Economics Grade 12 Paper 1 KZN June 2022 Question Paper

Downloaded from hlayiso.com cucK HERE ;'b EDUCATION REPUBLIC OF SOUTH AFRICA ' I NATIONA~ i SENIOR CERTIFICATE Ill JI ., ll II II II II • II I! II II II II II II II \'l ~ ~ !! !I !I • • • • • ~~~ ~~~~~~ - ~~~~~~~~~ ~~~~~ ~ ~~ ~~~~~~~· " TIME: 2 Hours This, question paper consists of 12 pages. Co ri ht Reserved Please Turn Ove r

Downloaded from hlayiso.com Downloaded from Stannmfephysics.com NSTRUCTIONS AND INFORMATION Answer THREE questions as follows: • SECTION A: COMPULSORY • SECTION B: Answer any TWO questions from this section. • SECTION C: Answer any ONE of the two questions. ' •• Number the answers correctly according to the numbering system used in this question paper. Write the number of each question above each answer. ()~ . G Read the questions carefully and start EACH question on a new paqec,C:,• Leave at least ONE line between subsections of each questio~ '\0"\ I. Start each question on a new page. ~e~ 0 Answer questions in full sentences and ensure th~ ~ format, content and context of your responses comply with the cognitive rr ~~ments of the questions. I I. Answer ONLY the required number of q~~~s. Answers in excess of the required number will NOT be marked. ()\, I. Use ONLY blue or black ink. '\ > 0 "' 0. Non-programmable pockFSf&ulators may be used. ,1. *~'yyour work neatly. Write legibly and 00 :opyright Reserved Please Turn Over

Downloaded from hlayiso.com June 2022 Common Test Econ~'1rcfwnloaded from Stanmorepiysics. com 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 - C) next to the question number(1.1.1 ·- 1.1 .5) in the ANSWER BOOK. e.g. 1.1.6 D. 1.1,1 ey from the financial sector to businesses is called ... tmpor1B IVI) Taxes ) Savings (S) ' ()~ lnvestm nt (I) c,9 Policies that are used for dampening the overheated ; 0~ my are called ... fiscal policy. • ~~ A restrictive (a C monetary expansionary ~ex D natural ~o ~ ' 1.1.3 A panel in parliament that moni r, e activities of each government department is called the ... ~ mittee. A • community .rO B portfolio "\ C parliamenta~ ' \ · D moneta~ &Ji: y .• 1.1.4 The poin lrl\~ business cycle that is associated with highest profits .and consu ticm is known as ... () ~ rough . upswing C boom D peak 1.1.5 Stock such as machinery and equipment that is used in production is called ... goods. A private . B demerit C capital D merit . Copyright Reserved Please Turn Over

Downloaded from hlayiso.com -----·-- •••• Downloaded from Stanmacephysics. com 1.1.6 The exchange of goods and services across the borders is called .. . trade. A international B barter C money D transfer 1.1.7 The amount of money paid to businesses to reduce their cost of production is called ... A tariffs 8 subsidies C quotas '!) taxes 1.1.8 When one country can produce goods or services cheaper than another is said to havei a/ an .. . advantage. A absolute B income. C comparative D trade (8x2)(16) :;opyright Reserved Please Turn Over

Downloaded from hlayiso.com June 2022 Common Test Economt,6wnloaded from Stanmorelm:Ysics. com 1.2 Choose a description from COLUMN B that matches the item in COLUMN A Write only the letter (A -1) next to the question number (1.2.1 - 1.2.8) in the ANSWER BOOK. COLUMN A COLUMN B 1.2.1 Resource market A. The removal of unnecessary restrictions by legislation. 1.2.2 Upswing 8. new scientific knowledge in the form of 1.2.3 P~ogressive taxes inventions and innovations. · 1.2.4 Collective goods C. Measures taken by the SARB to influence ... money supply and interest rates with a view 1.2.5-'l,., Deregulation to achieving economic growth 1.2.6 Technology D. The interaction of economies with trade as an important element. 1.2.7 Globalisation E. Charges can be levied for them despite the 1.2.8 Monetary policy . fact that they are indivisible. F. Where factors of production are sold. G. Compulsory payments will increase as income increases. H. Recovery and prosperity are experienced during this period. (8 X 1)(8) 1.3 Give ONE term for each of the following descriptions. Write only the term next to the question number (1 .3.1.-1 .3.4.) in the ANSWER BOOK. Acronyms and abbreviations will NOT be accepted. • 1.3.1 The adding of final values of all goods and services calculated as gross value added. 1.3.2 Paper issued by the states in exchange for loans which are redeemable ! i at some future date in the long term. I 1.3.3 Goods that are characterised by non-rivalry and non-excludability. 1.3.4 The price of the currency is officially increased by the government within a fixed exc!hange rate system. 1.3.5 The reduced cost of production associated with producing a large quantity of output. . 1.3.6 The price of one currency in terms of another. (6 X 1) (6) TOTAL SECTION A: 30 Copyright Reserved Please Tum Over

Downloaded from hlayiso.com --- --·· ---- - Downloaded from Stannmfephysics. com SECTION B A.nswer any TWO of the thre.e questions in this section in the ANSWER BOOK. QUESTION TWO: MACRO-ECONOMICS 40 MARKS - 30 MINUTES 2.1 Answer the following questions. 2.1 .1 Name any TWO investments on the financial account. (2 X 1) (2) 2.,1.2 How does an increase in population affect international trade? (1 X 2} (2} : 2.2 Study the table below and answer the questions that follow. THE NA'TIONAL INCOME Items RI Millions Compensation of employees 2 320 954 Net operating surplus 1348689 .. Consumption of fixed capital 740 122 Gross value added at factor cost (A) SOURCE: SARB QUARTERLY BULLETIN, 2021 2.2.1 Identify the method of calculating the national income used above. (1) 2.2.2 Name the institution that is respornsible for publishing the national income figures. • (1) 2.2.3 Briefly describe the term gross domestic product. (2) 2.2.4 How can an increase in production costs affect the economy? (2) 2.2.5 Calculate the value of (A). (Show all calculations). · (4) (10] Copyright Reserved Please Turn O ver

Downloaded from hlayiso.com June 2022 Common Test Econ~rBfJ~nloaded from Stanmorep~ sics. com 2.3 Study the extract below and answer the questions that follow. SOUTH AFRICA POSl S LARGEST CURRENT ACCOUNT SURPLUS ON RECORD South Africa reported its largest current account surplus on record last year as import demand was suppr~ssed by the economy recovering from the impact of the corona virus and the value of gold exports rose to the highest since at least 1960. [Adapted from Business Tech , March 2022] .. 2.3.1 Name the sub-account_of the balance of payment discussed above. · (1) .,2.3.2 Which mineral n~source.is responsible for the increase in the sub-account above? (1) 2.3.3 Describe the concept merchandise imports. (2) -2.3.4 What are the benefits of an increase in foreign inco e for :South Africa (2) 2.3.5 How can a reduction of imports be used to correct the current deficit? • (4) [10] 2.4 Briefly discuss the relationship between the financial sector and households in the circuIlar flow. (4 X 2) (8) 2.5 How does public sector failure negatively affect the South African economy? (8) [40] Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Downloaded from StanlTffl,[ephysics. com QUESTlON 3: MACRO-ECQNOMrCS 40 MARKS -~ :~o MINUTES 3.1 Answer the following questions 3. i .1 Name any TVVO examples of indirect taxf~S. (2 x 1) (2) 3 1.2 How can a decline in the manufacturing sector negativeiy affect the economy? (1 x 2) (2) 32 Study !he diagram bc1low and answer questions that follow. THE CIRCULAR FLOW . .. . - ,. · •~- . -~ ..... / . HOUSEHOLDS ·. \ -= '<ir,zc~~}rrj~Jt,;rV V 3.2.1 Identify the type of circular How model shown on the above diagram. ('1) 3.2.2 Name the producHrs on the above diagram. (1) 3 2 3 Briefly describe the term real flow. (2) 3.2 4 Explain the negative impact of an increase of leakages on the economy. (2) 3.2.5 How does an increasEi in government spending benefit the economy? (2 X 2) (4) ['IO] Copyright Reserved Please Turn Over

Downloaded from hlayiso.com June 2022 Common Test Econo.~ Wnloaded from Stanmore,-Ysics. com 3.3 Study the information below and answer questions that follow. SOUTH AFRICA TRADE SURPLUS WIDENS IN FEBRUARY Indices (Billion) Index of imoort prices , 130.5 Index of export prices 141.1 Terms of trade (A) South Africa's trade surplus rose to ZAR R 10.6 billion in February of 2022, from a downwardly revised ZAR 407 billion in the previous month. Exports advanced 8% month- bver-month to ZAR 141 .15 billion, boosted by shipments of vehicles, machinery, transport and minerals. , \_ [Ad.apted from Trading Economics, February 2022] 3.3.1 Identify the index to compare imports prices and exports prices shown above. (1) 3.3.2 How much is the surplus from the above information? (1) 3.3.3 Describe the concept balance of trade. (2) 3.3.4 What is the positive impact of the availability of skilled workers in the country? (2) 3.3.5 Calculate the value of (A). (Show all calculations) (2 X 2) (4) [10] 3.4 Briefly discuss the importance of the foreign exchange market and the product market in the circular -flow. (8) 3.5 Why is it important for .:1 country to calculate its national income? (8) (40] Copyright Reserved Please Tum Over

Downloaded from hlayiso.com Downloaded from Stan~ §crephysics. com ~UESTION 4: MACRO-ECONOMICS 40 MARKS - 30 MINUTES ..1 Answer the following questions 4.1.1 Name any TWO categories of consumer goods. (1 X 2)(2) 4.1.2 How do subsidies affect production? (2 X 1) (2) •.2 Study the graph below and answer the question·s that follow. . THE MACROECONOMIC MULTIPLIER E~pendlture (E E=Y E1 •30+0,5Y 60 ---•-·"-"·---- - - - - - Eo = 20•0.5Y ,4() 30 20 0 .tO 60 Income (V) •4.2.1 Name ONE sector involved in deriving the macro-economic multiplier. ( 1) 4.2.2 Give the value of the injection made into the economy. (1) 4.2.3 Briefly describe the term autonomous consumption. (2) 4.2.4 Explain the negative impact of a decrease in consumer spending on the size of the multiplier. • (2) 4.2.5 Calculate the value of the multiplier using the formula k= 1/ (1-mpc) if · the mpc is 0.5 . (Show all calculations). (4) [10) :opyright Reserved Please Turn Over

Downloaded from hlayiso.com June 2022 Common Test Econo~liDown/oaded from Stanmore,;hysics. com 4.3 Study the cartoon below and answer questions that follow. LOAD SHEDDING: CRISIS FOR THE SOUTH AFRICAN ECONOMY! . ! ,l . ~ -r~" : J.1· ,:;t1, tr,\t ~-:'f _:"· ' . , . .. Source: Business Times ------------------ ---- 4.31 Identify the energy crisis faced by South Africa on the cartoon. (1) 4.3.2 Which government department is responsible for budget in the economy? (1) 4.3.3 Briefly describe the term parastatals. (2) 4.3.4 What is the negative impact of an increase in electricity prices? (2) 4 .3.5 How does a country benefit from a lower tax rate? (2 X 2)(4) [10] 4.4 Differentiate between money flow and real flow in the circular flow. (4X2) (8) 4.5 How can a negative Balance of payments affect the country's economy? (8) [40] Copyright Reserved Please Turn Ov er

Downloaded from hlayiso.com Downloaded from Stannmrephysics.com SECTION C Answer ONE question from this section in the ANSWER BOOK Your answer will be assessed as follows: MARK STRUCTURE OF ESSAY ALLOCATION .. Introduction Max.2 Body: ·· Main part: Discuss in detail/In-depth discussion/Examine/ Critically discuss/ Analyse/C~mpare/ Evaluate/Distinguish/Differentiate/Explain/Assess/ Debate •· • Max. 26 Additional part: Give own opinion/Critically discuss/ Evaluate/Critically evaluate/Draw a graph and explain/Use.the graph given and Max. 10 explain/Complete the given graph/ Calculate/Deduce/Compare/Explain/Distinguish/Interpret/ Briefly debate Conclusion: Any higher-order conclusion should include: • A brief summary of what has been discussed without repeating facts already mentioned in the be>dy Max. 2 • Any opinion or valued judgHment on the facts discussed •• • Additional support information to strengthen the discussion/analysis • A contradictory viewpoint with motivation, if required • Recommendations • TOTAL 40 QU STION 5 • Discuu ii detail the features underpinning forecasting of business cycles. (26) • How can o en market transactions be used as a tool to smoothen business (10) [40] QUESTION6 • Discuss in detail the objectives of the public sector (26) • How can the government imp_rove the efficiency of parastatals-in South Africa? (10) [40] TOTAL MARKS: 150 \qpyright Reserved