Economic Management Sciences Grade 7 June 2021 Memo

Bedfordview Primary School MID- YEAR TEST MEMORANDUM Subject: ECONOMIC MANAGEMENT SCIENCES Examiner: Mrs T. Naidoo Date: 22 June 2021 Moderator: Mrs P. Naidoo Time Allocation: 90 minutes Question Analysis SECTION A SECTION B THE ECONOMY 30% FINANCIAL LITERACY 70% Question 1 2 3 4 5 6 7 8 9 TOTAL 100 Maximum 10 5 10 5 14 14 15 12 15 mark Learner’s mark Moderated mark -------------------------------------------------------------------------------------------------------------------------------------- SECTION A: THE ECONOMY 30 MARKS QUESTION 1: QUESTION 2: CLASSIFY THE SECTORS OF BUSINESS MATCHING 1.1 J BUSINESS PRIMARY SECONDARY TERTIARY 1.2 F 2.1 Mining √ 1.3 K/ A 2.2 Restaurants √ 1.4 G 1.5 I 2.3 Farming √ 1.6 H 2.4 Car factory √ 1.7 D 2.5 Hospitals √ 1.8 C MAXIMUM MARK /5 1.9 B 1.10 E MAX MARK / 10 QUESTION 3: WORD BANK Only write in the missing word in the corresponding space below. 3.1 Manufacturing 3.2 Service 3.3 free goods 3.4 Economic 3.5 Consumers 3.6 Cheque

3.7 non- renewable 3.8 public goods 3.9 Cowrie shells 3.10 Electronic banking MAX / 10 MARKS QUESTION 4: ACRONYMS Write out each acronym in full 4.1 BBBEE Broad based black economic empowerment 4.2 ATM Automatic Teller Machine 4.3 EFT Electronic Funds Transfer 4.4 EPWP Expanded Public Works Programme 4.5 GDP Gross Domestic Product Maximum mark / 5 MARKS SECTION B: FINANCIAL LITERACY QUESTION 5: Tick the corresponding column on the right for each account. Only one column must be indicated in each case. Account name FIXED CURRENT LONG CURRENT INCOME EXPENSE ASSETS ASSETS TERM LIABILITIES LIABILITIE S 5.1 Vehicles √ 5.2 Fuel √ 5.3 Trading stock √ 5.4 Mortgage √ 5.5 Telephone √ 5.6 Land & Buildings √ 5.7 creditors √ 5.8 petty cash √ 5.9 bank overdraft √ 5.10 equipment √ 5.11 debtors √ 5.12 cash float √ 5.13 discount √ 5.14 bank √ MAXIMUM MARK / 14 QUESTION 6: MULTIPLE CHOICE 6.1 Choose the correct letter. 6.2 Differentiate between profit and a loss Profit: Profit is the money a business makes after taking all the income and deducting all the expenses.

When income is more than the expenses. 6.1.1 D Loss: 6.1.2 B A loss takes place when the income is less than the expenses. The business has not made a profit. 6.1.3 D Maximum mark /4 6.1.4 D 6.1.5 C 6.1.6 A Max /6 6.3 Differentiate between financial transaction and a financial record. Financial record: Are records of the businesse’s financial transactions/ evidence of the transaction e.g bank statement, receipt, salary advice,invoice, cash register roll Financial transaction: Are events at which buyers and sellers exchange assets for money. A action that takes place between a buyer and seller Maximum mark /2 6.4 Provide any two examples of financial records Receipts, ATM slip, credit note Salary advice/ payslip, invoice, bank statement Maximum mark /2 QUESTION 7:

7.1 Personal Budget Budget for Zamani Nkosi as at 31st May 2021 RECEIPTS PAYMENTS Monthly allowance 1000 00 Tuck shop 100 00 Entertainment 100 00 Travel costs 250 00 Cell phone airtime 50 00 Cell phone data 170 00 Toiletries 100 00 Haircut 185 00 TOTAL 1000 00 TOTAL 955 00 Total receipts – Total payments (Surplus) 45 00 MAXIMUM MARK /9 7.2 Does Zamani have enough money to buy his dad a gift? (2) No. The gift is R100.00 and he only has R45 available at the end of the month 7.3 TWO savings tips for Zamani: * Never spend more than the amount you have/ earn * Think about buying what you need first. Think very carefully about buying what you want * Always have cash to buy basic things you need * Learn from the past, plan for the future * Keep some money for emergencies. Pay off all your debt, stay out of debt. (2) 7.4 Difference between Saving and investing

Savings is the money you put aside when you have covered your expenses, whereas When you buy a financial product such as a policy or investment plan, or a physical object such as a valuable painting, you get some kind of financial return on that object or product when you sell it or cash it in. (2) QUESTION 8: NET WORTH STATEMENT 12 MARKS Statement of net worth of Anneline Kriel as at 31st May 2021(1) Assets R/C Totals Town house 500 000 (1) Car 115 000 (1) Furniture 87 000 (1) Savings 17 000 (1) Total Assets 719 000 (1) Liabilities House loan 200 000 (1) Car payment 64 000 (1) Furniture loan 40 000 (1) Total Liabilities 304 000 (1) NET WORTH (1) 415 000 (1) QUESTION 9: SHORT QUESTIONS- Inequality & poverty 15 MARKS 9.1.1 No, the unemployment rate is now at its worse. 32.5% is very worrying. (2) 9.1.2 Fights HIV/ Aids was handled over the years, Gender equality has been getting more exposure recently, Improve child health … Grade 5 Girls get the cervical cancer prevention jab as part of the immunization plan. (2) 9.1.3 Apartheid/ Poor Education systems, Lack of skilled workforce, Poor service delivery, State capture/ corruption/ poor governance (2) 9.1.4 Socio economic imbalances take a long time to balance out. It takes 12 years to educate a generation. Since 1994, we have had only two generations pass through with the democratic system (2)

9.1.5 Education is the key to rectifying socio- economic imbalances. Addressing Unemployment with more sustainable job creation ideas Empower people with more skills development. (2) 9.2 SHORT QUESTIONS – Unemployment in SA 9.2.1 Many losses in jobs, retrenched staff, Down time, Sick staff, More PPE and regulations at workplace. (Added costs) /Poor sales/Poor turnover /Company losses (2) 9.2.2 Banks provide employment opportunities and boosts the country’s economy. Banks promote economic growth Banks stimulate the country’s needs and wants Banks provide loan application, wills, financial and retirement planning (2) 9.2.3 Encourage entrepreneurship/ small businesses/ Work from Home may be more cost effective for many bosses and staff/ EPWP creating jobs for the economically marginalised/poor/unemployed women (1)