# Economics Grade 12 NSC June 2014 Question Paper (English) > Grade 12 Economics question paper from the NSC June 2014 (English), 17 pages. Read online or get the free PDF download, memo linked when available. - Page: https://www.hlayiso.com/library/economics-sg-english-june-2014-qp/62eec20e-f3c4-43f1-b2c2-f04317190e49 - Updated: 2026-09-27 - Subject: Economics - Grade: Grade 12 - Language: English - Document type: Question paper - Year: 2014 - Exam period: NSC June - Curriculum: CAPS - Pages: 17 Breadcrumbs: [Home](https://www.hlayiso.com/) › [Library](https://www.hlayiso.com/library) › [Grade 12](https://www.hlayiso.com/library/grade-12) › [Economics](https://www.hlayiso.com/library/grade-12/economics) › [Economics Grade 12 NSC June 2014 Question Paper (English)](https://www.hlayiso.com/library/economics-sg-english-june-2014-qp/62eec20e-f3c4-43f1-b2c2-f04317190e49) ## About this document Economics · Grade 12 · NSC June · 2014 · English. Question paper, 17 pages. Read online or download the PDF. Read it free online on the page above; download the PDF from there. ## Document text Text extracted from the PDF. Layout, diagrams and tables may not survive extraction. ### Page 1 Downloaded from hlayiso.com SENIOR CERTIFICATE EXAMINATION ECONOMICS STANDARD GRADE 2014 MARKS: 300 TIME: 3 hours This question paper consists of 17 pages. 2 Copyright reserved Please turn over ### Page 2 Downloaded from hlayiso.com Economics/SG 2 DBE/2014 SCE INSTRUCTIONS AND INFORMATION Read the instructions/information below carefully before answering the questions. 1. 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 in the ANSWER BOOK by ALL the candidates. SECTION B: Answer any FIVE 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 two to three 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 pocket calculators may be used. 10. Write neatly and legibly. Copyright reserved Please turn over ### Page 3 Downloaded from hlayiso.com Economics/SG 3 DBE/2014 SCE SECTION A QUESTION 1 (COMPULSORY) 1.1 MULTIPLE-CHOICE QUESTIONS Four options are given as possible answers to the following questions. Choose the answer and write only the letter (A–D) next to the question number (1.1.1–1.1.20) in the ANSWER BOOK. NATIONAL INCOME 1.1.1 The services of voluntary workers such as backyard mechanics, lead to a/an … of national income. A overestimation B underestimation C revaluation D overvaluation (3) 1.1.2 The flow of money from the consumption sector to the production sector for buying of goods and services is known as national … A production. B expenditure. C income. D budget. (3) 1.1.3 The difference between income and expenditure is known as ... A wages. B profits. C savings. D salaries. (3) 1.1.4 A … can be regarded as part of national income. A child's pocket money B student grant C worker's wage in a firm D disability grant (3) PRICE FORMATION 1.1.5 An increase in the price of oranges will lead to … A an increase in the demand for oranges. B a decrease in the demand for oranges. C no change in the quantity demanded. D a decrease in the quantity demanded for apples. (3) Copyright reserved Please turn over ### Page 4 Downloaded from hlayiso.com Economics/SG 4 DBE/2014 SCE 1.1.6 A demand curve has a … slope. A negative B positive C straight D parallel (3) 1.1.7 Changes in production techniques increase … A demand. B supply. C price. D labour. (3) 1.1.8 If South Africa has a very wet rainy season, the demand curve for umbrellas will shift to the … A left. B right. C middle. D inside. (3) ECONOMIC DEVELOPMENT, REGIONAL DEVELOPMENT AND URBANISATION 1.1.9 The economy of South Africa can best be described as a … economy. A developed B developing C backward D first (3) 1.1.10 In developing countries, exports are dominated by … A raw materials. B semi-finished goods. C finished goods. D services. (3) 1.1.11 The broad aim of regional development is to ensure the … development of a region. A agricultural B farming C aerial D spatial (3) Copyright reserved Please turn over ### Page 5 Downloaded from hlayiso.com Economics/SG 5 DBE/2014 SCE 1.1.12 An example of an informal trader is a … A furniture shop. B bank. C post office. D vendor selling vegetables on the street. (3) INTERNATIONAL ECONOMICS 1.1.13 If a country's total exports exceed its total imports the … will be favourable. A conservation B goods C balance of payments D terms of trade (3) 1.1.14 The balance of trade is the difference between … imports and exports. A merchandise B capital C luxury D gold (3) 1.1.15 A deliberate measure taken by the state to decrease the value of its currency is known as … A appreciation. B depreciation. C devaluation. D revaluation. (3) 1.1.16 Dumping takes place when goods from the country of origin are … A sold in another country at a high price. B sold in another country at a price below average cost. C donated to relieve poverty in another country. D more expensive in another country. (3) THE STATE 1.1.17 When the state borrows money to finance a deficit in the revenue account it incurs a ... debt. A public B private C consumer D foreign (3) Copyright reserved Please turn over ### Page 6 Downloaded from hlayiso.com Economics/SG 6 DBE/2014 SCE 1.1.18 Government's policy of adjusting tax scales to regulate aggregate money supply is referred to as … policy. A financial B fiscal C monetary D economic (3) 1.1.19 The … is not a function of the state. A maintenance of law and order B organisation of a soccer tournament C promotion of social welfare D conservation and protection of natural resources (3) 1.1.20 Street lights are an example of a … good. A private B special C foreign D public (3) 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 various sectors of the total economy of a country are connected to one another by transactions. (2) 1.2.2 The production method looks at how goods and services are bought and consumed. (2) 1.2.3 Economics concerns itself with free goods only. (2) 1.2.4 The downward slope of the demand curve shows that the quantity demanded decreases as prices increase. (2) 1.2.5 The formation of capital is an essential element for economic growth and development in a country. (2) 1.2.6 Urbanisation is associated with the levels of economic development in a country. (2) 1.2.7 The ratio at which the rand is exchanged for the dollar is known as the exchange rate. (2) 1.2.8 Protection implies various incentives offered to industrialists as a means of increasing their sales abroad. (2) Copyright reserved Please turn over ### Page 7 Downloaded from hlayiso.com Economics/SG 7 DBE/2014 SCE 1.2.9 The Auditor-General checks and audits all the books of all private businesses. (2) 1.2.10 Income tax is the only source of income for the government. (2) 1.3 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. DBSA; budget; national income; import substitution; disinvestment; surplus; informal sector; perfect market; subsidies; GDP(E); tax avoidance; per capita income; income statement 1.3.1 Income per member of the population of a country (2) 1.3.2 The sum total of the remuneration of the factors of production of a country (2) 1.3.3 More products are produced than consumed (2) 1.3.4 A market form in which no single producer or consumer can influence the market price (2) 1.3.5 This institution was established in 1983 to promote economic development in Southern Africa (2) 1.3.6 This sector is associated with activities that include street sales and handicrafts (2) 1.3.7 A process where foreign countries withdraw businesses from a country (2) 1.3.8 A situation where goods previously imported are replaced with goods manufactured locally (2) 1.3.9 This document outlines how government proposes to finance its expenditure in a given period (2) 1.3.10 The attempt to reduce the tax burden through legal means (2) TOTAL SECTION A: 100 Copyright reserved Please turn over ### Page 8 Downloaded from hlayiso.com Economics/SG 8 DBE/2014 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) 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 GDP(E) measures total (expenditure/income) on the final goods and services produced in the domestic economy. (2) 2.1.2 (Investment/Economic development) is known as additions to a country's stock of capital. (2) 2.2 Name the THREE methods used to determine national income. (6) 2.3 Study the graph below and answer the questions that follow. BUSINESS CYCLES Index of economic activities E A Trend line F B D G C 0 Time 2.3.1 What is represented by A? (3) 2.3.2 What is represented by C? (3) 2.3.3 What does A to C represent? (3) 2.3.4 What does C to E represent? (3) 2.3.5 Define the concept business cycle. (2) 2.4 Explain expenditure by households in a closed economy. (16) [40] Copyright reserved Please turn over ### Page 9 Downloaded from hlayiso.com Economics/SG 9 DBE/2014 SCE QUESTION 3: PRICE FORMATION 3.1 Choose the correct word in brackets. Write only the word next to the question number (3.1.1–3.1.2) in the ANSWER BOOK. 3.1.1 A commodity is made more useful when its (form/colour) is changed. (2) 3.1.2 Goods that do not command a price are known as (economic/free) goods. (2) 3.2 State any THREE factors that affect changes in supply. (6) 3.3 Study the graph of the demand and supply of books below and answer the questions that follow. P D D1 S E P1 E1 Price P2 e S D D1 0 Q2 Q1 Quantity 3.3.1 What was the original equilibrium price? (3) 3.3.2 What is the new equilibrium quantity? (3) 3.3.3 As a result of increased television sales, the demand for books decreased. Which curve represents the new demand for books? (3) 3.3.4 Define the law of supply. (3) 3.3.5 What is the relation between price and demand? (2) 3.4 Name and discuss any FOUR conditions for a perfect market. (16) [40] Copyright reserved Please turn over ### Page 10 Downloaded from hlayiso.com Economics/SG 10 DBE/2014 SCE QUESTION 4: ECONOMIC DEVELOPMENT, REGIONAL DEVELOPMENT AND URBANISATION 4.1 Choose the correct word in brackets. Write only the word next to the question number (4.1.1–4.1.2) in the ANSWER BOOK. 4.1.1 The main aim of Spatial Development Initiatives is to create (employment/infrastructure). (2) 4.1.2 (Underemployment/Unemployment) is the inefficient utilisation of the full work capacity of a person. (2) 4.2 State any THREE disadvantages of urbanisation. (6) 4.3 Study the extract below and answer the questions that follow. OBAMA, ZUMA AT ONE ON AFRICA GROWTH South African President Jacob Zuma and US President Barack Obama emerged from their meeting in Pretoria, speaking in one voice on increased trade and investment in Africa. Their talks focused on boosting trade, business ties and regional security. Emphasising South Africa's position as a financial and logistical gateway to the continent, Zuma tabled various projects ranging across infrastructure development, youth skills development, information and communication technology, agriculture and the green economy. He said investment in these projects underpinned South Africa's drive for regional integration, industrialisation and the localisation of supply and manufacturing. Obama said the US welcomes the attention Africa is receiving. 'It will help incorporate Africa into the global economy'. Obama noted that relationships should be mutually beneficial and that Africans had to ask questions such as, 'Are they hiring African workers?' and 'How much [is the] profit?' He noted that the continent had been heavily exploited for its raw materials. [From: http://www.southafrica.info, 20 June 2013] 4.3.1 What did the talks between the two leaders focus on? (3) 4.3.2 What relationship should exist between Africa and the rest of the world according to the extract above? (3) 4.3.3 Identify a phrase from the extract that addresses human resource development. (3) 4.3.4 What is meant by localisation of supply and manufacturing? (3) 4.3.5 Explain the term economic development. (2) 4.4 Name and describe any FOUR characteristics of the informal sector. (16) [40] Copyright reserved Please turn over ### Page 11 Downloaded from hlayiso.com Economics/SG 11 DBE/2014 SCE QUESTION 5: INTERNATIONAL ECONOMICS 5.1 Choose the correct word(s) 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 (Import duties/Import quotas) mean that only a certain quantity of a product is permitted to enter a country. (2) 5.1.2 A/An (open/closed) economy refers to an economy in which foreign trade is a significant share of commercial activity. (2) 5.2 State any THREE arguments in favour of protection. (6) 5.3 Study the extract below and answer the questions that follow. SOUTH AFRICAN TRADE DEFICIT NARROWS The South African trade deficit narrowed to ZAR 11,03 billion in May 2013, from ZAR 15,91 billion in April 2013, due to lower imports of mineral products. Exports reached ZAR 66,48 billion, while imports decreased from April to May by ZAR 4,80 billion to ZAR 77,51 billion. [From: SARB, Quarterly Bulletin, June 2013] 5.3.1 What do you understand by the term trade deficit? (3) 5.3.2 Name TWO items that usually appear in the current account of the balance of payments. (6) 5.3.3 Name the factor that led to the decrease in the trade deficit. (2) 5.3.4 By how much did the trade deficit decrease between April and May 2013? (3) 5.4 Explain any FOUR causes of international trade. (16) [40] Copyright reserved Please turn over ### Page 12 Downloaded from hlayiso.com Economics/SG 12 DBE/2014 SCE QUESTION 6: THE STATE 6.1 Choose the correct word in brackets. Write only the word next to the question number (6.1.1–6.1.2) in the ANSWER BOOK. 6.1.1 The MTEF projections are prepared for a (three/four)-year period. (2) 6.1.2 Actions of the state to achieve certain economic objectives are called (economic/fiscal) policy. (2) 6.2 State any THREE requirements of a good tax system. (6) 6.3 Study the extract below and answer the questions that follow. CONSUMERS FACE DOUBLE HIT The threat by the government to raise taxes because of what the deputy finance minister called 'revenue coming in below expectations' coupled with the expected increase of 61c per litre in the petrol price on 7 August 2013 is going to have a devastating impact on consumers. The deputy minister said: 'There is a negative impact on revenue collection.' The CEO of Debt Rescue said that 'while the increase in the price of fuel is going to hit everybody, the tax increase is going to hit the emerging middle class especially hard, pushing large numbers of them back into poverty.' The CEO said: 'We're already seeing a dramatic growth in the number of people who are seeking protection from their creditors by going under debt review [and] a significant growth in the number of consumers who are having their salaries docked by garnishee orders and are blacklisted because of judgments against them. 'We can only guess what the tax increase is going to be but it will unquestionably hit middle class consumers hard.' [From: m.news24.com/fin24/Economy, 9 July 2013] 6.3.1 Give TWO examples of direct taxes. (6) 6.3.2 Give ONE reason why government may want to increase taxes. (3) 6.3.3 What will be the impact of higher taxes and the high fuel price on the middle class? (3) 6.3.4 Who presents the budget in the parliament? (2) 6.4 Name and discuss any FOUR aims/objectives of the state's macroeconomic policy. (16) [40] Copyright reserved Please turn over ### Page 13 Downloaded from hlayiso.com Economics/SG 13 DBE/2014 SCE QUESTION 7: PRICE FORMATION AND THE STATE 7.1 Choose the correct word in brackets. Write only the word next to the question number (7.1.1–7.1.2) in the ANSWER BOOK. 7.1.1 The spiritual needs which are satisfied by religious institutions and churches are called (cultural/intellectual) wants. (2) 7.1.2 The central bank of South Africa is known as the (SARB/SARS). (2) 7.2 State the THREE factors to be considered when drafting the national budget. (6) 7.3 Study the income tax table below and answer the questions that follow. Taxable income % tax paid by A % tax paid by B % tax paid by C (per month) R15 000 17% 22% 19% R17 000 19% 22% 17% R20 000 25% 22% 15% R22 000 30% 22% 13% R30 000 35% 22% 12% R40 000 45% 22% 10% 7.3.1 What system of taxation applies to B? (3) 7.3.2 Calculate the amount of tax paid by C if his/her taxable income is R30 000 per month. Show your calculations. (4) 7.3.3 State the tax system which is fairest, according to the table above. Motivate your answer. (5) 7.3.4 What is the personal income tax system applied in South Africa commonly known as? (2) 7.4 Name and explain any FOUR factors affecting changes in human wants. (16) [40] Copyright reserved Please turn over ### Page 14 Downloaded from hlayiso.com Economics/SG 14 DBE/2014 SCE QUESTION 8: CHOICE TOPICS IMPORTANT SOUTH AFRICAN ECONOMIC TOPICS Choose any TWO of the following topics. Use clear headings to indicate the topic of your choice. 8.1 LABOUR RELATIONS 8.1.1 Choose the correct word in brackets. Write only the word next to the question number (8.1.1) in the ANSWER BOOK. If the demand for goods and services decreases, the demand for labour will (increase/decrease). (2) 8.1.2 Name any TWO factors that determine the demand for labour. (4) 8.1.3 Study the extract below and answer the questions that follow. LABOUR DISPUTE Rival unions agree on one thing: that the job grading system in the gold mining sector is at the root of the problem and needs to be re- evaluated and overhauled. The NUM wanted surface workers to earn a minimum of R7 000 a month, and underground and open-cast workers R8 000 a month. The Association of Mineworkers and Construction Unions (AMCU) tabled a 150% increase for entry-level underground workers. The Chamber of Mines have however said that they are in no financial position to offer the unions what they want, saying that such a process would threaten jobs, undermine the recognition of skills and promote discontent on the mines. [From: www.sabreakingnews.co.za, 6 August, 2013] (a) What is the root of the problem in the mining sector? (3) (b) Which union is demanding the highest increase in wages? (3) 8.1.4 Briefly explain the functions of labour unions. (8) [20] AND/OR Copyright reserved Please turn over ### Page 15 Downloaded from hlayiso.com Economics/SG 15 DBE/2014 SCE 8.2 PRODUCTIVITY AND UNEMPLOYMENT 8.2.1 Choose the correct word in brackets. Write only the word next to the question number (8.2.1) in the ANSWER BOOK. South Africa has an (over/under)-supply of unskilled labour. (2) 8.2.2 State any TWO advantages of productivity. (4) 8.2.3 Study the extract below and answer the questions that follow. EMPLOYERS WARN OF JOB CUTS UNLESS PRODUCTIVITY RISES South African employers are warning of job losses in the long term if the current climate of high wage increases, unaccompanied by higher productivity levels, continues. 'Wage increases without accompanying productivity increases are not sustainable and in the long run will lead to job losses. It will also not help in the government's efforts to create 5 million job opportunities by 2020 and to double the figure by 2030'. [From: www.bdlive.co.za/national/labour, 3 July 2013] (a) How do we calculate productivity? (3) (b) What, according to the text, happens if high wage demands are not matched by an increase in productivity? (3) 8.2.4 Briefly discuss structural unemployment. (8) [20] AND/OR Copyright reserved Please turn over ### Page 16 Downloaded from hlayiso.com Economics/SG 16 DBE/2014 SCE 8.3 INFLATION 8.3.1 Choose the correct word in brackets. Write only the word in the ANSWER BOOK. Inflation is a (once-off/sustained) increase in the general price level. (2) 8.3.2 State any TWO consequences of inflation. (4) 8.3.3 Study the extract below and answer the questions that follow. INFLATION The year-on-year inflation rate as measured by the consumer price index (CPI) for all urban areas was 5,9 per cent in April 2013, unchanged from the previous two months. However, the drivers of the overall rate changed somewhat. Food price inflation measured 6,3 per cent in April, reversing the downward trend that had prevailed since November 2012. The contribution of food to overall inflation remained unchanged at 0,9 percentage points, while housing and utilities contributed 1,4 percentage points. Administered prices increased by 8,9 per cent, and by 7,8 per cent excluding petrol. [From: SARB: Statement of the Monetary Policy Committee, 23 May 2013] (a) What was the inflation rate in April 2013? (3) (b) What item contributed the most to the inflation rate? (3) 8.3.4 Briefly discuss the characteristics of demand-pull inflation. (8) [20] AND/OR Copyright reserved Please turn over ### Page 17 Downloaded from hlayiso.com Economics/SG 17 DBE/2014 SCE 8.4 STRATEGIC RESOURCES 8.4.1 Choose the correct word in brackets. Write only the word next to the question number (8.4.1) in the ANSWER BOOK. South Africa has (limited/unlimited) water supplies. (2) 8.4.2 Name any TWO renewable energy sources. (4) 8.4.3 Study the extract below and answer the questions that follow. OVER 600 000 HOUSEHOLDS TO BE ELECTRIFIED Treasury allocations to boost the number of electrified households will increase from R3,5 billion to R5,7 billion over the next three years, according to the 2013 budget. The money will be used on infrastructure to ensure 645 000 households are connected to the electricity grid over this period. From 1 April 2013, a total of 200 000 households will be targeted for electrification each year for the next three years. 'Eighteen new bulk substations will also be built and 30 substations will be upgraded,' according to a budget document. Eskom will be given R3,5 billion to install solar water geysers, while municipalities will receive R538 million to install energy efficient lighting and technologies. [From: www.timeslive.co.za, 27 February 2013 and http://www.bdlive.co.za/business/energy, 10 July 2013] (a) Name ONE economic benefit of electrification of households for the South African economy. (3) (b) Name ONE initiative of government to save electricity. (3) 8.4.4 Explain the importance of water supply to primary sector industries in South Africa. 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