structure of the economy Flashcards
What are the primary activities in the economy of South Africa?
Extraction and exploitation of raw materials
Example: Mining of gold and diamonds
What are the secondary activities in the economy of South Africa?
Processing and manufacturing of primary materials
Example: Manufacturing steel and automobiles
What are the tertiary activities in the economy of South Africa?
Provides services to the consumer
Example: Retail, tourism, and banking services
What are the quaternary activities in the economy of South Africa?
High level expertise, eg research, information
Example: Scientific research and data analysis
What are the key sectors that contribute to the GDP of South Africa?
Manufacturing, wholesale and retail trade, financial services, transport, mining, agriculture and tourism
Example: Manufacturing of automobiles and export of agricultural products
What was the economy of South Africa traditionally rooted in?
Primary sectors
Example: Mining and agriculture
What drove the economy of South Africa in the early 1990s?
Tertiary sector
Example: Focus on wholesale, tourism, and communications
What type of economy does South Africa have today?
Knowledge-based economy
Example: Emphasis on technology and financial services
What are some of the economic challenges faced by South Africa?
Poverty, HIV and AIDS, Lack of skills, Unemployment that increases crime, An energy crisis
Example: High unemployment rates leading to increased crime rates
What is Gross National Product (GNP)?
The total value of goods and services produced by the permanent citizens of a country in one year
Example: Calculation includes income earned abroad by citizens
What is Gross Domestic Product (GDP)?
The total value of goods and services produced in one year within the borders of South Africa. GDP is usually quoted as a percentage contribution of one sector of the economy.
Example: GDP measures the economic output of a country
GDP = Consumption + Investment + Government Spending + (Exports-Imports)
What is Economic Geography?
the study of where economic activities are carried out and factors that affect it
Contribution to the Economy
Primary: 11.8%
Secondary: 21.0%
Tertiary: 67.2%
Primary Sectors
Agriculture: 2.4%
Mining: 9.4%
Secondary Sectors
Manufacturing: 13.8%
Utilities: 3.0%
Construction: 4.3%
Tertiary Sectors
Trade: 14.2%
Transport: 8.4%
Finance: 21.6%
Gov services: 16%
Personal: 6.9%
What is GDP of a country?
The value of goods and services produced in that country in one year.
Example: South Africa’s GDP in 2010 was $355 billion.
How is the value of a sector’s contribution determined?
By the value of its contribution to the GDP of the country.
What does the figure quoted represent?
Percentage contribution of one sector of the economy to the GDP.
Example: Agriculture, forestry, and fishing at 4% means the agricultural contribution is 4% of the total GDP.
How has South Africa’s economy evolved since the first half of the 19th century?
It has developed greatly from being totally dependent on agricultural products.
Additional information: South Africa’s economy has diversified and grown beyond agriculture.
What contributed more to the GDP once minerals were discovered?
Mining
Once minerals were discovered, mining contributed more to the GDP.
Which sectors are increasing in importance and value?
The secondary and tertiary sectors
The secondary and tertiary sectors are now increasing in importance and value.
Why are the figures for mining kept separate from agriculture, forestry, and fishing?
The value of minerals is much higher than the value of agriculture, forestry, and fishing.
Although mining is a primary economic activity, the figures are kept separate from agriculture, forestry, and fishing as the value of minerals is much higher than the value of agriculture, forestry, and fishing.
What factors have influenced economic activities in South Africa?
available rain
irrigation schemes
discovery of minerals
government policy on homelands, decentralisation and land reform
the development of towns, roads, railway lines, air links and harbours
These factors have played a significant role in shaping economic activities in South Africa.
