Economics Grade 12 P1 NSC November 2022 Question Paper (Eng)

Downloaded from hlayiso.com NATIONAL SENIOR CERTIFICATE GRADE 12 ECONOMICS P1 NOVEMBER 2022 MARKS: 150 TIME: 2 hours This question paper consists of 12 pages. Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 2 DBE/November 2022 NSC 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/November 2022 NSC SECTION A (COMPULSORY) QUESTION 1 30 MARKS – 20 MINUTES 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, e.g. 1.1.9 D. 1.1.1 Products that consumers can use repeatedly to satisfy their needs for many years are called … goods. A semi-durable B non-durable C perishable D durable 1.1.2 The buying and selling of government securities to control the money supply is known as … A moral suasion. B cash reserve requirements. C open-market transactions. D interest rate changes. 1.1.3 Public goods that are non-excludable and non-rival in consumption are called … goods. A community B collective C demerit D merit 1.1.4 The balance of payments account that records transactions related to exports and imports of goods and services is known as the … Account. A Financial B Current C Capital Transfer D Reserve 1.1.5 A trade protocol that is meant to improve trade relationships between the United States of America and Africa is called the … A European Union. B Southern African Customs Union. C African Growth and Opportunity Act. D Multilateral Monetary Area. 1.1.6 A redress measure that aims to compensate citizens who lost their land due to discriminatory laws of the past is known as … A land redistribution. B property subsidy. C land reform. D land restitution. Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 4 DBE/November 2022 NSC 1.1.7 The Platinum Spatial Development Initiative (SDI) focuses on … A mining and agritourism. B forestry and agri-processing. C information, technology and telecommunications. D transport and tourism. 1.1.8 An indicator that measures the number of children who die before the age of one year is called … A spending on health. B infant mortality rate. C under-five mortality rate. D access to sanitation. (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 numbers (1.2.1 to 1.2.8) in the ANSWER BOOK, e.g. 1.2.9 J. COLUMN A COLUMN B 1.2.1 Money flow A a document that sets out the government's expected expenditure 1.2.2 Keynesian approach and income over a three-year period 1.2.3 Medium-term B production of a wide range of goods Expenditure Framework and services 1.2.4 Unrecorded C refers to the world's developed transactions countries and developing countries 1.2.5 Diversification D focuses on using science and technology to promote and expand 1.2.6 North-South divide industrialisation 1.2.7 National Research and E income and expenditure between Development Strategy the participants in the economy 1.2.8 Repo rate F maintains that markets are inherently unstable and economic fluctuations are caused by internal factors G the price paid by commercial banks for borrowing money from the South African Reserve Bank H maintains that markets are inherently stable and economic fluctuations are caused by external factors I an item in the balance of payments that caters for any omissions and errors (8 x 1) (8) Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 5 DBE/November 2022 NSC 1.3 Give ONE term for each of the following descriptions. Write only the term 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 market value of all final goods and services produced by permanent citizens of a country within a specific period 1.3.2 When resources are allocated in such a way that no one can be made better off without making someone else worse off 1.3.3 Compares a country's export prices with its import prices by means of indexes 1.3.4 Selling goods in a foreign market at prices that are below the cost of production in the country of origin 1.3.5 A tract of land that forms a passageway which allows access from one area to another to promote regional development 1.3.6 The number of employed persons expressed as a percentage of the economically active population (6 x 1) (6) TOTAL SECTION A: 30 Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 6 DBE/November 2022 NSC 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 macroeconomic objectives of the public sector. (2 x 1) (2) 2.1.2 Why are subsidies on products subtracted when converting gross domestic product (GDP) at basic prices to GDP at market prices? (1 x 2) (2) 2.2 Study the table below and answer the questions that follow. THE MORE YOU EARN, THE MORE YOU PAY RATES OF TAX FOR INDIVIDUALS TAXABLE INCOME RATE OF TAX (2021/22) (RAND) 1–216 200 18% of taxable income 216 201–337 800 38 916 + 26% of taxable income above 216 200 337 801–467 500 70 532 + 31% of taxable income above 337 800 467 501–613 600 110 739 + 36% of taxable income above 467 500 613 601–782 200 163 335 + 39% of taxable income above 613 600 782 201–1 656 600 229 089 + 41% of taxable income above 782 200 1 656 601 and above 587 593 + 45% of taxable income above 1 656 600 [Source: http://www.treasury.gov.za] 2.2.1 Identify the marginal tax rate for a person earning between R216 201 and R337 800 per year. (1) 2.2.2 Name the income tax system represented by the table above. (1) 2.2.3 Briefly describe the term fiscal policy. (2) 2.2.4 Explain the effect of high tax rates on taxpayers in a country. (2) 2.2.5 Use the information in the table above to calculate the income tax payable if one receives an annual income of R480 000. (4) Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 7 DBE/November 2022 NSC 2.3 Study the graph below and answer the questions that follow. FOREIGN EXCHANGE MARKET Exchange rate (rand/US$) D1 S D e1 R15,00 e R14,60 D1 S D 0 100 120 Quantity of US dollar (millions) 2.3.1 Identify the original exchange rate in the graph above. (1) 2.3.2 Name the exchange rate system used in South Africa. (1) 2.3.3 Briefly describe the term devaluation. (2) 2.3.4 What is the benefit of a surplus on the current account of the balance of payments? (2) 2.3.5 With reference to the graph above, explain the effect of the increase in the demand for US dollar on the value of the rand. (2 x 2) (4) 2.4 Explain the interrelationship between households and businesses in the circular-flow model. (4 x 2) (8) 2.5 Analyse the problems faced by the South African government in providing public goods and services. (4 x 2) (8) [40] Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 8 DBE/November 2022 NSC 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 Why do people often migrate to cities and urban areas? (1 x 2) (2) 3.2 Study the cartoon below and answer the questions that follow. INTERNATIONAL TRADE LIBERALISATION FREE TRADE AT LAST!!! FREE TRADE AT LAST!!! NO MORE PROTECTIONISM. NO MASSIVE WORKERS' LAYOFFS RIGHTS [Source: www.google.com] 3.2.1 Identify the international trade policy depicted by the cartoon above. (1) 3.2.2 What does the abbreviation WTO stand for? (1) 3.2.3 Briefly describe the term import substitution. (2) 3.2.4 Why is it necessary for infant industries to be protected? (2) 3.2.5 How can South Africa benefit from free trade? (2 x 2) (4) Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 9 DBE/November 2022 NSC 3.3 Study the graph below and answer the questions that follow. SOUTH AFRICA'S QUARTERLY LABOUR PRODUCTIVITY GROWTH RATE (%) 14% Growth rate 12% 10% 8% 6% 4% 2% 0% 2020-Q1 2020-Q2 2020-Q3 2020-Q4 2021-Q1 2021-Q2 -2% Time (Quarterly) -4% -6% [Source: www.thedtic.gov.za] 3.3.1 Identify, in the graph above, the period in which South Africa experienced the highest negative growth rate. (1) 3.3.2 Name any ONE institution that publishes economic indicators in South Africa. (1) 3.3.3 Briefly describe the term social indicator. (2) 3.3.4 Explain the impact of an increase in labour productivity on businesses. (2) 3.3.5 How can the government improve the productivity of the South African labour force? (2 x 2) (4) 3.4 Briefly discuss subsidies and incentives as methods of export promotion. (2 x 4) (8) 3.5 Evaluate South Africa's regional development policies in terms of the international benchmark criteria. (4 x 2) (8) [40] Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 10 DBE/November 2022 NSC QUESTION 4: MACROECONOMICS AND ECONOMIC PURSUITS 40 MARKS – 30 MINUTES 4.1 Answer the following questions. 4.1.1 Name any TWO effects of international trade. (2 x 1) (2) 4.1.2 How does Broad-Based Black Economic Empowerment (BBBEE) promote industrial development? (1 x 2) (2) 4.2 Study the diagram below and answer the questions that follow. CIRCULAR FLOW AND THE MULTIPLIER Income (Y) = R100m Savings Investments CONSUMERS S = R20m I = R100m FIRMS FINANCIAL R100m MARKET R100m 0,2 Consumption (C) = R80m 0,8 4.2.1 Identify the value of marginal propensity to save (mps) in the diagram above. (1) 4.2.2 Name the leakage that relates to the foreign sector. (1) 4.2.3 Briefly describe the term autonomous consumption. (2) 4.2.4 Explain the importance of savings in the economy. (2) 4.2.5 Use the marginal propensity to consume (mpc) in the diagram above to determine the value of the multiplier. Show the formula and ALL calculations. (2 x 2) (4) Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 11 DBE/November 2022 NSC 4.3 Study the extract below and answer the questions that follow. INDUSTRIAL DEVELOPMENT IN SOUTH AFRICA The mission of the Department of Trade, Industry and Competition (DTIC) is to promote structural transformation towards a dynamic industrial and globally competitive economy. The critical infrastructure facilities (CIFs), among other incentives, aim to attract investment by supporting infrastructure that is deemed to be critical. The South African government is implementing the CIFs to stimulate investment growth in line with the National Industrial Policy Framework (NIPF). [Source: www.thedtic.gov.za] 4.3.1 Identify the policy that sets out the government's approach to industrialisation. (1) 4.3.2 Name any other incentive provided by the DTIC to promote industrial development in South Africa. (1) 4.3.3 Briefly describe the term special economic zones (SEZs). (2) 4.3.4 How can an increase in international oil prices slow down industrial development? (2) 4.3.5 Why is infrastructure development in previously neglected areas important? (2 x 2) (4) 4.4 Briefly discuss population growth and life expectancy as demographic indicators. (2 x 4) (8) 4.5 How can South Africa reduce imports in order to correct a balance of payments deficit? (4 x 2) (8) [40] TOTAL SECTION B: 80 Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P1 12 DBE/November 2022 NSC SECTION C Answer any ONE of the two questions in this section 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 the 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 A maximum of 8 marks may be allocated for headings/examples. Additional part: Critically discuss/Evaluate/Critically evaluate/Debate/ Max. 10 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: Max. 2  A brief summary of what has been discussed without repeating facts already mentioned  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 – 40 MINUTES  Discuss in detail the features underpinning forecasting of business cycles. (26 marks)  Analyse the challenges that an economic recession poses for the different participants in the economy. (10 marks) [40] QUESTION 6: ECONOMIC PURSUITS 40 MARKS – 40 MINUTES  Discuss in detail the South African growth and development policies and strategic initiatives since 1994. (26 marks)  How can South Africa use supply-side measures to promote economic growth and development? (10 marks) [40] TOTAL SECTION C: 40 GRAND TOTAL: 150 Copyright reserved