# Economics Grade 12 NSC June 2012 Question Paper (English) > Grade 12 Economics question paper from the NSC June 2012 (English), 20 pages. Read online or get the free PDF download, memo linked when available. - Page: https://www.hlayiso.com/library/economics-hg-english-june-2012-qp/1348c740-b9d8-4f95-8cd6-12ba7225e20a - Updated: 2026-09-27 - Subject: Economics - Grade: Grade 12 - Language: English - Document type: Question paper - Year: 2012 - Exam period: NSC June - Curriculum: CAPS - Pages: 20 Breadcrumbs: [Home](https://www.hlayiso.com/) › [Library](https://www.hlayiso.com/library) › [Grade 12](https://www.hlayiso.com/library/grade-12) › [Economics](https://www.hlayiso.com/library/grade-12/economics) › [Economics Grade 12 NSC June 2012 Question Paper (English)](https://www.hlayiso.com/library/economics-hg-english-june-2012-qp/1348c740-b9d8-4f95-8cd6-12ba7225e20a) ## About this document Economics · Grade 12 · NSC June · 2012 · English. Question paper, 20 pages. Read online or download the PDF. Read it free online on the page above; download the PDF from there. ## Document text Text extracted from the PDF. Layout, diagrams and tables may not survive extraction. ### Page 1 basic education Department: Basic Education REPUBLIC OF SOUTH AFRICA SENIOR CERTIFICATE EXAMINATION ECONOMICS HIGHER GRADE 2012 MARKS: 400 TIME: 3 hours ECONOMICS HG 4041E 40410E This question paper consists of 20 pages. X05 | conrntresoned NAN A000 A Pease tum over ### Page 2 Downloaded from hlayiso.com 2 SCE Economics/HG DBE/2012 INSTRUCTIONS AND INFORMATION Read the instructions/information below carefully before answering the questions. 1. Answer only SEVEN of the 11 questions. 2. 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 in the ANSWER BOOK by ALL the candidates. 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. 3. 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. 4. Use only black or blue ink. Answers in pencil will NOT be marked. 5. Number the answers correctly according to the numbering system used in this question paper. 6. Read the questions carefully and start the answer to EACH question on a NEW page. 1 Leave TWO to THREE lines between subsections of questions. 8. Answer the questions in full sentences. 9. Non-programmable calculators may be used. 10. Write neatly and legibly. Cont resend LEAVIN, sr er ### Page 3 Economics/HG SECTION A Downloaded from hlayiso.com 3 SCE QUESTION 1 (COMPULSORY) 1.1 MULTIPLE-CHOICE QUESTIONS 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 To calculate the per capita income of a country, the ... has to be taken into account. A ___ nation's level of prosperity B average income of each sector C nation's standard of living D _ size of the population The payment of social grants to the poor is made by ... A __ households. B__ the business sector. C government. D __ the foreign sector. Compensation of employees is valued at... A factor cost. B basic prices. C market prices. D__ replacement cost. Economic growth is measured by an increase in the ... standard of living. GDP per capita. nominal GDP. real GDP. uouDP> GAUTENG Please turn over DBE/2012 (3) (3) (3) (3) ### Page 4 Downloaded from hlayiso.com Economics/HG DBE/2012 SCE PRICE FORMATION 1.1.5 A perfectly inelastic demand curve runs parallel to the ... A _ origin. B price axis. C quantity axis. D _ slope. 1.1.6 A decline in the income of consumers in the lower income group may cause an increase in the demand for ... A maize meal. Bred meat. C fish. D _ fur coats. 1.1.7 A vehicle and petrol are examples of ... goods. A complementary B_free C _ substitute D __ intermediate 1.1.8 If consumers were certain that the prices of cellphones would decrease in the future, then ... in the immediate term. A demand will increase B quantity sold will increase C demand will decrease D quantity purchased will increase ECONOMIC DEVELOPMENT, REGIONAL DEVELOPMENT AND URBANISATION 1.1.9 To meet the basic needs of people is one of the key principles of ... A _ the DBSA. B- GEAR. C the IDT. D- RDP. 1.1.10 Normally developing countries cannot process their natural resources because of ... a lack of skills and capital. scarcity of natural resources. over-exploitation of resources. time constraints. wok 1 Cari sed ATALANTA ess er (3) (3) (3) (3) (3) (3) ### Page 5 Downloaded from hlayiso.com 5 Economics/HG DBE/2012 SCE 1.1.11 The informal sector is often characterised by ... A _ high income. B _ scarcity of capital. C _ short working hours. D mass production. (3) 1.1.12 An example of a developed country is ... A _ Nigeria. B India. C Canada. D Brazil. (3) INTERNATIONAL TRADE 1.1.13 The main aim of export promotion is to ... A ___ discourage exports. B discourage imports. C encourage imports. D encourage exports. (3) 1.1.14 The current exchange rate in South Africa is determined by the ... A __ South African Reserve Bank. B quantity of gold linked to reserves. C _ supply and demand of international currencies. D World Bank. (3) 1.1.15 A geographical cause of international trade is ... A ___ immigration. B natural resources. C _ specialisation. D _ labour. (3) 1.1.16 The value of all transactions related to goods and services is recorded in the ... account of the balance of payments (BOP). financial capital transfer current official reserve (3) when P21 Conran resend LATA AU TAN e850 ve ### Page 6 Downloaded from hlayiso.com 6 Economics/HG DBE/2012 SCE THE STATE 1.1.17 The state acts as legislator to ensure that the ... A _ profits of private enterprises are maximised. B production processes function orderly. C duplication of business is avoided. D price mechanism is controlled. 1.1.18 The state revenue derived from issuing permits, licences or fines is known as ... A commercial income. B income from state property. C administrative income. D operating income. 1.1.19 The current VAT rate is ...%. A 10 B 14 Cc 12 D 25 1.1.20 New, urgent matters, which have NOT been provided for in the main budget, are provided for in the ... budget. A _ partial B complementary C supplementary D additional Copyright rsered N00 0 A Peasotum oor (3) (3) (3) (3) ### Page 7 Downloaded from hlayiso.com Economics/HG DBE/2012 SCE 1.2 Indicate whether the following statements are TRUE or FALSE. Write only the word ‘true’ or ‘false' next to the question number (1.2.1-1.2.10) in the ANSWER BOOK. 1.2.1 The business sector is the primary economic participant that owns all the factors of production. (2) 1.2.2 GDP at market prices equals gross value added plus indirect taxes plus subsidies. (2) ee Wants are unlimited, but have a limited intensity. (2) 1.2.4 The marginal utility curve has a negative slope. (2) 1.2.5 Economic integration is the effort to restrict the free movement of goods and services across the borders of a country. (2) 1.2.6 Mechanisation and automation of farming methods have created more employment in the agricultural sector. (2) 1.2.7 The Republic of South Africa's foreign reserves consist of gold and special drawing rights (SDRs) only. (2) 1.2.8 Revaluation is a deliberate measure taken by central banks. (2) 1.2.9 The removal of limitations which hamper business development is known as deregulation. (2) 1.2.10 The budget is used as an instrument of government's monetary policy. (2) Conon reser LO ANNONA 856 ver ### Page 8 Downloaded from hlayiso.com 8 SCE Economics/HG ve 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. DBE/2012 Labour Relations Act; developed economies; capital gains tax; spatial development initiative; inflation; PPI; national income; industrial development zone; dumping; portfolio investment; developing economies; economic growth 1.3.1 Remuneration of the four factors of production 1.3.2 Investments in the form of bonds and unit trusts 1.3.3 Is recognised by high levels of income and capital formation 1.3.4 The sale of goods in other countries at below cost 1.3.5 The process whereby the productive capacity of an economy increases over time 1.3.6 The principal aim of this legislation is the promotion of peaceful relationship between employers and employees 1.3.7 This tax is levied on the profit on the sale of assets 1.3.8 A measure of production inflation 1.3.9 A clearly demarcated area set aside for controlled processing of raw materials 1.3.10 Sustained increase in the general price level TOTAL SECTION A: Cant resend UTA AA) ter (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) 100 ### Page 9 Economics/HG Downloaded from hlayiso.com SECTION B Answer any FOUR questions from this section in the ANSWER BOOK. QUESTION 2: NATIONAL INCOME 9 SCE DBE/2012 2.1 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 The interdependence of all economic activities is shown in the economic (factor market/circular flow). ay Undeclared income will (under/over)-estimate the national income. 2.1.3 Consumers spend most of their income on (semi/non)-durable consumer goods. 2.1.4 The total value of all final goods and services produced by the permanent residents of a country in a given year, is known as gross (domestic/national) product. | List any THREE limitations of national income figures. 2.3 Study the information below and answer the questions that follow. GROSS VALUE ADDED BY KIND OF R MILLIONS (2010) ECONOMIC ACTIVITY AT AT CURRENT CONSTANT PRICES PRICES Agriculture, forestry and fishing 37 960 72 491 Transport, storage and communication 164 442 218 607 Manufacturing 276 470 335 412 Community, social and personal services 355 095 492 937 Mining and quarrying 96 829 211 422 Construction (contractors) 58 780 82 968 Wholesale and retail trade, catering and accommodation 213 881 313 616 Electricity, gas and water 36 186 53 907 Financial intermediation, insurance, real estate and business services 384 210 514 194 Gross value added | 2 295 554 [SARB Quarterly Bulletin — June 2010] 2.3.1 Why are constant prices always lower than current prices? 2.3.2 Which economic activity contributed the most towards the tertiary sector? 2.3.3 Calculate the gross value added at constant prices. Conyightresered NAA 4 UT Plas tn oer (2) (2) (2) (2) (6) (3) (3) (3) ### Page 10 Downloaded from hlayiso.com Economics/HG DBE/2012 SCE 2.3.4 Calculate the contributions of the secondary and tertiary sectors respectively to the gross value added at current prices. Show ALL the calculations. (9) 2.3.5 Name ONE industry (economic activity) that operates in the primary sector of the economy. (2) 2.4 Explain transfer payments and double counting as problems in determining national income. (16) [50] Copa ese LAAN INP ve ### Page 11 Economics/HG 11 DBE/2012 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 One of the factors that determines how people spend their income is (utility/value). 3.1.2 A normal supply curve has a (positive/negative) slope. 3.1.3 A perfectly elastic demand curve runs parallel to the (price/quantity) axis. 3.1.4 If demand decreases while all other factors remain constant, the Downloaded from hlayiso.com price will (increase/decrease). 3.2 List any THREE characteristics of a monopoly. 3.3 Study the graph depicting consumer surplus for potato chips below and answer the questions that follow. dap Di b (4 D a a g e f *~Q 3.3.1 Explain the term consumer surplus. 3.3.2 Which area on the above graph represents consumer surplus? 568 Which area on the graph indicates the total quantity of potato chips the consumer receives? 3.3.4 Which area of the graph represents the consumer's maximum utility? 3.3.5 Indicate the price that the consumer actually pays. 3.3.6 Indicate the price the consumer is willing to pay. 3.3.7 Is consumer surplus subjective? (Yes/No) 3.4 Discuss any FOUR reasons why markets are of economic importance. Copyright reserved FUTON AE Please turn over (2) (2) (2) (2) (6) (3) (3) (3) (3) (3) (3) (2) (16) [50] ### Page 12 Economics/HG 12 DBE/2012 Downloaded from hlayiso.com SCE QUESTION 4: ECONOMIC AND REGIONAL DEVELOPMENT AND 41 4.2 4.3 Comyirosned JANATA ALININ| se on URBANISATION 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 Poor countries of the world are known as (developing/backward) countries. 4.1.2 The 2™ economy is generally referred to as the (household/informal) sector. 4.1.3 The aim of South Africa's SDI programme is to attract infrastructure and business investment to (urban/rural) areas. 4.1.4 The process which is aimed at improving the general standard of living of the inhabitants of a country is known as economic (development/growth). List any THREE development corridors within South Africa. Read the article below and answer the questions that follow. Despite an economic uptick in the first quarter of the year, another 140 000 jobs were lost compared with the fourth quarter of 2010. According to statistics released by Stats SA on Tuesday, the official unemployment figure is now 25%, one percentage point up on the 24% for the fourth quarter of last year. The unofficial unemployment rate — which includes those people no longer seeking work — looks even worse. This increased by 1,1 per cent to 36,5%, with some provinces like Mpumalanga showing that 42,5% of the labour force were without jobs. Economist Mike Schissler said that during the Great Depression of the 1930s America had a 25% unemployment figure for only a few months. For South Africa to maintain these levels over more than a decade shows that we don't understand the problem, he said. Nedbank issued a statement saying that the figures were disappointing and emphasised the fragile nature of South Africa's economic recovery. Problems around electricity provisioning and infrastructure would erode job creation even further. According to Schissler, job creation is overwhelmingly driven by public-service hiring. In the first quarter of this year state-controlled companies and the public service had added some 158 000 jobs year on year. [Adapted from Statistics SA 2011] 4.3.1 What does economic uptick mean? (2) (2) (2) (2) (6) (2) ### Page 13 Downloaded from hlayiso.com 13 SCE Economics/HG DBE/2012 4.3.2 What is the relationship between the Great Depression and unemployment? (3) 4.3.3 Briefly elaborate on the problems that we experience around electricity provisioning. (3) 4.3.4 Suggest any TWO possible measures the state can take to combat unemployment. (6) 7 Which sector in the South African economy is the number one job creator according to the article? Motivate your answer. (4) 4.3.6 Define the term economically active population. (2) 44 Discuss any FOUR disadvantages of urbanisation. (16) [50] Cop seed AANA, 2s te ### Page 14 Economics/HG Downloaded from hlayiso.com 14 DBE/2012 SCE QUESTION 5: INTERNATIONAL ECONOMICS 7 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 A tariff, which amounts to a certain percentage of the value of imported goods, is known as a (specific/ad valorem) tariff. 5.1.2 A decrease in the value of a country's currency due to market forces, is known as (devaluation/depreciation). 5.1.3 The DBSA finances economic development in (South Africa/ Southern Africa). 5.1.4 The price of one country's currency in terms of that of another country, is known as the (exchange/repo) rate. ae List any THREE differences between national trade and international trade. 5.3 Study the graph below and answer the questions that follow. Price of dollars D, RS in terms of rand D Nw f x ' D, s i D c ' Q Qa Quantity of dollars 7 Which point on the graph indicates the new equilibrium rate of exchange? 5.3.2 How many dollars will be demanded and supplied at this price? 5.3.3 What does the shift in the demand curve from DD to D,D, indicate? 5.3.4 What will happen to the price of dollars in terms of rand if the USA increases the supply of dollars? 5.3.5 Name TWO negative effects of a strong rand on the South African economy. 5.3.6 Name the currency of Botswana. 5.4 Explain natural resources and climatic conditions as causes of international trade. Copyright reserved COMIC ANA OLE A eed (2) (2) (2) (2) (6) (3) (3) (3) (3) (6) (2) (16) [50] ### Page 15 Economics/HG Downloaded from hlayiso.com 15 DBE/2012 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 An advantage of (indirect/direct) taxation is that it has a relatively low collection cost. (2) 6.1.2 The main budget is tabled in parliament by the Minister of (Trade and Industry/Finance). (2) 6.1.3 A taxation system can be regarded as fair if it is (progressive/ popular). (2) 6.1.4 The transfer or sale of appropriate functions, activities or property from the public to the private sector is known as (nationalisation/ privatisation). (2) 6.2 Give any THREE reasons why the state acts as an entrepreneur. (6) 6.3 Study the bar graph below and answer the questions that follow. Budgeted Government Expenditure | 200 5 | 180 +4 | 160 7 140 +--] we |. - avionory Poe 02011/2012 60 + 40 5 | 20 +--~ Education Social Health Housing Economic Affairs — [Source: SARB Quarterly Bulletin, June 2010] 6.3.1 Which ONE is the largest functional category of government expenditure in 2011/2012? (3) 6.3.2 Name TWO important expenditure items included in the category ‘social spending’. (6) 6.3.3 What is the state's main source of income? (3) 6.3.4 What can be done to cover any deficit on the state's budget? (3) 6.3.5 Calculate the percentage change in expenditure on economic affairs over the two-year period. Show ALL calculations. (5) 6.4 Discuss the aims/objectives of the state's economic policy. (16) [50] Cony esoved NE 0 A Pease (um over ### Page 16 Economics/HG Downloaded from hlayiso.com SCE DBE/2012 QUESTION 7 (CHOICE MODULES) IMPORTANT SOUTH AFRICAN ECONOMIC TOPICS Choose any TWO of the following topics. Make use of clear headings to indicate the topics of your choice. 7.1 LABOUR RELATIONS 7.1.1 Choose the correct word(s) from those given in brackets. Write only the word(s) next to the question number (a—b) in the ANSWER BOOK. (a) If the CCMA is unable to resolve a dispute, the case is referred to the (Labour Court/Department of Labour). (2) (b) Giving opportunities to previously disadvantaged groups or individuals is known as (affirmative /useful) action. (2) State any TWO functions of labour unions. (4) Study the newspaper extract below and answer the questions that follow. The labour minister has warned against 'reckless labour market reforms' and employers seeking reasons to dismiss workers. He said that the CCMA and bargaining councils had clung to rigorous and inflexible interpretations of what is a fair dismissal. "RECKLESS LABOUR REFORM' WARNING [Adapted from Sunday Times, Business Times, 4 December 2005] 7.1.4 Copyright reserved (a) Why is there a call for labour market reforms? Give any TWO reasons. (6) (b) What is the most common dispute referred to the CCMA? (3) Discuss the functions of bargaining councils. (8) AND/OR UMUC AAAI ON AMO Please turn over GAUTENG ### Page 17 Economics/HG 7.2 7.2.1 7.2.2 7.2.3 Downloaded from hlayiso.com ute SCE DBE/2012 PRODUCTIVITY AND UNEMPLOYMENT Choose the correct word(s) from those given in brackets. Write only the word(s) next to the question number (a—b) in the ANSWER BOOK. (a) (b) South Africa has an oversupply of (skilled/unskilled) labour. (2) The best available instrument to measure national productivity is known as the (nominal/real) output per worker. (2) State any TWO causes of unemployment in the formal agricultural sector. (4) Study the table below and answer the questions that follow. AFTER IMPROVED PRODUCTIVITY BEFORE IMPROVED PRODUCTIVITY Selling price R40,00} Selling price R40,00 Cost price R24,00]} Cost price R28,00 Profit R16,00} Profit R12,00 7.2.4 Copyright reserved (a) State TWO advantages of improved productivity as depicted in the above table. (6) (3) (8) (b) Discuss the results of unemployment. State the formula that is used to measure productivity. AND/OR Please turn over GAUTENG ### Page 18 Downloaded from hlayiso.com DBE/2012 Economics/HG SCE INFLATION 7.3 Choose the correct word(s) from those given in brackets. Write only the word(s) next to the question number (a—b) in the ANSWER 7.3.1 BOOK. (a) The most important reason for the decline in the buying power of money is the (unemployment/inflation). (2) (b) A condition where high rates of unemployment and inflation occur at the same time is known as (stagflation/deflation). (2) Name any TWO groups of people who are negatively affected by inflation. 7.3.2 (4) Study the graph below and answer the questions that follow. 7.3.3 CP ay eB S bois Pee TE ee ee PA Ld Sp a Pe poe eee tel 4 eel ood pode ree: ee deaf e ea loee Pico anes be eee Be eee Bree) Gee tial ee en fer sto | ee | | : : ao = : fel cole ch ae ee > _ — . a oe negti ot peers) 1] | : oi a ee eBejyuso1ed Y, 2010 2009 2008 2007 Year [Source: SARB Quarterly Bulletin, June 2010] Give ONE reason for the steady decline in the inflation rate since 2008. (a) (3) (3) (3) (8) (b) What is the inflation target for the year 2011/2012? (c) What does CP! refer to? Discuss the causes of cost-push inflation. 7.3.4 AND/OR Please turn over GAUTENG Copyright reserved ### Page 19 Economics/HG Downloaded from hlayiso.com 19 DBE/2012 SCE 7.4 STRATEGIC RESOURCES 7.41 Choose the correct word(s) from those given in brackets. Write only the word(s) next to the question number (a—b) in the ANSWER BOOK. (a) In South Africa, fuel is produced from coal by (PetroSA/SASOL). (b) An economic activity, which is essential for survival and ensures the protection, promotion, expansion and stability of the broad base of the economy, is known as a (strategic/purposeful) economic activity. 74.2 Name TWO initiatives with regard to the utilisation of economically viable alternative, renewable energy sources in South Africa. 7.4.3 Study the pie diagram below and answer the questions that follow. { —-————— —r—rr—“—’”™—<“ Piped inside yard 14% River/ Stream 38% ee Community | stand | | 18% | D t / —~_ Borehole ree | Spring / \ Rainwater 3% . water \ tank 8% 5% [Source: Department of Water Affairs] (a) Does the diagram reflect the water usage of a developed or developing country? Motivate your response. (b) Which source is the most dangerous for human health and can cause illnesses such as cholera? (c) Name the government department responsible for the management of South Africa's scarce water resources. 7.44 Explain the importance of water to primary industries in South Africa. TOTAL SECTION B: Copyright resered NNO 0 Peasotum over (2) (2) (4) (3) (3) (3) (8) [50] 200 ### Page 20 Downloaded from hlayiso.com Economics/HG 20 DBE/2012 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 Upswings and downswings are regarded as essential features of the market economy. Discuss this statement by referring to the nature and causes of business cycles. [50] AND/OR QUESTION 9: PRICE FORMATION Discuss the factors that influence price elasticity of demand. [50] AND/OR QUESTION 10: ECONOMIC DEVELOPMENT, REGIONAL DEVELOPMENT AND URBANISATION A comparison between the developed countries and the developing countries indicates a development gap. Discuss the characteristics of developing countries with reference to the above statement. [50] AND/OR QUESTION 11: STATE Discuss the requirements of a good system of taxation. 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