Economics Grade 10 P1 North West June 2017 Question Paper

PROVINCIAL ASSESSMENT GRADE 10 ECONOMICS P1 MACRO-ECONOMICS: QUESTION PAPER JUNE 2017 MARKS: 100 DURATION: 1 ½ hours This question paper consists of 09 pages including this cover

Economics/P1 2 NW//JUNE 2017 NSC-Grade 10 INSTRUCTIONS AND INFORMATION: 1. Answer THREE questions as follows in the ANSWER BOOK: SECTION A: COMPULSORY SECTION B: Answer only ONE question. SECTION C: Answer only ONE question. 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 and start each question on a NEW page. 5. Leave 2 – 3 lines between subsections of questions. 6. 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. 7. Answer only the required number of questions. Answers in excess of the required number will NOT be marked. 8. Use only black or blue ink. 9. Non-programmable pocket calculators may be used. 10. Write neatly and legibly. SECTION A [COMPULSORY]

Economics/P1 3 NW//JUNE 2017 NSC-Grade 10 QUESTION 1 1.1. Various options are provided as answers to the following questions. Choose the answer and write only the letter (A – C) next to the question number e.g. 1.1.1 A 1.1.1 The economic problem arises from the coexistence of : A unlimited wants and unlimited resources B unlimited wants and limited money in circulation C unlimited wants and limited resources 1.1.2 Economics as a science exists because humans are exposed to ... A poverty B choice C scarcity 1.1.3 The foreign sector of a country is responsible for... A export market only. B export and import market C import market only 1.1.4 Which of the following does NOT represent a leakage from the circular flow model of the economy? A Taxes B The expenditure on exports C Savings 1.1.5 During the recession phase of the business cycle, there is ... A negative economic growth B no change in economic growth C positive economic growth (5 X 2) (10) 1.2 Choose an item from column B that matches a description in Column A. Write only the letter (A – G) next to the question number, e.g. (1.2.7. A)

Economics/P1 4 NW//JUNE 2017 NSC-Grade 10 COLUMN A COLUMN B 1.2.1 The scientific method A They are economically and socially disadvantaged. 1.2.2 Opportunity cost B Tertiary education should be cheaper so that 1.2.3 Economically vulnerable more people will be able to afford it. people C includes the process of formulating a hypothesis. 1.2.4 Normative Statement D The lowest point of the economic activity before 1.2.5 Trough an upswing 1.2.6 Private individuals E The value of the next best alternative that has been given up. F Where goods and services are traded. G who decidesThe question of what to produce in a free-market economy is decided by ... (6 X 1) (6) 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 Involves gathering facts and data through observations so that trends can be found. 1.3.2 It changes after a change in economic activity. 1.3.3 Is the value of the income received form the final goods and services produced by all the citizens who are living in other countries. 1.3.4 All the rights that every living person should have to provide himself /herself with a basic quality of life. (4x1) (4) TOTAL SECTION A: 20 SECTION B Answer ONE of the two questions in this section in the ANSWER BOOK.

Economics/P1 5 NW//JUNE 2017 NSC-Grade 10 QUESTION 2: MACROECONOMICS 40 MARKS – 30MINUTES 2.1 Answer the following questions 2.1.1 Name any TWO factors of production. (2 x 1) (2) 2.1.2 How is the business cycle measured? (1 x2) (2) 2.2 Read the extract below and answer the questions that follow. Fate of humanity rests on Economics The former president who has a degree in Economics ,has quoted the call of Fidel Castro for politicians to study Economics.He said that political leaders should study Economics in order to solve the problems of equity ,sustainable development and human security. Economics is the basis on which the fate of humankind depends. Efficiency is concerned with how well resources, such as money, time, labour or materials, are used to produce an end result. It is also the basis from which our struggle for equality begins. Politicians who do not want to understand or who do not want to know economics are not worthy of exercising their duty in governing, said the former president. Source: adapted from Sunday Argus December 2015 2.2.1 Identify the elements of economics in the extract? (2) 2.2.2 Quote a statement that shows the importance of economics? (2) 2.2.3 Why do economists use theories and models? (2) 2.2.4 Explain the difficulties faced by the social sciences. (2 x2) (4) 2.3 Study the cartoon below and answer the questions that follow:

Economics/P1 6 NW//JUNE 2017 NSC-Grade 10 Source.www.economicscartoons.com 2.3.1 Which stage of the business cycle is depicted in the cartoon? (1) 2.3.2 Name one positive effect mentioned above? (1) 2.3.3 What does the highest turning point of the business cycle called? (2) 2.3.4 Why are business cycle indicators important? (6) 2.4 Differentiate between normative and positive statements, give an example for each. (2 x 4) (8) 2.5 What will be the impact of changes in the price levels and the changes in employment as the effects of business cycles. (2 x 4) (8) Question 3: Macro- economics 3.1 Answer the following questions

Economics/P1 7 NW//JUNE 2017 NSC-Grade 10 3.1.1 Name TWO flows in the economic circular flow. (2 x 1) (2) 3.1.2 How to solve an economic problem? (1 x 2) (2) 3.2 Study the information in the table below and answer the questions that follow. ESTIMATED VALUES FOR CERTAIN COMPONENTS OF NATION OF MORGAN ‘S ECONOMY BETWEEN 2015 AND 2016 Component 2015 2016 Value in Rands Value in Rands Consumption by households 650 720 Savings 80 70 Investments 310 350 Tax revenue 220 240 Government expenditure 310 325 Total Imports 240 270 Total Exports 210 220 Income receipts from the rest 290 300 of the world Income payments to the rest 270 280 of the world Source: The Star, Business Report, Wednesday, 10 February 2016 3.2.1 List TWO examples of leakages from the information provided in the table. (2x1)(2) 3.2.2 Determine the total amount of injections for 2015. Show all your calculations. (4) 3.2.3 Differentiate between GDP and GNI (4) 3.3. Study the graph below and answer the questions that follow.

Economics/P1 8 NW//JUNE 2017 NSC-Grade 10 SOUTH AFRICA’S IMPORTS ON NON DURABLE CONSUMER GOODS 3.3.1 Identify the type of consumer goods that are imported? (1) 3.3.2 In which month was consumption spending the lowest? (1) 3.3.3 Give TWO reasons for decline mentioned in 3.3.2 (2 x 2) (4) 3.3.4 Which month shows higher imports of non-durable consumer goods and how does it affect the economy of the country? (2 x 2) (4) 3.4 Explain leakages and injection in the circular flow model. (2x4)(8) 3.5 Critically discuss the possible solutions to reduce enviromental problems.(4x2)(8) [40] TOTAL SECTION B: 40 SECTION C Answer only ONE question from this section.

Economics/P1 9 NW//JUNE 2017 NSC-Grade 10 STRUCTURE OF THE ESSAY MARK ALLOCATION Introduction Max .2 Body : Max.26 Main part: Discuss in detail / In –depth discussion /Examine /Critically discuss/Analyse/Compare/Evaluate /Distinguish/Explain/Assess/Debate Additional part: Give own opinion/Critically Max.10 discuss/Evaluate/ Critically evaluate/Draw a graph and explain/Use the graph given and explain/Complete the given graph/Calculate/Deduce/ Compare/Explain/Distinguish/Interpret/Briefly Conclusion Max.2 TOTAL 40 Question 4 40 MARKS- 40 MINUTES When you are shopping for groceries you become part of the circular flow of the economy.  Discuss the economic participants in a closed economy. (26)  Explain the importance of factor market and goods market (10) [40] Question 5 40 MARKS- 40 MINUTES Every country experiences cyclical patterns in its economy.  Discuss in detail the stages of a business cycle with the aid of a diagram. (26)  Evaluate the endogenous reasons for changes in the business cycle. (10) [40] TOTAL SECTION C: 40 GRAND TOTAL: 100