In South Africa, living standards, including education, have improved for most people in recent years. Many households now have more money, and the government collects more tax revenue. Even so, income inequality is still very large. In 2020, $36\%$ of the population were living in poverty. Raising unemployment benefit payments could help to reduce this poverty.
(a)[2]
Identify two functions that money performs.
(b)[4]
Explain how better education may affect the demand for cigarettes and for fresh fruit.
(c)[6]
Analyse the factors that can cause a government’s tax revenue to rise.
(d)[8]
Discuss whether or not higher unemployment benefit payments would reduce poverty.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “A medium of exchange” …