Economics Grade 12 Paper 2 Gauteng Mock 2017 Question Paper

Downloaded from hlayiso.com GAUTENG DEPARTMENT OF EDUCATION PREPARATORY EXAMINATION 2017 10732 ECONOMICS SECOND PAPER TIME: 2 hours MARKS: 150 13 pages 1 P.T.O.

Downloaded from hlayiso.com ECONOMICS 2 (Second Paper) 10732/17 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. 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 EACH question on a NEW page. 7. Leave 2 – 3 lines open 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 pocket calculators may be used. 11. Write neatly and legibly. P.T.O.

Downloaded from hlayiso.com ECONOMICS 3 (Second Paper) 10732/17 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 – D) next to the question number (1.1.1 – 1.1.8) in the ANSWER BOOK. 1.1.1 Products that are exactly the same are known as … goods. A heterogonous B homogenous C unique D differentiated 1.1.2 The price elasticity of demand on the upper portion of the kinked demand curve is more ... A inelastic. B unitary elastic. C elastic. D semi-elastic. 1.1.3 Monopolies will realise a … profit in the long run. A normal B economic C zero D subnormal 1.1.4 Cost-benefit-analysis is a method to assess … A private sector projects. B market failures. C government projects. D externalities. 1.1.5 Tourism has the biggest effect on the … sector. A services B transport C production D manufacturing P.T.O.

Downloaded from hlayiso.com ECONOMICS 4 (Second Paper) 10732/17 1.1.6 When the needs of the present generation are met without compromising the needs of future generations, it is known as … A population growth. B economic growth. C economic development. D sustainable development. 1.1.7 The World Summit on the environment held in Durban in 2014 was known as the … A Kyoto Protocol. B COP17. C Johannesburg World Summit on Sustainable Development. D Rio de Janeiro Declaration. 1.1.8 The introduction of waste material into the environment is known as … A recycling. B sanitation. C by-products. D pollution. (8 x 2) (16) P.T.O.

Downloaded from hlayiso.com ECONOMICS 5 (Second Paper) 10732/17 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 Break-even point A Visits to a country by a non-resident of the country 1.2.2 Industry B Individuals are not able to abstain from consumption. 1.2.3 Price leadership C A buyer that has enough market power to influence the market price of the product 1.2.4 Non-rejectability D The general price level shows a persistent decrease 1.2.5 Deflation E A situation where one firm fixes the price and the 1.2.6 Inbound tourism others accept it as the market price 1.2.7 Climate change F Any significant and sustained change in the normal weather pattern 1.2.8 Green tax G Enterprises producing the same kinds of products H The point where the firm does not make supernormal profits or losses but merely normal profits I Levies for the adverse effect on the environment (8 x 1) (8) 1.3 Give ONE term for each of the following descriptions. Write only the term next to the question number (1.3.1 – 1.3.6) in the ANSWER BOOK. 1.3.1 The supply curve for this market structure starts where AVC = MC. 1.3.2 A market structure where a few sellers dominate the market 1.3.3 A situation where resources cannot be reallocated to make one person / group better off without making another person / group worse off 1.3.4 An index that measures the prices of goods that are produced locally when they leave the production floor 1.3.5 A fuel that is manufactured from vegetable oils, maize, sugar cane, or corn 1.3.6 A place that is listed by UNESCO that has a special cultural or physical importance (6 x 1) (6) TOTAL SECTION A: [30] P.T.O.

Downloaded from hlayiso.com ECONOMICS 6 (Second Paper) 10732/17 SECTION B Answer any TWO of the three questions from this section in the ANSWER BOOK. QUESTION 2: MICRO-ECONOMICS 40 MARKS – 30 MINUTES 2.1 Answer the following questions. 2.1.1 Name the TWO market structures where complete market information is possible. (2 x 1) (2) 2.1.2 How can the government influence the prices of goods in the perfect market structure? (1 x 2) (2) 2.2 Study the pictures below and answer the questions that follow. MONOPOLY MARKET STRUCTURE Barriers to entry Hey Open the door PATENTED Let us in Monopoly [Source: Internet images, 2017] 2.2.1 Identify TWO barriers of entry as portrayed by the cartoon. (2 x 1) (2) 2.2.2 What type of monopoly is depicted in the above cartoon? (2) 2.2.3 Briefly describe the term monopoly. (2) 2.2.4 Why can’t a monopolist charge excessively high prices for his products? (2 x 2) (4) P.T.O.

Downloaded from hlayiso.com ECONOMICS 7 (Second Paper) 10732/17 2.3 Read the following extract carefully and answer the questions that follow. VODACOM TAKES AIM AT TELKOM’S FREEME Vodacom has become the first operator to respond to Telkom's aggressive new FreeMe tariff plans. It has quietly introduced the new offering, which adds data to its existing Smart, Smart Top Up and Red packages — for a price — as a response to the FreeMe deals. Telkom launched its data-led FreeMe packages, offering consumers large data bundles at the high end bundled with free minutes, free SMSes, zero-rated social media and other benefits. [Source: https://www.techcentral.co.za/vodacom-takes-aim-at-telkoms-freeme/67627] 2.3.1 What is the FreeMe tariff plan of Telkom? (1) 2.3.2 What type of competition is depicted in the above extract? (1) 2.3.3 Why has Vodacom decided to introduce a similar marketing strategy as Telkom? (2 x 2) (4) 2.3.4 What else can Vodacom do to increase its client base? (2 x 2) (4) 2.4 Briefly explain the nature of products under monopolistic competition. (4 x 2) (8) 2.5 How will new entrants in the perfect competitive market impact on the profit levels of existing businesses? (8) [40] P.T.O.

Downloaded from hlayiso.com ECONOMICS 8 (Second Paper) 10732/17 QUESTION 3: CONTEMPORARY ECONOMIC ISSUES 40 MARKS – 30 MINUTES 3.1 Answer the following questions. 3.1.1 Name any TWO examples of items that can be recycled. (2 x 1) (2) 3.1.2 How can tourism negatively affect the environment? (1 x 2) (2) 3.2 Study the extract below and answer the questions that follow. HIDDEN GEMS – THE FUTURE OF TOURISM The 2016 TOURISM INDABA – the Hidden Gems Zone, showcased products and services from South Africa’s Small, Medium and Micro-sized Enterprises (SMMEs). Over three days, the businesses have enjoyed networking opportunities with buyers from around the world, attended workshops facilitated to help them with knowledge and tools on how to access the market and shared their stories with global media. Catering specifically for SMMEs, is the INDABA development zone with 70 SMMEs exhibiting, all selected for their uniqueness and authentic representation of South Africa as a destination. Of these, 20 focus on the country’s adventure activities. [Source: www.indaba-southafrica.co.za] 3.2.1 How many SMMEs were selected to exhibit the uniqueness and authenticity of the South African tourism profile? (1) 3.2.2 List ONE benefit that SMMEs have enjoyed during the Indaba. (1) 3.2.3 What challenges do SMMEs normally encounter in the tourist industry? (2 x 2) (4) 3.2.4 How can SMMEs in the tourist sector develop the South African economy? (2 x 2) (4) P.T.O.

Downloaded from hlayiso.com ECONOMICS 9 (Second Paper) 10732/17 3.3 Study the information below and answer the questions that follow. Humans are the only creatures in this world that cut the trees, make paper from it and then write ‘Save our Trees’ on it Conservation strategies are employed to ensure the economical use of both renewable and non-renewable resources [Source: https://za.pinterest.com/pin/551057704378502780/3.3.1] 3.3.1 Name ONE example of a renewable resource. (1) 3.3.2 What is needed, according to the above information, to ensure the economical use of resources? (1) 3.3.3 Briefly describe the concept of conservation. (2) 3.3.4 How does the depletion of resources impact the environment negatively? (2) 3.3.5 What can be done to reduce the cutting down of our trees? (2 x 2) (4) 3.4 Briefly explain charging for the use of the environment and levy environmental taxes as measures to protect the environment. (2 x 4) (8) 3.5 How does the government benefit from tourism in South Africa? (8) [40] P.T.O.

Downloaded from hlayiso.com ECONOMICS 10 (Second Paper) 10732/17 QUESTION 4: MICRO-ECONOMICS & CONTEMPORARY ECONOMIC ISSUES 40 MARKS – 30 MINUTES 4.1 Answer the following questions. 4.1.1 List any TWO environmental World Heritage Sites in South Africa. (2 x 1) (2) 4.1.2 How can a producer in the perfect market maintain his / her profit levels if the market price decreases? (1 x 2) (2) 4.2 Study the graph below and answer the questions that follow. PERFECT MARKET: LONG TERM EQUILIBRIUM Revenue/Cost MC A AC A 12 MR=AR 10 C 100 100 Quantity 4.2.1 Label point A in the above graph. (1) 4.2.2 Identify the demand curve in the above graph. (1) 4.2.3 Calculate the profit / loss in the above market. (4) 4.2.4 Draw a well-labelled graph to illustrate the long term equilibrium position of the perfect competitor. (4) P.T.O.

Downloaded from hlayiso.com ECONOMICS 11 (Second Paper) 10732/17 4.3 Study the cartoon below and answer the questions that follow. TOURING IN SOUTH AFRICA? WHAT A PLEASURE!!! Tourism is really good for our businesses!!! [Adapted from: Internet images] 4.3.1 What type of tourism is evident in the picture? (1) 4.3.2 State ONE reason why tourists are attracted to South Africa. (1) 4.3.3 Briefly describe the term tourist. (2) 4.3.4 Explain tourism is good for our businesses. (2) 4.3.5 How does indigenous knowledge promote tourism? (2 x 2) (4) 4.4 Briefly explain the aims / objectives of competition policies in South Africa. (4 x 2) (8) 4.5 Why should businesses sustain the environment? (4 x 2) (8) [40] TOTAL SECTION B: 80 P.T.O.

Downloaded from hlayiso.com ECONOMICS 12 (Second Paper) 10732/17 SECTION C Answer any ONE of the two questions from this section in the ANSWER BOOK. MARK STRUCTURE OF ESSAY ALLOCATION Introduction The introduction is a lower-order response. • A good starting point would be to define the main concept related to the question topic. Max. 2 • Do not include any part of the question in your introduction. • Do not repeat any part of the introduction in the body. • Avoid saying in the introduction what you are going to discuss in the body. Body • Main part: Discuss in detail / In depth discussion / Examine / Max. 26 Critically discuss / Analyse / Compare / Evaluate / Distinguish / Explain / Differentiate • 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 / Max.10 Deduce / Compare / Explain / Distinguish / Interpret / Briefly debate / How? / Suggest / Use the information and argue / Debate / Evaluate 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 • An opinion or value-judgement on the facts discussed Max. 2 • Additional support information to strengthen the discussion / analysis • A contradictory viewpoint with motivation, if required • Recommendations TOTAL 40 P.T.O.

Downloaded from hlayiso.com ECONOMICS 13 (Second Paper) 10732/17 QUESTION 5: MICRO ECONOMICS 40 MARKS – 40 MINUTES “Adam Smith proclaimed that the invisible hand will control the economy. However, in reality it is necessary for the government to intervene.” • Discuss in detail the implementing of the following aspects as part of government intervention as consequences of market failure. Use well-labelled graphs in your discussion: - Taxes (13 marks) - Maximum prices (13 marks) (26 marks) • Why is it necessary to implement a national minimum wage in South Africa? (10 marks) [40] QUESTION 6: CONTEMPORARY ECONOMIC ISSUES 40 MARKS – 40 MINUTES “Inflation is the only man-made economic force that is solely man’s fault.” • Discuss in detail the causes of demand-pull inflation. (26 marks) • How successful is the fiscal policy as a measure to combat inflation? (10 marks) [40] TOTAL SECTION C: 40 TOTAL: 150 END