Economics Grade 12 NSC June 2012 Question Paper (English)

basic education Department: Basic Education REPUBLIC OF SOUTH AFRICA SENIOR CERTIFICATE EXAMINATION ECONOMICS STANDARD GRADE 2012 MARKS: 300 TIME: 3 hours ECONOMICS SG 4042E AUNT 40420E This question paper consists of 18 pages. X@5 wn Copyright reserved GAUTENG Please turn over

Downloaded from hlayiso.com Economics/SG 2 DBE/2012 SCE INSTRUCTIONS AND INFORMATION Read the instructions/information below carefully before answering the questions. 7 This question paper consists of EIGHT questions. Answer only SIX questions. 2. This question paper consists of TWO sections, namely SECTION A and SECTION B. SECTION A: QUESTION 1 is COMPULSORY and must be answered by ALL the candidates in the ANSWER BOOK. SECTION B: Answer any FIVE other questions from this section in the ANSWER BOOK. 3. If you answer more than the required number of questions, only the required number of questions will be marked in the order in which they appear in the ANSWER BOOK. ALL work you do NOT want to be marked must be clearly crossed out. 4. Use only black or blue ink. Answers in pencil will NOT be marked. 5. Read the questions carefully and start the answer to EACH question on a NEW page. 6. Leave 2 to 3 lines between subsections of questions. 7 Number the answers correctly according to the numbering system used in this question paper. 8. Answer the questions in full sentences. 9. Non-programmable calculators may be used. 10. Write neatly and legibly. Copygnt reserved UAT OC ALO A Pease tim over

Economics/SG SECTION A Downloaded from hlayiso.com 3 SCE QUESTION 1 (COMPULSORY) 1.1 MULTIPLE-CHOICE QUESTIONS DBE/2012 Four possible options are provided as answers to the following questions. Write only the letter (A-D) next to the question number (1.1.1-1.1.20) in the ANSWER BOOK, for example 1.1.21 D. NATIONAL INCOME 1.1.1 1.1.3 Copyright reserved The national income shows how the ... participants in the production process. A B c D Sustained economic growth is possible through ... A B Cc D One of the shortcomings of national income figures is ... A B Cc D national expenditure national consumption national product global product an increase in the population growth rate. decreasing foreign investment. technological advancement. decreasing the labour force. nominal and real national income. changes in the general price level. production in tertiary industries. production in secondary industries. is divided among the The instrument used to measure the prosperity levels of countries is known as the ... 0UNUND> gross domestic product. gross national product. net national income. per capita national income. GAUTENG Please turn over (3) (3) (3) (3)

Economics/SG Downloaded from hlayiso.com 4 SCE PRICE FORMATION oe 1.1.6 A drop in the price of bread will result in a/an ... A B c D A shift of the supply curve to the right indicates a/an ... A B Cc D decrease in the quantity of bread demanded. decrease in the demand for margarine. no change in the demand for bread. increase in the quantity of bread demanded. increase in demand. decrease in the quantity demanded. increase in supply. decrease in the quantity supplied. DBE/2012 The market for finished products is known as the ... market. A B Cc D consumer factor producer capital One of the characteristics of a perfect market is that the price of a product is determined by ... A B Cc D demand. market forces. supply. producers. ECONOMIC AND REGIONAL DEVELOPMENT AND URBANISATION 1.1.9 1.1.10 Copyright reserved An objective of regional development is ... A B Cc D continuous economic growth. to achieve maximum profit. to create more unemployment. to identify the most developed regions. Which ONE of the following is a disadvantage of urbanisation? v0NDD An improved standard of living People are close to their workplace Generally more information Increased unemployment GAUTENG Please turn over (3) (3) (3) (3) (3) (3)

Downloaded from hlayiso.com Economics/SG 5 DBE/2012 SCE 1.1.11. An improvement in the general standard of living of people is known as economic ... A reform. B recession. Cc counter production. D development. (3) 1.1.12 Developed economies are characterised by ... A mechanisation and automation. B low levels of productivity. Cc dependency on agriculture. D insufficient housing. (3) INTERNATIONAL ECONOMICS 1.1.13 The policy which government has introduced to assist informal sector development is known as ... A privatisation. B nationalisation. Cc deregulation. D regulation. (3) 1.1.14 The supply of foreign exchange is determined by ... A exporting goods. B payment of interest on foreign loans. Cc investing in other countries. D importing goods. (3) 1.1.15 Should the value of the rand strengthen against other currencies, then the ... A price of imports will rise. B price of imports will fall. Cc price of exports will fall. D local standard of living will decrease. (3) 1.1.16 Cash payments that are made to exporters to encourage exports are known as ... A incentives. B subsidies. Cc loans. D donations. (3) Comvitesomed; NLA AA Peet ove

Downloaded from hlayiso.com DBE/2012 Economics/SG 6 SCE THE STATE 1.1.17 To supply electricity and water to the people is the responsibility of ... government. A local B provincial Cc regional D central 1.1.18 An example of merit goods or services is ... A museums. B parks. Cc post offices. D general education. 1.1.19 The ... budget makes provision for unforeseen circumstances. A medium term B surplus Cc supplementary D partial 1.1.20 The current VAT rate in South Africa is ...%. 8 10 12 14 jwKek iP Copymantresenved TTL LIL Please turn over (3) (3) (3) (3)

Downloaded from hlayiso.com Economics/SG 7 DBE/2012 SCE 1.2 Indicate whether the following statements are TRUE or FALSE. Write only ‘true’ or 'false' next to the question number (1.2.1—1.2.10) in the ANSWER BOOK. 1.2.1 The economic cycle begins in the production sector. 1.2.2 South Africa's national income figures are absolutely accurate. 1.2.3. The development of markets depends on the nature of business conducted. 1.2.4 The means to satisfy human wants are limited. 1.2.5 The IDZ will assist with provisioning of housing for all citizens of South Africa. 1.2.6 Uneven development of different regions brings greater prosperity in South Africa. 1.2.7 International trade is possible on the Internet. 1.2.8 The balance of payments is a systematic record of all transactions of one country with the rest of the world. 1.2.9 The national budget is presented to the parliament by the president of South Africa. 1.2.10 The burden of personal income tax cannot easily be shifted. Copyright reserved CAUTCANAE A AE AE A hina GAUTENG (2) (2) (2) (2) (2) (2) (2) (2) (2) (2)

Downloaded from hlayiso.com Economics/SG 8 DBE/2012 SCE a6 Give ONE word/term for each of the following descriptions by choosing a word/term from the list below. Write only the word/term next to the question number (1.3.1-1.3.10) in the ANSWER BOOK. devaluation; transfer payments; value; utility; mechanisation; globalisation; coal; unemployment; employment; execution; revaluation; developing economy; oil; inflation 1.3.1 Payments for which no productive services are being rendered 1.3.2 The ability of a product to satisfy human wants 1.3.3. A high population growth rate 1.3.4 | Reduction in the value of a country's currency due to government intervention 1.3.5 The third stage of the financial procedure of the national (main) budget 1.3.6 Machines do the work that was previously done by people 1.3.7. Workers want to work but cannot find jobs 1.3.8 Anincrease in the general price level 1.3.9 The worldwide movement of goods, services and social and commercial activities 1.3.10 The most important non-renewable energy source in South Africa TOTAL SECTION A: Conyntosoved NL Pease um or (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) 100

Downloaded from hlayiso.com Economics/SG 9 DBE/2012 SCE SECTION B Answer any FIVE questions from this section in the ANSWER BOOK. QUESTION 2: NATIONAL INCOME 2.1 Choose the correct word(s) from those given in brackets. Write only the word(s) next to the question number (2.1.1—2.1.2) in the ANSWER BOOK. 2.1.1 The production method used in determining national income is also known as the (factor-income/value-added) approach. 2.1.2 South Africa has a/an (open/closed) economy. 2.2 Name THREE sectors of the economy. 2.3 Study the graph below and answer the questions that follow. (2) (2) (6) Economic activities = T D Recovery Time 2.3.1 Name the phenomenon that is depicted in the above graph. 2.3.2 What is represented by A? 2.3.3. What is represented by AC? 2.3.4. What is represented by C? 2.3.5 What is represented by T? 2.4 Household spending is classified into FOUR groups. Explain these FOUR categories of spending by households in a closed economy. cepromewmes AN HT Na (2) (3) (3) (3) (3) (16) [40]

Downloaded from hlayiso.com Economics/SG 10 DBE/2012 _ QUESTION 3: PRICE FORMATION 3.1 Choose the correct word(s) from those given in brackets. Write only the word(s) next to the question number (3.1.1-3.1.2) in the ANSWER BOOK. 3.1.1 Full adjustment of supply to the price changes takes place in the (short/long) term. (2) 3.1.2 Wants that refer to convenience and comfort are called (luxury/essential) wants. (2) 3.2 List any THREE forms of utility (6) 3.3 Study the table below and answer the questions that follow. DEMAND AND SUPPLY OF COMPUTERS PRICE(RAND) QUANTITY QUANTITY SUPPLIED DEMANDED 3 800 3 400 25 000 4 500 4 200 21 000 5 300 10 100 16 000 6 200 11 000 11 000 7 200 16 000 7 000 9300 21 500 4 000 9 800 26 000 3 200 3.3.1 Determine the equilibrium quantity of computers. (3) 3.3.2 Indicate the price at which consumers bought 21 000 computers. (3) 3.3.3. Calculate the excess supply of computers at a price of R9 300. (3) 3.3.4 | Why do producers supply more at higher prices? (3) 3.3.5 Define the term equilibrium price. (2) 3.4 Name and discuss any FOUR conditions for a perfect market. (16) [40] Copyright reserved CATTERY OT ATA A Mease tm over GAUTENG

Downloaded from hlayiso.com Economics/SG 11 DBE/2012 SCE QUESTION 4: ECONOMIC AND REGIONAL DEVELOPMENT AND URBANISATION 4.1 Choose the correct word(s) from those given in brackets. Write only the word(s) next to the question number (4.1.1-4.1.2) in the ANSWER BOOK. 4.1.1 A low level of capital formation is a characteristic of a (developing/developed) country. (2) 4.1.2 Squatter camps are more common in the (rural/urban) areas. (2) 4.2 List any THREE characteristics of the informal sector. (6) 4.3 Study the extract below and answer the questions that follow. WOMEN SCOOP THE SPOILS AT ANNUAL SMALL BUSINESS AWARDS FETOLA overcame stiff competition to take the service sector prize at the 2011 Africa SMME awards held in Johannesburg. The company started with the goal of bridging South Africa's poverty gap by stimulating entrepreneurship and giving businesses a return on their corporate social responsibility investments. The company assist black-owned, women-owned, rural and community-based enterprises in becoming sustainable. This award is a fantastic acknowledgement of our effort to make a difference to the small business sector in South Africa. [Adapted from Business Report, 20 October 2011] 4.3.1. What is the major aim of the company above? (3) 4.3.2 State any TWO types of enterprises to which the company give assistance. (6) 4.3.3. On what basis did the company receive this award? (3) 4.3.4 Write out the abbreviation SMME. (2) 44 Name and discuss any FOUR advantages of urbanisation qi a Comyn esomed! AA ETE Pesotum ot

Downloaded from hlayiso.com Economics/SG 12 DBE/2012 SCE QUESTION 5: INTERNATIONAL ECONOMICS 7 Choose the correct word(s) from those given in brackets. Write only the word(s) next to the question number (5.1.1-5.1.2) in the ANSWER BOOK. 5.1.1 The balance of payments consists of (four/five) sub-accounts. (2) 5.1.2 Import substitution promotes (domestic/foreign) businesses. (2) 5.2 Give any THREE reasons for international trade. (6) 5.3 Study the graphs below and answer the questions that follow. EXCHANGE RATE 14 = 120 a — as ae N | ray Qo i | ao EXCHANGE RATE (RAND) a CURRENCIES [Adapted from rainbow nation.com, 6 November 201 1] §.3.1 Which ONE of the above currencies is the most expensive one? (3) 5.3.2 Write out the abbreviation AU$. (3) 5.3.3. Which currency will you use if you travel to Canada? (3) 5.3.4 If an American tourist had US$1 000, how much rand could she/he have bought with it? (3) 5.3.5 Define the term exchange rate. (2) 5.4 Explain any FOUR factors that create demand for foreign exchange. (16) [40] copes NA A Pessetan oe

Downloaded from hlayiso.com Economics/SG 13 DBE/2012 SCE QUESTION 6: THE STATE 6.1 6.2 6.3 6.4 Choose the correct word(s) from those given in brackets. Write only the word(s) next to the question number (6.1.1-6.1.2) in the ANSWER BOOK. 6.1.1 Privatisation will lead to a/an (increase/decrease) in direct foreign investment. (2) 6.1.2 | The Central Bank of South Africa is known as the (SARB/SARS). (2) Name any THREE requirements of a good tax system. (6) Study the pie chart below and answer the questions that follow. EXPENDITURE BY THE STATE 2011/12 R BILLION OTHER EDUCATION 144.3 189.5 DEFENCE} 38.4 PUBLIC SOCIAL ORDER AND 146.9 SAFETY 90.9 HEALTH 112.6 ECONOMIC AFFAIRS HOUSING 130.5 121.9 [Source: Department of National Treasury, Budget 2011] 6.3.1 Calculate the total budgeted expenditure by the state. (6) 6.3.2 Give ONE example of an item that would be under social expenditure. (3) 6.3.3. Which category gets the most share of the state fund? (3) 6.3.4 Define the term budget. (2) Name and discuss any FOUR objectives of the state's economic policy. (16) [40] i TO Peace um or

Downloaded from hlayiso.com Economics/SG 14 DBE/2012 SCE QUESTION 7: ECONOMIC AND REGIONAL DEVELOPMENT, URBANISATION AND THE STATE 7.1 Choose the correct word(s) from those given in brackets. Write only the word(s) next to the question number (7.1.1—7.1.2) in the ANSWER BOOK. 7.1.1. An example of taxation that can be shifted is (PAYE/VAT). (2) 7.1.2 An effect of HIV/Aids on the South African society is a/an (increase/decrease) in state revenue. (2) 7.2 List any THREE Spatial Development Initiatives (corridors) in South Africa. (6) ie Study the pictures below and answer the questions that follow. PICTURE A PICTURE B =a [Source: Enjoy Economics} Ush1| Identify the phenomena depicted in pictures A and B. (6) 7.3.2 Name any TWO disadvantages of the phenomenon depicted in picture B. (6) 7.3.3. Which is the most urbanised province in South Africa? (2) 7A Explain any FOUR advantages of direct taxation. \ 3 Copyright reserved CUI AAAI AO A Messe tim over

Downloaded from hlayiso.com Economics/SG 15 DBE/2012 SCE QUESTION 8: (CHOICE MODULES) IMPORTANT SOUTH AFRICAN ECONOMIC TOPICS Choose any TWO of the following topics. Write clear headings to indicate the topics of your choice. 8.1 LABOUR RELATIONS 8.1.1 Choose the correct word from those given in brackets. Write only the word in the ANSWER BOOK. The supply of labour will (decrease/increase) through emigration. (2) 8.1.2 State any TWO factors that will reduce the demand for labour. (4) 8.1.3 Study the picture below and answer the questions that follow. We demand a 12% wage increase a \ COSATU DEMANDS A 12% WAGE INCREASE (a) Write out the abbreviation COSATU. (3) (b) How are wages determined in South Africa? (3) 8.1.4 Discuss the functions of the industrial court/labour court. (8) [20] AND/OR Convio esoved! AU ALE Pesotum ove

Downloaded from hlayiso.com Economics/SG 16 SCE DBE/2012 8.2 PRODUCTIVITY AND UNEMPLOYMENT 8.2.1. Choose the correct word from those given in brackets. Write only the word in the ANSWER BOOK. Unemployment that occurs as a result of insufficient information is known as (frictional/seasonal) unemployment. (2) 8.2.2 Name any TWO types of productivity. (4) 8.2.3. Study the picture below and answer the questions that follow. Ls ae s 8 S | Ce [Source: Stats SA 2011] (a) Give a suitable heading for the above picture. (3) (b) Name ONE solution to the problem depicted in the above picture. (3) 8.2.4 Discuss the measures to improve productivity. (8) [20] AND/OR Copyright reserved UAT OO AA Mease lr over

Economics/SG Downloaded from hlayiso.com us DBE/2012 SCE 8.3 INFLATION 8.3.1 8.3.2 8.3.3 8.3.4 Copyright reserved Choose the correct word from those given in brackets. Write only the word in the ANSWER BOOK. An increase in fuel prices will result in (demand-pull/cost-push) inflation. Name any TWO measures to control inflation. Study the extract below and answer the questions that follow. PETROL PRICE MEANS 'NO RESPITE FOR CONSUMERS’ The latest petrol price hike that came into effect on 2 November 2011 means that consumers will have to bite the bullet as 'there'll be no respite’. ‘The petrol price hike this month will probably add on about point two per cent at least directly to food inflation — but indirectly maybe a little more as it'll ripple through the entire consumer price basket.' South Africa consists of a very large geographical area and the bulk of transport takes place by road. 'So the price of petrol affects just about anything that is transported.’ The latest petrol price hike had put inflation ‘that much closer to the upper end of the South African Reserve Bank's (SARB) target range’. 'The petrol price hike means people have less money in their pockets and there will be some impact on consumer spending. This just adds to inflationary pressures in the economy which will mostly affect the poor.' [Adapted from Business Week, 2 November 2011] (a) What is the immediate effect of an increase in the petrol price? (b) | Who are most affected by the increase in the petrol price? Name and discuss any TWO consequences of inflation. AND/OR PTT LILO TL ease tam over GAUTENG (2) (4) (3) (8) [20]

Economics/SG Downloaded from hlayiso.com 18 DBE/2012 SCE 8.4 STRATEGIC RESOURCES 8.4.1 8.4.2 8.4.3 8.4.4 Copyright reserved Choose the correct word from those given in brackets. Write only the word in the ANSWER BOOK. The national electricity supplier in South Africa is (Sasol/Eskom). Name any TWO non-agricultural economic uses of water in South Africa. Study the extract below and answer the questions that follow. PROMOTING CLEAN AND RENEWABLE ENERGY SOURCES Promoting the development and usage of clean and renewable energy resources remains a key priority for the Department of Energy. Similarly, energy-efficiency programmes are prioritised and the department has developed a solar water-heating framework, which consolidates all solar water-heating programmes currently run by various municipalities, public entities and the private sector. These initiatives assist the department to achieve its target of producing 10 000 GWh of electricity from renewable sources by 2013, and to improve energy efficiency by 12% by 2015. [Source: Department of Energy, Strategic Plan 2011/2012] (a) | Name any ONE renewable energy source in South Africa. (b) | What is the target of generating electricity from renewable energy sources by 2013? Briefly discuss the importance of water supply and conservation with regard to the primary sector of the South African economy. TOTAL SECTION B: GRAND TOTAL: GAUTENG (2) (4) (3) (3) (8) [20] [40] 200 300