Economics Grade 12 NSC June 2013 Memo

Downloaded from hlayiso.com basic education Department: Basic Education REPUBLIC OF SOUTH AFRICA SENIOR CERTIFICATE EXAMINATION ECONOMICS STANDARD GRADE. . | | 2013 ae Q - POSSIBLE ANSWERS — MARKS: 300 This memorandum consists of 15 paaes. Copyright reserved ; Please turn over

Downloaded from hlayiso.com Economics/SG 2 DBE/2013 SCE - Memorandum SECTION A QUESTION 1 44 MULTIPLE-CHOICE 1.1.1 C foreign sector vvv 1.1.2 D real GDP vvv 1.1.3 D finished “vv 1.1.4 C_ non-durable goods vvv 4.15 A, B, Cor D ¥v¥v 1.1.6 A tightvvv 7 A_ Short term vvv 1.1.8 A, B, CorDV¥v¥v 1.1.9 D RDP vvv 1.1.10 D_ South Africa vvv 1.1.11 A promoting economic development in the less developed regions VVvv¥ 1.1.12 D_ industrial vvv 1.1.13 B_ Price of imports will fall vvv 1.1.14 Dan increase in imports from vvY~ 1.1.15 A merchandise exports Vvv¥v” 1.1.16 B_ Specific vvv 1.1.17. C_ Minister of Finance vvv 1.1.18 D1 April to 31 March vvv 1.1.19 B legitimate ways used by individuals to reduce the tax burden 1.1.20 8B fiscalvvv (20x 3) (60) Copyright reserved k

1.2 1.3 TRUE OR FALSE 1.2.1 True vv 1.2.2 True vv 1.2.3 False vv 1.2.4 True Vv 1.2.5 False vv 1.2.6 True vv 1.2.7 False vv 1.28 True vv 1.2.9 False vv 1.2.10 False Vv CHOOSE FROM LIST 1.3.1 Inflation vv 1.3.2 public goods vv 1.3.3 rent vv 1.3.4 mechanisation vv 1.3.5 devaluation vv 1.3.6 monetary policy committee Vv” 1.3.7 compulsory vv 1.3.8 crude oilvv 1.3.9 globalisation vv 1.3.10 SARBYY Downloaded from hlayiso.com (10 x 2) (10 x 2) TOTAL SECTION A: (20) (20) 100 VA

SECTION B Downloaded from hlayiso.com QUESTION 2: NATIONAL INCOME 2.1 2.3 2.4 Ss 2.1.1 2.1.2 increase Vv capital goods Vv (2x 2) > primary sector Vv > secondary sector vv > tertiary sector vv (3 x 2) DATA RESPONSE 2.3.1 primary sector VV ¥ 2.3.2 mining/forestry/ishing/agriculture/farming/quarrying (Any 2 x 3) 2.3.3 R2 794 842 m¥vv 2.3.4 Current/nominal price adjusted for inflation/price increase/prices expressed in terms of base year vv Households spend on the following items: Durable consumer goods Vv“: housing and vehicles vv Semi durable goods Y¥v: Curtains and bedding vv Non-durable goods ~v’: food and fuel vv” Services “v: Transport and electricity vv Accept any relevant explanations/examples. (4x4) (4) (6) (3) (6) (3) (2) (16) [40]

Downloaded from hlayiso.com QUESTION 3: PRICE FORMATION 3.1 3.2 3.3 3.4 S 3.1.1 3.1.2 saturation Vv luxury vv (2 x 2) utility vv demand vv supply/scarcity vv cyclical fluctuations Vv accidentaV/irregular fluctuations vv production cost vv (Any 3 x 2) DATA RESPONSE 3.3.1 3.3.2 3.3.3 3.3.4 3.3.5 R700 vvv R400 vvv 65 700 v- 48 700 V = 17 000 Vv (Vvvv/) The higher the price the lower the demand, and the lower the price the higher the demand/law of demand/inverse relationship vvv The quantity of a good/service that is bought at a particular price and at a particular point in timev” (Accept relevant definition). Human wants are unlimited in number and variety. vv E.g. once certain want (house) has been satisfied, another want (a car) develops. vv Every want has limited intensity vv Only a limited quantity of something is necessary at a particular time to satisfy a want. vv E.g. a person who is thirsty can drink a limited quantity of water vv Wants compete with one another and can replace one another Vv a person can easily change from using one article to using another vv, e.g. when one article (mutton) becomes too expensive such an article will be replaced with another (chicken) substitution. vv Law of substitution vv Wants are complimentary or generated from other wantsvv some wants cannot readily be satisfied individually as they involve other wants. YY e.g. The want for tea creates a want for milk, sugar, cups. VV Wants become habits vv, after repetition of using a good can become a habit e.g. the habit of smoking cigarettes VV Wants motivate people to take action. vv (4) (6) (3) (3) (3) (3) (2) 1

Downloaded from hlayiso.com The action taken to satisfy wants is the driving force behind economic progress and the development of modern economies. vv e.g. computers VV ° The same want can be satisfied by various means VV E.g. Food vw Accept any other relevant example and explanation. (Any4x4) = (16) [40] S ae

Downloaded from hlayiso.com QUESTION 4: ECONOMIC AND REGIONAL DEVELOPMENT AND URBANISATION 41 4.41 developed vv 4.1.2 DBSA vv (2x2) (4) 4.2 e Trading and hawking Vv e Production and construction Vv“ * Illegal activities/smuggling vv (3x 2) (6) (Accept any other informal sector activities) 4.3 4.3.1 Service delivery / housing / increased capacity and efficiency of the economy VV¥ (3) 4.3.2 Job creation “~Yv/economic development VV ~“/economic growth vvViincrease in GDP Vvv These investments will improve access by South Africans to healthcare facilities, schools, water, sanitation, housing and electrification vvv (Any 3 x 3) (9) (Accept any other relevant facts/advantages) 4.3.3 Increase in general standard of living VW (2) 44 ° Economic growth vv - Urbanization is a necessary condition for economic developmentYv - Benefits of the convergence of people and extensive industry promote growth. Vv” e Cities meet many needs of modern people VV - Many things associated with quality of life such as recreational facilities, water and electricity are available in cities. vv ° Lower cost vv - Lower costs are achieved through mass production. vv ° Higher personal income. VV - Urban dwellers earn higher income comparatively vv e Drop in birth rates VY - A higher level of education and job creations lower the birth rates. Vv - This results in more people being economically active. vv Discussion = Max 8 marks (Any4x4) (16) ms Le Accept any other relevant facts Naming Max 8 marks.

Downloaded from hlayiso.com QUESTION 5: INTERNATIONAL ECONOMICS 5.1 5.2 5.3 5.4 5.1.1 deducted vv 5.1.2 domestic vv (2.x 2) Capital VY Natural resources vv Mass production vv Climate differences vv Income VY International migration vv Cost differencesvv Transport and communication Vv Characteristics of labour and the quality of the entrepreneur. VY Established industries VW Topography and soil VW” (Accept any other relevant facts) (Any 3 x 2) eoeerevoeeveeev ee DATA RESPONSE 5.3.1 A= Yen, B = Euro, C = British Pound or Pound Sterling, D = US dollar/dollar (Any 3 x 3) §.3.2 British Pound/Sterling/Pound vvY 5.3.3 US Dollar vv Import duties e — It is the most common form of protection vv e Its done by imposing tariffs in different forms vv Ad valorem tariffs vv e In this case the duty amounts to a certain percentage of the value of the imported article YW For example, if the tariff is 5 percent, and the price of the commodity R100, is the amount to be played R5. vv Specific tariffs vv e Levied as a certain amount per unit, mass or size Vv e.g. R10 per unit per unit, kilogram, litre, etc. vv Composite tariffs vv e The tariff on a specific type of product applies consisting of an ad valorem part plus a specific partvve.g. 5% of the value plus e.g. R 2.50 per unit imported Surcharges VY e Taxes paid over and above taxes already payable on particular products the import of which is being discouraged vv e.g. South African sugar imports from the USA and Canada have been made more expensive by (4) (6) (9) (3) (2)

Downloaded from hlayiso.com levying tariffs vv to protect local sugar producers. Vv Reasons for levying import duties: e Increase the state's revenuevv e Protect local industries and agricultural sector from foreign competition’Y (Accept any other relevant facts) {Any8x2) = (16) [40] QUESTION 6: THE STATE 6.1 6.1.1 state vv 6.1.2 monetary Vv (2 x2) (4) 6.2 Productive/efficient vv Elastic/adaptable Vv Economical/streamlined vY Certain/Reliable vv Impartial/equitable/fair vv Convenient Vv Simple/easy Vv Must increase the national income to its maximum Vv (Any 3 x 2) (6) ©eeeeees @ 6.3 DATA RESPONSE 6.3.1 232.5V x100V 1149.20 V = 20.2% Vv (5) 6.3.2 Job creation VV Poverty alleviation VVWV (Accept any other relevant advantage) (6) 6.3.3 Education, health, welfare, housing and community development VVv (3) 64 . Price stability vv - Prices rise when the demand exceeds the supply of goods and prices decreases when the supply exceeds the demand. vv - It is, however, abnormal for prices to increase year after year but when this happens, we say that inflation exists and this is a continuous Increase of price over an extended period. vv” - Continued inflation is disadvantageous to a country and therefore it is necessary for the government to take action. vv Ss

s Downloaded from hlayiso.com Full employment Vv“ - Full employment means that all persons who would like to work, who are fit to work and who are seeking work should be able to find work. vv” - Full employment is possible only if production is stimulated and increased. Vv - -Measures to stimulate production are required e.g. promotion of labour Intensive enterprises, subsidies, tax concessions and increased consumption. vv Economic growth Vv - Economic growth means an increase in total production or an increase in the GDP. Vv - Tax relief will stimulate consumption and production VW” Balance of payment equilibrium/exchange rate stability Vv - It refers to a position where a favourable ratio exists between the various economic variables (import, export, capital flows.) Vv Economic equity/fairness VV - The market mechanism often creates an unequal distribution of income. ¥¥ - Amore equal distribution of income can be achieved through a progressive tax system and free services to poor. ¥W (Accept any other relevant facts.) (Any 4 x 4) (16) [40] Ser

Downloaded from hlayiso.com QUESTION 7: ECONOMIC AND REGIONAL DEVELOPMENT, URBANISATION 7A 7.4.1 7.1.2 7.2 AND THE STATE CGT vv decrease Vv (2 x 2) Services provided by housewives/homemakers Vv” Own repair vv Voluntary work in organisations Vv i} e e e Garden work at home VV e e legal informal sector activities Vv (Accept appropriate examples specified) (Any 3 x 2) 7.3 DATA RESPONSE 7.3.1 Regressive VV¥ 7.3.2 R10 000Y x156vV =R1500 vv 100 7.3.3 Progressive v“/Tax paid by D, when income increases the rate of tax also increases VVv 7.3.4 Pay As You Earn/PAYE VY 7.4 Distinguish between free and economic goods with regard to their characteristics. Free goods Economic goods 1. Are available in unlimited 1. Are available in limited quantities/ quantities Vv” scarce VV 2. Command no price/Free VW” 2. Do command a price VY 3. Have utility vv 3. Have utility as well as value in exchange VV 4. The possession indicates no 5. 6. affluence/wealth vv 4. The possession indicates prosperity/wealth Vv Beyond human control Vv“ 5. Subject to human control vv E.g. air vv (4x 2)(8)| 6. _E.g. bread vv (4x 2) (8). (Accept answer if it is not in tabular form) (4) (6) (3) (4) (5) (2) (18) [40]

QUESTION 8: Downloaded from hlayiso.com (CHOICE MODULES) IMPORTANT SOUTH AFRICAN ECONOMIC - TOPICS 8.1 LABOUR RELATIONS 8.1.1 8.1.2 8.1.4 Wagesvv e Promote sound worker/employer relationsY “ e Prevent labour disputes from arising’ Y e Settle disputes by conciliation or arbitration’ Y e Assist setting up of workplace forums and conduct ballotsY “” (Any 2 x 2) DATA RESPONSE (a) Congress of South African Trade Unions Vvv (b) Protect the interest of the workers VVvv (Accept any other relevant function) e The industrial court/ labour court performs all the functions of a civil court within labour laws' context as followsv” e The interpretations of provisions of laws and regulations, industrial agreements and others. vv e The hearing of cases of irregular and undesirable labour practice. Vv The investigation and hearing of cases of: Unjustified changes in conditions of service. Vv Unfair dismissals. vv Underpayment of wages. Vv” Wrongful treatment and other grievances. vv The settling of disputes of a non-judicial nature. vv The settlement of labour disputes of a judicial nature including the issuing of orders or instructions. vv e Promoting sound relations between employers and employees. Vv e Helping to establish fair employment practices. VV (Any 4 x 2) AND/OR (2) (4) (3) (3) (8) (20)

8.2 Downloaded from hlayiso.com PRODUCTIVITY AND UNEMPLOYMENT 8.2.1 8.2.2 8.2.3 8.2.4 Structural vv e ° e Labour productivity VW Capital productivity vv Multifactor productivity vv (Any 2 x 2) DATA RESPONSE (a) Increased VVvv (b) Economic recession VV ¥ People who work during peak periods and are unemployed in off-peak periods. VV It is caused by normal and expected changes in economic activity during the course of a single year. VV Certain economic activities require more labour during a specific season of the year and less during the rest of the year. vv This is found in some sectors of the economy, e.g. agricultural sector. VY During harvest times more people are employed and people become unemployed during the months with no harvest. Vv” (Any 4 x 2) AND/OR (2) (4) (3) (3) (8) (20)

8.3 Downloaded from hlayiso.com INFLATION 8.3.1 discourages V¥ 8.3.2 e Demand exceeding supply Vv” e General public not saving Vv” e Extravagant spending vv” e Increase in money supply VW e Easily available credit VY e Increase in exports without a rise in domestic production VW e Systematic decline in productivity VW e Strikes and stay-aways/Go-slows VY” (Any 2 x 2) 8.3.3 DATA RESPONSE (a) 5,5 percent ¥Vvv (b) Escalating electricity prices Vvv 8.3.4 (a) Increase in direct taxation vv Taxpayer's salaries are adjusted from time, to time placing them in higher tax bracketsvV (b) Increase in indirect taxation vv As the price of goods and services increases indirect taxation (VAT) receipts become higher vv (c) Increase in social-welfare spending VY During inflationary periods the state has an obligation to also increase welfare payments such as grants and pensionsv Vv (d) Labour dispute VY The employers are expected to increase employees wages to be in line with inflation vv (Accept any other relevant facts) Naming max 4 Discussion max 4 AND/OR (Any 2x4) (2) (4) (3) (3) (8) [20] "f

8.4 Downloaded from hlayiso.com STRATEGIC RESOURCES 8.4.1 Koeberg vv (2) 8.4.2 e Mining development vv e Industrial development VY” e Flood control vv e Provision of public services vv” e Establishment of recreational facilities vv e Decentralization of industries Vv (Accept any other relevant facts) (Any2x2) (4) 8.4.3 DATA RESPONSE e Disinvestment VV” e Thousands of rands in lost wages VVV e Lost production Vvvv” « Industries lost millions VW“ (Accept any other relevant consequence) VVV (Any2x3) (6) 8.4.4 e Agriculture and irrigation vv ° The largest single user of water in South Africa.vv ° Increase the food production, production of stock feed and live stock vv ° Providing employment for a growing population through irrigation farmingY Vv (Any2x2) = (4) e Mining and quarrying Vv ° South Africa is rich in minerals. vv ° Without water mining could not adequately fulfil its role as a contributor to the economic growth. vv ° Earning of foreign exchange from mineral exports Vv“ (Accept any other relevant primary sector industry) (4) (Any2x2) (20) [40] TOTAL SECTION B: 200 GRAND TOTAL: 300