Economics Grade 12 Paper 2 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/PAPER2 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 reserved: Biaai om asseblief/Please turn over

NC/September 2025 INSTRUCTIONS AND INFORMATION Te 10. THs 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 blue ink. You may use a non-programmable pocket calculator. Write neatly and legibly. Copyright reserved Please turn over

NC/September 202 SECTION A (COMPULSORY) QUESTION 1 30 MARKS - 20 MINUTES 11 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 numbers (1.1.1—1.1.8) in the ANSWER BOOK, e.g. 1.1.9 D. Lai Copyright reserved COUP The competition policy institution that investigates and prosecutes anticompetitive practices is called the ... A Competition Commission/Ti ribunai of South Africa. B Competition Tribunal of South Africa. C Consumer Protection Agency. D Appeal Court. The shape of the average total cost curve for a firm in monopolistic competition is ... A downward sloping. B flat. C L-shaped. D U-shaped. A duopoly is a market structure characterised by ... A many sellers. B two dominant sellers. C asingle seller. D no barriers to entry. Purchasing a product without knowing the harmful side effects is an example of ... A positive externality. B negative externality. C imperfect information. D_ asubsidy. A sustained and extremely high rate of inflation, often exceeding 50% per month, is referred to as ... disinflation. defiation. hyperinflation. reflation. Please turn over

Tal. Copyright reserved NC/September 2025 The guidelines and frameworks set by governments to manage tourism growth are referred to as ... A B Cc D tourism policies. tourism strategies. infrastructure regulations. indigenous knowledge systems. The international summit focused on climate change which led to the establishment of the Kyoto Protocol is the ... A B Cc D Earth Summit (1992). United Nations Climate Change Conference (1997). Copenhagen Climate Summit (2009). Paris Climate Agreement (2015). Government intervention that imposes a_ financial charge on environmentally harmful activities to encourage pollution reduction, is called ... A asubsidy. B - sin tax. C environmental zoning. . D green tax. (8x 2) (16) Please turn over

IZ Choose a description from COLUMN B th Write only the letter (A-I) next to the ANSWER BOOK, e.g. 1.2.9 J. NC/September 2025 jat matches the item in COLUMN A. question numbers (1.2.1—1.2.8) in the COLUMN A COLUMN B Lat 1.2.2 1.23 PY 1.2.4 125 yet 127 1.2.8: “ Shutdown point Tacit collusion Marginal cost Externalities Inflation targeting Infrastructure development Carbon footprint Greenhouse gases B a _or service a framework where central banks use policy tools to keep the general rise in prices steady, helping to ensure economic stability and confidence traps heat in the air and slows its escape, warming the planet involves constructing and improving essential systems like transportation, utilities and communication networks the total cost of production divided by the number of units produced ~ the level of production where a firm's revenue covers only its variable costs the total impact of someone's actions on warming the planet the unintended costs or benefits of an economic activity that affect third parties not directly involved in the activity when firms in an industry implicitly agree to avoid competitive behaviours like price wars without explicit communication the additional cost incurred by ~/ producing one more unit of a good Copyright reserved (8x 1) Please turn over (8)

NC/September 2025 1.3 Give ONE term for each of the following descriptions. Write only the term next to the question numbers (1 -3.1—1.3.6) in the ANSWER BOOK. Abbreviations, acronyms and examples will NOT be accepted. 1.3:1 The actual, out-of-pocket expenses that a firm incurs during its operations 1.3.2 The practice of charging different prices to different consumers for the same product based on their willingness to pay 1.3.3 Goods that are non-excludable and non-rivalrous 1.3.4 A general decrease in prices and an increase in the purchasing value of money 1.3.5 Someone who travels from their home country to another country for leisure, business or other purposes 1.3.6 Natural resources that can be replenished over time (6 x 1) (6) TOTAL SECTION A: 30 Copyright reserved - Please turn over

NC/September 2025 SECTION B Answer any TWO of the three questions in this section in the ANSWER BOOK. QUESTION 2: MICROECONOMICS 40 MARKS — 30 MINUTES 21 Answer the following questions. td Give any TWO examples of demerit goods. (2x 1) (2) 242 Why is the demand curve relatively inelastic for firms in the monopoly market? (1x2) (2) 22 Study the extract below and answer the questions that follow. MONOPOLISTIC COMPETITION: SA QUICK-SERVICE CHICKEN WARS The Market Research Foundation (MRF) has released data from its *Marketing All Products Survey* (MAPS), covering July 2020 to June 2024. In the quick-service chicken market, KFC leads with a 25% market share, followed by Chicken Licken with 10% and Hungry Lion with 7% of the overall quick-service market, which includes burger places. [Adapted from httos://geoscope-sa.com 2.2.1 Identify the dominant firm in the information above. (1) 2.2.2 Name any other competitor that is NOT included in the information above. (1) 2.2.3 Briefly describe the term hybrid market structure. (2) 2.2.4 Why do firms in a monopolistic market have incomplete market information? (2) 225 Which strategies: can Chicken Licken implement to improve its market share? (2x2) (4) Copyright reserved Please turn over

NC/Séptember 2025 2.3 Study the graph below and answer the questions that follow. Cost/Price MARKET FAILURE GOVERNMENT INTERVENTION — TAXATION Quantity 234 Identify the initial quantity produced as depicted in the graph above. 2.3.2 Name any ONE type of tax that the government implements to help with the redistribution of wealth. 28.8 Briefly describe the term producer subsidies. 2.3.4 Explain why black markets arise when the government implements maximum prices. 2.3.5 How is the media important for promoting positive externalities? (2 x 2) 2.4 Briefly discuss the immobility of factors of production as a reason for market failure. (4x2) 2.5 How does price fixing in an oligopolistic market affect the economy? (4x2) Copyright reserved Please turn over (1) (1) (2) (2) (8) (8) - [40]

NC/September 2025 QUESTION 3: CONTEMPORARY ECONOMIC ISSUES 40 MARKS - 30 MINUTES 3.1 Answer the following questions. 3.1.1 Name any TWO methods to measure inflation. (2x1) 3.1.2 Why are tourists attracted to areas where people practice indigenous knowledge? (1 x 2) 3:2 Study the information below and answer the questions that follow. CONSUMER INFLATION DATA FOR SOUTH AFRICA FROM 2023 TO 2025 Average December ¥ eae inflation rate | inflation rate any Commins ; Food 2023 6,0% 2,8% Transport Housing and utilities Miscellaneous goods and services Housing and utilities 2024 4,A% 3,0% Alcoholic beverages and tobacco Food and non-alcoholic beverages 2025 — 3,0% — ee ‘ : ousing and utilities (forecasted) | (forecasted) Transport In 2025, inflation is forecasted to average around 3,8%, with December expected to see a rate of 3,0%. The key contributors to inflation are expected to remain similar to previous years, with food, housing and utilities and transport being significant factors. [Adapted from httos-//iuw.statssa.gov.za 3.2.1 3.2.2 3.2.3 3.2.4 3.2.5 Copyright reserved Identify the trend of the average inflation rate in the extract above. Name any ONE beverage item that is included in the consumer inflation basket. Briefly describe the term administered prices. What potential impact could a decrease in the inflation rate have on consumers? Why do rising housing costs contribute heavily to the overall inflation? (2x2) Please turn over (2) (2) (1) (1) (2) (2) (4)

NC/September 2025 3.3 Study the cartoon below and answer the questions that follow. Just imagine the benefits for the country! [Adapted from canvas] 3.3.1 Identify the type of tourism depicted in the cartoon above. 3.3.2 Name any other animal, besides the elephant, that is part of South Africa's Big Five. 3.3.3 Briefly describe the term trarisit tourist. 3.3.4 How is marketing used to. distribute tourists effectively to many sites? 3.3.5 How do tourist arrivals help in alleviating poverty? (2 x 2) 3.4 Briefly discuss the effects of tourism on businesses and government. (2x4) 3.5 Evaluate the impact of high inflationary expectations on investors. (4x 2) Copyright reserved Please turn over (1) (1) (2) (2) (4) (8) (8) [40]

NC/September 2025 QUESTION 4: MICROECONOMICS & CONTEMPORARY ECONOMIC ISSUES 40 MARKS - 30 MINUTES 4.1 Answer the following questions. 4.44 Name any TWO types of inefficiencies. (2x1) (2) 4.1.2 Explain the relationship between an increase in productivity and cost-push inflation. (1x2) (2) 4.2 Study the extract below and answer the questions that follow. SOUTH AFRICAN RESERVE BANK (SARB) DROPS REPO RATE BY 25 BASIS-POINTS (BP) South Africans are starting the year positively with a 25 basis-point cut to the repo rate, reducing it from 7,75% to 7,50%, as announced by the SARB Governor on 30 January 2025 and the Monetary Policy Committee (MPC). This reduction is good news for those repaying home and vehicle loans, as it will slightly lower monthly instalments, easing the financial burden on households. This marks the third consecutive repo rate cut since the Covid-19 pandemic, indicating a shift towards a more accommodating monetary policy to support economic recovery. [Adapted from httos:/Awww.thesouthafrican.com] 4.21 Identify the new repo rate set by the South African Reserve Bank from the extract. : (1) é 4.2.2 Name the current inflation target range set by the South African Reserve Bank. (1) 4.2.3 Briefly describe the term cash reserve requirements. (2) 4.2.4 How will government spending projects be affected if there is an increase in demand-pull inflation? (2) 4.2.5 Why might a lower repo rate potentially stimulate economic recovery in South Africa? (2x2) (4) Copyright reserved Please turn over

4.3 4.4 4.5 NC/September 2025, Study the information below and answer the questions that follow. COST-BENEFIT ANALYSIS OF WATER RESOURCE DEVELOPMENT PROJECT Private costs R500 000 (Construction, Equipment, Labour, Maintenance) oo (increased revénue, - improved infrastructure,” “< Operational efficiency, ‘Market expansion): 4.3.1 Identify the category with the highest value from the table above. 4.3.2 Name the component in private costs that is most likely to require ongoing costs over the lifetime of a project. 4.3.3 Briefly describe the term cost-benefit analysis. 4.3.4 How can improved infrastructure lead to economic growth? 4.3.5 Calculate the overall cost-benefit ratio (CBR), considering both private and social categories. Show ALL calculations. Briefly discuss natural and artificial monopolies. (2x 4) Evaluate the environmental impact of tourism. (4x 2) TOTAL SECTION B: Copyright reserved Please turn over (1) (1) @ 4) i) (8) [40]

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 | 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 the introduction. * Do NOT repeat any part of the introduction in the body. e Avoid mentioning in the introduction what you are going to discuss in the body. Max. 2 Body Main part: Discuss in detail/Discuss in detail with the aid of graphs/In-depth discussion/Examine/Critically discuss/Analyse/Compare/Evaiuate/Distinguish/ Differentiate/Explain/Assess/Debate A maximum of 8 marks may be allocated for headings/examples. Additional part: Critically discuss/Evaluate/Critically evaiuate/Deduce/Compare/ Distinguish/Suggest/Interpre/Debate/How? A maximum of 2 marks may be allocated for the mere listing of facts. Max. 26 Max. 10 Conclusion Any higher-order conclusion should include: . ¢« A 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 Max. 2 TOTAL 40 QUESTION 5: MICROECONOMICS 40 MARKS - 40 MINUTES ¢ Discuss in detail the short-run equilibrium positions in a perfect market with the aid of three separate graphs (economic profit, economic loss and normal profit). e Why does the agricultural market often fail to meet the criteria/cond perfectly competitive market? QUESTION 6: CONTEMPORARY ECONOMIC ISSUES 40 MARKS — 40 « Discuss the FIVE major environmental problems and the international taken to solve these problems to ensure a sustainable environment. * What role can education play in promoting environmental sustainability? itions of a MINUTES measures TOTAL SECTION C: GRAND TOTAL: Copyright reserved (26) (10) [40] (26) (10) [40] 40 150

“Question 5 — Mark Allocation Guidelines** Each **graph** is awarded **4 marks™*, with a total of **12 marks*™ allocated for all graphs. If the learner **does not include the graphs**, the main written section should be marked out of **18 marks*. A**maximum of 6 marks** may be awarded for each **profit, loss, or normal profit explanation/discussion™. “Question 6 — Mark Allocation Guidelines** For **each environmental problem**, a **maximum of 6 marks** should be awarded under its respective heading. Learners must **include a solution, protocol, or measure** to address or resolve each environmental issue. If a learner **fails to provide a solution, protocol, or measure** under a specific heading, **2 marks must be deducted** from the 6 marks allocated for that section. - Accept the following environmental problems as valid responses: *“Pollution** — award marks only once, regardless of how many types of pollution are listed. ™Deforestation** **Soil Erosion** *“Other relevant issues If the learner discusses environmental problems **without mentioning any solutions, protocols, or measures**, a **maximum of 20 marks** may be awarded for the entire section.