Economics Grade 10 P2 North West June 2017 Question Paper

PROVINCIAL ASSESSMENT GRADE 10 ECONOMICS P2 JUNE 2017 MARKS: 100 DURATION: 1h 30 This question paper consists of 9 pages.

2 Economics/P2 NSC-10 NW/June 2017 INSTRUCTIONS AND INFORMATION 1. Answer THREE questions as follows: SECTION A: COMPULSORY. SECTION B: Answer any ONE question in the ANSWER BOOK. SECTION C: Answer any ONE question in the ANSWER BOOK. 2. Number the questions correctly according to the numbering system used in this question paper. 3. Read the questions carefully and start EACH question on a new page. 4. Leave 2-3 lines between subsections of the questions. 5. Answer questions in full sentences. 6. Write neatly and legibly. 7. Only required questions will be marked.

3 Economics/P2 NSC-10 NW/June 2017 SECTION A (COMPULSORY) QUESTION 1 20 MARKS – 20 MINUTES 1.1 Various options are provided as possible answers to the following questions. Choose the answer and write only the letter (A-C) next to the question numbers (1.1.1 – 1.1.5) in the ANSWER BOOK, for example .1.1.7. C. 1.1.1 In an oligopoly market nature of the product offered is … A Homogeneous. B Unique. C Heterogeneous. 1.1.2 As consumption increases of a particular product marginal utility decreases. This is called ... A Total utility. B Diminishing marginal utility. C Utility cannot be measured. 1.1.3 Law of supply states... A As price increases quantity supplied increases. B As price increases quantity supplied decreases. C As price increases quantity supplied remain constant. 1.1.4 The value of alternatives that were given up as result of the choice is called ... A Production cost. B Opportunity cost. C Total cost. 1.1.5 Which one of the following is not a reason for market failure ... A Cyclical fluctuations. B Encourage people to work hard. C Unequal distribution of wealth. (5 x 2) (10)

4 Economics/P2 NSC-10 NW/June 2017 1.2 Choose a description from COLUMN B that matches an item in COLUMN A. Write only the letter (A- E) next to the question number (1.2.1- 1.2.5)in the answer book. COLUMN A COLUMN B 1.2.1 Utilitarian value A different combinations of goods and services that gives same satisfaction 1.2.2 Allocative inefficiency B relationship between price and quantity demanded. 1.2.3 Indifference curve C a minimum price for which goods can be sold 1.2.4 Direct tax D when products produced have not reached the 1.2.5 Price floor people that they need most E taxes levied on the income F effectiveness of a product in satisfying want (5 x 1) (5) 1.3 Give ONE term for each of the following descriptions. Write only the term next to the question number (1.3.1 – 1.3.5) in the ANSWER BOOK. 1.3.1 Place where buyers and sellers meet to exchange goods and services. 1.3.2 Quantity of goods and services produced and offered for sale in the whole market at a certain price over a certain period 1.3.3 All resources are being used effectively without any waste. 1.3.4 Human wants are unlimited and resources are limited to satisfy the needs 1.3.5 Taxes levied on liquor or cigarettes. (5 x1) (5) TOTAL SECTION A: 20

5 Economics/P2 NSC-10 NW/June 2017 Answer any ONE question of the two questions from this section in the ANSWER BOOK. QUESTION 2 40 MARKS – 35 MINUTES 2.1 Answer the following questions 2.1.1 Name TWO forms of utility. (2 x 1) (2) 2.1.2 Why is it important to determine the equilibrium price? (1 x 2) (2) 2.2 Study the table below and answer the questions that follow DEMAND AND SUPPLY TABLE Price Quantity demanded Quantity supplied R5 100 70 R7 90 90 R10 70 110 R11 60 130 Source: adapted from enjoy economics economics 2.2.1 Identify the equilibrium price and quantity (2x1) (2) 2.2.2 What is the minimum price from the table (1) 2.2.3 Why is the quantity demanded decreasing (3) 2.2.4 Explain the relationship between the price and quantity demand (2x2) (4)

6 Economics/P2 NSC-10 NW/June 2017 2.3 Study the cartoon below and answer the questions that follow. Source: internet/Economics cartoons 2.3.1 Identify the LOGO on the above cartoon (1x1) (1) 2.3.2 which market structure depicted above (1x1)(1) 2.3.3 Explain TWO characteristics of the market structure you identified. (2x2) (4) 2.3.3 Suggest ways to control the above mentioned market practice. (2x2) (4) 2.4 Briefly explain the conditions that must be met for a good to be traded in the world market (4x2) (8) 2.5 HOW does the market regulate its functions with outside intervention? (4x2) (8) [40]

7 Economics/P2 NSC-10 NW/June 2017 QUESTION 3 40 MARKS – 35MINUTES 3.1 Answer the following questions 3.1.1 Give any TWO examples of public goods. (2x1) (2) 3.1.2 What influences the shape of the indifference curve (1x2) (2) 3.2 Study the graph below and answer the questions that follow:- Production possibility curve 1500 D Pencils Pens 1000 3.2.1 Identify two products from the above graph. (2) 3.2.2 Comment about the point D? (2x2) (4) 3.2.3 Explain the possible reasons for the shift in the above curve? (2x2) (4)

8 Economics/P2 NSC-10 NW/June 2017 3.3 Study the cartoon below and answer the questions that follow Source: Economics cartoons 3.3.1 What does the acronym SASSA stands for? (2) 3.3.2 Mention any two types of grants provide by the Government (2x1) (2) 3.3.3 Explain the role of SASSA (4) 3.3.4 How does the government find money to pay for the grants (2) 3.4 Briefly discuss the term Pareto efficiency? (4x2) (8) 3.5 How does the wage subsidy influence employment (4x2) (8) [40] TOTAL SECTION B: 40 SECTION C

9 Economics/P2 NSC-10 NW/June 2017 Answer any ONE of the two questions from this section in the ANSWER BOOK. Your answer will be assessed as follows: STRUCTURE OF THE ESSAY MARK ALLOCATION Introduction Max 2 Body: Main part:Discuss in detail/in-depth discussion/Examine/Critically Max 26 evaluate/Analyse/compare/Distinguish/explain/Assess/Debate Max 10 Additional part: Give own opinion/ critically discuss/Evaluate/Draw a graph and explain/Distinguish/Interpret/Briefly debate Conclusion Max 2 Any higher order conclusion should include :  A brief summary of what has been discussed without repeating the facts already mentioned on the body  Any opinion or value judgement on the facts discussed  Additional support information to strengthen the discussion/analysis  A contradictory viewpoint with motivation, if required  Recommendations TOTAL 40 QUESTION 4 40 MARKS – 35 MINUTES Market can be classified as perfect competition, monopoly, oligopoly or monopolistic markets  Tabulate the characteristics of each of the above mentioned markets. (26)  In addition, explain the criteria to identify a market. (10) [40] QUESTION 5 The government intervenes in the economy in different ways; one way is by setting minimum wages for workers. Based on the above statement:  Analyse the above statement in detail with the aid of a graph. (26)  In addition, briefly discuss why the government intervenes in the market (10) [40] TOTAL SECTION C: 40 GRAND TOTAL: 100