structure of the economy

Question 1

What are the primary activities in the economy of South Africa?

Answer 1

Extraction and exploitation of raw materials

Example: Mining of gold and diamonds

Question 2

What are the secondary activities in the economy of South Africa?

Answer 2

Processing and manufacturing of primary materials

Example: Manufacturing steel and automobiles

Question 3

What are the tertiary activities in the economy of South Africa?

Answer 3

Provides services to the consumer

Example: Retail, tourism, and banking services

Question 4

What are the quaternary activities in the economy of South Africa?

Answer 4

High level expertise, eg research, information

Example: Scientific research and data analysis

Question 5

What are the key sectors that contribute to the GDP of South Africa?

Answer 5

Manufacturing, wholesale and retail trade, financial services, transport, mining, agriculture and tourism

Example: Manufacturing of automobiles and export of agricultural products

Question 6

What was the economy of South Africa traditionally rooted in?

Answer 6

Primary sectors

Example: Mining and agriculture

Question 7

What drove the economy of South Africa in the early 1990s?

Answer 7

Tertiary sector

Example: Focus on wholesale, tourism, and communications

Question 8

What type of economy does South Africa have today?

Answer 8

Knowledge-based economy

Example: Emphasis on technology and financial services

Question 9

What are some of the economic challenges faced by South Africa?

Answer 9

Poverty, HIV and AIDS, Lack of skills, Unemployment that increases crime, An energy crisis

Example: High unemployment rates leading to increased crime rates

Question 10

What is Gross National Product (GNP)?

Answer 10

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

Question 11

What is Gross Domestic Product (GDP)?

Answer 11

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)

Question 12

What is Economic Geography?

Answer 12

the study of where economic activities are carried out and factors that affect it

Question 13

Contribution to the Economy

Answer 13

Primary: 11.8%
Secondary: 21.0%
Tertiary: 67.2%

Question 14

Primary Sectors

Answer 14

Agriculture: 2.4%
Mining: 9.4%

Question 15

Secondary Sectors

Answer 15

Manufacturing: 13.8%
Utilities: 3.0%
Construction: 4.3%

Question 16

Tertiary Sectors

Answer 16

Trade: 14.2%
Transport: 8.4%
Finance: 21.6%
Gov services: 16%
Personal: 6.9%

Question 17

What is GDP of a country?

Answer 17

The value of goods and services produced in that country in one year.

Example: South Africa’s GDP in 2010 was $355 billion.

Question 18

How is the value of a sector’s contribution determined?

Answer 18

By the value of its contribution to the GDP of the country.

Question 19

What does the figure quoted represent?

Answer 19

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.

Question 20

How has South Africa’s economy evolved since the first half of the 19th century?

Answer 20

It has developed greatly from being totally dependent on agricultural products.

Additional information: South Africa’s economy has diversified and grown beyond agriculture.

Question 21

What contributed more to the GDP once minerals were discovered?

Answer 21

Mining

Once minerals were discovered, mining contributed more to the GDP.

Question 22

Which sectors are increasing in importance and value?

Answer 22

The secondary and tertiary sectors

The secondary and tertiary sectors are now increasing in importance and value.

Question 23

Why are the figures for mining kept separate from agriculture, forestry, and fishing?

Answer 23

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.

Question 24

What factors have influenced economic activities in South Africa?

Answer 24

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.