Redistribution Methods p142

Question 1

An objective of the government is to ensure economic equity. They therefore need to REDUCE the size of the income gap between RICH and POOR. There are 4 ways to do this….

Answer 1

1) Taxation
2) Social security programmes
3) Minimum wage
4) Redress policies

Question 2

Most governments use the ……….. tax system, which means: those who EARN more, PAY more

Answer 2

progressive

Question 3

Government uses money received from taxation to pay for its SOCIAL SECURITY PROGRAMMES. Name a few :

Answer 3

food parcels
free education
free medical services

Question 4

The benefits from SOCIAL SECURITY PROGRAMMES help improve the standard of living of the ………a……… groups and reduce the ……b…….. gap

Answer 4

a) low-income
b) inequality

Question 5

Government can impose a minimum wage requirement. This is to ensure that workers meet the minimum standard of living. It is also called the ………. minimum wage

Answer 5

statutory / legal

Question 6

During apartheid a section of the community was EXCLUDED from the mainstream economy. The government has implemented a number ……….. policies

Answer 6

redress

Question 7

Black ………. Empowerment (BEE) is a policy to adress the inequalities

Answer 7

Economic

Question 8

Name a few REDRESS POLICIES

Answer 8

1) BEE
2) Development of small business
3) Preferential procurement
4) Women empowerment
5) Land reform projects

Question 9

What is the aim or goal of BEE?

Answer 9

• SCRAP the policies preventing black
  majority from the mainstream economy
• INCREASE no of black people owning
  businesses
• INCREASE no of black people in senior
  management
• INCREASE INCOME LEVELS of black people
• INCREASE NEW black businesses

Question 10

The National Small Business Act (1996) was introduced to create an environment for …………. (SMMEs)

Answer 10

small, medium and micro-enterprises

Question 11

Preferential procurement: The Green Paper on Public Sector Procurement Reform (1997) recommended to award ……. to black people, instead of buying supplies from the market.

Answer 11

tenders

Question 12

A big majority of women in rural areas are unemployed. The …………………will help to bridge the inequality gap

Answer 12

National Gender Policy Framework (2003)

Question 13

During apartheid area, some African people lost their land. The government introduced laws that are aimed at …………. land

Answer 13

restoring