DEVELOPMENT STUDIES EXERCISES

MODULE 2: PRODUCTION, CONSUMPTION & INVESTMENT

 MATER SPEI COLLEGE MATER SPEI COLLEGE

DEVELOPMENT STUDIES DEVELOPMENT STUDIES

Name: __________________________ Surname: __________________ Name: ________________________ Surname: ____________________
Class: ____________ Date: ______/____/__________
Class: ____________ Date: _______/______/__________
Module 2: Production, Consumption & Investment
Module 2: Production, Consumption & Investment
Class Exercise 1
Class Exercise 2
1 (a) Define production. [1]
1. Study Fig. 1 which shows different types of land ownership.
(b) Describe any three factors of production. [3]

2 (a) What is meant by public land ownership/state land? [1]

(b) Describe three ways by which the factors of production can affect the
production process. [3]
3 (a) What is meant by communal land ownership? [1]

(b) Give three advantages of communal land ownership. [3]

(a)(i) Describe each type of land ownership shown in Fig.1.

(ii) Suggest problems that people might face when they own land communally.
4 (a) What is meant by leasehold (renting) land ownership? [1]
[10 marks]
(b) State three disadvantages of leasehold land ownership. [3]
(b)(i) Describe the use of any three factors of production in hunting and gathering
society.
5(a) What is meant by private (freehold) land ownership? [1] (ii) Suggest reasons why hunting and gathering is practised by very few societies
today.
(b) Give three advantages of private land ownership. [3]
[10 marks]

Mater Spei College Development Studies Module 2: Production, Consumption & Investment 1
 MATER SPEI COLLEGE (a)(i) Describe each type of land ownership shown in Fig. 1.
DEVELOPMENT STUDIES (ii) Land ownership in Botswana is largely communal. Suggest problems
that communities in Botswana might face in trying to improve production
Name: ________________________Surname: ___________________________ in agriculture.
Class: ____________ Date: _______/________/__________ [10 marks]
Module 2: Production, Consumption & Investment
(b)(i) State the problems of using a capital intensive method of production
Class Exercise 3 for a developing country.
(ii) Explain how developing countries can raise capital for production.

[10 marks]

Mater Spei College Development Studies Module 2: Production, Consumption & Investment 2
 MATER SPEI COLLEGE (a)(i) Describe each factors of production shown in Fig.4 above.

DEVELOPMENT STUDIES (ii) Suggest two ways by which any three of the factors of production
mentioned above can affect the production process.
Name: ______________________ Surname: ______________________
[10 marks]
Class: ____________ Date: _________/_____/__________

Module 2: Production, Consumption & Investment (b)(i) Describe the characteristics of production amongst the hunting and
gathering societies.
Class Exercise 3
(ii) Describe ways of raising capital for production.
1. Study Fig. 1 which shows factors of production and answer questions
1(a)(i) and (ii). [10 marks]

Fig. 1

Mater Spei College Development Studies Module 2: Production, Consumption & Investment 3
 MATER SPEI COLLEGE Section B

DEVELOPMENT STUDIES
6. Fig. 1 below shows two different modes of production. Use it to
Name: ________________________ Surname: ____________________ answer questions (a) and (b).

Class: ____________ Date: ________/____/__________

Module 2: Production, Consumption & Investment

Class Exercise 4

1 (a) Define capital. [1]

(b) Describe any three ways of raising capital for production. [3]

2.(a) Define simple technology. [1]

(b) Describe three advantages of simple technology. [3]

3(a) What is meant by intermediate technology? [1]

(b) Give three disadvantages of intermediate technology. [3] (a)(i) Which diagram, A or B, shows labour intensive production? [1]

(ii) Which mode of production, A or B, is suitable for large scale

4 (a) What is meant by complex (advanced) technology? [1] production? [1]

(b) Give two characteristics of the type of production shown by diagram

(b) Describe three advantages of complex technology. [3] B. [2]

(c) Give three advantages of a capital intensive mode of production. [3]

5 (a) What is appropriate technology? [1]
(d) Describe three disadvantages of a capital intensive mode of
(b) Describe three factors determining appropriate technology. [3]
production. [3]

Mater Spei College Development Studies Module 2: Production, Consumption & Investment 4
 MATER SPEI COLLEGE MATER SPEI COLLEGE

DEVELOPMENT STUDIES DEVELOPMENT STUDIES

Name: _______________________ Surname: _____________________ Name: _______________________ Surname: _____________________
Class: ____________ Date: ________/______/__________
Class: ____________ Date: ________/______/__________
Module 2: Production, Consumption & Investment
Module 2: Production, Consumption & Investment
Class Exercise 5
Class Exercise 6
1. Study Fig. 1 which shown type of technology used in production.
1.(a) What is labour intensive production? [1]

(b)Give three advantages of labour intensive production. [3]

2 (a) What is capita-intensive production? [1]

(b)Describe three advantages of capital-intensive production. [3]

3(a) What is meant by money capital? [1]

(b) Describe three way of raising capital for production. [3]

Fig.1

(a)(i) Describe three major types of technology shown in Fig.1 above, giving 4(a) What is meant by capital goods? [1]
examples to illustrate your answer.
(b) Describe three importance of capital in production. [3]
(ii) Explain the importance of capital in production.

[10 marks] 5(a) Define information technology. [1]

(b)(i) Describe factors that influence the use of appropriate technology in a (b) Give three reasons that might slow down the introduction of
countries. Information Technology (IT) in Botswana schools. [3]
(ii) Describe factors which might make solar energy appropriate for Botswana.

[10 marks]

Mater Spei College Development Studies Module 2: Production, Consumption & Investment 5
 Section B

6. Study Fig. 1, which shows percentage employment by sector in

7. Fig. 2 shows some inputs required to make goods in a factory. Use it
Botswana in 2018
to answer questions (a)(i) and (ii).

Fig.2
Fig. 1
(a)(i) Identify one factor of production from Fig.2. [1]
(a)(i) Which sector has the lowest percentage of employment? [1]
(ii) Name one item of capital shown in Fig.2. [1]
(ii) What is the percentage difference between employment in the central
government and the private sector? [1]
(b) Give two disadvantages of capital intensive production to a
(b) Describe two roles that an entrepreneur plays in a business. [2] developing country. [2]

(c) Suggest three reasons why there is more skilled labour in developed (c) Describe three major types of technology, giving examples to
countries than in developing countries. [3] illustrate your answers. [3]

(d) Suggest three benefits of using division of labour in production. [3] (d) Describe three factors which might make solar energy appropriate for
Botswana [3]

Mater Spei College Development Studies Module 2: Production, Consumption & Investment 6
 MATER SPEI COLLEGE MATER SPEI COLLEGE

DEVELOPMENT STUDIES DEVELOPMENT STUDIES

Name: _________________________ Surname: ___________________ Name: _____________________ Surname: _______________________

Class: ____________ Date: ______/_____/__________ Class: ____________ Date: __________/______/__________

Module 2: Production, Consumption & Investment Module 2: Production, Consumption & Investment

Class Exercise 7 Class Exercise 8

1. Study Fig. 1 which is an extract about Rural Industries Innovation 1 (a) Define labour.
Centre (RIIC).
(b) Describe any three types of labour.
2 (a) What is division of labour?

(b) Give three advantages of division of labour

Fig.1
3 (a) What is specialisation of labour?
(a)(i) Describe factors which might make solar energy appropriate for
Botswana. (b) Give three disadvantages of division of labour.

(ii) Suggest problems that the Rural Industries Innovation Centre might
face in their effort to disseminate new developments.
4 (a) Define labour efficiency.
[10 marks]
(b) Give three reasons for high labour efficiency in developed countries.
(b)(i) Describe the importance of Information Technology (IT) in the
development of Botswana.
5 (a) What is capital-intensive production?
(ii) Suggest factors that might slow down the introduction of Information
Technology (IT) in Botswana schools. (b) Give three disadvantages of capital intensive production

[10 marks]

Mater Spei College Development Studies Module 2: Production, Consumption & Investment 7
 Section B 7 Study Fig. 1, which shows the percentage of agriculture employment in
the total workforce in Botswana. Use it to answer questions (a) (i) and (ii).
6. Fig. 1 shows formal employment by sector in Botswana (2012)

(a)(i) Which sector employs the highest percentage? [1]

(a)(i) What percentage of the total workforce was employed in agriculture
(ii) What is the percentage difference between Local Government and in 2003? [1]
Parastatal sector of employment? [1]
(ii) By how much did the percentage of the workforce employed in
agriculture increase between 2003 and 2005? [1]

(b) Give any two types of labour which are important in all employment (b) Suggest two reasons to explain the increase in the percentage of
sectors. [2] agricultural employment between 2003 and 2005. [2]

(c) Describe three characteristics of parastatals. [3] (c) Suggest three reasons for low agricultural production in communal
areas. [3]
(d) Describe any three forms of specialisation. [3]
(d) Describe three conditions that promote labour efficiency in Botswana.
[3]

Mater Spei College Development Studies Module 2: Production, Consumption & Investment 8
 MATER SPEI COLLEGE MATER SPEI COLLEGE

DEVELOPMENT STUDIES DEVELOPMENT STUDIES

Name: ______________________ Surname: ______________________ Name: _______________________ Surname: _____________________
Class: ____________ Date: _________/______/__________
Class: ____________ Date: ________/______/__________
Module 2: Production, Consumption & Investment
Module 2: Production, Consumption & Investment
Class Exercise 9

1.Study Fig. 1, which shows an assembly line in a car factory, and use it to answer questions (a)(i) and Class Exercise 10
(ii).
1.(a) Define market economic system. [1]

(b) State any three characteristics of market economic system. [3]

(c) Give three advantages of market economic system. [3]

(d) Describe three disadvantages of market economic system. [3]

2 (a) Define planned economic system/ socialism. [1]

(b)Describe three characteristics of planned economic system. [3]

(a)(i) Describe the factors that increase the efficient of labour.
(c) Give three disadvantages of socialism. [3]
(ii) Describe the advantages of specialisation of labour.

[10 marks]
(d) Give three advantages of socialism. [3]

(b)(i) Describe any three forms of specialisation in production.

(ii) Suggest factors that may reduce labour efficiency among workers in Botswana.

[10 marks]

Mater Spei College Development Studies Module 2: Production, Consumption & Investment 9
 MATER SPEI COLLEGE MATER SPEI COLLEGE

DEVELOPMENT STUDIES DEVELOPMENT STUDIES

Name: ________________________ Surname: ____________________ Name: ______________________ Surname: ______________________

Class: ____________ Date: __________/_____/__________

Class: ____________ Date: _______/______/__________
Module 2: Production, Consumption & Investment
Module 2: Production, Consumption & Investment
Class Exercise 12
Class Exercise 11
1. Study Fig. 1, which shows economic production systems.
1 Fig. 1, which shows world economies and answer question 1(a)

Fig.1
Fig.1
(a)(i) State five characteristics of a market economy. (a)(i) Describe the characteristics of a planned economic production
system.
(ii) Describe the disadvantages of a planned economy.
(ii) Explain the disadvantages of a market economic production system.
[10 marks] [10 marks]

(b)(i)Describe the features that show that Botswana follows a mixed

(b)(i) Describe the benefits of localisation to Botswana.
economic production system.
(ii) Suggest ways in which a government can empower its people. (ii) Explain the benefits of choosing a mixed economic production system.
[10 marks]
[10 marks]

Mater Spei College Development Studies Module 2: Production, Consumption & Investment 10
 MATER SPEI COLLEGE MATER SPEI COLLEGE

DEVELOPMENT STUDIES DEVELOPMENT STUDIES

Name: ________________________ Surname: ____________________

Name: _______________________ Surname: _____________________
Class: ____________ Date: _______/______/__________
Class: ____________ Date: _______/_______/__________
Module 2: Production, Consumption & Investment
Module 2: Production, Consumption & Investment
Class Exercise 14
Class Exercise 13 1 Study Fig. 1 which shows a sole proprietor form of enterprise

1 (a) What is meant by an entrepreneur? [1]

(b) Describe any three roles played by an entrepreneur. [3]

2 (a) What is meant by a sole proprietor? [1]

(b) Give three advantages of a sole trader. [3]

(c) Describe three disadvantages of a sole proprietor. [3]

3 (a) Define private limited companies. [1]

(b) Give three advantages of private companies. [3]

4 (a) What is meant by parastatals? [3] Fig.1

(a)(i) With the aid of fig. 1, describe the characteristics of sole proprietorship.
(b) State three advantages of parastatals. [3]
(ii) Suggest the problems of operating Sole proprietorship in a developing country.
(c) Describe three disadvantages of parastatals. [3]
[10 marks]
5(a) Define joint venture. [1] (b)(i) Describe ways by which privatization can benefit developing countries such as
Botswana.
(b) Give three advantages of a joint venture. [3]
(ii) Suggest factors that may make it difficult for the government of Botswana to empower
citizens.

[10 marks]

Mater Spei College Development Studies Module 2: Production, Consumption & Investment 11
 MATER SPEI COLLEGE MATER SPEI COLLEGE

DEVELOPMENT STUDIES DEVELOPMENT STUDIES

Name: _______________________ Surname: _____________________ Name: _______________________ Surname: _____________________

Class: ____________ Date: _________/_____/__________ Class: ____________ Date: ________/______/__________

Module 2: Production, Consumption & Investment Module 2: Production, Consumption & Investment

Class Exercise 15 Class Exercise 16

1 Study Fig. 1 which is an extract on parastatals.

Fig.1
(a)(i) What are the qualities of a good entrepreneur?
(a)(i)With the aid of Fig. 1, describe characteristics of parastatals.
(ii) How can an entrepreneur raise capital for production?
(ii)Suggest benefits of operating parastatals to a developing country.
[10 marks]

Most women entrepreneurs start as sole proprietors in the informal [10 marks]
sector.
(b)(i) Explain why some parastatals have been privatised.
(b) (i) Give the characteristics of a sole proprietorship.
(ii) Describe the disadvantages of operating as a sole proprietor in the (ii) Suggest problems that may be caused by privatisation.
informal sector.
[10 marks] [10 marks]

Mater Spei College Development Studies Module 2: Production, Consumption & Investment 12
 MATER SPEI COLLEGE MATER SPEI COLLEGE

DEVELOPMENT STUDIES DEVELOPMENT STUDIES

Name: _______________________ Surname: _____________________ Name: _______________________ Surname: _____________________

Class: ____________ Date: ________/______/__________ Class: ____________ Date: _________/_____/__________

Module 2: Production, Consumption & Investment Module 2: Production, Consumption & Investment

Class Exercise 17 Class Exercise 18

1. Study Fig. 1, which is an extract about parastatals. 1 (a) What is meant by ‘enterprise’? [1]

A parastatal is a company, agency or intergovernmental organisation that (b) Describe three advantages of partnership in business. [3]
has a large amount of political influence and is separate from the
2 (a) What are multi-national companies? [1]
government, but whose activities serve the state, either directly or
indirectly (b) Give three problems caused by multi-national companies in
developing countries. [3]
Fig.1
3(a) Define cooperatives. [1]
(a)(i) Describe the characteristics of a parastatal.
(b) Give three benefits of being a member of a farming cooperative. [3]
(ii) Suggest the benefits of having parastatals for a country like Botswana.
4 (a) Define privatisation. [1]
[10 marks]
(b) Give three advantages of privatisation of parastatals. [3]
(b)(i) Describe the importance of foreign reserves as a form of investment
to a country. 5 (a) Define localisation of labour. [1]
(ii) Suggest ways by which the government of Botswana can promote a (b) Describe any three benefits of localisation. [3]
culture of investment.

[10 marks]

Mater Spei College Development Studies Module 2: Production, Consumption & Investment 13
 MATER SPEI COLLEGE MATER SPEI COLLEGE
DEVELOPMENT STUDIES
DEVELOPMENT STUDIES
Name: _________________________ Surname: ___________________
Name: _______________________ Surname: _____________________
Class: ____________ Date: ______/______/__________
Class: ____________ Date: _______/______/__________
Module 2: Production, Consumption & Investment
Module 2: Production, Consumption & Investment
Class Exercise 19
Class Exercise 20
1 Study Fig. 1 which shows a weaving co-operative.
1. Study Fig. 1, which the relationship between Multi-National Corporations
(MNCs) and developing countries.

Fig. 1
Fig. 1
(a)(i) Explain how Multi-National Corporations benefit host countries.
(a)(i) With the aid of Fig. 1, describe the advantages of being a member of a co-operative.
(ii) Describe the problems that Multi-National Corporations cause to developing countries.
(ii) Suggest how a government can ensure that co-operative are successful.
[10 marks]
[10 marks]
Localisation is the act of replacing foreign workers with nationals.
(b)(i) Describe ways by which an entrepreneur can raise capital for production.

(ii) Explain the importance of capital in production.

(b) (i) Explain why localisation is necessary in Botswana.
[10 marks]
(ii) Suggest possible problems that the localisation process may cause in Botswana.

[10 marks]

Mater Spei College Development Studies Module 2: Production, Consumption & Investment 14
 MATER SPEI COLLEGE MATER SPEI COLLEGE

DEVELOPMENT STUDIES DEVELOPMENT STUDIES

Name: ________________________ Surname: ____________________ Name: _______________________ Surname: _____________________

Class: ____________ Date: _______/______/__________ Class: ____________ Date: ________/______/__________

Module 2: Production, Consumption & Investment Module 2: Production, Consumption & Investment

Class Exercise 21 Class Exercise 22

1 Study the extract below and use it to answer question 1(a). 1 Study Fig.1, which shows some of the government policies in Botswana.

Most of the large commercial farmers in Namibia belong to a co-operative

such as Agra. Co-operatives can also be of great benefit to subsistence
farmers and they have been set up in a number of African countries.
Adapted from: Development Studies 1 by Mweti and Van Wyk

Fig.1

(a)(i) Describe the advantages of being a member of farming co-operative. Fig.1

(ii) Describe ways in which the government helps local entrepreneurs. (a)(i) Describe each policy shown in Fig.1.
[10 marks] (ii) For three of the policies shown in Fig. 2, suggest two ways by which
(b)(i) Describe the characteristics of production amongst the hunting and each policy may improve production.
gathering societies. [10 marks]
(ii) Explain the advantages of labour intensive production. (b)(i) Describe ways by which the government of Botswana empowers
[10 marks] citizens.
(ii) Suggest challenges that the government may face when trying to
follow the localisation policy.
[10 marks]

Mater Spei College Development Studies Module 2: Production, Consumption & Investment 15
 MATER SPEI COLLEGE MATER SPEI COLLEGE

DEVELOPMENT STUDIES DEVELOPMENT STUDIES

Name: ______________________ Surname: ______________________ Name: ______________________ Surname: ______________________

Class: ____________ Date: _________/______/__________ Class: ____________ Date: _________/______/__________

Module 2: Production, Consumption & Investment Module 2: Production, Consumption & Investment

Class Exercise 23 Class Exercise 24

1 Study Fig. 1, which shows different sectors of production.

(a)(i) Describe each type of production shown in Fig. 1. Fig.1

(ii) Suggest ways the productivity of the secondary sector could be (a)(i) Describe the main activities in each sector of production shown in Fig. 1.
improved in Botswana.
(ii) Describe the benefits of the secondary sector of production to Botswana.
[10 mark]
[10 marks]
(b)(i) Describe ways by which Botswana has benefited from primary (b)(i) Suggest the ways in which productivity of the primary sector could be improved in
production. Botswana.

(ii) Explain why investing in livestock farming in Botswana may be risky. (ii) Suggest reasons why investing in livestock farming in Botswana may be risky.

[10 marks] [10 marks]

Mater Spei College Development Studies Module 2: Production, Consumption & Investment 16
 MATER SPEI COLLEGE MATER SPEI COLLEGE

DEVELOPMENT STUDIES DEVELOPMENT STUDIES

Name: ________________________ Surname: ____________________ Name: _______________________ Surname: _____________________

Class: ____________ Date: ________/_____/__________ Class: ____________ Date: ________/______/__________

Module 2: Production, Consumption & Investment Module 2: Production, Consumption & Investment

Class Exercise 25 Class Exercise 26

1 Fig. 1 shows the average monthly earnings in pula of Botswana’s citizen
by economic activity. Use it to answer questions (a) to (c).

(a)(i) What is the monthly earning in agriculture for 2002? [1]

(ii) Which economic activity has the highest monthly earnings for 2003?
(a)(i) Using Fig. 1 only, describe the employment trend for each of the sectors of
[1] production shown in the post-industrial stage.

(b) Identify two Secondary Sector economic activities from the above (ii) Describe the benefits of a growing tertiary industry.
table. [2]
[10 marks]
(c) Suggest three reasons for a decline in monthly earnings for (b)(i) Describe the social characteristics of Newly Industrialising Countries (NICs)
agriculture between 2002 and 2003. [3]
(d) Give three ways in which heavy reliance on primary products (ii) Explain the importance of land in the industrialisation process.
disadvantages a developing country. [3]
[10 marks]

Mater Spei College Development Studies Module 2: Production, Consumption & Investment 17
 MATER SPEI COLLEGE MATER SPEI COLLEGE

DEVELOPMENT STUDIES DEVELOPMENT STUDIES

Name: ______________________ Surname: ______________________ Name: _____________________ Surname: _______________________

Class: ____________ Date: _______/_______/__________ Class: ____________ Date: __________/______/__________

Module 2: Production, Consumption & Investment Module 2: Production, Consumption & Investment

Class Exercise 27 Class Exercise 28

1 (a) (i) What are the advantages of developing the secondary sector in
Botswana? 1 (a) What is meant by citizen empowerment? [1]

(ii) How does the employment structure of a developing country differ (b) Describe three ways in which the government of Botswana can use to
from that of a developed country? empower its citizens. [3]

[10 mark] 2 (a) What is meant by women and property ownership? [1]
(b)(i) Describe the problems faced by investors in Botswana. (b) Describe any three ways by which woman and property policy may
help to improve production. [3]
(ii) Describe ways in which the government can encourage the
development of local entrepreneurship. 3 (a) Define consumption. [1]
[10 mark] (b) Describe three ways by which supply of goods affects demand. [3]

4 (a) Define the term investment. [1]

(b) Describe three ways by which a government can promote investment
by its citizens. [3]
5 (a) Define foreign reserves. [1]

(b) State three benefits of foreign reserves to Botswana. [3]

Mater Spei College Development Studies Module 2: Production, Consumption & Investment 18