Module 2 - The Economy

What is the definition of government?

A group of individuals exercising control over a country, elected democratically by citizens.

What is the role of government in law making?

To make and enforce laws that promote order in society.

What age must citizens be to vote in South Africa?

18 years of age.

What are some public goods and services provided by the government?

Education facilities (schools, universities), Healthcare clinics and hospitals, Infrastructure (roads, traffic lights, airports)

How does the government protect citizens?

By providing police protection from internal threats and army protection from external threats.

What is the estimated population of South Africa as of June 2022?

60.6 million.

What is a public good?

A tangible item provided by the government for all citizens, e.g., roads.

What is a public service?

A non tangible service provided by the government, e.g., healthcare diagnosis.

What is the government's interaction with households?

Buys factors of production, Levies taxes on households

What is the government's interaction with businesses?

Provides resources and services, Creates a lawful business environment, Earns tax from businesses

What are the three levels of government in South Africa?

National government, Provincial government, Local government

What does the national government in South Africa deal with?

Foreign affairs, Safety and security, Unemployment, International trade

What are the three branches of the national government?

Legislative branch, Executive branch, Judicial branch

What is the role of the legislative branch?

Responsible for making the laws of the country.

Who leads the executive branch of the national government?

President, Deputy President, Ministers

What is the purpose of the judicial branch?

Ensures that justice is served if laws are broken.

How many provinces are there in South Africa?

Nine provinces.

Who leads each provincial government in South Africa?

A premier leads each provincial government.

What is the role of local government in South Africa?

Deals with issues affecting municipalities.

How many municipalities are there in South Africa?

278 municipalities.

What are the four factors of production?

(CELL) Capital, Entrepreneurship, Land, Labour

economics

production

What is another term for land in the context of factors of production?

Natural resources.

What is the first democratically elected President of South Africa?

Nelson Mandela.

In which year did South Africa become a democracy?

1994.

What is capital in terms of production?

All the money and goods invested in the business for production.

What does entrepreneurship involve?

Identifying trade opportunities, taking risks, and organizing production factors.

What is meant by land in production?

Natural resources used in the production process.

Define labour in the context of production.

Mental/physical effort used in business, skilled or unskilled.

What is an example of capital?

Machinery, Vehicles, Equipment

What type of remuneration is associated with capital?

Interest and profit.

What is the role of the government regarding factors of production?

Buys factors from households to produce public goods and services.

Who are civil servants?

Households employed by the government, earning a salary.

What is a state owned enterprise (SOE)?

Government owned businesses providing public goods and services.

Give an example of a state owned enterprise.

Transnet (public transport) and ESKOM (electricity).

What are examples of state owned enterprises in South Africa?

Transnet (provides public transport), ESKOM (provides electricity)

What do households sell to the government?

Factors of production

What does the government pay households for?

Factors of production

What does the government levy on households to provide public goods?

Taxes

What are the three categories of taxes collected from households in South Africa?

Personal income tax, Consumption tax, Excise tax

What is personal income tax also known as?

Pay As You Earn (PAYE)

How is personal income tax structured in South Africa?

Progressive rate (higher income = higher tax rate)

What is the rate of Value Added Tax (VAT) in South Africa?

15%

Who is responsible for tax

related matters in South Africa?