Economics Grade 11 P2 Eastern Cape November 2018 QP (Eng)

Downloaded from hlayiso.com NATIONAL SENIOR CERTIFICATE GRADE 11 NOVEMBER 2018 ECONOMICS P2 MARKS: 150 TIME: 2 hours This question paper consists of 12 pages.

Downloaded from hlayiso.com 2 ECONOMICS P2 (EC/NOVEMBER 2018) INSTRUCTIONS AND INFORMATION 1. Answer FOUR questions as follows in the ANSWER BOOK: SECTION A: COMPULSORY SECTION B: Answer any TWO of the three questions. SECTION C: Answer ONE of the two questions. 2. Answer only the required number of questions. Answers in excess of the required number will NOT be marked. 3. Answer the questions in full sentences and the format, content and the context of your responses must comply with the cognitive requirements of the questions. 4. Number the answers correctly according to the numbering system used in this question paper. 5. Write the question number above each answer. 6. Read ALL the questions carefully. 7. Start EACH question on a NEW page. 8. Leave 2–3 lines between subsections of questions. 9. Use only black or blue ink. 10. You may use a non-programmable pocket calculator. 11. Write neatly and legibly. Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/NOVEMBER 2018) ECONOMICS P2 3 SECTION A (COMPULSORY) QUESTION 1 30 MARKS – 20 MINUTES 1.1 Various options are provided as possible answers to the following questions. Choose the correct answer and write only the letter (A–D) next to the question number (1.1.1–1.1.8) in the ANSWER BOOK, for example 1.1.9 C. 1.1.1 What would be the economic profit if you had revenue of R10 000, explicit costs of R6 000 and implicit costs of R2 500? A 10 000 B 1 500 C 500 D 15 000 1.1.2 Average variable costs is calculated by ... A variable costs divided by number of units produced. B fixed costs divided by units produced. C fixed costs minus variable costs. D total costs plus fixed costs. 1.1.3 A positive value of cross elasticity of demand will ... A move in the opposite direction to price. B not be influenced by price. C move in the same direction as price. D be independent of the related goods. 1.1.4 ONE of the following is a contributing factor to the North–South divide. A Mobility of labour B Increased prices C Political stability D Rate of development 1.1.5 Total utility can be defined as ... A total satisfaction gained by adding up all utils. B satisfaction gained from consuming the last unit. C measure of the value of satisfaction. D difference in measurements of utility. 1.1.6 Environmental degradation can be described as ... A letting agricultural runoff cause depletion and killing fish downstream. B using solar power at a rapid rate. C using oil to make gasoline. D recycling. Copyright reserved Please turn over

Downloaded from hlayiso.com 4 ECONOMICS P2 (EC/NOVEMBER 2018) 1.1.7 The National Forest Act aims to ... A protect and enhance quality air B ensure that local communities share the benefits of forests. C set standards for the disposal of waste. D promotes sustainable management, development and protection of forests 1.1.8 Export promotion refers to ... A production of goods previously imported. B subsidising producers to produce more for exports. C removing trade restrictions. D making trade rules the same all over the world. (8 x 2) (16) 1.2 Choose a description from COLUMN B that matches an item in COLUMN A. Write only the letter (A–J) next to the question number (1.2.1–1.2.8) in the ANSWER BOOK, for example 1.2.2 H. COLUMN A COLUMN B 1.2.1 Loss A occurs when countries decide to economically work together 1.2.2 Monopolies B a foreign company invests in business in another country in physical assets 1.2.3 Regionalisation C few large sellers dominating the market 1.2.4 Income elasticity of D people have a tendency about fauna demand and flora, preventing them from being extinct 1.2.5 Foreign direct E barriers protect them from competition investment by other businesses F measures the responsiveness of demand to a change in income 1.2.6 Environmental G exploiting natural resources without sustainability destroying the ecological balance of an area 1.2.7 Oligopoly H occurs when a business has costs that exceed revenue 1.2.8 Private property rights I a formal agreement between nations J people care for flora and fauna if they are given the rights to own them (8 x 1) (8) Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/NOVEMBER 2018) ECONOMICS P2 5 1.3 Give ONE term for each of the following descriptions. Write only the term next to the question number (1.3.1–1.3.6) in the ANSWER BOOK. 1.3.1 Occurs when the cost per unit decreases while quantities produced increase 1.3.2 Many buyers and sellers selling differentiated products 1.3.3 A situation where poor families cannot break away from poverty 1.3.4 A period whereby only one factor of production can be varied 1.3.5 The introduction of contaminants into the environment 1.3.6 Indicator generally used to measure the income distribution between groups of people (6 x 1) (6) TOTAL SECTION A: 30 Copyright reserved Please turn over

Downloaded from hlayiso.com 6 ECONOMICS P2 (EC/NOVEMBER 2018) SECTION B Answer any TWO of the three questions from this section in the ANSWER BOOK. QUESTION 2: MICROECONOMICS 40 MARKS – 30 MINUTES 2.1 Answer the following questions. 2.1.1 List TWO examples of fixed costs. (2 x 1) (2) 2.1.2 What would encourage a producer to continue increasing its production? (2) 2.2 Study the graph below and answer the questions that follow. MARKET FOR PETROL PRICE D S1 S E2 P1 P E S1 D S Q1 Q QUANTITY 2.2.1 What is the impact on the price and quantity of the shift in supply from SS to S1S1? (2) 2.2.2 Explain the phrase inverse relationship. (2) 2.2.3 What may be the cause of a shift in supply from SS to S 1S1? (2) 2.2.4 Draw the graph of the complement product (petrol) and indicate what the reaction would be. (4) Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/NOVEMBER 2018) ECONOMICS P2 7 2.3 Study the extract below and answer the questions that follow. OLIGOPOLIES A few large oligopolies dominate an oligopoly market, i.e. just a few handset manufacturing companies dominate the cell network of South Africa. The products are similar, and sold by a few companies. Moreover, the products are branded due to extreme competition, and because there are huge long- term entry barriers, the companies make exorbitant profits. The competing companies have an unusual interdependence, to the point that they almost operate in unison. [Adapted from Markitects./co.za] 2.3.1 From the extract, list any TWO features of an oligopoly (2) 2.3.2 Explain the term entry barrier. (2) 2.3.3 Why do firms collude with one another? (2) 2.3.4 How does branding assist a company operating in an oligopoly market structure? (2 x 2) (4) 2.4 Briefly discuss nature of the product and entry as characteristics of a perfect market. (8) 2.5 With the aid of graphs, explain how an increase in demand of a product affects the factor market. (8) [40] Copyright reserved Please turn over

Downloaded from hlayiso.com 8 ECONOMICS P2 (EC/NOVEMBER 2018) QUESTION 3: CONTEMPORARY ECONOMIC ISSUES 40 MARKS – 30 MINUTES 3.1 Answer the following questions. 3.1.1 List any TWO aspects that indicate the level of development in a country. (2 x 1) (2) 3.1.2 Why is it important for us to sustain the environment? (2) 3.2 Study the cartoon below and answer the questions that follow. TRADE LIBERALISATION [Source: www.cartoonstock.com] 3.2.1 Which economic concept can be associated with the phrase ‘The world is round, we’ll get there’? (1) 3.2.2 What does the abbreviation WTO stand for? (1) 3.2.3 Briefly explain the concept free trade. (2) 3.2.4 Explain the relationship between comparative advantage and free trade. (2) 3.2.5 What do countries stand to gain from a free trade policy? (4) Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/NOVEMBER 2018) ECONOMICS P2 9 3.3 Study the information below and answer the questions that follow. PROTECTING THE ENVIRONMENT The earth is an ecosystem that deserves our protection. Without our environment, we would be unable to thrive as humans. It is up to each of us to do our part to help protect the environment. Any time you reduce the amount of water you use, save on gasoline, reduce the use of electricity, prevent items from going into landfills, or save on natural resources, you help protect the environment in important ways. [Source: www.consumerprotect.com] 3.3.1 Identify from the above extract any TWO ways of protecting the environment. (2) 3.3.2 Briefly describe the concept ecosystem. (2) 3.3.3 Explain price policy as a method of protecting the environment. (1 x 2) (2) 3.3.4 Why is it vital for human beings to protect the environment? (4) . 3.4 Explain changes in employment conditions and changes in culture as consequences of globalisation. (8) 3.5 Why do you think taking care of forests is important for the economy and the environment? (8) [40] Copyright reserved Please turn over

Downloaded from hlayiso.com 10 ECONOMICS P2 (EC/NOVEMBER 2018) QUESTION 4: MICROECONOMICS AND CONTEMPORARY ECONOMIC ISSUES 40 MARKS – 30 MINUTES 4.1 Answer the following questions. 4.1.1 Give any TWO member states of the SADC region. (2 x 1) (2) 4.1.2 Why does the average fixed-cost curve slope downwards from left to right? (1 x 2) (2) 4.2 Study the graph below and answer the questions that follow. MC Price ATC P e MR / AR 0 quantity 4.2.1 Which market structure is depicted above? (1) 4.2.2 What type of profit is indicated in the above graph? (1) 4.2.3 Briefly explain point ‘e’ on the graph. (2) 4.2.4 Explain the slope of the marginal cost curve. (2) 4.2.4 Why are MR and AR equal in the graph? (4) Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/NOVEMBER 2018) ECONOMICS P2 11 4.3 Study the extract below and answer the questions that follow. LOSS OF BIODIVERSTY AND GLOBAL CLIMATE CHANGE Global climate change is occurring at an unprecedented rate today, mainly due to an increased emission of greenhouse gases such as CO 2. Global temperatures have increased by about 0,6–0,7 ºC and are predicted to further increase by 1,4–5,8 ºC by 2100. Loss of biodiversity has become a serious issue in many places around the world. Many factors such as habit loss, degradation, excessive nutrient load, air and water pollution, overexploitation and unsustainable use of natural resources contribute to the loss of biodiversity. 4.3.1 List any TWO factors that contribute to the loss of biodiversity. (2 x 1) (2) 4.3.2 What is the main cause of climate change? (2) 4.3.3 Briefly explain brown environmental issues. (2) 4.3.4 How does climate change affect the economic environment? (2 x 2) (4) 4.4 Briefly discuss the SMART principle in designing the objectives of business. (8) 4.5 What would South Africa gain from integrating with other economies? (8) [40] TOTAL SECTION B: 80 Copyright reserved Please turn over

Downloaded from hlayiso.com 12 ECONOMICS P2 (EC/NOVEMBER 2018) SECTION C Answer any ONE of the two questions from this section in the ANSWER BOOK. Your answer will be assessed as follows: STRUCTURE OF THE ESSAY MARK ALLOCATION Introduction The introduction is a lower-order response.  A good starting point would be to define the main concept related to the question topic.  Do not include any part of the question in your introduction. Max. 2  Do not repeat any part of the introduction in the body.  Avoid saying in the introduction what you are going to discuss in the body. Body Max. 26 Main part: Discuss in detail/In-depth discussion/Examine/Critically discuss/Analyse/Compare/Evaluate/Distinguish/Differentiate/Explain Additional part: Give own opinion/Critically discuss/Evaluate/Critically evaluate/Draw a graph and explain/Use the graph given and explain/Complete the given graph/Calculate/Deduce/Compare/ Max. 10 Explain/Distinguish/Interpret/Briefly debate/How/Suggest Conclusion Any higher-order conclusion should include:  A brief summary of what has been discussed without repeating facts already mentioned  Any opinion or value judgement on the facts discussed Max. 2  Additional support information to strengthen the discussion/analysis  A contradictory viewpoint with motivation, if required  Recommendations TOTAL 40 QUESTION 5: MICROECONOMICS 40 MARKS – 40 MINUTES  With the aid of fully labelled diagrams, discuss types of price elasticity of demand. (26)  What reasons would you give for the reaction of consumers to price changes? (10) [40] QUESTION 6: CONTEMPORARY ECONOMIC ISSUES 40 MARKS – 40 MINUTES  Discuss in detail the causes of poverty. (26)  Has South Africa been successful in trying to deal with this challenging issue of poverty? (10) [40] TOTAL SECTION C: 40 GRAND TOTAL: 150 Copyright reserved Please turn over