Economics Grade 12 Paper 2 LIM Prelim 2023 Question Paper

Downloaded from hlayiso.com LIMPOPO PROVINCIAL GOVERNMENT REPUBLIC OF SOUTH AFRICA DEPARTMENT OF EDUCATION '*�------------------- '11 -----------� �\ 11 II II II II II II II II II II II II II II ll ,��------------------ II --------------� #1 MARKS: 150 TIME: 2 HOURS I EECONP2 This question ·paper consists of 12 pages r--,..,......,,..: ..... �• ------·· -•

Downloaded from hlayiso.com Economics/P2 "2 LimpopoDoE/September 2023 NSC INSTRUCTIONS AND INFORMATION 4. 10. 11. 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. Answer only the required number of questions. Answers in excess of the required number will NOT be marked. Number the answers correctly according to the numbering system used in this question paper. Write the question number above each answer. Read the questions carefully. 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. Use only black or blue ink. You may use a non-programmable pocket calculator. Write neatly and legibly.

Downloaded from hlayiso.com Economics/P2 3 LimpopoDoE/September 2023 NSC SECTION A (COMPULSORY) QUESTION 1 30 MARKS — 20 MINUTES Aa 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 number (1.1.1—1.1.8) in the ANSWER BOOK, for example 1.1.9 C. 114 A market that has a hybrid structure is known as a (n) ...market. A _ perfect B factor C oligopoly D monopolistic competitive dele Benefits that accrue to an individual only are called...benefits. A _ social B _ internal C marginal D external 1.1.3 The ascending part of the marginal cost curve (MC) also represents the ...curve. A demand B average cost C supply D total cost 1.1.4 Average revenue is always equal to ... in all markets. A marginal revenue B market price C variable cost D fixed cost 1.1.5 Changes in the general price level are measured by a (n)... A _ index. B percentage. C_ VAT. D- GDP. 1.1.6 Visiting art galleries is part of ... tourism. A eco- B business C domestic D. cultural

Downloaded from hlayiso.com Economics/P2 4 LimpopoDoE/September 2023 NSC 1.1.7 One way of preventing over-fishing is by ... A __ using quotas. B __ levying taxes. C restitution. D partnerships. 1.1.8 An increase in prices of goods and services by 50% and more per month is known as ...inflation. A consumer B producer C hyper D demand pull (8 x 2) (16) Wed Choose a description from COLUMN B that matches an item in COLUMN A. Write only the letter (A - !) next to the question number (1.2.1-1 .2.8) in the ANSWER BOOK. COLUMN A COLUMN B 4.2.1 Licensing A keeping something intact 1.2.2 Cartel B_ abarrier to entry that is not economic in nature 1.2.3 Subsidy C__ the ratio of the GDP at current prices to GDP at constant prices for a specific year 4.2.4 Competition Commission D _ itis established with the aim of forming collective monopoly 4.2.5 Preservation E__ ithas practical application for daily survival of local people 4.2.6 Implicit deflator F _ itis a grant given to support production 4.2.7 Indigenous knowledge of good 4.2.8 Restrictive Monetary |G raising interest rate and reducing Policy money supply H__ it gives all South Africans equal opportunities to participate in economic activities | raising taxes and government spending (8x1 (8) Copvriaht reserved Please turn over

Economics/P2 1.3 Downloaded from hlayiso.com 5 LimpopoDoE/September 2023 NSC Give ONE term for each of the following descriptions. Write only the term next to the question number (1.3.1—1.3.6) in the ANSWER BOOK. 1.3.1 1.3.2 1.3.3 1.3.4 1.3.5 1.3.6 A technique for enumerating and evaluating the total costs and total benefits associated with an economic project used by governments The value of the next best alternative not chosen The prices that are set above market prices It has been created to promote tourism in our country Inflation that excludes items from CPI basket that have highly volatile prices The physical surroundings and conditions that affect people’s lives (6x1) (6) TOTAL SECTION A: [30]

Downloaded from hlayiso.com Economics/P2 6 LimpopoDoE/September 2023 NSC SECTION B 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. 7 Ra Name TWO examples of explicit costs. (2 x 1) (2) 21:2. Why is the private sector reluctant to provide community goods? (2) 2.2 Study the graph below and answer the questions that follow. OLIGOPOLY 4 oO | c 0) 2 oO ow a] | oO 17) ° (6) oy 2 o D Quantity 2251 Identify the market price above. (1) 2.2.2 Which part of the demand curve is elastic in the diagram above? (1) 2.2.3 Briefly describe the term oligopoly. (2) 2.2.4 Why is the demand curve of an oligopoly kinked? (2) 2.2.5. How can government correct allocative distortions caused by oligopolies? (4) Please turn over

Downloaded from hlayiso.com Economics/P2 LimpopoDoE/September 2023 7 NSC 2.3 Study the information below and answer the questions that follow. SA’S STRUGGLING MONOPOLY ALLOWED TO HIKE ELECTRICITY PRICES Energy regulator has approved an 18.65% increase in electricity prices for 2023 — and a 12.74% hike for next year. NERSA’s decision relates to the fifth Multi-Year Price Determination (MYPD) for the power utility for year two (2023/2024) and year three (2024/2025). The approved increase is lower than what Eskom had applied for but is still significant, and far higher than inflation. In September 2022, Eskom applied for a 32% price hike for 2023/ 2024, equating to a recovery of R351 billions. [Adapted from google} 2.3.1 Which institution regulates electricity prices in South Africa? (1) 2.3.2 What was the initial request for price increase from the power utility? (1) 23:3 Briefly describe the term monopoly. (2) 2.3.4 What will be the impact of this price increase on the economy? (2) 2.3.5 Why do many state owned monopolies struggle to make profits? (4) 2.4 Briefly discuss non-price competition and market entry as characteristics of monopolistic competition. (8) 2.5 Analyse the impact of minimum wages on the economy. (8) [40]

Downloaded from hlayiso.com Economics/P2 8 LimpopoDoE/September 2023 NSC QUESTION 3: CONTEMPORARY ECONOMIC ISSUES 40 MARKS - 30 MINUTES 3.1 Answer the following questions. 3.1.1 Give TWO types of consumer inflation. (2x1) (2) Satie How can property rights be used to protect the environment? (2) 3:2 Study the bar graph below and answer the questions that follow. DOMESTIC TOURISM IN SOUTH AFRICA: HOTEL OCCUPANCY RATE = 2019 ™ 2020 . ae -_ a 2 a 5 ath 8 Ply iy Jan Feb Mar May Jun ful Aug Sap Oct Nov Due [Adapted from southafrica.net] 3:2.1 When did most people (tourists) sleep in hotels in the country? (1) ee Give one example of a cultural tourist attraction in South Africa. (1) 3.2.3 Briefly describe the term domestic tourism. (2) 3.2.4 What has contributed to the rapid growth of tourism in the country in November 2019? (2) 3.2.5 How can South Africa be promoted as a tourist destination? (2 x 2) (4) Copvriaht reserved Please turn over

Downloaded from hlayiso.com Economics/P2 9 LimpopoDoE/September 2023 NSC 33 Study the picture below and answer the questions that follow. CONSERVATION OF ANIMALS THREATENED BY EXTINCTION Springbok Rhinocerous [Adapted from google] 3:351 Identify an animal from the ones in the information above that is threatened by extinction. (1) 3.3.2 Name any ONE area that has been created for protection of these animals. (1) 3.3.3. Briefly describe the term santeecation (2) 3.3.4 What can the Convention on International Trade in Endangered Species (CITES) do to assist in protection of endangered species? (2) 3.3.5 Howcan government intervene in the preservation of environmental assets? (4) 3.4 Discuss the effects of inflation on taxpayers and investors and savers. (2 x 4) (8) 3.5 How can businesses reduce the impact of pollution? (4 x 2) aa Canvrinht recaniad (Maaaa wa Sse

Economics/P2 Downloaded from hlayiso.com 10 LimpopoDoE/September 2023 NSC QUESTION 4: MICROECONOMICS AND CONTEMPORARY ECONOMIC ISSUES 40 MARKS — 30 MINUTES 4.1 Answer the following questions. 4.1.1 Give TWO features of public goods. (2x 1) 4.1.2 How does the government benefit from tourism? 4.2 Study the graph below and answer the questions that follow. — —— EXTERNALITIES iS} © 5 Cc o > ® iv me} c oO A} oO fo} [S) o ne o (2) (2) 0 ai Q Quantity 4.2.1 Identify the type of externality shown above. 4.2.2 Which point on the graph above represents optimum consumption ~ point? 4.2.3 Briefly describe the term externality. 4.24 Why are externalities causes of market failures? 4.2.5 How can government reduce the consumption of demerit goods? (1) (1) (2) (2) (4)

Economics/P2 11 LimpopoDoE/September 2023 4.3 4.4 4.5 NSC Study the information below and answer the questions that follow. CONSUMER PRICE INDEX JUNE 2022 7 4 % This is the highest rate since May 2009 when the rate was 8.0%. Annual consumer inflation Percentage change for largest annual price increases for some items (June 2021 vs June 2022): kal 11.2% 32.5% 4) 14.5% 45.3% wma 4.370 PAiilic transport = "WwoN “As inflation climbs there are always fears that the SARB may be forced to hike repo rate. The SARB uses repo rate to fight inflation which is now at its highest in 13 years”. [Adapted from EWN News] 4.3.1 Identify the inflation rate in the year 2022 according to the (1) information above? 4.3.2 What is the current inflation target of the South African Reserve Bank (SARB)? (1) 4.3.3 Briefly describe the term inflation. (2) 4.3.4 In what way can fuel as a key input cause inflation? (2) 4.3.5 How can cost-push inflation be curbed/reduced in the economy? (2x2) (4) Discuss the impact of lack of information on consumers and workers as causes of market failure. (2x 4) (8) Analyse the measures used in South Africa in ensuring environmental (8) sustainability. (4x 2) [40] TOTAL SECTION B: [80]

Downloaded from hlayiso.com Economics/P2 12 LimpopoDoE/September 2023 NSC SECTION C Answer any ONE of the two questions in this section in the ANSWER BOOK. Your answer will be assessed as follows: STRUCTURE OF THE ESSAY MARK ALLOCATION Introduction Max. 2 Introduction: e The introduction is a lower-order response e Agood starting point would be to define the main concept related to the question topic e Donot 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: Max. 26 e Main part: Discuss in detail/In-depth discussion/Examine/Critically : discuss/ Cio compare/Evaluate/DistinguishiDiferentite/Explain Additional part: Give own opinion/Critically discuss/Evaluate/Critically Max. 10 evaluate/ Draw a graph and explain/Use the graph given and explain/Complete the given graph [Calculate / or ige/Compare/Explain/Distinguish/InterprevBriefly debate/ How / Suggest Conclusion: Any higher-order conclusion should include: e Abrief summary of what has been discussed without repeating facts already mentioned e Any opinion or value judgement on the facts discussed e Additional support information to strengthen the discussion/analysis e Acontradictory viewpoint with motivation, if required Recommendations Conclusion Max. 2 TOTAL 40 QUESTION 5: MICROECONOMICS 40 MARKS — 40 MINUTES * Discuss in detail various equilibrium positions in a perfect market by using graphs. : (26) « How does the Competition Policy affect the economy? (10) —‘[40) QUESTION 6: CONTEMPORARY ECONOMIC ISSUES 40 MARKS - 40 MINUTES e Discuss in detail the effects of tourism. (26) » How can an increase in the inflation rate affect the tourism sector? (10) [40.