Economics Grade 12 Paper 2 MP Prelim 2023 Question Paper

Downloaded from hlayiso.com | education MPUMALANGA PROVINCE NATIONAL SENIOR CERTIFICATE i; GRADE 12 ECONOMICS P2 SEPTEMBER 2023 MARKS: 150 TIME: 2 HOURS This question paper consists of 14 pages.

Downloaded from hlayiso.com Economics/P2 2 MDE/September 2023 INSTRUCTIONS AND INFORMATION 1. Answer FOUR questions as follows in the ANSWER BOOK. e SECTION A: COMPULSORY ¢ SECTION B: Answer any TWO of the three questions. e 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. 7. 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. 11. Write legible and present your work neatly. Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P2 3 MDE/September 2023 NSC SECTION A: COMPULSARY 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. 1.4.1 1.1.3 1.1.5 A firm must shut down if it cannot cover the ... cost. A unit B fixed Cc marginal D variable The actual cost paid by the consumer when a good is purchased is called ... cost. A private B external C social D Public Acharacteristic of monopolistic competitors is that they ... A __ have full control over the price. B can easily enter and exit the market. C produce unique products. D make economic profit in the long run. The government can intervene to reduce the production and consumption of demerit goods through the ... A granting subsidies. Buse ofasin tax C levying progressive taxation. D _private-public partnership. The type of inflation that occurs when aggregate demand exceeds aggregate supply of goods and services is called ... inflation. A __ imported B _ key inputs CG _ cost-push D Demand-pull Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P2 4 MDE/September 2023 NSC 1.1.6 South Africans travelling to other countries are known as ... tourists. A Influx B _ internal C outbound D inbound 1.1.7 Acontinuous decrease in the general price level over a period of time is called A _ inflation. B - stagflation. C hyperinflation. D deflation. 1.1.8 The international agreement that is aimed at managing nuclear waste is known as... A Kyoto Protocol. B_ Stockholm Protocol. C Basel Convention. DD Millennium Development Goal. (8x2) (16) Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P2 5 MDE/September 2023 NSC 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 Merit goods 1.2.2 Allocative inefficiency 1.2.3 Diseconomies of scale 1.2.4 Core inflation 1.2.5 Pollution 1.2.6 Biodiversity 1.2.7. Marketable permit 1.2.8 Cultural tourism a variety of plant and animal species found in a particular environment a situation where total revenue is equal to total cost licence for a business to pollute up to a specified limit The introduction of harmful substances into the environment visiting museums and art galleries a situation where average costs increase as | production increases goods that improve the welfare of the society. excludes the prices of goods and services that change frequently a situation where the market does not supply goods that match the needs of the consumers Copyright reserved (8x1) (8) Please turn over

Downloaded from hlayiso.com Economics/P2 6 MDE/September 2023 NSC 1.3 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. Abbreviations, acronyms and examples will NOT be accepted. 1.3.1 The actual costs of the businesses such as rent, raw materials and wages. 1.3.2 When a firm’s average revenue is greater than the average costs. 1.3.3 A technique used by the government to determine whether a project is beneficial to society or not. 1.3.4 When an economy experiences high inflation, high unemployment and low growth simultaneously. 1.3.5 A gradual increase in the overall temperature of the earth atmosphere. 1.3.6 The practices and traditions that are unique to a particular society. (6x1) (6) TOTAL SECTION A: [30] Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P2 7 MDE/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. 2.1.1. Name any TWO characteristics of public goods. (2x1) (2) 2.1.2 Why is the individual firm in a perfect competitive market regarded as a price taker? (1x2) (2) 2.2 Study the extract below and answer the questions that follow. IMPERFECT MARKETS STEERS [Source: google.co.za] 2.2.1 Identify ONE firm that represents monopolistic market from the above information. (1) 2.2.2 Name any ONE type of a monopoly. (1) 2.2.3 Briefly describe the term oligopoly. (2) 2.2.4 Why do monopolistic competitors prefer to use non-price competition? (2) 2.2.5 Why is the entry into the oligopolistic market regarded as difficult? (2x2) (4) Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P2 8 MDE/September 2023 NSC 2.3. Study the graph below and answer the questions that follow. PRODUCER SUBSIDY D s Price > Quantity 2.3.1 Identify the market price from the graph above. (1) 2.3.2 Name any ONE example of a direct subsidy (1) 2.3.3 Briefly describe the term subsidy. (2) 2.3.4 Explain the benefit of subsidies to producers. (2) 2.3.5 Use the above graph to show explain the effect of a subsidy on the consumer. (2x2) (4) 2.4 With the aid of a graph, explain the supply curve of a perfectly competitive firm. (8) 2.5 Analyse the ways in which government can ensure equitable distribution of income and wealth. (4x 2) (8) [40] Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P2 9 MDE/September 2023 NSC QUESTION 3: CONTEMPORARY ECONOMIC ISSUES 40 MARKS -30 MINUTES 3.1 Answer the following questions. 3.1.1. Give any TWO causes of cost push inflation. (2x1) (2) 3.1.2 How can education help to ensure environmental sustainability? (1x2) (2) 3.2. Study the picture below and answer the questions that follow. [Adapted from: google images] 3.2.1 Identify the type of pollution depicted in the picture above. (1) 3.2.2 Name any ONE renewable source of energy. (1) 3.2.3 Briefly describe the term preservation. (2) 3.2.4 Explain the effect of carbon dioxide produced by industries on the society. (2) 3.2.5 Why does the market fail to protect the environment? (2x2) (4) Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P2 10 MDE/September 2023 NSC 3.3 Read the extract below and answer the questions that follow. SA RESERVE BANK HIKES REPO RATE South Africans were set to feel more pain in 2023 as the South African Reserve Bank (SARB) had hiked (increased) the repo rate once again by 25 basis points in January. This took the repurchase rate (repo rate) to 7.25% from 7%. This meant that the prime lending rate in the country increased from 10.5% to 10,75%. Interest rates are determined in line with the rate of inflation. This is because they are a useful monetary measure to control inflation. [Adapted from: Business Report 3.3.1 Identify the repo rate before the hike (increase). 3.3.2 Give ONE cause of demand-pull inflation. 3.3.3 Briefly describe the term prime rate. 3.3.4 Explain the influence of inflationary expectations on businesses. 3.3.5 How can inflation affect people who are investors and savers in the economy? (2x2) 3.4 Distinguish between the consumer price index (CP!) and the producer price index (PPI). (2x4) 3.5 How successful is the SA government in controlling deforestation? (1) (1) (2) (2) (4) (8) (8) [40] Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P2 WW MDE/September 2023 NSC QUESTION 4: MICROECONOMICS AND CONTEMPORARY ECONOMIC ISSUES 40 MARKS - 30 MINUTES 4.1. Answer the following questions. 4.1.1. Name any TWO examples of demerit goods. (2x1) (2) 4.1.2 Explain the effect of a depreciating rand on inbound tourists in South Africa. (1x2) (2) 4.2 Study the graph beliow and answer the questions that follow. * D Di ® oO “ Market failure es p ------------+ > W Quantity 4.2.1 Identify the demand curve that represents the private benefit? (1) 42.2 Give an example of positive externality. (1) 4.2.3 Briefly describe the term social benefit. (2) 4.2.4 Why is social optimal output (Q1) more beneficial to the community? (2) 4.2.5 Use the graph above, to explain how the market has failed to allocate resources efficiently. (2 x 2) (4) Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P2 12 MDE/September 2023 NSC 43 Study the extract below and answer the questions that follow. ENVIRONMENTAL SUSTAINABILITY: CLIMATE CHANGE Climate change is affecting South Africa severely. Parts of the country increasingly experience serious droughts, while at the same time changes in rainfall patterns result in severe storms, landslides and flash flooding in other parts of the country. In the dry areas, the drought results in significant reductions of dam levels which cause chronic water shortages in urban areas. The shortage of water also negatively affects crop yields and livestock, which in turn negatively impacts on food security, especially among the urban poor who are unable to adjust to the resultant increases in food prices. (Source: www.sacities. net) 4.3.1 Identify the environmental problem in the extract above. (1) 4.3.2 Name any ONE effect of drought. (1) 4.3.3 Briefly describe the term environmental sustainability. (2) 4.3.4 Explain the positive impact of levying green tax on environment. (2) 4.3.5 How can floods affect the South African economy? (2x2) (4) 4.4 Describe the aims/objectives of the competition policy. (4.x 2) (8) 4.5 Evaluate the success of inflation targeting. (8) [40] TOTAL SECTION B: (80) Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P2 13 MDE/September 2023 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: STRUCTURE OF ESSAY MARK ALLOCATION Introduction The introduction is a lower order-response « A good starting point would be to define the main concept related to the question topic. e Do not include any part of the question in your introduction. e Do not include any part of the introduction in your body. «Avoid saying in the introduction what you are going to discuss in the body. Max. 2 Body Main part: Discuss in detail/ In depth discussior/ 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 Abrief 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. eoee Max. 2 TOTAL 40 QUESTION 5: MICROECONOMICS 40 MARKS - 40 MINUTES ¢ Compare and contrast the perfect market and the monopoly in detail. (26) e How would the continued stages of load shedding negatively impact on the market participants? (10) 40 Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P2 14 MDE/September 2023 NSC QUESTION 6: CONTEMPORARY ECONOMIC ISSUES 40 MARKS —- 40 MINUTES e Examine in detail the effects of tourism. (26) e How can South Africa improve the marketing of its tourist attractions in its less popular destinations? (10) 40 TOTAL SECTION C: [40] GRAND TOTAL: 150 Copyright reserved Please turn over