Economics Grade 12 Paper 2 NW Prelim 2023 Question Paper

Downloaded from hlayiso.com ` NATIONAL SENIOR CERTIFICATE GRADE 12 ECONOMICS P2 SEPTEMBER 2023 MARKS: 150 TIME: 2 hours This question paper consists of 13 pages. Copyright reserved Please turn over

Downloaded from hlayiso.com Eco NW/September 2023 NSC 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. 4. Write the question number above each answer. 5. Read the questions carefully. 6. Start EACH question on a NEW page. 7. Leave 2–3 lines between subsections of questions. 8. 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. 9. Use only black or blue ink. 10. You may use a non-programmable pocket calculator. 11. Write neatly and legibly. Copyright reserved Please turn over

Downloaded from hlayiso.com Eco NW/September 2023 NSC 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, e.g. 1.1.9 D. 1.1.1 The study of individual households in an economy is known as … economics. A macro B micro C labour D international 1.1.2 In any market the average revenue curve is the same as the … curve. A marginal cost B average cost C demand D supply 1.1.3 The assumption used by economists to describe a state where all other factors remain unchanged, is known as the … rule. A shut-down B profit maximisation C ceteris paribus D revenue maximisation 1.1.4 Government intervention in the market ensures sufficient staple food for the poor by setting … prices. A maximum B minimum C limited D market 1.1.5 The maximum number of tourists that an area can cope with in a way that does not destroy the attraction is called ... A conservation. B superstructure. C infrastructure. D carrying capacity. Copyright reserved Please turn over

Downloaded from hlayiso.com Eco NW/September 2023 NSC 1.1.6 The main purpose of South African Tourism (SAT) is to promote South Africa as a tourist destination to … tourists. A domestic and international B only domestic C only international D only business 1.1.7 The international summit that commits industrialised countries to reduce greenhouse gas emissions is known as … A Rotterdam Convention. B Basel Convention. C Cop 17. D Kyoto Protocol. 1.1.8 The government can prevent fauna and flora species from becoming extinct through … A green tax. B granting of property rights. C environmental subsidy. D marketable permits. (8 x 2) (16) Copyright reserved Please turn over

Downloaded from hlayiso.com Eco NW/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, e.g. 1.2.9 J. COLUMN A COLUMN B 1.2.1 Short run A existence of facilities and amenities, for example roads and bridges 1.2.2 Non-rivalry B total revenue is equal to total cost C the value of what you have to give 1.2.3 Opportunity cost up in order to choose something else 1.2.4 Firm D meeting the needs of the present generation without compromising the needs of future generations 1.2.5 Infrastructure E the emission of car gases that contribute to global warming 1.2.6 Sustainable development F an act of visiting art galleries, museums, religious and sporting events 1.2.7 Cultural tourism G consumption by one person does not reduce the consumption by another 1.2.8 Greenhouse effect individual H smallest individual and independent producing unit I period where at least one factor of production is fixed (8 x 1) (8) Copyright reserved Please turn over

Downloaded from hlayiso.com Eco NW/September 2023 NSC 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 A group of businesses that produce the same products. 1.3.2 A horizontal demand curve which represents changes in quantity demanded without a change in the price. 1.3.3 Financial grants by government to support the production of goods and services. 1.3.4 An economy that aims at ensuring sustainable development and reducing ecological scarcities without degrading the environment. 1.3.5 South Africans travelling within the borders of the country. 1.3.6 The large-scale removal of trees from an established forest. (6 x 1) (6) TOTAL SECTION A: 30 Copyright reserved Please turn over

Downloaded from hlayiso.com Eco NW/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 Give any TWO examples of fixed cost. (2 x 1) (2) 2.1.2 How can producers benefit from minimum prices? (1 x 2) (2) 2.2 Study the extract below and answer the questions that follow. COMPETITION TRIBUNAL - HEARING ALERT NU-AFRICA DUTY FREE SHOPS (PTY) LTD VERSUS DISTELL LTD In this matter, Nu-Africa Duty Free Shops (Pty) Ltd (“Nu-Africa”) accuses Distell Ltd (“Distell”) of abuse of dominance due to its market power. This matter arose after Distell stopped supplying liquor products to Nu-Africa. Distell alleged that products supplied to Nu-Africa on a duty-free basis had made its way into the South African duty-paid market, a form of illicit alcohol trading known as 'tax leakage'. Nu-Africa denied Distell’s claims. They are now asking the Tribunal for an order declaring that Distell’s conduct amounts to an abuse of dominance, in contravention of the Competition Act. The Competition Commission decided not to refer this matter. Nu-Africa subsequently self-referred the matter to the Tribunal. [Adapted from The Competition Tribunal website] 2.2.1 Identify an institution that is responsible for investigating anti-competitive behaviour in the extract above. (1) 2.2.2 Which institution rules on cases submitted by businesses that are not satisfied with the rulings made by the Competition Tribunal? (1) 2.2.3 Briefly describe the term implicit costs. (2) 2.2.4 Explain the way in which dominant businesses can abuse their market (2) powers. 2.2.5 How can small, medium and microenterprises (SMME) contribute to the goals of the competition policy? (2 x 2) (4) Copyright reserved Please turn over

Downloaded from hlayiso.com Eco NW/September 2023 NSC 2.3 Study the table below and answer the questions that follow. COSTS AND BENEFITS IN THE SUPPLY OF ELECTRICITY TO SCHOOLS SCHOOL ECONOMIC COSTS ECONOMIC BENEFITS R million R million A 2 1 B 3,5 2 C 4 5 2.3.1 Identify institutions that are supplied with electricity in the table above. (1) 2.3.2 Name the sector which conducts a cost benefit analysis to determine whether a project is beneficial to the society or not. (1) 2.3.3 Briefly describe the term externality. (2) 2.3.4 Why are some projects undertaken although the financial cost is very high? (2) 2.3.5 Use the information in the table above to determine whether the project for school C is viable. Show ALL calculations. (4) 2.4 Briefly discuss overt collusion and tacit collusion. (2 x 4) (8) 2.5 Examine the conditions under which perfect competition successfully operates. (4 x 2) (8) [40] Copyright reserved Please turn over

Downloaded from hlayiso.com Eco NW/September 2023 NSC QUESTION 3: CONTEMPORARY ECONOMIC ISSUES 40 MARKS – 30 MINUTES 3.1 Answer the following questions. 3.1.1 Name any TWO Millennium Development Goals. (2 x 1) (2) 3.1.2 How can indigenous knowledge systems (IKS) be used to promote tourism in South Africa? (1 x 2) (2) 3.2 Study the cartoon below and answer the questions that follow. POLLUTION Hi! You are a No. I’m a frog toad, right? affected by pollution [Adapted from www.wikipedia.org] 3.2.1 Identify the type of pollution depicted in the cartoon above. (1) 3.2.2 Which government department is responsible for issuing out marketable permits in South Africa? (1) 3.2.3 Briefly describe the term biodiversity. (2) 3.2.4 Explain the message depicted by the cartoon above. (2) 3.2.5 How can the government promote the preservation of endangered environmental species? (2 x 2) (4) Copyright reserved Please turn over

Downloaded from hlayiso.com Eco NW/September 2023 NSC 3.3 Study the graph below and answer the questions that follow. DECREASE IN SOUTH AFRICAN TOURISM ARRIVALS: AUG 2022: 820 708 TO SEPT 2022: 792 934 3.3.1 Identify a period in which South Africa had the lowest number of tourist arrivals in the graph above. (1) 3.3.2 State any ONE criterion, that an activity should meet in order for it to be regarded as tourism. (1) 3.3.3 Briefly describe the term inbound tourism. (2) 3.3.4 Why is tourism regarded as a labour-intensive industry? (2) 3.3.5 Use the information in the graph above to calculate the percentage decline in the number of tourists arrivals between the months of August and September 2022. Show ALL calculations. (4) 3.4 Explain voluntary agreements and command and control (CAC) as government measures to ensure environmental sustainability. (2 x 4) (8) 3.5 Why is investment in tourism important for the economy? (4 x 2) (8) [40] Copyright reserved Please turn over

Downloaded from hlayiso.com Eco NW/September 2023 NSC QUESTION 4: MICROECONOMICS AND CONTEMPORAY ECONOMIC ISSUES 40 MARKS – 30 MINUTES 4.1 Answer the following questions. 4.1.1 Give any TWO effects of tourism. (2 x 1) (2) 4.1.2 How would an increase in the number of suppliers in a perfect market influence the prices of goods and services? (1 x 2) (2) 4.2 Study the graph below and answer the questions that follow. PROFIT MAXIMISATION UNDER PERFECT COMPETITION 4.2.1 Identify a break-even point in the graph above. (1) 4.2.2 Which other TWO curves can be used to illustrate the profit maximisation point of a perfectly competitive firm? (1) 4.2.3 Briefly describe the term profit maximisation. (2) 4.2.4 Why is the firm above only maximising profit at the point where output produced is 35? (2) 4.2.5 How does the total revenue (TR) curve of a perfectly competitive firm differ from the one of an imperfectly competitive firm? (2 x 2) (4) Copyright reserved Please turn over

Downloaded from hlayiso.com Eco NW/September 2023 NSC 4.3 Study the cartoon below and answer the questions that follow. BUMMER. OUR HOT AIR MELTED A GLACER RIO EARTH SUMMIT [Adapted from The Week.com] 4.3.1 Identify an international agreement on sustainable development from the cartoon above. (1) 4.3.2 Name the international organisation that initiated sustainable development summits. (1) 4.3.3 Briefly describe the term climate change. (2) 4.3.4 What was the purpose of the Rio Earth Summit? (2) 4.3.5 How can environmental subsidies be used to reduce environmental damage? (2 x 2) (4) 4.4 With the aid of a graph (Production Possibility Curve) explain how productive and allocative efficiencies can be achieved in the market. (8) 4.5 Evaluate the effectiveness of new technology in sustaining the environment. (4 x 2) (8) [40] TOTAL SECTION B: 80 Copyright reserved Please turn over

Downloaded from hlayiso.com Econom NW/September 2023 NSC SECTION C AAnswer any ONE of the two questions from this section in the ANSWER BOOK. Y (IYour answer will be assessed as follows: STRUCTURE OF ESSAY MARK ALLOCATION Introduction The introduction is a lower order response: Max.2  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 the introduction  Do NOT repeat any part of the introduction in the body.  Avoid mentioning 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/Evaluate/Distinguish/Differentiate/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 evaluate/ Debate/ Deduce/Compare/Distinguish/Interpret/How/Suggest A maximum of 2 marks may be allocated for mere listing of facts. Max.10 Conclusion Any higher–order conclusion should include: Max.2  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 40 QUESTION 5: MICROECONOMICS 40 MARKS – 30 INUTES  Compare and contrast in detail, the market structures of a monopoly and that of a monopolistic competition. (26 marks)  Why would a monopoly always make economic profit in the long? (10 marks) [40] QUESTION 6: CONTEMPORARY ECONOMIC ISSUES 40 MARKS – 30 MINUTES  Discuss in detail the measures to combat inflation. (26 marks)  How can inflationary expectations influence the behaviour of various participants in the economy? (10 marks) [40] TOTAL SECTION C: 40 GRAND TOTAL: 150 Copyright reserved