Economics Grade 12 P2 Gauteng Mock 2015 Question Paper (Eng)

Downloaded from hlayiso.com GAUTENG DEPARTMENT OF EDUCATION PREPARATORY EXAMINATION 2015 10732 ECONOMICS SECOND PAPER MARKS: 150 Pages 12 TIME: 2 hours 1 P.T.O.

Downloaded from hlayiso.com ECONOMICS 2 (Second Paper) 10732/15 GAUTENG DEPARTMENT OF EDUCATION PREPARATORY EXAMINATION ECONOMICS (Second 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. 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 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 blue or black ink. 9. Non-programmable pocket calculators may be used. 10. Write neatly and legibly. P.T.O.

Downloaded from hlayiso.com ECONOMICS 3 (Second Paper) 10732/15 SECTION A (COMPULSORY) QUESTION 1 30 MARKS – 15 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 The average revenue curve and the marginal revenue curve in a perfect market are the same, because prices ... A are the same. B decrease with output. C increase with output. 1.1.2 The reason behind the implementation of a competition policy is to … A keep inflation within the target. B regulate the formation of mergers. C avoid service delivery protests. 1.1.3 The oligopolist is the … A price maker. B price negotiator. C price taker. 1.1.4 The most likely barrier to entry for firms wanting to compete with companies like Mercedes or Microsoft is … A licensing problems. B legal restrictions. C technical superiority. 1.1.5 The cancelling by government of major economic projects involves the application of a/an ... policy. A monetary B fiscal C exchange rate 1.1.6 A sudden and uncontrollable increase in prices is referred to as ... inflation. A cost push B demand pull C hyper- P.T.O.

Downloaded from hlayiso.com ECONOMICS 4 (Second Paper) 10732/15 1.1.7 Eco-tourism refers to tourism activities in which people experience ... A cultural and traditional community life. B the diverse natural beauty of a country. C activities of an adventurous nature. 1.1.8 Climate change and gas emissions are related to … A taxes on property rights. B positive externalities. C global warming. 8x2=(16) 1.2 Choose a DESCRIPTION from COLUMN B that matches an 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 Normal profit A Consumption of a product cannot be limited to only the people who have paid 1.2.2 Duopoly for it 1.2.3 Perfect market B Price increase feeding on itself and causing further price increase 1.2.4 Non-rivalry C A place listed by the United Nations, of 1.2.5 Producer Price Index special cultural or physical significance 1.2.6 Inflation spiral D Costs borne by society which do not go through the market mechanism 1.2.7 World Heritage Site E When two firms dominate the market 1.2.8 External costs F A market such as JSE(Johannesburg Securities Exchange) G Measure of inflation at the point of production H Minimum level of income that the owner of the business requires, to stay in the market I Consumption of a product by one person will not prevent others from enjoying it 8x1=(8) P.T.O.

Downloaded from hlayiso.com ECONOMICS 5 (Second Paper) 10732/15 1.3 Identify 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 situation where one dominant firm sets the price and others follow 1.3.2 The sustainable use and management of natural resources 1.3.3 The institution that reviews orders made by the Competition Tribunal and amends or confirms these orders 1.3.4 A measure of inflation that excludes the prices of goods that are highly volatile such as energy, vegetables and fruit 1.3.5 A price set above the equilibrium price/market price to allow producers to make a fair profit 1.3.6 The index that measures the price of a fixed basket of consumer goods and services. 6x1=(6) SECTION A: 30 P.T.O.

Downloaded from hlayiso.com ECONOMICS 6 (Second Paper) 10732/15 SECTION B Answer TWO of the three questions from this section in the ANSWER BOOK. QUESTION 2 MICRO ECONOMICS 40 MARKS – 20 MINUTES 2.1 Answer the following questions. 2.1.1 Name TWO examples of artificial barriers to entry that a monopolist can enjoy. 2x1=(2) 2.1.2 Why is it important for the economy to achieve allocative efficiency in a perfectly competitive market? 1x2=(2) 2.2 Study the graph below and answer the questions that follow. 2.2.1 Which market structure is depicted in the graph? (1) 2.2.2 What does the shaded area on the graph show? (1) 2.2.3 Distinguish between the concepts the short run and the long run. 2x2=(4) 2.2.4 Explain the change in equilibrium from E1 to E2. 2x2=(4) P.T.O.

Downloaded from hlayiso.com ECONOMICS 7 (Second Paper) 10732/15 2.3 Study the illustrations below and answer the questions that follow. 1 2 3 4 2.3.1 Why are the businesses depicted above referred to as paralystatals (paralysed) instead of parastatals? (2) 2.3.2 How does the SA Post Office (Picture 1) contribute to market failure? (2) 2.3.3 Name the parastatal depicted in Picture 2. (2) 2.3.4 How are businesses affected by Eskom’s load-shedding? (4) 2.4 Explain the measures that government can implement to improve income distribution? (8) 2.5 Why is it important to evaluate the total cost and total benefits of an economic project? 4x2=(8) [40] P.T.O.

Downloaded from hlayiso.com ECONOMICS 8 (Second Paper) 10732/15 QUESTION 3 CONTEMPORARY ECONOMIC ISSUES 40 MARKS – 20 MINUTES 3.1 Answer the following questions. 3.1.1 State any TWO purposes of tourism. 2x1=(2) 3.1.2 Why does the government offer environmental subsidies to 1x2=(2) producers? 3.2 Study the cartoon below and answer the questions that follow. Inflation prysstygings Can’t younie? wait till we sort targeting! out who’s really Inflation responsible for price rise? targeting! Marginalised SARB Inflation (Adapted from: cartoonstock.com) 3.2.1 Identify the group of people in society that is most affected by demand pull inflation. (1) 3.2.2 Does the inflation indicated in the cartoon fall within the range of the SARB’s target? (1) 3.2.3 What is the message of the cartoon? (2) 3.2.4 What is the main reason for the type of inflation indicated in the cartoon above? (2) 3.2.5 How can the fiscal policy be used to tackle demand pull inflation? (4) P.T.O.

Downloaded from hlayiso.com ECONOMICS 9 (Second Paper) 10732/15 3.3 Study the pie graph below and answer the questions that follow. (Source: Google: Effects of pollution on our health – South Africa) 3.3.1 Which sector contributed the least to air pollution? (1) 3.3.2 Provide an example of air pollution caused by transport. (1) 3.3.3 Explain why industry is the major contributor to air pollution according to the graph. (2) 3.3.4 Mention any form of government intervention that can reduce air pollution. (2) 3.3.5 How can an improvement in technology reduce air pollution? 2x2=(4) 3.4 Discuss the impact of a continuous rise in prices on investors and savers. 4x2=(8) 3.5 Why are indigenous knowledge systems important to the South-African economy? 4x2=(8) [40] P.T.O.

Downloaded from hlayiso.com ECONOMICS 10 (Second Paper) 10732/15 QUESTION 4 MICRO ECONOMICS & CONTEMPORARY ECONOMIC ISSUES 40 MARKS – 20 MINUTES 4.1 Answer the following questions: 4.1.1 Give TWO examples of businesses that form part of monopolistic competition in your local area. 2x1=(2) 4.1.2 What effect will inflation have on creditors? 1x2=(2) 4.2 Study the graph below and answer the questions that follow. Positive Externality 4.2.1 Identify the area that represents external benefits gained from consuming the product in the graph. (1) 4.2.2 Give an example of a product that yields a positive externality. (1) 4.2.3 Explain the term externality. (2) 4.2.4 Which quantity would be produced if the market was left to its own devices? (2) 4.2.5 Explain how this externality results in an inefficient allocation of resources. 2x2=(4) P.T.O.

Downloaded from hlayiso.com ECONOMICS 11 (Second Paper) 10732/15 4.3 Study the extract below and answer the questions that follow. SA’s tourism focus must shift from Europe, says South African Tourism. South Africa will have to look increasingly for new tourist markets in India, China, Brazil and elsewhere in Africa as the economic slowdown in the eurozone curbs Europeans’ disposable income, South African Tourism says. Tourist arrivals in South Africa from the BRICS countries (Brazil, Russia, India and China) accounted for 330,834 of the 9.2-million international tourists in 2012. Total foreign visitors increased 10.2% over the previous year’s 8.3-million. Europe supplied 1.4-million tourists to South Africa in 2012, an increase of 9.5% on the previous year. South African Tourism chairman Frank Kilbourn said in its annual report tabled in Parliament on Tuesday that the potential for further growth from these emerging markets was "huge". "Globally there is a continuing decline in disposable income and uncertainty regarding the global economic recovery, which places a dampener on travel plans from the US and Europe," he said. "We are conscious of the need to continue to be vigilant and to look for opportunities for growth." Source: Business Day Live, 03 September 2013 (http://www.bdlive.co.za/ business /transport/2013/09/03/sas-tourism-focus) 4.3.1 Identify the reason for the slow growth in tourism from Europe and US. (1) 4.3.2 Name the institution in the public sector with which the Department of Tourism works in partnership. (1) 4.3.3 What is the meaning of the word Eurozone? (2) 4.3.4 Why do you think that there is a strong focus on emerging markets by tourism officials? (2) 4.3.5 In your opinion, how can tourism benefit the poor? (4) 4.4 Explain imperfect competition and demerit goods as reasons for market failure. 4x2=(8) 4.5 Using total revenue and total cost curves, explain profit maximisation under perfect competition. 4x2=(8) [40] TOTAL SECTION B: 80 P.T.O.

Downloaded from hlayiso.com ECONOMICS 12 (Second Paper) 10732/15 SECTION C Answer ONE of the two questions from this section in the ANSWER BOOK. STRUCTURE OF ESSAY: MARK ALLOCATION: Introduction Max. 2 Body:  Main part: Discuss in detail/In depth discussion/Examine/ Max. 26 Critically discuss/Analyse/Compare/Evaluate/Distinguish/ Explain/Assess/Debate  Additional part: Give own opinion/Critically discuss/Evaluate/ Max. 10 Critically evaluate/Draw a graph and explain/Use the graph given and explain/Complete the given graph/Calculate/ Deduce/ Compare/Explain/Distinguish/Interpret/Briefly debate/ How/ Suggest/ Use the information and argue/ debate/ Evaluate Conclusion Max. 2 Total 40 QUESTION 5 MICRO ECONOMICS 40 MARKS – 20 MINUTES “De Beers has a leading role in the diamond exploration, diamond mining, diamond retail, diamond trading and industrial diamond manufacturing sectors.”  Examine the characteristics of a monopoly as a market structure. (26 marks)  Compare the long run equilibrium positions of a perfect market and a monopolist, using graphs only. (10 marks) [40] QUESTION 6 CONTEMPORARY ECONOMIC ISSUES 40 MARKS – 20 MINUTES “The environment is under pressure because human claims on the environment are more than what nature can provide for on a long term basis.”  Discuss the state of the environment with reference to conservation and preservation. (26 marks)  Evaluate the success of major international agreements on environmental sustainability. (10 marks) [40] TOTAL SECTION C: 40 GRAND TOTAL: 150 END