# Economics Grade 12 Paper 1 LIM Prelim 2023 Question Paper > Grade 12 Economics Paper 1 question paper from the LIM Prelim 2023, 12 pages. Read online or get the free PDF download, memo linked when available. - Page: https://www.hlayiso.com/library/economics-2023-lim-prelim-p1-qp/89a5eaa0-b5f0-48d3-8975-8846e6e3b84d - Updated: 2026-09-27 - Subject: Economics - Grade: Grade 12 - Document type: Question paper - Year: 2023 - Exam period: LIM Prelim - Paper: 1 - Curriculum: CAPS - Pages: 12 Breadcrumbs: [Home](https://www.hlayiso.com/) › [Library](https://www.hlayiso.com/library) › [Grade 12](https://www.hlayiso.com/library/grade-12) › [Economics](https://www.hlayiso.com/library/grade-12/economics) › [Economics Grade 12 Paper 1 LIM Prelim 2023 Question Paper](https://www.hlayiso.com/library/economics-2023-lim-prelim-p1-qp/89a5eaa0-b5f0-48d3-8975-8846e6e3b84d) ## About this document Economics · Grade 12 · LIM Prelim · 2023. Question paper, 12 pages. Read online or download the PDF. Read it free online on the page above; download the PDF from there. ## Document text Text extracted from the PDF. Layout, diagrams and tables may not survive extraction. ### Page 1 Downloaded from hlayiso.com LIMPOPO PROVINCIAL GOVERNMENT REPU8LIC Of' SOUTH AFFUCA DEPARTMENT OF EDUCATION iiiiiiiiiiiiiiiiiii " II II II II II II II II II II �------------ II !!!!!!!!!!!!!!!!� ., II MARKS: 150 DURATION: 2 HOURS Stanmorephysics 111 111 I EECONP1 This question paper consists of 12 pages. Copyright reserved Please turn over ### Page 2 Downloaded from hlayiso.com LimpopoDoE/September 2023 NSC INSTRUCTIONS AND INFORMATION Ts 10. _ 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. Number the answers correctly according to the numbering system used in this question paper. Write the number of the question above each answer. Read the questions carefully and start EACH question on a NEW page. Leave 2 — 3 lines between subsections of questions. 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. Answer only the required number of questions. Answers in excess of the required number will NOT be marked. Use only black or blue ink. Non-programmable pocket calculators may be used. Write neatly and legibly. Copyright reserved Please turn over ### Page 3 Econ Downloaded from hlayiso.com - LimpopoDoE/September 2023 NSC SECTION A (COMPULSORY) QUESTION 1 1.1 30 MARKS — 20 MINUTES 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, e.g., 1.1.1. D Ihe A small initial change in spending that produces a proportionately larger increase in income is the ... effect. A price Bs government C multiplier D credit A fiscal policy that attempts to stimulate economic activity is a / an ... policy. A _ restrictive B expanding C _ supplying D demanding The removal of unnecessary restrictions by law is ... A _ withdrawal. B regulation. C market economy. D deregulation. A payment made by the government to someone for whom there was no service rendered is called ... payments. A _ salary B taxation C transfer D duties The infant industries argument justifies ... A _ subsidies. B dumping. C protection. D_ de-industrialization. ### Page 4 Downloaded from hlayiso.com Economics/P1 4 LimpopoDoE/September 2023 NSC 7 1.1.6 SMME’s create employment for ... unemp!oyed people. A __ seasonally B _ structurally C _ frictionally D __ technologically T47 Regional development policies aim to reduce the effect of ... A _ centralisation B __ investment C decentralisation D mobilisation 1.1.8 A situation where trade occurs without government interference is called ... trade. A _ international B barter C unlimited D_sfree (8 x 2) (16) Convriaht reserved Please turn over ### Page 5 Downloaded from hlayiso.com Economics/P1 1.2 2 Lu1ipopoDoE/September 2023 NSC Choose a description from COLUMN B that matches an item in COLUMN A. Write only the letter (A — J) next to the question number (1.2.1 — 1.2.8) in the ANSWER BOOK. COLUMN A COLUMN B 1.2.1 Moral suasion A exchange rate system determined by market forces 1.2.2 Parastatals B promotes affirmative action and prevents discrimination 1.2.3 Free floating C__ state-owned enterprises that provide public goods and services 1.2.4 Customs-free incentives D__ focuses on land for residential and production 1.2.5 Land restitution E - SARB convinces commercial banks to extend credit responsibility 1.2.6 Structural unemployment F returning of land to those citizens who lost it due to discriminatory laws of the past 1.2.7 Exchange rate G__ job losses due to the economy going in a recession 1.2.8 Life expectancy H_ imports of raw materials or intermediate goods are not taxed | net gold exports are listed here because of the historical significance in South Africa J the number of years a person will live after birth (8 x 1) (8) 1.3 Give ONE term for each of the following descriptions. Write only the term next to the question numbers (1.3.1 — 1.3.6.) in the ANSWER BOOK. Abbreviations, acronyms and examples will not be accepted. 1.3.1 Changes of these indicators only take place after the economy changes direction. 1.3.2 Individuals who benefit from public goods and services without paying for them. 1.3.3 Large scale production activities whereby the entrepreneur's cost per unit decreases. 1.3.4 The institution that formulates monetary policy in South Africa. 1.3.5 The rate which banks charge on loans to their most creditworthy clients. 1.3.6 The increase in the population numbers of cities and towns. (6 x 1) (6) TOTAL SECTION A: Qopyright reserved Please turn over [30] ### Page 6 Downloaded from hlayiso.com Economics/P1 LimpopoDoE/September 2023 SECTION B: (ANSWER TWO OF THE THREE QUESTIONS) Answer any TWO of the three questions in this Section in the ANSWER BOOK. QUESTION 2: MACROECONOMICS 40 MARKS — 30 MINUTES 21 Answer the following questions: 21:1 Name any TWO examples of exogenous factors in a business cycle. (2x 1) Se Explain the effect of the depreciation of the Rand on imports. (1 x 2) 2.2 Study the information below and answer the questions that follow. i South Africa's economists SA ALREADY IN TECHNICAL RECESSION lead) a a | month ago. ul [Adapted from: Beeld, Thursday, 23 February 2023] 2.2.1 Identify the Concept which relate to two consecutive quarters of economic decline. FA So Name any feature underpinning forecasting with regard to business cycles. ’ 2.2.3 Briefly describe the term amplitude. 2.2.4 How can economist use extrapolation of a business cycle in economic forecasting? 2.2.5 Why would the government want to avoid a recession at all costs? Copyright reserved (2x2) Please turn over (1 (1 (2, (2) (4) ### Page 7 Economics/P1 Downloaded from hlayiso:com 7 LimpopoDoE/September 2023 NSC 2.3 Study the extract below and answer the questions that follow. With more questions than answers, the 2023 State of the nation The power crisis and the dysfunctional ESKOM obviously require drastic measures. Who will manage the state of disaster? Election 2024 is just around the corner. address was just another missed opportunity 2.3.1 2.3.2 2.3.3 2.3.4 2.3.5 [Adapted from: Beeld, Monday, 13 February 2023] Identify the public service provided by the government. Which activity is regularly applied by Eskom to prevent national blackouts in South Africa? Briefly describe the term price stability. Why are State-Owned Enterprises seen as a problem in provisioning of public goods and services? How can the South African municipalities improve efficiency in pursuit of service delivery? (2 x 2) 2.4 Briefly discuss the product and factor market as markets in the four-sector model. (2x4) 2.5 Describe how producers will respond to the different phases in the business cycle. Copyright reserved (2x4) (1) (1) (2) (2) (4) (8) (8) [40] Please turn over ### Page 8 Downloaded from hlayiso.com Economics/P1 8 LimpopoDoE/September 2023 NSC QUESTION 3: ECONOMIC PURSUITS 40 MARKS - 30 MINUTES 3.1 Answer the following questions: S.14 Name any TWO social indicators. (2x 1) 3.132. How can economic growth lead economic development in a country? (1x2) 3:2 Study the table below and answer the questions that follow. SOUTH AFRICA — ECONOMIC INDICATORS PRICE LAST REFERENCE Inflation rate 5.9% Jan. / 2023 Interest rates 7.25% Jan. / 2023 Money supply M3 53.27 Jan. / 2023 eda! eae 61864 Jan. / 2023 eserves Balance of Trade 5430 ZAR Million Feb. / 2023 [Source: Trading Economics.com] 3.2.1 Identify the economic indicator that influences the levels of borrowing in the economy. x te ed What is the inflation target that South Africa is aiming for? 3.2.3 Briefly describe the term employment. 3.2.4 Explain employment as an economic indicator. 3.2.5 How can the government prevent malnutrition in South Africa? (2 x 2) Convriaht reserved Please turn over ### Page 9 Downloaded from hlayiso.com Econ... . ¥ LimpopoDoE/September 2023 NSC 3.3 Study the information below and answer the questions that follow. The EPWP is a key goverment initiative, which contributes to Government Policy Priorities in terms of decent work and suitable livelihood, education, health, rural development, food securities and land reforms and the fight against crime and corruption. EPWP subscribes to the outcome which states, “Decent employment through inclusive economic growth”. EXPANDED PUBLIC WORKS PROGRAMME 3.3.1 3.3.2 3.3.3 3.3.4 3.3.5 3.4 Briefly discuss ferms of trade and the exchange rate as economic indicators for foreign trade. [Adapted from: EPWP] Identify the nationwide intervention used to alleviate unemployment in South Africa as depicted in the above information. Which type of job are usually provided by this public works initiative project? Briefly describe the term social capital. Explain how free trade affected employment in South Africa. How can the government use critical infrastructure facilities as incentives to increase production? (2 x 2) (2x 4) 3.5 How can BBBE be used by the South African Government to address income inequality? Copyright reserved (4 x 2) Please turn over (1) (1) (2) (2) (4) (8) (8) [40] ### Page 10 Downloaded from hlayiso.com 10 LimpopoDoE/September 2023 NSC QUESTION 4: MACROECONOMICS & ECONOMIC PURSUITS 40 MARKS — 30 MINUTES Economics/P1 4.1 Answer the following questions: 4.1.1 Name any TWO features of the fiscal policy. (2x 1) (2) 4.1.2 Why is. industrial development a_ priority for the South African government? (1 x 2) (2) 4.2 Study the cartoon below and answer the questions that follow. if WE LET CHINA MANIPULATE ITs CURRENCY To CREATE CHEAPER EXPORTS YOLL GIVE THEM AN UNFAIR ADVANTAGE ! way, ] [Source: Google Images] 4.2.1 Identify the exchange rate system used in China as depicted by the above cartoon. 4.2.2 Mention the financial market where currencies are exchanged. 4.2.3 Briefly describe the term balance of payments. 4.2.4 Explain how mass production can affect international trade. 4.2.5 Why would investors prefer a country with a free floating seni 54 x Please turn over ### Page 11 Downloaded from hlayiso.com Eco oe LimpopoDoE/September 2023 NSC 4.3 Study the extract below and answer the questions that follow. OUR FUTURE: MAKE IT WORK — NDP 2030 The National Development ‘Plan aims to eliminate poverty and reduce inequality by 2030. South Africa can realise these goals by growing an inclusive economy through enhancing the capacity’of the state as well as promoting leadership and partnership throughout society. [Source: www.nda.org.za] 4.3.1 Identify ONE goal of the National Development Plan in the above extract. ; 4.3.2 How can the South African government achieve an_ inclusive economy? ‘ 4.3.3 Briefly describe the term globalisation. 4.3.4 Explain the objective of regional development in South Africa. 4.3.5 How can the South African government eradicate poverty? (2 x 2) 4.4 With the aid of a correctly labelled graph explain the Laffer curve. 4.5 How has the load shedding crisis impacted the cost of doing business in South Africa? (4 x 2) TOTAL SECTION B: Please turn over (1) (1) (2) (2) (4) (8) (8) [40] ### Page 12 Downloaded from hlayiso.com Economics/P1 12 DoE/Limpopo September 2022 NSC SECTION C Answer ONE of the two questions from this section in the ANSWER BOOK Your answer will be assessed as follows: STRUCTURE OF ESSAY: MARK ALLOCATION: Introduction: e Agood starting point will be to define a concept or key. e Include other sentences to support the topic. *® Donot include in your introduction any part of the question. Max. 2 e Do not repeat any part of the introduction in the body. e Avoid saying in the introduction what you are going to discuss in body. Body: e Main part: Discuss in detail / In-depth discussion / Examine / Max. 26 Critically discuss / Analyse / Compare / Evaluate / Distinguish / Differentiate / Explain / Assess / Debate. e Additional part: Give own opinion / Critically discuss / Max. 10 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? / Your own opinion. Conclusion: Any relevant higher order conclusion that should include: e A brief summary of what has been discussed / analyzed without repeating facts already mentioned in the body. e Anopinion or valued judgement on the facts discussed. Max. 2 Additional support information to strengthen the discussion / analysis. e Acontradictory viewpoint with motivation, if so required. e Recommendations TOTAL 40 MARKS QUESTION 5: MACROECONOMICS 40 MARKS - 40 MINUTES e Discuss in detail the reasons for international trade. (26 marks) e How can the South African government reduce imports in order to correct the Balance of Payment deficit? (10 marks) QUESTION 6: ECONOMIC PURSUITS 40 MARKS — 40 MINUTES e Discuss in detail export promotion. (26 marks) e Howcan the consumption of local products boost the South African economy? (10 marks) TOTAL SECTION C: GRAND TOTAL: [40] [40] [40] [150]. ## Related documents - [Economics 2023 FS Prelim P1 QP](https://www.hlayiso.com/library/economics-2023-fs-prelim-p1-qp/4df62619-23c8-4a72-9f11-2679cd92b0ad) — Economics · QP · 2023 - [Economics P1 Nov 2023 Eng](https://www.hlayiso.com/library/economics-p1-nov-2023-eng/127abefe-4f46-4a3d-9e28-d940dd8b0459) — Economics · QP · 2023 · Eng - [Economics 2023 NW Prelim P1 QP](https://www.hlayiso.com/library/economics-2023-nw-prelim-p1-qp/140b8415-3912-4d87-ab37-214fe6aaa927) — Economics · QP · 2023 - [ECONOMICS P1 GR12 MEMO SEPT 2023 English](https://www.hlayiso.com/library/economics-p1-gr12-memo-sept-2023-english/2f2dfcd4-99d6-4ca1-b941-aa653985e502) — Economics · Memo · 2023 · Eng - [Economics 2023 MP Prelim P1 Memo](https://www.hlayiso.com/library/economics-2023-mp-prelim-p1-memo/53074720-b0f1-469b-9c4e-f02da85f4b55) — Economics · Memo · 2023 - [ECONOMICS P2 QP GRADE 12 JUNE 2023 English](https://www.hlayiso.com/library/economics-p2-qp-grade-12-june-2023-english/88045080-47e4-4d97-87eb-c788e77bbfbd) — Economics · QP · 2023 · Eng ## More from Grade 12 Economics - [Economics P2 Memo Afr watermark](https://www.hlayiso.com/library/economics-p2-memo-afr-watermark/c9d66fa3-0b40-419d-a6f6-d862847d4e82) — Memo · 2025 · Afr - [Economics P2 (English) June 2025 Possible Answers](https://www.hlayiso.com/library/economics-p2-english-june-2025-possible-answers/3df8bb66-2d0a-4b1b-89bf-509b303bfa3e) — Memo · 2025 · Eng - [Economics P1 May-June 2025 MG Eng](https://www.hlayiso.com/library/economics-p1-may-june-2025-mg-eng/f6c27985-fe67-48df-afba-d85bf5f76379) — Memo · 2025 · Eng - [Economics P2 May-June 2025 MG Afr](https://www.hlayiso.com/library/economics-p2-may-june-2025-mg-afr/4cc1190f-9c0a-43ea-98bc-3252875816a9) — Memo · 2025 · Afr - [NW 12 ECONOMICS P2 QP ENG JUNE 2025](https://www.hlayiso.com/library/grade-12-economics-2025-nw-june-exam-question-paper-paper-2-english/c80fc8cc-fc9d-44e9-a820-8736783a4556) — QP · 2025 · Eng - [ECONOMICS QP.P1 GR 12 JUNE 2024 (Backup papers)](https://www.hlayiso.com/library/economics-qp-p1-gr-12-june-2024-backup-papers/cb8af277-aab9-4fba-8e76-5924dcaf1941) — QP · 2024 ## Collection - [Grade 12 past papers](https://www.hlayiso.com/grade-12/past-papers) --- Hlayiso: free CAPS and IEB past papers, memos, notes and study guides for South African learners. 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