Economics Grade 12 Paper 1 NSC Mock 2025 Question Paper

DEPARTMENT OF EDUCATION DEPARTEMENT VAN ONDERWYS LEFAPHA LA THUTO ISEBE LEZEMFUNDO PROVINSIALE VOORBEREIDENDE EKSAMEN/ PROVINCIAL PREPARATORY EXAMINATION [ GRAAD/GRADE 12 | EKONOMIE/ECONOMICS VRAESTEL/PAPER 1 SEPTEMBER 2025 PUNTE/MARKS: 150 TYD/TIME: 2 uur/hours Hierdie vraestel bestaan uit 13 bladsye/ This question paper consists of 13 pages. Kopiereg voorbehou/Copyright reseved Biaai om asseblief/Please turn ov

NC/September 2025 INSTRUCTIONS AND INFORMATION 1. 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 calculator. Write neaily and legibly. Copyright reserved Please turn over

NC/September 2025 ‘SECTION A (COMPULSORY) 30 MARKS - 20 MINUTES QUESTION 1 i 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 Copyright reserved Uninterrupted flow of spending, production and income between different sectors in the economy is known as the ... A __ production factors. B business cycle. C multiplier. D circular flow. The inverse relationship between unemployment and inflation is known as the ... curve. A Phillips B demand C Laffer D Lorenz Transfer of functions and ownership from the private sector to the public sector is known as ... A __ privatisation. B nationalisation. C governance. D __soparastatals. ... of a currency refers to the deliberate increase in the value of the currency in terms of another currency. A __ Depreciation B Appreciation C Revaluation D Devaluation The abolition of state interference in trade flows on both the import and export side is referred to as ... export promotion. trade liberalisation. ad valorem tax. industrial development. ooOUPY Please tum over

1.1.6 1.1.8 Copyright reserved NC/September 2025 A development policy that seeks to improve service delivery to the poor and create an environment for human development is called the ... A Reconstruction and Development Program. B Expanded Public Works Programme. C New Growth Path. D National Development Pian. The ... is an intergovernmental organisation that aims to promote socio-economic cooperation and integration, as weil as political and security cooperation between 15 states in Southern Africa. . A __ Southern African Customs Union (SACU) B African Union (AU) C Southern African Development Community (SADC) D_ North Atlantic Free Trade Area (NAFTA) The average number of years that newborn babies are expected to live under the existing conditions in a region or country is known as ... A __ infant mortality. B nutrition. C health spending. D life expectancy. (8 x 2) Please turn over (16)

NC/September 2025 1.2 Choose a description from COLUMN B that matches the item in COLUMN A. Write only the fetter (A-I} next to the question number (1.2.1—1.2.8) in the ANSWER BOOK, for example 1.2.9 J. COLUMN A COLUMN B 1.2.1 Savings “find legal ways to pay less tax through knowledge of the tax laws = 1.2:2 Extrapolation |B process by which the standard of 1.2.3 Tax avoidance 7 living improves 1.2.4 Globalization © entities that support economic collaboration, promote financial 1.2.5 Protectionism stability, and works toward reducing poverty worldwide 1.2.6 Economic development ff ‘D trade principle that attempts to keep 1.2.7 Industrial development the domestic economy safe by restricting the import of goods and 1.2.8 International Monetary services - . Fund (IMF) “ we VE income that is not consumed F process of increasing international cooperation and communication, leading to an increase in trade and international business transactions G_ An international bank established to promote economic recovery and development H__ refers to policies aimed at encouraging investments and . greater manufacturing efficiency | predict unknown data, based on a pattern of known data (8x1) (8) Copyright reserved Please turn over

NC/September 2025 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 market where one currency is traded for another, e.g. rand for the dollar 1.3.2 The many rules and regulations that govern state departments and lead to poor service and failure to meet government targets 1.3.3 When a country's opportunity cost of producing a product is lower than another country's opportunity cost of producing the same product 1.3.4 Negative economic growth for at least two consecutive quarters 1.3.5 The main objective of this incentive is to encourage greater investment in training for industrial development 1.3.6 Measured by dividing the real GDP by the number of workers employed (6 x 1) (6) TOTAL SECTION A: 30 Copyright reserved Please turn ove

SECTION B NC/September 2025 Answer any TWO of the three questions in this section in the ANSWER BOOK. QUESTION 2: MACROECONOMICS 40 MARKS -— 30 MINUTES euil Answer the following questions. 2.1.1 Name any TWO factors of production. (2x 1) 2.1.2 What influence will an increase in the repo rate have on employment levels in South Africa? (1 x 2) 2.2 Study the cartoon below and answer the questions that follow. COME ON, THERE'S STILL A LOT oF SPACE! but a reduction. 2.2.1 22:2 2.2.3 2.2.4 2.2.5 Copyright reserved [Adapted from Netwerk24 18 February 2025) Identify from the cartoon who is portrayed as bearing the burden of the government's debt. Name the institution that is responsible for collecting taxes on behalf of the government. Briefly describe the term indirect tax. Explain why governments justify imposing high taxes? What consequence could a 2% increase in VAT have on businesses in the South African economy? (2 x 2) Please turn over () (1) (1) (2) (2) (4)

NC/September 2025 2.3 Study the graph below and answer the questions that follow. 49.1445 49.0000! . 18.5800 | —-— 48.0000 EXCHANGE RATES 417.5000 = 17.28474 = = iid - rc = = S [Adapted from Historical exchange rates] 2.3.1 Identify the exchange rate of the rand against the dollar at the beginning of October 2024. 2.3.2 Name ONE factor that will influence the demand for the US dollar. 2.3.3 Briefly describe the term terms of trade. 2.3.4 Explain possible reasons why the rand might depreciate against the US dollar. 2.3.5 What impact does improved consumer confidence have on the economy and the exchange rate of the rand? (2x2) 2.4 Explain how the multiplier effect can influence the government in creating more jobs when there is a R20 billion injection into the economy with a marginal propensity to save (mps) of 0,4. Show ALL calculations. 25 How can the government use the fiscal policy as part of demand-side policies to increase aggregate demand in the economy? (4x 2) Copyright reserved Please turn over 4) 8) 8) 40]

NC/September 2025 QUESTION 3: ECONOMIC PURSUITS 40 MARKS — 30 MINUTES 34 Answer the following questions. St.4 Name any TWO methods to encourage export promotion. (2 x 1) (2) 3.1.2 Explain how access to quality education promotes economic development and reduces inequality. (1 x2) (2) 3.2 Study the extract below and answer the questions that follow. MANUFACTURING CAN STIMULATE ECONOMIC GROWTH Industrial policy should be at the core of the country's strategy for economic development. You are aware that manufacturing creates jobs in both the | upstream and downstream sectors. These jobs are typically permanent and pay decent wages, while workers have access to skills development and career Opportunities. - Parks Tau - [Adapted from netwerk24/business/economy 17 July 2024] 3.2.1 Identify the National Department that Parks Tau is currently serving as Minister of. (1) 3.2.2 Name the benefit from the extract above that is created when industrial policies are implemented in an economy. (1) 3.2.3 Briefly describe the term Spatial Development Initiatives. (2) 3.2.4 Explain the positive impact of skills development on workers. (2) 3.25 How can the Industrial Policy Action Plans (IPAP) enforce competition policies. (2x2) (4) Copyright reserved Please turn over

NC/September 2025 3.3 Study the table below and answer the questions that follow. KEY ECONOMIC INDICATORS OF 2024 OocT oct INDICATORS | 9023 % 2024 % 1 Production Price Index (PPl)* | index | 131,14 5,1 135,4 AS} 2 Official inflation rate (CPI)* Index | 111,8 5.4 116,1 3,8 3 Exchange rate:** : Rand/dollar RS 19,06 5,4 17,60 a7 Rand/pound Rfe | 23,18 | -13,3 | 23,10 0,3 Rand/euro R€ | 20,12 | -12,9 | 19,26 4,3 4 Interest rate:* Bank rate/repo rate % 8,25 2,00 8,00 -0,25 Prime rate % 11,75 | 2,00 | 11,50 | -0,25 [Source: Economic indicators and price movements in 2024 ~ SA Grain} 3.3.1 identify the decrease in inflation from October 2023 to October 2024. (1) 3.3.2 Name the indicator from the table above that predicts consumer ; inflation. (4) 3.3.3 Briefly describe the term repo rate. (2) 3.3.4 Explain a possible reason why the South African Reserve Bank will : lower the interest rate. (2) 3.3.5 How can an increase in inflation impact the economy? (2x2) (4) 3.4 Discuss the employment rate and unemployment rate as employment ; indicators. (2x4) (8) 3.5 How can South Africa reduce imports to correct a deficit in the balance of i payments? : (4x 2) (8) [40] Copyright reserved Please tum over

NC/September 2025 QUESTION 4: MACROECONOMICS AND ECONOMIC PURSUITS 40 MARKS - 30 MINUTES 44 Answer the following questions. AAA Name any TWO sub-accounts of the financial account. (2x1) 2) 4.1.2 What role does the World Trade Organisation play in promoting trade and cooperation between countries? (1 x2) 2) 4.2 Study the following graph and answer the questions that follow. ECONOMIC GROWTH IN THE SECOND QUARTER OF 2024 “7% “Qt 6206-03 O4 1902 83 C4 G1 2202 O04 Qi G2 2021 2022 2023 Quarter-on-quarter percentage change in "GDP “production (constant 2015 prices, seasonally adjusted) [Adapted from StatsSA] 4.2.1 Identify the increase in GDP from Q3 to Q4 in 2023. (1) 4.2.2 Name ONE reason why economic growth is important for a country. (1) 4.2.3 Briefly describe the term supply-side approach. . (2) 4.2.4 Explain the role of investments in economic growth. (2) 4.2.5 Compare the challenges of globalisation in the north to the challenges in the south. (2x2) (4) Copyright reserved Please turn over

4.3 44 4.5 NC/September 2025 Study the information below and answer the questions that follow. THE INDEX SHOWS THE ECONOMY HIT THE BRAKES IN JANUARY The number of electronic transactions processed between banks through payment systems decreased by 8% in January after reaching a peak in December for a single month. According to BankservAfrica, which facilitates payments between banks, a peak of 170,4 million electronic transactions was recorded in December. This droppéd to 156,2 million in January. [Adapted from Network 24] 4.3.1 Identify under which category of the money supply electronic transfers are classified as. 4.3.2 Name a possible reason for the. peak in electronic transactions in December. 4.3.3 Briefly describe the term real business cycle. 4.3.4 Explain how consumer spending on imports can influence the South African business cycle. 4.3.5 How can lagging indicators as features of business cycles be used in forecasting? . (2 x 2) Briefly discuss income levels and preferences and taste as reasons for . international trade. (2x4) Evaluate the appropriateness of Broad-Based Black Economic Empowerment in the South African economy. ~ (4 x 2) TOTAL SECTION B: Copyright reserved Please turn over 1) 2) 2) 8) 8) (40) 80

NC/September 2025 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 ESSAY MARK ALLOCATION Intreduction The introduction is a Jower-order answer. Max. 2 * A good starting point would be to describe the main concept related to the question. 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 discuss/ Max. 26 Compare/Distinguish/Differentiate/Explain/Draw a graph and explain/ Complete the given graph/Debate A maximum of 8 marks may be awarded for headings/examples. Additional part: Critically discuss/Evaluate/Critically evaluate/Debate/ Max. 10 Deduce/Compare/interpret/How?/Suggest A maximum of 2 points can be awarded for simply stating facts. Conclusion Any higher-order conclusion should include: Max. 2 * Abrief summary of what was discussed, without repeating facts already mentioned e Any opinion or valued judgement on the facts discussed ¢ — Additional supporting information that strengthens the discussion/analysis ¢ Acontradictory viewpoint with motivation ¢ Recommendations TOTAL 40 QUESTION 5: MACRO-ECONOMICS 40 MARKS -— 40 MINUTES e Discuss in detail the markets within a four-sector circular flow model. e How can an increase in economic growth, import expenditure and higher interest rates affect the balance between injections and leakages in the economy? QUESTION 6: ECONOMIC PURSUITS 40 MARKS — 40 MINUTES * Discuss in detail South Africa's initiatives (endeavours) in regional development. * How successful has the government been in promoting industrial development in South Africa? TOTAL SECTION C: GRAND TOTAL: Copyright reserved (26) (10) [40] (10) [40] 40 150