Economics Grade 12 NSC June 2012 Memo (English)

basic education Department: Basic Education REPUBLIC OF SOUTH AFRICA SENIOR CERTIFICATE EXAMINATION ECONOMICS STANDARD GRADE 2012 MEMORANDUM — FINAL fee mterrneeisataneonmeeeen DEPARTMENT OF BASIC . EDUCATION MARKS: 300 2012 -06- 25 PRIVATE BAG X 110 PRETORIA 0001 PUBLIC EXAMINATIONS | (uulife This memorandum consists of 17 pages. 3 IS. Kets 1 | = 06400 1a, a ta ¢ ad Robert s) = te Copyright reserved Please turn d

Downloaded from hlayiso.com Economics/SG 2 .. DBE/2012 SCE — Memorandu “MENT OF BASIC i SRR MENT O _ EDUCATION | SECTION A | i ante -06- 25 QUESTION 1 | PRIVATE BAG X 110 PRETORIA 0004 4 1.1 MULTIPLE-CHOICE ~“BUBLIC EXAMINATIONS 5 dota C_ National product vvv 1.2 TRUE OR FALSE 1.1.2 C_ Technological advancement ¥vv 1.2.1 Falsevv 1.2.2 False vv 1.1.3 B Changes in the general price level 1.2.3 False vv VV 1.2.4 Truevv 1.2.5 False vv 1.1.4 D Per capita national income vvv 1.2.6 False vv 1.2.7 True vv 1.1.5 D Increase in the quantity of bread 1.2.8 True vv Demanded VVv 1.2.9 False vv 1.2.10 True / False vv 1.1.6 C_ increase in supply Vvv (10 x 2) (20) 1.1.7. A Consumer vvv 1.3 CHOOSE FROM LIST 1.1.8 B_ Market forces vvv 1.3.1 Transfer payments vv 1.1.9 A continuous economic growth Vvv 1.3.2 Utility vv 1.1.10 D_ Increased unemployment vvv 1.3.3 Developing economyy ” 1.1.11. D Development vvv 1.3.4 Devaluation vv 1.1.12 A mechanisation and automation vvY 14.3.5 Execution vv 1.1.13 D deregulation vvv 1.3.6 Mechanisation vv 1.1.14 A exporting goods vvv 1.3.7 Unemployment vv 1.1.15 B_ Price of imports will fall vv” 1.3.8 Inflation vv 1.1.16 B Subsidies vvv 1.3.9 Globalisation vv 1.1.17 A Localvvv 1.3.10 Coal vv 1.1.18 D general education vvv (10 x 2) (20) 1.1.19 © Supplementary vvv 11.20 D 14%vvv (20 x 3) (60) we TOTAL SECTION A: 100 Copyright reserved 7 Please turn over y

Economics/SG SECTION B Downloaded from hlayiso.com 3 DBE/2012 SCE — Memorandum QUESTION 2: NATIONAL INCOME A 2.2 2.3 2.4 J Copyright reserved 2.1.1 2.1.2 Value added vv Open vv Name THREE sectors of the economy. e Primary sector VW” e Secondary sector VW e Tertiary sector Vv (Any other relevant sector) (Any 3 X 2) DATA RESPONSE 2.3.1 Business cycle Vv 2.3.2 Peak/ Crest V¥Vvv 2.3.3. Downswing / Contraction VvvVv 2.3.4 Trough¥vv¥ 2.3.5 Trend line / long term growth of the economy VVvv” Spending by households in a closed economy. Households spend on the following items: Durable consumer goods “v housing and vehicles v“ Semi durable goods Vv Curtains and bedding vv Non-durable goods Vv food and fuel vv Services YY Transport and electricity vv (4X4) Accept any other relevant facts. If examples only - max 4 marks @ees DEPARTMENT OF BASIC EDUCATION 2012 -06- 25 PRIVATE BAG X 110 PRETORIA 0004 PUBLIC EXAMINATIONS Please turn over (2) (2) (6) (16) [40]

Yb Downloaded from hlayiso.com Economics/SG 4 DBE/2012 SCE — Memorandum QUESTION 3: PRICE FORMATION 3.1 3.1.4 long vv “Deere (2) |) DEPARTMENT OF Bxaie— ? 3.1.2 luxury vv : EDUCATION =~ | (2) 3.2 List any THREE forms of utili u i 2012 -06- 25 ¢ — Utility of form vv PRIVATE BAG x 149 ¢ — Utility of place vv PRETORIA 0004 * Utility of time vv PUBLIC EXAMINATIONS ° — Utility of possession vv Ty SP) (6) 3.3 Study the table 3.3.1 11 000 computers Vvv (3) 3.3.2 R4500 vvv (3) 3.3.3. 17500 computers vvv (3) 3.3.4 Profit motive / Law of supply~vv (3) 3.3.5. e The price at which the quantity demanded equals the quantity suppliedvv e Demand and supply are equal/Prices determined by market forcesvv (Any1x2) (2) 3.4 Name and discuss any FOUR conditions for a perfect market. 3.4.1 There should be a large number of buyers Vv e tt would then not be possible for any one buyer to choose one seller to influence price, through his/her actionsv v e Only a lower price should induce a buyer to choose one seller over anothervY 3.4.2 There should be a large number of sellersvV e Aseller who acts alone should be unable to affect the market price by varying the quantity he/she offers for salevY © The contribution of one seller to the total quantity offered for sale should be only a small percentage of the total market supplyv” 3.4.3 Free access to and from marketsvV e Buyers can enter or leave without any restrictionsY V ¢ Sellers can enter and leave without any interference to the marketv Vv Copyright reserved Please turn over 4 ¥

Downloaded from hlayiso.com Economics/SG 5 DBE/2012 SCE - Memorandum 3.4.4 Products being marketed should be homogeneousvY « products should be identical so that buyers do not turn to substitutesv Vv « Products must be standardized and easy to gradevv 3.4.5 An efficient transport and communication systemvV e Buyers and sellers must be able to communicate easily with each other in the shortest possible tinev” e Publication of prices is essential to keep buyers and sellers aware of market conditionsv v e Rapid and good transport system must be present to convey goods speedily from one place to anothervv e In this way any change to demand and supply will influence the e entire market vv 3.4.6 No preferential treatment or discriminationvY e Buyers and sellers base their action solely on pricevv e« No preference is shown for buying from or selling to any particular person Vv e Identical products will therefore fetch the same price in all marketsv ¥ 3.4.7. Free Competitionv’ e Buyers must be free to buy wherever they want from any firm and in any quantity. vv e Sellers must be free to sell what, how much and where they wishv¥ « There should be no state interference and no price controlv” e Buyers should not collude to obtain lower price nor combine to enforce higher pricesv v « Buyers and sellers should have free access to the market and no forceful measures should be appliedvv 3.4.8 All participants must have perfect knowledge of market conditionsvv e All buyers and sellers must be fully aware of what is happening in any part of the marketvY ¢ Development of technology has enhanced the scope of marketing. vv 2 marks —headings 2. marks for discussions (Any 4 x 4) (2 DEPARTMENT OF BASIC ye EDUCATION 2012 -06- 25 ; PRIVATE BAG X 7110 Copyright reserved i PRETORIA 0004 Please turn over | PUBLIC EXAMINATIONS (16) [40] 4

Downloaded from hlayiso.com Economics/SG QUESTION 4: ECONOMIC AND REGIONAL DEVELOPMENT AND URBANISATION 41 4.2 4.3 44 p 4.1.1 a1. 6 DBE/2012 SCE - Memorandum developing’vv Urbanvv List any THREE characteristics of the informal sector. Working conditions are poor Vv Little protection for workers vv Link with the formal sector” ” PUBLIC EXAMINATIONS . Small scale vv . Contribution to GDP vv DEPARTMENT OF BASIC . Source of income vv EDUCATION . Labour intensive vv . Lack of capital vv * Low evel of training vv 2012 -06- 25 « Low productivity vv PRIVATE BAG X 110 . Low income vv PRETORIA 0064 e e e Accept any other relevant facts (Any 3 x 2) Study the extract below and answer the questions that follow. DATA RESPONSE 4.3.1. Bridging South Africa's poverty gap by stimulating entrepreneurship v/v {giving businesses a return on their corporate social responsibility investments vvv (Any 1 x 3) 43.2 e 4.33 Black Economic Empowerment (BEE) vv” Women-owned vv v Rural and community-based enterprises in becoming sustainable Vv (Any 2 x3) The award was an acknowledgement of their effort to make a difference to the small business sector in South Africa VvY” For assisting in businesses becoming sustainable V vv (Any 1 x 3) 4.3.4 Small, Medium and Micro Enterprises vv Name and discuss any FOUR advantages of urbanisation Economic growth vv e Urbanization is a necessary condition for economic development Vv Benefits of the convergence of people and extensive industry promote growth vv Cities meet many needs of modern people vv Copyright reserved Many things associated with quality of life such as recreational facilities, water and electricity are available in cities vv (2) (3) (6) (3) (2) Please turn over 4 \

Economics/SG eb Copyright reserved Lower cost vv Downloaded from hlayiso.com = Tf DBE/2012 SCE - Memorandum Lower costs are achieved through mass Production vv Higher personal income vv ¢ — Urban dwellers earn higher income comparatively vv Drop in birth rates vv «A higher level of ed ucation and job creations lower the birth rates. vv his results in more people being economically active vv rT ° Accept any other relevant facts Naming Max 8 marks Discussion= Max 8 marks (Any 4 x 4) (16) [40] RIMENT OF BASIC. DEPA EDUCATION } ' 2012 -06- 25 | E BAG X 110 PUBLIC EXAMINATIONS Please turn over o

Economics/SG Downloaded from hlayiso.com 8 DBE/2012 SCE ~ Memorandum QUESTION 5: INTERNATIONAL ECONOMICS 5.1 5.2 5.3 b Copyright reserved Said Four vv 5.1.2 Domestic vv List any THREE reasons for international trade. Capital vv Natural resources Vv Mass production Vv Climate differences vv Effective wants vv Income vv International migration vv Cost differences VV Transport and communication vv Characteristics of labour and the quality of the entrepreneur. v” Established industries vv Topography and soil vv (Accept any other relevant facts) (Any 3 x 2) Study the graphs below and answer the questions that follow. DATA RESPONSE 5.3.1 British Pound/Sterling (£ - the symbol can also be accepted) vvv 5.3.2 Australian Dollar vvv 5.3.3. Canadian Dollar / C-$ vvv 5.3.4 R7910vvv 5.3.5 Exchange rate is the rate at which a currency is exchanged for another currency Vv ~-SEBARTNEN ‘Gua apr, -08- 25 VATE BAG X 119 PRRETORIA 0001 PUBLIC EXAMINATIONS (2) (2) (6) (3) (3) (3) (3) (2) [14] Please turn over 4

Downloaded from hlayiso.com Economics/SG 9 DBE/2012 SCE — Memorandum 5.4 Explain any FOUR factors that create demand for foreign exchange. e Importing Goods ~Y When South Africa imports goods from another country, South Africa is expected to pay that country in their currency and this creates demand for foreign exchange Vv e Services from foreign countries”Yv If South Africa uses the services from other countries South Africa is expected to pay them in their currency” “. E.g. shipping services, insurancevv Payment of interest and dividends vv on foreign capital. vv. Payments of instalments”v on repayments of overseas loans vv e Transfer of capital vv to foreign countries Vv. E.g. short and long-term investments. vv. ¢ Tourists or representatives spending money in foreign countries vv « Any other payment to foreign countries “v that may take place time to time creates demand for foreign exchange’ Vv Accept any other relevant facts PRIVATE BAG X 110 PRETORIA 0004 ar ners nee ; PUBLIC EXAMINATIONS | on eae (Max 4 x 4) [16] ENT OF BASIC [40] DEP AR DUCATION 1 012 -06- 25 | \ L Copyright reserved Please turn over & i

Downloaded from hlayiso.com Economics/SG 10 DEPARTMENT OF BASHB20}2 SCE - Memorandum EDUCATION QUESTION 6: THE STATE 2012 -06- 25 6.1 6.1.1 Increase vv PRIVATE BAG X 110 (2) PRETORIA 0001 6.1.2 SARB vv PUBLIC EXAMINATIONS | (2) 6.2 Name any THREE requirements of a good tax system. ¢ Productive (efficient) vv” ° Elastic/adaptable vv « Economical (streamlined) vv « Certain/Reliable vv * Impartial (equitable, fair) vv e Convenientvv « Simplevv * Must increase national income to its maximum vv (Any 3 x 2) (8) 6.3 Study the pie chart below and answer the questions that follow. 6.3.1 189.5V + 146.9 V+ 112.6v + 121.9” + 130.5v + 90.9 V+ 38.4v + 144.3v = R975 Billionsv/6 marks for the correct answer only. (Maximum 6 marks) (6) 6.3.2 Health vvv/ Welfarevvv/ social grants”vv/, child support grants vvv1, old age pension Yvv accept any relevant examples (Any 1 x 3) (3) 6.3.3. Education vvv (3) 6.3.4 The budget is a document containing the details of the expected income of the government and its estimated expenditure for the following financial year vv” Accept any relevant definition (2) 6.4 Name and discuss any FOUR objectives of the state's economic policy. 6.4.1 Price stability”v e Prices rise when the demand exceeds the supply of goods and prices decreases when the supply exceeds the demand. vv e tis, 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 6.4.2 Full employmentvv (2 Full employment means that all persons who would like to work, ee who are fit to work and who are seeking work should be able to find work. vv ft Copyright reserved Please turn over 4

Downloaded from hlayiso.com Economics/SG 1 DBE/2012 SCE - Memorandum ¢ 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 6.4.3. Economic growth VY e Economic growth means an increase in total production or an increase in the GDP. vv Tax relief will stimulate consumption and production vv 6.4.4 Balance of payment equilibrium vv e \trefers to a position where a favourable ratio exists between the various economic variables ( import, export, capital flows.) vv 6.4.5 Economic equity / Social justice vv e The market mechanism often creates an unequal distribution of income. VY e A more equal distribution of income can be achieved through a progressive tax system and free services to poor. VW (Accept any other relevant facts) Headings max 8 marks Discussion max 8 marks (Any 4 x 4) (16) ; [40] eT ~SERRRTMENT OF BASIC = EDUGATION gni2 -06- 25 IVATE BAG % 110 PTBRETORIA 0001 PUBLIC EXAMINATIONS | iL Copyright reserved Please turn over 4 t

Downloaded from hlayiso.com Economics/SG 12 DBE/2012 SCE -— Memorandum QUESTION 7: ECONOMIC AND REGIONAL DEVELOPMENT, URBANISATION AND THE STATE 7.1 7.1.4 VATV¥Y (2) 7.1.2 Decreasevv (2) 7.2 List any THREE Spatial Development Initiatives (corridors) in South Africa.. 7.2.1. Maputo corridor’Y (2) 7.2.2 Wild coast Development Programme and Fish River SDIvv (2) 7.2.3 Lubombo initiativevY ~SEPARTMENT OF BASIC” (2) t EBUCATION i 7.2.4 West Coast Investment Initiative vv } . i 7.2.5 Platinum SDI / Rustenburg vv 2012 -06- 25 RIVATE 0 7.28 Phalaborwa Corridor vv POMETORIA DOT : BLIC EXAMINATIONS | 7.2.7 Coast-to-coast corridor vv ‘PUB ANS 16) 7.3 Study the pictures below and answer the questions that follow. 7.3.1 Picture A: Urbanisation / local migration/ Movement of people from rural areas to cities VvVvv Picture B: international migration/ Immigration/ Emigration vv “ (Accept any other relevant descriptions) (6) 7.3.2 e Skill shortages VvVvvW e Brain drain vvv¥ e Decrease in GDP VV¥Vv Accept any other relevant facts (Any2x3) (6) 7.3.3 Gauteng vv (2) 7.4 Explain any FOUR advantages of direct taxation. The cost of collection is relatively low” Vv The government directly deduct taxes from the people reduces the cost of collectionv” The taxpayer knows exactly how much he/she has to pay” ” Each year a tax table has been published by the government. This table guides everyone on how much tax to be paid every month and for a year. vv eZ The money due to the state can be estimatedv v’ If the rate of tax is constant, taxes will be increases the national income increases. vv Copyright reserved Please turn over 4 |

Downloaded from hlayiso.com Economics/SG 13 DBE/2012 SCE — Memorandum People who earn their income in one country and spend it else where are also taxed v All those who are earning an income are liable to pay tax before it is going to the account of that individualv v It is not a matter on where the money has been spent. vv Taxes can be levied according to the progressive system of taxation’ V The rate of taxation increases as the taxpayer's income increases. Vv Direct taxation is elastic’ “, because small increases in direct tax produce a great deal of extra income for the state. VV (Accept any other relevant facts) (Any 4 x 4) (16) [40] DEPARTMENT OF BASIC — EDUCATION 2012 -06- 25 PRIVATE BAG X 110 PRETORIA 0001 PUBLIC EXAMINATION: | iz Copyright reserved Please turn over 4 4

Economics/SG Downloaded from hlayiso.com 14 DBE/2012 SCE - Memorandum QUESTION 8: (CHOICE MODULES) IMPORTANT SOUTH AFRICAN ECONOMIC 8.1 8.1.1 8.1.2 Z Copyright reserved TOPICS decrease vv State any TWO factors which decrease the demand for labour. Low growth rate of the economyvv The inability to create sufficient job opportunitiesv “ The lack of new investments Vv” The lack of expansion of existing businesses.vv Closing-down of businesses v (Any 3 X 2) eeeoecee Study the picture below and answer the questions that follow. (a) Congress of South African Trade Union “vv (b) Market forces/collective bargaining/ influence of the state/agreement between employer and employee/ labour brokers VV¥V (Any 4 X 3) Discuss the functions of the industrial court/labour court. (a) The industrial court? labour court performs all the functions of a civil court within labour laws' context as followsvv « 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 (b) The investigation and hearing of cases of: vv 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) o“DEFARTMENT OF ERND/IOR EDUCATION | PRIVATE BAG X 110 PRETORIA 0001 PUBLIC EXAMINATIONS | 2012 -06- 25 | Please turn over (6) (3) (3) (8) At

Downloaded from hlayiso.com Economics/SG 15 DBE/2012 SCE -— Memorandum 8.2 PRODUCTIVITY AND UNEMPLOYMENT 8.2.1 frictionaly v 8.2.2 Name any TWO types of productivity. Labour productivity vv Capital productivity vv Multifactor productivity VW (Any 2 X 2) 8.2.3 Study the picture below and answer the questions that follow. (a) (b) Unemployment vv (Accept any relevant heading) More investments/ motivate more savings/ capital formation/foreign direct investments/ more economic growthy vv (Any 1 x 3) (Accept any other reasonable solutions) 8.2:'4 Discuss the measures to improve productivity. wL Copyright reserved | Awareness of productivity should be established among all South Africans.vv The improvement of productivity should be accepted as a part of the national policy. vv The entire population should endorse the need to improve productivity and be committed to this objective. vw In business, management should take the responsibility of promoting productivity. vv The quality of workforce should be improved. vv In education technical training should receive far more attention, with the view of improving productivity. vw Industrial relation should be sound.. vv” (Accept any other relevant facts) (Any 4 x 2) AND/OR DEPARTMENT OF . BA EDUCATION aa i f 2012 -06- 25 PRIVATE PRETORIA vont° PUBLIC EXAMINATIONS (2) (4) (3) (3) (8) [20} Please turn over 4 Iv

Downloaded from hlayiso.com Economics/SG 16 , DBE/2012 SCE — Memorandum 8.3 INFLATION 8.3.1 cost-push Vv (2) 8.3.2. Name any TWO measures to control inflation. e Monetary measures Vv e Fiscal measures Vv ¥ e Other (non-monetary) measuresv ¥ (Accept specified examples) (Any2X2) (4) 8.3.3 Study the extract below and answer the questions that follow. (a) _ Inflation/ increase in the general price vv” (3) (b) Mostly affected the poor / commuters vWY (3) 8.3.4 Name and discuss any TWO consequences of inflation. e Increase in direct taxation Vv“ Taxpayer's salaries are adjusted from time, to time placing them in higher tax brackets vv e Increase _in_ indirect taxation ~v As the price of goods and services increases indirect taxation (VAT) receipts become higher vv e Increase _in_social- welfare spending ~~” During inflationary periods the state has an obligation to also increase welfare payments such as grants and pensions Vv e Labour dispute vv 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 (Any 2 x 4) (8) AND/OR casemate eam eA IT, SBARTNENT OF BASIC EDUCATION 2012 -06- 25 PRIVATE BAG X 110 PRETORIA 0001 PUBLIC EXAMINATIONS u Copyright reserved Please turn over 4 li

Economics/SG 8.4 | DEPARTNMENT OF BAS! EDUCATION Downloaded from hlayiso.com 17 DBE/2012 SCE ~ Memorandum STRATEGIC RESOURCES 8.4.1 8.4.2 8.4.3 8.4.4 2012 -06- 25 Eskom vv Name any TWO non-agricultural economic uses of water in South Africa. Mining development vv Industrial development vv Flood control vv Provision of public services vv Establishment of recreational facilities vv Decentralization of industries vv (Accept any other relevant facts) (Any 2 x 2) Study the extract below and answer the questions that follow. (a) Biomass VVvv Solar vvv Wind vvv Hydro vvv Waves vvv (Accept any other relevant source / example) (Any 1 x 3) (b) 10000 GWhvvv Briefly discuss the importance of water supply and conservation with regard to the primary sector of the South African economy. Agriculture and irrigation vv 8 The largest single user of water in South Africa vv 2 2 Increase the food production, production of stock feed x8{3} and live stock vv oft= Se = Providing employment for a growing population through BE 2§| _ irrigation farmingvv (Any 2 x 2) Ze go F Mining vv ind South Africa is rich in mineralsvv Without water mining could not adequately fulfil its role as a gL contributor to the economic growth. vv Earning of foreign exchange from mineral exportsv v (Accept any other relevant primary sector ) (Any 2 x 2) TOTAL SECTION B: GRAND TOTAL: Copyright reserved (4) (3) (3) (6) (4) [20] [40] 200 300 wv