Economics Grade 12 Paper 2 KZN Prelim 2023 Question Paper

Downloaded from hlayiso.com ' KWAZULU-NAT L PRO\ INCE EDUCATION REPUBLIC OF SOUTH AFRICA NATIONAL SENIOR CERTIFICATE ••••••••••••• ,,♦•••••••••••••••••••• "• • II II II II N II II II II II •• II II II II •• II ,.·-•■99■■••·•9■9■■ II ■■ ■l!l!!■ ■■-· !!!! l!I MARKS: 150 DURATION: 2 Hours

Downloaded from hlayiso.com Econor=- 9° Pranaratans Ewaminations September 2023 INSTRUCTIONS AND INFORMATION 4s Answer FOUR questions as follows in the ANSWER BOOK. ° SECTION A: COMPULSORY e SECTION B: Answer any TWO of the three questions. . SECTION C: Answer 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. 5. Number the answers correctly according to the numbering system used in this question paper. 6. Read the questions carefully. ti 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. 41. Write legible and present your work neatly. Copyright reserved Please turn over

Downloaded from hlayiso.com Eces-si-- 99 Peanaentany Examinations September 2023 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-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 institution that reviews orders on restrictive business practices is called the Competition ... A Policy. B Tribunal. Cc Commission D Appeal Court 4.1.2. Ina perfect market, normal profit is also known as the ... point. A maximum B zero Cc break-even D minimum 1.1.3. A formal agreement between a group of producers of a good or service to control supply and manipulate prices is called a/an ... A industry. B cartel. Cc market. D merger. 1.1.4. The value of inputs owned by an entrepreneur and used in the production process are Called ... costs A implicit B production Cc explicit D total 1.1.5. The gains that are relatively more than what individuals and society pay for are called...benefits. A private B external Cc social D public Copyright reserved Please tum over

Downloaded from m hlayiso. com Econom-- ~~ —minations Septeriver 2223 1.1.8. An administrative device formulated in terms of quantity to lienit trade or A permit 8 quote Cc tx D direct control AF a ee en eS ae ole Cango caves, Is called ... A paleo B catural C business DO kisure 1.1.8. Taxation imposed on the output of goods thal generate polkition is called ... tax. 4 income it 1 (8x2) (16)

Downloaded from hlayiso.com Ec y Examinations September 2023 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 Profit the introduction of waste matter into the maximization environment 1.2.2 Marginal revenue 1.2.3 Black market 1.2.4 Duopoly 1.2.5 Externalities 1.2.6 Preservation 1.2.7 Stagflation 1.2.8 Pollution Spillover effects to third parties which are not included in the price measures taken to ensure non-renewable tesources are not threatened by extinction when private sector fails to provide certain goods and services. when a country experiences high inflation, high unemployment and low economic growth a situation where marginal costs are equal to marginal revenue a market in which illegal goods are bought and sold a market structure which is dominated by two firms income received from selling one extra unit of output. (8 x 1) (8) Copyright reserved Please tum over

Econom Downloaded from hlayiso.com = ninations September 2023 41.3; 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 1.3.2 1.3.3 1.3.4 1.3.5 1.3.6 Copyright reserved The production period where at least one factor of production remains fixed A situation where average costs decreases as production increases Prices of goods and services that are set by the government Inflation that excludes items from the CPI basket that show high price volatility Laws passed by the government that regulate negative externalities generated by businesses Traditions, rituals and music that are unique to a particular culture or society (6x1) (6) TOTAL FOR SECTION A: [30] Please turn over

Ec sos SECTION B Downloaded from hlayiso.com 7 ~-1 Examinations September 2023 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 2.1.2 Give TWO examples of variable costs. (2x1) (2) Why is it difficult for firms to enter oligopoly market? (1x2) (2) 2.2 Study the graph below and answer the questions that follow. 223 2.2.2 2.2.3 2.2.4 2.2.5 Copyright reserved PRICE PERFECT MARKET Mc ATC R12 ‘ —— AVS R10 7 —_________— D/MR { 200 QUANTITY Identify the shutdown point in the graph above. (1) Which curve represents the supply curve in the graph above? (1) Briefly describe the term marginal cost. (2) Why is it not advisable for firms to change the price in a perfectly (2) competitive market? Calculate the value economic loss illustrated in the above graph. Show ALL calculations. (2 x 2) (4) Please tum over WEL A

Economics P2 Downloaded from, DIA VISQsGRMmnrer 2023 2.3. Study the extract below and answer the questions that follow. The Competition Commission to break up big firms The Competition Commission to inform the Parliament Portfolio Committee on Trade and Industry that several sectors are still dominated by large firms. The report found continued concentration in sectors including agriculture, retail and pharmaceuticals drove up prices and undermine job creation. Lack of competition in South African products market was found to be a limiting factor in the economy in the long term. Source: www.news24.com 2.3.1 Identify the market structure represented by the above extract. (1) 2.3.2 What type of a profit is made by oligopolies in the long-run? (1) 2.3.3 Briefly describe the term patent. (2) 2.3.4. Why do firms in an oligopoly market collude? (2) 2.3.5 How is branding used to increase market share by firms? (4) [10] 2.4. Discuss Cost Benefit Analysis as an instrument used by the government to evaluate economic projects. (8) 2.5. How can the government reduce collusion amongst businesses? (8) [40] Copyright reserved Please tum over

Downloaded from hlayiso.com Eor--—-- ne Deanaratnry Examinations September 2023 QUESTION 3: CONTEMPORARY ISSUES 40 MARKS - 30 MINUTES 3.1. Answer the following questions. 3.1.1. Give any TWO instruments of monetary policy. (2x1) (2) 3.1.2. Why do debtors benefit from inflation? (1x2) (2) 3.2. Study the graph below and answer the questions that follow. INFLATION RATE IN SOUTH AFRICA 6.5 5.5 fi uu ; aoe 2020 2021 2022 > w PERCENTAGE ~ Source: adapted from Gooale 3.2.1 Identify the inflation rate in the second quarter of 2020? (1) 3.2.2 What is the inflation target set by the SARB in South Africa? (1) 3.2.3 Briefly describe term demand pull inflation. (2) 3.2.4 Explain the effect of a higher inflation rate on poor people. (2) 3.2.5 How did the government implement strategies to : prevent high price increases? (2x2 (4) Copyright reserved Please turn over

Downloaded from hlayis 1s Sopletver 2028 Economics P2 reparatory Examinal 3.3. Study the extract below and answer the questions that follow Addressing Critical problems in global change Global environmental change is having a profound impact on ecosystems around the world, with complex interactions at global change processes. Many of the changes include the climate change, urbanization, and dispensation of biochemical cycles. Research has impact on safeguarding biodiversity, global warming, conservation and wildlife degradation Research on ecological impacts of such changes is essential for safeguarding biodiversity and maintains healthy ecosystems for a sustainable development. [Source:1000research.com] 3.3.1 Identify the term that refers to the rise in average earth temperature. (1) 3.3.2 Which international agreement on climate change was held in 1997? (1) 3.3.3 Briefly describe the term biodiversity. (2) 3.3.4. Why is air pollution from production a major problem on humans? (2) 3.3.5 How does climate change negatively affect the economy? (2x2) (4) 3.4. Briefly discuss the state of the environment in terms of pollution and erosion. (4x2) (8) 3.5. How does the government contribute to higher inflation in South Africa? (4x2) (8) [40] Copyright reserved Please tum over

Downloaded from hlayiso.com Donnas “~-) Examinations September 2023 QUESTION4 MICROECONOMICS AND CONTEMPORARY ECONOMIC ISSUES 40 MARKS - 30 MINUTES 4.1. Answer the following questions. 4.4.1 4.1.2 Give TWO types of inefficiencies. (2x1) (2) Why is skilled labour considered as immobile? (1x2) (2) 4.2 Study the information below and answer the questions that follow. The government has used taxes and interest rates to curb inflation in South Africa. This has been effective because the inflation targeting range has been achieved since its inception. Source: adapted from Google 4.2.1 4.2.2 4.2.3 4.2.4 4.2.5 Identify the fiscal policy instrument used to curb inflation from the information above. (1) Name the institution that is responsible for formulating monetary policy in South Africa. (1) Briefly describe the term indexation. (2) Explain the effect of COVID-19 pandemic on inflation. (2) How can high inflation expectations influence the behavior of consumers? (2 x 2) (4) Copyright reserved Please turn over

Downloaded from hlayiso.com.,.. 2023 Economics P2 49 Prenaratorv Examinations 4.3 Study the graph below and answer the questions that follow PRICE POSITIVE EXTERNALITY S (MPC) 50 20 Di Pha f ‘e 200 QUANTITY 4.3.1 Identify the curve that represents marginal private benefits on (1) the graph above 4.3.2 Name the economic concept represented by shaded area on (1) the graph above. 4.3.3 Briefly describe the term minimum wage. (2) 4.3.4 What impact does government intervention have on (2) education? 4.3.5 How can the government encourage production and consumption of goods with positive externalities? (2x 2) (4) 4.4 Distinguish between overt collusion and tacit collusion. (2 x 4) (8) 4.5 Howcan the South African government ensure environmental (8) sustainability? [40] TOTAL FOR SECTION B: 80 Copyright reserved Please tum over

Downloaded from hlayiso.com EQ ~ ¢ Examinations September 2023 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: STRUCTUTURE OF ESSAY MARK ALLOCATION Introduction The introduction is a lower order-response e Agood 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. e Avoid saying in the introduction what you are going to discuss in the body. Max. 2 Body Main part: Discuss in detail/ In depth discussion/ Examine/ 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 and explain/ Complete the given graph/ Calculate/ Deduce/ Compare/ Explain/ Distinguish/ Interpret/ Briefly debate/ How/ Suggest Max. 26 Max. 10 Conclusion Any high-order conclusion should include: e A brief summary of what has been discussed without repeating facts already mentioned. e Any opinion or value judgment on the facts discussed. e Additional support information to strengthen the discussion/ analysis. e Acontradictory viewpoint with motivation, if required. e Recommendations. Max. 2 TOTAL 40 Copyright reserved Please tum over

Downloaded from hlayiso.com Econorm’*-- ~~ . m-----1--- F-=minations September 2023 QUESTION 5: MICROECONOMICS MARKS — 40 MINUTES 40 e Discuss in detail the monopoly market without the aid of graphs. (26) e Why are the South African state monopolies unable to achieve economic profit? (10) [40] QUESTION 6: CONTEMPORARY ECONOMIC ISSUES MARKS-40 MINUTES 40 e Discuss in detail the effects of tourism. (26) e How can domestic tourism be effectively promoted in South Africa? (10) [40] TOTAL FOR SECTION C: 40 GRAND TOTAL: 150 Copyright reserved