Economics Grade 12 Paper 1 Gauteng Mock 2016 Question Paper

Downloaded from hlayiso.com GAUTENG DEPARTMENT OF EDUCATION PREPARATORY EXAMINATION 2016 10731 ECONOMICS FIRST PAPER TIME: 2 hours MARKS: 150 13 pages 3

Downloaded from hlayiso.com ECONOMICS 2 (First Paper) 10731/16 GAUTENG DEPARTMENT OF EDUCATION PREPARATORY EXAMINATION ECONOMICS (First Paper) TIME: 2 hours MARKS: 150 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 any ONE of the TWO questions. 2. Answer only the required number of questions. Answers in excess of the required number of questions will NOT be marked. 3. Number the answers correctly according to the numbering system used in this question paper. 4. Write the number of the question above each answer. 5. Read the questions carefully. 6. Start the answer to each question on a NEW page. 7. Leave 2 – 3 lines between sub-sections of questions. 8. Answer the questions in full sentences and ensure that the format, content and context of your responses comply with the requirements of the questions. 9. Use only blue or black ink. 10. Non-programmable calculators may be used. 11. Write neatly and legibly. P.T.O.

Downloaded from hlayiso.com ECONOMICS 3 (First Paper) 10731/16 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 – C) next to the question number (1.1.1 – 1.1.8) in the ANSWER BOOK. 1.1.1 Which period of the business cycle is associated with rising profits? A Trough B Downswing C Prosperity 1.1.2 In the circular flow model, savings is a(n) ... A injection. B leakage. C arrow. 1.1.3 MTBPS is usually tabled in the month of ... A February. B April. C October. 1.1.4 The deliberate manipulation of a currency to higher levels is known as … A appreciation. B revaluation. C devaluation. 1.1.5 The Industrial Policy Action Plan (IPAP) has a rolling period of ... years. A 3 B 5 C 10 1.1.6 A major task of the Department of Trade and Industry is to encourage … exports. A mineral B value-added C agricultural P.T.O.

Downloaded from hlayiso.com ECONOMICS 4 (First Paper) 10731/16 1.1.7 This measures the price of imported goods at the point where they enter the country. A Production Price Index (PPI) B Consumer Price Index (CPI) C Economically Active Population (EAP) 1.1.8 Government policies relating to manufacturing are often called … policies. A developmental B structural C industrial (8x2) (16) 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 number (1.2.1 – 1.2.8) in the ANSWER BOOK. COLUMN A COLUMN B 1.2.1 Capital market A The currencies of different countries 1.2.2 Community goods B Selling price of an item is cheaper than in the country of origin 1.2.3 Foreign exchange C A non-tariff barrier to trade 1.2.4 Dumping D Ability of the economy to accommodate 1.2.5 Gini coefficient workers in specific areas 1.2.6 Spatial Development E A free area formed through agreements by Initiative certain countries 1.2.7 Labour absorption F A situation for long-term deposits and rate borrowings 1.2.8 Trade bloc G A measure of the level of income inequality H A policy to alleviate poverty in specific areas I Goods which are non-rivalrous in consumption (8x1) (8) P.T.O.

Downloaded from hlayiso.com ECONOMICS 5 (First Paper) 10731/16 1.3 Give the concept described in each of the following statements. Write only the term next to the question number (1.3.1 – 1.3.6) in the ANSWER BOOK. 1.3.1 A business cycle that has a lifespan of 3 to 5 years resulting from businesses adapting their inventory levels 1.3.2 A curve which shows the relationship between the tax rates and tax revenue 1.3.3 Restrictions of government on the purchase or sale of foreign currency by residents 1.3.4 A policy framework for skills development in the workplace 1.3.5 A composite statistic of life expectancy, education and income indices used to rank countries’ human development 1.3.6 The most favourable interest rate which banks charge on loans to preferential clients (6x1) (6) TOTAL SECTION A: 30 P.T.O.

Downloaded from hlayiso.com ECONOMICS 6 (First Paper) 10731/16 SECTION B Answer any TWO of the three questions from this section in the ANSWER BOOK. QUESTION 2 MACRO-ECONOMICS 40 MARKS – 30 MINUTES 2.1 Answer the following questions. 2.1.1 Name any TWO types of markets in a closed economy. (2x1) (2) 2.1.2 What will be the effect of an overvalued rand? (1x2) (2) 2.2 Study the graph below and answer the questions that follow. MACRO-ECONOMIC MULTIPLIER E=Y Expenditure (E) E¹ = 30+ 0.5Y 30 E∘ = 20 + 0.5Y 20 Income (Y) 40 60 2.2.1 What is represented by the line E = Y in the above graph? (1x2) (2) 2.2.2 Briefly describe the concept multiplier. (1x2) (2) 2.2.3 What is the relationship between the multiplier and the marginal propensity to consume (mpc)? (1x2) (2) 2.2.4 Calculate the multiplier for the above scenario. (Show all calculations.) (4) P.T.O.

Downloaded from hlayiso.com ECONOMICS 7 (First Paper) 10731/16 2.3 Study the extract below and answer the questions that follow. AU SUMMIT IN SOUTH AFRICA The leaders of the 54 member states of the African Union (AU) will be meeting for their 25th ordinary summit in South Africa. A Tripartite Free Trade Area was launched earlier in Egypt spanning 26 countries of Southern and Eastern Africa in creating a market of 625 million people with a gross domestic product of more than $1-trillion. The packed agenda will include discussions on a plan to make the AU more self-sufficient, less dependent on foreign donors and able to fund its own programmes. [Adapted: Mail and Guardian, 09 June 2015] 2.3.1 List TWO reasons for the AU summit in South Africa. (2x1) (2) 2.3.2 Why should the AU become less dependent on foreign donors? (2x2) (4) 2.3.3 How will South Africa benefit from being a member of the Tripartite Free Trade Area? (2x2) (4) 2.4 Briefly differentiate between the endogenous and exogenous reasons of a business cycle. (2x4) (8) 2.5 How can the South African government avoid public sector failure? (4x2) (8) [40] P.T.O.

Downloaded from hlayiso.com ECONOMICS 8 (First Paper) 10731/16 QUESTION 3 ECONOMIC PURSUITS 40 MARKS – 30 MINUTES 3.1 Answer the following questions. 3.1.1 Name TWO international organisations that require standardized methods for countries to report economic data. (2x1) (2) 3.1.2 How can the cost of doing business influence the supply for goods and services? (1x2) (2) 3.2 Read the extract below and answer the questions that follow. LAUNCHING YET ANOTHER IDZ President Jacob Zuma handed over the operator permit for the Dube Trade Port IDZ at the King Shaka airport in Durban, to KwaZulu-Natal Premier, Senzo Mchunu. The IDZs are intended to promote industrialization and create awareness about the Special Economic Zones programme and its potential to grow the economy. IDZs are also aimed at creating jobs through establishing a conducive environment for Foreign Direct Investment and the export of value- added commodities. IDZs had many weaknesses, which led to the introduction of the new SEZ policy. The new SEZ Policy provides a framework for strategic industrialisation and for the development of a wider array of SEZs, which supports the broader objectives of the IPAP and the NGP. [Adapted from: The Citizen, 15 June 2015, www.thedti.gov.za] 3.2.1 List TWO aims of the IDZs according to the extract. (2x1) (2) 3.2.2 Briefly describe the essential difference between the IDZ and the SEZ. (2x2) (4) 3.2.3 How can the government encourage foreign direct investment into the Special Economic Zones? (2x2) (4) P.T.O.

Downloaded from hlayiso.com ECONOMICS 9 (First Paper) 10731/16 3.3 Study the cartoon below and answer the questions that follow. EPWP – a development initiative in South Africa We need to ensure quality, so that this pavement lasts Government longer!!!! provides for us!!! [Adapted source: Internet Cartoons] 3.3.1 What is the meaning of the abbreviation EPWP? (1) 3.3.2 What is the main criticism, according to the cartoon, of the EPWP? (1) 3.3.3 Briefly describe the main aims of the government through the implementation of the EPWP. (2x2) (4) 3.3.4 How can the implementation of the EPWP be strengthened and improved in South Africa? (2x2) (4) 3.4 Explain poverty and trade as challenges in the North/South divide. (2x4) (8) 3.5 How can an investment in social (human) capital improve economic development in South Africa? (4x2) (8) [40] P.T.O.

Downloaded from hlayiso.com ECONOMICS 10 (First Paper) 10731/16 QUESTION 4: MACRO-ECONOMICS & ECONOMIC PURSUITS 40 MARKS – 30 MINUTES 4.1 Answer the following questions. 4.1.1 Name TWO key growth aspects of the Integrated Manufacturing Sector (IMS). (2x1) (2) 4.1.2 How has the government promoted economic equity in terms of its education commitments? (1x2) (2) 4.2 Study the cartoon below and answer the questions that follow. PRAVIN, IT’S A PUBLIC HOLIDAY – DO YES! I HAVE TO RECONCILE YOU REALLY HAVE TO WORK TODAY? THESE ACCOUNT STUDENT FEES STATE-OWNED ENTERPRISES SAA RAND ECONOMIC SHRINKAGE REALITY CHECK TOETS [Source: Eye Witness News multimedia] 4.2.1 What message is depicted in the cartoon? (2) 4.2.2 Why are “student fees” on the reconciliation account? (2) 4.2.3 Briefly describe the term economic shrinkage. (2) 4.2.4 Why are State-Owned Enterprises (SOEs) seen as a problem in public sector provisioning? (2x2) (4) P.T.O.

Downloaded from hlayiso.com ECONOMICS 11 (First Paper) 10731/16 4.3 Study the graph below and answer the questions that follow. Employment, output and real wages in manufacturing Indices: 2010 = 100 Real salaries and wages per worker Output Employment [Source: SARB Quarterly Bulletin, Dec 2015] 4.3.1 What are the trends of employment and real salaries and wages since 2010? (2x1) (2) 4.3.2 What are real salaries and wages? (2) 4.3.3 Explain any purpose of employment indicators in the economy. (2) 4.3.4 How can labour productivity increase in South Africa? (2x2) (4) 4.4 Explain moving averages and the amplitude as features underpinning forecasting. (2x4) (8) 4.5 What are the benefits of good governance in the regional development of a country? (4x2) (8) [40] TOTAL SECTION B: 80 P.T.O.

Downloaded from hlayiso.com ECONOMICS 12 (First Paper) 10731/16 SECTION C Answer ONE of the two questions from this section in the ANSWER BOOK. MARK STRUCTURE OF ESSAY ALLOCATION Introduction Max. 2 Body Main part: Discuss in detail / In-depth discussion / Examine / Critically discuss / Analyse / Compare / Evaluate / Distinguish / Explain / Assess / Max. 26 Debate. Additional part: Give own opinion / Critically discuss / Evaluate / Critically evaluate / Draw a graph and explain / Use the graph given and explain / Complete the given graph / Calculate / Deduce / Compare / Max. 10 Explain / Distinguish / Interpret / Briefly debate / How? / Suggest / Use the information and argue / 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 Max. 2  An 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 Max. 40 QUESTION 5 MACRO-ECONOMICS 40 MARKS – 40 MINUTES “Foreign exchange is becoming increasingly important for the well-being of our country.”  Discuss foreign exchange markets under the following headings:  Different kinds of exchange rates  Factors that influence the demand for foreign currency (26 marks)  Using a graph, explain the effect on the rand if there is an influx of tourists from the USA to South Africa. (10 marks) [40] P.T.O.

Downloaded from hlayiso.com ECONOMICS 13 (First Paper) 10731/16 QUESTION 6 ECONOMIC PURSUITS 40 MARKS – 40 MINUTES “The performance of economies is assessed by judging the performance according to certain criteria or standards.”  Discuss the key social indicators relating to the following:  Demographics  Services  Housing and urbanization (26 Marks)  How can the equitable distribution of income as a macro-economic objective be achieved by the South African government? (10 Marks) [40] TOTAL SECTION C: 40 TOTAL: 150 END