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

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

Economics/P2 2 Hlayiso/Prediction 2026 NSC Prediction 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/Prediction 2026 NSC Prediction 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 The demand curve of an individual firm in a perfect market is perfectly … A inelastic. B elastic. C kinked. D unitary. 1.1.2 A monopoly that exists because one business can supply the entire market at a lower average cost than two or more businesses is called a/an … monopoly. A artificial B natural C legal D local 1.1.3 A negative externality exists when the marginal social cost (MSC) is … the marginal private cost (MPC). A greater than B equal to C less than D half of 1.1.4 The demand curve of an oligopolist is … because competitors react differently to price increases and price decreases. A horizontal B vertical C kinked D upward sloping 1.1.5 The price index that measures changes in the prices of goods when they leave the factory is the … A consumer price index. B producer price index. C GDP deflator. D core price index. Copyright reserved Please turn over

Economics/P2 4 Hlayiso/Prediction 2026 NSC Prediction 1.1.6 Prices that are set or approved by the government or public authorities are called … prices. A equilibrium B market C administered D minimum 1.1.7 Visitors who travel to another country and return home on the same day without staying overnight are called … A transit tourists. B same-day visitors. C domestic tourists. D outbound tourists. 1.1.8 The international agreement that first set legally binding targets for developed countries to reduce greenhouse gas emissions is the … A Montreal Protocol. B Kyoto Protocol. C Basel Convention. D Ramsar Convention. (8 x 2) (16) Copyright reserved Please turn over

Economics/P2 5 Hlayiso/Prediction 2026 NSC Prediction 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 Shut-down point A the careful use and management of natural resources so that they remain available for future generations 1.2.2 Cartel B the point at which a firm’s average revenue is equal to its minimum average variable cost 1.2.3 Shadow price C an extremely high rate of inflation, e.g. more than 50% per month 1.2.4 Free riders D the point at which total revenue is equal to total cost 1.2.5 Core inflation E people who enjoy the benefits of a good without paying for it 1.2.6 Hyperinflation F a group of businesses that formally agree to fix prices or share markets 1.2.7 Ecotourism G travel to natural areas that conserves the environment and benefits local people 1.2.8 Conservation H a value given to a cost or benefit for which no market price exists I inflation that excludes items with highly volatile prices from the CPI (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 Charging different prices to different consumers for the same product for reasons not related to differences in cost 1.3.2 Costs that cannot be recovered once they have been incurred, even if the business closes down 1.3.3 A payment made by the government to producers to lower their cost of production 1.3.4 A representative collection of goods and services bought by households that is used to calculate the consumer price index 1.3.5 Travel by residents of a country to destinations within the same country 1.3.6 Gases, such as carbon dioxide and methane, that trap heat in the earth’s atmosphere (6 x 1) (6) TOTAL SECTION A: 30 Copyright reserved Please turn over

Economics/P2 6 Hlayiso/Prediction 2026 NSC Prediction 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 variable costs. (2 x 1) (2) 2.1.2 Why does the government often regulate the prices charged by natural monopolies? (1 x 2) (2) 2.2 Study the graphs below and answer the questions that follow. PERFECT MARKET: INDUSTRY AND INDIVIDUAL FIRM INDUSTRY INDIVIDUAL FIRM Price (R) Price/Cost (R) S MC E e D = AR = MR 40 40 32 AC D 0 6 000 0 300 Quantity Quantity (units) (units) [Examiner’s own] 2.2.1 Identify the market price in the graph above. (1) 2.2.2 Name ONE example of a market in South Africa that comes close to being a perfect market. (1) 2.2.3 Briefly describe the term normal profit. (2) 2.2.4 Explain why the individual firm cannot sell its product above the market price. (2) 2.2.5 Use the information in the graph above to calculate the economic profit made by the individual firm. Show ALL calculations. (4) Copyright reserved Please turn over

Economics/P2 7 Hlayiso/Prediction 2026 NSC Prediction 2.3 Study the extract below and answer the questions that follow. TRIBUNAL BLOCKS DAIRY MERGER The Competition Tribunal has prohibited the proposed merger between Kuhle Dairies and Thaba Milk Processors, two of the largest milk processors in the region. The Competition Commission had recommended that the merger be prohibited because the combined firm would buy almost half of all raw milk produced by local dairy farmers and would control 48% of the market for packaged fresh milk. The Commission argued that farmers would have fewer buyers for their milk and that consumers could face higher prices. The two firms have 30 days to decide whether they will take the decision on appeal. [Examiner’s own – fictitious case for assessment purposes] 2.3.1 Identify, in the extract above, the institution that recommended that the merger be prohibited. (1) 2.3.2 Name the court to which the two firms can appeal against the decision of the Competition Tribunal. (1) 2.3.3 Briefly describe the term merger. (2) 2.3.4 Explain why a firm that controls a large share of a market may harm consumers. (2) 2.3.5 How can the decision of the Competition Tribunal benefit dairy farmers and consumers? (2 x 2) (4) 2.4 With the aid of a correctly labelled graph, explain the shut-down point of a firm in a perfectly competitive market. (8) 2.5 With reference to game theory, analyse why firms in an oligopoly may decide to collude rather than compete on price. (4 x 2) (8) [40] Copyright reserved Please turn over

Economics/P2 8 Hlayiso/Prediction 2026 NSC Prediction QUESTION 3: CONTEMPORARY ECONOMIC ISSUES 40 MARKS – 30 MINUTES 3.1 Answer the following questions. 3.1.1 Name any TWO categories of items that are excluded when core inflation is calculated. (2 x 1) (2) 3.1.2 How can tourism contribute to the conservation of the natural environment? (1 x 2) (2) 3.2 Study the table below and answer the questions that follow. CONSUMER PRICE INDEX FOR SELECTED CATEGORIES (DECEMBER 2024 = 100) Category August 2025 August 2026 Food and non-alcoholic beverages 103,5 108,6 Housing and utilities (incl. electricity) 105,2 110,9 Transport (incl. fuel) 102,1 101,4 All items (headline CPI) 104,0 107,3 [Hypothetical data compiled by the examiner] 3.2.1 Identify the category in which prices decreased between August 2025 and August 2026. (1) 3.2.2 Name the institution that compiles the consumer price index in South Africa. (1) 3.2.3 Briefly describe the term headline inflation. (2) 3.2.4 Explain why an increase in food prices affects poor households more than rich households. (2) 3.2.5 Use the information in the table above to calculate the headline inflation rate from August 2025 to August 2026. Show ALL calculations. (4) 3.3 Study the extract below and answer the questions that follow. INDIGENOUS FORESTS UNDER PRESSURE In the fictitious Mthonjeni district, large-scale deforestation has destroyed indigenous forest, as trees are cut down for firewood, building poles and new farmland. Rare cycads and medicinal plants are being removed and sold illegally, and several bird and plant species have disappeared from the area. The forests are common property: nobody owns them and nobody pays for the trees that are removed. A new project gives local communities co-ownership of the forest and a share of the income from guided forest walks, provided that they help to protect the trees and plants. [Examiner’s own] 3.3.1 Identify, in the extract above, the environmental problem caused by the removal of trees. (1) Copyright reserved Please turn over

Economics/P2 9 Hlayiso/Prediction 2026 NSC Prediction 3.3.2 Name the international agreement that regulates the trade in endangered plant and animal species. (1) 3.3.3 Briefly describe the term biodiversity. (2) 3.3.4 Explain why the market fails to protect the forests in the Mthonjeni district. (2) 3.3.5 How can education and awareness campaigns help to reduce environmental damage? (2 x 2) (4) 3.4 Briefly discuss administered prices and the depreciation of the exchange rate as causes of cost-push inflation. (2 x 4) (8) 3.5 Analyse how market-based measures, such as environmental taxes, marketable permits and property rights, can be used to ensure environmental sustainability. (4 x 2) (8) [40] Copyright reserved Please turn over

Economics/P2 10 Hlayiso/Prediction 2026 NSC Prediction QUESTION 4: MICROECONOMICS AND CONTEMPORARY ECONOMIC ISSUES 40 MARKS – 30 MINUTES 4.1 Answer the following questions. 4.1.1 Give any TWO examples of public goods. (2 x 1) (2) 4.1.2 How does high inflation affect fixed-income earners? (1 x 2) (2) 4.2 Study the graph below and answer the questions that follow. GOVERNMENT INTERVENTION: MAXIMUM PRICE ON BREAD Price (R) S e 30 a b 20 maximum price D 0 400 600 800 Quantity (thousand loaves) [Examiner’s own] 4.2.1 Identify the equilibrium price of bread in the graph above. (1) 4.2.2 Give ONE reason why the government may set a maximum price on basic foodstuffs. (1) 4.2.3 Briefly describe the term maximum price. (2) 4.2.4 Explain why a black market may develop when a maximum price is set. (2) 4.2.5 How can the government reduce the shortage created by the maximum price? (2 x 2) (4) Copyright reserved Please turn over

Economics/P2 11 Hlayiso/Prediction 2026 NSC Prediction 4.3 Study the extract below and answer the questions that follow. HERITAGE ROUTE BRINGS VISITORS TO VILLAGES A new heritage route in Limpopo links six villages to the Mapungubwe Cultural Landscape, one of South Africa’s World Heritage Sites. Visitors stay in family-run homestays, eat traditional meals, buy handmade crafts and listen to elders who explain how the community has used local plants as medicine for generations. The route is managed by a community trust in partnership with a private tour operator. Guides are trained young people from the villages, and part of every booking fee goes to a fund that maintains the heritage sites. [Examiner’s own – fictitious project] 4.3.1 Identify, in the extract above, the World Heritage Site that is linked to the heritage route. (1) 4.3.2 Name the type of tourism in which visitors experience the traditions and way of life of a community. (1) 4.3.3 Briefly describe the term indigenous knowledge systems. (2) 4.3.4 Explain how family-run homestays benefit village households. (2) 4.3.5 How can the government support small tourism businesses in rural areas? (2 x 2) (4) 4.4 Briefly discuss intangible costs and benefits and shadow prices as components of a cost-benefit analysis. (2 x 4) (8) 4.5 Analyse the impact of high inflation on economic growth and on the balance of payments. (4 x 2) (8) [40] TOTAL SECTION B: 80 Copyright reserved Please turn over

Economics/P2 12 Hlayiso/Prediction 2026 NSC Prediction 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 the causes of market failure. (26 marks) • How effective is the national minimum wage in reducing the unequal distribution of income in South Africa? (10 marks) [40] QUESTION 6: CONTEMPORARY ECONOMIC ISSUES 40 MARKS – 40 MINUTES • Discuss in detail the effects of tourism on gross domestic product (GDP), employment, poverty, infrastructure and the environment. (26 marks) • Evaluate the success of South Africa’s policy initiatives in promoting tourism. (10 marks) [40] TOTAL SECTION C: 40 GRAND TOTAL: 150 Copyright reserved