Module 2 Class Exercises 2022 Answers

DEVELOPMENT STUDIES EXERCISES
MARKING SCHEMES
MODULE 2: PRODUCTION, CONSUMPTION & INVESTMENT
MASUNGA SENIOR SECONDARY SCHOOL Labour: There is need for workers to provide labour in the production process
DEVELOPMENT STUDIES 3 (a) What is meant by communal land ownership?
Module 2: Production, Consumption & Investment
- Communal land ownership refers to land accessible to a group of people without
Class Exercise 1: Marking Scheme owning it/ land belonged to the tribe or society and land board oversee its
allocation
1 (a) Define production.
(b) Give three advantages of communal land ownership.
- Production is a process whereby natural resources are transformed into more useful
goods/commodities - The advantages of communal land ownership is that everyone in society has
- Production is any economic activity that satisfies human needs and wants access to land
- Production is any process whereby natural resources and human effort are used to - The communal land is free
provide goods and services - The communal land is allocated fairly because no one is allowed to grab land
(b) Describe any three factors of production. 4 (a) What is meant by leasehold (renting) land ownership?
- Land refers to the whole of the earth’s surface together with all natural resources - Leasehold land ownership is when land owners rent out their land out to
found on tenants for a fee
- Labour refers to the human effort, both physical and mental, that is directed towards
the production of goods and provision of services / OR work done by people to (b) State three disadvantages of leasehold land ownership.
produce goods and services
- Capital refers to things people use to produce goods and provide services (e.g. tools, - The disadvantage of leasehold land ownership is that rent has to be paid whether
machinery, factories) and money saved up and used to buy such things there has been production or not.
- Enterprise is the organization (management) of land, labour and capital in the - The tenant is unable to use it to raise capital.
production process with the intention of making profit. - The tenant can misuse land.
*Simple mentioning without definition is unacceptable 5(a) What is meant by private (freehold) land ownership?
2 (a) What is meant by public land ownership/state land? - Private land ownership is when land is owned and controlled by individuals or
companies
- Public land ownership is when the state or nation owns land. There are rules on
who has the right to fields. For example, Botswana and Lesotho of Land
Board/Land committee
(b) Give three advantages of private land ownership.
(b) Describe three ways by which the factors of production can affect the - The advantage of private land ownership is that land can be used as a security to
obtain loans.
production process.
- The land can be sold to raise capital.
- The advantage of private land ownership is that land is carefully looked after by
Land: The way by which land can affect production is that if land is unfertile crop
the owner.
production will be low / poor pasture for livestock
- The land can be used by anybody can buy land as long as he or she has the
Capital: The Capital / money can affect production because it is needed to pay workers,
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money
buy machinery and tools
Masunga Senior Secondary School Development Studies Class Exercises Marking Schemes Module 2
MASUNGA SENIOR SECONDARY SCHOOL (ii) Suggest problems that people might face when they own land communally.
DEVELOPMENT STUDIES - The problem that people might face when they own land communally is that land
may be degraded or people ignore good practices
Module 2: Production, Consumption & Investment - The problem that people might face when land is communally owned is that of
overgrazing or overstocking
Class Exercise 2: Marking Scheme - Soil erosion is the problem that people might face when land is owned
communally.
1. Study Fig. 1 which shows different types of land ownership. - The banks reject land owned communally as a form of security for loan
- The deforestation may occur if land is owned communally, for example, cutting
down trees for firewood
- The problem faced by people when land is owned communally is that of over
harvesting of veld products or depletion.
- The conflicts over usage of land may take place if the land is owned communally.
- The land can be taken anytime by the government if it is owned communally
- The communal land cannot be sold
- Failure to develop the land
(b)(i) Describe the use of any three factors of production in hunting and
gathering society.
- The Land is used in Hunter gatherers for hunting wild animals and collecting
(a)(i) Describe each type of land ownership shown in Fig.1. fruits and plants in their territories
- Labour in hunting and gathering societies is provided by members of
- Collective land ownership is when people in the local community own and use
tribe/labour is divided according to gender where men hunt and women gather
land together, for example, in Tanzania after independence families owned
- Capital in Hunter gatherers own simple tools for hunting/own simple bows,
chunks of land together, shared work and farming machinery.
poisoned arrows, clubs etc
- Entrepreneurship : Hunter-gatherers use traditional knowledge and skill passed
- Private land ownership is the land owned by individuals and companies, for
down to them by their ancestors over the years
example, Molapo estate in Francistown and Phakalane in Gaborone.
- Public land ownership is when the state or nation owns land. There are rules on
(ii) Suggest reasons why hunting and gathering is practised by very few societies
who has the right to fields. For example, Botswana and Lesotho of Land today.
Board/Land committee.
- The reason why hunting and gathering is practised by very few societies is that of
- Renting land ownership is when people use land through paying the owner increased population/ people are more than wild animals /shortage of land
some amount of money or annually - The establishment of game reserves and national parks lead to hunting and
gathering being practised by very few societies today.
- Share cropping land ownership is when people use somebody’s land to grow - The hunting and gathering is practised by very few societies today because of
crops, for farming and pay the land owner with part of the harvest or crop. environmental laws that controls hunting of wild animals.
- The government development plans which need people to be settled
- Cordon fences that restrict movement of wild animals lead to having few
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societies still practising hunting and gathering today.
- Modernisation of hunter gatherers, for example, need to attend formal schools
- Outbreak of diseases attacking wild animals
- Provision of water by government, for example, boreholes.
- Encroachment of pastoral farming into wildlife areas.
- Overgrazing that has depleted edible plants. MASUNGA SENIOR SECONDARY SCHOOL
- Construction of cordon fences that has disrupted migratory routes of wild
animals. DEVELOPMENT STUDIES
- Increased population that has reduced the land available for a nomadic life.
- Government resettlement programmes like Remote Areas Dwellers (R.A.D) Module 2: Production, Consumption & Investment
- Increasing levels of education amongst the Basarwa.
- Anti-poaching laws that prevent Basarwa from hunting
Class Exercise 3
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(a)(i) Describe each type of land ownership shown in Fig. 1. (b)(i) State the problems of using a capital intensive method of production for a
developing country.
- Communal land ownership refers to land owned by the tribe or society or land
boards oversee land allocation or land is accessible to a group of people without - The problem of using a capital intensive method of production for developing
owning it. country is that pollution to the environment is common or it causes pollution to
- Public land ownership refers to land that belongs to government or state or the the environment due to the use of complex technology.
government uses land for its purposes, for example, building dams, schools and - Capital intensive leads to high unemployment rate because of the use of complex
game reserves or state authority or land boards oversee land allocation. technology which require few people to operate.
- Private land ownership refers to land owned by individuals or companies or - The problem of using capital intensive method of production in a developing
owner is free to buy and sell land or owner has title deed. country is that it leads to loss of craftsmanship or skills or loss of culture.
- Renting refers to land that is being used by a person other than the owner and - Capital intensive method of production requires skilled labour or does not absorb
paying a (monetary) fee for usage or a tenant uses land and pays money to the unskilled labour because of the use of complex technology.
landlord or owner. - The problem of using capital intensive method of production for a developing
country is that it can lead to use of inappropriate technologies.
(ii) Land ownership in Botswana is largely communal. Suggest problems that - Capital intensive method of production may lead to depletion of natural resources
communities in Botswana might face in trying to improve production in because it depends on the use of complex technology.
agriculture. - The problem caused by capital intensive method of production is that of land
degradation due to the use of complex technology, for example, deforestation and
- The problem that communities in Botswana might face in trying to soil erosion.
improve production in agriculture is that land cannot be sold to raise capital.
- The problem that communities in Botswana might face in trying to improve (ii) Explain how developing countries can raise capital for production.
production in agriculture due to communal land ownership is that the user is
unable to use it as collateral or security to obtain loan. - The developing countries can raise capital for production through international
- The communities in Botswana might face the problem of land degradation or soil loans or borrowing.
erosion or deforestation in trying to improve production in agriculture because of - The privatisation of parastatals or selling of parastatals shares can help
land communal ownership. developing countries to raise capital for production.
- There is easy spread of animal and plants diseases or pests. - The developing countries can raise capital for production through taxation, for
- The problem that communities in Botswana might face in trying to improve example, income tax paid by employees or workers and value added tax (VAT)
production in agriculture is that of unfair distribution of land or corruption. paid by consumers.
- The land ownership in Botswana is largely communal which makes it impossible - The capital for production in developing countries can be raised through
to control breeding. licensing, for example, business licenses, driver’s licenses and hunting licenses.
- There can be conflict over usage of land to improve agricultural production by - The developing countries can raise capital for production through fees, for
communities in Botswana because land ownership is largely communal. example, school fees.
- The problem faced by communities in Botswana to try and improve agricultural - The capital for production in developing countries can be raised through penalties
production is because land can be taken anytime by the government or people can to people who break the law, for example, over speeding fines or speed traps.
be relocated anytime to pave way for developments. - The capital for production in developing countries can be raised through lotteries.
- The developing countries can raise capital for production through joint venture,
for example, the government of Botswana and Debeers which is responsible for
mining and selling diamonds.
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MASUNGA SENIOR SECONDARY SCHOOL (a)(i) Describe each factors of production shown in Fig.1 above.
DEVELOPMENT STUDIES - Land refers to the whole of the earth’s surface together with all natural resources
found on it
Module 2: Production, Consumption & Investment - Labour refers to the human effort, both physical and mental, that is directed towards
the production of goods and provision of services / OR work done by people to
Class Exercise 4: Marking Scheme produce goods and services
- Capital refers to things people use to produce goods and provide services (e.g. tools,
1. Study Fig. 1 which shows factors of production and answer questions 1(a)(i) machinery, and factories) and money saved up and used to buy such things.
and (ii). - Enterprise is the organization (management) of land, labour and capital in the
production process with the intention of making profit.
*Simple mentioning without definition is unacceptable
(ii) Suggest two ways by which any three of the factors of production mentioned
above can affect the production process.
Land:
- If land is unfertile crop production will be low / poor pasture for livestock
- If there is shortage of water there will be poor harvest / poor pasture for livestock
- There has to be land to start a production process
Capital:
- Capital / money is needed to pay workers

- Capital is needed to buy machinery & tools
- We need capital goods to start a production process
Labour:
- There is need for workers to provide labour in the production process

- The labour has to be trained & motivated to be efficient / productive
- The labour needs to be managed and/or coordinated for optimum production
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Fig. 1
(b)(i) Describe the characteristics of production amongst the hunting and MASUNGA SENIOR SECONDARY SCHOOL
gathering societies.
DEVELOPMENT STUDIES
- Simple technology/tools/labour intensive
- Gender based division of labour/women gather/men hunt Module 2: Production, Consumption & Investment
- Communal use of land/hunting areas
- Dependence on natural resources Class Exercise 5: Marking Scheme
- Subsistence production
- Craftsmanship production/use of traditional skills 1.(a) Define capital.
- Capital refers to things people use to produce goods and provide services (e.g. tools,
(ii) Describe ways of raising capital for production. machinery, factories) and money saved up and used to buy such things
- Capital is the money, machinery technology and buildings that is used to produce
- The way of raising capital for production is through saving which is abstaining goods.
from consumption and putting the money in the bank to earn interest.
(b) Describe any three ways of raising capital for production.
- The capital for production can be raised through borrowing from the banks and
financial institutions. - The way of raising capital for production is through saving which is abstaining
from consumption and putting the money in the bank to earn interest.
- The way of raising capital for production is through International loans from - The capital for production can be raised through borrowing from the banks and
other countries, the World Bank and International Monetary Fund. financial institutions.
- The way of raising capital for production is through International loans from
- The capital for production can be raised through investment which is putting other countries, the World Bank and International Monetary Fund.
money into a business with the hope of earning profit. - The capital for production can be raised through investment which is putting
money into a business with the hope of earning profit.
- The way of raising capital for production is through shares which is putting - The way of raising capital for production is through shares which is putting
money in the business to get a certain percentage of profit made. money in the business to get a certain percentage of profit made.
- The capital for production can be raised through Taxation which is done by the
- The capital for production can be raised through Taxation which is done by the government. It taxes workers and companies to raise money for development.
government. It taxes workers and companies to raise money for development.
2.(a) Define simple technology.
- Simple technology is the use of hand tools to produce goods and services, for
example, hoes, knives.
-
(b) Describe three advantages of simple technology.
- Simple technology is cheap and made form local materials.

- Simple technology causes less pollution to the environment.
- The advantage of simple technology is that it encourages craftsmanship.
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- Simple technology creates employment for many people.
3(a) What is meant by intermediate technology? (b)Describe three factors determining use of appropriate technology.
- Intermediate technology is the use of simple manually operated machines to - The factor that determine use of appropriate technology is that of levels of
produce goods and services, for example, hand sewing machine, ox-drawn mould development as developed societies tend to concentrate on the use of complex
board plough. technology while developing societies concentrate on simple and intermediate
technology.
(b) Give three disadvantages of intermediate technology. - The use of appropriate technology is determined by Education and
skills/Availability of appropriate skills and knowledge, for example, complex
- Intermediate technology is strenuous to use because it needs a lot of human technology needs highly educated and skilled people to operate and maintain
effort. while simple technology and intermediate technology need less skills and
- Intermediate technology leads to low productivity because of use of simple education.
machines. - The factor that determine use of appropriate technology is that of
- Intermediate technology produces lower quantities of of goods because of the use capital/Cost/Affordability because complex technology is expensive to buy and
of simple machines. maintain therefore only the rich countries can afford it. Developing countries are
poor hence the technology they can only afford to use simple and intermediate.
4(a) What is meant by complex (advanced) technology? - The use of appropriate technology is determined by employment creation,
developing countries like Botswana have high unemployment levels hence need
- Advanced/Complex technology is the use of very big and simple and intermediate technology that are labour intensive. Complex
sophisticated/advanced/modern machinery to produce goods and services on a large technology would be inappropriate as it would lead to high rates of
scale. Most of the machinery is automatic, power driven i.e. uses electricity and/or unemployment.
oil, for example, a tractor, combined harvester, computer, etc. - The factor that determine use of appropriate technology is that of environmental
risks/Adaptability, for example, simple technology causes less pollution while
complex technology causes pollution.
(b) Describe three advantages of complex technology.
Section B
- The advantage of complex technology is that high quality goods are produced.
6. Fig. 1 below shows two different modes of production. Use it to answer
- Complex technology is very fast and efficient because of use of machinery.
questions (a) and (b).
- Complex technology lead to mass production of goods due to the use of
machinery.
5(a) What is appropriate technology?
- Appropriate technology is the skills, machinery/tools that are best suited to a

particular locality, which the locals would be able to afford and maintain
- Appropriate technology refers to tools, skills and machines that are best suited
for particular conditions in society.
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(a)(i) Which diagram, A or B, shows labour intensive production? MASUNGA SENIOR SECONDARY SCHOOL
- A DEVELOPMENT STUDIES
(ii) Which mode of production, A or B, is suitable for large scale production? Module 2: Production, Consumption & Investment
- B Class Exercise 6: Marking Scheme
(b) Give two characteristics of the type of production shown by diagram B. 1.(a) What is labour intensive production?
- Labour intensive production is a way/process of making goods and providing

- The characteristics of the type of production shown by diagram B is that it is services which relies heavily on the use of human manual effort
expensive.
- The type of production shown by diagram B is that of mass production goods. - Labour Intensive Production relies heavily on the use of simple technology and
manual labour.
(c) Give three advantages of a capital intensive mode of production.
(b)Give three advantages of labour intensive production.
- The advantage of a capital intensive mode of production is that greater opportunity to
use machinery / quick and efficient method of production - The labour intensive production helps create employment to a large number of people
- Capital intensive mode of production leads to production of quality goods - Labour intensive production is cheap to run and maintain / little capital required since
- The advantage of capital intensive mode of production is that of mass production simple technology used in making of goods and services
which makes goods cheaper - The advantage of labour intensive provides workers with an opportunity to train on
- Capital intensive production lead to acquiring skills of operating machines / skills the job
development / creates a lot of skilled manpower - Labour intensive production causes less pollution / destruction of the environment
- Capital production makes work to be lighter and more enjoyable because of the use of because of use of simple technology
machinery - Labour intensive production requires little skills to enter or run due to the use of
simple technology.
(d) Describe three disadvantages of a capital intensive mode of production. - Labour intensive production promotes human interaction due to the use of simple
technology.
- Capital intensive mode of production causes pollution to the environment because of - Labour intensive production encourages craftsmanship because of the use of simple
the use of advanced technology. technology.
- Capital intensive mode of production lead to high unemployment rate because the - Labour intensive production uses local skills and knowledge because of the use of
advanced technology requires only few people to operate. simple technology.
- Capital intensive mode of production lead to loss of craftsmanship.
- Capital intensive mode of production is expensive to buy and maintain.
- Capital intensive mode of production requires skilled manpower. 2 (a) What is capita-intensive production?
- Capital intensive production process of making goods and providing services which
relies heavily on the use of machinery and money/finance
- Capital-intensive production is the use of advanced or complex machines to speed
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up production.
(b)Describe three advantages of capital-intensive production. (b) Describe three importance of capital in production.
- The advantage of capital intensive production is that there is greater opportunity to - The importance of capital in production is that money is used in infrastructural
use machinery / quick and efficient method of production development, for example, buildings and roads
- Capital intensive production lead to production of quality goods due to use of - The money is used to buy equipment during production.
complex technology. - The importance of capital in production is that money is used to buy raw
- Capital intensive lead to mass production which makes goods cheaper because of use materials
of complex technology. - The importance of capital in production is that money is used to pay workers
- Capital intensive production helps workers acquire skills of operating machines / - The importance of capital in production is that money used to pay utilities such as
skills development / creates a lot of skilled manpower water and electricity bills
- The work is made lighter and more enjoyable because of the use of machinery - The importance of capital in production is that equipment is used to transform or
change raw materials into semi-finished and finished goods
- The importance of capital in production is that buildings house the
3(a) What is meant by money capital? machines/products
- The importance of capital in production is that cars are used for transportation
- Money capital (finance) is the money that is used to increase production, that is,
it is used in ways that will help to earn more money. 5(a) What is technology?
- Technology refers to tools, machinery and skills that a society uses to make goods
(b) Describe three way of raising capital for production. and services
- The way of raising capital for production is through saving which is abstaining Describe three major types of technology, giving examples to illustrate your
from consumption and putting the money in the bank to earn interest. answer
- The capital for production can be raised through borrowing from the banks and
financial institutions. - Low/simple technology is the use of hand tools to produce goods and services, for
- The way of raising capital for production is through International loans from example, hoes, knives. It is cheap and made form local materials
other countries, the World Bank and International Monetary Fund.
- The capital for production can be raised through investment which is putting - Intermediate technology: is the use of simple manually operated machines to
money into a business with the hope of earning profit. produce goods and services, for example, hand sewing machine, ox-drawn mould
- The way of raising capital for production is through shares which is putting board plough. It is also cheap but more efficient than low/simple technology and
money in the business to get a certain percentage of profit made. can be used in small scale operations
- The capital for production can be raised through Taxation which is done by the
government. It taxes workers and companies to raise money for development. - Advanced/Complex technology is the use of very big and
sophisticated/advanced/modern machinery to produce goods and services on a large
scale. Most of the machinery is automatic, power driven i.e. uses electricity and/or
4(a) What is meant by capital goods? oil, for example, a tractor, combined harvester, computer, etc.
Capital goods are tools, equipment and machinery that are used to make other goods, for
example, factory machines, roads, building and vehicles.
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Section B (c) Describe three factors influencing the use of appropriate technology
1. Fig. 1 shows some inputs required to make goods in a factory. Use it to - The factor that determine use of appropriate technology is that of levels of
answer questions (a)(i) and (ii). development as developed societies tend to concentrate on the use of complex
technology while developing societies concentrate on simple and intermediate
technology.
- The use of appropriate technology is determined by Education and
skills/Availability of appropriate skills and knowledge, for example, complex
technology needs highly educated and skilled people to operate and maintain
while simple technology and intermediate technology need less skills and
education.
- The factor that determine use of appropriate technology is that of
capital/Cost/Affordability because complex technology is expensive to buy and
maintain therefore only the rich countries can afford it. Developing countries are
poor hence the technology they can only afford to use simple and intermediate.
- The use of appropriate technology is determined by employment creation,
Fig.1 developing countries like Botswana have high unemployment levels hence need
simple and intermediate technology that are labour intensive. Complex
technology would be inappropriate as it would lead to high rates of
(a)(i) Identify one factor of production from Fig.2.
unemployment.
- The factor that determine use of appropriate technology is that of environmental
- Labour risks/Adaptability, for example, simple technology causes less pollution while
complex technology causes pollution.
(ii) Name one item of capital shown in Fig.2. (d) Describe three factors which might make solar energy appropriate for
Botswana.
- Machinery
- The factor which might make solar energy appropriate for Botswana is that of
having many months of sunshine/ sunshine is readily available
(b) Give two disadvantages of capital intensive production to a developing
- The factor which might make solar energy appropriate for Botswana is that solar
country. energy is appropriate for Botswana because it is clean /environmentally friendly.
- The factor which might make solar energy appropriate for Botswana is that Rural
- Capital intensive mode of production causes pollution to the environment because of Innovation Industries Centre (RIIC) can develop/install/maintain any required
the use of advanced technology. solar machines.
- The factor which might make solar energy appropriate for Botswana is that solar
- Capital intensive mode of production lead to high unemployment rate because the energy is easy to use.
advanced technology requires only few people to operate. - The factor which might make solar energy appropriate for Botswana is that solar
energy is affordable.
- Capital intensive mode of production lead to loss of craftsmanship. - The factor which might make solar energy appropriate for Botswana is that solar
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energy can be set up in rural area where most Batswana live.
- Capital intensive mode of production is expensive to buy and maintain.
- Capital intensive mode of production requires skilled manpower.
MASUNGA SENIOR SECONDARY SCHOOL - Feasibility of developing some technologies requested by clients is low due
sophistication/lack of knowledge or skills by RIIC
DEVELOPMENT STUDIES
- Batswana are slow to adapt to new technologies/are traditional so they fail to
Module 2: Production, Consumption & Investment support RIIC/Low literacy making people to be rigid
Class Exercise 7: Marking Scheme - Recession/ shortage of money to conduct research/ high cost to RIIC
- Batswana shun most non-agricultural technologies
1. Study Fig. 1 which is an extract about Rural Industries Innovation Centre
- Most Batswana may lack money to buy such technologies
(RIIC).
(b)(i) Describe the importance of Information Technology (IT) in the
development of Botswana.
- The importance of information technology in the development of Botswana is
that it helps store a lot of data
- Information technology helps with easy analysis of complex information
Fig.1
- The importance of information technology is that of easy/fast transfer of
(a)(i) Describe factors which might make solar energy appropriate for Botswana. information from one source to another
- Information technology promotes international trade by linking
- The factor which might make solar energy appropriate for Botswana is that of countries/electronic payments made possible
having many months of sunshine/ sunshine is readily available - The importance of information technology is that of increased productivity
- Solar energy is appropriate for Botswana because it is clean /environmentally - Information technology helps with development of infrastructure
friendly.
- Improvement of technology/skills development
- The Rural Innovation Industries Centre (RIIC) can develop/install/maintain any
(ii) Suggest factors that might slow down the introduction of Information
required solar machines. Technology (IT) in Botswana schools.
- Solar energy is easy to use.
- Shortage of information technology (IT) teachers to teach information technology
- Solar energy is affordable.
(IT)
- It can be set up in rural area [where most Batswana live]
- Information technology equipment are also to expensive, for example, computers
- Large populations of students in schools/lack of IT equipment
(ii) Suggest problems that the Rural Industries Innovation Centre might face
- Some schools are located in remote areas or places without proper supporting
in their effort to disseminate new developments.
infrastructure, for example, electricity and telephone connections
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- It takes long to conduct proper needs assessment to decide products and
- Information technology [IT] equipment is easily stolen/theft
technologies to develop
- Some students/teachers have a phobia for electronic machines
MASUNGA SENIOR SECONDARY SCHOOL (b) Give three advantages of division of labour
DEVELOPMENT STUDIES - The advantage of division of labour is that work can be done faster and perfectly
- The advantage of division of labour is that little or no time is wasted moving from
Module 2: Production, Consumption & Investment one task to the other
- There is a chance of exploring people’s potential
Class Exercise 8: Marking Scheme - The division of labour is cheaper and time saving to train in one particular job (this
saves a lot of money and time)
1.(a) Define labour. - The advantage of division of labour is that quality goods and services are produced
- The advantage of division of labour is that no tools lie idle / there is full utilisation of
- Labour refers to the human effort, both physical and mental, that is directed towards tools and/or machinery
the production of goods and provision of services
- Labour is the work done by people to produce goods and services
- Labour is human effort that is directed at the production of goods and services, for 3.(a) What is specialisation?
example, both physical and mental.
- Specialisation is concentration in a specific activity / profession / production of a
specific commodity
(b) Describe any three types of labour. - Specialisation of labour is the concentration of people on one job that they are
trained in, for example, teaching, engineering and nursing
- Specialised Labour refers to people who are experts or highly skilled people, for
example, engineers, doctors, teachers, nurses and lawyers. (b) Give three disadvantages of division of labour.
- Skilled Labour refers to people who are highly trained in practical work related
to production, for example, artisans, surveyors, electricians, auto mechanics, - The disadvantage of division of labour is that doing the same job repeatedly leads
to boredom.
fitters and turners.
- The division of labour lead to workers lose the initiative to exercise judgement
- Semi-Skilled Labour refers people who are trained on-the-job for specific tasks.
and responsibility.
For example a spanner boy who eventually become a fully-fledged mechanic.
- The disadvantage of division of labour is that of increased risk of unemployment
- Unskilled Labour refers to workers who have no training at all. Mostly used as
because of the greater use of machinery.
manual labourers, for example, farm workers, cleaners and garden boys.
- The division of labour lead to loss of craftsmanship because of the increased use
of machinery.
2.(a) What is division of labour?
- The disadvantage of division of labour is that of increased dependency which
- Division of labour is the breaking down of work into small parts so that each worker easily leads to disruption of production, for example, if one worker is absent.
takes a part
- The concentration on one task makes it difficult for one to acquire other skills.
- Division of labour is when work is shared out in different parts between different
people
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- Division of labour is the breaking down of the production process so that it may be
based on gender or age or training
4.(a) Define labour efficiency. Section B
- Labour efficiency is the ability of workers to be highly productive in a work

1. Fig. 1 shows formal employment by sector in Botswana (2012)
place.
- Labour efficiency is when workers produce a lot of quality goods within a short
period of time.
(b) Give three reasons for high labour efficiency in developed countries.
- The labour efficiency is high in developed countries due to having many skilled
manpower.
- The developed countries have high labour efficiency because workers are
motivated to work harder by being offered incentives such as higher wages,
rewards, promotion at work and bonuses/13th cheque
- The labour efficiency is high in developed countries due to improved working
conditions, for example, well ventilated workplace/ventilation
- The use of improved technology in developed countries has led to high labour
efficiency
5.(a) What is capital-intensive production?
- Capital intensive production process of making goods and providing services which
relies heavily on the use of machinery and money/finance
- Capital-intensive production is the use of advanced or complex machines to speed

up production.
(a)(i) Which sector employs the highest percentage?

(b) Give three disadvantages of capital intensive production
- Capital intensive production causes pollution to the environment because of the use - Private sector
of advanced technology.
- Capital intensive production lead to high unemployment rate because the advanced
technology requires only few people to operate. (ii) What is the percentage difference between Local Government and Parastatal
- Capital intensive production may lead to loss of craftsmanship.
- Capital intensive production is expensive to buy and maintain.
sector of employment?
- Capital intensive production requires skilled manpower.
- 15% [allow 14-16%] [no unit no mark]
13
(b) Give any two types of labour which are important in all employment sectors. MASUNGA SENIOR SECONDARY SCHOOL
- Specialised labour DEVELOPMENT STUDIES

- Skilled labour Module 2: Production, Consumption & Investment
- Semi-skilled labour
Class Exercise 9: Marking Scheme
- Unskilled labour
1 Study Fig. 1, which shows the percentage of agriculture employment in the total
(c) Describe three characteristics of parastatals. workforce in Botswana. Use it to answer questions (a) (i) and (ii).
- Parastatals are formed by an Act of parliament/set up by the government

- Parastatals are owned by the government/assets are publicly owned
- The Chief Executive Officer (CEO) handle daily operations/daily management of
parastatals.
- The parastatals are controlled by board of directors appointed by the minister.
- Parastatals are separate legal entity.
- Parastatals are funded by the government
- The profit from parastatals goes to the government
- Parastatals focus on the provision of useful goods and services
- Parastatals are large scale businesses
(d) Describe any three forms of specialisation.
- Specialisation by individual is when a person concentrates or gives great

attention to one task only, for example, a Development Studies teacher, a dentist
and an optometrist.
- Specialisation by product is when an individual/company concentrates on

producing a single commodity or particular product.
(a)(i) What percentage of the total workforce was employed in agriculture in
- Specialisation by country is when a country concentrates on producing a certain 2003?
goods or commodity which they have comparative advantage over, for example,
diamonds for Botswana. - 21%
- 22%
- Specialisation by region is when countries of the same geographical area
concentrate on producing a same product/where the majority of people in a (ii) By how much did the percentage of the workforce employed in agriculture
particular area are engaged in the same type of work due to specific increase between 2003 and 2005?
skills/resource availability.
30-21= 9%
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- Specialisation by process is when a company concentrates on or gives greater
attention to various aspects of a product, for example, car plant - 9%
(b) Suggest two reasons to explain the increase in the percentage of agricultural MASUNGA SENIOR SECONDARY SCHOOL
employment between 2003 and 2005.
DEVELOPMENT STUDIES
- The increase in percentage of agricultural employment between 2003 and 2005
was due to financial support given to farmers by government, for example, Module 2: Production, Consumption & Investment
Young Farmers Fund from Citizen Entrepreneurial Development Assistance Class Exercise 10: Marking Scheme
(CEDA) and National Development Bank (NDB).
1.Study Fig. 1, which shows an assembly line in a car factory, and use it to answer
- The reason for increase in agricultural employment was caused by better prices of questions (a)(i) and (ii).
agricultural products from Botswana Meat Commission (BMC) and Botswana
Agricultural Marketing Board (BAMB).
- The research in agriculture for crops and livestock breeds leads to increase in
agricultural employment.
(c) Suggest three reasons for low agricultural production in communal areas.
- The reason for low agricultural production in communal areas is due to outbreak
of pests and diseases, for example, foot and mouth
- The cause of low agricultural production in communal areas is that land cannot
be used as a security or collateral to get loans from financial institutions.
- The low agricultural production in communal areas is caused by mismanagement
of land which lead to overgrazing, soil erosion and deforestation.
- The use of simple and intermediate technology may lead to low agricultural
production in communal areas.
(d) Describe three conditions that promote labour efficiency in Botswana.
- The condition that promote labour efficiency in Botswana is that of provision of

workers welfare, for example, pension scheme, and housing and medical aid
scheme.
- The labour efficiency in Botswana is promoted through provision of free
education and training.
- The condition that promote labour efficiency in Botswana is through provision of
health facilities such as clinics and hospitals so that workers can access health
care.
- The labour efficiency is promoted in Botswana through improved working
conditions, for example, well ventilated workplace.
15
- The labour efficiency is promoted in Botswana by having labour laws that
protects workers from exploitation by employers.
(a)(i) Describe the factors that increase the efficient of labour. - Specialisation by Product is when an individual or company concentrates on or
gives great attention to making a single commodity, for example, Nortex
- The labour efficiency can be promoted by increased leisure/rest Company in Francistown which produces towels
- The factor that can increase labour efficiency is that of education/training, the - Specialisation by Nation is when a country concentrates on producing a certain
higher the level of training and education the higher the level of productivity good(s) / commodity (ies) which they have comparative advantage over, for
- The labour efficiency can be increased through motivation, for example, workers example, Botswana produces beef and diamonds, Namibia produces fish, etc.
can be encouraged to work harder by being offered incentives such as higher - Specialisation by Region is when countries of the same geographical area
wages, rewards, promotion at work and bonuses/13th cheque concentrate on or give great attention to a particular product, for example, The
- The factor that increase labour efficiency is that of improved working conditions, basketry in North West Botswana, phane harvesting in the Central and North East
for example, well ventilated workplace/ventilation Botswana
- The labour efficiency can be increased through improved technology, for - Specialisation by Process is when a company concentrates on or gives great
example, if workers use simple technology then productivity will be lower. attention to various aspects of a product, for example, at a car assembly plant
Workers who use advanced technology will be more productive. there are different areas of specialisation in the process of assembling a car; there
- The good leadership can help to increase labour efficiency. is a person responsible for fitting the engine, the wheels, the windscreen, the
- The labour efficiency can be increased through specialisation and division of wipers, the gearbox etc.
labour
- The workers welfare can help to increase labour efficiency because workers (ii) Suggest factors that may reduce labour efficiency among workers in
must have peace of mind for them to be productive at work, for example, pension Botswana.
and medical aid schemes
- Labour efficiency can be increased by good work ethics ( coming to work on - The factor that may reduce labour efficiency among workers in Botswana is that
time) of poor work ethics/laziness/culture of laziness/absenteeism from work
(ii) Describe the advantages of specialisation of labour. - The alcoholism/drug abuse may reduce labour efficiency among workers in
Botswana.
- The advantage of specialisation of labour is that work can be done faster and - The labour efficiency in Botswana may be reduced by dirty unattractive working
perfectly because the worker perform only one task. conditions
- The advantage of specialisation of labour is that little time is wasted moving from - The low wages/salaries may reduce labour efficiency among workers in
one task to the other. Botswana.
- There is a chance of exploring people’s potential during specialisation of labour. - The Poor supervision/management may reduce labour efficiency among workers
- Specialisation of labour is cheaper and time saving to train in one particular job. in Botswana.
- The quality goods and services are produced because of use of advanced - The factor that can reduce labour efficiency among workers in Botswana is lack
technology. of training.
- There is higher productivity because of the use of machinery. - The lack of machines/equipment/tools to use may reduce labour efficiency.
- Specialisation of labour increases worker’s proficiency because of constant - The crippling effect of deadly diseases such as HIV/AIDS and Covid-19 causes
repetition. reduction in labour efficiency among workers in Botswana.
- Specialisation of labour creates a lot of employment opportunities, for example, - The poor/congested transportation routes causing late arrivals at work , for
teaching example, Gaborone/ poor infrastructure
(b)(i) Describe any three forms of specialisation in production. - The factor that may reduce labour efficiency among workers in Botswana is that
of lack of motivation
- The factor which may reduce labour efficiency among workers in Botswana is
- Specialisation by Individual is when a person concentrates or gives great that of conflict among worker.
attention to one task only, for example, a Development Studies teacher, a dentist,
16
an optometrist.
MASUNGA SENIOR SECONDARY SCHOOL (d) Describe three disadvantages of market economic system.
DEVELOPMENT STUDIES - The disadvantage of market economic system is that it ignore production of basic
needs so people might suffer/shortage of basic needs/profit motive so it ignore
Module 2: Production, Consumption & Investment production of basic needs
- The market economic system is controlled by money o only those with money
Class Exercise 11: Marking Scheme can participate/ small businesses collapse due to competition/monopolies
- The disadvantage of market economic system that of inequality between the rich
1.(a) Define market economic system. and the poor increase so there will be unbalanced development
- The market economic system profit motive results in exploitation of
- Market economy is an economic system whereby the means of production are workers/unemployment
owned and controlled by individuals and the private sector. - The disadvantage of market economic system is that there is too much
competition results in unethical business practices
(b) State any three characteristics of market economic system. - The market economic system profit motive leads to damage of the environment
- The disadvantage of market economic system is lack of serious planning may
- Private property is when individuals have the right to own and control the result in duplication of production activities
means of production, for example, labour, land and capital. - The free market may lead to illegal substances finding their way into the market
- Freedom of choice is when people are free to choose what to produce, how to - The disadvantage of market economic system is that there is too much
produce and where to produce. competition lowers prices of goods and services
- Freedom of enterprise is when people are free to start businesses of their choice.
- Self- interest is when people are motivated by the need to make profits for 2 (a) Define planned economic system/ socialism.
themselves.
- Competition is when businesses compete against each other. - Planned economic system/ Socialism is a system of production where the means of
- Price mechanism is when the laws of supply and demand determine the prices production are owned and controlled by the state
for goods and services. - Planned economic system/ Socialism is a system of production that is based on the
- Government role is minimal which means there is little government interference principle that government controls production and consumption in the collective
with the running of the economy. interest of the society
(c) Give three advantages of market economic system. (b)Describe three characteristics of planned economic system.
- The economy responds quickly to the people’s needs and wants. - The characteristic of planned economic system is that of State ownership as all
- In a market economic system entrepreneurs always try to use the resources as important resources (e.g. land, capital) are owned by the state
efficiently as possible in order to get the most profit out of them. - In a planned economic system the government is entrepreneur as Individuals are
- The advantage of market economic system is that high quality goods and services forbidden to set up their own businesses and the govt. takes the role of the
because of fierce competition. entrepreneur
- The advantage of market economic system is that entrepreneurs are always - There is collective interest in a planned economic system as people are expected to
motivated to make a success of their businesses because they want to make profit. work for the good of society and not for individual gain. They are paid wages by the
- The market economic system is highly productive because of the use of mass state
production methods. - The characteristic of planned economic system is that of competition as Competition
- Capitalist countries have achieved the highest levels of development in the world, between businesses is not allowed
17
for example, japan and U.S.A. - There is price control in a planned economic system as prices are set and controlled
- The advantage of market economic system is that anyone has the chance to by the state so that they could be affordable by everyone
become rich provided he or she has the business skills
- The characteristic of planned economic system is that of government role as the MASUNGA SENIOR SECONDARY SCHOOL
government controls all parts of the economy.
DEVELOPMENT STUDIES
(c) Give three advantages of socialism.
- The advantage of socialism is that it satisfies all the people’s basic needs, for
example, food, shelter and clothes. Class Exercise 12: Marking Scheme
- The benefits of production are distributed equally among the whole population. 1 Fig. 1, which shows world economies and answer question 1(a)
- In socialism everyone has the right to work or employment.
- The goods and services are made available at low prices
(d) Give three disadvantages of socialism.
- The disadvantage of socialism is that it is difficult to plan for the whole country
and these results in a lot of mistakes.
- Socialism suppresses individual freedom to think and act.

Fig.1
- In socialism state appointed managers are inefficient because they are appointees
rather than entrepreneurs.
(a)(i) State five characteristics of a market economy.
- There is technological inefficient because managers are prohibited coming up
with new ideas or make changes.
- Private property is when individuals have the right to own and control the
- In socialism very few luxury goods are produced hence the people’s lives are means of production, for example, labour, land and capital.
uncomfortable. - Freedom of choice is when people are free to choose what to produce, how to
produce and where to produce.
- The disadvantage of socialism is that a very limited choice for consumers since - Freedom of enterprise is when people are free to start businesses of their choice.
all goods and services are produced by the state. - Self- interest is when people are motivated by the need to make profits for
themselves.
- There is a low productivity level because of over-employment, inefficient - Competition is when businesses compete against each other.
management and low morale of the workers - Price mechanism is when the laws of supply and demand determine the prices
for goods and services.
- Government role is minimal which means there is little government interference
with the running of the economy.
18
(ii) Describe the disadvantages of a planned economy. (ii) Suggest ways in which a government can empower its people.
- The disadvantage of planned economy is that it is difficult to plan for the whole - The government can empower its people through training and educating citizens, for
country and these results in a lot of mistakes.
example, Local Enterprise Authority which trains locals on entrepreneurial skills.
- Planned economy suppresses individual freedom to think and act. - The people can be empowered by government through provision of financial
assistance, for example, Citizen Entrepreneurial Development Authority (CEDA) and
- In planned economy, state appointed managers are inefficient because they are
appointees rather than entrepreneurs. National Development Bank (NDB)
- The government can empower its people by providing opportunity for locals to vote
- There is technological inefficient because managers are prohibited coming up
with new ideas or make changes. in elections
- The provision of information through radio, television, newspapers on various issues
- In planned economy very few luxury goods are produced hence the people’s lives
are uncomfortable. also help to empower people.
- The government empower its people through provision of health services to fight/
- The disadvantage of planned economy is that a very limited choice for consumers
since all goods and services are produced by the state. cure/control/treat diseases
- The government can teach locals their rights as a way of empowering them.
- There is a low productivity level because of over-employment, inefficient
management and low morale of the workers - The government is providing a market to citizens or tenders as a way of trying to
empower them.
(b)(i) Describe the benefits of localisation to Botswana.
- The marketing of local goods and services to outside markets helps to empower
- The benefit of localisation to Botswana is to promote socio-economic development of people by government.
locals. - The government can empower its people through localisation which is replacing
- Localisation is part of restoring national pride and asserting a country’s
independence. expatriate public servants with citizens.
- The government can help to empower its people through privatisation which is the
- Localisation helps in making Batswana believe in themselves and not always show
too much respect for foreigners. transfer of state assets to individuals and companies usually through selling.
- The government can empower its people by reserving some businesses for locals
- The benefit of location to Botswana is that citizens will occupy politically sensitive
positions only.
- Localisation creates employment for citizens.
- The benefit of localisation is that development is in accordance to culture

- There is possibility of making long term decisions as there is no fear of end of
contract
19
- Localisation helps locals acquire necessary skills
- The workers are patriotic and have their national interest at heart
- The benefit of localisation is that it saves money wasted on foreigners.
MASUNGA SENIOR SECONDARY SCHOOL (ii) Explain the disadvantages of a market economic production system.
DEVELOPMENT STUDIES - The economy responds quickly to the people’s needs and wants.
- In a market economic system entrepreneurs always try to use the resources as
Module 2: Production, Consumption & Investment efficiently as possible in order to get the most profit out of them.
- The advantage of market economic system is that high quality goods and services
Class Exercise 13: Marking Scheme because of fierce competition.
- The advantage of market economic system is that entrepreneurs are always
1. Study Fig. 1, which shows economic production systems. motivated to make a success of their businesses because they want to make profit.
- The market economic system is highly productive because of the use of mass
production methods.
- Capitalist countries have achieved the highest levels of development in the world,
for example, japan and U.S.A.
- The advantage of market economic system is that anyone has the chance to
become rich provided he or she has the business skills.
(b)(i)Describe the features that show that Botswana follows a mixed economic
production system.
- The feature that show that Botswana follows a mixed economic production
system is that parastatals operating side by side with the private businesses. For
example, Botswana Power Corporation and Choppies.
- The prices determined by market forces while the government controls prices for
some goods and services, for example, petrol and maize meal.
Fig.1
- The government schools and universities such as University of Botswana and
Botswana International University Of Research Science and Technology
(a)(i) Describe the characteristics of a planned economic production system.
operating alongside private schools and universities such as Botho College and
Baisago University College.
- Private property is when individuals have the right to own and control the
means of production, for example, labour, land and capital.
- Freedom of choice is when people are free to choose what to produce, how to - The government hospitals and clinics operating alongside private hospitals and
produce and where to produce. clinics. For example, Nyangagwe Hospital in Francistown and Riverside Hospital
- Freedom of enterprise is when people are free to start businesses of their choice. in Francistown. The government prepares National Development Plans while
- Self- interest is when people are motivated by the need to make profits for individuals implement them.
themselves.
- Competition is when businesses compete against each other. - The government set regulations for business operations such as quality control,
- Price mechanism is when the laws of supply and demand determine the prices price monitoring while individuals are free to make other decisions.
for goods and services.
- The government gives free food or basic needs to destitute while other people
20
- Government role is minimal which means there is little government interference
with the running of the economy. must buy for themselves. The government exempts the poor from paying school
fees whilst other people pay.
(ii) Explain the benefits of choosing a mixed economic production system. MASUNGA SENIOR SECONDARY SCHOOL
- The government social welfare programme ensures that everybody has access to DEVELOPMENT STUDIES
basic needs.
- The government labour laws protects workers from exploitation through coming
up with labour laws. Class Exercise 14: Marking Scheme
- The benefit of choosing a mixed economic production system is having 1.(a) What is meant by an entrepreneur?
environmental laws that prevent damage to the environment.
- An entrepreneur is a person who takes the risk of putting down money to start a
- The presence of government businesses or parastatals ensures availability of business with the main aim of making a profit.
essential goods and services, for example, water and electricity.
(b) Describe any three roles played by an entrepreneur.
- The government price control ensures that basic needs are sold at affordable
prices, for example, water, electricity, mealie meal and petrol. - The role played by an entrepreneur is that of organisation of land, labour and
capital to produce goods and services.
- The government laws and regulations prevent immorality, for example, banning - An entrepreneur is involved in decision-making on what to produce, how to
of pornographic materials. The element of freedom of enterprise allows high produce and where to produce.
achievers to excel. - The role of an entrepreneur is that of management/leadership of the day to day
running of business or enterprise.
- An entrepreneur is a risk bearer which is the ability to take risks and steer the
business to be a success.
2.(a) What is meant by a sole proprietor?
- Sole proprietor is an individual / person who owns and runs a business
(b) Give three advantages of a sole trader.
- This type of ownership is advantageous because the owner is usually self-

motivated and has every reason to make the business become as efficient as
possible.
- The individual owner is in full charge and can devote as much of his time and
energy to the business as he or she wishes.
- The owner has no need to consult or involve anyone when making a new policy
for the business. This allows the owner to put decisions into effect without having
to convince others.
- Sole trader or sole proprietors are usually small and this allows the owner to have
more closer and personal contact with both the employees and customers.
21
- In most cases, it requires small amount of capital to start.
- Sole trader pays tax for development of the country.
- Sole trader creates jobs.
(c) Describe three disadvantages of a sole proprietor. 4.(a) What is meant by parastatals.
- The disadvantage of a sole proprietor is that individuals usually have small - Parastatals are state corporations owned by the government of the country in
amounts of capital and this might hinder the expansion of the enterprise. which they operate.
- Parastatals are businesses owned and funded by the government and the profits
- The success of the business depends on the owner’s abilities, and on his or her they make are taken by the state to be used for developmental purposes.
death or retirement, the business might be affected by the person who inherits it.
If the inheritor is not a good business person, the company will obviously (b) State three advantages of parastatals.
collapse.
- The parastatals employ many people and thus create employment in countries
- Since the individual owner bears all the risks, the owner is liable for all the debts with a few private companies such as Botswana.
and losses of the firm. - Parastatals have an advantage of expansion because they are funded by the
government.
- Sole trader has got limited liabilities which means the owners assets are at risk. - The state has a chance to control the provision of essential services and goods.
For example, water and electricity.
- Sole trader is at times has difficulties to get money or loan to finance the business - Parastatals enjoys economies of scale hence offer cheaper price.
since banks need security. - Parastatals are mostly not profit oriented.
- Parastatals provide secure employment to a large number of local people.
- There are no economies of scale. This means the sole trader cannot buy in bulk to - Parastatals reduces duplication of equipment and unnecessary wastage of
experience discounts. resources.
- Parastatal helps to implement government policies.
- The division of labour may be difficult to organise because of the small size of - Parastatals are a source of income of the government.
the business, resulting in little sharing of the workload, hence the owner is - The effort is made to train and employ local workers of all levels of production.
overworked. This may affect productivity and labour efficiency.
3.(a) Define private limited companies. (c) Describe three disadvantages of parastatals.
- Private limited company refers to a type of enterprise owned by shareholders - The parastatals tend to waste state funds if they are not run properly, which is a
and run by a board of directors and a manager. great cost to taxpayers.
- The parastatals often lead to monopolies whereby the government owns most of
the profitable enterprises and competes with small companies and this might lead
(b) Give three advantages of private companies. to the collapse of the small companies.
- Parastatals mostly tends to provide goods and services of poor quality due to
- Private limited company is owned by many individuals/ shareholders
monopolies.
- Private limited company funding is provided by shareholders
- The disadvantage of parastatals is that most of them are too expensive to run and
- Private limited company operates on large scale
over stretch the taxpayer’s money.
- Private limited company shareholders choose a board of governors to manage the
- The parastatals lack of initiative amongst workers leads to inefficiency in
business
production.
- Private limited business, profit is shared by shareholders.
- The parastatals may provide uniform products which may not satisfy everyone’s
- Private limited company has unlimited liability taste.
22
5(a) Define joint venture. MASUNGA SENIOR SECONDARY SCHOOL
- Joint venture is the coming together of two or more companies to undertake a DEVELOPMENT STUDIES
business activity.
- Joint Venture is a form of partnership whereby two or more individuals or
companies agree to do business for a specific time under clear contract conditions Class Exercise 15: Marking Scheme
(b) Give three advantages of a joint venture.
- The advantage of joint venture is that of cost sharing in buying materials or goods.
- The advantage of joint venture is that of efficient/prudent management/sharing

management ideas/skills.
- The advantage of joint venture is that of increased resource base.
- The joint venture experience economies of scale, for example, experience discount
when buying in bulk or buying many goods.
- The joint venture helps reduce unnecessary competition between companies selling (a)(i) What are the qualities of a good entrepreneur?
the same products which allow them to share the profits and losses.
- Joint ventures can expand easily and make more profits because they have a lot of - A good entrepreneur is that of been innovative/creative in the running of the
capital. business
- Joint ventures can save money by buying products at low prices because they buy in - A good entrepreneur come with initiative/self-motivated
bulk.
- A good entrepreneur has good organisational skills/good planner/good
- The joint venture create a lot of employment by hiring many people because they manager/interpersonal skills
have capital
- A good entrepreneur is a risk bearer/capability to bear risk
- A good entrepreneur is a good motivator of employees
- A good entrepreneur is a good decision maker
- A good entrepreneur is a hard worker/productive
- A good entrepreneur is able to move with the times
23
- A good entrepreneur is a good leader/loyal to workers/good
communicator/responsible/lead by example
(ii) How can an entrepreneur raise capital for production? (ii) Describe the disadvantages of operating as a sole proprietor in the informal
sector.
- An entrepreneur raise capital for production from personal savings/insurance
policies - The disadvantage of a sole proprietor is that individuals usually have small
amounts of capital and this might hinder the expansion of the enterprise.
- An entrepreneur can raise capital for production through selling of shares
- The success of the business depends on the owner’s abilities, and on his or her
- An entrepreneur can raise capital for production by getting loans from financial death or retirement, the business might be affected by the person who inherits it.
institutions/banks
- If the inheritor is not a good business person, the company will obviously
- An entrepreneur can raise capital for production from grants/donations collapse.
- An entrepreneur can raise capital from leasing or renting out property - Since the individual owner bears all the risks, the owner is liable for all the debts
and losses of the firm.
- An entrepreneur can raise capital for production from hire purchase
- Sole trader has got limited liabilities which means the owners assets are at risk.
- An entrepreneur can raise capital from debenture [loan from the public]/family
members/friends - Sole trader is at times has difficulties to get money or loan to finance the business
since banks need security.
- An entrepreneur can raise capital for production from sale of assets
- There are no economies of scale. This means the sole trader cannot buy in bulk to
experience discounts.
Most women entrepreneurs start as sole proprietors in the informal sector.
- The division of labour may be difficult to organise because of the small size of
the business, resulting in little sharing of the workload, hence the owner is
(b) (i) Give the characteristics of a sole proprietorship. overworked. This may affect productivity and labour efficiency.
- The characteristic of a sole proprietorship is that owner gets the profit or bears the
losses
- The sole proprietor employees are mostly members of the family
- Sole proprietor is usually found within the location of the owner
- The characteristic of sole proprietor is that it has got small sphere of influence
- The sole proprietor has got unlimited liability
24
MASUNGA SENIOR SECONDARY SCHOOL (b)(i) Explain why some parastatals have been privatised.
DEVELOPMENT STUDIES - Some of parastatals have been privatised to increase wealth of a country, for
example, GDP and GNP
Module 2: Production, Consumption & Investment - The parastatals are privatised to raise capital from sale of shares
- The government may decide to privatise some parastatals to reduce the burden of
Class Exercise 16: Marking Scheme running production for the government/reduce expenditure of the country /reduce
government spending on daily running of businesses
1 Study Fig. 1 which is an extract on parastatals. - The parastatals are privatised to encourage more people to own shares as a way
of promoting citizen empowerment
- Some parastatals are privatised to encourage competition in some business areas
where there is monopoly
- The government privatised some parastatals to reduce trade union power since
private companies are less likely to give into demands by unions
- Some parastatals are privatised to increase efficiency in production since private
Fig.1 productions will respond to market forces/ to reduce bureaucracy
- Some parastatals are privatised to reduce political interference from the
(a)(i)With the aid of Fig. 1, describe characteristics of parastatals. businesses
- The government may decide to privatise some parastatals as a way of attracting
foreign direct investment (FDI) so that individual companies pay tax
- The parastatals are established by an Act of parliament/set up by the government
- The parastatals are owned by the government/assets are publicly owned
- The Chief Executive Officer (CEO) handle daily operations/daily management of (ii) Suggest problems that may be caused by privatisation.
parastatals
- The parastatals are funded by the government - The problem caused by privatisation is that many privatised assets are sold too
- The profit made by parastatals goes to the government cheaply so tax payer loses/ encourages corruption
- The parastatals focus on the provision of useful goods and services
- The parastatals are engaged in large scale businesses - Privatisation may sometime lead to shares or businesses be in the hands of
foreign companies so profits will go out of the country.
(ii)Suggest benefits of operating parastatals to a developing country.
- The shares during privatisation are often bought the rich businesses so locals fail
- Parastatal prevent duplication of production which is wasteful to participate/widens the gap between the rich and poor
- Parastatals allows for economies of scale because they are large
- Parastatals ensures that essential goods and services are available even though are - Privatisation may result in lower wages/poor working conditions for
expensive to produce/provide, for example, water supply and electricity supply workers/exploitation of workers
- Parastatal provide sufficient capital for large scale development/ source of
income for the government - Sometimes privatisation simply changes state monopoly to a private monopoly.
- Parastatals rescue dying industries in order to protect employment
- Parastatals helps to create employment for people in developing countries. - Privatised businesses often reduce workforce/loss of employment.
- Parastatals helps the government to implement its policies
- Parastatals industries of strategic importance are in the hands of the government - Private companies are profit driven so they fail to take care of the environment,
25
rather than private individuals, for example, atomic power/electricity for example, pollution.
- Parastatal also serve as a strategy to promote industrialisation in the country - Attempts to make profit often result in higher prices making consumers suffer.
- The parastatals are source of foreign exchange for developing countries.
MASUNGA SENIOR SECONDARY SCHOOL (b) Give three problems caused by multi-national companies in developing
countries.
DEVELOPMENT STUDIES
- The problem caused by multi-national companies in developing countries is that
Module 2: Production, Consumption & Investment at times they dominate economies by monopolistic practices.
- The multi-national companies sometimes they bring in their own expert instead
Class Exercise 17: Marking Scheme of training locals for managerial positions within the host country.
- The problem caused by multi-national companies to developing countries is that
1.(a) What is meant by business Partnership? of attracting experts/skilled locals to work for them at the expense of local
industries.
- Business partnership is a relationship that exists between two to twenty people - The multi-national companies encourage dependency and neo-colonialism
who have come together with the view/intention of making profit. through dependence on foreign technology.
- The multi-national companies may take all the profits back to the country of their
- Business Partnership is a relationship between two or more people who have origin.
put their resources together to make money - The multi-national companies sometimes interfere with the policies of the host
country.
(b) Describe three benefits of working in a business partnership. - Some of multi-national companies are too powerful for the host country to
control.
- The benefit of working in a business partnership is that there is greater chances of
security for loans. 3(a) Define cooperatives.
- The business partnership is easy to set up as every partner contributes towards the
capital.
- Co-operatives are enterprises formed by people with a common goal who bring
- The benefit of business partnership is that partners share costs of production.
together some of their resources such as money, tools, labour and equipment in
- The partners come with different ideas that can make a business to be successful.
- The benefit of business partnership is that of consultative decision making/quality order to reduce production costs.
decisions are made by partners.
- The partnership allows division of labour which makes work becomes lighter. (b) Give three benefits of being a member of a farming cooperative.
- In partnership, there is continuity.
- The benefit of being a member of a farming co-operative is that of skills sharing/
2.(a) What are multi-national companies? members learn new skills
- The farming co-operative makes it easy for members to raise a high amount of
- Multi-National Companies are businesses from developed countries with capital/group investment
subsidiaries in developing countries. - The benefit of being a member of farming co-operative creates opportunity for
division of labour/sharing of tasks
- Multi-National Companies are large businesses/industries from developed - The members of a farming co-operative share ideas
countries with branches in other countries - The benefit of being a member of farming co-operative is that of collective
decision making/ good decisions are made
- Multi-National Companies are enterprises/businesses that operate in several - The farming co-operative improves marketing of products
countries - The benefit of being a member of farming co-operative is that of easy access to
financial assistance from financial institutions
26
- Multi-National companies are businesses with branches all over the world - The benefit of being a member of farming co-operative is that of sharing of a
common market to reduced competition
- The members of a farming co-operative benefit from collective saving which 5.(a) Define localisation of labour.
gives them opportunity for bigger interest rates
- The benefit of being a member of farming co-operative is that of cost sharing, for - Localisation of labour is the process of replacing expatriate public servants with
example, transport is shared so the cost is shared citizen public servants
- The members of farming co-operative benefit from bulk buying of raw materials
which inputs makes them cheaper (b) Describe any three benefits of localisation.
- The benefit of being a member farming co-operative is that of poverty alleviation
- The benefit of being a member of farming co-operative is that of employment
creation - The benefit of localisation is that it promotes the socio-economic development of
locals
- localisation is part of restoring national pride and asserting a country’s independence

4.(a) Define privatisation.
- Localisation helps in making Batswana believe in themselves and not always show
- Privatisation is when the government transfers ownership of its businesses to
too much respect for foreigners
individuals and companies usually through selling.
- The citizens would occupy politically sensitive positions
- Privatisation is the transfer of public or state assets into the ownership of
individuals and companies usually through selling
- Localisation helps to create employment for citizens
(b) Give three advantages of privatisation of parastatals.
- Localisation helps development of a country to be in accordance with our culture
- The advantage of privatisation of parastatals is that of Improved efficiency because of
- There is possibility of making long term decisions as there is no fear of end of
competition and profit
contract
- Privatisation of parastatals helps to increase participation in ownership of national
assets / to promote citizen empowerment
- Localisation helps citizens to acquire necessary skills
- The advantages of privatisation of parastatals is that of reduced public bureaucracy or
delays in decision making
- The benefit of localisation is that workers will be patriotic and have their national
- Privatisation of parastatals helps to accelerates economic growth by stimulating
interest at heart
entrepreneurship
- Privatisation parastatals reduces prices and public sector budget deficit through
- The localisation of labour helps to saves money wasted on foreigners
enhancing the quality of goods and services
- Privatisation of parastatals may be used to empowers citizens where such sales are
restricted to them
- The privatisation of parastatals is source of government revenue, for example,
government gets tax from companies and revenue from sale of shares
- The privatisation of parastatals removes burden from government.
- The privatisation of parastatals increases foreign direct investment ( FDI)
- The private companies take social responsibilities
27
MASUNGA SENIOR SECONDARY SCHOOL - The benefit of being a member of farming co-operative is that of collective
decision making/ good decisions are made
DEVELOPMENT STUDIES - The farming co-operative improves marketing of products
- The benefit of being a member of farming co-operative is that of easy access to
Module 2: Production, Consumption & Investment financial assistance from financial institutions
- The benefit of being a member of farming co-operative is that of sharing of a
Class Exercise 18: Marking Scheme common market to reduced competition
- The members of a farming co-operative benefit from collective saving which
1 Study Fig. 1 which shows a weaving co-operative. gives them opportunity for bigger interest rates
- The benefit of being a member of farming co-operative is that of cost sharing, for
example, transport is shared so the cost is shared
- The members of farming co-operative benefit from bulk buying of raw materials
which inputs makes them cheaper
- The benefit of being a member farming co-operative is that of poverty alleviation
- The benefit of being a member of farming co-operative is that of employment
creation
(ii) Suggest how a government can ensure that co-operative are successful.
- The government can ensure that co-operatives are successful providing training
on entrepreneurial skills or upskilling
- The co-operative are successful because government provide storage facilities
- The government can ensure that co-operatives are successful by provide funding
or financial assistance
- The government improve transport networks as a way of ensuring that co-
operatives are successful.
- The government can ensure that co-operatives are successful by providing
technological assistance or invest in technological development
- The government can assist or help co-operatives with quality assurance or
standards, for example, Botswana Bureau of Standards (BOBS)
Fig. 1 - The government can ensure that co-operative are successful by providing
mentoring or giving expert advice or incubation strategy
(a)(i) With the aid of Fig. 1, describe the advantages of being a member of a co- - The government can help market the products or services/ provide a market for
operative. the cooperatives
- The government can ensure that co-operatives are successful by providing
- The benefit of being a member of a farming co-operative is that of skills sharing/ subsides
members learn new skills
- The farming co-operative makes it easy for members to raise a high amount of
capital/group investment
- The benefit of being a member of farming co-operative creates opportunity for
28
division of labour/sharing of tasks
- The members of a farming co-operative share ideas
(b)(i) Describe ways by which an entrepreneur can raise capital for production. MASUNGA SENIOR SECONDARY SCHOOL
DEVELOPMENT STUDIES
- The way by which an entrepreneur can raise capital for production is from
personal savings/insurance policies Module 2: Production, Consumption & Investment
- An entrepreneur can raise capital for production through selling of shares Class Exercise 19
- An entrepreneur can raise capital for production by getting loans from financial 1 Study the extract below and use it to answer question 1(a).
institutions/banks
Most of the large commercial farmers in Namibia belong to a co-operative such as
- An entrepreneur can raise capital for production from grants/donations Agra. Co-operatives can also be of great benefit to subsistence farmers and they
have been set up in a number of African countries.
- An entrepreneur can raise capital from leasing or renting out property
Adapted from: Development Studies 1 by Mweti and Van Wyk
- An entrepreneur can raise capital for production from hire purchase
Fig.1
- An entrepreneur can raise capital from debenture [loan from the public]/family
members/friends (a)(i) Describe the advantages of being a member of farming co-operative.
- An entrepreneur can raise capital for production from sale of assets - The benefit of being a member of a farming co-operative is that of skills sharing/
members learn new skills
(ii) Explain the importance of capital in production. - The farming co-operative makes it easy for members to raise a high amount of
capital/group investment
- The benefit of being a member of farming co-operative creates opportunity for
- The importance of capital in production is that money is used in infrastructural division of labour/sharing of tasks
development, for example, buildings and roads - The members of a farming co-operative share ideas
- The benefit of being a member of farming co-operative is that of collective
- The money is used to buy equipment during production. decision making/ good decisions are made
- The farming co-operative improves marketing of products
- The importance of capital in production is that money is used to buy raw - The benefit of being a member of farming co-operative is that of easy access to
materials financial assistance from financial institutions
- The benefit of being a member of farming co-operative is that of sharing of a
- The importance of capital in production is that money is that money is used to common market to reduced competition
pay workers - The members of a farming co-operative benefit from collective saving which
gives them opportunity for bigger interest rates
- The importance of capital in production is that money is that money is used to - The benefit of being a member of farming co-operative is that of cost sharing, for
pay utilities such as water and electricity bills example, transport is shared so the cost is shared
- The importance of capital in production is that money is that equipment is used to - The members of farming co-operative benefit from bulk buying of raw materials
transform or change raw materials into semi-finished and finished goods which inputs makes them cheaper
- The importance of capital in production is that money is that buildings house the - The benefit of being a member farming co-operative is that of poverty alleviation
29
machines/products - The benefit of being a member of farming co-operative is that of employment
- The importance of capital in production is that money is that cars are used for creation
transportation
(ii) Describe ways in which the government helps local entrepreneurs. (ii) Explain the advantages of labour intensive production.
- The government can help local entrepreneurs by organising markets for local - The labour intensive production helps create employment to a large number of people
producers
- Labour intensive production is cheap to run and maintain / little capital required since
- The local entrepreneurs can be helped by government through tax holidays [which is simple technology used in making of goods and services.
allowing newly established from pay tax for a certain period of time and subsidies is
covering part of expenses on materials used in production] - The advantage of labour intensive provides workers with an opportunity to train on
the job
- The way in which government can help local entrepreneurs is through protecting
infant industries, for example, Import Substitution Strategy and Export Oriented - Labour intensive production causes less pollution / destruction of the environment
Strategy can be used to protect local industries from competition because of use of simple technology
- The government can help local entrepreneurs by making some production exclusively - Labour intensive production requires little skills to enter or run due to the use of
for locals, for example, saloons and transportation such as buses and taxies industry simple technology.
- The government can help local entrepreneurs by providing them with Training, for - Labour intensive production promotes human interaction due to the use of simple
example, Local Enterprise Authority (LEA). technology.
- The way in which government can help entrepreneurs is through provision of - Labour intensive production encourages craftsmanship because of the use of simple
financial assistance to locals, for example, National Development Bank (NDB) and technology.
Citizen Entrepreneurial Development Agency (CEDA)
- Labour intensive production uses local skills and knowledge because of the use of
(b)(i) Describe the characteristics of production amongst the hunting and simple technology.
- The characteristic of production amongst hunting and gathering societies is use

of Simple technology/tools/labour intensive
- The division of labour amongst hunting and gathering societies was gender, for
example, women gather wild fruits and men hunt wild animals.
- There was communal use of land/hunting areas among hunting and gathering
societies.
- The hunting and gathering societies depended on natural resources for their
survival.
- The hunting and gathering societies practised subsistence production
- There was craftsmanship production/use of traditional skills amongst hunting and
30
MASUNGA SENIOR SECONDARY SCHOOL (ii) Describe the problems that Multi-National Corporations cause to developing
countries.
DEVELOPMENT STUDIES
- The problem that multi-national corporations cause on developing countries is
Module 2: Production, Consumption & Investment that at times dominate economies by monopolistic practices.
- The multi-national corporations sometimes bring in their own experts instead of
Class Exercise 20: Marking Scheme training locals for managerial positions within the host country.
- The problem caused by multi-national corporations on developing countries is of
1. Study Fig. 1, which the relationship between Multi-National Corporations attracting experts/skilled locals to work for them at the expense of local
(MNCs) and developing countries. industries.
- The multi-national corporations encourage dependency and neo-colonialism
through dependence on foreign technology.
- The problem caused by Multi-national Corporation on developing countries is
that taking all the profits back to the country of their origin.
- The multi-national corporations sometimes interfere with the policies of the host
country.
- Some of Multi-national Corporation are too powerful for the host country to
control.
Localisation is the act of replacing foreign workers with nationals.
(b) (i) Explain why localisation is necessary in Botswana.
Fig. 1 - The reason localisation is necessary in Botswana because it helps to promote the
socio-economic development of locals
(a)(i) Explain how Multi-National Corporations benefit host countries.
- Localisation is part of restoring national pride and asserting a country’s independence
- The multi-national corporations benefit host countries by pay tax to the
government. - Localisation is necessary in Botswana because it helps in making Batswana believe in
- The multi-national corporations increase employment opportunities. (Benefit to themselves and not always show too much respect for foreigners
the people)
- The multi-national corporations bring new technology to the host countries. - Localisation is necessary in Botswana as citizens would occupy politically sensitive
(Technical knowhow) positions
- The multi-national corporations bring in foreign currency when they export from - Localisation creates employment for citizens
the host country. (International trade)
- The multi-national corporations enjoy greater economies of scale. - Development is in accordance to culture
- The multi-national corporations give support, mostly financial to the local social
clubs and associations. (Money) - There is possibility of making long term decisions as there is no fear of end of
- The multi-national corporations offer goods and services of better quality and contract
variety to customers. - Locals acquire necessary skills
- Workers are patriotic and have their national interest at heart
31
- The multi-national corporations widen the country’s income base increasing
Gross National Products. - Saves money wasted on foreigners
(ii) Suggest possible problems that the localisation process may cause in MASUNGA SENIOR SECONDARY SCHOOL
Botswana.
DEVELOPMENT STUDIES
- The possible problem that the localisation process may cause in Botswana is shortage
of skilled locals Module 2: Production, Consumption & Investment
- The localisation process in Botswana may cause problem of poor work ethics among Class Exercise 21: Marking Scheme
citizens
1 Study Fig.1, which shows some of the government policies in Botswana.
- The problem that the localisation process in Botswana may cause is of shortage of
funds to implement the policy.
- The problem caused by localisation process in Botswana is of lengthy training

programmes that may delay the process, for example, medical doctors.
- The localisation process in Botswana may be hindered by brain drain whereby trained
locals prefer to work in developed countries rather than at home.
- The possible problem faced by localisation in Botswana is lack of experience among

locals slows down production, for example, when a fresh local graduate replaces an
experienced expatriate graduate.
- The localisation policy creates conflict between home government and other
governments/ it strains foreign relations/ promotes xenophobia. Fig.1
(a)(i) Describe each policy shown in Fig.1.

- Citizen empowerment is when the government equips nationals with skills and
other means so that they can participate in the economy or development of their
country
- Localisation is when the government replaces foreign workers with nationals or
citizens.
- Privatisation of parastatals is when the government transfers ownership of its
businesses to individuals and companies usually through selling.
- Women and property ownership is when the government allows women to own
big possessions, for example houses and farms
32
[RULE: Do not penalise for repetition of terms]
(ii) For three of the policies shown in Fig. 2, suggest two ways by which each (b)(i) Describe ways by which the government of Botswana empowers citizens.
policy may improve production.
- The way by which the government of Botswana empowers citizens is through
 Citizen Empowerment training or educating citizens
- The government of Botswana empowers citizens through provision of financial
- Citizen Empowerment policy may improve production by increasing assistance to locals
businesses as locals are given financial assistance - The citizens are empowered by government through providing them with opportunity
to vote in elections
- The citizen empowerment policy increased production as citizens are - The government of Botswana empowers its citizens through provision of information
trained or become skilled using radio, television, newspapers on various issues
- The way by which government of Botswana empowers its citizens is through
 Localisation provision of health services to fight/ cure/control/treat diseases
- The localisation policy may improve production as locals are likely to - The government of Botswana empowers locals by teaching them their rights
- The government is providing a market to citizens or tenders as a way of empowering
work harder for their country or national pride them.
- The localisation policy may help to improve production as local - The government of Botswana helps with marketing of local goods and services to
outside markets
businesses are given financial assistance - The government empowers its citizens by reserving some of businesses for them.
 Privatisation of parastatals
(ii) Suggest challenges that the government may face when trying to follow the
- The privatisation of parastatals policy may lead to efficient use of localisation policy.
resources will result in high production
- The challenge that the government may face when trying to follow the localisation
- The privatisation of parastatals policy lead to possibility of increased
policy is of shortage of skilled locals
foreign direct investment (FDI) to fuel production through more capital
- The poor work ethics among citizens can lead to a challenge faced by government
or technology transfer
when trying to follow localisation policy.
 Women and property ownership
- The government may face challenges of shortage of funds to implement the
- More women owned businesses will increase production in the localisation policy
economy - The challenge that the government may face when trying to follow the localisation
policy is lengthy training programmes that may delay the process, for example,
- Increased production in women inclined industries, for example, medical doctors
Fashion and Design, Interior design, Beauty Parlours, Knitting and - The government may face challenges of Brain drain when trying to implement
localisation policy.
pottery - The challenge that the government may face when trying to follow the localisation
- Inherited funds can be used as capital for investment policy is lack of experience among locals slows down production, for example, when
a fresh local graduate replaces an experienced expatriate graduate
- Government allows females or women to own big or large possessions
or assets/material/goods - The localisation policy creates conflict between home government and other
33
governments/ it strains foreign relations/ promotes xenophobia.
[Accept any two correct points per policy]
MASUNGA SENIOR SECONDARY SCHOOL (ii) Suggest ways the productivity of the secondary sector could be improved in
Botswana.
DEVELOPMENT STUDIES
- The way productivity of the secondary sector could be improved in Botswana is
Module 2: Production, Consumption & Investment through training workers or entrepreneurs, for example, Local Enterprise
Authority (LEA)
- The secondary sector productivity could be improved through importation of raw
materials
- The productivity of secondary sector could be improved through provision of

cheaper utilities ,for example, water and electricity
- The secondary sector productivity could be improved by provision of funding or

loans at low interest rate, for example, through Citizen Entrepreneurial
Development Agency (CEDA) and National Development Bank (NDB)
- The secondary sector could be improved by provision of serviced land or

infrastructure, for example, availability of water, tarred roads, telecommunication
network and electricity
- The secondary sector could be improved by reduction of bureaucratic process or

delay in decision making or red tape.
- The productivity of secondary sector could be improved by use of improved or

better technology
(a)(i) Describe each type of production shown in Fig. 1. - The secondary sector productivity could be improved by inviting foreign
investors/Multi-National Companies (MNCs)
- Primary production is the extraction of raw materials from the environment
without changing their form
- The productivity of secondary sector could be improved through marketing/
- Secondary production is the changing of raw materials into semi-finished and finding market for locally produced goods
finished products/goods
- The secondary sector productivity could be improved through use of import
- Tertiary production deals with provision of services to support production [Allow substitution strategy and export oriented strategy
examples]
34
- Quaternary is the activities concerned with research, compilation, processing and
dissemination of the research information to improve human resources/
production.
(b)(i) Describe ways by which Botswana has benefited from primary production. (ii) Explain why investing in livestock farming in Botswana may be risky.
- The way by which Botswana has benefited from primary production is through
- The risk of investing in livestock farming in Botswana is that meat or beef prices
employment creation/improved standard of living of workers
can fail easily.
- The benefit of Botswana from primary production is that of earning foreign
exchange from export of raw materials such as diamonds, cooper, nickel and soda - The Livestock farming is risky in Botswana because livestock can be attacked by
ash diseases, for example, foot and mouth.
- The investing in livestock farming is risky in Botswana as livestock can be

attacked by pests, for example, tsetse fly.
infrastructural development, for example, tarred roads, improved
telecommunication network such as internet.
- The risk of investing in livestock farming is that of drought which can result in
death of many animals.
- The benefit of Botswana from primary production is that of being famous for
beef production and diamond mining
- The drought can reduce the quality of meat (grade/value) which make it risky to
invest in livestock farming in Botswana.
- The primary production has benefited Botswana through stimulation of industrial
growth, for example, meat processing and diamond polishing.
- The risk of investing in livestock farming in Botswana is that of other livestock
producers that can bring too much competition.
Food from production.
- The risk of investing in livestock farming in Botswana is that of demands by
importers , for example, European Union (EU) market can make sales difficult
with their terms and conditions
Acquisition of skills through training.
Technological advancement.
- The primary production is source of income for Botswana.
increased GDP/GNP/GNP per capita
35
MASUNGA SENIOR SECONDARY SCHOOL (c) Suggest three reasons for a decline in monthly earnings for agriculture
between 2002 and 2003.
DEVELOPMENT STUDIES
- The reason for a decline in monthly earnings for agriculture was caused
Module 2: Production, Consumption & Investment by unreliable rainfall leading to few agricultural products being
produced.
- The decline in monthly earnings for agriculture was caused by natural
1 Fig. 1 shows the average monthly earnings in pula of Botswana’s citizen by
disasters, for example, floods and drought.
economic activity. Use it to answer questions (a) to (c).
- The reason for a decline in monthly earnings for agriculture was due to
use of poor farming methods leading to few products being produced.
(d) Give three ways in which heavy reliance on primary products disadvantages
a developing country.
- The heavy reliance on primary products disadvantages a developing country

because of high unemployment.
- The developing countries will have less technological advancement because of

selling raw materials without adding value to them.
- The developing countries are going to earn less foreign currency by relying
heavily on primary products as are sold at a cheaper price.
(a)(i) What is the monthly earning in agriculture for 2002?
- P599
(ii) Which economic activity has the highest monthly earnings for 2003?
- Mining and Quarrying
(b) Identify two Secondary Sector economic activities from the above table.
- Manufacturing
- Construction
36
MASUNGA SENIOR SECONDARY SCHOOL - The benefit of growing tertiary industry will help a country to have technological
advancement
DEVELOPMENT STUDIES - The growth of tertiary industry will help with improvement in production
- The benefit of a growing tertiary industry will help to reduce imports
Class Exercise 24 (b)(i) Describe the social characteristics of Newly Industrialising Countries
(NICs)
- The social characteristic of Newly Industrialised Countries is that of decreasing

morbidity rate.
- The Newly Industrialised Countries have increasing literacy rate.
Death Rate.
Birth Rate.
- The Newly Industrialised Countries have decreasing Infant Mortality Rate.
- The social characteristic of Newly Industrialised Countries is that of increasing
urban population/urbanisation.
- The Newly Industrialised Countries have lower teacher-pupil ratio.
- The social characteristic of Newly Industrialised Countries is that of increasing
calorie intake
(a)(i) Using Fig. 1 only, describe the employment trend for each of the sectors of - The Newly Industrialised Countries have improved health facilities.
- The social characteristic of Newly Industrialised Countries is that of lower-
production shown in the post-industrial stage. doctor patient rate
- The primary sector employment is decreasing /falling/dropping/slow
- The secondary sector employment is decreasing/falling/dropping
(ii) Explain the importance of land in the industrialisation process.
- The tertiary sector employment is increasing
- The importance of land in the industrialisation process is that space or area is
- The quaternary sector employment is increasing/rising/fast
needed for building factories or factory site.
(ii) Describe the benefits of a growing tertiary industry. - The part of land surface is used for construction of infrastructure, for example,
roads, railway lines.
- The benefit of a growing tertiary industry is increased market
- The tertiary industry growth benefit is that of greater opportunities for new - The natural resources from land are used as raw materials in factories.
business/diversification
- The farmers grow crops on land which are used as raw materials in factories.
- The growth of tertiary industry helps with job creation
- The benefit of a growing tertiary industry is infrastructural development, for - The water is used to cooling and cleaning machines in industries.
example, telecommunication networks and tarred roads.
- The land in industrialisation process can be used as security or collateral to obtain
- The tax earning by government is a benefit of a growing tertiary industry.
37
- The growing tertiary industry will help a country to earn foreign exchange loan for financial institution, for example, Banks.
- The skills development is a benefit of a growing tertiary industry.
- The land can be used to provide capital for production through rental or leasing.
MASUNGA SENIOR SECONDARY SCHOOL (b)(i) Describe the problems faced by investors in Botswana.
DEVELOPMENT STUDIES - The problem faced by investors in Botswana is that of having small market to sell
their goods and services.
Module 2: Production, Consumption & Investment - The investors in Botswana will face problem of having few skilled manpower
which can lead to low production.
Class Exercise 25: Marking Scheme - The problem faced by investors in Botswana is that of poor infrastructure, for
example, poor telecommunication network and roads.
1 (a) (i) What are the advantages of developing the secondary sector in Botswana? - The investors in Botswana may face problem of lack of raw materials to produce
goods.
- The advantage of developing secondary sector in Botswana is that it will help to - The problem faced by investors in Botswana is that of expensive utilities such as
create employment. water and electricity bills.
- The developing of secondary sector in Botswana will with technological
advancement/ bring new technology. (ii) Describe ways in which the government can encourage the development of
- The development of secondary sector in Botswana will increase GDP/GNP/GNP local entrepreneurship.
per capita of the country.
- The developing of secondary sector will help Botswana earn foreign exchange. - The government can encourage the development of local entrepreneurship
- The advantage of developing secondary sector in Botswana helps with having through credit schemes/ facilities/ loans/grants/financial assistance, for example,
variety of goods and services locally. Citizen Entrepreneurial Development Agency (CEDA)
- Promote economic linkages (Economic linkages is when industries that produce - The government can encourage the development of local entrepreneurship
goods and services depend on each other ) through training in business skills, for example, Local Enterprise Authority
- Value added products produced/ semi-finished and finished goods will be - The government can encourage the development of local entrepreneurship
produced/ goods that are ready for use through provision of infrastructure/serviced plots, for example, plots with tarred
- Increased returns/ helps to maximise profit by selling finished goods roads, water, telecommunication networks and electricity
- Control of the prices - The government can encourage the development of local entrepreneurship
- Stability in prices & demand enjoyed through marketing of local products, for example, Botswana Export Development
Investment Agency (BEDIA)/buy local products campaign
- The government can encourage the development of local entrepreneurship
(ii) Explain why countries of the south still export mainly primary product through reserving some businesses for locals/citizens only, for example,
transportation industry such as taxies and buses and saloons
- The countries of the south still export mainly primary product due to unfair trade - The government can encourage the development of local entrepreneurship
patterns/ countries of the South are viewed as a source of raw materials through Tax holidays/rebates/tax lowering ( Tax holiday is when newly
- They are seen as market for manufactured goods/Neo-colonialism established businesses are exempted from paying tax for a certain period of time)
- The countries of the south still export mainly primary product due to lack of - The government can encourage the development of local entrepreneurship
technological capacity/machines through government subsidy
capital/debts through lowering inflation [reducing prices of goods and services]
industrial skills/ training through affordable utilities, for example, water and electricity
- They suffer from rigidity/unwillingness to accept and effect change - The government can encourage the development of local entrepreneurship
38
- The countries of the south still export mainly primary product due to principle of through political stability
comparative advantage - Privatization [which is the transfer of public assets to individuals and companies
usually through selling]
MASUNGA SENIOR SECONDARY SCHOOL (b) Describe any three ways in which woman and property ownership policy may
help to improve production.
DEVELOPMENT STUDIES
- The way in which women and property ownership policy may help to improve
production is by more women owned businesses in the economy
Class Exercise 26 - The women and property ownership policy help to increase production in women
1 (a) What is meant by citizen empowerment? inclined industries, for example, Fashion and Design, Interior design, Beauty
Parlours, Knitting and pottery
- Citizen empowerment is when the government equips nationals with skills and
other means so that they can participate in the economy or development of their - The women and property ownership policy will help females to inherit funds that
country can be used as capital for investment
(b) Describe three problems that may hinder the implementation of citizen - The government allows females or women to own big or large possessions or
empowerment in Botswana. assets/material/goods
- The problem that hinder implementation of citizen empowerment in Botswana is that

of fronting. [Fronting is when citizens are given money by foreigners to start a 3 (a) Define consumption.
business and become silent partners or shareholders.]
- Consumption is the use of goods and services to satisfy human needs and wants.
- The implementation of citizen empowerment policy in Botswana may be hindered by
insufficient market to sell the goods produced by locals or nationals or citizens (b) Describe three ways by which supply of goods affects demand.
- The problem hindering implementation of citizen empowerment in Botswana is that - The way by which supply of goods affects demand is that when the supply of
of poor business skills/ lack of entrepreneurial skills by locals goods is low the demand of goods will be high
- The implementation of citizen empowerment policy in Botswana may be hindered by - The supply of goods affects demand in such a way that when the supply of goods
lack of commitment from the bureaucrats or those in power or the government or high the demand of goods will be low
politicians
- The supply of goods affects demand in such a way that when the supply of goods
is constant the demand of goods will be constant
2 (a) What is meant by women and property ownership?
4 (a) Define the term investment.
- Women and property ownership is when the government allows females to
own big possessions, for example houses and farms - Investment using money/resources/employment to buy capital goods or to loan a
business in return for interests/ a share of a profit.
- Investment is using money to make/generate more income/revenue
39
- Investment is saving to make money/income/profit in the future
(b) Describe three ways by which a government can promote investment by its 5 (a) Define foreign reserves.
citizens.
- Foreign reserves is a country’s earnings from investments abroad and re-
- The way by which a government can promote investment is through provision of invested/ kept in international banks/ other countries
loans or financial assistance, for example, Citizen Entrepreneurial Development
Agency (CEDA) - Foreign reserves is the country’s money kept outside the country for
emergencies usually in that country’s currency, for example, drought and floods
- The government can promote investment by its citizens through training in
business skills, for example, Local Enterprise Authority (LEA)
(b) State three benefits of foreign reserves to Botswana.
- The government can promote investment by its citizens through providing
infrastructure/serviced plots, for example, plots with tarred roads, water, - The money is invested in International Financial Markets using international
telecommunication networks and electricity financial brokers to buy shares, bonds and equities hence generating profit.
- The government can promote investment by its citizens through - Foreign reserves as savings accrue/earns interest that is paid to the
protectionism/protection of infant industries/localisation/citizen empowerment country/loaning to other countries
- The government can promote investment by its citizens through marketing of - Foreign reserves helps a country to earn foreign exchange/ Foreign Exchange
local products, for example, buy local products campaign Earner
- The government can promote investment by its citizens through reserving some - Foreign reserves helps to enhance country’s credit worthiness [helps countries to
businesses for locals/citizens only, for example, transportation industry such as be able to get loans from other countries and international financial institutions
taxies and buses and saloons such as the World Bank and International Monetary Fund (IMF)
- The government can promote investment by its citizens through Tax - Foreign reserves helps to secure the country’s financial future/helps during
holidays/rebates/tax lowering ( Tax holiday is when newly established businesses emergencies
are exempted from paying tax for a certain period of time)
- The government can promote investment by its citizens through government

subsidy
- The government can promote investment by its citizens through lowering

inflation [reducing prices of goods and services]
- The government can promote investment by its citizens through affordable

utilities, for example, water and electricity
- The government can promote investment by its citizens through political stability
- The government can promote investment by its citizens through privatization
40
[which is the transfer of public assets to individuals and companies usually
through selling]

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DEVELOPMENT STUDIES EXERCISES

*Simple mentioning without definition is unacceptable

- Capital / money is needed to pay workers

- There is need for workers to provide labour in the production process

2.(a) Define simple technology.

- Simple technology is cheap and made form local materials.

5(a) What is appropriate technology?

- Appropriate technology is the skills, machinery/tools that are best suited to a

- B Class Exercise 6: Marking Scheme

- Labour intensive production is a way/process of making goods and providing

- Capital-intensive production is the use of advanced or complex machines to speed

- Capital intensive mode of production requires skilled manpower.

- Labour efficiency is the ability of workers to be highly productive in a work

5.(a) What is capital-intensive production?

- Capital-intensive production is the use of advanced or complex machines to speed

(a)(i) Which sector employs the highest percentage?

- Specialised labour DEVELOPMENT STUDIES

- Parastatals are formed by an Act of parliament/set up by the government

(d) Describe any three forms of specialisation.

- Specialisation by individual is when a person concentrates or gives great

- Specialisation by product is when an individual/company concentrates on

(d) Describe three conditions that promote labour efficiency in Botswana.

- The condition that promote labour efficiency in Botswana is that of provision of

- In socialism everyone has the right to work or employment.

- The goods and services are made available at low prices

(d) Give three disadvantages of socialism.

- Socialism suppresses individual freedom to think and act.

- The benefit of localisation is that development is in accordance to culture

2.(a) What is meant by a sole proprietor?

- Sole proprietor is an individual / person who owns and runs a business

(b) Give three advantages of a sole trader.

- This type of ownership is advantageous because the owner is usually self-

(b) Give three advantages of a joint venture.

- The advantage of joint venture is that of efficient/prudent management/sharing

- The advantage of joint venture is that of increased resource base.

- A good entrepreneur is a good motivator of employees

- A good entrepreneur is a good decision maker

- A good entrepreneur is a hard worker/productive

- A good entrepreneur is able to move with the times

- The sole proprietor employees are mostly members of the family

- Sole proprietor is usually found within the location of the owner

- The sole proprietor has got unlimited liability

- localisation is part of restoring national pride and asserting a country’s independence

- The characteristic of production amongst hunting and gathering societies is use

- There was craftsmanship production/use of traditional skills amongst hunting and

(b) (i) Explain why localisation is necessary in Botswana.

- The problem caused by localisation process in Botswana is of lengthy training

- The possible problem faced by localisation in Botswana is lack of experience among

(a)(i) Describe each policy shown in Fig.1.

[Accept any two correct points per policy]

- The productivity of secondary sector could be improved through provision of

- The secondary sector productivity could be improved by provision of funding or

- The secondary sector could be improved by provision of serviced land or

- The secondary sector could be improved by reduction of bureaucratic process or

- The productivity of secondary sector could be improved by use of improved or

- The investing in livestock farming is risky in Botswana as livestock can be

- The primary production is source of income for Botswana.

- The heavy reliance on primary products disadvantages a developing country

- The developing countries will have less technological advancement because of

- Mining and Quarrying