Living standards, education included, have risen for most people in South Africa in recent years. Most households now have greater disposable income and the government collects more tax revenue. Even so, income inequality remains very large. In 2020, 36% of the population were living in poverty. Raising unemployment benefit payments could help to cut this poverty.
(a)[2]
Identify any two functions of money.
(b)[4]
Explain the ways in which improved education may change the demand for cigarettes and for fresh fruit.
(c)[6]
Analyse the reasons why a government’s tax revenue may increase.
(d)[8]
Discuss whether an increase in unemployment benefit payments would, or would not, reduce poverty.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Medium of exchange: money is used to make payments for goods and services.” …