Economics Grade 12 P2 NSC November 2018 Question Paper (Eng)

Downloaded from hlayiso.com NATIONAL SENIOR CERTIFICATE GRADE 12 ECONOMICS P2 NOVEMBER 2018 MARKS: 150 TIME: 2 hours This question paper consists of 13 pages. Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P2 2 DBE/November 2018 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/P2 3 DBE/November 2018 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 Unit cost is also known as … cost. A marginal B total C average D variable 1.1.2 The nature of the product traded in a pure oligopoly is … A differentiated. B homogenous. C heterogeneous. D unique. 1.1.3 The term 'long run' refers to a period where … factors of production can change. A both variable and fixed B only variable C only fixed D floating 1.1.4 A fresh-produce market is a good example of a/an … market structure. A monopolistic competitive B monopoly C perfect competitive D oligopoly 1.1.5 The Minister of … is responsible for fiscal policy to stabilise the economy. A Tourism B Finance C Trade D Environmental Affairs 1.1.6 The government can levy a/an … tax on environmental polluters. A import B personal income C consumption D green Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P2 4 DBE/November 2018 NSC 1.1.7 The tourism industry is … intensive. A capital B money C technology D labour 1.1.8 The granting of a licence to businesses that allow them to pollute up to a certain degree is referred to as … A marketable permits. B legislation. C taxable permits. D licencing. (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. COLUMN A COLUMN B 1.2.1 Pareto efficiency A occurs where average revenue is equal to average cost 1.2.2 Explicit costs B a sustained decline in the general 1.2.3 Normal profit price level over a period of time 1.2.4 Heterogeneous C measures that ensure the maximum level of a resource is used, e.g. tons 1.2.5 Deflation of fish caught 1.2.6 Command and control D the uncontrolled removal of systems vegetation in an unsustainable way 1.2.7 Deforestation E when it is impossible to increase the welfare of one person without 1.2.8 Production price index decreasing the welfare of another F actual expenditure of a business, e.g. wages and interest G calculated on a basket of goods only H total revenue is greater than total cost I products that differ, in other words, which are not similar (8 x 1) (8) Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P2 5 DBE/November 2018 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 cost that remains the same even if the output changes 1.3.2 A market structure where the individual firms are price-takers 1.3.3 The additional revenue earned when sales increase by one more unit 1.3.4 Low growth, high unemployment and high inflation rates occur simultaneously 1.3.5 The type of tourism where tourists come to South Africa to visit museums and art galleries 1.3.6 Resources that can be replaced or regenerated (6 x 1) (6) TOTAL SECTION A: 30 Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P2 6 DBE/November 2018 NSC SECTION B Answer any TWO of the three questions in this section in the ANSWER BOOK. QUESTION 2: MICROECONOMICS 40 MARKS – 30 MINUTES 2.1 Answer the following questions. 2.1.1 Give any TWO examples of natural monopolies. (2 x 1) (2) 2.1.2 What is the main purpose of markets in the economy? (1 x 2) (2) 2.2 Study the extract below and answer the questions that follow. NEW AMENDMENTS TO COMPETITION ACT The government introduced the Competition Act, 1998 (Act 89 of 1998) to promote competition and enhance the efficiency of the South African economy. The Competition Commission, Competition Tribunal and Competition Appeal Court play an important role in the administration of the Act. Companies that are suspected of collusion are investigated and if they are found guilty, they are fined heavily. In the new amendment of section 73A of the Competition Act, provision is made for new criminal sanctions to be imposed on individuals. [Adapted from Businesstech.co.za, 2016] 2.2.1 Which institution imposes fines on companies that are guilty of collusion? (1) 2.2.2 What is the role of the Competition Appeal Court? (1) 2.2.3 State any ONE aim of the competition policy. (2) 2.2.4 How does competition in the market benefit the consumer? (2) 2.2.5 Briefly discuss the success of the competition policy of South Africa. (2 x 2) (4) Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P2 7 DBE/November 2018 NSC 2.3 Study the graph below and answer the questions that follow. MONOPOLY Cost/ MC Revenue AC a 200 b e 150 100 d 50 c MR DD/AR 0 100 150 180 Quantity 2.3.1 What is the selling price of the business above? (1) 2.3.2 Identify the letter in the graph above that represents the loss minimising point. (1) 2.3.3 Briefly describe the term monopoly. (2) 2.3.4 Why is the equilibrium position above typical of the short run? (2) 2.3.5 Determine the loss for this business. Show ALL calculations. (4) 2.4 With the aid of a well-labelled graph (cost and revenue curves), explain the shut-down point for the individual firm in a perfect market. (8) 2.5 Evaluate the impact of collusion on the economy. (8) [40] Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P2 8 DBE/November 2018 NSC QUESTION 3: CONTEMPORARY ECONOMIC ISSUES 40 MARKS – 30 MINUTES 3.1 Answer the following questions. 3.1.1 Give any TWO examples of consumer inflation. (2 x 1) (2) 3.1.2 What is the main purpose of preservation? (1 x 2) (2) 3.2 Study the information below and answer the questions that follow. SOUTH AFRICA'S INFLATION REACHES ITS LOWEST LEVEL SINCE 2015 South African food prices grew at a slower rate in July 2017 than in June 2017. In June the general YES! When I get price level increased by 5,1%, a job I will be while in July it increased by able to buy 4,6%. This led to the Reserve something. Bank reducing its repo (repurchase) rate by 50 base points. This was a major change from 2012 when the inflation rate was 6,5%. [Adapted from www.google.co.za] 3.2.1 Identify, in the information above, the inflation rate that falls outside the inflation target range. (1) 3.2.2 Give ONE reason for the decrease in the inflation rate. (1) 3.2.3 Briefly describe the term repo (repurchase) rate. (2) 3.2.4 How will a decrease in the inflation rate benefit low-income earners? (2) 3.2.5 How can price stability affect the economy positively? (2 x 2) (4) Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P2 9 DBE/November 2018 NSC 3.3 Study the cartoon below and answer the questions that follow. ENVIRONMENTAL PROBLEMS We need more measures to ensure our survival. Environmental BIG subsidies will help. Businesses [Source: www.wikipedia, 2017] 3.3.1 Identify the type of pollution in the cartoon above. (1) 3.3.2 What major environmental problem can result from the business activities above? (1) 3.3.3 Briefly describe the term environmental sustainability. (2) 3.3.4 What impact will environmental problems have on food security (continuous food production)? (2) 3.3.5 How can environmental subsidies be used to ensure sustainable development in South Africa? (2 x 2) (4) 3.4 Briefly discuss demand-pull inflation and cost-push inflation. (2 x 4) (Maximum 4 marks each) (8) 3.5 Why have the international measures (agreements) been ineffective in reducing the effects of climate change? (8) [40] Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P2 10 DBE/November 2018 NSC QUESTION 4: MICROECONOMICS AND CONTEMPORARY ECONOMIC ISSUES 40 MARKS – 30 MINUTES 4.1 Answer the following questions. 4.1.1 Give any TWO examples of hazardous waste that affects the environment. (2 x 1) (2) 4.1.2 Why are merit goods normally undersupplied by the market? (1 x 2) (2) 4.2 Study the extract below and answer the questions that follow. FAST-FOOD RESTAURANTS IN THE MONOPOLISTIC COMPETITIVE MARKET South Africa's fast-food market is extremely competitive, as many sellers fight it out for their share of the consumer market. The fast-food industry accounts for about 40% of the total consumer food-service sales in South Africa, e.g. Fishaways selling fish and Steers selling hamburgers. It is regarded as a hybrid market structure. [Adapted from City Press, February 2017] 4.2.1 Give ONE example of a monopolistic competitor that specialises only in chicken. (1) 4.2.2 Identify the concept that describes a combination of perfect competition and monopoly. (1) 4.2.3 Why does branding play a major role in monopolistic competition? (2) 4.2.4 Give a reason why businesses in the monopolistic competitive market prefer to compete on a non-price basis. (2) 4.2.5 Why will the economic profit made by a monopolistic competitor disappear in the long run? (2 x 2) (4) Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P2 11 DBE/November 2018 NSC 4.3 Study the information below and answer the questions that follow. IS THE ILLEGAL HUNTING (POACHING) OF RHINOCEROS COMING TO AN END NOW? Recorded number of rhinos poached in South Africa Number of rhino poached Year Illegal hunting accounts for the vast majority of rhino deaths. Awareness and conservation are vital to maintain biodiversity and to prevent the species from dying out. This also benefits the people living near the rhino habitat. [Adapted from www.PoachStatsSA, 2017] 4.3.1 What is the main reason for the poaching of rhinos? (1) 4.3.2 In which year was rhino poaching at its worst in South Africa? (1) 4.3.3 Briefly describe the term biodiversity. (2) 4.3.4 Give ONE example of how awareness of the natural fauna and flora can be created. (2) 4.3.5 How will conservation benefit the people living near the rhino habitat? (2 x 2) (4) 4.4 With the aid of graphs, briefly explain how price is determined for an individual producer in a perfect market. (8) 4.5 How can South African households contribute to a lower inflation rate? (8) [40] TOTAL SECTION B: 80 Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P2 12 DBE/November 2018 NSC SECTION C Answer any ONE of the two questions in this section in the ANSWER BOOK. Ensure that your answer follows the structure indicated below in order to obtain maximum marks: 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 discuss/ Max. 26 Analyse/Compare/Evaluate/Distinguish/Differentiate/Explain Additional part: Give own opinion/Critically discuss/Evaluate/Critically evaluate/ Draw a graph and explain/Use the graph given and explain/Complete the given Max. 10 graph/Calculate/Deduce/Compare/Explain/Distinguish/Interpret/Briefly debate/ How/Suggest 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 value 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: MICROECONOMICS 40 MARKS – 40 MINUTES • Discuss, with the aid of graphs, the consequences of market failure under the following headings: − Producer subsidies (8 marks) − Maximum prices (8 marks) − Minimum wages (10 marks) (26 marks) • With reference to the graph below, analyse how a negative externality can result in the misallocation of resources. Price MSC MPC 50 40 MSB 0 100 150 Quantity [40] Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P2 13 DBE/November 2018 NSC QUESTION 6: CONTEMPORARY ECONOMIC ISSUES 40 MARKS – 40 MINUTES • Discuss the effects of tourism. (26 marks) • Evaluate the success of indigenous knowledge systems (IKS) in promoting tourism in South Africa. (10 marks) [40] TOTAL SECTION C: 40 GRAND TOTAL: 150 Copyright reserved