market is willing to supply demerit goods, it tends to oversupply demerit goods. 🗸🗸
  • Some consumers may be unaware of the true cost of consuming them. 🗸🗸

2 Lack of information

  • Technical and allocative efficiency require that both producers and consumers have complete and accurate information about the costs and benefits of the goods and services produced and consumed in the market. Producers and consumers make production and consumption decisions based on the information they have. 🗸🗸
  • When information is incomplete or inaccurate, it leads to wrong decisions about what to produce, how to produce and for whom to produce, and a waste of resources occurs. 🗸🗸
  • Producers might not know all the different technologies and production techniques that are available and the different resources that can best be used to produce goods/services more efficiently. 🗸🗸
  • Consumers might not know that the price of a product is lower from some other suppliers or about the harmful effects of a product since they might just base their decisions to consume on the information from a misleading suppliers. 🗸🗸

3. Immobility of factors of production

  • Markets do not respond to changes in consumer demand if resources cannot be easily reallocated or due to a lack of information🗸🗸
  • Labour takes time to move to into new occupations and geographically to meet the changes in consumer demand. 🗸🗸
  • Physical capital e.g. equipment, buildings, land and raw materials can only move from one place to another at a high cost, but cannot be moved to fit a change in demand. 🗸🗸
  • Technological applications change production methods e.g. use of robots rather than physical labour. It takes time for most industries to adapt. 🗸🗸
  • With greater technological change there is an increasing need for workers to become flexible, to update skills, change employment, occupations and work patterns. 🗸🗸 [Max 26]
  • Motivate why government has implemented a national minimum wage in the labour market. 🗸🗸
  • Pressure was put on the South African government to introduce labour laws which require employers to pay minimum wages. 🗸🗸
  • The application of minimum wage laws is needed to improve a redistribution of income. 🗸🗸

The main objectives were:

  • To redress inequality (Gap between wealthy and poor) 🗸🗸
  • To improve the standard of living. 🗸🗸
  •  Government tried to protect domestic workers and farm workers — thus preventing exploitation. 🗸🗸  [Max 10] [Accept any other correct relevant response]

CONCLUSION Governments intervene in the market when market forces cannot achieve the desired output. [Max 2] [Accept any other relevant conclusion]

INTRODUCTION 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 [Accept any other relevant introduction] [Max 2] maximizes its benefits. 🗸🗸

  • Sometimes government will set the price of a good or service at a maximum level that is  below the market price 🗸🗸
  • The government intervene and passes a law that suppliers may not charge more than the maximum price 🗸🗸
  • The immediate effect is that quantity supply will drop 🗸🗸
  • The original market equilibrium price and quantity is P and Q respectively 🗸🗸
  • The price set by the government is P1, at this price the demand will increase to Q1 and the supply will decrease to Q2 🗸🗸
  • The difference between Q1 and Q2 is the shortfall that will be created on the market 🗸🗸
  • The shortage caused by the price ceiling creates a problem of how to allocate the good since the demand has increased 🗸🗸
  • Black markets start to develop [Mark allocation: Graph 6 and discussion max. 10 marks]
  • The appropriate way to intervene in the market by government is by levying taxes as a method to recover external cost 🗸🗸
  • The original market equilibrium at e, with P as the equilibrium price and Q as the equilibrium quantity 🗸🗸
  • The tax increase will shift the supply curve to the left 🗸🗸
  • New equilibrium at E1 🗸🗸
  • A tax would raise the price from P to P1 🗸🗸
  • The production will decrease from Q to Q1 🗸🗸 [Mark allocation: Graph total 6 marks and discussion max 10 marks]
  • Explain the supply of undesirable goods in South Africa and how the government can deal with it. 🗸🗸
  • Items such as cigarettes, alcohol and non-prescription drugs are examples of demerit or undesirable goods. 🗸🗸
  • These goods are often over supplied in the market, due to the fact that the external cost is not added to the market price. 🗸🗸
  • Some consumers may be unaware of the true cost of consuming them, their negative externalities. 🗸🗸
  • Government can ban their consumption or reduce it by means of taxation. 🗸🗸
  • Taxation on these products will increase the market price and hopefully the demand for these products will drop. 🗸🗸 [10 marks] [Accept any other correct relevant response]

CONCLUSION The intervention of government ensures that inefficiencies is eliminated and that the market is operating effectively 🗸🗸 [Accept any other relevant conclusion] [Max 2]

CONTEMPORARY ECONOMIC ISSUES-PAPER 2

  • This is a constant and significant increase in the general price level of goods and services in the country over a certain period of time, e.g. a year. 🗸🗸 [Max 2] [Accept any relevant introduction]

BODY-MAIN PART Creditors and Debtors

  • Whereas borrowers (debtors) benefit from price increases, lenders (creditors) suffer due to price increases. 🗸🗸
  • This is because borrowers receive money with a relatively high purchasing power and they repay their loans with money with low purchasing power, unless interest rates are sufficient to prevent this occurrence. 🗸🗸

Salary and Wage Earners

  • Price increases affect people whose incomes are relatively fixed (in other words, people whose incomes remains constant or do not increase at the same rate as prices do. 🗸🗸
  • This group includes retired people, pensioners and the poor. 🗸🗸
  • As prices increase, their almost fixed incomes purchase less and less. 🗸🗸
  • However there are individuals and entrepreneurs whose incomes often increase at a rate that is higher than the inflation rate and they do not suffer but gain from inflation. 🗸🗸
  • Globalization results in increased employment opportunities in the economy due to increased productivity, the need to produce more goods both for local and international markets rises in globalised economies. 🗸🗸
  • The demand for increased skilled labour becomes a need as a result, this demand for labour benefits the local labour market in increased employment opportunities and growth. 🗸🗸

Investors and Savers

  • Different types of investments are affected by inflation: Assets with fixed nominal values. 🗸🗸
  • These assets have a fixed nominal value and give a return if they are held until maturity. 🗸🗸
  • When they are paid, because their nominal values remain constant, the purchasing power of the nominal values decreases as prices increase (that is, their real value decreases). 🗸🗸

Assets with Flexible Market Values

  • The holders of shares and fixed property usually gain by price increases because the nominal values of these assets tend to increase at least proportionately to the rate of inflation (that is, their market values are flexible). 🗸🗸
  • Often the prices of these assets increase more rapidly than increases in the general price level.🗸🗸
  • In this case, inflation creates wealth to the advantage of those holding such assets. 🗸🗸
  • South Africa has a progressive personal income tax system. 🗸🗸
  • This means that marginal and average tax rates increase in harmony with the income level. 🗸🗸
  • The higher level an individual’s income, the greater the percentage of income he or she has to pay tax. 🗸🗸
  • With inflation, taxpayers’ nominal income (wages and salaries) rise even when their real income remain unchanged. 🗸🗸

Taxes are levied on nominal income and not on real income.

  • Therefore if the income tax schedule remains unchanged inflation increases the average rate of personal income tax. 🗸🗸
  • Individuals will have to pay higher taxes even if they are actually no better off than before. 🗸🗸
  • This phenomenon known as bracket creep, lads to a redistribution of income from taxpayers to the government. 🗸🗸
  • Bracket deep results from a combination of inflation and progressive income tax. 🗸🗸
  • It has the same effect as an increase in the tax rate. 🗸🗸

Industrial Peace

  • Wage bargaining is often accompanied by strikes and mass action. 🗸🗸
  • These actions can sometimes spill over into violence, which affects society at large. 🗸🗸
  • In extreme situations in the presence of exceptionally high inflation together with a government that is determined not to yield to wage increase demands (which can push inflation to even higher levels), widespread civil unrest follows. 🗸🗸

Inflation has a negative effect on economic growth

  • Inflation leads to increased uncertainty in the economy. 🗸🗸
  • This uncertainty discourages savings and investments especially in the long term. 🗸🗸
  • Which are necessary for economic growth –result reduced economic growth. 🗸🗸

Inflation affects the real money value and savings

  • Because inflation reduces the real value of money, it affects the real value of money saved in particular. 🗸🗸
  • This means that inflation, the rand buys fewer goods and services than before. 🗸🗸
  • It also means that the real money value saved is worth less at the end of the savings period than when the money was saved. 🗸🗸
  • e.g. if a consumer receives 5 % interest on his/her savings account while the inflation rate is 8%, then the real rate of interest on the consumer’s savings is -3%.🗸🗸

Inflation has an adverse effect on a country’s balance of payments (BOP).

  • If a country’s rate of inflation is higher than that of its trading partners the prices of exported goods increase while the prices of imported goods decrease. 🗸🗸
  • This leads to loss of competitiveness in the export market, which in turn leads to decreased exports. 🗸🗸

This has a negative effect on the country’s balance of payments (BOP).

  • The loss of export competiveness can also increase unemployment inflation affects the redistribution of income in a country. 🗸🗸

The effects of inflation are uneven.

  • While it does not clearly benefit anyone and certainly harms most, it also harms some less than others. 🗸🗸
  • Inflation also tends to redistribute income from low-income groups to higher income groups. 🗸🗸
  • This is because people in the low income groups do not have assets than can rise in value faster than the rate of inflation to help them overcome the effects of inflation. 🗸🗸
  • Powerful groups such as trade unions large companies and the wealthy people, are able to increase their share of national income at the expense of disadvantaged people such as pensioners the unemployed and the welfare recipients. 🗸🗸

Inflation has social and political costs

  • When inflation continually causes rising prices it makes people unhappy and can disturb relations between employers and the employees and between customers and traders or service providers. 🗸🗸
  • People in lower-income brackets feel severe effects of increases in the price of essential items such as bread, maize meal rental and transport costs. 🗸🗸
  • This can lead to social unrest and political unrest. 🗸🗸

Inflation feeds on itself and causes further inflation

  • This is called the inflation spiral. 🗸🗸 e.g. higher wage demands cause producers to increase their prices to maintain their profits.
  • This happens again and again pushing prices further every time. 🗸🗸
  • If the government does not keep this wage price spiral in check, inflation may get out of control and become hyperinflation. 🗸🗸 [Max 26]

ADDITIONAL PART Debate the merits (benefits) of administered prices by the government

  • These are prices regulated by the government e.g. home owner’s costs on water/household fuel (paraffin and electricity) medical care (public hospitals) communication (telephone calls, telephone rentals and installations/postage cell communications /transport (petrol). 🗸🗸
  • Most of the administered prices are adjusted once a year which brings price stability. 🗸🗸
  • Regulated prices are restricted as to the extent to which prices may vary, depending on the government’s objectives. 🗸🗸
  • Administered prices provide additional revenue to national treasury. 🗸🗸
  • It appears that some of these prices remain extremely robust over the short term. 🗸🗸 [Accept any other relevant response] [Max 10]
  • If inflation is not controlled by the proper and effective instruments, it can have challenging problems to the economy in general. 🗸🗸

INTRODUCTION COST PUSH Inflation is a sustained and significant increase in general price level over a period of time and a simultaneous decrease in the purchasing power of money. Accept any other relevant introduction. 🗸🗸 [Max 2] 

BODY: MAIN PART Causes of cost-push inflation

Increase in Wages:

  • In South Africa, increase in wages constitute more than 50% of Gross Value Added at basic prices 🗸🗸
  • If the increase in wages is not accompanied by an increase in production, the cost of production will rise 🗸🗸
  • Producers will increase the prices of their products to offset the high cost of production strikes and stay-aways / labour union activities 🗸🗸

Key inputs/ increase in prices of imported capital goods

  • When the prices of key inputs that are imported increase, domestic cost of production 🗸🗸
  • increases especially in the manufacturing sector 🗸🗸
  • Supply shocks e.g. sudden increase of oil causes a knock-off effect 🗸🗸

Exchange rate depreciation

  • A decrease in the value of the rand will result in an increase in prices of imports 🗸🗸

Profit margins

  • When firms increase profit margins, the prices that consumers pay also increase 🗸🗸
  • Sometimes firms use their market power to push up prices 🗸🗸

Productivity

  • Less productive factors of production will lead to increased cost per unit 🗸🗸
  • Strikes and stay-aways often reduce production output and can result in price increases 🗸🗸

Natural disasters

  • Natural disasters such as drought, flood and global warming can impact on the cost of production 🗸🗸
  • This is often the case in relation to food prices 🗸🗸
  • An increase in interest rates results businesses paying more money for capital loaned firms recover these costs by increasing the prices of their products 🗸🗸

Increase in taxation

  • Increase in direct tax like company income tax may lead to businesses increasing their prices to offset the extra burden 🗸🗸
  • Increase in indirect tax such as custom duty will lead to increase in costs of supplying a particular product, therefore the price will increase 🗸🗸
  • Administered prices increase e.g. fuel prices
  • Shoplifting and losses caused by employees are added to the prices of products 🗸🗸 [Accept any other relevant fact. Maximum 8 marks for headings] [Max. 26]

DEMAND PULL INFLATION Total spending on domestic goods and services in the economy consists of the spending by households, firms, the government and the foreign sector.

  • Total spending = C + I + G + (X-M). 🗸🗸

Causes of demand inflation Increase in consumption [C] – consumers expenditure will increase mainly for three reasons:

  • a. If consumers save less & spend more🗸🗸
  • b. Decrease in personal income tax. 🗸🗸
  • c. A greater availability of consumer credit, because of decrease in interest rate. 🗸🗸

Investment [I] –When business invest this increase demand for labour, cement, sand and bricks. 🗸🗸

  • Supply cannot keep up with the increase in demand and this will increase prices. 🗸🗸
  • Lower interest rates may result in an improvement in the sentiment and profit expectations of businesses. 🗸🗸
  • Businesses invest more and this may lead to an increase in the demand of goods and services that are part of the investment (for example, a new building requires cement bricks and labour).🗸🗸
  • If aggregate demand increases at a faster rate than aggregate supply, price increases will follow.🗸🗸

Government Spending [G] – Three main reasons.

  • a. New capital projects🗸🗸
  • b. Consumption expenditure on education, health, and protection. 🗸🗸
  • c. Social expenditure on public work programme to create jobs and increase in social allowances. 🗸🗸

Export earnings [X]

  • a. When economy of trading country improve. 🗸🗸
  • b. When global economy expands. 🗸🗸

Access to credit

  • There is greater availability of consumer credit (by means of credit cards) of the availability of cheaper credit as a result of decreases in lending rates. As new credit is extended the credit multiplier kicks in and more credit is created. 🗸🗸

Consumption spending

  • Most governments will at times increase expenditures on education, health, protection and safety (for example, military equipment such as bomber jets and submarines). 🗸🗸

Social spending

  • Governments sometimes feel they have to do something substantive about unemployment and poverty. 🗸🗸
  • They borrow money and spend it on public works programmes or raise the level of social grants year after year at a higher rate than the inflation rate. 🗸🗸
  • Such expenditures invariably lead to inflation because they add to aggregate demand without adding anything to aggregate supply. 🗸🗸

Commodities demand

  • The world’s demand for commodities expands and contracts like business cycles do. During an expansionary period, foreign demand increases and this leads to greater volumes of exports. The income earned from these exports adds to aggregate demand and prices increase. 🗸🗸

BODY: ADDITIONAL PART YES / NO

  • Inflation targeting is when a particular percentage is set as an acceptable level for an increase in general price levels 🗸🗸
  • The SARB's inflation target is a range of 3% and 6% 🗸🗸
  • The aim of inflation targeting policy is to achieve and maintain price stability 🗸🗸
  • The implementation of the inflation target is easy to understand – expressed in numbers which makes it very clear and transparent 🗸🗸
  • It reduces uncertainty and promotes sound planning in the public and private sectors 🗸🗸
  • It provides an explicit yardstick that serves to discipline monetary policy and improves the accountability of the central banks 🗸🗸
  • The SARB make use of monetary policy, specifically the repo rate to keep the inflation within the target range 🗸🗸
  • The government make use of fiscal policy regarding public sector revenue and expenditure 🗸🗸

Positive effects

  • Where demand is higher than supply an increase in interest rates help to bring the demand down 🗸🗸
  • The policy can helps businesses to make economic plans without worrying about the effects of high inflation 🗸🗸
  • South Africa's price level has been fairly stable since the introduction of the inflation targeting policy in 2000 🗸🗸

Negative effects

  • Inflation targeting can cause a reduction in economic growth 🗸🗸
  • This is because the raising of interest rates, result in a decrease in total spending which is needed for production to increase 🗸🗸
  • Decreased economic growth can increase unemployment 🗸🗸
  • South Africa has been experiencing an increase in unemployment since the implementation of the policy in 2000 🗸🗸
  • Inflation targeting is difficult to implement when the cause of inflation is supply shocks 🗸🗸 [Max. 10]
  • 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. 🗸🗸
  • Recommendations. 🗸🗸
  • E.g. Inflation can be a threat to the normal functioning of the economy; therefore, measures like monetary and fiscal are vital to keep the phenomenon under control. 🗸🗸 
  • This is the activities of people travelling to and staying in places outside their usual environment for a period not longer than one consecutive year for leisure, business and other purposes and not related to a remunerative activity from within the place visited 🗸🗸 [Max 2]

BODY - MAIN PART Gross domestic product (GDP)

  • Tourism impacts mostly on the services industry than on agriculture or manufacturing although there are upstream effects when agriculture provides foodstuffs to restaurants and manufacturing provides vehicles for transport 🗸🗸

Direct contribution on GDP

  • Statistics South Africa (SSA) shows that in 2020 inbound tourists contributed R69 billion and domestic tourists R billion, amounting to R billion - about % of South Africa's GDP 🗸🗸

Indirect contribution on GDP

  • If the indirect contribution is added, tourism add about % to GDP 🗸🗸
  • The WTTC estimated that tourism contributed % to the GDP of the world economy in 2020🗸🗸
  • In developing economies the service sector is responsible for around % of GDP, while it is responsible for more than % of GDP in developed economies 🗸🗸
  • South Africa is similar to that of developed economies and services contributed more than % of GDP in 2020. 🗸🗸
  • Tourism has a major effect on employment and this amounted to million workers in 2020🗸🗸
  • Tourism is the world’s largest generator of jobs 🗸🗸
  • Tourism is labour intensive 🗸🗸
  • More jobs can be created with every unit of capital invested in tourism than elsewhere
  • Tourism employs many skills 🗸🗸
  • It ranges from accountants and hairdressers to tour guides and trackers, 🗸🗸
  • the tourism industry draws upon numerous skills 🗸🗸
  • Tourism can provide immediate employment 🗸🗸
  • If one quarter of tourists’ accommodation establishment in South Africa starts to offer live entertainment to quests, thousands of entertainers could be employed within days 🗸🗸
  • Tourism provides entrepreneurship opportunities 🗸🗸
  • The tourism industry accommodates informal sector enterprises, from craft and fruit vendors to pavement vendors, chair rentals 🗸🗸
  • Tourism is widely recognized as one of the fastest and more effective redistribution mechanisms in development 🗸🗸
  • It brings development to the poor in rural areas 🗸🗸
  • Tourism provides an alternative to urbanisation, permitting women and youth to continue a rural family lifestyle while giving them business opportunities 🗸🗸
  • E.g. to start and operate small-scale tourism businesses around community asserts (forests, parks and rivers) 🗸🗸

Externalities

  • The rapidly expanding tourism industry could have both positive and negative impacts that extend well into the future 🗸🗸
  • While tourism attracts large amount of revenue, it can also cause undue environmental damage that can harm the very foundation on which it depends 🗸🗸
  • All other economic resources, tourism uses resources and produces wastes and also creates environmental costs (pollution) and benefits in the process 🗸🗸
  • Rapid growth in tourism aiming at short-term benefits usually results in more negative effects and these includes the degeneration of traditions and cultural values and environmental damage to sites and setting 🗸🗸

Environment Tourism activities create environmental stress:

  • Permanent environmental restructuring which includes major infrastructure 🗸🗸
  • Waste product generation such as biological and non-biological waste that damages fish production 🗸🗸
  • Direct environmental stress caused by tourist activities, e.g. the destruction of vegetation and dunes 🗸🗸
  • Effects on population dynamics such as migration and increased urban densities 🗸🗸
  • Transport infrastructure, e.g. roads, airports 🗸🗸
  • Communication and infrastructure including telephone lines, electronic signal stations and radio, TVs’ 🗸🗸
  • Energy infrastructure such electricity and liquid fuel 🗸🗸
  • Basic service infrastructure such as clean water and sewerage systems 🗸🗸 [Max. 26]

ADDITIONAL PART How can Indigenous Knowledge Systems be used to promote tourism in South Africa?

  • More cultural villages can be improved to facilitate and promote tourism e.g. Shangana in Mpumalanga, Basotho in the Free State and Simunye Zulu Lodge in Kwazulu-Natal. 🗸🗸
  • Where guides explain and demonstrate storytelling and indigenous knowledge practices. 🗸🗸
  • Advertising campaigns domestically and internationally by travel agencies, hotels and B & B, lodges and SA Tourism can focus on promoting these heritage sites in brochures and fliers, social media. 🗸🗸
  • These actions will make tourists more aware of these attractions 🗸🗸
  • Encourage tourists to experience different cultures and townships - experience life at home with a household and eat at a shebeen or township restaurant 🗸🗸
  • World Heritage Sites of South Africa can be promoted for their cultural significance e.g. the Fossil Hominid Sites of Sterkfontein, Mapungubwe Cultural Landscape, Richtersveld Cultural and Botanical Landscape, Vredefort Dome and Robben Island 🗸🗸
  • Environmental World Heritage Sites of South Africa selected for their natural importance namely the Cape Floral Region Protected Areas, Isimangaliso Wetlands Park as well as uKhahlamba/Drakensberg Park which has been selected for its mixed significance 🗸🗸
  • Arts and culture festivals e.g. the National Arts Festival, the Hermanus Festival, Awesome Africa Music Festival and Macufe African Cultural Festival should more widely be advertised to encourage tourists to attend 🗸🗸
  • According to the World Health Organisation, a large majority of the African population make use of traditional medicines for health, social-cultural and economic reasons and forms part of the unique experience tourists experience when visiting local villages 🗸🗸
  • In South Africa tourists are made more aware of the important role traditional medicine plays in poverty reduction and employment creation 🗸🗸
  • Relaxation of restrictive tourist visa laws to facilitate easier entry into South Africa 🗸🗸 [Accept any other relevant answers] [Max. 10]
  • South Africa attracted over million tourists in 2020 /For every 8.1 additional tourist to South Africa, one new job is created/one per cent increase in tourism adds R million annually to the SA economy. 🗸🗸 [Accept any other relevant higher order conclusion] [Max. 2]
  • Tourism is the activities of people travelling to and staying in places outside their usual environment for no more than one consecutive year for leisure, business or other purposes PP 🗸🗸  [Accept any other correct relevant response] [Max 2]

MAIN PART Business sector

  • Tourism stimulates business in areas such as accommodation and entertainment 🗸🗸
  • The construction industry, in private-public partnership with the government to provide the infrastructure, manufacturing sector and recreation sector all benefits from increased demand due to tourism 🗸🗸
  • The previously disadvantaged communities get entrepreneurial opportunities through the black economic empowerment schemes 🗸🗸
  • A large number of people get business opportunities in the informal sector e.g. selling of artefacts 🗸🗸
  • Local retailers may have an increase in sales (and profits) because of increased demand from tourists 🗸🗸
  • Private businesses and government work in partnership to provide the infrastructure needed for tourism 🗸🗸
  • This increases the market share of and income of the these businesses 🗸🗸
  • Allow existing businesses to improve the quality and variety of their products PP 🗸🗸
  • Allow natural monopolies e.g. Table Mountain Cableway to achieve abnormal profits PP 🗸🗸
  • The public sector also provides a range of financial incentives for private sector tourism investment (grants, subsidies, loans, tax rebates) PP 🗸🗸 [Max 10]

Infrastructure development

  • Adequate and well-maintained infrastructure is essential for tourist destinations PP. 🗸🗸
  • Locals share this infrastructure with tourists 🗸🗸
  • Government often prioritises economic infrastructure such as ports and beaches 🗸🗸
  • In addition to physical and basic infrastructure, social infrastructure is also important for the growth of tourism🗸🗸
  • Most of the SDIs and development corridors also have tourism as an important focus PP 🗸🗸 [Max 8]
  • Members of households earn income from the tourism sector as tour operators, travel agents etc. 🗸🗸
  • Many households are indirectly involved in tourism as employees e.g. in hotels, transport sector. 🗸🗸
  • Entrepreneurs from households that operate as curio producers or musicians can earn income from tourism . 🗸🗸
  • A large number of households acquire skills in the tourism industry. 🗸🗸
  • School curriculum and learnership offer opportunities to acquire these skills . 🗸🗸
  • Encourages rural development because many tourist attractions are located in rural areas PP 🗸🗸 [Accept any other correct relevant response] [Max. 26]

ADDITIONAL PART Tourism can be successfully marketed in less popular destinations by:

  • advertising the firms' attractions in a variety of media including social media and internet which may reach both local and international potential tourists. 🗸🗸
  • focusing on a clear message that concentrates on the strength of the attraction/ uniqueness of the destination. 🗸🗸
  • using the indigenous knowledge systems of that particular area where possible PP. 🗸🗸
  • describing the service offered in the best possible way to catch the interest of the likely tourist PP E.g. the use of slogans. 🗸🗸
  • charging a price that is competitive and money well spent for the service offered. 🗸🗸
  • helping the tourist to view the entire service as value for money – deliver a worldclass visitor experience 🗸🗸
  • highlighting other places of interest in the vicinity of the attraction as part of a package 🗸🗸
  • focusing on proudly South African products/services / Sho’t Left campaign PP 🗸🗸
  • help disadvantaged South Africans to benefit from tourist attractions in the less popular destinations PP 🗸🗸 [Accept any other correct relevant response] [Max. 10]

CONCLUSION A weaker exchange rate has been a major contributing factor to South Africa's tourism industry growth over many years. 🗸🗸 [Accept any correct relevant response] [Max 2]

INTRODUCTION Environmental sustainability can be defined as development that meets the need of the present without compromising the ability of future generations to meet their own needs. 🗸🗸

BODY: MAIN PART Public sector intervention Because it is difficult to enforce measures to ensure sustainability the government has to intervene. 🗸🗸

Environmental taxes Environmental taxes (green taxes) can be added to the cost of goods and services for the negative impact they have on the environment. 🗸🗸 The government uses the income generated through these taxes to protect the environment. 🗸🗸 Taxes can be imposed on petrol, paper, emission gases etc. 🗸🗸 In 2003 the government has legislated the use of biodegradable plastic bags which consumers had to pay for🗸🗸 The hope is that they will use fewer bags and ensure a litter free environment. 🗸🗸

Charging for dumping of waste A monthly fee as part of municipal accounts is charged for collection of waste, sewage and garbage. 🗸🗸 Households already pay for the collection of rubbish. 🗸🗸 The factory owner might clean up his waste if it cost him to dump it. 🗸🗸 Industries might also pay for emitting gases that can be harmful to people and the environment. 🗸🗸 Subsidies Subsidies can be awarded to businesses that are willing to reduce pollution and waste. 🗸🗸 Waste can also be reduced by using new techniques or equipment such as solar energy. 🗸🗸 Emission gases from factories can be reduced using new technology. 🗸🗸

Granting property rights Normally owners of properties tend to be more protective over their resources than users who are only interested in the profits the resources offer. 🗸🗸 For this reason the government might grant property rights over a specific area. 🗸🗸 Property rights empowers owners to negotiate contracts with businesses who wish to exploit the area’s resources. 🗸🗸

Marketable permits A government can decide on the maximum desired level of pollution in an area. 🗸🗸 It then distribute pollution rights (marketable permits) to factories within that area. 🗸🗸 This means that each factory can pollute to a certain limit. 🗸🗸 It means that marketable permits are licenses that polluters can buy or sell to meet the control levels set by government. 🗸🗸

Education Incorporating topics into the curriculum of school fosters awareness. 🗸🗸 The public is gradually been made aware of this rising problem. 🗸🗸 Plastic, bottles and cartons can be recycled or made biodegradable. 🗸🗸

Public sector control If the government’s intervention does not attain the desired results, then it has to intervene more directly by setting and enforcing limits. 🗸🗸

Environmental Impact Assessment In SA every projected construction, mining or similar development has to undergo an assessment by qualified environmental professionals. 🗸🗸 To prove that it will not cause unwarranted environmental damage and that the damage can be repaired after construction. 🗸🗸 The cost if built into the project. 🗸🗸

Command and Control Regulations that are set and enforce environmental limits or standards. 🗸🗸 Quantity: e.g. set the limit to the amount of fish to catch, or limit the season catching certain species of fish. 🗸🗸 Quality: e.g. drinking water quality is carefully monitored and controlled. 🗸🗸 Air quality in workplace is subject to minimum standards. 🗸🗸 Social effect: e.g. noxious fumes from factories, dumping of medical waste near settlements, and noise pollution. 🗸🗸

Voluntary agreements Agreements between government and businesses voluntarily to address negative environmental impacts of industries. 🗸🗸 Businesses voluntary agree to decrease the emissions of pollutants. 🗸🗸 Most prefer negotiations so that they can tailor their specific needs and include it into their planning🗸🗸 Agreements can be formal, which is legally binding contract or informal. 🗸🗸 [Max 26]

ADDITIONAL PART Government does not exercise effective control over the continuous dumping of waste because of a lack of coordination between departments. 🗸🗸 The fines imposed on industries that dump waste are too lenient and they continue polluting the environment. 🗸🗸

The minimum standards set for hazardous gas and fuel emissions are not enforced or adjusted. 🗸🗸 The recycling of waste materials are not widely encouraged and promoted and landfill sites are overflowing. 🗸🗸 Government has various laws that is not really effectively implemented. 🗸🗸 Poor service delivery also adds to the problem in certain areas. 🗸🗸 [Accept any other relevant answer] [Max 10]

CONCLUSION Each and every individual, business and government needs to stand together to save our planet. [Accept any other relevant conclusion] [Max 2] Discuss in detail the following problems and the international measures taken to ensure sustainable development (Environmental Sustainability)

INTRODUCTION Environment refers to the physical surroundings and physical conditions that affect people’s lives. 🗸🗸 The ever-increasing pressure on our environment originates from increasing population numbers and excessive consumption🗸🗸 Our air, land, and water are under constant assault from the ever-growing ravages of man-made pollution generated chiefly by industrialized societies. 🗸🗸 [Accept any appropriate introduction] [Max 2]

BODY-MAIN PART Conservation

  • Conservation is necessary because human actions cause pollution and over-utilisation of  resources. 🗸🗸
  • Conservation is a strategy aimed at achieving the sustainable use and management of natural resources. 🗸🗸
  • Conservation seeks a creative continuity of the environment while ensuring that change is sympathetic to the quality of life for both present and future generations. 🗸🗸
  • Certain aspects of conservation need to be taken into account.
  • Firstly, there is an opportunity cost. 🗸🗸
  • Secondly, externalities are often present. 🗸🗸
  • Lastly, self-interest has a short term horizon – meaning that decisions cannot be left entirely to market forces. 🗸🗸
  • Over utilization of resources causes a reduction in supply, increase in prices, contradiction of demand and a search for substitutes. 🗸🗸
  • This necessitates conservation of both renewable and non-renewable resources. 🗸🗸
  • Conservation has to be concerned with limiting what is harvested in order to maintain a stable stock at least at the minimum level. 🗸🗸
  • Government can use permits and quotas as two possible direct control methods in order to maintain the stock of resources at the minimum level. 🗸🗸

Preservation

  • Preservation involves any strategy undertaken to safeguard the environment, maintain its current condition and keep it as habitable as possible for people and animals. 🗸🗸
  • Heritage sites, indigenous forests, specifies of animals etc. that have special cultural or environmental significance, are often targeted preservation. 🗸🗸
  • Preservation is not likely to work as a private enterprise because the benefit to society is much bigger than the income of the producer. 🗸🗸
  • It may be possible to use cost-benefit analysis to calculate the social benefits of preservation of the environment.
  • The weaknesses in market solutions require the government to intervene in order to preserve environment assets. 🗸🗸
  • Government could do any of the following:
  • Buy or expropriate – Environmental assets are simply closed for human use. 🗸🗸
  • Subsidise-A subsidy would increase net benefits to the owner and raise the property’s present value. 🗸🗸
  • Controls – The government can compel the owner to apply control measures like restricting the quantities exploited or number of visitors allowed per day. 🗸🗸 [26 Max]

ADDITIONAL PART Stockholm Conference (1972)

  • The Stockholm Conference was the first major large scale international meeting on the environment convened with the support of the United Nations. 🗸🗸
  • The meeting agreed upon a declaration containing 26 principles concerning the environment and development, an action plan with 109 recommendations and a resolution. 🗸🗸
  • The meeting directly impacted on the environmental policies of many countries. 🗸🗸

Rio de Janeiro Earth Summit (1992)

  • This meeting acknowledged the importance of cooperation in addressing environmental concerns that threaten sustainability. 🗸🗸
  • The conference helped to make countries around the world aware of the dangers of unsustainable development. 🗸🗸
  • Unfortunately the principles outlined and accepted at the summit were not binding and subsequently many countries did not confirm to them. 🗸🗸

Rio + 5 (1997)

  • This conference noted that globalization made some countries poorer – 🗸🗸
  • In particular African countries and the least developed countries showed a low level of growth or even declined. 🗸🗸

Kyoto Protocol for Climate Change (1997)

  • Countries committed themselves to reducing their total emissions of greenhouse by 5 %.🗸🗸
  • Unfortunately, China was excluded from this agreement and the USA withdrew. 🗸🗸

World Summit on Sustainable Development (2002)

  • The objective of this summit held in Johannesburg was to conserve natural resources in a world that is growing in population. 🗸🗸
  • The meeting focused on issues like poverty eradication, water and sanitation, energy, health agriculture and biodiversity. 🗸🗸

COP 17 (2011)

  • The main goal of the conference held in Durban was to establish a treaty to limit carbon emissions and plan strategies to keep global temperature rise to less than 2 degree Celsius in the 21st Century. 🗸🗸
  • Although the framework for this treaty was established it was not finalised. 🗸🗸
  • The solution to our environmental problems will depend on our ability to make sound economic decisions that take account of the natural environment and to change our individual behaviour and attitudes. 🗸🗸 [Accept any other relevant conclusion] [Max 2]

Related items

  • Mathematics Grade 12 Investigation 2023 Term 1
  • TECHNICAL SCIENCES PAPER 2 GRADE 12 QUESTIONS - NSC PAST PAPERS AND MEMOS JUNE 2022
  • TECHNICAL SCIENCES PAPER 1 GRADE 12 QUESTIONS - NSC PAST PAPERS AND MEMOS JUNE 2022
  • MATHEMATICS LITERACY PAPER 2 GRADE 12 MEMORANDUM - NSC PAST PAPERS AND MEMOS JUNE 2022
  • MATHEMATICS LITERACY PAPER 2 GRADE 12 QUESTIONS - NSC PAST PAPERS AND MEMOS JUNE 2022

An Essay on Economic Theory

  • An Essay on Economic Theory.pdf
  • An Essay on Economic Theory.epub
  • naturaleza-del-comercio-electronico.pdf
  • naturaleza-del-comercio-facsimile.pdf

Here is the first accurate translation of Richard Cantillon's 1755 masterpiece on economics. This treatise is widely credited with being the first to describe the market process as one driven by entrepreneurship. William Stanley Jevons, in the first blush of discovery, proclaimed Cantillon’s Essai , “the cradle of political economy.”

A cradle holds new life; and there can be little doubt that the Essai added new life to the organizing principles of economics. But “political economy” does not accurately describe the subject Cantillon addressed. Indeed, he scrupulously avoided political issues in order to concentrate on the mechanics of eighteenth-century economic life. When confronted by “extraneous” factors, such as politics, Cantillon insisted that such considerations be put aside, “so as not to complicate our subject,” he said, thus invoking a kind of ceteris paribus assumption before it became fashionable in economics to do so.

Murray Rothbard, for this reason, called Cantillon the "founding father of modern economics."

This book preceded Adam Smith by a generation. Unlike any previous writer, Cantillon explicated the vital role of the entrepreneur with perception and vigor. Hence, he deserves to be called “the father of enterprise economics.”

We know little of Cantillon’s life and the circumstances of his authorship. The manuscript that was eventually published in 1755 circulated privately in France for almost two decades before; when published, it appeared under mysterious circumstances.

Mark Thornton and Chantal Saucier have accomplished the arduous task of bringing forth a new and improved translation of Cantillon’s famous work. Heretofore the only English translation of the Essai available has been the 1931 edition produced by Henry Higgs for the Royal Economic Society. Though competent, it has become less serviceable over time, as more and more of its shortcomings devolved (not the least of which is the antiquated use of “undertaker” in place of “entrepreneur”).

Saucier provides a more accurate and lucid account, better suited to the 21st century. Thornton’s hand shows not only in competent guidance of the translator but in the inclusion of numerous explanatory footnotes that add historical context.

Robert F. Hébert writes the foreword.

The honor of being called the "father of modern economics" belongs not to its usual recipient, Adam Smith, but to a gallicized Irish merchant, banker, and adventurer who wrote the first treatise on economics more than four decades before the publication of the Wealth of Nations. Richard Cantillon (1680s–1734) — a proto-Austrian — is one of the most fascinating characters in the history of social or economic thought.

On the Cause and Effect of Interest Rates 11/18/2021 • Mises Daily • Richard Cantillon The abundance or scarcity of money in a state always raises or lowers the price of everything in markets.

The Value of Labor 10/21/2011 • Mises Daily • Richard Cantillon The labor of the plowman is of less value than that of the artisan.

The Blessing and Curse of Banking 05/12/2011 • Mises Daily • Richard Cantillon Money was never seen so abundant in Rome. What was the result? All this money plunged the Romans into luxury and into all sorts of crimes to pay for it.

Mises Institute, 2010

The Mises Institute exists solely on voluntary contributions from readers like you. Support our students and faculty in their work for Austrian economics, freedom, and peace.

economics essay plan

Grade Booster exam workshops for 2024 . Join us in to Birmingham, Bristol, Leeds, London, Manchester and Newcastle Book now →

Reference Library

Collections

  • See what's new
  • All Resources
  • Student Resources
  • Assessment Resources
  • Teaching Resources
  • CPD Courses
  • Livestreams

Study notes, videos, interactive activities and more!

Economics news, insights and enrichment

Currated collections of free resources

Browse resources by topic

  • All Economics Resources

Resource Selections

Currated lists of resources

  • Practice Exam Questions

Minimum Alcohol Pricing (Revision Essay Plan)

Last updated 10 Dec 2018

  • Share on Facebook
  • Share on Twitter
  • Share by Email

Here is a suggested answer to a question on minimum price for alcohol. "Assess the view that a minimum price on alcohol is likely to be an effective and equitable intervention to curb externalities from drinking."

Essay Minimum Alcohol Price (Download a pdf version of this essay plan)

Brief Introduction

A minimum price of 50 pence per unit has been introduced in Scotland from 1st May 2018 but not in England where the government has chosen to introduce a ban on selling alcohol under a “permitted price” which means that a can of average strength lager cannot be sold for less than 41p and a standard bottle of vodka cannot be sold for less than £9.06. This essay will assess whether imposing a legal price floor is likely to work and also be equitable to different stakeholders.

The first argument for having a minimum price on alcohol is that excessive drinking leads to negative externalities from consumption which is a major cause of market failure and leads to significant social costs. Anti-social behaviour associated with binge drinking impacts not just those who over-consume but impose external costs on the health service and uses up the scarce resources of the police and criminal justice system. Alcohol abuse can also lead to increased absenteeism from work and lower labour productivity in the long run. The effect of negative externalities is shown in my analysis diagram where marginal social cost exceeds marginal private cost leading (in the absence of any intervention) to a deadweight loss of social welfare. A research report from the University of Sheffield estimated the following annual costs arising from alcohol mis-use: NHS costs £3.5 bn, alcohol-related crime £11 bn and lost productivity due to alcohol £7.3 bn. In this situation, some form of government intervention is clearly justified and the Scottish government argues that a minimum price floor is better for targeting harmful binge drinking, while leaving the more moderate drinker relatively unaffected. In this sense, it is an equitable policy.

economics essay plan

Evaluation of Point 1

However, there is a danger that intervention can lead to one or more government failures. One argument is that putting a minimum price on alcohol will lead to unintended consequences. For example, banning cheap alcohol at festivals and other events might lead young people to switch to using cheaper non-alcoholic drugs instead. If drinkers cannot afford alcohol at legally-imposed minimum prices, they may turn to shadow markets so we might expect a rise in cross-border shopping as consumers go to supermarkets in England to get their alcohol at a cheaper price. If people want to get around a regulation, they will normally find a way do so if there is an obvious net financial benefit.

economics essay plan

A second argument in favour of minimum unit pricing for alcohol is that enforcing a minimum unit price will encourage drinks manufacturers to reformulate their products so that any price increase for the consumer is limited. For example, in 2012, AB InBev (one of the world’s biggest brewers) reduced the alcohol content of their beers for the UK market, from 5% to 4.8%. They have seen sales rise strongly in recent years suggesting that focusing on lower-strength beers and zero-alcohol drinks might generate supernormal profits in the long run. A minimum unit price for alcohol could have similar effects to what we have seen occur with the phrased introduction of a sugar tax where many firms have moved quickly to reduce the sugar content of drinks to reduce their liability to pay tax. Reformulation helps lower the risks of alcohol-fueled violence and therefore can be a justified intervention in the market.

Evaluation of Point 2

Critics of the minimum alcohol price counter by saying that it is a tax on responsible drinkers and that many families on average or below-average incomes will be badly affected. Research from the Institute of Fiscal Studies has found that 5% of households in the UK buy more than 30% of all alcohol. Why should people who drink in moderation have to pay a higher price? A legally enforced minimum price might be seen as having a regressive effect on poorer households. The wine and spirits industry has lobbied against the Scottish minimum price arguing that it is inconsistent with the operation of the free market for the state to intervene on price and that it is a barrier to trade. They claim that lower sales of alcoholic drinks will cost jobs in the UK, both from manufacturing and from reduced revenues of corner shops, pubs and other retailers.

A third argument in favour of minimum unit pricing for alcohol focuses on the actual behaviour of consumers. One cause of alcohol-related violence comes from people “preloading” drinks at home before they head out to pubs and clubs. A minimum price for beers and spirits sold in supermarkets would help to curb drinking at home because the marginal private cost of doing so has increased. In my analysis diagram below, we see how a higher price will cause a contraction of demand, the size of which depends on the price elasticity of demand for different drinks. The level of consumer surplus falls as a result. A possible positive spillover from an end to super-cheap alcohol available from supermarkets is that more people will choose to go to pubs instead, perhaps helping to reverse the pattern of pub closures seen for a number of years.

economics essay plan

Evaluation of Point 3

Although in theory higher prices will limit demand and consumption, in practice consumers will always find ways around a regulation. One effect might be an increase in home-brewing of beer, gin and wine which might then lead to a rise in alcoholic poisoning and additional external costs. Youngers drinkers in particular might look to get around the legal minimum price by finding illicit alcohol in shadow markets. They are at great risk of suffering the effects of information failure which is another cause of market failure. This is also a policy that could be quite expensive to enforce.

Final reasoned comments

Critics of the minimum price claim that it is both ineffective in changing behaviour and is unfair (inequitable) to responsible drinkers and hits lower income families the most. They also claim that the main effect of the minimum price will be to increase the monopoly profits of the drinks industry at the expense of the consumer welfare of the majority of consumers. Some economists argue that an orthodox indirect tax on alcohol is a better strategy and it also creates tax revenues for the government which can then be earmarked to help fund health and education programmes. Behavioural economists might make the point that nudging consumers - for example by making them more aware of the social consequences of their actions - can be as effective as an intervention in the price mechanism.

Overall, I would argue that a minimum price per unit of alcohol is a justified intervention. Society is waking up to the huge long-term social costs of heavy drinking across all levels of household income. A minimum price is required to reduce consumption closer towards the social optimum and there are signs that it is and will bring about a change in the behaviour both of consumers and producers. The rapid growth of low or zero-alcohol lagers and wines is a reflection of a shift in revealed preferences. The evidence suggests that heavy drinkers tend to buy and consume cheap and high-strength alcohol available away from pubs so this policy could well be quite effective in the years ahead.

Revision Video: Minimum Prices for Alcohol - Evaluation

  • Indirect Tax
  • Minimum Price
  • Government Intervention
  • Government Failure
  • Unintended Consequences

You might also like

economics essay plan

Scotland introduces a minimum charge for plastic bags

21st October 2014

Information failure in the NHS

23rd January 2014

Cass Sunstein on Ten Common Behavioural Nudges

19th October 2014

economics essay plan

Can Nanny make you stop drinking?

8th October 2014

How useful is economics? Nobel winner Al Roth

24th August 2014

The Economics of the Blockbuster

13th August 2014

Paul Craven: The Magic of Behavioural Economics

24th June 2014

A fine nudge? Singapore MRT vs London Tube

24th April 2014

Our subjects

  • › Criminology
  • › Economics
  • › Geography
  • › Health & Social Care
  • › Psychology
  • › Sociology
  • › Teaching & learning resources
  • › Student revision workshops
  • › Online student courses
  • › CPD for teachers
  • › Livestreams
  • › Teaching jobs

Boston House, 214 High Street, Boston Spa, West Yorkshire, LS23 6AD Tel: 01937 848885

  • › Contact us
  • › Terms of use
  • › Privacy & cookies

© 2002-2024 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.

IMAGES

  1. Edexcel Economics A-level: Paper 1 Essay Plans

    economics essay plan

  2. Impressive Ib Extended Essay Examples Economics ~ Thatsnotus

    economics essay plan

  3. 008 Economics Essay Example Social Examples Of Position Paper

    economics essay plan

  4. Economics, 2nd ed. Lesson Plan Overview

    economics essay plan

  5. HSC Economics Essay Plans all topics

    economics essay plan

  6. How to write economics essay

    economics essay plan

VIDEO

  1. AS & A Level Economics

  2. 1st Sem Managerial Economics Previous Year Essay questions

  3. Economics Paper Postponed Why? When to be conducted?

  4. Why I chose to apply to read economics rather than law (like previously)

  5. How to do a Critical Analysis (It's Easier than you Think)

  6. 🔥+1 ECONOMICS 💯 SURE 8MARK QUESTIONS🔥/Important essay questions/Commerce Guru Malayalam

COMMENTS

  1. PDF Writing Economics

    WRITING ASSIGNMENTS IN ECONOMICS 970 In Sophomore Tutorial (Economics 970), you will receive several writing assignments including a term paper, an empirical exercise, short essays, response papers, and possibly a rewrite. Below is a description of these types: • Term Paper (10-15pp.). In all tutorials, you will be required to write a

  2. Economics Revision Essay Plans

    Economics Revision Essay Plans. Last updated 17 Dec 2019. This series of resources provides revision essay plans for a wide variety of essay topics, including synoptic questions. For the 2019 papers check out our collection of videos on building A* evaluation into your answers. Have you tried our series of more than 50 Quizlet revision ...

  3. How to Write a Good Economics Essay: 14 Steps (with Pictures)

    A good economics essay requires a clear argument that is well-supported by appropriately referenced evidence. Research your topic thoroughly and then carefully plan out your essay. A good structure is essential, as is sticking closely to the main essay question. Be sure to proofread your essay and try to write in formal and precise prose.

  4. PDF A Guide to Writing in Economics

    II, "Researching Economic Topics," tries to explain the scholarly and analytical approach behind economics papers. The third part, "Genres of Economics Writing," briefly surveys some of the kinds of papers and essays economists write. It is in the fourth part, "Writing Economics," that the manual homes in on discipline-specific writing.

  5. PDF Essay writing skills

    Essay Writing in Economics - Useful Advice This document is primarily aimed at students writing an essay. Much of the advice also applies to ... Your introduction should include a (very) brief outline of your essay - what you plan to do. There should be a clear conclusion to your essay, even if it is very brief, where you summarise your ...

  6. Tips for writing economics essays

    Some tips for writing economics essays Includes how to answer the question, including right diagrams and evaluation - primarily designed for A Level students. 1. Understand the question. Make sure you understand the essential point of the question. If appropriate, you could try and rephrase the question into a simpler version. Q. Examine the ...

  7. PDF Writing Tips For Economics Research Papers

    Writing Tips for Economics Research Papers is a pdf document that provides practical advice on how to write clear, concise, and effective papers in economics. It covers topics such as choosing a research question, organizing the paper, using data and evidence, and avoiding common pitfalls. The document is based on the author's experience as a professor and editor of a leading economics journal.

  8. PDF Writing Economics A Guide for Harvard Economics Concentrators

    Short Essays (4-6 pages). Short essays may require you to analyze two articles and compare their policy implications, explain a model, criticize an argument, present a case study, extend a theory, evaluate an intellectual debate, and so on. ... Writing Economics PLAN OF THIS GUIDE

  9. Development Economics Essay Plan: Savings and Growth

    For many development economists such as Stiglitz, there is a virtuous cycle between economic growth and saving. Kick-starting faster growth can often generate the extra savings if it successfully raises per capita incomes and lowers the scale of extreme poverty measured by the percentage of the population living on less than $3.10 a day (PPP ...

  10. Trade and Economic Growth (Revision Essay Plan)

    Higher levels of FDI might lead to more jobs in the formal economy which in turn generates more tax revenue and can raise per capita incomes which lifts people of out extreme poverty and adds to household consumption. (Trade can lead to positive multiplier and accelerator effects, rising AD and LRAS). Eval (2) However, there might be limits to ...

  11. A State-Ranker's Guide to Writing 20/20 Economics Essays

    NOT GOOD: "Economic growth increased by 1 percentage point in 2017 to 2018". NOT GOOD: "GDP was $1.32403 trillion in 2017". GOOD: "The 2017 Budget's Infrastructure Plan injected $42 billion into the economy — up 30% from 2016's $31 billion, and 20% higher than the inflation-adjusted long-term expenditure.".

  12. 8 Economics Essay Examples

    Fiscal policy plays a crucial role in shaping economic conditions and promoting growth. During periods of economic downturn or recession, governments often resort to fiscal policy measures to stimulate the economy. This essay examines the significance of fiscal policy in economic stimulus, focusing on two key tools: government spending and ...

  13. A-level Macroeconomics 20-mark essay planner / template (Edexcel)

    A simple template to help Edexcel A-level Economics students plan 20-mark Macro essays. I ask my students to submit a completed plan with every essay. Micro essay pl

  14. Edexcel Economics A-level: Paper 1 Essay Plans

    Economics A-Level: Paper 1, 2 & 3 Essay Plans. A collection of three essay plan documents that aim to help you achieve an A* in your economics A-level. Each document has essay plans answering multiple questions that may appear in your paper. Each essay plan is detailed with the specific chains of analysis, knowledge and real world economic ...

  15. 100 Essay Plans for Economics

    100 Essay Plans for Economics. Paperback - March 12, 1998. The essay plans contained in this text cover the most commonly asked questions on each syllabus area of microeconomics and macroeconomics. The author has used a wealth of experience in teaching and examining in economics to provide a useful manual for all students of the subject.

  16. Essay Plan: Limits on Monopoly Power

    Essay Plan: Limits on Monopoly Power. In this revision video we build an answer to this question: "Using applied examples of your choice, examine two factors that might limit the monopoly power of a business.". In theory, a firm with monopoly power such as Coca Cola which has over 40 percent of the US carbonated drinks market, has huge ...

  17. How to Write a Band 6 HSC Economics Essay

    How to Plan for an HSC Economics Essay: The most important thing about any essay is the answer to the question itself with your thesis. All points, arguments and statistics are simply used to support it. As a result, begin the plan by writing a direct answer to the question. In your thesis you want to:

  18. Impact of Globalisation (Revision Essay Plan)

    KAA Point 1. Globalisation involves deeper integration between countries through networks of trade, capital flows, ideas, technologies and movement of people. One argument that globalisation has favoured high-income countries lies in the growing dominance of TNCs from advanced nations. TNCs base their manufacturing, assembly, research and ...

  19. Economics Essays Plans (Topic 1-4)

    Economics Essays Plans (Topic 1-4) RETURN TO RESOURCE LIBRARY SUBSCRIBE TO OUR EMAIL LIST. Grade: HSC. Subject: Economics. Resource type: Essay. Written by: N/A. Year uploaded: 2021. Page length: 35. DOWNLOAD THE RESOURCE.

  20. A Level Economics essay plans

    Over 125 pages of essay plans on the following A Level Economics topics: Price determination in a competitive market. Production, costs and revenue. Market structures (perfect competition, imperfectly competitive markets and monopoly) The labour market. The distribution of income and wealth: poverty and inequality.

  21. Economic Essays Grade 12

    BBR or BSR - Economics Grade 12 Study Guides and Notes. Economic Essays Grade 12. SOUTH AFRICA'S ECONOMIC AND SOCIAL INDICATORS QUESTIONS AND ANSWERS. ENVIRONMENTAL SUSTAINABILITY QUESTIONS AND ANSWERS GRADE 12. TOURISM INFLATION QUESTIONS AND ANSWERS GRADE 12. INFLATION QUESTIONS AND ANSWERS GRADE 12.

  22. 2018 Practice Essays for A Level Economics

    2018 Practice Essays for A Level Economics. Geoff Riley. 3rd May 2018. At this time of year lots of teachers work feverishly through essay plans as a way of revising core content and honing those all-important essay exam skills. Here is a selection of micro & macro essay titles that I have been using in class.

  23. An Essay on Economic Theory

    An Essay on Economic Theory.epub; naturaleza-del-comercio-electronico.pdf; naturaleza-del-comercio-facsimile.pdf; Buy Now from the Mises Store. Here is the first accurate translation of Richard Cantillon's 1755 masterpiece on economics. This treatise is widely credited with being the first to describe the market process as one driven by ...

  24. Minimum Alcohol Pricing (Revision Essay Plan)

    This essay will assess whether imposing a legal price floor is likely to work and also be equitable to different stakeholders. Point 1. The first argument for having a minimum price on alcohol is that excessive drinking leads to negative externalities from consumption which is a major cause of market failure and leads to significant social ...