4.1 Answer the following questions. 4.1.1 Name any TWO groups of workers that benefit from minimum wages. 4.1.2 Why do international tourists prefer South Africa as a tourist destination? 4.2 Study the table below and answer the questions that follow. MARKET A MARKET B Quantity Price TR Quantity Price 0 R0 - 0 R0 1 R10 - 1 R4 2 R20 - 2 R8 3 R30 - 3 R12 4 R40 - 4 R16 5 R50 - 5 R20 4.2.1 Identify the market in which the demand curve shows a downward slope. 4.2.2 What is the nature of the products sold in a perfect market? 4.2.3 Briefly describe the term average revenue. 4.2.4 Why do individual firms find it easy to enter a perfect market? 4.2.5 Calculate the marginal revenue for market B at quantity 2. Show ALL calculations.

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4.1 Answer the following questions - NSC Economics - Question 4 - 2023 - Paper 2

Question 4

4.1 Answer the following questions. 4.1.1 Name any TWO groups of workers that benefit from minimum wages. 4.1.2 Why do international tourists prefer South Africa a... show full transcript

Worked Solution & Example Answer:4.1 Answer the following questions - NSC Economics - Question 4 - 2023 - Paper 2

Step 1

4.1.1 Name any TWO groups of workers that benefit from minimum wages.

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Answer

Two groups of workers that benefit from minimum wages include:

Farm Workers: These individuals often depend on minimum wage laws to secure a basic standard of living.
Domestic Workers: They are also significantly impacted by minimum wage regulations as they tend to have lower wages without such protections.

Step 2

4.1.2 Why do international tourists prefer South Africa as a tourist destination?

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Answer

International tourists prefer South Africa for several reasons:

Favorable Climate: The country offers a generally pleasant climate conducive to tourism throughout the year.
Diverse Attractions: South Africa presents a variety of attractions such as wildlife Safari, beautiful landscapes, and rich cultural experiences.
Friendly Local People: The hospitality of the South African people enhances the overall experience for tourists.

Step 3

4.2.1 Identify the market in which the demand curve shows a downward slope.

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Answer

The market where the demand curve shows a downward slope is Market B. This is indicated as the price decreases with an increase in quantity, demonstrating the inverse relationship typical of demand curves.

Step 4

4.2.2 What is the nature of the products sold in a perfect market?

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Answer

In a perfect market, the nature of the products sold is homogeneous. This means that the products are identical and indistinguishable from one another, leading consumers to view them as perfect substitutes.

Step 5

4.2.3 Briefly describe the term average revenue.

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Answer

Average revenue is defined as the income received from selling one unit of a product. It can also be calculated as the total revenue divided by the quantity sold. Mathematically, it can be expressed as: $ext{Average Revenue} = rac{ ext{Total Revenue}}{ ext{Quantity Sold}}$

Step 6

4.2.4 Why do individual firms find it easy to enter a perfect market?

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Individual firms find it easy to enter a perfect market due to the following reasons:

Low Barriers to Entry: There are minimal restrictions or costs for new firms entering the market.
Access to Information: Market conditions and prices are transparent, allowing new entrants to make informed decisions.
No Control by Existing Firms: Established firms do not have significant market power to deter new entrants.

Step 7

4.2.5 Calculate the marginal revenue for market B at quantity 2. Show ALL calculations.

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Answer

To calculate the marginal revenue (MR) for market B at quantity 2, we first need to determine the total revenue (TR) at different quantities.

TR at Quantity 1: Price = R4, TR = 1 × R4 = R4
TR at Quantity 2: Price = R8, TR = 2 × R8 = R16

Now, we find the change in total revenue (ΔTR) as quantity increases from 1 to 2:

$ext{MR} = rac{ ext{ΔTR}}{ ext{ΔQ}} = rac{TR(Q_2) - TR(Q_1)}{Q_2 - Q_1} = rac{16 - 4}{2 - 1} = rac{12}{1} = 12$

Thus, the marginal revenue for market B at quantity 2 is R12.

4.1 Answer the following questions - NSC Economics - Question 4 - 2023 - Paper 2

Worked Solution & Example Answer:4.1 Answer the following questions - NSC Economics - Question 4 - 2023 - Paper 2

4.1.1 Name any TWO groups of workers that benefit from minimum wages.

4.1.2 Why do international tourists prefer South Africa as a tourist destination?

4.2.1 Identify the market in which the demand curve shows a downward slope.

4.2.2 What is the nature of the products sold in a perfect market?

4.2.3 Briefly describe the term average revenue.

4.2.4 Why do individual firms find it easy to enter a perfect market?

4.2.5 Calculate the marginal revenue for market B at quantity 2. Show ALL calculations.

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