Economics Grade 9 Gauteng June 2019 Memo (English)

GAUTENG DEPARTMENT OF EDUCATION PROVINCIAL EXAMINATION JUNE 2019 GRADE 9 ECONOMIC AND MANAGEMENT SCIENCES MARKING GUIDELINES 11 pages 1

MARKING ECONOMIC AND MANAGEMENT GUIDELINES SCIENCES GRADE 9 GAUTENG DEPARTMENT OF EDUCATION PROVINCIAL EXAMINATION ECONOMIC AND MANAGEMENT SCIENCES MARKING GUIDELINE SECTION A QUESTION 1 1.1 MULTIPLE-CHOICE 1.1.1 B 1.1.2 C  1.1.3 D  1.1.4 A  1.1.5 A  10 1.2 TRUE OR FALSE 1.2.1 False  1.2.2 True  1.2.3 False  1.2.4 False  1.2.5 True  10 1.3 WORD BANK 1.3.1 labour  1.3.2 advertising  1.3.3 National Credit Act  1.3.4 sales  1.3.5 skilled  10 1.4 MATCHING ITEMS 1.4.1 B 1.4.2 D  1.4.3 E 1.4.4 A  1.4.5 C  10 TOTAL SECTION A: 40 2

MARKING ECONOMIC AND MANAGEMENT GUIDELINE SCIENCES GRADE 9 SECTION B QUESTION 2 – ECONOMIC SYSTEMS 2.1 Economic Problem: Is how to satisfy unlimited wants with limited resources.  (2) 2.2 2.2.1 Market economy (1) 2.2.2 Planned economy (1) 2.3 CHARACTERISTICS OF A MARKET ECONOMY  Private individuals own and control the factors of production.   Entrepreneurs decide what to produce.  Entrepreneurs decide how production will take place.  Individuals decide what goods and services to consume. (Mark only ONE relevant answer correct for 2 marks / any other correct characteristic) (2) 2.4 DISADVANTAGES OF A PLANNED ECONOMY  People do not have choices.   Entrepreneurial skills and innovation are not rewarded.   People earn the same amount whether they work hard or if they are lazy.  Productivity is often low because businesses do not aim to make profits.  If productivity and production decrease people will not be able to satisfy their needs.  There is a limited range of products because there is no competition. (Mark only TWO relevant answers correct for 2 marks each / any other correct characteristics) (4) 3

MARKING ECONOMIC AND MANAGEMENT GUIDELINE SCIENCES GRADE 9 2.5 Mixed economies were formed to solve the problems associated with free market and centrally planned economic systems.  (2) 2.6 PROBLEMS LINKED WITH THE GLOBAL ECONOMY  Free trade in goods and services could make it difficult for producers in developing countries to compete with producers in developed countries.   The free movement of labour can cause skilled workers from developing countries to move to more developed countries in search of higher wages.  Free movement of capital can lead to foreign investors exploiting labour by paying very low wages. This leads to the creation of sweatshops in developing countries. (Mark only ONE relevant answer correct / Any other correct and relevant answers) (2) 2.7 Government  (1) [15] 15 4

MARKING ECONOMIC AND MANAGEMENT GUIDELINE SCIENCES GRADE 9 QUESTION 3 – THE CIRCULAR FLOW 3.1 A Goods market (1) B Goods and services (2) C Spend on goods and services (1) D Income (sales revenue) (1) E Government spending (1) 3.2  Businesses provide goods and services to households.   Households spend on the goods and services sold.  Businesses receive an income also known as sales revenue. (Mark only ONE relevant answer correct) (2) 3.3  Natural resources / Land  Labour  Capital  Entrepreneurship (4) 3.4  Government receives an income in the form of taxes from households and businesses.   Government provides public services to both the households and businesses of South Africa. These include services such as healthcare, transport, security and education.  The government also buys goods and services from businesses. For example, state hospitals buy linen from bedding shops and they require the services of electricians and plumbers to do maintenance and fix things in the hospitals.  Government also receives services from households in the form of labour. For example: teachers, police and office workers supply the government with labour through the work they do. (Mark only ONE relevant answer correct / Any other relevant answer) (2) 3.5 Wages / salaries  (1) 15 5

MARKING ECONOMIC AND MANAGEMENT GUIDELINE SCIENCES GRADE 9 QUESTION 4 : PRICE THEORY 4.1 MARKET DEMAND AND SUPPLY FOR PANCAKES D 30 S 25 PRICE (R) E 20  15 10 D S Q  0 150 250 350 450 550 650 750 850  QUANTITY  (7) 4.2 Equilibrium point  (2) 4.3 P= R20 Q= 450 (2) 4.4 LAW OF SUPPLY  When prices increase, supply increases.   When prices decrease, supply decreases.  (2) 6

MARKING ECONOMIC AND MANAGEMENT GUIDELINE SCIENCES GRADE 9 4.5 FACTORS INFLUENCING THE DEMAND FOR PANCAKES  The price of the product: The quantity of a product consumers buy depends on the price of the product.   For example, if the price of chocolates is low, consumers buy more chocolates, and if the price is high, they will buy less chocolates.  The amount of money consumers have to spend / disposable income: How much of a product consumers buy depends on how much money they have. If consumers’ incomes are high, they buy more of a product, and if their incomes are low, they buy less.  Advertising: The advertising of the product determines how much of the product consumers buy. If advertising is effective, consumers demand more of the product. If there is no advertising, consumers demand less of the product.  The price of other products: The price of other products can also affect how much of a product consumers purchase. For example, if the price of petrol increases, this could affect consumers’ demand for cars.  Weather conditions: The weather can also affect the quantity of a product that consumers buy. If, for example, the weather is cold and wet, the demand for warm coats and raincoats would be high. If, however, the weather is hot and dry, the demand for coats and raincoats would be low.  Fashion: Fashion and trends influence how much of a product consumers purchase. For example, if skateboards became fashionable, then the demand for skateboards will increase. (Any ONE relevant answer) (2) TOTAL SECTION B: 45 15 7

MARKING ECONOMIC AND MANAGEMENT GUIDELINES SCIENCES GRADE 9 SECTION C FINANCIAL LITERACY QUESTION 5: JOURNALS AND ACCOUNTING EQUATION 5.1 CASH RECEIPTS JOURNAL OF SANDY JEWELLERS – FEBRUARY 2019 CRJ1 Sundry Accounts Doc Analysis Cost of Debtors Day Details Fol Bank Sales No. of Receipts Sales Control Amount Fol Details CRT 11 02 Sales  13 280 - 13 280 - 13 280 - 8 300 - 83 27 D. Poole  4 800 - - 4 800 - 84 M. Saint  6 200 11 000  6 200 Rent income (12) 5.2 CASH PAYMENTS JOURNAL OF SANDY JEWELLERS – FEBRUARY 2019 CPJ 1 Doc Trading Stock Sundry Accounts No. Day Name of Payee Fol Bank Telephone Amount Fol Details 101 16 Cipro Jewellers  28 800 - 28 800 - - 102 24 Telkom 1 900  1 080 820 Drawings (7) 5.3 DEBTORS JOURNAL OF SANDY JEWELLERS – FEBRUARY 2019 DJ1 Doc No. Day Debtor Fol Sales Cost of Sales 61 04 D. Poole  D1 9 400 - 5 875 -   (6) 8

MARKING ECONOMIC AND MANAGEMENT GUIDELINES SCIENCES GRADE 9 5.4 DEBTORS’ ALLOWANCES JOURNAL OF SANDY JEWELLERS – FEBRUARY 2019 DAJ1 Debtors Doc No. Day Fol Cost of Sales Debtor Allowances CN2 21 D. Poole  D1 4 600 - 2 875 -   (6) 5.5 ACCOUNTING EQUATION Source Account Account Assets Owner’s Liabilities document Debited Credited equity Example: Duplicate Bank Rent income + 1 000 + 1 000 0 receipt Telephone - 1 080  0 Cheque - 1 900  Bank counterfoil  Drawings - 820  0 (7) [38] QUESTION 6 – GENERAL LEDGER GENERAL LEDGER OF SILVER STORES DR. TRADING STOCK CR. Date Details Fol Amount Date Details Fol Amount 2019 1 Balance b/d 29 860 - 2019 31 Cost of CRJ 17 221 - Mar Mar sales 31 Bank CPJ 16 930 - Balance c/d 29 569 - 46 790 -  46 790 - 2019 1 Balance b/d 29 569 - April * A method mark may only be awarded if the amounts are the same even if they are incorrect, allocate a mark  6 9

MARKING ECONOMIC AND MANAGEMENT GUIDELINES SCIENCES GRADE 9 QUESTION 7 – TRIAL BALANCE TRIAL BALANCE OF MZANSI TRADERS ON 30 APRIL 2019. Fol Debit Credit Balance Sheet Accounts Section Capital 76 800 Drawings 18 990 - Bank 41 370 - Trading Stock 32 440 Debtors Control 16 300 - Nominal Accounts Section Sales 70 200 Cost of sales 46 800 Packing material 3 220 Rent income 12 120 159 120 159 120 6 TOTAL SECTION C: 50 10

MARKING ECONOMIC AND MANAGEMENT GUIDELINES SCIENCES GRADE 9 SECTION D – ENTREPRENEURSHIP QUESTION 8 – SECTORS IN THE ECONOMY 8.1 Primary Sector Secondary Sector Tertiary Sector (3) 8.2  The tertiary sector is the part of the economy that provides services.   People either pay directly for the services or indirectly through paying taxes.  The public services that the government provides, such as health care and education, are part of the tertiary sector. (Any ONE relevant answer for 2 marks) (2) 8.3 In the primary sector there are TWO types of skills,  There are unskilled workers such as farm workers, fishers and miners.   There are skilled workers with specialised skills such as farm management, animal husbandry, engineering, geology and fishing trawler operations.  (4) 8.4  Primary sector uses machinery from the secondary / tertiary sector.   The secondary sector needs raw materials from the primary sector and machinery or equipment from the tertiary sector.   Tertiary sector gets raw materials from the primary sector to sell fresh produce and needs final goods from the secondary sector in order to sell it.  (3 x 2) (6) 15 TOTAL SECTION D: 15 TOTAL: 150 11