SCHOOL LOGO Assessment Task Grade 8 Term 1 MEMORANDUM QUESTION 1: The Government 1. Read the extract and answer the questions that follows: 1.1. Define the term Government. (2) A government is a group of people who govern the citizens of a country, they are responsible for running the country and making policies and passing laws. (Accept any relevant definition.) MAX. 2 1.2. List the three levels of Government.(1.2.1, 1.2.2, 1.2.3) (3) 1.2.1. Provincial. 1.2.2. Provincial. 1.2.3. Local. NOTE: The levels can be in any order. 1.3. Explain how the Government of South-Africa is elected. (2) The Government of South Africa is elected democratically, which means that all the citizens of the country above the age of 18 can vote in a general election. MAX. 2 1.4. Name the current President of South-Africa. (1) Cyril Ramaphosa. 1.5. Describe any TWO functions of the Government. Operate in the Top level. Make sure the State runs efficiently. Makes up laws that affect the whole country. Make citizens obey the State Laws. (4) (Accept any TWO.) MAX. 4 1.6. Identify the level of government that are responsible for the following services: (10) 1.6.1. Local. 2 1.6.2. National. 1.6.3. National. 1.6.4. Provincial. 1.6.5. Local. 2. Clearly explain the difference between the fiscal policy and the monetary policy. (4) FISCAL POLICY Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply. Sub max. 2 MONETARY POLICY Monetary policy is the process by which the monetary authority of a country, typically the central bank or currency board, controls either the cost of very shortterm borrowing or the monetary base. Often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency. Sub max. 2 MAX. 4 Total Question 1:26 QUESTION 2: The National Budget 2.1. Define the term budget. (2) The Government’s estimate of its income and expenditures. It’s what the Government plans to spend for programmes and projects and where the money will come from. (Accept any relevant definition.) MAX. 2 3 2.2. The main source of income for the national budget is taxes. Name TWO different kinds of taxes that the Government collects. Personal income tax. Corporate income tax. Value added tax (VAT). Company tax. (2) (Accept any TWO) MAX. 2 2.3. Explain the term Sin tax, and give one example. (3) Tax paid on cigarettes, alcohol and sugar to discourage people from buying these items. Sin taxes are used to increase the price in an effort to lower the consumption. Sub max. 2 EXAMPLE: Sugar tax. Alcohol tax Tobacco tax. MAX. 3 2.4. Discuss TWO advantages of a proper budget. The action is based on a study of past experiences. Policies and principles are followed. Operations are controlled. Weaknesses in the Government are exposed. Achievements are highlighted. Wastes are prevented. (4) MAX. 4 2.5. Study the budget of 2021/2022 and answer the questions that follows: 2.5.1. Identify the amount of money is allocated towards: 2.5.1.1. Education. 298.1 Billion 4 (3) 2.5.1.2. Health. 259 billion 2.5.1.3. Safety and security. 220.7 billion 2.5.2. Explain the term social grant and why the government allocate social grants. (4) Social grants are in place to help improve standards of living in society and are given to people who are vulnerable to poverty and in need of state support. Social assistance is an income transfer in the form of grants provided by the government. A social grant refer to grants paid by SASSA, like disability grans, foster care grants and older person’s grant. MAX. 4 2.5.3. Discuss how the national budget are responsible for economical redress of inequalities. (6) The budget provide to pay social grants to people that qualify. Free health services are being offered to citizens who can’t afford medical funds. The budget focus on creating jobs for unemployed people. Skill development and education are encouraged. The Public Works Programme provides temporary jobs. Higher income groups pay more tax than lower income groups. Free education for the poor. Free water and electricity for the poor. Improvement of the countries’ infrastructure. MAX. 6 Total Question 2: 24 GRAND TOTAL: 50 5