Economics Grade 12 Paper 1 KZN Prelim 2022 Question Paper

Downloaded from hlayiso.com CLICK HERE -;'b EDUCATION REPUBUC OF SOUTH AFRICA NATIONAL SENIOR CERTIFICATE ( GRADE 12 ] ,, ~----------- -------- ----- -· -· · ~ II II II II II II II II II II II N II II II II II II II II ,. ., II ~~--------- ----- -----······--~ ~ MARKS: 150 DURATION: 2 Hours This question paper consists of 14 pages. Co ri ht reserved Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. com I '\J -.._;v INSTRUCTIONS AND INFORMATION 1. 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. 2. Number the answers correctly according to the numbering system used in this question paper. s.co 3. Write the number of each question above each answer. m si c 4. Read the questions carefully and start EACH question on a new page. st an Leave at least ONE line between subsections of each question. 5. mor 6. Start each question on a new page. ep hy 7. Answer questions in full sentences and ensure that the format, content and context om of your responses comply with the cognitive requirements of the questions. fr 8. Answer ONLY the required number of questions. Answers in excess of the required oa number will NOT be marked. de 9. d Use ONLY blue or black ink. do wn 10. l Non-programmable pocket calculators may be used. 11. Write legibly and present your work neatly. Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 3 Preparatory Examination September 2022 Downloaded f rom St anmorephysics. NSC 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-0) next to the question number (1.1.1-1.1.8) in the ANSWER BOOK, for example 1.1.9. D. 1.1.1 Spending that takes place irrespective of the level of income is called ... expenditure. A. consumption B. autonomous C. induced s.co D. government m si 1.1.2 The highest turning point of a business cycle is known as ... c A. boom st B. C. trough peak an D. recovery mor ep 1.1.3 Business cycles that last between three to five years are called ... cycles. A. Kitchin hy B. Kuznets C. D. Jugler Kond ratief om fr 1.1.4 The purchasing power of a currency in terms of how much of other currencies oa it can buy is called ... rate de A. B. d interest exchange do C. money D.wn purchasing l 1.1.5 The practise of selling goods in a foreign country at a lower price than the cost of production in the country of origin is known as ... A. integ rating B. exporting C. importing D. dumping Copyright reserved Please turn over

Downloaded from hlayiso.com ' A Dre~eret0n! ExerYli~~ti0n $~r1t~mh~r 2022 Downloaded f rom St anmorephysics. com 1.1.6 Strategies, rules and regulations aimed at affecting import and exports in the country is referred to as ... policy A. monetary B. development C. trade D. fiscal 1.1. 7 An increase in a number of people living in towns and cities is known as ... A. privatisation B. nationalisation C. centralisation D. urbanisation 1.1.8 An interest rate that commercial banks offer to their most creditworthy clients is called the ... rate. A. prime B. repo C. fixed D. preference (8x2)(16) Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 5 Preparatory Examination September 2022 Downloaded f rom St anmorephysics. NSC com 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 Double counting A. Encompasses industries that produce finished, usable goods or are involved in construction. 1.2.2 Trend line B. An international reserve asset created by the IMF to supplement the official reserves of its member countries. 1.2.3 Budget C. Number of years a new-born is anticipated to live from birth. 1.2.4 Special drawing rights D. An official state ban on trade or other activities with a particular country. 1.2.5 Embargo E. An economic indicator showing the general direction in which the economy is 1.2.6 Wealth taxes moving. -F. The document that details expected revenue and projected expenditure. 1.2.7 Secondary sector G. Incorrect higher total in national accounts caused by adding intermediate products to final products. expectancy H. Transfer duties based on the market value of assets owned b taxpa ers. (8 X 1) (8) Copyright reserved Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. com 1\1,._J\__, 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 Value of all final goods and services produced by permanent citizens of the country over a specified period. 1.3.2 The action by the South African Reserve Bank to occasionally change the balance that banks are required to maintain. 1.3.3 Removal of unnecessary restrictions by law. 1.3.4 When a country can produce a specific goods and services at lower average cost than other countries. 1.3.5 The worldwide movement towards economic, financial, trade and communication integration. 1.3.6 The study of a population in terms of age, sex and race. (6 X 1) (6) TOTAL SECTION A: 30 MARKS Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 7 Preparatory Examination September 2022 Downloaded f rom St anmorephysics. NSC com SECTION B Answer TWO of the three questions in this section in the ANSWER BOOK. QUESTION 2: MACROECONOMICS 40 MARKS - 30 MINUTES 2.1 Answer the following questions. 2.1.1 Name TWO examples of financial markets. (1 X 2) (2) 2.1.2 How does an improvement in technology benefi" (2) 2.2 Study the extract below and answer questions that follow. CHANGES IN HOUSEHOLD SPENDING P During the second quarter of 2021, final consumption expenditure by households represents two thirds of domestic expenditure, with government spending and capital formation accounting for the other third. Net exports dropped to 60%. Private consumption expenditure amounted to R920-billion, which was higher than two years ago in nominal terms, but 1.9% lower when adjusted for inflation. Source: Daily Maverick, September 2021 2.2.1 Identify the method used to calculate the national income from the above extract. ( 1) 2.2.2 What trend is shown by net exports? (1) 2.2.3 Briefly describe the term circular flow. (2) 2.2.4 Why are nominal figures not a true reflection of the country's economic growth? (2) 2.2.5 Why is it important for a country to calculate its national income? (2 x 2) (4) Copyright reserved Please turn over

r- _____ ; __ ,n-1 Downloaded from hlayiso.com 0 Downloaded f rom St anmorephysics. com 1\Jvv 2.3 Study the table below and answer questions that follow. MOVING AVERAGES YEAR 2017 2018 2019 2020 2021 GDP GROWTH (%) 1.4% 0.8% 0.2% -6.4% 4.9% [Adapted from Worldbank.org, March 2022] 2.3.1 Identify the trend shown by GDP growth between 2020 and 2021? (1) 2.3.2 Provide a term that refers to the use of past data to predict the future. (1) 2.3.3 Briefly describe the term moving averages. (2) 2.3.4 Explain the effect of COVID-19 restrictions on the economy. (2) 2.3.5 How can monetary policies be used to smooth-out fluctuations on business cycles? (2 X 2) (4) 2.4 lled graph, explain the relationship between n. (8) 2.5 reduce a deficit on the balance of payments? (8) [40] Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 9 Preparatory Examination September 2022 Downloaded f rom St anmorephysics. com NSC QUESTION 3: ECONOMIC PURSUITS 40 MARKS - 30 MINUTES 3.1 Answer the following questions. 3.1.1 Name any TWO examples of cash ben ouseholds from the government. (2) rican economy? (2) 3.2 Study the cartoon below and answer questions that follow. IMPORTS SUBSTITUTION, THE WAY TO GO! SOURCE: Gooale.com 3.2.1 Identify the policy used by the government to discourage expenditure on foreign products. (1) 3.2.2 Name the international organization that promotes free trade. ( 1) 3.2.3 Briefly describe the term export promotion. (2) 3.2.4 Why is it important for South Africa to trade with other countries? (2) 3.2.5 How does an increase in imports affect the country? (2 X 2) (4) Copyright reserved Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. NSC com 3.3 Study the extract below and answer questions that follow. JIPSA: THE SOLUTION FOR SKILLS SHORTAGE The Joint Initiative on Priority Skills Acquisition (JIPSA) was launched on 27 March 2006. Its aim is to identify urgent skills needs and effective solutions such as special training programmes, re-engaging retirees and drawing immigrants with necessary skills as well as to focus on developing skills in infrastructure project management. JIPSA is a joint initiative between government, labour and businesses. [Adapted from Google. com] 3.3.1 Identify the growth and development strategy discussed above. (1) 3.3.2 Name the government department that is responsible for skills development in South Africa. (1) 3.3.3 Briefly describe the term economic growth. (2) 3.3.4 Explain the negative impact of a shortage of skilled labour force in the country? (2) 3.3.5 How does the Black Economic Empowerment Programmes improve the lives of the previously disadvantaged groups? (2 x 2) (4) 3.4 Discuss the National Development Plan as the South African approach for growth and development. (8) 3.5 How can protectionism positively influence the economy? ,1 (8) [40] Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 11 Preparatory Examination September 2022 Downloaded f rom St anmorephysics. NSC com QUESTION 4: MACROECONOMICS AND ECONOMIC PURSUITS 40 MARKS - 30 MINUTES 4.1 Answer the following questions. 4.1.1 Name TV\JO methods of export promotion. (2 X 1) (2) 4.1.2 How does an increase in aggregate demand benefit the economy? (1 x2)(2) 4.2 Study the graph below and answer questions that follow. FOREIGN EXCHANGE MARKETS: SOUTH AFRICA V). ......... "'C C' ('t ex: RlS.35 Q.J ~ rtl 5- Q.J tlO ; R14.53 .c u X LU 01 D 5 10 Quantity of dollars 4.2.1 Identify the original exchange rate on the graph above. (1) 4.2.2 Name the exchange rate system used in South Africa. (1) 4.2.3 Briefly describe the term devaluation. (2) in any factor that can cause an increase in demand for US dollars uth Africa. (2) Copyright reserved Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. NSC com 4.3 Study the extract below and answer the questions that follow CONSUMER INFLATION CONTINUES TO BITE Consumer Price index is the most comprehensive indicator measuring consumer inflation in the country. It shows changes in the general purchasing power of the rand. This week, the South African Reserve Banks (SARB) could be seen tightening monetary policy as inflation continues to head towards the top end of its 3-6% target range. Global producer price and food price inflation continues to surprise higher on fears of supply chain disruption, with the Russian war in Ukraine pushing oil prices to a 14-year high. [Source: iol. co. za, March 2022] 4.3.1 Identify a product that is regarded as a commodity from the above extract. ( 1) 4.3.2 Name ONE institution that is responsible for publishing economic indicators in South Africa. (1) 4.3.3 Briefly describe the term economically active population. (2) 4.3.4 Explain the importance of money supply as an economic indicator? (2) 4.3.5 How does low productivity affect the economy? (2x2) (4) 4.4* Distinguish between nominal and real figures when calculating the GDP. (4 x 2)(8) 4.5 )j._ How can Small Business Development Programme stimulate the economy? (8) [40] TOTAL SECTION B: 80 MARKS Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 13 Preparatory Examination September 2 022 Downloaded f rom St anmorephysics. com NSC 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 Max. 2 • A good starting point would be to define the main c the question topic. • Do not include any part of the question in your introduct • Do not include any part of the introduction in your body.-, • , • Avoid saying in the introduction what you are going tcfcf1-e·t""fft~l"rff'tt!l""-I bod . Body Main part: Discuss in detail/ In depth discussion/ Examine/ Critically Max. 26 discuss/ Analyse/ Compare/ Evaluate/ Distinguish/Differentiate/ Explain. A maximum of 8 marks may be allocated for headings/ examples. Additional part: Give own opinion/ Critically discuss/ Evaluate/ Max. 1O Critically evaluate/ Draw a graph and explain/ Use the graph given and explain/ Complete the given graph/ Calculate/ Deduce/ Compare/ Explain/ Distinguish/ Interpret/ Briefly debate/ How/ Suggest. A maximum of 2 marks ma be allocated for mere listin of facts. Conclusion Any high-order conclusion should include: Max. 2 • 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. QUESTION 5: MACRO-ECONOMICS 40 MARKS - 40 MINUTES • Discuss in detail the reasons for public sector failure. (26) • How can the South African government improve the provisioning of public goods? (1 O) [40] Copyright reserved Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. NSC com QUESTION 6: ECONOMIC PURSUITS 40 MARKS - 40 MINUTES • Discuss in details South Africa's initiatives (endeavours) in regional development. (26) • Evaluate the appropriateness of South Africa's regional development policies in terms of the international best practice. ( 1O) [40] TOTAL SECTION C: 40 MARKS GRAND TOTAL: 150 MARKS Copyright reserved