Activity 1: Distinguish between macro and micro economics.

Which are the following are macro-economic issues and which are
micro-economic issues? State if you think that some are both.
1.1. Unemployment. (2)
1.2. The wages of workers in the mining sector (2)
1.3. The rad/dollar exchange rate (2)
1.4. The interest rate in South Africa (2)
1.5. The 6% growth rate of the South African economy (2)
1.6. The decline of the gold price. (2)
2. Look in today's newspaper and find out other examples of micro or macroeconomic issues. Say which each one is. (8)

Activity 2: List factors that affect demand

1. List four factors that would increase your demand for bread at every price
level. (4)
2. List four factors that would decrease your demand for bread (i.e. lower the
quantity of bread you demand at each price level).
(4)
Total 8
Activity 3: Discuss the impact of the internet on consumer spending
1. With a partner, go to a bookstore and choose a book and a DVD to
investigate. Write down the price of each one.
(1)
2. Find the price of the same book and same DVD on amazon.com.
(1)
3. Find the price on a South African site like kalahari.com.
(1)
4. Draw up a table with your prices.

(2)
5. List four reasons why these prices differ.
(2x2)
6. Where would you buy your book and DVD from and why?
(1)
Total 10
Activity 4: Identify the causes of business cycles
Identify the causes of economic cycles (exogenous or endogenous) in each of
the following examples.
1. Thembi decides to start saving money because of an article she read in
the newspaper discussing the economy of South Africa.
(2)
2. A group of army generals overthrows the government and start ruling the
country.
(2)
3. The government decides to increase the interest rates of banks.
(2)
4. There is a severe drought in the Swartland and the wheat crops die.
(2)
Activity 5: Draw a flow diagram
Draw a simple circular flow diagram of the economy to show the interaction
between households and business enterprises. Label the money flows and
real flows in this diagram.
(16
marks)

Activity 6: Identify interactions in the economy

1. Name the four main participants in the economy of a country.
(8)
2. Work with a friend and explain to each other the steps in the interactions
between business and households. Draw a flow chart to help you with your
explanation. (16)

(24 marks)