Photo AI
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
Name any TWO groups of workers that benefit from minimum wages.
Answer
Two groups of workers that benefit from minimum wages are:
- Farm workers
- Domestic workers These groups are often paid at or below minimum wage levels, and the implementation of minimum wage laws helps ensure they receive fair compensation for their labor.
Step 2
Why do international tourists prefer South Africa as a tourist destination?
Answer
International tourists prefer South Africa for several reasons:
- The country boasts a favorable climate, making it attractive year-round.
- It offers beautiful and diverse landscapes, including beaches, mountains, and wildlife reserves.
- South Africa has a favorable exchange rate which can provide more value for money compared to other popular destinations.
- Tourists can experience world-renowned attractions like Kruger National Park and Table Mountain.
- The friendliness and hospitality of the South African people enhance the overall travel experience.
Step 3
Step 4
What is the nature of the products sold in a perfect market?
Answer
The nature of the products sold in a perfect market is that they are homogeneous. This means that all products in the market are identical, leading consumers to perceive no difference among them, resulting in perfect substitutes.
Step 5
Briefly describe the term average revenue.
Answer
Average revenue is defined as the total revenue earned from selling a product divided by the quantity of the product sold. It can be expressed mathematically as:
ext{Average Revenue (AR)} = rac{ ext{Total Revenue (TR)}}{ ext{Quantity (Q)} }In a perfectly competitive market, average revenue is equal to the market price of the product.
Step 6
Why do individual firms find it easy to enter a perfect market?
Answer
Individual firms find it easy to enter a perfect market due to several factors:
- There are no significant barriers to entry, such as high capital requirements or government regulations.
- Firms can quickly adapt to market conditions, as information is accessible and transparent.
- The products are homogeneous, allowing new entrants to compete directly with existing firms without differentiation.
Step 7
Calculate the marginal revenue for market B at quantity 2. Show ALL calculations.
Answer
To calculate the marginal revenue (MR) for Market B at quantity 2, we first need to identify the total revenue (TR) at quantities 1 and 2.
-
Total Revenue at quantity 1: TR(1) = R4
-
Total Revenue at quantity 2: TR(2) = R16
Next, we find the change in total revenue when increasing the quantity from 1 to 2:
ext{MR} = rac{ ext{Change in TR}}{ ext{Change in Quantity}} = rac{TR(2) - TR(1)}{2 - 1} = rac{16 - 4}{1} = R12Thus, the marginal revenue for Market B at quantity 2 is R12.