Economics Grade 9 Gauteng November 2017 Question Paper (Eng)

GAUTENG DEPARTMENT OF EDUCATION PROVINCIAL EXAMINATION NOVEMBER 2017 GRADE 9 ECONOMIC AND MANAGEMENT SCIENCES TIME: 2 hours MARKS: 200 19 pages P.T.O.

ECONOMIC AND MANAGEMENT SCIENCES 2 GRADE 9 GAUTENG DEPARTMENT OF EDUCATION PROVINCIAL EXAMINATION ECONOMIC AND MANAGEMENT SCIENCES TIME: 2 hours MARKS: 200 INSTRUCTIONS AND INFORMATION 1. This question paper consists of SECTION A, SECTION B, SECTION C and SECTION D based on the prescribed content framework in the CAPS-document. SECTION A: ALL TOPICS QUESTIONS 1.1: Multiple-choice questions (20) QUESTIONS 1.2: Matching items (20) QUESTIONS 1.3: Word selection. Choose the correct word. (10) QUESTIONS 1.4: True or False (10) [60] SECTION B: THE ECONOMY QUESTION 2: Economic systems (10) QUESTION 3: Circular flow (10) QUESTION 4: Price theory (10) QUESTION 5: Trade unions (10) [40] SECTION C: FINANCIAL LITERACY QUESTION 6: Journals, Ledgers and Accounting equation (41) QUESTION 7: Ledgers (8) QUESTION 8: Trial balance (11) [60] SECTION D: ENTREPRENEURSHIP QUESTION 9: Economic sectors (19) QUESTION 10: Business functions (11) QUESTION 11: Business Plan (10) [40] 2. All questions are compulsory. 3. Answer all questions (Sections A – D) in the ANSWER BOOK provided. 4. Write neatly and legibly. 5. The use of non-programmable and non-graphical calculators is permissible. P.T.O.

ECONOMIC AND MANAGEMENT SCIENCES 3 GRADE 9 SECTION A QUESTION 1 1.1 MULTIPLE-CHOICE QUESTIONS Various options are provided as possible answers to the following questions. Choose the answer and write only the letter (A – D) next to question number (1.1.1 – 1.1.10) in the ANSWER BOOK provided. 1.1.1 Impala Mines operates in the ... sector of the economy. A secondary B business C primary D tertiary (2) 1.1.2 A business sells a product at a selling price of R16 800 with a 40% mark- up. Calculate the cost price. A R 6 720 B R 23 520 C R 4 800 D R 12 000 (2) 1.1.3 The three main participants in a closed economy are ... A businesses, government and households. B state, households and secondary sector. C financial institutions, firms and households. D households, firms and the foreign sector. (2) 1.1.4 The double entry and influence on the accounting equation of the following transaction: “bought stationery on credit” is: A Dr Creditors (L -) ; Cr Stationery (OE +) B Dr Stationery (OE-) ; Cr Creditors (L+) C Dr Creditors (L+) ; Cr Stationery (OE -) D Dr Stationery (OE+) ; Cr Creditors (L+) (2) P.T.O.

ECONOMIC AND MANAGEMENT SCIENCES 4 GRADE 9 1.1.5 Which ONE of the following is not one of the 4 Ps of marketing? A Product B Planning C Promotion D Place (2) 1.1.6 The source document issued for the transaction: “Buy goods on credit” is a (an) ... A cheque counterfoil. B invoice. C receipt. D credit note. (2) 1.1.7 The ... function is responsible for the good image of the business. A human resource B production C marketing D public relations (2) 1.1.8 The economic system where the government owns all land and businesses is known as the ... economy. A socialist B mixed C market D labour (2) 1.1.9 A group of employees who come together to regulate relations between themselves and their employers is called a ... A legal consultation. B trade union. C work industry. D management group. (2) 1.1.10 When a debtor returns goods that were bought on credit it will be recorded in the ... A CPJ. B DAJ. C DJ. D CAJ. (2) [20] P.T.O.

ECONOMIC AND MANAGEMENT SCIENCES 5 GRADE 9 1.2 MATCHING ITEMS Match the description in COLUMN B with the terms in COLUMN A. Write only the correct letter (A – J) next to the question number (1.2.1. – 1.2.10) in the ANSWER BOOK. COLUMN A COLUMN B 1.2.1 Law of Demand A The statement which lists all the balances on all accounts in the double 1.2.2 Trial balance entry system 1.2.3 Collective bargaining B Unprocessed information used in a business organisation 1.2.4 Economic problem C The lack of sufficient resources to meet 1.2.5 Overdraft all human needs 1.2.6 Manufacturer D Goods or services purchased directly for the running of the business 1.2.7 Go-slow E A person or another business that the 1.2.8 Creditor business owes money to 1.2.9 Data F The reduction of output by workers whilst still carrying on tasks 1.2.10 Expenses G Deficit in a bank account caused by drawing more money than the account holds H When the price is high, demand is low. I Businesses that are involved in the making or producing of goods and services J Negotiation between a trade union and employer [20] P.T.O.

ECONOMIC AND MANAGEMENT SCIENCES 6 GRADE 9 1.3 CHOOSE THE CORRECT WORD Choose the correct word from the word bank below and complete the statements that follow. Write only the correct answer next to the question number (1.3.1 – 1.3.5) in the ANSWER BOOK. market; products; business plan; exchange rate; break-even point; SWOT-analysis; labour; sales 1.3.1 The place where buyers and sellers meet is known as a ... . (2) 1.3.2 The combination of strengths, weaknesses, opportunities and threats is called the ... . (2) 1.3.3 Cost of Sales + Mark-up % = ... . (2) 1.3.4 In a circular flow the businesses offer their ... to households. (2) 1.3.5 An indication of how many units you need to sell in order to cover all your expenses. (2) [10] P.T.O.

ECONOMIC AND MANAGEMENT SCIENCES 7 GRADE 9 1.4 TRUE OR FALSE Indicate whether the following statements are TRUE or FALSE. Write only „true‟ or „false‟ next to the question number (1.4.1 – 1.4.5) in your ANSWER BOOK. 1.4.1 The Debtors‟ Ledger is a list of all the debtors‟ accounts in the business. (2) 1.4.2 The global economy refers to business being conducted inside the borders of a country. (2) 1.4.3 A retailer sells goods to customers at a lower price than he has paid. (2) 1.4.4 Top level management is responsible for developing the vision and the mission of the business operation. (2) 1.4.5 The Analysis of Receipts column in the CRJ is totalled and posted to the General Ledger. (2) [10] TOTAL SECTION A: 60 P.T.O.

ECONOMIC AND MANAGEMENT SCIENCES 8 GRADE 9 SECTION B THE ECONOMY QUESTION 2 – ECONOMIC SYSTEMS 2.1 Read the scenario below and answer the questions that follow. Ana works at a coffee bean plantation owned by the government of the country. She works 10 hours a day and she and her co-workers all receive the same income at the end of each month, even when the production of coffee increases or decreases. Her family stays for free on the plantation. Her government also pays her children’s school fees. Ana’s husband is a teacher and the government also pays his salary. [Viva ; 35] Discuss TWO disadvantages of the economic system in the above scenario. (2x2) (4) 2.2 Identify the characteristics of the different economic systems by completing A and B in the table below in the ANSWER BOOK. Characteristic Market Economy Mixed Economy Government The government A control has little control Profit Motive B Yes, it is the driving force (2x2) (4) 2.3 Identify the economic term that is represented by the three pictures below. (2) [10] P.T.O.

ECONOMIC AND MANAGEMENT SCIENCES 9 GRADE 9 QUESTION 3 – CIRCULAR FLOW Study the following circular flow diagram before answering the questions. FACTOR MARKET GOVERNMENT LABOUR, SPENDING CAPITAL, ETC. TAXES TAXES BUSINESSES GOVERNMENT HOUSEHOLDS PUBLIC PUBLIC GOODS AND GOODS AND SERVICES SERVICES GOODS AND GOVERNMENT SERVICES SPENDING GOODS AND SERVICES 3.1 The statements below describe the flow of income in an economy. In each case indicate the relevant participant. For example: 3.1.4 – Households. 3.1.1 Receives taxes from other participants. 3.1.2 Provides labour to the government and business. 3.1.3 Sells goods and services to the other participants. (3x1) (3) 3.2 Discuss ONE way in which households receive an income. (2) P.T.O.

ECONOMIC AND MANAGEMENT SCIENCES 10 GRADE 9 3.3 Complete the following sentence: “A model that describes the movement of money through the economy between participants is called the ...” (1) 3.4 Identify the remuneration for the following four factors of production: A. B. C. D. (4x1) (4) [10] P.T.O.

ECONOMIC AND MANAGEMENT SCIENCES 11 GRADE 9 QUESTION 4 – PRICE THEORY Study the pictures below and answer the questions that follow. Lily is an entrepreneur. She lives in a small town at the The weather affects the demand for Lily‟s kites. coast. Lily earns money by making kites and selling them on the beach to the tourists who visit the town during the summer months. The following table represents the supply and demand schedule for Lily‟s kites: Price of kites Quantity demanded Quantity supplied (number of kites) (number of kites) R20 100 20 R40 80 40 R60 60 60 R80 20 80 4.1 Use the above schedule to draw a demand and supply curve on the same axes and indicate the equilibrium point. (6) 4.2 How much is the equilibrium price? (1) 4.3 Define the Law of Supply. (2) 4.4 Name ONE factor affecting the demand for Lily‟s kites. (1) [10] P.T.O.

ECONOMIC AND MANAGEMENT SCIENCES 12 GRADE 9 QUESTION 5 – TRADE UNIONS A strike is a challenge which many businesses in South Africa must face today. Strikes, and go-slows are often very costly for businesses and / or the workers. Higher wages! Better working conditions! 5.1 Define the term trade union. (2) 5.2 Identify the TWO main issues about which trade unions usually negotiate. (2x1) (2) 5.3 Write an explanation on how strike action can have a negative impact on a business. (2x2) (4) 5.4 List ONE responsibility of trade unions in South Africa. (1x2) (2) [10] TOTAL SECTION B: 40 P.T.O.

ECONOMIC AND MANAGEMENT SCIENCES 13 GRADE 9 SECTION C FINANCIAL LITERACY QUESTION 6 – JOURNALS AND LEDGERS K. Lincoln is the owner of Lincoln Boutique. He buys and sells clothing for cash as well as on credit. The business maintains a profit mark-up of 40% on cost price. INFORMATION AND INSTRUCTIONS: JOURNALS: Use the information provided to record the transactions in the following journals: 6.1 Cash Receipts Journal with analysis columns for Analysis of Receipts; Bank; Sales; Cost of Sales; Debtors‟ Control and Sundry Accounts. (8) 6.2 Cash Payments Journal with analysis columns for Bank; Trading Stock, Creditors‟ Control and Sundry Accounts. (7) 6.3 Debtors‟ Journal with columns for Sales and Cost of Sales. (5) 6.4 Debtors‟ Allowances Journal with columns for Debtors‟ Allowances and Cost of Sales. (5) 6.5 Creditors‟ Journal with analysis columns for Creditors‟ Control; Trading Stock and Sundry Accounts. (3) PLEASE NOTE: DO NOT close off the journals on 31 October 2017. 6.6 DEBTORS’ LEDGER: Opening balances on 1 October 2017 Debtors’ List Creditors’ List Kelly Hoover R1 890 Jozi Fashion Stores R1 220 Hennie Alberts R3 710 Prepare the account of Kelly Hoover in the Debtors‟ Ledger. (8) ACCOUNTING EQUATION 6.7 Show the effect of transaction 08 on the elements of the accounting equation. (5) P.T.O.

ECONOMIC AND MANAGEMENT SCIENCES 14 GRADE 9 TRANSACTIONS FOR OCTOBER 2017: 03 Issued invoice 88 to Kelly Hoover for goods supplied on credit, R3 920. Issued cheque 100 to Jozi Fashion Stores for trading stock bought, R11 800. 08 Bought summer range stock, R7 900 on account from GP Retailers, received invoice 91. (renumbered F76) 14 Kelly Hoover returned unsatisfactory goods to the value of R1 680. The goods were not according to the sample. Issued credit note 31. 24 Issued cheque 101 for R9 770 to GP Retailers in payment of amount owed on purchases on the 8 October and the rest was for packing material bought for cash. 30 Cash sales according to the cash register roll, R4 060. (CRR 56) Received a cheque for R2 900 from Kelly Hoover in part payment of his account. Issued receipt 21. [41] P.T.O.

ECONOMIC AND MANAGEMENT SCIENCES 15 GRADE 9 QUESTION 7 – GENERAL LEDGER You are supplied with information from the books of Muzi Traders. REQUIRED TO DO: 7.1 Post the following completed journals to the partially completed Trading Stock Account in the General Ledger. 7.2 Balance the account at the end of September 2017. INFORMATION Opening Balance: Trading Stock: R 33 475 CASH RECEIPTS JOURNAL OF MUZI TRADERS FOR SEPTEMBER 2017 CRJ6 Doc Day Details Fol Analysis Bank Sales Cost of Fol Sundry Accounts no. of Sales Receipts Amount Fol Details 52 400 16 800 10 500 12 385 CASH PAYMENTS JOURNAL OF MUZI TRADERS FOR SEPTEMBER 2017 CPJ6 Doc Day Name of Fol Bank Trading Creditors’ Fol Sundry Accounts no. Payee Stock Control Amount Fol Details 39 575 11 650 8 444 9 325 CREDITORS’ JOURNAL OF MUZI TRADERS FOR SEPTEMBER 2017 CJ6 Doc Day Details Fol Creditors’ Trading Packing Fol Sundry Accounts no. Control Stock material Amount Fol Details 13 772 10 985 2 330 899 CREDITORS’ ALLOWANCES JOURNAL OF MUZI TRADERS FOR SEPTEMBER 2017 CAJ6 Doc Day Details Fol Creditors’ Trading Packing Fol Sundry Accounts no. Control Stock material Amount Fol Details 3 540 924 1 167 385 DEBTORS’ JOURNAL OF MUZI TRADERS FOR SEPTEMBER 2017 DJ6 Doc Day Debtor Fol Sales Cost of Sales No. 17 890 13 990 DEBTORS’ ALLOWANCES JOURNAL OF MUZI TRADERS FOR SEPTEMBER 2017 DAJ6 Doc Day Debtor Fol Debtors Cost of Sales No. allowances 2 773 1 088 [8] P.T.O.

ECONOMIC AND MANAGEMENT SCIENCES 16 GRADE 9 QUESTION 8 – TRIAL BALANCE The inexperienced bookkeeper of Brookes Traders prepared the Trial balance below with some errors. You are required to assist her by preparing the correct Trial Balance on 31 October 2017 and calculate the missing amount. Trial balance of Brookes Traders on 31 October 2017 Fol Debit Credit Balance Sheet Accounts Section Sales 47 050 - Packing material 8 565 - Rent income 2 500 - Cost of sales 27 525 - Creditors‟ Control 32 500 - Nominal Accounts Section Bank 45 150 - Consumables 2 810 - Vehicles 63 000 - Capital ? 137 765 93 335 [11] TOTAL SECTION C: 60 P.T.O.

ECONOMIC AND MANAGEMENT SCIENCES 17 GRADE 9 SECTION D ENTREPRENEURSHIP QUESTION 9 – SECTORS IN THE ECONOMY Study the flow chart for the production of bread and answer the questions that follow. (b) (a) Mill Bread (c) 9.1 Label the sectors of the economy represented by (a), (b) and (c) above. (3) 9.2 Name TWO examples of businesses found in sector (a). (2x2) (4) 9.3 Briefly discuss the interrelationship of the three sectors in the production of bread. (3x2) (6) 9.4 List THREE ways in which businesses can promote the sustainable use of resources. (3x1) (3) 9.5 Name the THREE types of labour that are found in the three sectors that form part of the economic sectors. (3) [19] P.T.O.

ECONOMIC AND MANAGEMENT SCIENCES 18 GRADE 9 QUESTION 10 – FUNCTIONS OF A BUSINESS BELLA’S CLOTHING COMPANY Bella‟s Clothing Company specialises in a popular range of children‟s clothing that is shipped to retail stores in all the major towns in South Africa. This progressive business carries out market research regularly to keep up with changing fashions and customer preferences. It also checks on what the competition is doing and what the consumer market thinks of Bella‟s Clothing Company. Bella Tsele is proud of her growing business and is pleased to have a supportive board of directors. The management team is enthusiastic and competent – new suggestions for a staff canteen and gymnasium facilities by Trishen Maraj, the PR manager, have been well received. Upgraded computer technology has improved information access. In addition, purchasing has identified a new supplier of raw materials that will keep Bella‟s Clothing products competitive. The cash flow is healthy and a firm of consultants has suggested ways to reduce any business risks. [EC:2016] 10.1 Read the following extracts taken from the case study above. Identify the relevant business function in each one. 10.1.1 “Upgraded computer technology has improved information access.” (2) 10.1.2 “The cash flow is healthy…” (2) 10.1.3 “ …a firm of consultants has suggested ways to reduce any business risks.” (2) 10.1.4 “Bella … is pleased to have a supportive board of directors.” (2) 10.2 Define the concept target market. (3) [11] P.T.O.

ECONOMIC AND MANAGEMENT SCIENCES 19 GRADE 9 QUESTION 11 – THE BUSINESS PLAN 11.1 Briefly explain the importance of a business plan. (4) 11.2 You want to approach a local bank for financial assistance to expand your business operations. Name TWO important components which should be covered in your business plan. (2x2) (4) 11.3 Give ONE example of a fixed cost in a business. (1x2) (2) [10] Competitor Analysis TOTAL SECTION D: 40 TOTAL: 200 END