# Economics Grade 12 Paper 1 NW Prelim 2022 Question Paper

> Grade 12 Economics Paper 1 question paper from the NW Prelim 2022, 13 pages. Read online or get the free PDF download, memo linked when available.

- Page: https://www.hlayiso.com/library/economics-2022-nw-prelim-p1-qp/c6b04a48-9ce7-4695-8e19-0767f53e9baf
- Updated: 2026-09-27
- Subject: Economics
- Grade: Grade 12
- Document type: Question paper
- Year: 2022
- Exam period: NW Prelim
- Paper: 1
- Curriculum: CAPS
- Pages: 13

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## About this document

Economics · Grade 12 · NW Prelim · 2022. Question paper, 13 pages. Read online or download the PDF.

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## Document text

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                             education
                             Lefapha la Thuto la Bokone Bophirima
                             Noordwes Departement van Onderwys
                             North West Department of Education
                             NORTH WEST PROVINCE

                                   NATIONAL
                              SENIOR CERTIFICATE
                ..

                                       GRADE 12

               ,.~------------- --                            - - - 'llililllli'· - - - - - ¥
                                                                                              II
               II                    ECONOMICS P1                                             II
               II                                                                             II
               II                                                                             II
               II
               II
                                    SEPTEMBER 2022                                            II

               ~~~~~~~~~~~~~~~~-~~           !-   ~ -~ - - - ~ ~ -   ~~e<!!!!!leit!! ~ ~ ~ ~ ~"
MARKS: 150

TIME: 2 hours

                       This question paper consists of 13 pages.

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INSTRUCTIONS AND INFORMATION

1. Answer FOUR questions as follows in the ANSWER BOOK:

   SECTION A:         COMPULSORY
   SECTION B:         Answer 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. Number the answers correctly according to the numbering system used in this
   question paper.
                                                               s.co
4. Write the question number above each answer.
                                                                   m
5. Read the questions carefully.                           si c
6. Start EACH question on a NEW page.st
                                        an
                                          m
7. Leave 2–3 lines between subsections of questions.
                                           or
8. Answer the questions in full sentences and ensure that the format, content and
                                              ep
   context of your responses comply with the cognitive requirements of the questions.

9. Use only black or blue ink.
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                                 om
10. You may use a non-programmable pocket calculator.

11. Write neatly and legibly.
                                fr
                     oa
                       de
                         d
       do
         wn
           l

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SECTION A (COMPULSORY)

QUESTION 1                                                    30 MARKS – 20 MINUTES

1.1    Various options are provided as possible answers to the following questions.
       Choose the answer and write only the letter (A–D) next to the question numbers
       (1.1.1 to 1.1.8) in the ANSWER BOOK, for example 1.1.9 B.

       1.1.1 The best measure of production or output in an economy is …

               A      Gross National income.
               B      unemployment rate.
               C
               D
                      Gross domestic product.
                      Prime rate.
                                                                 s.co
                                                                     m
       1.1.2 … business cycle indicators change direction before the economy change.
                                                            si c
               A      Leading
               B      Lagging         st
               C      Coincident         an
               D      Juggler
                                           mor
       1.1.3 Merit goods such as education and health have important benefits to their
                                               ep
             users and the market tends to … them.

               A      oversupply
                                                 hy
               B      eliminate
               C      tax          om
               D      undersupply
                             fr
       1.1.4 If the rand/dollar exchange rate changes from R6,80 to R7,00 to the
                     oa
             dollar, …
                       de
               A
               B
                         d
                      imports from USA will increase.
                      the number of American tourists to SA will decrease.
       do      C      exports to the USA will increase.
         wn    D      the dollar will depreciate against the rand.
           l
       1.1.5 A trade policy implemented to protect local producers against the unfair
             effects of foreign competition:

               A      Free trade
               B      Protectionism
               C      Export promotion
               D      Exchange rate control

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       1.1.6 … is a geographical designed, purpose-built, physically enclosed industrial
             estate linked to an international air, or sea port.

               A     Special economic zone
               B     Industrial development zone
               C     Corridor
               D     Spatial Development Initiative

       1.1.7 A type of inflation that measures the change in the prices of an
             average basket of goods and services purchased by households.

               A     Stagflation
               B     Consumer price index
               C     Production price index
               D     Public goods

       1.1.8 To sell goods in another country at low prices that local industries are
             unable to compete is …

               A     dumping.
               B     export promotion.
               C     import substitution.
               D     national trade.                                       (8 x 2) (16)

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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, e.g. 1.2.9 K

               COLUMN A                                    COLUMN B
        1.2.1 Real flow                   A. compare a country’s export prices against
                                             its import prices by means of indexes
        1.2.2 Gross domestic
              income                      B. a technique used to predict the future
                                             events based on current knowledge
        1.2.3 Extrapolation
                                          C. taxes that tend to shift demand from
        1.2.4 Terms of trade                 imports to domestic products

        1.2.5 Trade liberalisation        D. an organisation making financial
                                             resources available to member countries
        1.2.6 Department of Trade,           to meet their balance of payments needs
              Industry and
              Competition                 E. the removal of restrictions such as tariffs
                                             on the exchange of goods and services
        1.2.7 International Monetary
              Fund (IMF)                  F. the provision of goods and services as
                                             well as factors of production
        1.2.8 Tariffs
                                          G. total income earned by the factors of
                                             production

                                          H. the total income received by foreigners
                                             in South Africa

                                          I. provide a competitive, socially
                                             responsible environment for investment,
                                             trade and business development
                                                                             (8 x 1) (8)

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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 An economy that includes the foreign sector

       1.3.2 Measures the vertical difference between a trough and the
             trend line as well as between the peak and the trend line

       1.3.3 The state promotes domestic production of surpluses to
             increase exports and by mentoring changes in exchange rates

       1.3.4 The transfer of functions and ownership from the private to
             the public sector

       1.3.5 All persons between 15 to 65 years of age who are either
             employed or unemployed and seeking employment
       1.3.6 Seeks to provide the disadvantaged and the poor with access
             to land for residential and productive purposes                   (6 x 1) (6)

                                                      TOTAL SECTION A:                     30

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SECTION B

Answer any 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 any TWO examples of subsidies in the economy.                (2 x 1)       (2)

       2.1.2 Why is it important for the government to establish
             price stability?                                                  (1 x 2)       (2)

2.2    Study the diagram below and answer the questions that follow.

                                                             Peak

            Real     Expansion
            GDP

                                                                      Trough

                                                                           Time
                                                              [Source: www.google.com]

       2.2.1 Identify the point where inflation is the highest.                              (1)

       2.2.2 Name the economic indicator that shows the general direction in
             which the economy is moving.                                                    (1)

       2.2.3 Briefly describe the term business cycles.                                      (2)

       2.2.4 Why is a recession an undesirable situation in the economy?                     (2)
       2.2.5 How can the government lower the demand in the business cycle?
                                                                    (2 x 2)                  (4)

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2.3    Study the table below and answer the questions that follow:

        THE SOUTH AFRICAN BALANCE OF PAYMENTS (BOP) – 2020
                                Q. 1  Q. 2 Q. 3 Q. 4     Year (Rm)

        Current account (receipts)
           Merchandise exports           1288      984    1376      1497      1286
           Net gold exports              97        79     129       129       108
           Services receipts             212       87     87        98        121
        Current account (payments)
           Merchandise imports           1185      999    1064      1199      1109
               Service payments          205       144    141       151       160
                                                [Adapted from SARB Quarterly Bulletin, 2020]

       2.3.1 Name ONE other account of the BOP not mentioned in the table.                       (1)

       2.3.2 Why is gold exports shown separately in the BOP?                                    (1)

       2.3.3 Briefly describe the term balance of payments.                                      (2)

       2.3.4 Give a possible reason for the decrease in services receipts during
             Quarter 2 and Quarter 3 of 2020?                                                    (2)

       2.3.5 What can bring an improvement in the country’s terms of trade?                      (4)

2.4    Distinguish between endogenous explanations and exogenous
       explanations for business cycles.                                         (2 x 4)        (8)

2.5    How do lack of motivation and corruption contribute to public sector failure?             (8)
                                                                                                [40]

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                                            J
                                                         I

QUESTION 3: ECONOMIC PURSUITS                                   40 MARKS – 30 MINUTES
                                           , . • ~le<ro•"
3.1    Answer the following questions:

       3.1.1 Name any TWO methods of export promotion.                         (2 x 1)         (2)

       3.1.2 Why is it important to assess the performance of an
             economy?                                                          (1 x 2)         (2)

3.2    Study the extract below and answer the questions that follow.

                     SA’s SPECIAL ECONOMIC PROGRAMME GAINS GROUND

         The plans are in place to designate the Sedibeng area into a Special Economic
         Zone (SEZ) that will be named the Vaal SEZ. The Vaal SEZ will be added to the
         list of other IDZ’s in SA, such as Coega, OR Tambo International Airport, East
         London, Richards Bay and Saldanha Bay.

         The government and private sector will jointly embark on a journey to reconstruct
         and reshape the economy of the Sedibeng region. The decision was taken
         based to the decline in the steel industry. The government efforts are to
         transform the economy into a globally competitive industrial economy.

                                     [Adapted from Mail & Guardian: Special Reports, 22 Oct 2021]

       3.2.1 Identify ONE other IDZ that focuses on growth in the steel industry
             in SA?                                                                            (1)

       3.2.2 Name any possible incentive to encourage the industrial
             development in the Sedibeng region.                                               (1)

       3.2.3 Briefly describe the term Special Economic Zone.                                  (2)

       3.2.4 How do public-private partnerships influence the economy?                         (2)

       3.2.5 Why does the government want to create a globally competitive
             industrial economy?                                        (2 x 2)                (4)

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3.3    Study the cartoon below and answer the questions that follow.

           Could Covid-19
          introduce a new
          era of economic
             and social
             problems?         EMPLOYMENT and
                                PRODUCTIVITY                               EDUCATION

                                           [Adapted from Investec, Patrick Lawlor, 29 Mei 2020]

       3.3.1 Identify the social indicator indicated in the above cartoon?                        (1)

       3.3.2 Name any key price change indicator used in the economy.                             (1)

       3.3.3 Briefly describe the term inflation.                                                 (2)

       3.3.4 Explain the impact of Covid 19 on people’s standard of living.                       (2)

       3.3.5 How can the South African Reserve Bank reduce money supply
             in the economy?                                        (2 x 2)                       (4)

3.4    Discuss demographics as an indicator for social development in
       South Africa.                                                             (4 x 2)          (8)

3.5    Analyse the benefits of free trade in the economy.                                        (8)
                                                                                                [40]

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QUESTION 4: MACRO-ECONOMICS AND ECONOMIC PURSUITS
                                            40 MARKS – 30 MINUTES

4.1    Answer the following questions:
       4.1.1 Name any TWO types of business cycles.                          (2 x 1)        (2)
       4.1.2 How does South Africa benefit from being a member of BRICS?
                                                                      (1 x 2)               (2)

4.2    Study the extract below and answer the questions that follow.

         INVESTMENT THAT WILL BRING BILLIONS OF RANDS TO SOUTH AFRICA

         The fourth annual South Africa Investment Conference will be held in March 2023
         and the event is expected to attract significant international funding to South
         Africa. The first investment conference was held in 2018 as part of a drive to
         raise R1.2 trillion in new investment over five years.

         Company taxes as well as infrastructure spending were lowered by the South
         African government as part of Covid-relief, resulting in slow rate of investment.

         The South African president has outlined some key growth areas which are likely
         to attract investment:
         1. Pharmaceuticals
         2. Energy

         Energy is another area of growth, and the 25 preferred bidders are expected to
         invest around R50 billion into the economy.
                                                [Adapted from BUSINESS TECH, 8 November 2021]

       4.2.1 Which category of South Africa’s infrastructure will benefit the
             most from this investment?                                                     (1)

       4.2.2 Name any other leakage, apart from taxes.                                      (1)

       4.2.3 Briefly describe the term multiplier effect.                                   (2)

       4.2.4 Why are injections important in the economy?                                   (2)

       4.2.5 Determine the value of the multiplier, if households save 20%
             of the extra income earned after the investment drive. Show all
             calculations.                                                                  (4)

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4.3    Study the cartoon below and answer the questions that follow.

                      SOUTH AFRICA’S REGIONAL DEVELOPMENT POLICIES

                                                                  Invest in social

                 Partnerships
                                                Good governance
                                Labour
                                                                  capital

                                          [Adapted from Public Affairs Research Institute]

       4.3.1 Name the industrial development policy of the Department of Trade,
             Industry and Competition.                                                                      (1)

       4.3.2 Which benchmark criteria can be linked to democratic decision making,
             transparency and financial management?                                (1)

       4.3.3 Briefly describe the term regional development.                                                (2)

       4.3.4 What could be the reason for an uneven geographical economic
             development?                                                                                   (2)

       4.3.5 How can the South African government promote industrial
             development through investment in social capital?                             (2 x 2)         (4)

4.4    Use a well-labelled graph to explain the effect an increase in tax rate
       will have on government revenue.                                                                     (8)

4.5    Why should local industries be protected against unfair competition
       from abroad?                                                        (4 x 2)                          (8)
                                                                                                           [40]
                                                                         TOTAL SECTION B:                   80

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    SECTION C

    Answer only ONE of the two questions from this section in your ANSWER BOOK.
    Your answer will be assessed as follows:

                                                                                  MARK
                           STRUCTURE OF ESSAY
                                                                               ALLOCATION
Introduction                                                                      Max 2
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
 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
Main part: Discuss in detail/In-depth discussion/Examine/Critically                Max.26
discuss/Analyse/Compare/Evaluate/Distinguish/Differentiate/Explain/Draw a
graph and explain/Use the graph given and explain/Complete the given
graph/Assess/Debate
A maximum of 8 marks may be allocated for headings/examples.
Additional part: Critically discuss / Evaluate / Critically                        Max 10
evaluate/Debate/Deduce/Compare/Distinguish/Interpret/How?/Suggest
A maximum of 2 marks may be allocated for mere listing of facts.
Conclusion                                                                         Max 2
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
 Additional support information to strengthen the discussion/analysis
 A contradictory viewpoint with motivation, if required
 Recommendations
TOTAL NUMBER OF MARKS                                                                40
    QUESTION 5: MACROECONOMICS                                   40 MARKS – 40 MINUTES

       Discuss in detail the reasons for international trade.                  (26 marks)

       How can the South African government correct balance of payments
        disequilibrium?                                                         (10 marks)
                                                                                     [40]

    QUESTION 6: ECONOMIC PURSUITS                                40 MARKS – 40 MINUTES

       Discuss in detail the demand-side approach in promoting economic
        growth and development in South Africa.                                 (26 marks)

       Evaluate the effectiveness of the Expanded Public Work Programme
        in reducing poverty and unemployment in the country.                    (10 marks)
                                                                                      [40]

                                                                   TOTAL SECTION C: 40
                                                                     GRAND TOTAL: 150
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