Economics Grade 11 P1 North West June 2019 Question Paper

Downloaded from hlayiso.com PROVINCIAL ASSESSMENT GRADE 11 ECONOMICS P1 JUNE EXAMINATION 2019 MARKS: 150 TIME: 2 hours. This question paper consists of 12 pages. Demo NW/JUNE/ECOM/ EMIS/6*******

Downloaded from hlayiso.com ECONOMICS/P1 GRADE 11 NW/JUNE EXAM 2019 INTSRUCTIONS 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 the 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 response comply with the cognitive requirements of the question. 9. Use only black or blue ink. 10. You may use a non-programmable pocket calculator. 11. Write neatly and legibly. Demo NW/JUNE/ECOM/ EMIS/6******* 2

Downloaded from hlayiso.com ECONOMICS/P1 GRADE 11 NW/JUNE EXAM 2019 SECTION A: COMPULSORY QUESTION 1 30 MARKS - 30 MINUTES 1.1 Various options are provided as possible answers to the following questions. Choose the most correct answer and write only (A, B, C or D) next to the corresponding question number (1.1.1 -1.1.8) in the answer book, for example 1.1.9 D 1.1.1 An individual that combines all the factors of production in the production process is known as a/an … A capitalist. B land owner. C entrepreneur. D labour. 1.1.2 A sector that employs more machineries than human beings is known as a … industry. A capital-intensive B labour-intensive C skills-intensive D brain-intensive 1.1.3 The value added method is used to avoid the problem of … when calculating GDP. A recurring costs B imputed cost C double counting D scarcity 1.1.4 An amount of income paid by the state to the country’s citizens without productive services rendered is known as … A salaries and wages. B service receipts. C income payments. D transfer payment. Demo NW/JUNE/ECOM/ EMIS/6******* 3

Downloaded from hlayiso.com ECONOMICS/P1 GRADE 11 NW/JUNE EXAM 2019 1.1.5 In a mixed economy, the most significant force in the distribution of goods and services is the … A individual and firms. B price system. C consumers. D government and firms. 1.1.6 All the economic decisions are taken by the…in a planned or command economy A government B firms C households D state 1.1.7 The tertiary sector in the production process consists of …industries. A factory B service C manufacturing D transformation 1.1.8 A sector that deals with the extraction of mineral deposits from nature is known as the…industry. A tertiary B secondary C service D primary (8x2) (16) Demo NW/JUNE/ECOM/ EMIS/6******* 4

Downloaded from hlayiso.com ECONOMICS/P1 GRADE 11 NW/JUNE EXAM 2019 1.2 Choose a description from COLUMN B that matches the item in COLUMN A. Write only the letter (A –F) next to the question number (1.2.1 – 1.2.8) in the ANSWER BOOK. COLUMN A COLUMN B 1.2.1 Capital deepening A the primary owners for the factors of production 1.2.2 Capital widening B when the state takes over the ownership of business from the private sector 1.2.3 Household C change in weather patterns 1.2.4 Expenditure method D occurs when the amount of capital per worker is increased 1.2.5 Fiscal policy E platinum, uranium and chromium F measured through C+ I + G + (X-M) 1.2.6 Nationalisation G occurs when the capital stock is increased to accommodate an 1.2.7 Mineral deposits increasing labour force H includes taxation, government 1.2.8 Climate spending and state borrowing I measured through wages, rent, interest and profit (8 x 1) (8) 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. NO abbreviations or acronyms will be accepted. 1.3.1 Physical or mental effort used in the production process of goods and services 1.3.2 The cost of borrowing capital 1.3.3 Goods that still have to undergo further production process 1.3.4 A decrease in the value of fixed assets 1.3.5 The transfer of business ownership from the state to the private sector 1.3.6 Consumer goods that are tangible and last longer than a year (6 x 1) (6) TOTAL SECTION A: 30 Demo NW/JUNE/ECOM/ EMIS/6******* 5

Downloaded from hlayiso.com ECONOMICS/P1 GRADE 11 NW/JUNE EXAM 2019 SECTION B Answer any TWO of the three questions from this section in the answer book QUESTION 2 40 MARKS – 30 MINUTES 2.1 Answer the following questions 2.1.1 Name any TWO characteristics of natural resources. (2x1) (2) 2.1.2 Why is technology regarded as the ‘FIFTH’ factor of production? (1x2) (2) 2.2 Study the picture below and answer questions that follow. 2.2.1 Name any type of labour depicted in the picture above. (1) 2.2.2 Which a word in the picture above is indicating one of the qualities of an entrepreneur? (1) 2.2.3 Briefly describe the concept production. (2) 2.2.4 How can entrepreneurship be promoted in South Africa? (2) 2.2.5 What is the economic importance of land in South Africa? (2 x 2) (4) Demo NW/JUNE/ECOM/ EMIS/6******* 6

Downloaded from hlayiso.com ECONOMICS/P1 GRADE 11 NW/JUNE EXAM 2019 2.3 Study the picture below and answer the questions that follow. ECONOMIC SYSTEMS 2.3.1 Name the economic system depicted above. (1) 2.3.2 Which sector is contributing the most into the economic system above? (1) 2.3.3 Briefly describe the concept economic system. (2) 2.3.4 How are the production decisions made under this economic system? (2) 2.3.5 Explain why the above economic system is not ideal for a country like South Africa. (2 x 2) (4) 2.4 Distinguish between nominal wages and real wages. (2 x 4) (8) 2.5 How does the South African government ensure the efficient delivery of socio-economic services? (8) [40] Demo NW/JUNE/ECOM/ EMIS/6******* 7

Downloaded from hlayiso.com ECONOMICS/P1 GRADE 11 NW/JUNE EXAM 2019 QUESTION 3 40 MARKS- 30 MINUTES 3.1 Answer the following questions 3.1.1 Name any TWO types of markets in the circular flow model. (2 x 1) (2) 3.1.2 Why is the mining industry important in South Africa? (1 x 2) (2) 3.2 Study the table below and answer the questions that follow. FUNCTIONAL CLASSIFICATION GOVERNMENT EXPENDITURE R billion 2017/2018 % Basic education 189,5 21,6 Health 144,6 A Defence, public order and safety 163,0 18,6 Higher education and training 56,6 6,4 Economic affairs 176,6 20,2 Social protection 143,9 16,3 Allocated expenditure 874,2 Debt service cost 115,0 11,6 Unallocated expenditure - - Consolidated expenditure 989,2 3.2.1 Name the government division that is responsible for drawing up the budget above at national level . (1) 3.2.2 Identify the expenditure item that captures old-age pension from the table above. (1) 3.2.3 Briefly describe the concept final consumption expenditure by government. (2) 3.2.4 What is the main reason behind the exclusion of transfer payments in the final consumption expenditure by the government? (2) 3.2.5 Calculate the percentage value of health expenditure represented by letter A. Show ALL the calculations. (4) Demo NW/JUNE/ECOM/ EMIS/6******* 8

Downloaded from hlayiso.com ECONOMICS/P1 GRADE 11 NW/JUNE EXAM 2019 3.3 Study the extract below and answer the questions that follow. SA’s key economic sectors South Africa has been traditionally rooted in the primary sectors – the results of a wealth of mineral resources and favourable agricultural conditions. Recent decades, however, have seen a structural shift in output. Since the early 1990s, economic growth has been driven mainly by the tertiary sector, which includes wholesale and retail trade, tourism, and communications. Now South Africa is moving towards becoming a knowledge-based economy, with a greater focus on technology, e-commerce, financial and other services. South Africa is world-renowned for its mining sector, with an abundance of mineral resources, accounting for a significant proportion of world production and reserves with an estimated worth of R20.3 trillion. The country is estimated to have the world’s fifth largest mining sector in terms of gross domestic product. [Source: Investors’ Handbook, the DTI & the IDC data 2017/18] 3.3.1 Name a sector that used to be a pillar of the South African economy prior to the 1990s. (1) 3.3.2 According to the extract above, what is the main driver of economic growth? (1) 3.3.3 Briefly describe the concept gross domestic production. (2) 3.3.4 How can the South African government contribute to a knowledge-based economy? (2) 3.3.5 What makes you think that South Africa is experiencing the paradox of plenty challenges? (2 x 2) (4) 3.4 Distinguish between non-durable goods and services. (2 x 4) (8) 3.5 Why do you think that the tertiary sector is important in building a prosperous and strong economy? (8) [40] Demo NW/JUNE/ECOM/ EMIS/6******* 9

Downloaded from hlayiso.com ECONOMICS/P1 GRADE 11 NW/JUNE EXAM 2019 QUESTION 4 40 MARKS- 30 MINUTES 4.1 Answer the following questions 4.1.1 Mention any TWO examples of transfer payments. (2x1) (2) 4.1.2 What is the significance of the gross national income in the economy? (1x2) (2) 4.2 Study the table below and answer the questions that follow: CONSUMPTION EXPENDITURE R bn Consumption expenditure by household 150 000 Government expenditure 130 000 Gross capital formation 80 000 Gross domestic expenditure 360 000 Exports on goods and services 45 000 Imports on goods and services 65 000 GDP @ market prices B [Source: Quarterly Bulletin, 2017] 4.2.1 Which method is used to determine GDP in the table above? (1) 4.2.2 Name any other method that can be used to calculate GDP. (1) 4.2.3 Briefly describe the concept gross domestic expenditure. (2) 4.2.4 What is the significance of capital goods in the economy? (2) 4.2.5 Determine the value of B. Show ALL the calculations. (4) Demo NW/JUNE/ECOM/ EMIS/6******* 10

Downloaded from hlayiso.com ECONOMICS/P1 GRADE 11 NW/JUNE EXAM 2019 4.3 Study the cartoon below and answer the question that follows: [Source: Paresh cartoons.com] 4.3.1 Identify ONE socio-economic challenge in the cartoon above. (1) 4.3.2 State ONE negative consequence of poverty in the cartoon above. (1) 4.3.3 Briefly describe the concept economic marginalization. (2) 4.3.4 Suggest ONE way in which the problem of inequality can be solved. (2) 4.3.5 How can human resources be targeted to be more effective in solving the problems above. (2 x 2) (4) 4.4 Distinguish between renewable resources and non-renewable resources. (2 x 4) (8) 4.5 Why do you think that gross fixed capital formation is important for the economy? (8) TOTAL: 40 Demo NW/JUNE/ECOM/ EMIS/6******* 11

Downloaded from hlayiso.com ECONOMICS/P1 GRADE 11 NW/JUNE EXAM 2019 SECTION C Answer any ONE of the TWO questions from this section in your ANSWER BOOK. Your answer will be assessed as follows: STRUCTURE OF ESSAY: MARK ALLOCATION: Introduction Max. 2 Body:  Main part: Discuss/Distinguish/Differentiate/Explain/Analyze Max. 26 /Evaluate/Assess  Additional part: Use / Draw / Sketch a graph / diagram … / Deduce … / Outline / Briefly explain / Expand on ... / Your own opinion Max. 10 Conclusion Any relevant higher order conclusion that should include:  A brief summary of what has been discussed / analyzed without repeating facts already mentioned in the body  An opinion or valued judgment on the facts discussed  Additional support information to strengthen the discussion / Max. 2 analysis  A contradictory viewpoint with motivation, if so required  Recommendations TOTAL 40 QUESTION 5  Discuss in detail the free-market economy. (26)  Briefly explain why a centrally-planned economy is not ideal economic system for a country like South Africa. (10) [40] QUESTION 6  Discuss in detail the economic importance of each of the following South Africa’s infrastructure components:  Communication (10)  Transport (8)  Energy (8  In your opinion, what do you think might have led to the recent energy crises in South Africa? (10) [40] TOTAL SECTION C: 40 GRAND TOTAL: 150 Demo NW/JUNE/ECOM/ EMIS/6******* 12