Economics 2022 KZN June P2 QP_hlayiso.com_.pdf

Downloaded from hlayiso.com CLICK HERE ;'b I KWAZULU-NATAL PROVINCE EDUCATION REPUBLIC OF SOUTH AFRICA NATIONAL SENIOR CERTIFICATE ( GRADE 12 ] ~ ~ ~---------------------------------------------~~, ~ II II II II II II II II II II II II II II II II :: UNE 2022 :: ~ ~ ~----- --- ---- -----·· ·- --- ----- -----------------~ MARKS: 150 TIME: 2 hours This question paper consists of 13 pages. Co ri ht Reserved Please Turn Over

Downloaded from hlayiso.com - .........- ,... . ------····· -. ---- Economir.s P? " • . ..... ,.,- ·. Downloaded from Stanmorephys,cs. com SECTION B Answer any TWO of the three questions in this section in the ANSWER BOOK. QUESTION 2: MICRO-ECONOMICS 40 MARKS - 30 MINUTES 2.1 Answer the following questions. 2.1.1 List any TWO examples of sunk costs. (2x1)(2) 2.1.2 Why a monopolist firm called a price maker? (1 X 2)(2) ~ 2.2 Study the information below and answer the questions that follow: c,O ._ ,.c,· PERFECT COMPETITION ., .. . ', · • . :- --- -- ~ ~ ~ - ...... - Source: www.cartoonssa.co.za 2.2.1 A (}~ et structure where collusion between sellers is impossible. (1) 2.2.2 How many firms operate in the perfect market? (1) 2.2.3 Briefly describe the term industry. (2) 2.2.4 Why is the demand curve of a firm horizontal? (2) What is the impact of freedom of entry to existing firms in the long- un? (2 X 2)(4) Copyright Reserved Please Turn Over

Economics P2 Downloaded from 7 hlayiso.com June 2022 Common Test Downloaded from Stanmoreplffsics.com 2.3 Study the graph below and answer the questions that follow. Cellphones C 22 • 18 .. ..................... •D . 21 A Computers 2.3.1 What is the name o\ \ ' \ ~e AA above? ( 1) 2.3.2 Name the point Ii t indicate inefficiency on the graph. (1) e 2.3.3 Briefly~a e roe the term opportunity cost. (2) 2.3.4 W Is it not possible to produce at point C for this firm? (2) 2.3.~ w does allocative inefficiency differ from productive inefficiency? (4) 2.4 Using a correctly labelled graph, discuss how a firm uses TR/TC rule to maximize profit. (4 X 2)(8) 2.5 Analyse the challenges faced by the competition policy in South Africa to achieve its objectives. (8) [40] Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Er.nnnmir.!': P? A QUESTION 3: MICRO-ECONOMICS 40 MARKS - 30 MINUTES 3.1 Answer the following questions. 3.1 .1 Name TWO competition bodies in South Africa. (2 X 1)(2) 3.1.2 Why is there limited competition in an oligopoly market? (1 X 2)(2) 3.2 Study the table below and answer the questions that follow. UNDERSTANDING MONOPOLIES A monopoly implies possession of a market by a supplier of a product or services. In the absence of government intervention, the firm has a significant market power to charge prices. The monopoly case is taken as the polar opposite of perfect competition. Monopolies are often discouraged in free-market nations. They are seen as leading to price gouging and decrease in quantity due to lack of alternative choices for consumers. They also concentrate on wealth, power and influence in the hands of one or few individuals. Source: www.stats.oecd.orQ 3.2.1 How many firms operate in the monopoly market? (1) 3.2.2 What is the nature of product in a monopoly market? (1) 3.2.3 Briefly describe the term economic profit. (2) 3.2.4 Explain the reason why a monopolist is not able to achieve allocative efficiency. (2) 3.2.5 Why it is possible for a monopolist to make economic profit both in the short and long-run period? (2x2)(4) Copyright Reserved Please Turn Over

Downloaded from hlayiso.com June 2022 Common Test Econor,e,Wnloaded from Stanmorep~ sics. com 3.3 Study the graph below and answer the questions that follow. PERFECT MARKET PRICE MC R 12 R 10 200 QUANTITY 3.3.1 Identify what is represented by point B in the graph above. (1) 3.3.2 What is the cost of producing one unit according to the graph above? (1) 3.3.3 Briefly describe the term variable costs (2) 3.3.4 Explain the conditions that must exist for a firm to shut down. (1 X 2)(2) 3.3.5 Calculate the economic loss made by this firm. Show ALL calculations. (2x2)(4) 3.4 With an aid of a graph, explain subsidy as government intervention to overcome market failure. (4 X 2) (8) 3.5 Evaluate the effect of imperfect markets on consumers. (8) [40] Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Do-wnloaded from Stanmore,mysics. com QUESTION 4: MICRO-ECONOMICS 40 MARKS-30 MINUTES 4.1 Answer the following questions. 4.1.1 Give TWO types of public goods. (1 X 2)(2) 4.1.2 How could firms in the perfect market increase their profits? (2x1)(2) 4.2 Study the picture below and answer the questions that follow. THE MARKET INSIGHT OF MONOPOLISTIC COMPETITIVE MARKETS The bakery market in South Africa is analysed to be of the fastest growing markets across the world. Whether you are focused on bread or sweet treats, launching a bakery requires various licenses and permits. This industry offers plenty of opportunities and a variety of products. That is why you find a bakery in every corner in the community. With high start-up costs, these businesses face a very high level of competition . It is for these reasons that the monopolistic competition is sometimes referred to as a hybrid market structure. Source:www.reportliner.com 4.2.1 What is the nature of the products sold in a monopolistic competitive Market? (1) 4.2.2 Identify from the extract word suggests a combination of two market structures? (1) 4.2.3 Briefly describe the term economic loss. (2) 4.2.4 Explain the reason why the demand curve for a monopolistic firm is highly elastic? (2) 4.2.5 Why will the economic profit made by a monopolistic competitor disappear in the long-run? (2 X 2) (4) Copyright Reserved Please Turn Over

Downloaded from hlayiso.com June 2022 Common Test Econor,'Ovvnloaded from Stanmorepfi~ics. com 4.3 Study the graph below and answer the questions that follow. POSITIVE EXTERNALITY PRICE S (MPC) D so 20 -------------- - - - -------- 5 D 100 200 QUANTITY [Source: google.com] 4.3 1 What is another name for curve D in the graph above? ( 1) Name the shaded area on the graph. ( 1) 4.3.3 Briefly describe the term externalities. (2) 4.3.4 Explain the impact on education after government intervention. (2) 4.3.5 How can the government encourage positive externalities? (2x2)(4) 4.4 With an aid of a well labeled graph discuss economic loss made by a monopolist. (4x2) (8) 4.5 Why is a perfect market considered to be more efficient when compared to other market structures? (8) TOTAL SECTION B: [80] Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Downloaded from Stanmoreijf»tsics.com SECTION C 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: MARK STRUCTUTURE OF ESSAY 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. Max. 2 • 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/ Critically discuss/ Analyse/ Compare/ Evaluate/ Distinguish/Differentiate/ Explain. Max. 26 Additional part: Give own opinion/ Critically discuss/ Evaluate/ Critically evaluate/ Draw a graph and explain/ Use the graph given and explain/ Max. 10 Complete the given graph/ Calculate/ Deduce/ Compare/ Explain/ Distinguish/ Interpret/ Briefly debate/ How/ Suggest Conclusion Any high-order conclusion should include: • A brief summary of what has been discussed without repeating facts already mentioned. Max. 2 • 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 June 2022 Common Test Econor:JovJn/oaded from Stanmorepf:j~ics. com QUESTION 5: MICRO-ECONOMICS MARKS - 40 MINUTES • Discuss oligopoly as a market structure in detail. (26) • How do businesses in an oligopoly market compete without using prices? (10) [40] QUESTION 6 MARKS - 40 MINUTES • Examine in detail the causes of market failure. (26) • .. How does the South African government inteNene to limit market failure? - (10) [40] TOTAL SECTION C: 40 GRAND TOTAL: 150 Copyright Reserved