Economics Grade 10 P2 National November 2017 Question Paper

NATIONAL SENIOR CERTIFICATE GRADE 10 NOVEMBER 2017 ECONOMICS P2 MARKS: 150 TIME: 2 hours *XECOE2* This question paper consists of 13 pages.

2 ECONOMICS P2 (EC/NOVEMBER 2017) INSTRUCTIONS AND INFORMATION 1. Answer FOUR questions as follows in the ANSWER BOOK: SECTION A: COMPULSORY SECTION B: Answer any 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. Answer the questions in full sentences and the format, content and the context of your responses must comply with the cognitive requirements of the questions. 4. Number the answers correctly according to the numbering system used in this question paper. 5. Write the question number above each answer. 6. Read ALL the questions carefully. 7. Start EACH question on a NEW page. 8. Leave 2–3 lines between subsections of questions. 9. Use only black or blue ink. 10. You may use a non-programmable pocket calculator. 11. Write neatly and legibly. Copyright reserved Please turn over

(EC/NOVEMBER 2017) ECONOMICS P2 3 SECTION A (COMPULSORY) QUESTION 1 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, for example 1.1.9 D. 1.1.1 World markets are also known as … markets. A collective B money C global D perfect 1.1.2 A characteristic of an imperfect market: A There is one supplier or a few large suppliers B Products are homogenous C There are no barriers to entry D There are many buyers and sellers 1.1.3 This factor will lead to an outward movement of the PPC: A Improved technology B Unavailability of labour C Lack of raw materials D Unproductive labour 1.1.4 The following is regarded as a general cause of unemployment: A A large skilled labour force B A poor education system C Sufficient growth in the economy of a country D Labour intensive industries 1.1.5 Labour unions … A have the power to force employers and employees to comply with the Labour Relations Act. B negotiate improved wages and working conditions for their members. C make proposals about labour policies and laws. D help settle labour disputes by conciliation or arbitration. Copyright reserved Please turn over

4 ECONOMICS P2 (EC/NOVEMBER 2017) 1.1.6 An increase in the wage rate will, ceteris paribus, lead to … A a decrease in quantity demanded for labour. B a decrease in the demand for labour. C an increase in quantity demanded for labour. D an increase in the demand for labour. 1.1.7 Border taxes on imported products: A Value added tax B Excise duties C Customs duties D Green tax 1.1.8 In 1996 this policy was put in place to improve school performance: A SETA B LRA C SASA D SDA (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, for example 1.2.9 J. COLUMN A COLUMN B 1.2.1 Labour force A promotes collective bargaining and participation consultation in the workplace rate 1.2.2 Budget line B formal activities that improve individuals’ ability to reach their full potential 1.2.3 Ceteris C provides unemployment figures according to paribus both narrow and broad definitions of unemployment 1.2.4 Human D when the government subsides people who Resource are in social distress through transfer Development payments 1.2.5 CCMA E all other things remain constant 1.2.6 BBBEE F different combinations of goods and services we can buy from a given income 1.2.7 Welfare grant G provides a basis for transformation of the South African economy 1.2.8 Statistics H a tool used to determine which part of the South Africa population is economically active I arbitrate disputes that remain unresolved after conciliation (8 x 1) (8) Copyright reserved Please turn over

(EC/NOVEMBER 2017) ECONOMICS P2 5 1.3 Give the correct concept/term for each of the following phrases: 1.3.1 A graph showing all the combinations of two commodities that give a consumer an equal amount of satisfaction 1.3.2 Additional satisfaction gained from consuming one extra unit of a good or service in a given period 1.3.3 Goods supplied by the government as they are beneficial to society 1.3.4 A situation where a person is not employed to his or her full capacity 1.3.5 Workers negotiate as a group with employers with regard to working conditions 1.3.6 This Act was introduced in order to develop and improve the quality of skills and enhance productivity in the workplace (6 x 1) (6) TOTAL SECTION A: 30 Copyright reserved Please turn over

6 ECONOMICS P2 (EC/NOVEMBER 2017) SECTION B Answer any TWO of the three questions from this section in the ANSWER BOOK. QUESTION 2: MICROECONOMICS 40 MARKS – 30 MINUTES 2.1 Answer the following short questions. 2.1.1 Name TWO functions of a market. (2 x 1) (2) 2.1.2 What are perfect markets? (1 x 2) (2) 2.2 DATA RESPONSE Study the graph below and answer the questions that follow. PRODUCTION POSSIBILITY CURVE 2.2.1 How many tons of wheat and tons of steel will be produced at point B? (2 x 1) (2) 2.2.2 For what purpose is the production possibility curve used? (2) 2.2.3 Explain the term scarcity. (2) 2.2.4 Why is production at point G regarded as inefficient? (2 x 2) (4) Copyright reserved Please turn over

(EC/NOVEMBER 2017) ECONOMICS P2 7 2.3 DATA RESPONSE Study the table below and answer the questions that follow. Price Quantity demanded Quantity supplied R10 20 100 R6 60 60 R2 100 20 2.3.1 Identify the equilibrium price and quantity. (2) 2.3.2 State the Law of Supply. (2) 2.3.3 Explain cost of production as a factor that can cause a change in quantity supplied. (2 x 1) (2) 2.3.4 Calculate the excess supply. Show all your workings. (4) 2.4 Distinguish between national and international markets. (2 x 4) (8) 2.5 What are the characteristics of indifference curves? (4 x 2) (8) [40] Copyright reserved Please turn over

8 ECONOMICS P2 (EC/NOVEMBER 2017) QUESTION 3: CONTEMPORARY ECONOMIC ISSUES 40 MARKS – 30 MINUTES 3.1 Answer the following short questions. 3.1.1 Name any TWO approaches to solve unemployment. (2 x 1) (2) 3.1.2 What is meant by an economically active population? (1 x 2) (2) 3.2 DATA RESPONSE Study the extract below and answer the questions that follow. COSATU WANTS SUGAR TAX DELAYED UNTIL JOBS SECURED Trade union federation, Cosatu, has called for a delay in the implementation of the tax on sugar-sweetened beverages, saying a comprehensive transition and jobs plan has to be developed first. While Cosatu agreed that diabetes and obesity were contributing to a national health crisis, it was concerned about the loss of jobs that would result from the tax which is intended to reduce the consumption of sugary drinks. “Obesity, diabetes and many other diseases caused by over consumption of sugar have a terrible and devastating impact on working-class families. Our status as the most obese nation in Africa encapsulates this crisis.” [Source: BusinessLive, Linda Ensor 2017] 3.2.1 Identify TWO negative effects of sugar consumption from the extract above. (2 x 1) (2) 3.2.2 Which labour union represents workers in the extract above? (2) 3.2.3 According to the extract, what is the purpose of the sugar tax? (2) 3.2.4 How will the sugar tax affect the economy? (2 x 2) (4) Copyright reserved Please turn over

(EC/NOVEMBER 2017) ECONOMICS P2 9 3.3 DATA RESPONSE Study the information below and answer the questions that follow. The seda was established in December 2004 as an agency under the Department of Trade and Industry. The establishment was done by merging three organisations, namely the Ntsika Enterprise Promotion Agency, National Manufacturing Advisory Centre and Community Public Private Partnership Programme. Seda provides business development and support services for small enterprises through its national network. Seda also implements programmes targeted at business development in areas prioritised by the government. [Source: www.thedti.gov.za] 3.3.1 What does the abbreviation seda stand for? (1) 3.3.2 Which government department is seda a part of? (1) 3.3.3 Name any other TWO institutions that promote entrepreneurship in South Africa. (2 x 1) (2) 3.3.4 What is the role of seda? (1 x 2) (2) 3.3.5 How can entrepreneurship be encouraged through formal education? (2 x 2) (4) 3.4 Distinguish between substitute and complementary goods. (2 x 4) (8) 3.5 What are the labour rights in South Africa? (4 x 2) (8) [40] Copyright reserved Please turn over

10 ECONOMICS P2 (EC/NOVEMBER 2017) QUESTION 4: MICROECONOMICS & CONTEMPORARY ECONOMIC ISSUES 40 MARKS – 30 MINUTES 4.1 Answer the following short questions. 4.1.1 Name TWO types of efficiency. (2 x 1) (2) 4.1.2 What is opportunity cost? (1 x 2) (2) 4.2 DATA RESPONSE Study the extract below and answer the questions that follow. TAXI STRIKE AVERTED, BUT THREAT REMAINS Last month taxi owners and drivers embarked on a go-slow in protest against access to finance, a lack of subsidies for the taxi industry and operating permits. They blocked all of Gauteng’s major highways in a bid to get their message across, causing flights from OR Tambo International Airport to be delayed. The industry threatened to bring the country to a standstill if its concerns were not addressed. Transport Minister Joe Maswanganyi said it was agreed to address issues concerning the taxi industry and that the Transport Department and Santaco would establish committees [Source: Times Live, Ernest Mabuza 2017] 4.2.1 Identify TWO reasons, from the extract, that led to a go-slow in the taxi industry. (2 x 1) (2) 4.2.2 Which sector does the taxi industry belong to? (2) 4.2.3 What is a strike, as referred to in the extract above? (2) 4.2.4 How will the taxi strike affect the economy? (2 x 2) (4) Copyright reserved Please turn over

(EC/NOVEMBER 2017) ECONOMICS P2 11 4.3 DATA RESPONSE Study the table below and answer the questions that follow. Table 1: Income Inequality (Gini Coefficient) ranking of BRICS countries BRICS Gini Index Global rank Reporting Year South Africa 0,63 4 2009 Brazil 0,55 13 2009 China 0,43 54 2005 Russia 0,40 68 2009 India 0,33 116 2005 [Source: Index Mundi, World Bank data. April 2014] 4.3.1 Which country has the lowest income inequality? (1) 4.3.2 Name any ONE of the BRICS countries. (1) 4.3.3 Explain the term Gini Coefficient. (2) 4.3.4 What does a Gini coefficient of 0,63 in South Africa indicate? (2) 4.3.5 What do you think the government should do to reduce income inequality? (2 x 2) (4) 4.4 Discuss indirect tax and subsidies as methods of public sector intervention. (2 x 4) (8) 4.5 Explain why, in your opinion, certain groups of people are economically marginalised in South Africa. (4 x 2) (8) [40] TOTAL SECTION B: 80 Copyright reserved Please turn over

12 ECONOMICS P2 (EC/NOVEMBER 2017) 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 THE ESSAY ALLOCATION Introduction  A good starting point would be to define a concept or key word that appears in the question.  Include other sentences to support the topic. Max. 2  Do not include in your introduction any part of the question.  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/Critically discuss/ Max. 26 Analyse/Compare/Evaluate/Distinguish/Explain/Assess/D ebate Additional part:  Give own opinion/Critically discuss/Evaluate/Critically evaluate/Draw a graph and explain/Use the graph given Max. 10 and explain/Complete the given graph/Calculate/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 Copyright reserved Please turn over

(EC/NOVEMBER 2017) ECONOMICS P2 13 QUESTION 5: MICROECONOMICS 40 MARKS – 40 MINUTES Market failure occurs when the market fails to supply a good or service, or supplies too much or too little. This is the main reason why governments intervene in markets.  Discuss in detail, with the aid of graphs, the following methods of government intervention:  Maximum prices  Minimum prices (26)  What are the arguments in favour of minimum wages? (10) [40] QUESTION 6: CONTEMPORARY ECONOMIC ISSUES 40 MARKS – 40 MINUTES The creation of employment is one of the macro-economic objectives of government.  Discuss, in detail, the different types of unemployment. (26)  What are the strategies that have been implemented by the South African government to redress the issue of unemployment? (10) [40] TOTAL SECTION C: 40 GRAND TOTAL: 150 Copyright reserved Please turn over