Economics Grade 11 P1 Gauteng November 2018 Question Paper

Downloaded from hlayiso.com GAUTENG DEPARTMENT OF EDUCATION PROVINCIAL EXAMINATION NOVEMBER 2018 GRADE 11 ECONOMICS PAPER 1 TIME: 2 hours MARKS: 150 12 pages P.T.O.

Downloaded from hlayiso.com ECONOMICS (Paper 1) GRADE 11 2 GAUTENG DEPARTMENT OF EDUCATION PROVINCIAL EXAMINATION ECONOMICS (Paper 1) TIME: 2 hours MARKS: 150 INSTRUCTIONS AND INFORMATION Read the following carefully before answering the questions. 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. Number the answers correctly according to the numbering system used in this question paper. 3. Write the number of the question above each answer. 4. Read the questions carefully. 5. Start each question on a NEW page. 6. Leave 2 – 3 lines between sub-sections of questions. 7. 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. 8. Answer only the required number of questions. Answers in excess of the required number will NOT be marked. 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 (Paper 1) GRADE 11 3 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 The size of the sectors of an economy is measured in terms of their contribution to the … A GDP. B GNI. C GNP. D GPS. 1.1.2 Decision-making within the market economy is ... A concentrated. B decentralised. C autocratic. D centralised. 1.1.3 The rate at which capital formation takes place indicates economic ... A transformation. B democratisation. C development. D equity. 1.1.4 The telecommunications regulatory authority of South Africa is known as ... A IDASA. B ICASA. C SABC. D NAPTOSA. 1.1.5 The Reserve Bank uses the ... policy to influence aggregate money supply. A fiscal B budgetary C demand and supply D monetary P.T.O.

Downloaded from hlayiso.com ECONOMICS (Paper 1) GRADE 11 4 1.1.6 The standard of living of a population is best described by the ... A per capita income. B low economic growth. C a decrease in expenditure. D secondary education. 1.1.7 The nationwide government intervention plan to create employment for the poor and vulnerable is called the ... A Industrial Policy Action Plan. B Affirmative Action. C Expanded Public Works Programme. D Black Economic Empowerment (BEE). 1.1.8 The primary objective of NEPAD is to ... A stop wars. B vote in elections. C eradicate poverty. D support protests. (8 x 2) (16) 1.2 Choose a description from COLUMN B that matches an item in COLUMN A. Write only the letter (A – I) next to the question number (1.2.1 – 1.2.8) in the ANSWER BOOK. COLUMN A COLUMN B 1.2.1 Factors of production A trade agreement between a group of emerging markets 1.2.2 Macroeconomics B education and health 1.2.3 Market economy C reflects the demographic and gender 1.2.4 Transport infrastructure composition of a country 1.2.5 BRICS D economic aggregates 1.2.6 Employment equity E the economic system used in South Africa 1.2.7 Privatisation F robots & train rails 1.2.8 Social indicators G inputs into the production process H selling of state-owned enterprises to private owners I resolves basic economic problems through market forces (8 x 1) (8) P.T.O.

Downloaded from hlayiso.com ECONOMICS (Paper 1) GRADE 11 5 1.3 Identify the concept described in each of the following statements. Write only the term next to the question number (1.3.1 – 1.3.6) in the ANSWER BOOK. Abbreviations and acronyms will NOT be accepted. 1.3.1 The sum total of expenditure on goods and services by residents of a country 1.3.2 The owners of the factors of production 1.3.3 The sector that contributes the most to the GDP in South Africa and creates many jobs 1.3.4 The knowledge that is unique to a given culture or community 1.3.5 The index that measures the inequality of income 1.3.6 The price a borrower has to pay for purchasing on credit (6 x 1) (6) SECTION A: [30] P.T.O.

Downloaded from hlayiso.com ECONOMICS (Paper 1) GRADE 11 6 SECTION B Answer any TWO of the three questions from this section in the ANSWER BOOK. QUESTION 2: MACROECONOMICS 40 MARKS – 30 MINUTES 2.1 Answer the following questions. 2.1.1 Name any TWO examples of Parastatals (SOEs). (2 x 1) (2) 2.1.2 What impact will an increase in interest rates have on the poor? (1 x 2) (2) 2.2 Study the information below and answer the questions that follow. EXODUS OF COMMERCIAL FARMERS A THREAT TO SOUTH AFRICA’S FOOD SECURITY Agricultural experts are warning that the farming sector in South Africa is in trouble and have appealed to the government to act and to prevent commercial farmers from leaving. Currently one dairy farmer is leaving the industry every week, because they are not making money. They have become high-cost producers. South Africa as a country is beginning to import more and more. The long-term effect is that food will be more expensive. The poor will suffer as they spend 40 – 50% of their income on food. At a time when food security is a big issue in the world, it is certainly a problem that South Africa’s farmers are leaving the country. [Adapted from Sunday Times (Sipho Masondo)] 2.2.1 Give ONE example of input-costs to dairy farmers in South Africa. (1) 2.2.2 What negative effect will the exodus of farmers have on the consumer? (1) 2.2.3 Briefly explain the concept commercial farming. (2) 2.2.4 Briefly describe the primary sector. (2) 2.2.5 Why is the exodus of commercial farmers a threat to South Africa’s economy? (2 x 2) (4) P.T.O.

Downloaded from hlayiso.com ECONOMICS (Paper 1) GRADE 11 7 2.3 Study the table below and answer the questions that follow: GROSS VALUE ADDED (GVA) ACCORDING TO THE TYPE OF ECONOMIC ACTIVITY At current prices At constant 2010 prices 2016 2016 (Rm) (Rm) Primary sector 398 770 Primary sector 291 143 Secondary sector 815 816 Secondary sector 556 935 Tertiary sector 2 654 870 Tertiary sector 1 945 596 GVA @ basic prices 3 869 456 GVA @ basic prices 2 793 674 [Source: SARB Quarterly Bulletin, March 2017] 2.3.1 Which method was used in the calculation of the gross value added (GVA) above? (1) 2.3.2 Which year is currently used as the base year by the SARB? (1) 2.3.3 Briefly explain the concept Gross Value Added. (2) 2.3.4 Briefly describe the term Gross National Product (GNP). (2) 2.3.5 Distinguish between GDP at current prices and GDP at constant prices. (2 x 2) (4) 2.4 Differentiate between money capital and real capital. (2 x 4) (8) 2.5 Why do many countries prefer to use the mixed economic system? (8) [40] QUESTION 3: ECONOMIC PURSUITS 40 MARKS – 30 MINUTES 3.1 Answer the following questions. 3.1.1 List TWO economic indicators used to compare South Africa with the rest of Africa. (2 x 1) (2) 3.1.2 How can technology accelerate economic development in South Africa? (1 x 2) (2) P.T.O.

Downloaded from hlayiso.com ECONOMICS (Paper 1) GRADE 11 8 3.2 Study the information below and answer the questions that follow. LIFE EXPECTANCY TRENDS IN AFRICA Africa Month – our continent celebrates from Ras ben Sakka in Tunisia to Cape Agulhas in South Africa Life expectancy surged by over 20 percent in many countries between 2000 and 2016, according to World Bank figures. Much of this is due to more affordable medication and the availability of antiretroviral drugs. LIFE EXPECTANCY LIFE EXPECTANCY YEAR AT BIRTH WITHOUT AT BIRTH WITH HIV HIV 2014 65,5 52,1 2015 66,3 56,0 2016 67,9 58,7 2017 67,1 61,2 [Source: www.statssa.gov.za/Public Sector Manager – May 2017] 3.2.1 Name the type of indicator under which life expectancy is classified. (1) 3.2.2 Give ONE reason for low life expectancy levels in Africa. (1) 3.2.3 Explain the term life expectancy. (2) 3.2.4 What impact will HIV / AIDS have on productivity levels? (2) 3.2.5 Evaluate the factors which brought about the improvement in life expectancy from 52,1 years to 61,2 years? (2 x 2) (4) P.T.O.

Downloaded from hlayiso.com ECONOMICS (Paper 1) GRADE 11 9 3.3 Study the information below and answer the questions that follow. RURAL-URBAN MIGRATION THE RESULT OF PULL AND PUSH FACTORS The process of urbanisation is connected to levels of development in a country in terms of housing, size of families and how people live. Although it is believed that urbanisation leads to better living conditions, it is not always the case. In many instances, it is easier for rural dwellers to meet subsistence needs. [Source: Google images.com] 3.3.1 List ONE positive effect of rural-urban migration. (1) 3.3.2 Name ONE word for rural-urban migration. (1) 3.3.3 Which push factor causes Xenophobia in big cities? (2) 3.3.4 Why is it not always the case that urbanisation leads to better living conditions? (2) 3.3.5 What can the South African government do to prevent rural-urban migration? (2 x 2) (4) 3.4 Discuss money as a medium of exchange and a store of value. (2 x 4) (8) 3.5 Evaluate the effectiveness of education in terms of service delivery. (8) [40] P.T.O.

Downloaded from hlayiso.com ECONOMICS (Paper 1) GRADE 11 10 QUESTION 4: MACROECONOMICS & ECONOMIC PURSUITS 40 MARKS– 30 MINUTES 4.1 Answer the following questions. 4.1.1 Name TWO methods used to calculate national income aggregates. (2 x 1) (2) 4.1.2 What is the use of the Gini-coefficient? (1 x 2) (2) 4.2 Study the information below and answer the questions that follow. SA has an appetite for fast-food Forget German cars and luxury watches, as fast-food consumption could be the most reliable indicator of prosperity for the middle class in South Africa. Investec chief economist, Annabel Bishop, said recently that real incomes per person are contracting. The Gross National Income has declined, not because of inflation, but because economic activity is grinding slower. Business confidence is low and unemployment remains in the region of 25 %. Why then, is fast-food consumption still climbing? According to Insight Survey, one of the reasons is an increase in the number of women in the labour force. This means more double-income homes and more disposable cash overall. According to BMI, South Africa is also typified by “high meat consumption” and a “strong eat-out culture”, both of which are driving factors for fast-food companies. [Source: mg.co.za/business] 4.2.1 List ONE example of non-durable goods in the fast-food industry. (1) 4.2.2 What is contributing to the growth in fast-food consumption in South Africa? (1) 4.2.3 What impact will more disposable income have on production? (2) 4.2.4 Explain briefly the concept GNI (Gross National Income). (2) 4.2.5 Explain TWO economic activities that are happening during a contracting phase of the economy. (2 x 2) (4) P.T.O.

Downloaded from hlayiso.com ECONOMICS (Paper 1) GRADE 11 11 4.3 Study the information below and answer the questions that follow. Land Reform – a pillar of radical economic transformation Maleshoane Mokhochane-Moeti, a cattle and crop farmer from Wesselsbron in the Free State, said Operation Phakisa (Hurry up in Sesotho) is the answer towards growing the agricultural economy. She acquired land through the land redistribution programme in 2005 and this was when she fell in love with agriculture. She said that, as a black African woman, it was an honour to be part of the launch. During the launch, South Africa’s Department of Agriculture, Forestry and Fisheries signed a protocol agreement with China . “The agreement will give effect to the export of South African beef to China and unlock opportunities for our black smallholder farmers to access the Chinese market.” [Source: Public Sector Manager – May 2017] 4.3.1 Give ONE example of crop farming. (1) 4.3.2 Which trade agreement does South Africa and China form part of? (1) 4.3.3 How could the poor benefit from land reform? (2) 4.3.4 Briefly explain the main focus area of Operation Phakisa. (2) 4.3.5 Differentiate between land redistribution and land restitution. (2 x 2) (4) 4.4 Explain the methods used to create wealth through savings. (4 x 2) (8) 4.5 How can procurement benefit the marginalised people in South Africa? (8) [40] SECTION B: [80] P.T.O.

Downloaded from hlayiso.com ECONOMICS (Paper 1) GRADE 11 12 SECTION C Answer any ONE of the two questions from this section in the ANSWER BOOK. Your answer will be assessed as follows: MARK STRUCTURE OF ESSAY ALLOCATION Introduction Max.2 Body: Main part: Discuss in detail / in-depth discussion / Examine Max. 26 Discuss / Analyse / Compare / Evaluate / Distinguish / 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 Conclusion: Any relevant higher order conclusion that should include:  A brief summary of what has been discussed / analysed without repeating facts already mentioned in the body  An opinion or valued judgement on the facts discussed Max. 2  Additional support information to strengthen the discussion / analysis  A contradictory viewpoint with motivation, if so required  Recommendations TOTAL 40 QUESTION 5: MACROECONOMICS 40 MARKS – 40 MINUTES  Discuss the economic importance of infrastructure in South Africa. (26)  How can we solve the water crisis in South Africa? (10) QUESTION 6: ECONOMIC PURSUITS 40 MARKS – 40 MINUTES  Discuss in detail the characteristics of developing countries. (26)  Evaluate income inequality with the aid of a graph. (10) SECTION C: [40] TOTAL: 150 END