Economics Grade 12 P1 NSC June 2015 Question Paper (English)

Downloaded from hlayiso.com SENIOR CERTIFICATE EXAMINATION ECONOMICS P1 2015 MARKS: 150 TIME: 1½ hours This question paper consists of 12 pages. Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 2 DBE/2015 SCE 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

Downloaded from hlayiso.com Economics/P1 3 DBE/2015 SCE SECTION A (COMPULSORY) QUESTION 1 30 MARKS – 15 MINUTES 1.1 Various options are provided as possible answers to the following questions. Choose the answer and write only the letter (A–C) next to the question number (1.1.1–1.1.8) in the ANSWER BOOK, for example 1.1.9 C. 1.1.1 In calculating the gross domestic product (GDP), only the value of … goods and services is taken into account. A final B raw C intermediate 1.1.2 An example of a fiscal policy instrument is ... A money supply. B government spending. C interest rates. 1.1.3 State-owned enterprises are also called … A parastatals. B the private sector. C the corporate sector. 1.1.4 An increase in the value of a currency due to supply and demand is known as … A appreciation. B revaluation. C depreciation. 1.1.5 Newly established industries are often called … industries. A mature B infant C developed 1.1.6 Labour as a factor of production is referred to as … A human development. B human rights. C human capital. Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 4 DBE/2015 SCE 1.1.7 IPAP was designed to increase industrialisation in the … sector. A service B agricultural C manufacturing 1.1.8 The ratio between goods and services produced and the resources used to produce them is called … A productivity. B production. C efficiency. (8 x 2) (16) 1.2 Choose a description from COLUMN B that matches the item in COLUMN A. Write only the letter (A–I) next to the question number (1.2.1–1.2.8) in the ANSWER BOOK. COLUMN A COLUMN B 1.2.1 Factor market A human resources used to maximum capacity 1.2.2 Kuznets cycle B no restrictions or limitations to global 1.2.3 Full employment trade 1.2.4 Foreign reserves C where labour, entrepreneurship, land and capital are traded 1.2.5 Demand-side approach D caused by changes in the building and construction industry 1.2.6 Free trade E cash incentives for businesses in 1.2.7 Strategic Investment information technology Programme F headline inflation 1.2.8 Consumer price index G all currencies of other countries in the possession of the South African Reserve Bank H inflation indicator at producer level I the use of fiscal policy to stimulate spending in the economy (8 x 1) (8) Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 5 DBE/2015 SCE 1.3 Give ONE term for each of the following descriptions. Write only the term next to the question number (1.3.1–1.3.6) in the ANSWER BOOK. 1.3.1 The ratio between the imports and exports indices 1.3.2 Expansion and contraction in the level of economic activities 1.3.3 A place or mechanism through which buyers and sellers meet to do business 1.3.4 The plan containing government estimates of revenue and expenditure for a specific year 1.3.5 The government's intervention programme aimed at creating employment by using labour-intensive methods 1.3.6 A trade policy whereby government uses incentives and subsidies to encourage South African businesses to sell to other countries (6 x 1) (6) TOTAL SECTION A: 30 Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 6 DBE/2015 SCE SECTION B Answer any TWO of the three questions in this section in the ANSWER BOOK. QUESTION 2: MACROECONOMICS 40 MARKS – 20 MINUTES 2.1 Answer the following questions. 2.1.1 Name TWO methods to calculate national account aggregates. (2 x 1) (2) 2.1.2 Why are the GNP figures generally lower than the GDP figures in South Africa? (1 x 2) (2) 2.2 Study the table below and answer the questions that follow. SOUTH AFRICA'S CURRENT ACCOUNT ITEM 2011 2012 2013 Merchandise exports (free on board) 714 466 743 811 853 715 Net gold exports 75 298 71 050 63 887 Services receipts 107 825 124 332 136 751 Income receipts 38 118 48 501 64 441 Less: Merchandise imports (free on board) 742 679 854 439 991 186 Less: Payment for services 142 230 145 006 158 356 Less: Income payments 104 689 121 428 135 652 Current transfers -14 199 -31 369 -30 666 Balance on current account -68 090 -164 548 -197 179 [Source: SARB Quarterly Bulletin, September 2014] 2.2.1 What has happened to the contribution of gold since 2011? (1) 2.2.2 Define the term current transfers. (2) 2.2.3 Calculate the trade balance for 2013. Show ALL calculations. (3) 2.2.4 What impact will the deficit on the current account have on the economy? (2 x 2) (4) Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 7 DBE/2015 SCE 2.3 Study the pie chart below and answer the questions that follow. PUBLIC SECTOR BUDGET BIG SPENDING – 2013/2014 FINANCIAL YEAR HOUSING R143 bn EDUCATION R254 bn HEALTH R146 bn INFRA- STRUCTURE R93 bn 2.3.1 Which government department received the highest allocation of the budget? (1) 2.3.2 When does the financial year of the government begin? (1) 2.3.3 Name any TWO items in the pie chart above that are related to social spending. (2 x 1) (2) 2.3.4 Why do you think the government should spend more on infrastructure development? (2) 2.3.5 Why does the government allocate 60% of the entire budget to social spending? (2 x 2) (4) 2.4 Explain the endogenous reasons (Keynesian theory) for business cycles. (4 x 2) (8) 2.5 Argue in favour of import substitution. (4 x 2) (8) [40] Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 8 DBE/2015 SCE QUESTION 3: ECONOMIC PURSUITS 40 MARKS – 20 MINUTES 3.1 Answer the following questions. 3.1.1 Name any TWO economic indicators that are related to employment. (2 x 1) (2) 3.1.2 What is the main aim of South Africa's National Development Plan (NDP)? (1 x 2) (2) 3.2 Study the map below and answer the questions that follow. Spatial Development Initiatives in SA Maputo Phalaborwa SDI Development Corridor Platinum SDI Coast 2 Coast Corridor Lubombo SDI Richards Bay SDI West Coast Investment Initiatives A Fish River SDI [Source: SA Yearbook, 2013/2014] 3.2.1 Name the SDI indicated by A. (2) 3.2.2 Define spatial development initiatives. (2) 3.2.3 What is the main focus of SDIs? (1 x 2) (2) 3.2.4 What is the difference between industrial development zones and special economic zones? (2 x 2) (4) Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 9 DBE/2015 SCE 3.3 Study the extract below and answer the questions that follow. BLACK ECONOMIC EMPOWERMENT Towards broad-based growth Black economic empowerment – or broad-based black economic empowerment, as it is technically known – is not affirmative action, although employment equity forms part of it. Nor does it aim to take wealth from one group and give it to another. It is essentially a growth strategy, targeting the South African economy's weakest point: inequality. 'No economy can grow by excluding any part of its people, and an economy that is not growing cannot integrate all of its citizens in a meaningful way. As such, this strategy stresses a BEE process that is associated with growth, development and enterprise development, and not merely the redistribution of existing wealth,' the department of trade and industry says. Black economic empowerment is an important policy instrument aimed at broadening the economic base of the country – and through this, at stimulating further economic growth and creating employment. [Adapted from www.wikipedia.com] 3.3.1 According to the extract, what is the misconception regarding the BEE policy? (1) 3.3.2 What is the focus of the BEE policy instrument? (1) 3.3.3 How can broad-based growth be achieved? (2 x 2) (4) 3.3.4 Do you think that BEE is successful as a measure to redress inequalities of the past? Motivate your answer. (2 x 2) (4) 3.4 Differentiate between economic growth and economic development. (2 x 4) (8) 3.5 How can the South African government ensure that its industrial policies comply with international benchmarks? (4 x 2) (8) [40] Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 10 DBE/2015 SCE QUESTION 4: MACROECONOMICS AND ECONOMIC PURSUITS 40 MARKS – 20 MINUTES 4.1 Answer the following questions. 4.1.1 Name TWO growth sectors of South Africa's Integrated Manufacturing Systems (IMS). (2 x 1) (2) 4.1.2 How can extrapolation be used in predicting business cycles? (1 x 2) (2) 4.2 Study the graph below and answer the questions that follow. REAL BUSINESS CYCLE P1 105 104 103 Index of economic activities b P2 102 101 d A B 100 99 c a e 98 T2 97 T3 T1 Years 0 1 2 3 4 5 6 7 8 9 10 11 GDP 4.2.1 What do dotted lines a and b represent? (2 x 1) (2) 4.2.2 Define the term real (actual) business cycles. (2) 4.2.3 What is the importance of the length (T 2 –T 3 ) of a business cycle? (2) 4.2.4 What can the government do to ensure that high inflation does not occur during peaks of business cycles? (4) Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 11 DBE/2015 SCE 4.3 Study the cartoon below and answer the questions that follow. Pollution Africa Face it ... there's always something on the agenda more pressing than Africa. [Source: www.economicscartoons.com] 4.3.1 What message is depicted in the cartoon above? (2) 4.3.2 Name TWO countries that belong to the G8 group of countries. (2 x 1) (2) 4.3.3 Give a reason why African countries feel that the G8 countries neglect Africa. (2) 4.3.4 Why will the Gini-coefficient of G8 countries in the North differ from that of countries in the South? (2 x 2) (4) 4.4 Explain the methods to promote exports. (4 x 2) (8) 4.5 Evaluate the success of economic growth and price stability as a part of government's macroeconomic objectives. (2 x 4) (8) [40] TOTAL SECTION B: 80 Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 12 DBE/2015 SCE SECTION C Answer any ONE of the two questions in this section in the ANSWER BOOK. Your answer will be assessed as follows: STRUCTURE OF ESSAY MARK ALLOCATION Introduction Max. 2 Body: Main part: Discuss in detail/In-depth discussion/Examine/ Max. 26 Critically discuss/Analyse/Compare/Evaluate/Distinguish/ Differentiate/Explain/Assess/Debate Additional part: Give own opinion/Critically discuss/ Max. 10 Evaluate/Critically evaluate/Draw a graph and explain/Use the graph given and explain/Complete the given graph/ Calculate/Deduce/Compare/Explain/Distinguish/Interpret/ Briefly debate Conclusion: Any higher-order conclusion should include: Max. 2 • A brief summary of what has been discussed without repeating facts already mentioned in the body • Any opinion or valued 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: MACROECONOMICS 40 MARKS – 35 MINUTES Economists present the economy as a simplified economic circular-flow model to show how the different participants interact with each other. • Discuss, in detail, without the use of a diagram, the interaction of all the participants in the open economic circular-flow model. (26) • Explain the multiplier process by using a fully labelled graph. (10) [40] QUESTION 6: ECONOMIC PURSUITS 40 MARKS – 35 MINUTES The wellbeing and development of society is very important; therefore the government prioritises the provision of goods and services to enhance social development. • Analyse, in detail, the following social indicators: - Demographics - Nutrition and health - Services (26) • In your opinion, how can economic development be promoted through the use of these social indicators? (10) [40] TOTAL SECTION C: 40 GRAND TOTAL: 150 Copyright reserved