Economics Grade 12 P1 Eastern Cape Prelim 2024 QP (Eng)

Downloaded from hlayiso.com NATIONAL SENIOR CERTIFICATE GRADE 12 SEPTEMBER 2024 ECONOMICS P1 MARKS: 150 TIME: 2 hours This question paper consists of 13 pages. Hosted by www.ecexams.co.za.

Downloaded from hlayiso.com 2 ECONOMICS P1 (EC/SEPTEMBER 2024) INSTRUCTIONS AND INFORMATION 1. Answer FOUR questions as follows in the ANSWER BOOK: SECTION A: COMPULSORY SECTION B: Answer TWO of the three 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. Copyright reserved Please turn over Hosted by www.ecexams.co.za.

Downloaded from hlayiso.com (EC/SEPTEMBER 2024) ECONOMICS P1 3 SECTION A (COMPULSORY) 30 MARKS – 20 MINUTES QUESTION 1 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 The portion of consumption that varies with disposable income is referred to as … consumption. A autonomous B productive C induced D direct 1.1.2 A business cycle obtained when the effects of irregular events are removed from time series data, is a(n) … business cycle. A actual B natural C leading D new 1.1.3 A sphere of government that delivers basic services to the people is the … government. A political B central C basic D local 1.1.4 The difference between the value of visible exports of goods and services and the value of visible imports is the … A balance of payment. B direct investment. C terms of trade. D trade balance. 1.1.5 A ban imposed on the import of certain goods from a particular country. A Quantity control B Physical control C Tariffs D Quotas Copyright reserved Please turn over Hosted by www.ecexams.co.za.

Downloaded from hlayiso.com 4 ECONOMICS P1 (EC/SEPTEMBER 2024) 1.1.6 A measure of the amount of money earned by an individual used to determine the standard of living of the population is known as … A per capita income. B nominal income. C wages. D growth income. 1.1.7 A platform created to aid the development of urgently needed skills to facilitate job creation. A Broad-Based Black Economic Empowerment B Critical Infrastructure Programme C Joint Initiative on Priority Skills Acquisition D Foreign Investment Grant 1.1.8 A measure of a change in the prices of goods produced locally as they leave the factory floor is the … A consumer price index. B producer price index. C weighted index. D inflation targeting. (8 x 2) (16) Copyright reserved Please turn over Hosted by www.ecexams.co.za.

Downloaded from hlayiso.com (EC/SEPTEMBER 2024) ECONOMICS P1 5 1.2 Choose a description from COLUMN B that matches an 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, for example 1.2.9 J. COLUMN A COLUMN B 1.2.1 System of national A transfer of functions and ownership of accounts private entities to the public sector 1.2.2 Reduction of costs B a nationwide government intervention to create employment using labour- intensive methods 1.2.3 Nationalisation C the well-being of people is determined by health, education and income 1.2.4 Special Drawing D a track of land that forms a Rights passageway developed as part of regional development 1.2.5 Deregulation E a set of international guidelines to provide information about economic analysis and formulation of macroeconomic policy 1.2.6 Expanded Public F the number of years a person may live Works Programme is based on the statistical average 1.2.7 Corridor G financing instruments distributed among member countries of the International Monetary Fund 1.2.8 Life expectancy H the removal of laws, regulations and by-laws by the government I the supply-side policy to smooth over fluctuations in the economy (8 x 1) (8) Copyright reserved Please turn over Hosted by www.ecexams.co.za.

Downloaded from hlayiso.com 6 ECONOMICS P1 (EC/SEPTEMBER 2024) 1.3 Give ONE term/word for each of the following descriptions. Write only the term/word 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 The total value of all goods and services produced by permanent residents of a country 1.3.2 The duration of a business cycle measured from trough to trough, or from peak to peak 1.3.3 An illustration of the theoretical relationship between tax rates and government revenue 1.3.4 A trade policy which involves the provision of incentives to encourage local producers to produce goods for export 1.3.5 The difference in economic development between developed and developing countries 1.3.6 Government programmes to encourage investment and job creation in areas with high growth potential (6 x 1) (6) TOTAL SECTION A: 30 Copyright reserved Please turn over Hosted by www.ecexams.co.za.

Downloaded from hlayiso.com (EC/SEPTEMBER 2024) ECONOMICS P1 7 SECTION B Answer any TWO of the three questions in this section in the ANSWER BOOK. QUESTION 2: MACROECONOMICS 40 MARKS – 30 MINUTES 2.1 Answer the following questions. 2.1.1 Name any TWO examples of indirect tax. (2 x 1) (2) 2.1.2 Why is it necessary to dampen an overheating economy (excessive growth)? (1 x 2) (2) 2.2 Study the graph below and answer the questions that follow. MULTIPLIER EFFECT [Adapted from Google images] 2.2.1 Identify a letter that represents money spent on capital goods from the graph above. (1) 2.2.2 Name the type of economy portrayed by the above graph. (1) 2.2.3 Briefly describe the term multiplier. (2) 2.2.4 Explain the negative effect of an increase in import expenditure on the size of the multiplier. (2) 2.2.5 Use the formula K =∆Y/∆J to calculate the value of the multiplier for the above scenario. Show ALL calculations. (4) Copyright reserved Please turn over Hosted by www.ecexams.co.za.

Downloaded from hlayiso.com 8 ECONOMICS P1 (EC/SEPTEMBER 2024) 2.3 Study the information below and answer the questions that follow. PUBLIC SECTOR FAILURE: IS GOVERNMENT WRECKING SOUTH AFRICA’S ECONOMY? A new report by the Centre for Development and Enterprise (CDE) argues that poor policy and bad governance are wrecking South Africa’s economic growth. The report has identified the following: • Inadequate energy supply is South Africa’s most critical constraint on growth – Maintaining Eskom’s monopoly has meant that its collapse through corruption, and incompetence has had catastrophic implications for the whole country. • The Zondo Commission found that the state paid over R57 billion on corruption-tainted contracts. • Transnet’s monopoly on poor port management and railway infrastructure explains why its services have declined, but costs have risen • Appointment of unsuitable people into key organisations has been the key common factor to decaying public infrastructure [Adapted from https://dailyinvestor.com/south-africa/19596. Accessed on 22 March 2024.] 2.3.1 Identify ONE parastatal from the extract above. (1) 2.3.2 Name a feature of public sector failure. (1) 2.3.3 Briefly describe the term public sector failure. (2) 2.3.4 Explain the impact of corruption on full employment as a macroeconomic objective. (2) 2.3.5 How can incompetence in state-owned enterprises affect service delivery? (4) 2.4 Briefly discuss the relationship between the financial sector and other participants in the circular-flow model. (8) 2.5 How can exogenous factors cause economic fluctuations (business cycles)? (8) [40] Copyright reserved Please turn over Hosted by www.ecexams.co.za.

Downloaded from hlayiso.com (EC/SEPTEMBER 2024) ECONOMICS P1 9 QUESTION 3: ECONOMIC PURSUITS 40 MARKS – 30 MINUTES 3.1 Answer the following questions. 3.1.1 Name any TWO forms of economic integration. (2 x 1) (2) 3.1.2 How can an economy increase its productivity? (1 x 2) (2) 3.2 Study the information below and answer the questions that follow. BRICS EXPANSION The 15th edition of the annual BRICS Summit held in South Africa in 2023 decided to expand the BRICS bloc and admit new members. Five countries, Saudi Arabia, Egypt, Ethiopia, Iran and the UAE are now full members of the BRICS trade protocol. [Adapted from livemint.com. Accessed on 5 April 2024.] 3.2.1 Identify ONE new member country to BRICS. (1) 3.2.2 Name the trade agreement (protocol) between the United States and sub-Saharan African countries. (1) 3.2.3 Briefly describe the term trade protocol. (2) 3.2.4 Explain a main objective of BRICS. (2) 3.2.5 How can free trade disadvantage economies? (4) Copyright reserved Please turn over Hosted by www.ecexams.co.za.

Downloaded from hlayiso.com 10 ECONOMICS P1 (EC/SEPTEMBER 2024) 3.3 Study the information below and answer the questions that follow. ECONOMIC INDICATORS INDICATORS LATEST VALUE REFERENCE MEASURE Inflation 5,6 12/2023 Percent CPI 114 02/2024 Index points Money supply 376 845 02/2024 ZAR million Unemployment rate 32,1 12/2023 percent Interest rate (repo) 8,25 02/2024 Percent Exchange rate 18,87 26/03/2024 US$/rand The International Monetary Fund (IMF) forecasts its global economic growth to increase to 3,1%. Despite the improved global outlook for 2024, South Africa’s growth performance remains crippled when compared with other countries. [Adapted from trading.com; statista.com & treasury.gov.za. Accessed on 5 April 2024.] 3.3.1 Identify an economic indicator that relates to foreign trade from the table above. (1) 3.3.2 Name ONE money supply indicator. (1) 3.3.3 Briefly describe the term unemployment rate. (2) 3.3.4 Explain the importance of measuring the performance of the economy. (2) 3.3.5 Examine the role of international institutions in the standardisation of a country’s indicators. (4) 3.4 Briefly discuss the benefits of import substitution. (8) 3.5 How can special economic zones (SEZs), contribute towards expanding the South African economy? (8) [40] Copyright reserved Please turn over Hosted by www.ecexams.co.za.

Downloaded from hlayiso.com (EC/SEPTEMBER 2024) ECONOMICS P1 11 QUESTION 4: MACROECONOMICS AND ECONOMIC PURSUITS 40 MARKS – 30 MINUTES 4.1 Answer the following questions. 4.1.1 Name any TWO examples of IDZs in South Africa. (2 x 1) (2) 4.1.2 How do price changes impact monetary flows in the circular flow? (2 x 1) (2) 4.2 Study the information below and answer the questions that follow. COMPOSITE BUSINESS CYCLE INDICATORS FOR SOUTH AFRICA The composite coincident business cycle indicator increased in November 2023 and an increase was also recorded for the composite lagging business cycle indicator during the same period. A decrease in the composite leading indicator as average hours worked per factor worker dropped. Some business cycles last between 15–20 years and are caused by changes in activity in the building and construction industries. [Adapted from sarb/publications/ Feb2024.pdf. Accessed on 31 March 2024.] 4.2.1 Identify an example of leading indicators from the information above. (1) 4.2.2 Name the type of business cycle that lasts between 15–20 years. (1) 4.2.3 Briefly describe the term composite indicator. (2) 4.2.4 Explain coincident indicators as a feature in business cycle forecasting. (2) 4.2.5 Why do economists use moving averages in their analysis of economic trends? (4) Copyright reserved Please turn over Hosted by www.ecexams.co.za.

Downloaded from hlayiso.com 12 ECONOMICS P1 (EC/SEPTEMBER 2024) 4.3 Study the extract below and answer the questions that follow. INDUSTRIAL DEVELOPMENT STRATEGIES IN SOUTH AFRICA The South African government took action to address challenges in the development of industries by implementing various policies and strategies. These include NRDS, IPAP, NIPF and IMS. Different manufacturing and service incentives are provided by the Department of Trade and Industry to improve regional development. [Adapted from https://www.thedtic.gov.za/sectors-and-services-2/industrial-development/. Accessed on 5 April 2024.] 4.3.1 Identify an industrial development policy from the information above. (1) 4.3.2 Name ONE incentive used by the South African government to promote industrial development. (1) 4.3.3 Briefly describe the term industrial development. (2) 4.3.4 Explain competitiveness as one of the general benchmark criteria for regional development. (2) 4.3.5 How can the Integrated Manufacturing Strategy (IMS) promote industrialisation in South Africa? (4) 4.4 Differentiate between the Medium-Term Expenditure Framework (MTEF) and the Medium-Term Budget Policy Statement (MTBPS). (8) 4.5 Analyse health as a social indicator. (8) [40] TOTAL SECTION B: 80 Copyright reserved Please turn over Hosted by www.ecexams.co.za.

Downloaded from hlayiso.com (EC/SEPTEMBER 2024) ECONOMICS P1 13 SECTION C Answer any ONE question of the TWO questions in the ANSWER BOOK. Your answer will be assessed as follows: MARK STRUCTURE OF ESSAY ALLOCATION Introduction The introduction is a lower-order response. Max. 2 • 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 discussion/Examine/Critically Max. 26 discuss/Analyse/Compare/Evaluate/Distinguish/Differentiate/ Explain/Draw a graph and explain/Use the graph given and explain/Complete the given graph/Assess/Debate Max. 10 A maximum of 8 marks may be allocated for headings/ examples. Additional part: Critically discuss/Evaluate/Critically evaluate/ Debate/Deduce/Compare/Distinguish/Interpret/How?/Suggest A maximum of 2 marks may be allocated for mere listing of facts. Conclusion Any higher-order conclusion should include: • A brief summary of what has been discussed without repeating Max. 2 facts already mentioned • Any opinion or value judgment on the facts discussed • Additional support information to strengthen the discussion/analysis • A contradictory viewpoint with motivation, if required • Recommendations TOTAL 40 QUESTION 5: MACROECONOMICS 40 MARKS – 40 MINUTES • Discuss in detail the reasons for international trade. (26 marks) • How can changes in terms of trade influence the South African economy? (10 marks) [40] QUESTION 6: ECONOMIC PURSUITS 40 MARKS – 40 MINUTES • Discuss in detail the demand-side approach in promoting growth and development in South Africa. (26 marks) • Evaluate the successes of the National Development Plan (NDP) in promoting growth and development. (10 marks) [40] TOTAL SECTION C: 40 GRAND TOTAL: 150 Copyright reserved Please turn over Hosted by www.ecexams.co.za.