During 2021, demand for several South African products showed both extensions and contractions. In that same year, a South African court prevented a multinational company (MNC) from carrying out oil exploration along South Africa’s coastline. South Africa’s output rose, mainly because the tertiary sector expanded. Even so, its unemployment rate was $35\%$, which was still far from full employment.
(a)[2]
State the meaning of an extension in demand.
(b)[4]
Explain two external costs that can result from exploring for oil.
(c)[6]
Analyse how expansion in a country’s tertiary sector may raise its living standards.
(d)[8]
Discuss whether workers who lose their jobs are likely to remain unemployed for a long time.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “A movement along the demand curve” …