Economic Management Sciences Grade 7 June 2021 QP

BEDFORDVIEW PRIMARY SCHOOL JUNE EXAMINATION - 2017 ECONOMIC MANAGMENT SCIENCES GRADE: 7 DURATION: 90 minutes EDUACTOR: MRS T. NAIDOO MODERATOR: MRS P. NAIDOO TOTAL MARK: 75 DATE: 9 June 2017 NAME OF PUPIL ___________________________________GRADE 7____ Instructions: 1. Please ensure that you write your name on the Answer sheet. 2. Write neatly and legibly. 3. Answer all questions. 4. Work carefully and watch your time usage. ALL THE BEST! --------------- 75 % 1 2 3 4 5 6 7 TEACHER COMMENT: PARENT SIGNATURE: 1

Section A: Short questions Question 1 Complete the following statements by supplying the correct missing word in each of the statements: word bank 1.1. If people planned their expenditure more carefully by drawing up a _______________________________, they might find that they could afford to save more. 1.2. _____________________________________ are documents sent by the bank monthly to show the record that the bank has of the money that they have received and paid out of the account. 1.3. A business makes a ______________________________ when the income is more than the expenses. 1.4. Informal businesses do not pay _____________________________, which means that the government does not get any money from them. 1.5. The costs to run a business are known as ___________________________ costs. 1.6. If a country has produced more goods and services than it did in the previous year we call this ___________________________________________. 1.7. _____________________________________ is the process of taking raw materials and transforming them into useful goods and services. 1.8. A ________________________________ buys and uses goods and services. 1.9. The problem of unlimited wants and limited resources is called the _____________________________________________ . 1.10. The total value of all the goods and services that the country produces over a specific period is called the 2

_______________________________________________. (10) Question 2: State if the following statements are true or false: 2.1 A promissory note is a piece of paper on which one person writes a promise to pay the other person a certain sum of money at some time in the future. 2.2 When people barter, they exchange goods for money 2.3 Public goods are the things that the government provides which everyone in the community uses, for example a park or a library 2.4 A business that buys goods in large quantities from manufacturers and then sells the goods to other shops or customers in smaller quantities is known as a retailer. 2.5 The net worth of a business is the amount of money that the owner invests in the business at the start-up. 2.6 Net worth of a person = assets – liabilities 2.7 Ill health and people staying away from work decreases productivity 2.8 A deficit is when your cash receipts are greater than your payments 3

2.9 The people you plan to sell your product or service to is known as your target market. 2.10 The four factors of production are land, labour, capital and entrepreneurship. (10) Question 3: Choose the most correct answer for each of the questions below: Highlight / Circle the correct answer. 3.1 Rent paid by a business is classified as: A an asset account B a balance sheet account C an expense account D an income account 3.2 Bank balances, investments, trading stock and policies are examples of A Fixed / non- current assets B long-term liabilities C current liabilities D current assets 3.3 Is not an example of a financial record: A payslip B ATM slip C change D credit note 4

3.4 A portion of your monthly earnings are invested and when you retire, the fund pays you a monthly income. A shares B pension C rental D savings 3.5 The minimum income needed to meet a person’s basic needs is A the poverty cycle B the bread price line C the poverty line D the social acceptance scale (5) Section B: The economy Question 4 : 4.1 Complete the following table, by deciding if these items possess the four characteristics of money. Indicate yes or no or yes, but difficult Is the item Is the item Is the item Can the item relatively durable? portable? be divided into scarce? smaller units? Gold Coins and notes (4) 4.2 Banks serve as vital institutions in our day to day lives. List any SIX services offered by banks. (6) ___________________________________________________________________ ___________________________________________________________________ 5

___________________________________________________________________ Section C: Financial literacy Question 5: Choose the most suitable match. Write down only the letter next to the corresponding number. 1. Assets A When money is put aside for the future 2. Capital B The total debts that the business has to pay back 3. Fixed deposit C Planning how much money you will have in the future 4. Bank D The money or assets invested in the business by the owner 5. Budgets E Money that is earned by the business for providing a service 6. Savings F A savings account where you can withdraw money whenever you need to 7. Liability G The possessions that are valuable to the business 8. Call account H Money earned and paid to the employees of the business 9. Loan: FNB bank I The cost of borrowing money 10. Current income J An investment made in order to earn a fixed interest rate 11. Salaries and wages K An account opened by the business to deposit and withdraw money 12. Interest on loan L Money that the business has borrowed from a financial institution 1. _______ 2. _______ 3. _______ 4. _______ 5. _______ 6. _______ 7. _______ 8. _______ 9. _______ 10. _______ 11. _______ 12. _______ 6

(12) Question 6: Home Fixers has the following information in their financial records. Use the information to answer the questions that follow: Advertising costs 2 000 Bank 17 000 Start- up Capital 56 000 Current income 50 000 Water and electricity 2 000 Equipment 40 000 Loan 130 000 Material costs 20 500 Rent income 3 500 Telephone 1 500 Vehicles 155 000 Wages 00 6.1 Name the three assets that home Fixers have. (3) 6.2 Calculate the total value of these assets (2) 6.3 Does this business have any liabilities? If so, how much does the business owe? (2) 6.4 Name two income accounts (2) 7

6.5 Calculate the total income that the business has earned (2) 6.6 Make a list of expenses and calculate the total expenses (2) 6.7 Did home Fixers make a profit or a loss? Provide a reason and show the calculation to support your answer? (2) 6.8 How much is the business worth? Show the calculation to support your answer. (3) Section D: Entrepreneurship Question 7: Choose the most suitable match. Write down only the letter in the space provided. 8

7.1 1. An advantage of an informal A A business that makes a profit business from buying and selling of goods 2. An informal business B Because they do not pay taxes, the government does not get any money from them to provide goods and services in the economy 3. A micro-enterprise C A small informal business 4. A SSME D A business that employs hundreds of people and sells goods and services on a large scale 5. A large business E A business that is not taxed or monitored in any way by any form of government 6. A formal business F They offer an opportunity for unskilled, uneducated, disabled and unemployed people to earn an income when there are no job opportunities 7. A trading business G Very little capital is invested in the business and generally the business does not own the land or pay rent for it 8. A manufacturing business H A term given to small, medium and micro-businesses 9. A disadvantage of an informal I A business that makes a profit by business selling goods that it has made 10. A characteristic of an informal J A business that has registered for business tax and keeps accurate accounting records 1. _______ 2. _______ 3. _______ 4. _______ 5. _______ 6. _______ 7. _______ 8. _______ 9. _______ 10. _______ (10) 9