Economics Grade 12 Paper 1 Limpopo June 2025 Question Paper

NATIONAL SENIOR CERTIFICATE GRADE 12 : EGONOMICSP1sit«™” F i MAY - JUNE 2025 : MARKS: 150 TIME: 1HR30 HRS This question paper consists of 10 pages. Copyright reserved Please tum over

NSC Ss ECTion A (COMPULSoRy) QUESTion 1 30 MARKS - 20 MINUTES 1 Bs Various Options are Provided as possible answers to the following questions. Choose © answer and write onl y the letter (A-D) next to the question numbers (1.1.1 to '18)in the ANSWER BOOK eg 1+'6 5 ‘OW model of a/an , 'gn sector. TA: the Circular fl ©xcludes fore; mixed Open - Closed - traditional -, economy shows the functioning of an economy that oom> at ok: - The Phillip curve is a graphical representation of the inverse relationship between ... tax rate and tax revenue €conomic growth an demand and supply inflation and unemployment Mss -.- fule states the loans received are used to finance capital expenditures. eficit borrowing credit debt id economic development FOM>S DOM>N Pre ou » - When a country can countries is called ... . absolute advantage - comparative advantage . terms of trade . free trade Produce goods and services more efficiently cheaper than other . Non-rivalry and non-excludability are the features of ... goods. consumer private normal . public . The purchase or selling of equities (usually ordinary shares) is known as ... investments. portfolio other direct future VOB>F BD DOMPFH DOWD Pease turn over Copyright reserved

Confidential Information - This is for official consumption Economics/P1 4 LimpopoDoE/June 2025 NSC 1.1.7. An increase in the production capacity of the country over a specific period of time is Called ... A. economic development B. spatial development C. economic growth D. developmental economics 1.1.8. The price of one country's currency in relation to another country's currency is called -+. fate A. market B. exchange C. interest D. nominal (8x2) (16) 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. [40 COLUMNA COLUMN B 1.2.1. Derived consumption A. income and expenditure between 1.2.2. Exogenous approach 1.2.3. Privatisation market system such as education. 1.2.4. Residual item C. independent factor that influences business cycles and originate within the 1.2.5. Money flow economy. 1.2.6. New economic paradigm D. a form of credit from international monetary fund (IMF) which can be used 1.2.7. Merit goods when balance of payments difficulties is experienced. 1.2.8. Special Drawing Rights participants in the economy. B. goods that are under-supplied in the E. spending that is dependent on the level of income. F. caters for omissions and errors that may occur. G. the transfer of ownership of business from the public sector to the private sector. H. it is embedded on the demand-side and supply-side policies. |. factors that affect the economy are outside the market system. (8X1) (8) Copyright reserved Pease turn over

Confidential Information - This is for official consumption 5 LimpopoDoE/June 2025 NSC Economics/P1 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 portion of an increase in income that a person or households is likely to spend on consumption, 1.3.2. The removal of laws, regulations and by-laws by the government. 1.3.3. A form financial assistance that the government provides to another entity, usually a business or industry. 1.3.4. An exchange rate system where the price of a country's currency is determined by the market forces. 1.3.5. The production of goods in large quantities which may reduce average cost of production. 1.3.6. A document showing anticipated revenue and estimated expenditure for a specific period. (6X1) (6) TOTALSECTION A: 30 Copyright reserved Pease turn over

6 LimpopoDoE/June 2uz5 Economics/P1 ‘ie SECTION B . Answer any TWO of these three questions in this section in the ANSWER BOOK. ~ INUTES QUESTION 2: MACOECONOMICS 40 MARKS - 30 M 2.1. Answer the following questions. 2.1.1. Name any TWO turning points of a business cycle. (2x1) (2) 2.1.2. Why is the value of multiplier in two-sector model higher than of a four-sector model? (1x2) (2) 2.2. Study the table below and answer the questions that follow. | NATIONAL ACCOUNTS AGGREGATES — SOUTH AFRICA SUMMARY OF GROSS DOMESTIC PRODUCT R million (AT CURRENT PRICES) 2023 Compensation of employees 3179 4p9 Net operating surplus 2043 7114 Consumption of fixed capital 952 449 Gross Value added at factor cost 6 175 572 Other taxes on production 148 361 Other subsidies on production 13 1)4 Gross value added at basic prices 6 175 572 | Taxes on products 730 5)6 Subsidies on products 17 381 Gross domestic product at market prices (A) [Source: Quarterly Bulletin SARB, June 2023) 2.2.1 Identify the concept that indicates the use of nominal GDP to calculate figures above? (1) 2.2.1. Which method of calculating GDP is used in the table above? (1) 2.2.2. Briefly describe the term gross national product. (2) 2.2.3. How is gross domestic product converted to gross national product?(2) 2.2.4. o_o the gross domestic product at market prices (A). Show ALL calculations. Copyright reserved Pease turn over

Economics/P1 2.3. Confidential Information - This is for official consumption 7 LimpopoDoE/June 2025 NSC Study the information below and answer the questions that follow. SA’s current account deficit narrow as gold exports surge. In the third quarter of 2024, the South Africa's current account balance improved, with a narrowing trade surplus and a smaller deficit on services, income and current transfers. However, net gold exports decreased by 7.8% in the third quarter down from 34% increase in the third quarter. The decrease was mainly due to a decline in the export volume, even though the price of gold increased by 13.3%. [Source: BusinessDay, 05 September 2024] 2.3.1. 2.3.2. 2.3.3. 2.3.4. 2.3.5. 2.4. 2.5. Identify the item that records transactions related to the gift, pension and taxes in the information above? (1) Give ONE example of primary income in the current account. (1) Briefly describe the term trade balance. (2) Why is it important for a country to have a surplus trade balance? (2) How can the government reduce deficit on the balance of payments? (2x2) (4) Discuss climatic conditions and labour resources as the supply reasons for international trade, (2x4) (8) Evaluate the success of the South African government in achieving its macroeconomic objectives? (8) [40] Pease turn over Copyright reserved

Economics/P1 NSC 40 MARKS — 30 MINUTES QUESTION 3: MACOECONOMICS Answer the following questions. 3.1. 3.1.1. Give any TW 0 examples of non-durable goods. (2x1) (2) siness cycle. (1x2) (2) he depression phase of the bu ions that follow. 3.1.2. Why is inflation rate low during t ion below and answer the questi 5 - 2024 3.2. Study the informati Tax rate change BOO COO Pod zoo Coo 600 90° 500 00° Ss = a aco COO = 300 00° 200 CC° 200 COO = 2019720 - 2,o2is77 2vo22s23 aw 2O23/74 -< 2024/25 “While Budget 2024 has avo! R15bn, tax rates are being directly incre: Personal Income Tax brackets”. s in search of an extra ided directly increasing tax rate a . ased by not making inflationary adjustment in A key announcement was that VAT tax rate will not be increased in 2024/25, as Budget Policy Statement (MTBPS) 2023, to previously signalled by the Medium-Term generate an extra R12bn needed in revenue. [Source: National Treasury data compiled by the PB s the biggest source of government revenue O, September 2024, Identify the form of taxation that provide: 3.2.1. in the information above. (1) 3.2.2. Name ONE item exempted from VAT in South Africa. (1) 3.2.3. Briefly describe the term medium term expenditure framework. (2) 3.2.4. Why are certain goods and services exempted from VAT in South Africa? (2) | 3.2.5. Howwill an increase in VAT benefit the South African economy? (2x2) (4) ‘opyright reserved Pease turn over

NOU 3.3. Study the extract below and answer the questions that follow. South African economy weakens in the third quarter. According to the recent data from Statistics South Africa, the South African economy experienced a slight contraction in the third quarter of 2024, with real GDP decreasing by 0.3%. The key factors contributing to the slowdown included a decline in agricultural Sector, along with weaker performance in transport, trade, and government services. {Adapted from Economic wrap up, June 2024] 3.3.1. Identify the sector that contributed most to the decline of the real GDP in the third quarter of 2024 in the extract above. (1) 3.3.2. Name the phase on the contraction period related to the decline in a country's real GDP for at least two consecutive quarters. (1) 3.3.3. Briefly describe the term gross domestic product. (2) 3.3.4. What impact will a decline in the real GDP have on the economy? (2) 3.3.5. How can the South African Reserve Bank curb (manage) economic activities during expansion period? (2x2) (4) 3.4. Discuss efficiency and assessing the needs as the factors contributing to the poor public sector provisioning. (2x4) (8) 3.5. Analyse the impact of devaluation of the rand on the South African economy? Cal Copyright reserved Pease turn over

ew peeuLuUIE £UZ0 NSC QUESTION 4: MACOECONOmICcS 4.1. 40 MARKS — 30 MINUTES Answer the following questions. 4.1.1. Name any TWO types of exchange rate systems. (2x1) (2) 4.1.2. What effect will increase in Subsidies have on the Production. (1x2) (2) 4.2. Study the extract below and answer the questions that follow. NERSA’s 12.7% electricity increase Sparks community outrage There have been mixed reactions from the taxpayers following the National Energy Regulator of South Africa (Nersa) approving a 12.7% increase in electricity tariffs for 2025/2026 financial year on Thursday. This tariffs increase will impact households from 1 April, and Municipal customers from 4 July this year. This comes on top of 18.65% increase implemented in July last year, [Source: Business Report, 2 February 2025] 4.2.1. Identify the organisation responsible for regulating electricity in South Africa. (1) 4.2.2. Name the state-owned enterprise that provides electricity in South Africa? (1) 4.2.3. Briefly describe the term Parastatals. (2) 4.2.4. What impact does load shedding have on the South African economy? (2) 4.2.5. How can the South African government address the electricity crises in South Africa? (2x2) (4) ver Copyright reserved Pease turn o'

LimpopoDoE/June 2025 Economics/P1 1 NSC 4.3. Study the graph below and answer the questions that follow. 80 60 40 South Africa's import prices and export prices 2019 - 2021 116.2 107.2 Jan-19 Jan-20 Jan-21 @ INDEX OF IMPORT PRICES @ INDEX OF EXPORT PRICES [Source: SARB Quarterly Bulletin, November 2024] 4.3.1. 4.3.2. 4.3.3. 4.3.4. 4.3.5. 4.4. 4.5. What is the trend indicated by the index of export prices in the graph above? (1) Which institution is responsible for publishing the data above? (1) Briefly describe the concept terms of trade. (2) How will the appreciation of rand affect the terms of trade? (2) Calculate terms of trade for Jan-21. Show ALL calculations. (4) With the aid of a correctly labelled graph, explain how an increase in the demand of South African exports will have on the value of rand. (8) How successful is the implementation of the South Africa's fiscal policy? (8) [40] TOTAL SECTION B: 80 Copyright reserved Pease turn over

SLUHUITICS/P 1 12 Lim PODoE/ J IMpo, E/June 2025 Answer any ONE of the two questions in this Section in the ANSWER BOOK. Your answer will be assessed as follow: MARK STRUCTURE OF ESSAY ALLOCATION Introduction The introduction is the lower order question: * Agood Starting point will be to define the main concept related to the question topic. DO NOT any part of the Question in your 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/Compare/Evaluate/Distinguish/Differentiate/Explain/ Assess/Debate A maximum of 8 marks may be allocated for mere listing headings/examples. Max: 2 Additional part: Critically discuss/Evaluate/Critically/Compare Max: 10 Evaluate/Deduce/Distinguish/Suggest/interpret/Debate/How A maximum of 2 marks may be allocated for mere listing of facts. Conclusion Any higher-order conclusion should include: Max: 2 © Abrief summary of what has been discussed without repeating facts already mentioned. Any opinion or value judgement on the facts discussed. e Additional support information to strengthen the discussion/analysis. * Acontradictory view point with motivation, if required. e Recommendations. TOTAL 40 QUESTION 5: MACROECONOMICS 40 MARKS - 40 MINUTES « Discuss in detail the markets within the FOUR-SECTOR model. (26) ¢ How can the government as a participant in an open economy contribute more positively to the economy? (10) QUESTION 6: MACROECONOMICS 40 MARKS ~ 40 MINUTES ¢ Discuss in detail the features underpinning forecasting of the business cycles. (26) ¢ Why is it important for country to promote an economic recovery in the business cycle? (10) [40] TOTAL SECTION C: 40 GRAND TOTAL: 150