2.7.1 Plot a labour demand and supply graph on the same axis.

Here are the solutions to the questions:

2.7
2.7.1 Plot a labour demand and supply graph on the same axis.
To plot the graph:

• Draw a graph with the Wage rate on the y-axis and Labour (in thousands) on the x-axis.
• Labour Supply Curve: Plot the following points and connect them to form the labour supply curve:
  • (30, 2000)
  • (60, 2500)
  • (90, 3000)
  • (120, 3500)
  • (150, 4000)
  • (180, 4500)
  • (210, 5000)
• Labour Demand Curve: Plot the following points and connect them to form the labour demand curve:
  • (210, 2000)
  • (180, 2500)
  • (150, 3000)
  • (120, 3500)
  • (90, 4000)
  • (60, 4500)
  • (30, 5000)

2.7.2 Identify the equilibrium wage and equilibrium labour.
The equilibrium occurs where labour supplied equals labour demanded. From the table, this happens at:

• Equilibrium Wage: $\boxed{\text{R3 500}}$
• Equilibrium Labour: $\boxed{\text{120 (thousand)}}$

2.7.3 Calculate the shortage in labour demand if the wage rate was 3 000.
At a wage rate of R3 000:

• Labour supplied = 90 (thousand)
• Labour demanded = 150 (thousand)
• Shortage = Labour demanded - Labour supplied
• Shortage = $150 - 90 = 60$ (thousand) The shortage in labour demand is $\boxed{\text{60 (thousand)}}$.

QUESTION 3

3.1 List FIVE types of inflation

• Demand-pull inflation
• Cost-push inflation
• Hyperinflation
• Creeping inflation
• Galloping inflation

3.2 Explain the concept Bank rate (repurchase rate)
The bank rate (also known as the repurchase rate or repo rate) is the interest rate at which a country's central bank lends money to commercial banks. It is a key monetary policy tool used to influence interest rates throughout the economy, control inflation, and manage economic growth.

3.3 Give THREE components of money used in South Africa.

• Notes and coins in circulation
• Demand deposits (e.g., cheque accounts)
• Short-term and medium-term deposits (e.g., savings accounts, fixed deposits up to 6 months)

3.4 Identify the functions of money from the following statements.
3.4.1 Elsie bought a pair of shoes from Edgar's on credit.

• Medium of exchange

3.4.2 People prefer cars from Mercedes-Benz as compared to Toyota cars.

• Unit of account

3.4.3 I bought bread and milk for the children.

• Medium of exchange

3.4.4 She is so rich she can buy whatever she wants.

• Store of value

3.4.5 Mandla has kept the R2000 for the whole month.

• Store of value

3.5 List FOUR factors that can lead to inequality of wages.

• Differences in education and skills
• Differences in experience
• Discrimination (e.g., based on gender, race, or age)
• Occupational choice and risk (e.g., dangerous jobs, highly specialized professions)