Economics Grade 12 KZN June 2021 Question Paper

MARKS DURATION : Downloaded from hlayiso.com EDUCATION REPUBLIC OF SOUTH AFRICA NATIONAL SENIOR CERTIFICATE ECONOMICS JUNE 2021 COMMON TEST SSSSS ees eS ss ee eee eee eee Se 100 1% Hours This Question Paper consists of 14 pages. Please turn over

Downloaded from hlayiso.com NSC- Grade 12 INSTRUCTIONS AND INFORMATION questions as follows in the ANSWER BOOK. DMPULSORY swer any TWO of the three questions. iswer any ONE of the two questions 2. Write the question number above each answer. 3. Answer only the required numbers of questions. Answers in excess of the required number will not be marked. 4. Answer the questions in full sentences and ensure that the format, content and context of your responses comply with the cognitive requirements of the questions. is) Number the answers correctly according to the numbering system used in this question paper. 6. Read the questions carefully. i, Start each question on a new page. 8. Leave 2-3 lines between sub sections of questions. 9. Use only black or blue ink. 10. You may use a non- programmable pocket calculator. 11. Write legible and present your | Copyright reserved Please turn over

Downloaded from hlayiso.com Economics 3 Common Test June 2021 NSC- Grade 12 SECTION A: COMPULSORY: MICROECONOMICS 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. D. 1.1.1. | The period of production where it is not possible to change factors of production is called a/an ... run. immediate short average long 0NOW>D 1.1.2. Prices controlled by the government on certain essential goods are called ... price. A __ administered B relative C absolute D- market 1.1.3. A product with no close substitutes can be described as ... A homogeneous. B differentiated. c D unique. heterogenous. 1.1.4. Entry into the monopoly market is ... A difficult. B free. Cc easy. D blocked. 1.1.5. Expenses incurred by the firms whe’ ... costs. and services is called private social implicit external 0UQODDY Copyright reserved Please turn over

Copyright reserved Downloaded from hlayiso.com NSC- Grade 12 . Costs or benefits to third parties not included in the market price are Called ... A _ efficiencies. B_ externalities. C_ excludabilities. D__ information. . Agroup of businesses that produce homogenous products in the market is called ... A __ producers. B firms. C sellers. D _ industry. . The business that cannot influence price is called a ... price setter. price maker. price taker. price leader. (8 x 2) (16) UNOWD Please turn over

Downloaded from hlayiso.com 5 Economics Common Test June 2021 NSC- Grade 12 1.2. Choose a description from COLUMN B that matches the item in COLUMN A. Write only the letter (A-I) next to the question numbers (1.2.1. to 1.2.8) in the ANSWER BOOK. COLUMN A COLUMN B 1.2.1. Break-even A A formal agreement between firms in the same industry to reduce competition. 1.2.2 Explicit B Amarket whose entry is blocked due to 1.2.3 Patent legislation. 1.2.4 Cartel C Business expenses that cannot be recovered e.g. advertising. 1.2.5 Average revenue D_ Actual expenditure of running the business such 1.2.6 Artificial monopoly as wages, insurance born by the business. 1.2.7 Taxes E_ Inputs that are used in a business and owned by the entrepreneur. F Exclusive rights given to produce certain goods and services. G_ Income received per unit sold. An alternative concept for the point where a firm in a perfect market makes normal profit. | Compulsory payment to the government to cater for public services. (8 x 1) (8) Copyright reserved Please turn over

Downloaded from hlayiso.com NSC- Grade 12 1.3. Give ONE term for EACH of the following descriptions. Write only the term next to the question numbers (1.3.1 to 1.3.6) in the ANSWER BOOK. Abbreviations, acronyms and examples WILL NOT be accepted. 1.3.1 A situation where marginal revenue is equal to marginal costs. 1.3.2 A decrease in the average cost of production per unit as output increases 1.3.3 A market that is dominated by two large businesses. 1.3.4 Strategy used by businesses to distinguish their products from those of competitors. 1.3.5 A situation where it is not possible to make anybody better off without making someone worse off. 1.3.6 Money paid by government to businesses to reduce costs of production. (6x1) (6) TOTAL SECTION A: [30] Copyright reserved Please turn over

Downloaded from hlayiso.com Economics 7 Common Test June 2021 NSC- Grade 12 SECTION B Answer any TWO of the three questions in this section in the ANSWER BOOK. QUESTION 2: MICROECONOMICS 40 MARKS — 30 MINUTES 2.1. Answer the following questions. 2.1.1. List any TWO characteristics of public goods. (2x1) (2) 2.1.2 Why is the demand curve equal to average revenue in the perfect market? (1x2) (2) 2.2. Study the information below and answer the questions that follow. PERFECT COMPETITION All markets exist outside the perfect competition model because of its abstract nature. Some markets resemble perfect competition more than others. [source www. Shuttersstock.com] 2.2.1 Give ONE example of near perfect market. (1) 2.2.2 What is the nature of product in this market? (1) 2.2.3 Briefly describe the term marginal cost. (2) 2.2.4 Explain the entry of firms in a perfect market. (2) 2.2.5 Why are firms in the perfect market not able to control price? (2x2) (4) Copyright reserved Please turn over

Downloaded from hlayiso.com NSC- Grade 12 2.3. Study the graph below and answer the questions that follow. KINKED DEMAND CURVE A D RI2 f-* Porm i — R10 i aq & en ‘ Fe a. = : 4 = i t H ‘, i \ ! H D A i > 7 Quantity ye 2.3.1 Identify the market price on the graph above. (1) 2.3.2 Which part of the demand curve is relatively inelastic? (1) 2.3.3 Briefly describe the term price leadership. (2) 2.3.4 Why would firms be reluctant to increase prices in an oligopolist market? (2) 2.3.5 Calculate the revenue earned by this firm. Show all calculations. (4) 2.4 Using a correctly labelled graph, discuss how a firm uses TR/TC rule to maximize profit. (8) 2.5 Evaluate how collusion can positively affect the economy. (8) [40] Copyright reserved Please turn over

Downloaded from hlayiso.com Economics 9 Common Test June 2021 NSC- Grade 12 QUESTION 3: MICROECONOMICS 40 MARKS - 30 MINUTES 31 Answer the following questions. 3.1.1 Give TWO examples of monopolistic competition markets. (2x1) (2) 3.1.2. How does reduction of producer taxes affect the (1x2) (2) consumers? a2 Study the table below and answer the questions that follow. COST AND BENEFIT ANALYSIS IN PROVISION OF ELECTRICITY TO COMMUNITY Communities Private Costs Rbn Private Benefits Rbn KWAHLATHINI 135 200 KWAMAHHESHE 140 150 ETSHELIMNYAMA 120 110 KWANONTSHIZA 200 250 3.2.1. Which institution uses cost benefit analysis? (1) 3.2.2. What type of prices are used to calculate this technique? (1) 3.2.3. Briefly describe the term private benefit. (2) 3.2.4. Why does the government implement minimum prices? (2) 3.2.5. Calculate the cost benefit anaylsis of KwaNontshiza. Show all (4) calculations. Copyright reserved Please turn over

NSC- Grade 3.3. Study the graph below and answer the questions that follow. 12 Downloaded from hlayiso.com PRICE/ cost/ REVENUE 20] \ S THE PERFECT MARKET SMC 45 10 50 100 QUANTITY 3.3.1 Identify profit maximization in the long term. (1) 3.3.2 Which curve represents the demand curve in the graph above in the (1) long run? 3.3.3. Briefly describe the term variable costs. (2) 3.3.4 Why is the price at point E2 lower than the price at point E1? (2) 3.3.5 Calculate the value of the shaded area. Show ALL calculations. (2x2) (4) 3.4. With a correctly labelled graph, discuss production inefficiency in the markets. (4x2) (8) 3.5. Evaluate the success of Competition policy in the economy. (4x2) (8) [40] | | | Copyright reserved | Please turn over

Downloaded from hlayiso.com Economics 41 Common Test June 2021 NSC- Grade 12 QUESTION 4 MICROECONOMICS 40 MARKS — 30 MINUTES 4.1. Answer the following questions. 4.1.1 Give TWO examples of positive externalities. (2x1) (2) 4.1.2. Why do people in rural areas sometimes pay higher prices for goods and services than those living in urban areas? (1x2) (2) 4.2 Study the picture below and answer the questions that follow. THE HYBRID STRUCTURED MARKET [source www.google.com] 4.2.1 Identify the market structure depicted above. (1) 4.2.2 What is the shape of the demand curve in this market? (1) 4.2.3 Briefly describe the term substitute goods. (2) 4.2.4 Why are firms in this market sometimes regarded as price (2) setters? 4.2.5 How does branding promote businesses in the industry? (2x2) (4) Copyright reserved Please turn over

Downloaded from hlayiso.com NSC- Grade 12 4.3. Study the cartoon below and answer the questions that follow. [Source: google.com] 4.3.1 Identify the market structure depicted in the cartoon above. (1) 4.3.2 What is the nature of the product of this market? (1) 4.3.3 Briefly describe the term pure oligopoly. (2) 4.3.4 Explain the role of mutual dependence in an oligopoly market. (2) 4.3.5 How does price-fixing negatively affect consumers? (2 x 2) (4) 4.4. With an aid of a well labelled graph, discuss negative externalities as (4x 2) (8) consequences of market failure. 4.5. How does the government proceed with a project even if private costs (4 x 2) (8) exceed the private benefits in a cost benefit analysis? : [40] NB: [80] Copyright reserved Please turn over

Downloaded from hlayiso.com Economics 13 Common Test June 2021 NSC- Grade 12 SECTION C: MICROECONOMICS Answer any ONE of the two questions in this section in the ANSWER BOOK. Ensure that your answer follows the structure indicated below in order to obtain maximum marks: STRUCTUTURE OF ESSAY MARK ALLOCATION Introduction The introduction is a lower order-response Max. 2 . 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. Do not include any part of the introduction in your body. Avoid saying in the introduction what you are going to discuss in the body. Body Main part: Discuss in detail/ In depth discussion/ Examine/ Max. 26 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 Max. 10 and explain/ Complete the given graph/ Calculate/ Deduce/ Compare/ Explain/ Distinguish/ Interpret/ Briefly debate/ How/ | Suggest Conclusion Any high-order conclusion should include: Max. 2 e A brief summary of what has been discussed without repeating facts already mentioned. . Any opinion or value judgment on the facts discussed. Additional support information to strengthen the discussion/ analysis. . A contradictory viewpoint with motivation, if required. ° Recommendations. TOTAL 40 Copyright reserved Please turn over

Downloaded from hlayiso.com ; NSC- Grade 12 QUESTION 5: MICROECONOMICS 40 MARKS - 40 MINUTES . With aid of graphs, discuss how economic profit and economic loss is determined in a monopoly market. (26 marks) ie Why does the performance of South African monopolies contradicts | the long-run equilibrium position of a monopoly? (10 marks) [40] | QUESTION 6: MICROECONOMICS 40 MARKS - 40 MINUTES Discuss government intervention to effects of market failure under the following headings: ° Maximum prices (13 marks) e Subsidy (13 marks) Why is it necessary to implement a national minimum wage in South Africa? (10 marks) [40] TOTAL SECTIONC: [40] GRAND TOTAL: [150] Copyright reserved