Industry & Trade in South Africa is one of 8 topics in the Grade 12 Geography CAPS syllabus, covered across 3 lessons on Study Vault. Below are real practice questions from this topic with full worked answers.
Sample practice questions
Easy
1. The informal sector consists of economic activities that are:
Not registered with, taxed by, or regulated by government
Always larger in scale than formal sector businesses
Exclusively based in rural areas
Only legal in certain South African provinces
Answer: Not registered with, taxed by, or regulated by government — The informal sector consists of unregistered, untaxed, and largely unregulated economic activities, ranging from street vending to informal repair services.
Easy
2. A "spaza shop" is an example of:
A small informal convenience store commonly found in South African townships
A large formal retail chain supermarket
A government-run trading facility
An export-only formal business
Answer: A small informal convenience store commonly found in South African townships — A spaza shop is a small, informally operated convenience store commonly found in South African townships, a well-known example of informal sector economic activity.
Medium
3. Why do informal businesses generally struggle to access formal credit such as bank loans?
Answer: They often lack the registration, credit history, or collateral formal lenders require — Formal lenders typically require registration, a credit history, and collateral, all of which informal businesses often lack, making it difficult for them to access formal credit and business support.
