EMS Grade 8 Control Test

ECONOMIC AND MANAGEMENT SCIENCE
GRADE 8
MARKING GUIDELINES
TEST 1
TIME: 1 HOUR TOTAL: 50
SECTION A
QUESTION 1
1.1 G√
1.2 C√
1.3 H√
1.4 A√
1.5 F√
1.6 B√
1.7 J√
1.8 D√
1.9 E√
1.10 I√ (1 x 10) (10)
TOTAL SECTION A: 10
SECTION B
QUESTION 2
2.1 What does the abbreviation VAT stand for?
Value added tax√ (1)
2.2 At what rate is VAT charged?
15% √ (1)
2.3 Why is VAT classified as an indirect tax?
Indirect taxes are paid indirectly by an individual when goods and services are
purchased. It is not directly related to the taxpayer's personal circumstances.√√ (2)
2.4 Name any TWO types of indirect tax, other than VAT.
 Fuel levy√
 Excise duty√
 Customs duties√
 Carbon tax√
 Sugar tax√
 (Accept any other relevant example of indirect taxation) (Any 2 x 1) (2)
2.5 Explain what taxes are and why governments charge taxes.
Tax is a compulsory payment by the private sector to the government.√√

Governments levy taxes for the sake of income. Revenue is needed to benefit their
expenses when they provide services and produce goods to benefit
of the country's inhabitants.√√ (4)
QUESTION 3
3.1 Name the TWO components of local government.
 Municipalities√
 District Council√ (2)
3.2 Who has the executive power in a local government?
Mayor√ (1)
3.3 In your opinion, do municipalities succeed in performing their functions

successfully?
Motivate your answer.
No√
MOTIVATION:
 Service delivery in most municipalities is very poor.√√
 No garbage removal takes place, streets are full of holes, etc.√√
 Water and electricity supply are often interrupted because the maintenance of the
infrastructure is not done.√√
 Eskom and the water boards are often not paid either, because there is no money.√√
 Large-scale corruption.√√
 (Accept any relevant motivation) Max. (5)
3.4 Explain why municipalities are described as the 'third level of government'.
National and provincial governments are the two top levels of government above local
government.√√
(2)
3.5.1 Identify a public corporation in the article above.
Eskom√ (1)
3.5.2 Briefly explain the purpose of a public corporation.

Public corporations are enterprises that provide public goods and services and in
is state-owned.√√ (2)
3.5.3 Give any other TWO examples of public corporations.
 Mosgas√
 Krygkor√
 Denel√
 Rand Water√
 SAUK√
 Telkom√
 Transnet√
 (Accept any other relevant examples) (Any 1 x 2) (2)
3.6 Discuss the role of government in the economic cycle of South Africa.
 The national, local and provincial governments employ people from households.√
 The government is therefore a consumer of household labor.√
 The government also provides resources and services to households that can buy
households.√
 Examples of these resources and services are electricity from Eskom and water from
municipalities.√
 Households buy or consume these government services and resources.√
 The government is therefore a producer in the economic cycle.√
 The government levies taxes from households.√
 The national government gives some of these taxes to local and provincial
governments so that they can operate the provinces and municipalities and provide
services that households can use.√
 (Accept any other relevant discussion) Max. (5)
QUESTION 4
4.1 Which person maintains a high standard of living?
B√ (1)
4.2 Define the term 'standard of living'.
Standard of living is the amount of goods and services consumed; it holds

usually related to the level of people's income.√√ (2)
4.3 Name any FOUR variables used to determine the standard of living of
compare different groups of people.
 Income levels√
 Levels of employment vs unemployment√
 Poverty levels√
 Where and how people live√
 Access to and quality of health care and education√
 Infrastructure in the region or country√
 Quality of the environment (eg climate and type of environment) √
 Safety of people√
 (Accept any other relevant variable) Max. (4)
4.4 Briefly analyze how the environment contributes to people's standard of living.
An unhealthy, polluted and unsafe environment makes people sick√ and it makes it
difficult for people to use resources productively.√ It lowers the standard of living.√
(Accept any relevant answer) (3)
TOTAL SECTION B: 40
PAPER TOTAL: 50

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ECONOMIC AND MANAGEMENT SCIENCE

2.1 What does the abbreviation VAT stand for?

Value added tax√ (1)

2.2 At what rate is VAT charged?

2.3 Why is VAT classified as an indirect tax?

Tax is a compulsory payment by the private sector to the government.√√

3.1 Name the TWO components of local government.

3.2 Who has the executive power in a local government?

3.3 In your opinion, do municipalities succeed in performing their functions

3.5.1 Identify a public corporation in the article above.

3.5.2 Briefly explain the purpose of a public corporation.

3.5.3 Give any other TWO examples of public corporations.

4.1 Which person maintains a high standard of living?

4.2 Define the term 'standard of living'.

Standard of living is the amount of goods and services consumed; it holds

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