Section A
Case study
Can South Africa escape from its economic difficulties?
In the extracts: South Africa, GDP, IMF, International Monetary Fund, African Continental Free, South African, Trade Area, AfCFTA, Gini
Q1(a)(i)Identify1 mark
Identify the overall change in the unemployment rate in South Africa between January 2020 and October 2022.
TopicUnemployment
Q1(a)(ii)Compare1 mark
Compare the trend in the unemployment rate in South Africa between January 2020 and January 2022 with that between January 2022 and October 2022.
TopicUnemployment
Q1(b)Identify2 marks
Identify one possible impact on firms in South Africa and one possible impact on the government of South Africa of such a high rate of unemployment.
TopicUnemployment
Q1(c)Consider4 marks
Consider whether continued falls in the value of the South African rand may lead to a reduction in the current account deficit of the balance of payments.
TopicCurrent account of the balance of payments
Q1(d)Assess6 marks
Assess the extent to which closer membership of the AfCFTA may help South Africa to achieve the growth needed to ‘escape from its economic difficulties’.
TopicThe reasons for international trade3.3 Addressing income and wealth inequality4.5 Unemployment
Q1(e)Assess6 marks
Assess the extent to which the policies suggested to improve infrastructure and to reduce the high rates of unemployment in South Africa are likely to reduce income inequality.
TopicAddressing income and wealth inequality4.5 Unemployment5.4 Supply-side policy
Section B
Q2(a)OptionalExplain8 marks
With the help of examples, explain the difference between public goods and free goods and consider whether a market economy can ever produce public goods.
Mark splitKnowledge 3Analysis 3Evaluation 2
TopicClassification of goods and services1.4 Resource allocation in different economic systems
Q2(b)OptionalAssess12 marks
Assess the extent to which a government can ensure that both merit and demerit goods are produced in desirable quantities.
TopicMethods and effects of government intervention in markets
Q3(a)OptionalExplain8 marks
Explain three reasons, associated with costs of production, why the supply curve for a particular market may shift to the right and consider the extent to which government microeconomic policy may also shift the supply curve for a particular market to the right.
TopicDemand and supply curves
Q3(b)OptionalAssess12 marks
Assess the extent to which knowledge of a product’s price elasticity of supply is the most useful measure of elasticity to a firm needing to react quickly to changes in its market.
TopicPrice elasticity of supply2.2 Price elasticity, income elasticity and cross elasticity of demand
Section C
Q4(a)OptionalExplain8 marks
With the help of an AD/AS diagram(s), explain one demand-side and one supply-side cause of deflation and consider which is likely to be more damaging to an economy.
Mark splitKnowledge 3Analysis 3Evaluation 2
TopicPrice stability
Q4(b)OptionalAssess12 marks
Assess the extent to which using fiscal policy would be the best way to reduce a high rate of inflation.
TopicFiscal policy
Q5(a)OptionalExplain8 marks
With the help of a diagram, explain two ways in which a fall in the balance of trade in goods may affect the value of a floating exchange rate and consider the extent to which a change in the relative rate of interest between two countries may have a greater impact on the exchange rate.
Mark splitKnowledge 3Analysis 3Evaluation 2
TopicExchange rates
Q5(b)OptionalAssess12 marks
Assess whether an improvement in the terms of trade or a surplus on the current account of the balance of payments is of more benefit to an economy.
TopicCurrent account of the balance of payments6.1 The reasons for international trade
