Contemporary

Tourism

Tourism brings spending into the economy that creates jobs, earns foreign exchange and multiplies through local businesses.

CAPS

Grade 12 · Economics · Contemporary

Economics wants the concept, then the diagram or the data, then the consequence.

  • The papers

    Paper 1 is macroeconomics and economic pursuits. Paper 2 is microeconomics and contemporary economic issues. Each paper is 150 marks.

  • How to write it

    Define the term as CAPS uses it. If a graph is asked for, label both axes, the curves, and the equilibrium or the shift. Then say what happens to price, quantity, growth, inflation or unemployment. A curve with no labels does not explain.

  • How a marker reads it

    A common mix-up is calling South Africans' holiday spending overseas an export, when it is an import of services.

Essays are marked on the introduction, a body that applies the theory, and a conclusion that answers the question. A list of definitions is not an argument.

ABN

Worked theory

Worked theory. Visitors spend R10 million at lodges near Kruger National Park. If locals spend 60c of every extra rand locally, the multiplier is 1(1 − 0,6) = 2,5, so local income rises by R25 million.

More worked examples

  • Township tour

    A tour company in Soweto employs local guides and takes visitors to family-run restaurants. Most of the spending stays in the community, so leakages are small.

  • Visa rules

    Making visas easier for visitors from fast-growing markets increases arrivals. Hotels fill, more staff are hired and foreign exchange earnings rise.

In ordinary words

A foreign visitor's spending is an export of services and improves the balance of payments. Each rand spent at a lodge becomes income for guides, cooks and farmers, who spend part of it locally, so the final income is larger than the first injection. Leakages such as imported goods and foreign-owned hotels reduce the effect.

In South Africa

A craft market beside a lodge gate near Kruger National Park.

Part 1 / 4

What it is

Tourism brings spending into the economy that creates jobs, earns foreign exchange and multiplies through local businesses.

More worked examples

Board walkthroughs on this topic. Open one, copy the working, then try the next.

Example 1 / 20

Tourists spend R8 million in a town where the mpc is 0,75. Calculate the final increase in income.

4. Step-by-step working

  1. 01

    Multiplier

    10,25=4.

  2. 02

    Multiply

    4×R8 m=R32 m.

How we got there

Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.

Explain in another language · 11

1. What is the question asking?

Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: Tourists spend R8 million in a town where the mpc is 0,75. Calculate the final increase in income.

Before any working — hunt first

Given

Numbers and units already in the sentence: R8 million · 0,75. Copy each one into a column. A name without a number is not given.

Missing

After you copy the given, the letter that still has no number is missing. The paper is pointing at: the final increase in income. Circle that word — that is the missing variable.

Find

We are required to find: the final increase in income. Write that as a symbol on the left, with a question mark, before you touch a formula.

Calculate

What we need to calculate: Multiplier = 1(1 − mpc). Then substitute the given, one line at a time, to get the final increase in income.

In other words — as if you have never seen this before

If you have never seen this before: Multiplier = 1(1 − mpc). We will name a method in words, write the formula with no numbers, then substitute one line at a time.

2. What do we already know?

Injection R8 m; mpc 0,75.

3. Which method — and why this one?

Multiplier=1(1 − mpc).

4. Step-by-step working

  1. 01 / 05

    Multiplier

    10,25=4.

    Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.

  2. 02 / 05

    Multiply

    4×R8 m=R32 m.

    Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.

  3. 03 / 05

    Step G — Sense-check the size

    Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.

    Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.

  4. 04 / 05

    Step F — Box the answer with its unit

    R32 million.

    Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.

  5. 05 / 05

    Step H — What the marker is looking for

    On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.

    Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.

5. The answer

R32 million.

Copy onto your answer sheet — in this order

Answer: R32 million.

6. Check it like a marker

Leakages lower the mpc and the multiplier.

7. A trap first-timers fall into

First-timers often grab the first formula they remember, mix units (cm with m, minutes with seconds), or drop a minus sign. Write the formula in words first: “this equals that, because…”

Ntsako · fx-991ZA PLUS. Tap to calculate.