Economic Structure of South Africa

Question 1

Define the primary sector

Answer 1

Industries that get raw materials from nature, first stage of production

Question 2

List the economic importance of the primary sector (8)

Answer 2

Earns foreign exchange (Exporting)
Trains workers and creates job opportunities
Provides raw materials for secondary industries
Contributes to GDP
Sources of capital formation
Stimulation of research and development
Sources of state income
Positive influence on infrastructure

Question 3

Define the Secondary Sector

Answer 3

Industries that change natural resources into a form that is suitable for human use
Also known as manufacturing

Question 4

List the economic importance of the Secondary Sector (6)

Answer 4

Makes a significant contribution to the GDP
Creates job opportunities
Ensures economic independence
Earns foreign exchange (Exports)
Is an important area for investment
Ensures strategic importance in Africa

Question 5

Define the Tertiary Sector

Answer 5

Distributes goods and provides services

Question 6

List the economic importance of the Tertiary Sector (4)

Answer 6

Contributes to the GDP
Creates job opportunities
Is a source of income for the state
Creates a market for consumer goods

Question 7

What are the backbones of economic activity in any country

Answer 7

Communication, transport and other infrastructure

Question 8

What does the infrastructure of a country do

Answer 8

Ensures the factors of production as well as consumer goods and services will be available at the right place and time

Question 9

What are the 3 types of infrastructure

Answer 9

Communication
Transport
Energy

Question 10

What is the economic importance of communication (4)

Answer 10

Wireless technology enables entrepreneurs to set up small businesses from anywhere in the country
Knowledge is gained through communication, this helps entrepreneurs
Makes an important contribution to the GDP
Source of employment for all levels of labour

Question 11

What is often referred to as the fifth factor of production

Answer 11

Energy

Question 12

What is the economic importance of transport (4)

Answer 12

It brings the consumer and producer together
International transport links make valuable contributions to the GDP
Upgrades to transport infrastructure act as a spur for tourists to enter the country
Infrastructure such as a harbour creates a hub for new businesses

Question 13

What is the economic importance of energy (3)

Answer 13

Crucial to the functioning of modern society
Includes energy for industry, domestic consumption, transportation and the business world
Using technology to generate electricity from renewable sources is one of the growth sectors identified by the state