Economics Grade 11 P1 Gauteng November 2017 Question Paper

Downloaded from hlayiso.com GAUTENG DEPARTMENT OF EDUCATION PROVINCIAL EXAMINATION NOVEMBER 2017 GRADE 11 ECONOMICS PAPER 1 TIME: 2 hours MARKS: 150 13 pages P.T.O.

Downloaded from hlayiso.com ECONOMICS 2 Paper 1 GRADE 11 GAUTENG DEPARTMENT OF EDUCATION PROVINCIAL EXAMINATION ECONOMICS Paper 1 TIME: 2 hours MARKS: 150 INSTRUCTIONS AND INFORMATION 1. Answer FOUR questions as follows in the ANSWER BOOK:  SECTION A: COMPULSORY  SECTION B: Answer TWO of the THREE questions.  SECTION C: Answer ONE of the TWO questions. 2. Answer only the required number of questions. Answers in excess of the required number will NOT be marked. 3. Number the answers correctly according to the numbering system used in this question paper. 4. Write the question number above each answer. 5. Read the questions carefully. 6. Start EACH question on a NEW page. 7. Leave 2 – 3 lines between sub-sections of questions. 8. Answer the questions in full sentences and ensure that the format, content and context of your responses comply with the cognitive requirements of the questions. 9. Use only black or blue ink. 10. Non-programmable pocket calculators may be used. 11. Write neatly and legibly. P.T.O.

Downloaded from hlayiso.com ECONOMICS 3 Paper 1 GRADE 11 SECTION A (COMPULSORY) QUESTION 1: MULTIPLE-CHOICE QUESTIONS 30 MARKS – 20 MINUTES 1.1 Various options are provided as possible answers to the following questions. Choose the correct answer and write only the letter (A – D) next to the question number (1.1.1 – 1.1.8) in the ANSWER BOOK. 1.1.1 Resources are called ... in the production process. A inputs B outputs C intermediate goods D final goods 1.1.2 When Walmart invested in Massmart it was called ... A capital widening. B capital deepening. C foreign direct investment. D economic growth. 1.1.3 An advantage of the centrally controlled economy is … A choice. B innovation. C risk. D full employment. 1.1.4 SANRAL is responsible for the maintenance of … in South Africa. A ports and airports B rail networks C national roads D school buildings 1.1.5 The … is used to measure the standard of living in a country. A level of per capita income B inflation level C balance of payments D circular flow 1.1.6 The Millennium Development Goals included … A better higher education. B reducing child mortality. C promoting better skills among youth. D lowering interest rates. P.T.O.

Downloaded from hlayiso.com ECONOMICS 4 Paper 1 GRADE 11 1.1.7 A graph that shows how uneven the distribution of income is between households is called the … A Laffer curve. B Phillips curve. C Circular Flow Model. D Lorenz curve. 1.1.8 The … is the price at which the South African Reserve Bank lends money to other banks. A prime lending rate B repurchase rate C profit D dividend (8 x 2) (16) 1.2 Choose a description from COLUMN B that matches an item in COLUMN A. Write only the letter (A – J) next to the question number (1.2.1 – 1.2.8) in the ANSWER BOOK. COLUMN A COLUMN B 1.2.1 MTEF A Enterprises which are controlled by the authorities 1.2.2 Disinvestment B State intervention to protect workers against 1.2.3 DBSA unfair labour practices 1.2.4 SOE C The relationship between input and output 1.2.5 Minimum wages D A policy aimed to increase the ownership of agricultural land of black people in the 1.2.6 Land Redistribution economy Programme E A process where foreign countries withdraw 1.2.7 Productivity businesses from a country 1.2.8 National Income F This document outlines how government proposes to finance its expenditure in a given period. G The sum total of factor income in a country H This institution was established in 1983 to promote economic development in Southern Africa. I Black Economic Empowerment J Affirmative Action (8 x 1) (8) P.T.O.

Downloaded from hlayiso.com ECONOMICS 5 Paper 1 GRADE 11 1.3 Give ONE term for each of the following descriptions. Write only the term next to the question number (1.3.1 – 1.3.6) in the ANSWER BOOK. 1.3.1 Income per member of the population of a country 1.3.2 This sector is associated with activities that include street sales and handicrafts. 1.3.3 GDP at basic prices, plus taxes on products, minus subsidies on products 1.3.4 The partial or complete removal of customs tariffs on trade within the borders of each country 1.3.5 The industry that lends small amounts to those who are unable to borrow from normal banks 1.3.6 The organisation that promotes economic cooperation and integration among Southern African countries (6 x 1) (6) TOTAL SECTION A: 30 P.T.O.

Downloaded from hlayiso.com ECONOMICS 6 Paper 1 GRADE 11 SECTION B Answer any TWO of the three questions in this section in the ANSWER BOOK. QUESTION 2: MACROECONOMICS 40 MARKS – 30 MINUTES 2.1 Answer the following questions. 2.1.1 Name TWO groups which contribute to capital formation in a country. (2 x 1) (2) 2.1.2 Why are all economies, mixed systems? (1 x 2) (2) 2.2 Study the table below and answer the questions that follow. EXTRACT FROM NATIONAL ACCOUNTS OF SOUTH AFRICA AT CURRENT PRICES R million (INCOME METHOD) 2016 GDP at basic prices 2 850 000 Taxes on products 210 000 Subsidies on products 95 195 Gross domestic product (GDP) at market prices 2 964 805 Primary income from the rest of the world 48 501 Primary income to the rest of the world A Gross national product (GNP) at market prices 2 978 806 [Source: SARB Quarterly Bulletin, March 2016] 2.2.1 Give an example of a primary income from the rest of the world. (1) 2.2.2 Do we add a subsidy to the basic prices or subtract it? (1) 2.2.3 Describe the concept gross domestic product. (2) 2.2.4 Explain the difference between current prices and constant prices. (4) 2.2.5 Calculate the value of A in the table. (Show all calculations) (2) P.T.O.

Downloaded from hlayiso.com ECONOMICS 7 Paper 1 GRADE 11 2.3 Study the following cartoon and answer the questions that follow. [Source: Twitter/Budget speech/2017] 2.3.1 What economic message is conveyed in the above cartoon? (1) 2.3.2 What would indicate that social services are not delivered efficiently? (1) 2.3.3 Briefly describe the national budget. (2) 2.3.4 In your own opinion, how can corruption be eliminated? (2) 2.3.5 How do consumers spend their income in the national economy? (2 x 2) (4) 2.4 Differentiate between capital widening and capital deepening. (2 x 4) (8) 2.5 In which way does the government act as the central decision-maker in a centrally planned economy? (8) [40] P.T.O.

Downloaded from hlayiso.com ECONOMICS 8 Paper 1 GRADE 11 QUESTION 3: ECONOMIC PURSUITS 40 MARKS – 30 MINUTES 3.1 Answer the following questions. 3.1.1 Name TWO social indicators related to income distribution. (2 x 1) (2) 3.1.2 Why do you think the government should spend more on infrastructure development? (1 x 2) (2) 3.2 Study the information below and answer the questions that follow. „The development gap between the North and South has become a problem for the whole world to manage.‟ This statement has become somewhat outdated as the gap between the rich and the poor countries is closing. Opportunities for more equal trade and flow of capital have allowed for some developing countrings to develop faster. The availability and use of modern technology in agriculture and manufacturing and trade agreements, like the Africa Growth and Opportunity Act (AGOA), have added further value to the overall change. [Adapted from SAIRR, October 2016] 3.2.1 Identify, from the information above, the trade agreement between Africa and the United States of America. (1) 3.2.2 Discuss, from the above extract, the reason why some developing countries are reducing the North/South gap. (1) 3.2.3 Briefly explain the trade relations between the countries in the North and South divide. (2 x 2) (4) P.T.O.

Downloaded from hlayiso.com ECONOMICS 9 Paper 1 GRADE 11 3.2.4 Why will the Gini-coefficient of countries in the North differ from that of countries in the South? (2 x 2) (4) 3.3 Study the following diagram and answer the questions that follow: Never been costlier to take loans High cost of small loans Total current cost of credit on short-term credit transactions, as a percentage AMOUNT OF INITIAL LOAN: TOTAL COST OF CREDIT R200 over one month 46% (R92) Interest R10 + Initiation fee R32 + Monthly service fee R50 R500 over one month 31% Interest R25 + Initiation fee R79 + Monthly service fee R50 New draft credit regulations could cause the cost of debt to skyrocket, hitting the poor the hardest. If implemented, these new costs will have a devastating effect on low income consumers. [Source: Mail & Guardian Business, August 28 - September 3, 2015 3.3.1 Identify the cost responsible for the skyrocketing of small money loans? (1) 3.3.2 Which costs will remain constant? (1) 3.3.3 Describe the effect on the cost of the loan if the monthly service fee is removed? (2) 3.3.4 Calculate the total cost of credit for a R500 loan over one month. (2) 3.3.5 What impact will this high cost on small money loans have on low income earners? (2 x 2) (4) 3.4 Discuss the aims of Small Enterprise Development Agencies (SEDA) and the National Skills Development Strategy (NSDS) as strategies for development. (2 x 4) (8) 3.5 How can investment in social (human) capital improve economic development in South Africa? (8) [40] P.T.O.

Downloaded from hlayiso.com ECONOMICS 10 Paper 1 GRADE 11 QUESTION 4: MACROECONOMICS & ECONOMIC PURSUITS 40 MARKS – 30 MINUTES 4.1 Answer the following questions. 4.1.1 Name TWO economic leakages. (2 x 1) (2) 4.1.2 What impact does the Expanded Public Works Programme have on your local community? (1 x 2) (2) 4.2 Study the table below and answer the questions that follow. GROSS VALUE ADDED BY KIND OF ECONOMIC ACTIVITY AT CURRENT PRICES R m 2013 2014 2015 Primary sector 362 194 369 178 371 069 Secondary sector 664 180 730 764 751 451 Tertiary sector 2 164 586 2 320 375 2 467 292 Gross value added at basic 3 190 960 3 420 317 3 589 812 prices [Source: SARB Quarterly bulletin – December 2016] 4.2.1 Name the sector under which electricity gas and water is classified. (1) 4.2.2 Which sector contributed the most to the Gross Value Added at basic prices for 2015? (1) 4.2.3 Briefly describe the following statement: “The contribution by the primary sector has increased, but at a diminishing rate.” (2) 4.2.4 How does the primary sector contribute towards the economy? (2) 4.2.5 What is the relationship between the secondary sector and the tertiary sector? (2 x 2) (4) P.T.O.

Downloaded from hlayiso.com ECONOMICS 11 Paper 1 GRADE 11 4.3 Read the extract below and answer the questions that follow. THE NATIONAL DEVELOPMENT PLAN IS OBVIOUSLY THE BEST EVER DEVELOPMENT STATEMENT IT WILL SURELY BENEFIT THE SOUTH AFRICAN ECONOMY Though the NPD, just like GEAR, NSDS, NGP, which outlines a plan to address issues in SA, is not perfect, it provides a road map to where government would like us to be in 2030. The NDP provides an opportunity for South Africans to work together to confront our challenges and build a better future for ourselves and future generations. [Adapted from NDP and Mail & Guardian, February 2015] 4.3.1 Identify TWO previous strategies in the information above that were used to improve economic growth in South Africa. (2 x 1) (2) 4.3.2 What is the main aim of the NDP? (2) 4.3.3 What negative impact will the implementation of the NDP have on taxpayers? (2) 4.3.4 How successful will the implementation of the NDP be in the South African economy? (2 x 2) (4) 4.4 Differentiate between economic growth and economic development. (2 x 4) (8) 4.5 How does the South African government promote and develop indigenous knowledge systems? (8) [40] TOTAL SECTION B: 80 P.T.O.

Downloaded from hlayiso.com ECONOMICS 12 Paper 1 GRADE 11 SECTION C Answer any ONE of the two questions from this section in the ANSWER BOOK. Your answer will be assessed as follows: STRUCTURE OF ESSAY MARK ALLOCATION Introduction The introduction is a lower-order response.  A good starting point would be to determine the main concept related to the question topic Max. 2  Do not include any part of the question in your introduction  Do not repeat any part of the introduction in the body  Avoid saying in the introduction what you are going to discuss in the body Body: Main part: Discuss in detail / In-depth discussion / Examine / Max. 26 Critically discuss / Analyse / Compare / Evaluate / Distinguish / Differentiate Explain / Assess / Debate Additional part: Give own opinion / Critically discuss / Evaluate / Critically evaluate / Draw a graph and explain / Use the graph given and explain / Complete the given graph / Calculate / Max. 10 Deduce / Compare / Explain / Distinguish / Interpret / Briefly debate / How? / Suggest Conclusion Any higher-order conclusion should include: A brief summary of what has been discussed without repeating facts already mentioned in the body Max. 2  Any opinion or value judgment on the facts discussed  Additional support information to strengthen the discussion / analysis  A contradictory viewpoint with motivation, if required  Recommendation / suggestions TOTAL 40 P.T.O.

Downloaded from hlayiso.com ECONOMICS 13 Paper 1 GRADE 11 QUESTION 5: MACROECONOMICS 40 MARKS – 40 MINUTES The multiple needs of mankind are satisfied with the use of factors of production.  Discuss the economic importance of the following factors of production for the producers of goods and services: - Labour - Capital - Entrepreneurship (26 marks)  How has the land redistribution programmes (policies) contributed towards accommodating the marginalised in the economy? (10 marks) QUESTION 6: ECONOMIC PURSUITS 40 MARKS – 40 MINUTES A central bank has functions and responsibilities that are not carried out by other financial institutions.  Discuss the main functions of the SARB. (26 marks)  What causes bank failures? (10 marks) TOTAL SECTION C: 40 TOTAL: 150 END