Economics Grade 12 Paper 2 Limpopo June 2025 Question Paper

IX_TRAPrP OY Co FAAS SATE SeRouUuUCATICM CAPRICORN NORTH DISTRICT NATIONAL SENIOR CERTIFICATE GRADE 12 MARKS: 150 TIME: 1HR30 HRS This question paper consists of 13 pages. Copyright reserved Please tum over

Economics P2 Pre midyear exams 2 Capricom North District/May 2025 NSC INSTRUCTIONS AND INFORMATION 1. Answer FOUR questions as follows in the ANSWER BOOK: SECTION A: COMPULSORY SECTION B: Answer ONE of the two 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. Copy right reserved Please tum over

Economics P2 Pre midyear exams 3 Capricom North District/May 2025 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, for example 1.1.9 D. 1.1.1 In a perfect market, normal profit is also known as the ... point. A maximum B zero Cc break-even D minimum 1.1.2 A firm that has no control over prices, and adheres to market prices, is called a A price war. B price-taker. Cc price-maker. D monopoly. 1.1.3 The ... promotes and maintains competition in South Africa. A Competition Commission Competition Tribunal Competition Appeal Court Competition Act 00 DB 1.1.4 A market that consists of one seller of a unique product. A Monopoly B Oligopoly Cc Monopolistic competition D Duopoly Copy right reserved Please tum over

Economics P2 Pre midyear exams 4 Capricom North District/May 2025 NSC 1.1.5 The price set by the govemment that is above the market price. A Minimum wages B Maximum prices Cc Minimum prices D Subsidies 1.1.6 CBA is a method used to assess... A externalities. B public sector projects. Cc market failure. D private sector projects. 1.1.7 When perfectly competitive businesses are in the long-run equilibrium they maximise ... A profits. B marginal cost. Cc variable cost. D average cost. 1.1.8 A tax that the government imposes to discourage the consumption of demerit goods. A Customs duty B VAT Cc Personal income D Sin tax (8 x 2) (16) Copy right reserved Please tum over

Economics P2 Pre midyear exams 5 Capricom North DistricyMay 2025 NSC 1.2 Choose a description from COLUMN B that matches an itemin COLUMN A. Write only the letter (A—I) next to the question numbers (1.2.1 to 1.2.8) in the ANSWER BOOK, for example 1.2.9]. COLUMN A COLUMN B 1.2.1 Explicit cost A an institution that investigates restrictive 1.2.2 The business practices Competition Commission} B a group of producers who forma collective 1.2.3 Monopolistic Competition monopoly C goods that are beneficial to the society 1.2.4 Cartel . D refers to the extra amount of income gained 1.2.5 Private cost by selling one more unit of production 1.2.6 Black market E actual expenditure of businesses 1.2.7 Merit goods F a market structure in which there are many 1.2.8 Marginal revenue buyers and sellers G cost paid by the consumer when goods are purchased H an illegal market in which goods are bought and sold | the cost of a good or service which is paid by society (8 x 1) (8) 1.3. Give ONE termfor each 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 Products that are identical in style, design and quality 1.3.2. The amount of money received from the sales of a product 1.3.3 A situation where one firm fixes a price and others accept it as the market price 1.3.4 The period of production where all factors can change 1.3.5 It occurs when a business or economy does not produce products at the lowest possible cost 1.3.6 Grant or support given to business by government. (6 x 1)(6) TOTAL SECTION A: 30 Copy right reserved Please turn over

Economics P2 Pre midyear exams SECTION B NSC Capricom North District/May 2025 Answer any TWO of the three questions from this section in your ANSWER BOOK. QUESTION 2: MICROECONOMICS 2.1 Answer the following questions. 40 MARKS - 30 MINUTES 2.1.1 Name any TWO types of profit in a perfect market. (2 x 1)(2) 2.1.2. Why do firms make an economic loss in the short-run? (1 x 2)(2) 2.2 _ Study the graph below and answer the questions that follow. TOTAL COST AND TOTAL REVENUE CURVES:PERFECT COMPETITION + Tc g : L TR © x B 8 oO —A | > 0 20 40 50 Quantity/output Source: Own source 2.2.1 Identify a cost curve on the graph above. 2.2.2 Name ONE other approach for determining profit maximization. 2.2.3 Briefly describe the term break-even point. 2.2.4 Why is the firm above maximising profit when output produced is 40? 2.2.5 Why is the AR / MR /D curve of a perfectly competitive market horizontal? (2 x 2)(4) Copy right reserved (1) (1) (2) (2) Please tum over

Economics P2 Pre midyear exams 7 Capricom North District/May 2025 NSC 2.3 Study the information below and answer the questions that follow. DECLINE IN LARGE CHAIN STORES A decrease in space occupied by South African chain stores is noticeable, as these groups are reducing their services in shopping malls. As South Africa moves towards more digital channels (online shopping), established chain stores such as Shoprite, Checkers and Usave have downscaled their branches around the country. [Source: https:/Awww.news24.com/news 24] 2.3.1 Identify ONE non-price competition method that chain stores use to compete, from the extract above. (1) 2.3.2 Name the market structure associated with chain stores. (1) 2.3.3 Briefly describe the term collusion. (2) 2.3.4 Why would a monopolistic competitor not gain a larger market share if they decrease their prices? (2) 2.3.5 What negative consequences could the closing down of chain stores have on employees? (2 x 2)(4) 2.4 _ Briefly discuss direct control and imperfect markets as interventions by the state to correct market failures. (4 x 2)(8) 2.5 Analyse the effect of increased competition on the market. (4 x 2)(8) [40] Copy right reserved Please tum over

Economics P2 Pre midyear exams 8 Capricom North District/May 2025 NSC QUESTION 3: MICROECONOMICS 40 MARKS - 30 MINUTES 3.1 Answer the following questions. 3.1.1 Name any TWO features of public goods. (2x 1)(2) 3.1.2 How would the reducing of wealth and income gaps affect consumers positively? (2 x 1)(2) 3.2. Study the information below and answer the questions that follow. A COST -BENEFIT SCENARIO Below are the cost- It is difficult benefit analysis (CBA) for us as findings relating to govemment different projects for a to decide on specific community. which project to construct for this ALTERNATIVE | COSTS | BENEFITS community. (R mill) | (R mill) A-road R100 _| R50 B-park R150 __| R200 C-hospital R120 _| R200 D-airport R80__ | 100 Source: own source 3.2.1 Identify the sector that relies on Cost-Benefit-analysis to decide on which projects to undertake. (1) 3.2.2 Name any ONE example of social costs. (1) 3.2.3 Briefly describe the term externalities. (2) 3.2.4 Why is it important for government to make CBA before undertaking projects? (2) Copy right reserved Please tum over

Economics P2 Pre midyear exams 9 Capricom North District/May 2025 NSC 3.2.5 Calculate the Cost Benefit ratio of building an airport if the social costs are R80 and social benefits are R100. (4) 3.3. Study the extract below and answer the questions that follow. MARKET FAILURE In the country of Mali, the government will be able to build 1 800 schools if they spend all their resources on the production of school and 12 000 houses if they spend all their available resources on the production of houses. The need for houses and schools, however, is 16 000 and 13 000 respectively to optimally satisfy the needs of the people in the country. The roads in the country are also in a poor condition, but the govemment cannot prioritise this now, due to a shortage of funds. [Source: https:/www.econlib.org] 3.3.1 Identify the number of houses the market will provide if all resources were spent on houses. (1) 3.3.2 How many schools should the government provide to reach the socially optimum allocation? (1) 3.3.3 Briefly describe the term market failure. (2) 3.3.4 Why are markets reluctant to provide public goods such as roads? (2) 3.3.5 How can the government encourage positive externalities? (2 x 2)(4) 3.4 Briefly discuss non-price competition and market entry as characteristics of monopolistic competition. (4 x 2)(8) 3.5 Why are negative externalities considered a consequence of market failure (4 x 2) (8) [40] Copy right reserved Please tum over

Economics P2 Pre midyear exams 10 Capricom North DistricyMay 2025 NSC QUESTION 4: MICROECONOMICS 40 MARKS - 30 MINUTES 4.1Answer the following questions. 4.1.1 Name any TWO examples of explicit cost.(2 x 1)(2) 4.1.2. Why is the private sector reluctant to provide community goods? (2 x 1)(2) 4.2 Study the graph below and answer the questions that follow. t A o ¥ a P 4.2.1 \dentify the market price from the graph above. (1) 4.2.2. Which segment of the demand curve is elastic on the graph above? (1) 4.2.3 Briefly describe the term oligopoly. (2) 4.2.4 Why is the demand curve of an oligopoly kinked? (2) 4.2.5 How can the government correct allocative distortions caused by oligopolies? (2 x 2)(4) Copy right reserved Please turn over

Economics P2 Pre midyear exams 11 Capricom North Distric/May 2025 NSC 4.3. Study the extract below and answer the questions that follow. COMPETITION TRIBUNAL TRIAL BETWEEN NEW AFRICA TAX-FREE STORES VERSUS DAKAR (PTY) LTD In this matter, New Africa tax-free stores accuses Dakar Ltd of abuse of dominance due to its market power. The matter arose after Dakar stopped supplying inferior products to New Africa. Dakar alleged that the products supplied to New Africa on a duty-free basis had made its way into the South African duty-paid market, a form of illicit products trading known as ‘leakage’. Dakar is denyin g these claims. They are now asking the Tribunal for an order declaring that Dakar is abusing its dominance, in contravention of the Competition Act. [Adapted from https://www.comptrib.co.za] 4.3.1 Identify an institution that is responsible for investigating anti-competitive behaviour in the extract above. (1) 4.3.2 Which institution rules on the cases submitted by businesses that are not satisfied with the rulings made by the Competition Tribunal? (1) 4.3.3 Briefly describe the term implicit costs. (2) 4.3.4 Explain the way in which dominant businesses can abuse their market powers. (2) 4.3.5 How can small, medium and micro enterprises (S MME ) contribute to the goals of the competition policy? (2 x 2)(4) 44 _ Briefly discuss overt collusion and tacit collusion. (4 x 2)(8) 4.5 Examine the conditions under which perfect competition successfully operates. (4x 2)(8) [40] TOTAL SECTION B: 80 Copy right reserved Please turn over

Economics P2 Pre midyear exams 12 Capricom North DistricyMay 2025 NSC SECTION C Answer any ONE question of the TWO questions in the ANSWER BOOK. Your answer will be assessed as follows: STRUCTURE OF ESSAY MARK ALLOCATION Introduction Max. 2 The introduction is a lower-order response. * 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 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 Max. 26 discussion/Examine/Critically discuss/Compare/E valuate/ Distinguish/Differentiate/Explain/Assess/ Debate/Draw a graph and explain/Use the graph given and explain/ Complete the given graph A maximum of 8 marks may be allocated for headings/examples. Additional part Give own opinion/Critically discuss/ Evaluate/Critically evaluate/Deduce/Compare/ Distinguish/ Max. 10 Interpret/Briefly debate/How?/ Suggest/Annalise A maximum of 2 marks may be allocated for mere listing of facts Conclusion Max. 2 Any higher-order conclusion should include: + 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 - 40 MINUTES ¢ With the aid of graphs discuss in detail the various equilibrium positions under perfect market conditions. (26 marks) « Why are South African state monopolies unable to achieve economic profit? (10 Marks) [40] Copy right reserved Please turn over

Economics P2 Pre midyear exams 13 Capricom North Distric~May 2025 NSC QUESTION 6: MICROECONOMICS 40MARKS - 40 MINUTES * Discuss in detail state intervention as consequences of market failure with the aid of graphs under the following headings: v Producer Subsidies (8) ¥ Maximum prices (8) ¥ Minimum wages (10) (26 marks) ¢ With reference to the graph below, analyse how a negative externality result in the misallocation of resources. MSC Price MPC it Sa (eee eee | L I an oo es ere ! 1 | 1 | \ 1 ! \ MSB ' ' . > 0 100 150 Quantity [40] TOTAL SECTION C: 40 GRAND TOTAL: 150 Copy right reserved