# Economics Grade 12 NSC June 2012 Memo (English)

> Grade 12 Economics memorandum from the NSC June 2012 (English), 17 pages. Read online or get the free PDF download, question paper linked when available.

- Page: https://www.hlayiso.com/library/economics-sg-english-june-2012-memo/6183b60b-b805-456f-a6c2-902e50f6eed6
- Updated: 2026-09-27
- Subject: Economics
- Grade: Grade 12
- Language: English
- Document type: Memorandum
- Year: 2012
- Exam period: NSC June
- Curriculum: CAPS
- Pages: 17

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## About this document

Economics · Grade 12 · NSC June · 2012 · English. Memorandum, 17 pages. Read online or download the PDF.

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## Document text

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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 ¢
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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

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Economics/SG

SECTION B

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3 DBE/2012

SCE — Memorandum

QUESTION 2: NATIONAL INCOME

A

2.2

2.3

2.4

J

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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]

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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
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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

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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

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Many things associated with quality of life such as recreational

facilities, water and electricity are available in cities vv

(2)

(3)

(6)

(3)
(2)

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Economics/SG

eb

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Lower cost vv

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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

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8 DBE/2012

SCE ~ Memorandum

QUESTION 5: INTERNATIONAL ECONOMICS

5.1

5.2

5.3

b

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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

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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

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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
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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

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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
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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

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Economics/SG

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14 DBE/2012
SCE - Memorandum

QUESTION 8: (CHOICE MODULES) IMPORTANT SOUTH AFRICAN ECONOMIC

8.1 8.1.1

8.1.2

Z

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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

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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}

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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

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Economics/SG

8.4

|

DEPARTNMENT OF BAS!
EDUCATION

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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:

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(4)

(3)

(3)
(6)

(4)
[20]
[40]

200
300

wv

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- [ECON P1 GR12 MEMO SEPT 2018 English](https://www.hlayiso.com/library/econ-p1-gr12-memo-sept-2018-english/b620ea39-e03a-4808-91b0-a06a2f306e46) — Economics · Memo · 2018 · Eng
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## Collection

- [Grade 12 past papers](https://www.hlayiso.com/grade-12/past-papers)

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