Question:

2 Living standards, including education, have improved for most people in South Africa in recent
years. Most households have more money and the government has more tax revenue. There is,
however, considerable income inequality. In 2020, 36% of the population were living in poverty. An
increase in unemployment benefit payments might reduce this poverty.
(a) Identify two functions of money. [2]
(b) Explain how improved education may affect the demand for cigarettes and for fresh fruit. [4]
(c) Analyse the causes of an increase in a government’s tax revenue. [6]
(d) Discuss whether or not an increase in unemployment benefit payments would reduce poverty.
[8]

Sample Answers: