ECONOMIC AND MANAGEMENT SCIENCES GRADE 8 ASSIGNMENT: DATA RESPONSE 2023 TERM 1 MARKS: 50 SCHOOL: ______________________________________ LEARNER: _____________________________________ DECLARATION BY LEARNER: I HEREBY CONFIRM THAT ALL INFORMATION CONTAINED IN THIS DOCUMENT IS MY ORIGINAL WORK. ______________________ SIGNED ______________ DATE EXAMINER:__________________________________ MODERATOR:________________________________ TOPIC: THE GOVERNMENT Read the following news item and answer the questions that follow: GOVERNMENT GETS SMALL-SCALE SUGARCANE FARMERS MOVING The government has donated a rail loading facility which is set to benefit small scale sugarcane farmers in Umkhanyakude District. Nearly 2 000 small-scale sugarcane farmers who could no longer afford to transport their crop by road, are set to boom, thanks to a rail loading facility donated to them by government. Small-scale sugarcane growers in Umkhanyakude District in the north of KwaZulu-Natal have welcomed the opening of a R38 million rail siding trans-loading facility that will significantly cut their transport costs. Over 1 900 small-scale sugarcane farmers who are part of the Makhathini irrigation scheme will save R6.8 million per year because they no longer must use trucks to transport their sugarcane. They produce around 117 000 tons a year. With the rising cost of fuel, the recent handover by the Minister of Agriculture, Land Reform and Rural Development, Thoko Didiza, could not have come at a better time. Farmers were paying R170 per ton to transport their sugarcane to the Felixton mill – nearly 120km away, with Tongaat Hulett covering the balance of the cost. This will now drop to R112 per ton, says Madlala. Another benefit of switching to rail, to transport the crops, is that they will be protected from the sun and rain. Weather damage has in the past caused the farmers to get less money for their sugarcane. The Mkhuze siding machine will help transport three times more per load than the trucks could. During the handover, Minister Didiza said that 25 people have already been hired as controllers, operators, road weighbridge clerks, cleaners, rail tractor operators, secu rity, and site supervisors. “The infrastructure will reduce production costs while reducing highway congestion by transporting tons of cane through cargo trains. Young people have opportunities,” she said, telling the story of a young man in the control room who studied computer technology, which he can now use in the agricultural industry. Didiza also handed over heavy-duty machines, farming implements and other products valued at R10 million to growers. By GCIS Vuk’uzenzele 06-07-2022 09:31 https://bit.ly/3VtzNKz 2 QUESTION 1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 Which level of government runs a district? (1) How is Umkhanyakude district municipality different to eThekwini (Durban) municipality? (2) Explain the term infrastructure. (2) How much money will the Makhathini irrigation scheme save when rail transport is used? (1) Which level of government does Thoko Didiza belong to, and which branch does she belong to? (2) Name the other TWO branches at this level of government. (2) According to the circular flow of income and spending diagram, from which of the three sectors do labourers come from? (2) Draw up a table as shown, but do not write the information next to the numbers. Only write the number in the first column. Place a tick in the correct box to indicate your choice. The first point has been completed already: (7) Flow of income Households Businesses Government 1 Receives taxes from the other participants Financial Institutions 2 Pays company tax 3 Earns wages from the other participants 4 Makes loans to households and businesses 5 Sells goods and services to the other participants 6 Provides labour to the government and businesses 7 Pays personal income tax 8 Provides goods and services such as fixing potholes 1.9 1.10 Which branch of national government is responsible for making the laws of the country? (1) Draw a diagram to show how Umkhanyakude (Government) and households are both producers and consumers. (5)[25] 3 TOPIC: THE NATIONAL BUDGET Read the following sources of information and respond to the questions that follow: Study the information and answer the questions. Budget 2022 in a nutshell - Everything you need to know South Africa’s government finances are turning the tide, the Finance Minister said on Wednesday. Still, he warned that government debt was dangerous: it has reached R4.3 trillion and is projected to rise to R5.4 trillion over the medium term. On average, 20 cents of every rand collected in government revenue is now being spent on debt repayments, which is crowding out spending on health and basic education. But the good news was that tax revenue collected for the past year was R182 billion more than budgeted, thanks in part to stronger-than-expected personal income tax collections and VAT - but mostly due to mining companies that benefitted from a boom in commodity prices. Tax reprieve This year’s budget brought some welcome news, with the corporate income tax cut from 28% to 27%. Personal income tax brackets have also been adjusted to bring relief. For the first time since 1990, there will be no hike in the fuel or Road Accident Fund levy. Hikes in excise duties on alcohol and tobacco were kept in line with inflation (between 4.5% and 6.5%) – from above 8% last year. After collecting R1.55 trillion in tax last year, South Africa’s tax-to-GDP rate of 24.7 per cent exceeds previous highs reached in 2007/08 and 2019/20. Social grants Monthly social grants have been hiked by between 1.9%, for foster care grants, and 5% for old age, care dependency and disability. QUESTION 2 2.1 Who is the Minister of Finance? (1) 2.2 What percentage of the Government’s income is being spent on debt? (2) 2.3 Which two services that the Government supplies are negatively influenced by the debt? (2) 2.4 Name two direct taxes mentioned in the text. (2) 2.5 From which indirect tax does the Government receive the most income – write the name out in full. (2) 2.6 How/when do consumers pay the fuel levy and the road accident fund? (1) 2.7 Explain what ‘inflation’ is. (2) 4 2.8 Give another common name for excise duties on alcohol and tobacco and explain why it is called this. (2) 2.9 Explain what social grants are and provide an example. 2.10 Name any three services that the Government is able to supply through the tax that they receive. (3) 2.11 How much tax do businesses pay according to the text? 2.12 Explain what VAT is and list two items that are VAT free. TOTAL: 5 50 (3) (1) (4) [25] 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 Higher Order CREATING EVALUATING APPLYING ANALYSING Middle order UNDERSTANDING Lower order REMEMBERING QUESTION 1 2 2 1 2 2 2 7 1 5 1 2 2 2 2 1 2 2 3 3 1 4 Departmental Requirement 40% 40% 20% ACTUAL % 38% 44% 18% 6 ECONOMIC AND MANAGEMENT SCIENCES GRADE 8 ASSIGNMENT: DATA RESPONSE 2023 TERM 1 MARKS: 7 50 Grade 8 EMS data response – Term 1 - MEMORANDUM QUESTION 1 1.1 Which level of government runs a district? (1) Local 1.2 How is Umkhanyakude district municipality different to eThekwini municipality? (2) eThekwini is a Metropolitan city. It does not have local municipalities like Umkhanyakude. 1.3 Explain the term infrastructure. (2) Infrastructure is composed of physical structures such as roads, railways, bridges, tunnels, water supply, sewers, electrical grids, and telecommunications. (any e.g.’s) 1.4 How much money will the Makhathini irrigation scheme save when rail transport is used? (1) R6,8 million 1.5 Which level of government does Thoko Didiza belong to, and, which branch does she belong to? (2) National Cabinet/Executive 1.6 Name the other TWO branches at this level of government. (2) Parliament and Judiciary 1.7 According to the circular flow of income and spending diagram, from which of the three sectors do labourers come from? (2) Households 8 1.8 Draw up a table as shown, but only write the number in the first column. Place a tick in the correct box to indicate your choice. The first point has been completed already: (7) Flow of income Households Businesses Government 1 Receives taxes from the other participants 2 Pays company tax 3 Earns wages from the other participants 4 Makes loans to households and businesses 5 Sells goods and services to the other participants 6 Provides labour to the government and businesses 7 Pays personal income tax 8 Provides goods and services such as fixing potholes 2. Businesses 3. Households 4. Financial institutions 5. Businesses 6. Households 7. Households 8. Government 1.9 Financial Institutions For easy marking Which branch of national government is responsible for making the laws of the country? (1) Parliament. 1.10 Draw a diagram to show how Umkhanyakude (Government) and households are both producers and consumers. (5)[25] Public goods/services Labels and arrows MD Factors of production 9 [25] QUESTION 2 2.1 Who is the minister of Finance? Enoch Godongwana (1) 2.2 What percentage of the Government’s income is being spent on debt? (3) 20% 2.3 Which two services that the Government supplies are negatively influenced by the debt? (2) Health and basic education MD 2.4 Name two direct taxes mentioned in the text. (2) Direct - Personal Income tax /Corporate tax 2.5 From which indirect tax does the Government receive the most income – write the name out in full. (2) VAT 2.6 How/when do consumers pay the fuel levy and the road accident fund? (1) When they pay for petrol MD 2.7 Explain what ‘inflation’ is. (2) A general increase in the prices of goods and services. 2.8 Give another common name for excise duties on alcohol and tobacco and explain why it is called this. (2) Sin taxes. It is considered to be unhealthy products. MD 2.9 Explain what social grants are and provide an example. (3) Money which is given to poor people to help them survive. EG Pension; foster care etc. MD 2.10 Name any three services that the Government is able to supply through the tax that they receive. (3) Education; Health Care; Housing; Transport; Water etc. 2.11 How much tax do businesses pay according to the text? (1) 27% 2.12 Explain what VAT is and list two items that are VAT free. (4) Value added tax charged on goods and services. Fruit and vegetables,Milk, brown bread, eggs, ETC [25] [50] 10