# Economics Grade 12 NSC June 2014 Question Paper (English) > Grade 12 Economics question paper from the NSC June 2014 (English), 18 pages. Read online or get the free PDF download, memo linked when available. - Page: https://www.hlayiso.com/library/economics-hg-english-june-2014-qp/8bcadcef-8f35-45f4-835c-4414374628cb - Updated: 2026-09-27 - Subject: Economics - Grade: Grade 12 - Language: English - Document type: Question paper - Year: 2014 - Exam period: NSC June - Curriculum: CAPS - Pages: 18 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 2014 Question Paper (English)](https://www.hlayiso.com/library/economics-hg-english-june-2014-qp/8bcadcef-8f35-45f4-835c-4414374628cb) ## About this document Economics · Grade 12 · NSC June · 2014 · English. Question paper, 18 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 Downloaded from hlayiso.com SENIOR CERTIFICATE EXAMINATION ECONOMICS HIGHER GRADE 2014 MARKS: 400 TIME: 3 hours This question paper consists of 18 pages. 2 Copyright reserved Please turn over ### Page 2 Downloaded from hlayiso.com Economics/HG 2 DBE/2014 SCE INSTRUCTIONS AND INFORMATION Read the following instructions/information carefully before answering the questions. 1. Answer only SEVEN 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 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. 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. Read the questions carefully and start the answer to EACH question on a NEW page. 6. Leave two to three lines between subsections of questions. 7. Number the answers correctly according to the numbering system used in this question paper. 8. Answer the questions in full sentences. 9. Non-programmable pocket calculators may be used. 10. Write neatly and legibly. Copyright reserved Please turn over ### Page 3 Downloaded from hlayiso.com Economics/HG 3 DBE/2014 SCE SECTION A QUESTION 1 (COMPULSORY) 1.1 MULTIPLE-CHOICE QUESTIONS Four options are given 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 The services of voluntary workers such as home-based caregivers, lead to a/an … of national income. A overestimation B underestimation C revaluation D overvaluation (3) 1.1.2 Sustained economic growth is best realised through … A an increase in the population growth rate. B decreasing foreign investment. C technological development. D decreasing the labour force. (3) 1.1.3 One of the shortcomings of national income figures is … A nominal and real national income. B the method of calculation. C production in tertiary industries. D production in secondary industries. (3) 1.1.4 The instrument used to measure the prosperity levels of countries is known as the … A gross domestic product. B gross national product. C net national income. D per capita national income. (3) PRICE FORMATION 1.1.5 A drop in the price of butter will result in … A a decrease in the demand for butter. B an increase in the demand for margarine. C no change in the demand for butter. D an increase in the quantity demanded for butter. (3) Copyright reserved Please turn over ### Page 4 Downloaded from hlayiso.com Economics/HG 4 DBE/2014 SCE 1.1.6 A shift of the supply curve to the left indicates a/an … A increase in supply. B decrease in supply. C increase in the quantity demanded. D decrease in the quantity demanded. (3) 1.1.7 The market for finished goods and services is known as the … market. A consumer B factor C producer D capital (3) 1.1.8 The exchange value of goods and services is measured in terms of its … A cost of production. B utilitarian value. C ability to satisfy wants. D price. (3) ECONOMIC AND REGIONAL DEVELOPMENT AND URBANISATION 1.1.9 An example of an informal trader is a/an … A non-governmental organisation. B mail-order representative. C insurance agent. D hawker. (3) 1.1.10 An objective of South Africa's SDIs is to … A attract infrastructure to rural areas. B attract investments to urban areas. C accelerate the depopulation of rural areas. D assist the centralisation of cities. (3) 1.1.11 An improvement in the general standard of living of people is known as economic … A reform. B recession. C growth. D development. (3) Copyright reserved Please turn over ### Page 5 Downloaded from hlayiso.com Economics/HG 5 DBE/2014 SCE 1.1.12 Developing economies are characterised by … A high levels of productivity. B dependency on agriculture. C mechanisation and automation. D sufficient housing. (3) INTERNATIONAL ECONOMICS 1.1.13 Due to unsuitable climatic conditions, South Africa is compelled to import … A sugar. B mangos. C coffee. D citrus fruit. (3) 1.1.14 The demand for foreign exchange is determined by … A importing goods. B exporting goods. C raising new loans in foreign countries. D inflow of foreign capital. (3) 1.1.15 Should the value of the rand weaken against other currencies, then the … A volume of imports will decrease. B volume of imports will increase. C volume of exports will decrease. D local standard of living will decline. (3) 1.1.16 Cash allowances that are paid to exporters to encourage them to increase their export of goods and services are known as … A export deposits. B export subsidies. C loans. D donations. (3) THE STATE 1.1.17 Government's policy of adjusting tax scales to regulate the aggregate money supply, is referred to as … policy. A public B fiscal C monetary D economic (3) Copyright reserved Please turn over ### Page 6 Downloaded from hlayiso.com Economics/HG 6 DBE/2014 SCE 1.1.18 The state acts as an entrepreneur where … A it is easy to get access to the markets. B the state can increase its revenue. C the state has the power to impose prices. D essential services are undervalued by the private sector. (3) 1.1.19 The … budget makes provision for unforeseen circumstances. A additional B surplus C partial D supplementary (3) 1.1.20 In a … tax system, the low-income earner pays a higher rate than the high-income earner. A progressive B proportional C regressive D comparative (3) 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 The circular flow of begins in the household sector. (2) 1.2.2 South Africa's national income figures are absolutely accurate. (2) 1.2.3 The functional development of markets depends on the nature of the business conducted. (2) 1.2.4 Free goods, such as air, are subject to human control. (2) 1.2.5 The Reconstruction and Development Programme will assist with provisioning of housing for all citizens of South Africa. (2) 1.2.6 Urbanisation is the movement of people from rural to urban areas. (2) 1.2.7 Import quotas are applied through the issuing of permits. (2) 1.2.8 The balance of payments is a systematic record of all transactions of one country with the rest of the world. (2) Copyright reserved Please turn over ### Page 7 Downloaded from hlayiso.com Economics/HG 7 DBE/2014 SCE 1.2.9 Sanitation and refuse removal are classified as community services. (2) 1.2.10 A surplus in the state's revenue account occurs when expenditure exceeds revenue. (2) 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. GEAR; devaluation; responsibility; solar; profit; real income; mechanisation; inflation; unemployment; double counting; employment; wages; interest; planning; revaluation; New Development Plan 1.3.1 The inclusion of the value of intermediate goods during the calculation of national income (2) 1.3.2 Income expressed at prices of a certain base year (2) 1.3.3 South Africa's most recent development strategy that was introduced during the 2013 annual budget speech (2) 1.3.4 A reduction in the value of a country's currency due to government intervention (2) 1.3.5 The first stage of the financial procedure of the national (main) budget (2) 1.3.6 Machines do work that was previously done by people (2) 1.3.7 Conditions where workers who want to work cannot find jobs at current wage rates (2) 1.3.8 A constant increase in the general price level (2) 1.3.9 The price of labour on the labour market (2) 1.3.10 A renewable energy source in South Africa (2) TOTAL SECTION A: 100 Copyright reserved Please turn over ### Page 8 Downloaded from hlayiso.com Economics/HG 8 DBE/2014 SCE SECTION B Answer any FOUR questions from this section in the ANSWER BOOK. QUESTION 2: NATIONAL INCOME 2.1 Choose the correct word(s) in brackets. Write only the word(s) 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 (factor market/circular flow). (2) 2.1.2 Undeclared income will (under/over)-estimate national income. (2) 2.1.3 Consumers spend most of their income on (semi/non)-durable consumer goods. (2) 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 the gross (domestic/national) product. (2) 2.2 State any THREE limitations of national income figures. (6) 2.3 Study the table below and answer the questions that follow. GROSS VALUE ADDED BY KIND OF R Millions (2012) ECONOMIC ACTIVITY At constant At current prices prices Agriculture, forestry and fishing 37 960 82 455 Transport, storage and communication 164 442 238 164 Manufacturing 276 470 372 706 Community, social and personal 355 095 661 028 services Mining and quarrying 96 829 245 261 Construction (contractors) 58 780 146 966 Wholesale and retail trade, catering and 213 881 432 376 accommodation Electricity, gas and water 36 186 87 492 Financial intermediation, insurance, real 384 210 589 296 estate and business services Gross value added (2.2.3) 2 855 744 [Source: SARB Quarterly Bulletin, September 2012] 2.3.1 Why are constant prices always lower than current prices? (3) 2.3.2 Which economic activity contributed the most towards the tertiary sector at constant prices? (3) Copyright reserved Please turn over ### Page 9 Downloaded from hlayiso.com Economics/HG 9 DBE/2014 SCE 2.3.3 Calculate the gross value added at constant prices. (3) 2.3.4 Calculate the contributions of the secondary and tertiary sectors respectively to the gross value added at current prices. Show ALL 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] QUESTION 3: PRICE FORMATION 3.1 Choose the correct word(s) in brackets. Write only the word(s) next to the question number (3.1.1–3.1.4) in the ANSWER BOOK. 3.1.1 A factor that determines how consumers spend their income is (marginal utility/cost of production). (2) 3.1.2 A normal supply curve has a (positive/negative) slope. (2) 3.1.3 A perfectly elastic demand curve runs parallel to the (price/ quantity) axis. (2) 3.1.4 If the price of a specific good increases it will causes a increase in the quantity (supplied/demanded). (2) 3.2 State any THREE characteristics of a monopoly. (6) 3.3 Study the graph below and answer the questions that follow. CONSUMER SURPLUS FOR POTATO CHIPS D E NOTE: This consumer is willing to pay OE, but pays only OA. R C G Price S P A B D 0 H F Quantity Copyright reserved Please turn over ### Page 10 Downloaded from hlayiso.com Economics/HG 10 DBE/2014 SCE 3.3.1 Explain the term consumer surplus. (3) 3.3.2 Which area on the graph on the previous page represents (3) consumer surplus? 3.3.3 Which area of the graph represents the consumer's total satisfaction? (3) 3.3.4 Which area will represent the consumer surplus if the consumer decided that he is willing to pay only OG, but still paid OA? (3) 3.3.5 Explain the position of the marginal consumer. (6) 3.3.6 Is consumer surplus subjective? Answer YES or NO. (2) 3.4 Discuss any FOUR reasons why markets are of economic importance. (16) [50] QUESTION 4: ECONOMIC AND REGIONAL DEVELOPMENT AND URBANISATION 4.1 Choose the correct word(s) 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/industrialised) countries. (2) 4.1.2 The second economy is generally referred to as the (house- hold/informal) sector. (2) 4.1.3 A macroeconomic strategy of the state to promote economic growth is the (GEAR/RDP). (2) 4.1.4 An institution involved in development strategies is the (Department of Trade and Industry/Independent Development Trust). (2) 4.2 List any THREE development corridors within South Africa. (6) Copyright reserved Please turn over ### Page 11 Downloaded from hlayiso.com Economics/HG 11 DBE/2014 SCE 4.3 Read the extract below and answer the questions that follow. Despite a slight increase in economic growth during the first quarter of the year, another 14 000 jobs were lost compared to the fourth quarter of 2011. According to statistics released by Statsistics 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 number – which includes those people no longer seeking work – looks even worse. This rose 1,1 percentage points to 36,5%, with some provinces like Mpumalanga showing that 42,5% of the labour force was without jobs. Economist, Mike Schüssler, 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 Schüssler, 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. [Source: Stats SA, 2012] 4.3.1 Which institution mentioned in the extract publishes economic data? (2) 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) 4.3.5 Which sector in the South African economy is the biggest job creator, according to the extract? Motivate your answer. (4) 4.3.6 Define the term economically active population. (2) 4.4 Discuss any FOUR disadvantages of urbanisation. (16) [50] Copyright reserved Please turn over ### Page 12 Downloaded from hlayiso.com Economics/HG 12 DBE/2014 SCE QUESTION 5: INTERNATIONAL ECONOMICS 5.1 Choose the correct word(s) 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 that amounts to a certain percentage of the value of imported goods is known as a (specific/ad valorem) tariff. (2) 5.1.2 An increase in the value of a country's currency due to market forces is known as (revaluation/appreciation). (2) 5.1.3 The DBSA finances economic development in (South Africa/Southern Africa). (2) 5.1.4 The price of one country's currency in terms of that of another country is known as the (exchange/repo) rate. (2) 5.2 State any THREE differences between national and international trade. (6) 5.3 Study the graph below and answer the questions that follow: Price of dollar in S D1 terms of rand D P1 F P E D1 S D 0 Q Q1 Quantity of dollars 5.3.1 Which point on the graph indicates the new equilibrium rate of exchange? (3) 5.3.2 How many dollars will be demanded and supplied at the new price? (3) 5.3.3 What does the shift in the demand curve from DD to D1D1 indicate? (3) 5.3.4 What will happen to the price of dollars in terms of the rand if the USA increases the supply of dollars? (3) Copyright reserved Please turn over ### Page 13 Downloaded from hlayiso.com Economics/HG 13 DBE/2014 SCE 5.3.5 Name TWO negative effects of a strong rand on the South African economy. (6) 5.3.6 Name the currency of Botswana. (2) 5.4 Explain natural resources and climatic conditions as causes of international trade. (16) [50] QUESTION 6: THE STATE 6.1 Choose the correct word(s) in brackets. Write only the word(s) 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 An income tax system can be regarded as fair if it is (progressive/ regressive). (2) 6.1.4 The transfer or sale of property from the public to the private sector is known as (nationalisation/privatisation). (2) 6.2 Name the THREE categories into which state expenditure can be classified. (6) 6.3 Study the bar graph below and answer the questions that follow: BUDGETED RSA GOVERNMENT EXPENDITURE FOR TWO YEARS 189,5 165,1 154,8 146,9 Percentage 130,9 130,5 121,9 112,6 102,1 93,2 [Source: SARB Quarterly Bulletin, September 2012] 6.3.1 Which was the largest category of government expenditure in 2011/12? (3) 6.3.2 Name TWO important expenditure items included in the category 'social spending'. (6) Copyright reserved Please turn over ### Page 14 Downloaded from hlayiso.com Economics/HG 14 DBE/2014 SCE 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 macroeconomic policy. (16) [50] 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(s) in brackets. Write only the word(s) next to the question number (7.1.1(a)–7.1.1.1(b)) in the ANSWER BOOK. (a) If the CCMA is unable to resolve a dispute, it 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) 7.1.2 State any TWO functions of labour unions. (4) 7.1.3 Study the extract below and answer the questions that follow. 'RECKLESS LABOUR REFORM' WARNING The labour minister has warned against 'reckless labour market reforms' and employers seeking reasons to dismiss workers. The minister said that the CCMA and bargaining councils had clung to rigorous and inflexible interpretations of what is a fair dismissal. [Source: Adapted Sunday Times Business Times, August 2012] (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) 7.1.4 Discuss the functions of the bargaining council. (8) AND/OR Copyright reserved Please turn over ### Page 15 Downloaded from hlayiso.com Economics/HG 15 DBE/2014 SCE 7.2 PRODUCTIVITY AND UNEMPLOYMENT 7.2.1 Choose the correct word in brackets. Write only the word next to the question number (7.2.1(a)–7.2.1(b)) in the ANSWER BOOK. (a) South Africa has an oversupply of (skilled/unskilled) labour. (2) (b) The best available instrument to measure national productivity is known as the (nominal/real) output per worker. (2) 7.2.2 State any TWO causes of unemployment in the formal agricultural sector. (4) 7.2.3 Study the table below and answer the questions that follow. THE IMPACT OF PRODUCTIVITY ON PROFITS After improved Before improved productivity productivity Selling price R40,00 Selling price R40,00 Cost price R24,00 Cost price R28,00 Profit R16,00 Profit R12,00 (a) State TWO advantages of improved productivity as depicted in the above table. (6) (b) State the formula that is used to measure productivity. (3) 7.2.4 Discuss the consequences of unemployment. (8) AND/OR 7.3 INFLATION 7.3.1 Choose the correct word(s) in brackets. Write only the word(s) next to the question number (7.3.1(a)–7.3.1(b)) in the ANSWER BOOK. (a) An increase in VAT will cause (cost-push/demand-pull) inflation. (2) (b) A condition under which economic contraction and inflation occur at the same time is known as (stagflation/deflation). (2) 7.3.2 State any TWO groups of people who are negatively affected by inflation. (4) Copyright reserved Please turn over ### Page 16 Downloaded from hlayiso.com Economics/HG 16 DBE/2014 SCE 7.3.3 Study the graph below and answer the questions that follow: CPI INFLATION 2007–2013 % 12 10 8 6 4 2 0 2007 2008 2009 2010 2011 2012 2013 [Source: SARB Quarterly Bulletin, March 2013] (a) Give ONE reason for the steady decline in the inflation rate between 2008 and 2010. (3) (b) What is the inflation target for South Africa? (3) (c) What does CPI refer to? (3) 7.3.4 Discuss the causes of cost-push inflation. (8) AND/OR 7.4 STRATEGIC RESOURCES 7.4.1 Choose the correct word in brackets. Write only the word next to the question number (7.4.1(a)–7.4.1(b)) in the ANSWER BOOK. (a) In South Africa, fuel is produced from coal by (PetroSA/SASOL). (2) (b) An economic activity, which is essential for the stability of the broad base of the economy, is known as a (strategic/ purposeful) economic activity. (2) 7.4.2 State any TWO initiatives with regard to renewable energy sources in South Africa. (4) Copyright reserved Please turn over ### Page 17 Downloaded from hlayiso.com Economics/HG 17 DBE/2014 SCE 7.4.3 Study the pie-chart below and answer the questions that follow. Number of households per source of water Piped Other Water dwelling 2% vendor 9% 1% Piped inside yard River/ 14% Stream 38% Community stand 18% Dam Fountain Borehole Rain water water water 3% tank 2% 8% 5% [Source: Department of Water Affairs] (a) Does the diagram reflect the water usage of a DEVELOPED or DEVELOPING country? Motivate your answer. (3) (b) Which source is the most dangerous for human health and can cause illnesses such as cholera? (3) (c) Name the government department responsible for the management of South Africa's scarce water resources. (3) 7.4.4 Explain the importance of water to primary sector industries in South Africa. (8) [50] TOTAL SECTION B: 200 Copyright reserved Please turn over ### Page 18 Downloaded from hlayiso.com Economics/HG 18 DBE/2014 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 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 Discuss the characteristics of developing countries. [50] AND/OR QUESTION 11: THE STATE Discuss the requirements of a good tax system. 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