Economics Grade 12 NSC June 2013 Question Paper

basic education Department: Basic Education REPUBLIC OF SOUTH AFRICA SENIOR CERTIFICATE EXAMINATION ECONOMICS HIGHER GRADE 2013 MARKS: 400 TIME: 3 hours ECONOMICS HG 4041E 40410E This question paper consists of 18 pages. X@5 wT connec AN A 0 0 pease um oe

Downloaded from hlayiso.com Economics/HG 2 DBE/2013 SCE INSTRUCTIONS AND INFORMATION Read the following instructions/information carefully before answering the questions. c 2. 10. Answer only SEVEN questions. This question paper consists of THREE sections, namely SECTION A, SECTION B and SECTION C. SECTION A: QUESTION 1 is COMPULSORY and must be answered by ALL the candidates in the ANSWER BOOK. SECTION B: Answer any FOUR questions from this section in the ANSWER BOOK. SECTION C: Answer any TWO questions from this section in the ANSWER BOOK. If you answer more than the required number of questions, only the required number of questions will be marked in the order in which they appear in the ANSWER BOOK. ALL work you do NOT want to be marked must be clearly crossed out. Use only black or blue ink. Answers in pencil will NOT be marked. Number the answers correctly according to the numbering system used in this question paper. Read the questions carefully and start the answer to each question on a NEW page. Leave 2 to 3 lines between subsections of questions. Answer the questions in full sentences and ensure that the format and content of your answers comply with the cognitive levels of the questions. Non-programmable calculators may be used. Write neatly and legibly. cor ead TTT ea

Economics/HG SECTION A Downloaded from hlayiso.com 3 SCE QUESTION 1 (COMPULSORY) 1.1 MULTIPLE-CHOICE QUESTIONS DBE/2013 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 number (1.1.1—1.1.20) in the ANSWER BOOK. NATIONAL INCOME 1.1.1 Copyright reserved The term ‘domestic expenditure’ ... A B Cc D includes expenditure on factors of production. includes expenditure by permanent residents. includes expenditure within the boundaries of a country. excludes the foreign sector. In South Africa the largest percentage of workers is employed by the ... sector. 0vuNOWDY agricultural manufacturing mining services If the GNI of a country is R100 000 million per annum and it has a population of 50 million, the GNI per capita is ... A B Cc D R2 000. R3 000. R6 000. R20 000. Households spend most of their disposable income on consumer goods. 0DQOWD>Y durable luxury non-durable semi-durable GAUTENG Please turn over (3) (3) (3) (3)

Downloaded from hlayiso.com Economics/HG 4 SCE PRICE FORMATION DBE/2013 1.1.5 When only a limited quantity of an article is required to satisfy a want, it is known as a/an ... want. A B Cc D unlimited limited intensity complementary limited 1.1.6 The satisfaction gained from one additional unit of goods is called ... Utility. A B Cc D total marginal diminishing increasing 77 An increase in demand will result in the demand curve shifting to ae A B Cc D right. left. bottom. origin. 1.1.8 The market price is a ... price. A B Cc D ECONOMIC 1.1.9 Economic development focuses on an increase in ... A B Cc D short-term medium-term long-term constant DEVELOPMENT, REGIONAL DEVELOPMENT AND URBANISATION production. sales. standard of living. the GDP. 1.1.10 Regional development refers to human, economic and physical development in specific ... vOWDD Copyright reserved countries. geographical areas in a country. coastal regions. provinces of a country. GAUTENG Please turn over (3) (3) (3) (3) (3)

Downloaded from hlayiso.com Economics/HG 5 DBE/2013 SCE 1.1.11 Most of the labour-intensive economic services are found in ... areas. A tural B _ industrial C developed Durban (3) 7 One example of a developed country is ... A Brazil. B_ Nigeria. C_ South Africa. D Australia. (3) INTERNATIONAL ECONOMICS 1.1.13 An advantage of import substitution is ... A __ inefficient local manufacturing. B_ implementation of restrictions. C_ the creation of job opportunities. D_ increased costs. (3) 1.1.14 The financial account of the balance of payments records international transactions of ... A goods and services. B gold. C_ service receipts. D portfolio investments. 1.1.15 A form of taxation that discourages imports is ... A customs duty. B company tax. C_ income tax. D transfer duty. (3) 1.1.16 An increase in the value of the rand relative to the British pound sterling may lead to ... the United Kingdom. lifting trade restrictions with a decrease in exports to an increase in exports to a decrease in imports from (3) DOWD Coheed LAC ULM ese mv

Downloaded from hlayiso.com Economics/HG 6 DBE/2013 SCE THE STATE 77 The state acts as an entrepreneur when certain goods and services require ... A a huge capital outlay. Ba huge profit. C huge markets. D- much work. (3) 1.1.18 The budget speech in Parliament is presented by the Minister of ... A Labour. B_ Economic Affairs. C_ Trade and Industry. D_ Finance. (3) 1.1.19 The financial year of the state is from ... A 1 January to 31 December. B 1 April to 31 March. C1 March to 28/29 February. D 1 July to 30 June. (3) 1.1.20 Tax avoidance refers to ... A _ illegal methods used by individuals to avoid paying tax. B legal methods used by individuals to reduce their tax burden. C_ illegal methods used to shift the incidence of tax. D_ legal methods used to shift the incidence of tax. (3) Corea TUT ee

Downloaded from hlayiso.com Economics/HG 7 DBE/2013 Se 1.2 Indicate whether the following statements are TRUE or FALSE. Write only ‘true’ or ‘false’ next to the question number (1.2.1-1.2.10) in the ANSWER BOOK. 1.2.1 There are three participants in an open economy. _ GDP(E) =C +I1-G+(X-M) 1.2.3 Wants and the satisfaction of wants is the motivation behind all economic activities. 1.2.4 The supply curve has a negative slope. 1.2.5 An essential element for economic growth and development in a country is the formation of capital. 1.2.6 One of the aims of the Spatial Development Programme is to create employment. 1.2.7 The value of all transactions in goods and services is recorded in the current account. 1.2.8 Incentives are measures offered to producers to encourage exports. 1.2.9 VAT is paid according to a progressive tax scale. 1.2.10 | A surplus in the state's revenue account occurs when expenditure exceeds revenue. Copyright reserved TCU UT iieaiaiihiial GAUTENG (2) (2) (2) (2) (2) (2) (2) (2) (2) (2)

Downloaded from hlayiso.com Economics/HG 8 DBE/2013 SCE 1.3 Give ONE word/term for each of the following descriptions by choosing a word/term from the list below. Write only the word/term next to the question number (1.3.1—1.3.10) in the ANSWER BOOK. Eskom; wage subsidies; real income; economic growth; wages; Sasol; productivity; economic development; monopoly; economic integration; PPI; nominal income; tax; profit; social integration ue Income expressed at prices of a certain base year (2) 1.3.2 Barriers restricting rivals from entering the market (2) 1.3.3 The increase in a country's capacity to produce more goods and services (2) 1.3.4 A closer economic liaison and co-operation between areas and countries (2) 1.3.5 A compulsory payment to the state by individuals and businesses (2) 1.3.6 The remuneration of employees (2) 1.3.7 The relationship between real output and real input (2) 1.3.8 A measure to combat unemployment (2) 1.3.9 A measurement of prices that is paid by producers (2) 1.3.10 The manufacturer of fuel from coal (2) TOTAL SECTION A: 100 Cohosaned LNT HTN) seve

Downloaded from hlayiso.com Economics/HG 9 DBE/2013 SCE SECTION B Answer any FOUR questions from this section in the ANSWER BOOK. QUESTION 2: NATIONAL INCOME 2.1 2.2 2.3 2.4 Choose the correct word from those given in brackets. Write only the word next to the question number (2.1.1—2.1.4) in the ANSWER BOOK. 2.1.1 Goods produced and still to be processed are called (final/ intermediate) goods. 2.1.2 The (GDP/GNP) is the total value of all final goods and services produced in a specified period by the permanent residents of a country. 2.1.3 A long-term shift in the contribution of the various sectors of the economy is known as (structural/social) change. 2.1.4 The study of the effects of inflation on the economy is referred to as (macro/micro)-economics. List THREE methods used to increase the national income. Study the diagram below and answer the questions that follow. MARKET FOR HOUSEHOLDS BUSINESS SECTOR CONSUMERS PRODUCERS Expenditure MARKET FOR _ Identify the labels A-F in the diagram above. (6 x 3) 2.3.2 Give the diagram above an appropriate heading. Explain how monetary reasons can lead to upswings and downswings in economic activity. Cony rosned LA 0 0 Pease tum ove (2) (2) (2) (6) (18) (2) (16) [50]

Economics/HG 10 DBE/2013 SCE QUESTION 3: PRICE FORMATION 3.1 Choose the correct word from those given in brackets. Write only the word next to the question number (3.1.1—3.1.4) in the ANSWER BOOK. 3.1.1 The sacrifice, in money terms, of one article in order to purchase another is called (price/opportunity) cost. 3.1.2 Suppliers are not prepared to sell their products at a price below the (reserve/market) price. 3.1.3 The marginal utility of (diamonds/food) will stay the same despite the quantity being used. 3.1.4 Goods that command a price are known as (economic/free) goods. Downloaded from hlayiso.com ae State any THREE characteristics of a monopoly. | Study the graph of the supply and demand of books below and answer the questions that follow. 4 D és PAN 2 1 x 2 1 ee) * ' ‘| SDa D 0 Qz2 Qi ( Q Quantity ae What was the initial equilibrium price? 3.3.2 What is the new equilibrium quantity? 3.3.3 As a result of increased television set sales, the demand for books has decreased. Which curve represents the new demand for books? Substantiate your answer by using the information in the diagram. 3.3.4 What will be the long-term effect on supply and price? 3.3.5 Define the term equilibrium price. 3.4 Explain relatively elastic and relatively inelastic demand curves. Use graphs to illustrate your answer. Copyright reserved CATION ON AOE Pease turn over GAUTENG (2) (2) (2) (2) (6) (3) (3) (6) (6) (16) [50]

Downloaded from hlayiso.com Economics/HG 11 DBE/2013 SCE QUESTION 4: ECONOMIC DEVELOPMENT, REGIONAL DEVELOPMENT AND URBANISATION 44 Choose the correct word from those given in brackets. Write only the word next to the question number (4.1.1-4.1.4) in the ANSWER BOOK. 4.1.1 (GEAR/RDP) is a macro-economic strategy of the state for economic development. (2) 4.1.2 The (DTI/IDT) is an institution involved in development strategies. (2) 4.1.3 The base theory states that all the economic growth in a region is determined by its (imports/exports). (2) 4.1.4 The creation of capital in a country requires a sacrifice in immediate (consumption/production). (2) 4.2 List any THREE development corridors within South Africa. (6) 4.3 Study the photograph below and answer the questions that follow. 4.3.1 Which sector of our economy is depicted in the photograph above? (3) 4.3.2 List any THREE characteristics of the sector mentioned in QUESTION 4.3.1. (9) 7 Name any TWO contributions that the sector above can make to the South African economy. (6) 4.3.4 Give an example of a typical business found in this sector. (2) 4.4 Discuss any FOUR disadvantages of urbanisation. (16) [50] Cony rosrved NN 0 1 0 0 Plate tum over

Downloaded from hlayiso.com Economics/HG 12 DBE/2013 SCE QUESTION 5: INTERNATIONAL ECONOMICS | 5.2 5.3 5.4 Choose the correct word(s) from those given in brackets. Write only the word(s) next to the question number (5.1.1—5.1.4) in the ANSWER BOOK. 5.1.1 The (balance of payments/budget) is the document in which all transactions concluded with foreigners are recorded. 5.1.2 A measure enforced by government to increase the exchange value of the country's monetary unit is known = as (revaluation/appreciation). 5.1.3 When previously imported goods are replaced with locally produced goods, it is known as import (promotion/substitution). 5.1.4 When goods are sold cheaper in a foreign country than in the country of origin, it is called (cost cutting/dumping). State any THREE differences between national trade and international trade. Study the graphs below and answer the questions that follow. Rand vs Dollar_| 22Jan2012 | Rand ws Euro_| = 22 Jan 2012 Rand Close R7.1200 7.70 : 7.50 7.30 7.10 6.88 : : i = Oct Nov _ Dec Jan Oct Nov Dec Sen Source: I-Net Bridge Source: Net Bridge_ 5.3.1 Between which months was the rand at its lowest against the euro? 5.3.2 Between which months was the rand at its highest against the dollar? cue Which ONE of the currencies was the most expensive in terms of the rand on 22 January 2012? 5.3.4 How many rands would a tourist from the USA receive for $1 000 on 22 January 2012? 5.3.5 What economic concept is used to describe the value of the rand versus the dollar? 5.3.6 In which market will the above transactions take place? 5.3.7 What does it means when the rand appreciates against the dollar? Explain any FOUR forms of economic integration. cor ead ON ACLU Pes me (2) (2) (2) (2) (6) (3) (3) (3) (3) (2) (3) (3) (16) [50]

Downloaded from hlayiso.com Economics/HG 13 DBE/2013 SCE QUESTION 6: THE STATE 6.1 Choose the correct word from those given in brackets. Write only the word next to the question number (6.1.1—6.1.4) in the ANSWER BOOK. 6.1.1 The aim of (monetary/fiscal) policy is to control the flow of money and credit. _ When the state takes over the ownership of private enterprises, it is known as (privatisation/nationalisation). 6.1.3 The second stage of the financial procedure in the drafting of the state budget is (execution/authorisation). 6.1.4 The most important type of (direct/indirect) taxation is income tax. 6.2 Name the THREE categories into which state expenditure can be classified. 6.3 Study the pie chart below and answer the questions that follow. EXPENDITURE BY STATE 2011/12 IN R BILLION OTHER EDUCATION 144.3 189.5 DEFENCE} 38.4 ~ PUBLIC SOCIAL ORDER AND 146.9 SAFETY 90.9 HEALTH 112.6 ECONOMIC AFFAIRS HOUSING 130.5 121.9 [Source: National Treasury, Budget 2012] 6.3.1 Calculate the total budgeted expenditure by the state. Show calculations. 6.3.2 Give ONE example of an item that would be included under social expenditure. 6.3.3 Which category gets the biggest cut of the state funds? 6.3.4 Which category gets the smallest portion of the state funds? 6.3.5 Define the term budget. 6.3.6 Which state department is responsible for the budget? 6.4 Discuss impartial and convenient as two requirements of a good tax system. Conran rose NAA 0 0 Please turn over (2) (2) (2) (2) (6) (6) (3) (3) (3) (3) (2) (16) [50]

Downloaded from hlayiso.com Economics/HG 14 DBE/2013 SCE QUESTION 7: (CHOICE MODULES) IMPORTANT SOUTH AFRICAN ECONOMIC TOPICS Choose any TWO of the following topics. Use clear headings to indicate the topics of your choice. 7.1 LABOUR RELATIONS 7.1.1 Choose the correct word from those given in brackets. Write only the word(s) next to the letter (a—b) in the ANSWER BOOK. (a) The labour force participation rate consists of people not older than (50/65) years. (2) (b) In South Africa there is a (shortage/oversupply) of highly skilled workers. (2) 7.1.2 Name any TWO factors that determine the supply of labour in South Africa. (4) 7.1.3 Study the photograph below and answer the questions that follow. f= We demand a 12% ‘ i wage increase (a) What labour action is depicted in the photograph above? (3) (b) How are wages determined in the formal non-agricultural sectors of South Africa? (3) (c) What does the abbreviation COSATU stand for? (3) 7.1.4 Explain the limitations of labour unions. (8) [25] AND/OR Conroe AAA Pesotum or

Downloaded from hlayiso.com Economics/HG 15 DBE/2013 SCE 7.2 PRODUCTIVITY AND UNEMPLOYMENT 7.2.1 Choose the correct word from those given in brackets. Write only the word next to the letter (a—b) in the ANSWER BOOK. (a) The basic source of improvement in real wages is a/an (increase/decrease) in labour productivity. (2) (b) One problem in measuring labour productivity is that it is (elastic/inelastic). (2) 7.2.2 State any TWO consequences of unemployment. (4) 7.2.3 Study the photograph below and answer the questions that follow. : [Source: Stats SA 2011 ] (a) Give an appropriate economic heading for the labour problem above. (3) (b) Give ONE solution for the problem depicted in the photograph above. (3) (c) What formula is used to measure labour productivity? (3) 7.2.4 Briefly discuss structural unemployment. (8) [25] AND/OR Conyntesened ANA A 0 0 Pesotum ove

Economics/HG Downloaded from hlayiso.com 16 DBE/2013 SCE 7.3 INFLATION 7.3.1 7.3.2 7.3.3 7.3.4 Copyright reserved Choose the correct word from those given in brackets. Write only the word next to the letter (a—b) in the ANSWER BOOK. (a) An increase in wages will cause (cost-push/demand-pull) inflation. (b) A condition in which unemployment and high rates of inflation occur at the same time is known as (hyperinflation/ stagflation). State any TWO characteristics of demand-pull inflation. Study the extract below and answer the questions that follow. PETROL PRICE MEANS 'NO RESPITE FOR CONSUMERS' The latest petrol price hike that came into effect on 2 November means that consumers will have to bite the bullet as ‘there'll be no respite’. ‘The petrol price hike this month will probably add on about point two percentage points directly to food inflation — but indirectly maybe a little more as it'll ripple through the entire consumer price basket.’ The latest petrol price hike had put inflation 'that much closer to the upper end of the South African Reserve Bank's (SARB) target range’. 'The petrol price hike means people have less money in their pockets and there will be some impact on consumer spending. This just adds to inflationary pressures in the economy which will mostly affect the poor.’ [Adapted from Business Week, 2 November 2012] (a) What is the immediate effect of an increase in the petrol price? (b) Who are most affected by the increase in the petrol price? (c) What is the current rate of the inflation target set by the government? Discuss the key aspects of the definition of inflation. AND/OR CAMINO A Pease turn over GAUTENG (2) (2) (4) (3) (3) (8) [25]

Downloaded from hlayiso.com Economics/HG 17 DBE/2013 SCE 74 STRATEGIC RESOURCES 7.4.1 Choose the correct word from those given in brackets. Write only the word next to the letter (a—b) in the ANSWER BOOK. (a) The Koeberg power station near Cape Town is a (nuclear/ coal-firing) power station. (2) (b) The largest single user of water in South Africa is (agriculture/mining). (2) 74.2 Name any TWO renewable energy sources that can be used to generate electricity. (4) 74.3 Study the extract below and answer the questions that follow. SAVE ENERGY Eskom's energy crisis pulls the plug on investment To save energy Eskom is to distribute five million energy-saving light bulbs in the province this month. It will also introduce insulator blankets for geysers and ripple relay switches to reduce the loss of heat in geysers. Government is also looking at incentives for people to buy solar heaters. [Source: Sunday Times, Business Times, 12 March 2006] (a) State any TWO governmental initiatives to save energy. (6) (b) What serious consequence will a power shortage have on the economy? (3) TAA Briefly discuss the importance of water conservation in the secondary sector of South Africa. (8) [25] TOTAL SECTION B: 200 Ci dtd FITC ALA A Prease tum over

Downloaded from hlayiso.com Economics/HG 18 DBE/2013 SCE SECTION C Answer any TWO questions from this section in the ANSWER BOOK. Essays must be well structured and presented in a systematic format. Responses should have an introduction, body and conclusion. QUESTION 8: NATIONAL INCOME Discuss the problems in determining national income figures. AND/OR QUESTION 9: PRICE FORMATION Explain the conditions for a perfect market. AND/OR QUESTION 10: ECONOMIC DEVELOPMENT, REGIONAL DEVELOPMENT AND URBANISATION Discuss the characteristics of developing countries. AND/OR QUESTION 11: INTERNATIONAL ECONOMICS Explain the causes of/reasons for international trade. TOTAL SECTION C: GRAND TOTAL: CN ti UMNO OU [50] [50] [50] [50] 100 400