Economics Grade 12 P2 NSC November Mock 2026 QP (Eng)

Mock hlayiso mock exams Practice Series: Grade 12 NSC Preparation WWW.HLAYISO.COM NATIONAL SENIOR CERTIFICATE GRADE 12 ECONOMICS P2 MOCK EXAMINATION 2026 MARKS: 150 TIME: 2 hours This question paper consists of 12 pages. Copyright reserved Please turn over

Economics/P2 2 Hlayiso/Mock 2026 NSC Mock INSTRUCTIONS AND INFORMATION 1. Answer FOUR questions as follows in the ANSWER BOOK: SECTION A: COMPULSORY SECTION B: Answer 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. Number the answers correctly according to the numbering system used in this question paper. 4. Write the question number above each answer. 5. Read the questions carefully. 6. Start EACH question on a NEW page. 7. Leave 2–3 lines between subsections of questions. 8. 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. 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

Economics/P2 3 Hlayiso/Mock 2026 NSC Mock SECTION A (COMPULSORY) QUESTION 1 30 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–D) next to the question numbers (1.1.1 to 1.1.8) in the ANSWER BOOK, e.g. 1.1.9 D. 1.1.1 A market structure in which a large number of businesses sell differentiated products is called … A perfect competition. B monopolistic competition. C oligopoly. D monopoly. 1.1.2 The marginal cost (MC) curve intersects the average cost (AC) curve at the … point of the AC curve. A highest B starting C shut-down D lowest 1.1.3 Goods that are non-rival and non-excludable in consumption are known as … goods. A merit B demerit C public D private 1.1.4 A firm in a perfect market makes a normal profit when … A average revenue is equal to average cost. B average revenue is greater than average cost. C average revenue is less than average variable cost. D marginal revenue is greater than marginal cost. 1.1.5 The inflation rate that excludes volatile items, such as food and fuel, is called … inflation. A core B headline C cost-push D administered 1.1.6 Visitors from Lesotho and Botswana who spend their holidays in South Africa form part of … tourism. A domestic B outbound C inbound D business Copyright reserved Please turn over

Economics/P2 4 Hlayiso/Mock 2026 NSC Mock 1.1.7 The international agreement that aimed to protect the ozone layer by phasing out the use of chlorofluorocarbons (CFCs) is the … A Kyoto Protocol. B Paris Agreement. C Basel Convention. D Montreal Protocol. 1.1.8 The use of marketable permits to reduce pollution is an example of a/an … approach to environmental sustainability. A command-and-control B market-based C educational D voluntary (8 x 2) (16) Copyright reserved Please turn over

Economics/P2 5 Hlayiso/Mock 2026 NSC Mock 1.2 Choose a description from COLUMN B that matches the item in COLUMN A. Write only the letter (A–I) next to the question numbers (1.2.1 to 1.2.8) in the ANSWER BOOK, e.g. 1.2.9 J. COLUMN A COLUMN B 1.2.1 Explicit costs A shows that oligopolists are reluctant to change their prices 1.2.2 Kinked demand curve B development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs 1.2.3 Marginal revenue C the variety of plant and animal species in a particular habitat 1.2.4 Consumer surplus D actual payments made by a business to outside suppliers of inputs 1.2.5 Hyperinflation E a payment made by the government to producers to lower their cost of production 1.2.6 Indigenous knowledge F the additional income received from selling one more unit of output 1.2.7 Biodiversity G an extremely high and accelerating rate of increase in the general price level 1.2.8 Sustainable H the difference between what development consumers are willing to pay and what they actually pay for a product I knowledge unique to a community that is passed on from one generation to the next (8 x 1) (8) 1.3 Give ONE term for each of the following descriptions. Write only the term next to the question numbers (1.3.1 to 1.3.6) in the ANSWER BOOK. Abbreviations, acronyms and examples will NOT be accepted. 1.3.1 A market structure in which there are only two sellers of a product 1.3.2 The point at which average revenue is equal to the minimum average variable cost, below which a firm will stop production 1.3.3 Costs of production or consumption that are borne by third parties who are not directly involved in the transaction 1.3.4 A situation in which high inflation is combined with low economic growth and high unemployment 1.3.5 The amount of money that foreign tourists spend in a country 1.3.6 Natural resources, such as coal and crude oil, that cannot be replaced once they have been used up (6 x 1) (6) TOTAL SECTION A: 30 Copyright reserved Please turn over

Economics/P2 6 Hlayiso/Mock 2026 NSC Mock 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 questions. 2.1.1 Give any TWO examples of fixed costs. (2 x 1) (2) 2.1.2 Why is the demand curve of an oligopolist kinked? (1 x 2) (2) 2.2 Study the graph below and answer the questions that follow. MONOPOLY: SHORT-RUN EQUILIBRIUM Price/Cost/Revenue (R) 100 a MC 70 b AC 50 40 e D = AR MR 0 30 Quantity (units) [Examiner’s own] 2.2.1 Identify the profit-maximising level of output in the graph above. (1) 2.2.2 Name the type of monopoly that exists because of legal barriers such as patents and licences. (1) 2.2.3 Briefly describe the term marginal cost. (2) 2.2.4 Explain why the marginal revenue (MR) curve of a monopolist lies below its demand curve. (2) 2.2.5 Use the information in the graph above to calculate the economic profit made by the monopolist. Show ALL calculations. (4) Copyright reserved Please turn over

Economics/P2 7 Hlayiso/Mock 2026 NSC Mock 2.3 Study the extract below and answer the questions that follow. COMPETITION COMMISSION UNCOVERS PIPE CARTEL Following an investigation, the Competition Commission referred a case of collusion to the Competition Tribunal. Three producers of concrete pipes had agreed to fix prices and to take turns in winning municipal tenders between 2021 and 2024 (bid-rigging). Two of the firms agreed to settle and pay administrative penalties totalling R48 million. The Commission warned that cartels raise the cost of public infrastructure, such as water and sanitation projects, and encouraged firms involved in cartels to come forward under the Corporate Leniency Policy in exchange for immunity from prosecution. [Examiner’s own – fictitious case for assessment purposes] 2.3.1 Identify, in the extract above, the institution that adjudicates (decides on) competition cases. (1) 2.3.2 Name the type of collusion in which firms follow the price set by a dominant firm without any formal agreement. (1) 2.3.3 Briefly describe the term cartel. (2) 2.3.4 Explain how bid-rigging of municipal tenders affects taxpayers. (2) 2.3.5 How can the enforcement of competition policy benefit consumers? (2 x 2) (4) 2.4 With the aid of a correctly labelled graph, explain the effect of a negative externality on the market. (8) 2.5 Why do businesses in an oligopoly prefer non-price competition to price competition? (4 x 2) (8) [40] Copyright reserved Please turn over

Economics/P2 8 Hlayiso/Mock 2026 NSC Mock QUESTION 3: CONTEMPORARY ECONOMIC ISSUES 40 MARKS – 30 MINUTES 3.1 Answer the following questions. 3.1.1 Name any TWO causes of cost-push inflation. (2 x 1) (2) 3.1.2 How can climate change negatively affect food prices? (1 x 2) (2) 3.2 Study the graph below and answer the questions that follow. AGGREGATE DEMAND AND AGGREGATE SUPPLY General price level AS e2 P2 e1 P1 AD2 AD1 0 Y1 Y2 Real output (GDP) [Examiner’s own] 3.2.1 Identify the curve that has shifted in the graph above. (1) 3.2.2 Name the price index that measures the changes in the prices of goods and services bought by households. (1) 3.2.3 Briefly describe the term demand-pull inflation. (2) 3.2.4 Explain the effect of a decrease in the repo rate on aggregate demand. (2) 3.2.5 How can the government use fiscal policy to reduce demand-pull inflation? (2 x 2) (4) Copyright reserved Please turn over

Economics/P2 9 Hlayiso/Mock 2026 NSC Mock 3.3 Study the table below and answer the questions that follow. SELECTED TOURISM INDICATORS: ILANGA BAY MUNICIPALITY Indicator 2023 2024 2025 International (foreign) tourist arrivals (thousands) 182 205 231 Domestic trips (thousands) 640 610 702 Total tourism spending (R million) 1 450 1 610 1 820 Direct tourism jobs 7 900 8 300 9 100 [Fictitious data compiled by the examiner] 3.3.1 Identify the year in which the number of domestic trips was the lowest. (1) 3.3.2 Name the organisation responsible for marketing South Africa as a tourist destination internationally. (1) 3.3.3 Briefly describe the term domestic tourism. (2) 3.3.4 Explain how an increase in foreign tourist arrivals affects the current account of the balance of payments. (2) 3.3.5 Calculate the percentage change in total tourism spending from 2024 to 2025. Show ALL calculations. (4) 3.4 Briefly discuss the effects of high inflation on borrowers and on people who earn a fixed income (e.g. pensioners). (2 x 4) (8) 3.5 Evaluate the effectiveness of environmental taxes, such as the carbon tax, in achieving environmental sustainability in South Africa. (4 x 2) (8) [40] Copyright reserved Please turn over

Economics/P2 10 Hlayiso/Mock 2026 NSC Mock QUESTION 4: MICROECONOMICS AND CONTEMPORARY ECONOMIC ISSUES 40 MARKS – 30 MINUTES 4.1 Answer the following questions. 4.1.1 Name any TWO examples of merit goods. (2 x 1) (2) 4.1.2 How can tourism create employment opportunities in rural areas? (1 x 2) (2) 4.2 Study the graph below and answer the questions that follow. LORENZ CURVE FOR COUNTRY Z 100 80 Cumulative % of income 60 X e 40 lin A curve Y 20 B 0 20 40 60 80 100 Cumulative % of population Area A = 0,30 Area B = 0,20 [Fictitious data compiled by the examiner] 4.2.1 Identify the line that represents a perfectly equal distribution of income in the graph above. (1) 4.2.2 What percentage of the total income is earned by the poorest 40% of the population of Country Z? (1) 4.2.3 Briefly describe the term Gini coefficient. (2) 4.2.4 Explain the change in the position of curve Y if income inequality in Country Z decreases. (2) 4.2.5 Use the information above to calculate the Gini coefficient for Country Z. Show ALL calculations. (4) Copyright reserved Please turn over

Economics/P2 11 Hlayiso/Mock 2026 NSC Mock 4.3 Study the cartoon below and answer the questions that follow. WHO PAYS FOR THE SMOKE? Pollution? It does not appear anywhere on my balance sheet! Maybe not on yours, my son, but it appears on our medical bills! CLINIC CARD PROFITS [Examiner’s own cartoon] 4.3.1 Identify the type of pollution illustrated in the cartoon above. (1) 4.3.2 Name the international agreement adopted in 2015 that aims to limit global warming to well below 2 ◦ C above pre-industrial levels. (1) 4.3.3 Briefly describe the term environmental sustainability. (2) 4.3.4 Explain why the factory owner ignores the cost of pollution when deciding how much to produce. (2) 4.3.5 How can the government use command-and-control measures to reduce pollution? (2 x 2) (4) 4.4 With the aid of a correctly labelled graph, explain the effect of a minimum price set above the equilibrium price on the market for an agricultural product. (8) 4.5 Analyse the monetary policy measures that the South African Reserve Bank (SARB) can use to keep inflation within the target range. (4 x 2) (8) [40] TOTAL SECTION B: 80 Copyright reserved Please turn over

Economics/P2 12 Hlayiso/Mock 2026 NSC Mock SECTION C Answer any ONE of the two questions in this section in the ANSWER BOOK. Your answer will be assessed as follows: STRUCTURE OF ESSAY MARK ALLOCATION Introduction Max. 2 The introduction is a lower-order response. • A good starting point will be to define the main concept related to the question topic. • DO NOT include any part of the question in your introduction. • DO NOT repeat any part of the introduction in the body. • Avoid mentioning in the introduction what you are going to discuss in the body. Body Max. 26 Main part: Discuss in detail/Discuss in detail with the aid of graphs/In-depth discussion/ Examine/Critically discuss/Analyse/Compare/Evaluate/Distinguish/ Differentiate/Explain/Assess/Debate A maximum of 8 marks may be allocated for headings/examples. Additional part: Critically discuss/Evaluate/Critically evaluate/Deduce/ Max. 10 Compare/Distinguish/Suggest/Interpret/Debate/How A maximum of 2 marks may be allocated for mere listing of facts. Conclusion Max. 2 Any higher-order conclusion should include: • A brief summary of what has been discussed without repeating facts already mentioned • 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 5: MICROECONOMICS 40 MARKS – 40 MINUTES • Discuss in detail, with the aid of correctly labelled graphs, the short-run equilibrium positions of a firm in a perfectly competitive market where the firm makes an economic profit and an economic loss. (26 marks) • Why is a perfectly competitive market regarded as more efficient than a monopoly? (10 marks) [40] QUESTION 6: CONTEMPORARY ECONOMIC ISSUES 40 MARKS – 40 MINUTES • Discuss in detail the measures (approaches) that the state can use to ensure environmental sustainability. (26 marks) • How successful has South Africa been in ensuring environmental sustainability? (10 marks) [40] TOTAL SECTION C: 40 GRAND TOTAL: 150 Copyright reserved