Economic Management Sciences Grade 7 November 2021 QP

Bedfordview Primary School TERM 4 TEST Name: Grade: 7_____ Subject: ECONOMIC MANAGEMENT SCIENCES Examiner: Mrs T. Naidoo Date: 22 November 2021 Moderator: Mrs P. Naidoo Maximum mark: 100 Time Allocation: 90 minutes INSTRUCTIONS 1. An extra 10 minutes will be provided for reading. 2. Write neatly and legibly. 3. Answer in the spaces provided on the answer sheet provided. 4. This question paper consists of 6 pages. The answer sheet consists of 4 pages 5. You may use a calculator for the budget and net worth questions. Question Analysis Question 1 2 3 4 5 6 7 8 TOTAL THE ECONOMY/ FINANCIAL LITERACY ENTREPRENEURSHIP ENTREPRENEURSHIP/FINANCIAL LITERACY Maximum 10 10 5 10 15 13 17 20 100 Mark ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ QUESTION CONTENT COVERED MARK AND DURATION 1. MATCHING THE ECONOMY 10 MARKS 10 MINUTES 2. MULTIPLE CHOICE FINANCIAL LITERACY 10 MARKS 10 MINUTES 3. TRUE OR FALSE ENTREPRENEURSHIP 5 MARKS 5 MINUTES 4. WORD BANK FINANCIAL LITERACY 10 MARKS 10 MINUTES 5. SHORT QUESTIONS THE ECONOMY 15 MARKS 15 MINUTES 6. BUDGET FINANCIAL LITERACY 13 MARKS 10 MINUTES 7. NETWORTH FINANCIAL LITERACY 17 MARKS 20 MINUTES 8. CASE STUDY ENTREPRENEURSHIP 20 MARKS 20 MINUTES 1 | BEDFORDVIEW PRIMARY SCHOOL SUBJECT PAGE TOTAL:

QUESTION 1: MATCHING 10 MARKS Match the descriptions in column A with the terms in Column B. Write the letter from column B next to the question number. Column A Column B 1.1 Any action (buying or selling) where money A. Production is involved 1.2 Goods and services that are produced for B. Input sale 1.3 The rate at which the price of goods and C. Resources services rises 1.4 Work that is done directly with goods and D. Mass production services being produced 1.5 How quickly inputs can be turned into E. Transaction outputs 1.6 Resources that can be replaced F. Inflation 1.7 The manufacture of goods and services that G. Productivity can be used for sale or bartering 1.8 Land, raw materials, semi processed H. Outputs materials 1.9 The resources and labour that a business I. Renewable needs to produce its goods 1.10 The effect of technology on production J. Labour QUESTION 2: MULTIPLE CHOICE 10 MARKS Four options are provided as possible answers to the following questions. Choose the correct answer and write the letter next to the question number. e.g., 2.11 D 2.1 If a business’ expenses are more than its income. A Profit B Loss C Surplus D Savings 2.2 Money received by leasing out a part of the business building A Current income B Rent income C Sales D Profit 2.3 An example of a retail business. A Café B Plumber C Doctor 2 | BEDFORDVIEW PRIMARY SCHOOL SUBJECT PAGE TOTAL:

D Teacher 2.4 The value of the business is known as… A Drawings B Assets C Capital D Owner’s Equity 2.5 Which one is not a current asset? A Cash float B Trading stock C Creditors D Petty cash 2.6 An example of a fixed asset. A Bank B Buildings C Debtors D Investment policy 2.7 A … is dependent on the number of hours worked. A Bonuses B Commission C Salary D Wage 2.8 Describes the financial situation of a person or business, at a particular time. A Statement of net worth B Income and expenditure statement C Balance Sheet D A & C are correct 2.9 The owner’s salary that is paid by the business is referred as …. A Fixed deposit B Drawings C Salary D Capital 2.10 Which one of the following is not an operating expense for a business? A Packaging B Vehicles C Interest paid on a bond D Telephone 3 | BEDFORDVIEW PRIMARY SCHOOL SUBJECT PAGE TOTAL:

QUESTION 3: TRUE OR FALSE 5 MARKS Identify whether the following statements are true or false. Write only the word ‘True’ or ‘False’ next to the question number. 3.1 A SWOT analysis helps an entrepreneur decide whether their new business idea will work. 3.2 Advertising is a way to sell products, but marketing is about identifying the customer and making sure that the customer’s needs are met. 3.3 Fixed costs are directly linked to the product e.g., each skirt made needs one zip. 3.4 Mass Media is only done by large businesses as it is expensive. 3.5 Cost price is the difference between what was paid to make the product and the amount the article is sold for. QUESTION 4: WORD BANK 10 MARKS Choose the correct answer from the word bank to complete the missing words from the passage. Write your answer next to the question number on your answer sheet. assets bank budget capital expenses financial records income personal loss liability transaction A ____ (4.1) _____is a document that enables a person to save money from their ____ (4.2) ____ income which could be salaries or wages. To start a business some of these savings can be used as______ (4.3) _____ to purchase _____ (4.4) _____ and pay ____ (4.5) ______. The first ____ (4.6) _____ will be to open a ____ (4.7) _____ account. Receipts and a cash register roll provide ______ (4.8) _____ for the business. If the owner must take a loan from a bank this will be classified as a ___ (4.9) _____. At the end of a specific period, usually a year, the owner will draw up a cash budget to calculate whether the business has made a profit or ____4.10 ____. QUESTION 5: SHORT QUESTIONS 15 MARKS 5.1 Explain two ways in which you think we can use our resources in a more sustainable way. (2) 5.2 Explain what you understand by ‘economic growth’ (2) 5.3 State two ways in which Governments can help with economic growth (2) 5.4 Discuss how technology improves productivity and economic growth (4) 5.5 Explain how banks contribute to economic growth (2) 5.6 List any three main services offered by banks? (3) 4 | BEDFORDVIEW PRIMARY SCHOOL SUBJECT PAGE TOTAL:

QUESTION 6: BUDGET 13 MARKS Use the following information to prepare a cash budget for Naidoo Traders on 30 September 2021. Naidoo Traders sell shoes and repair shoes. Sales of shoes for June is R85 750 Income on Shoe repairs for June is R4 800 Naidoo Traders had the following expenses for the month of June this year  Staff salaries R35 000  Bond repayment R8500  Leather purchases R 15 400  Fabric purchases R2500  Water and electricity R3 100  Telephone R860  Shoelaces R975  Men’s Insoles R2300  Shoe glue R640 QUESTION 7: NET WORTH 17 MARKS Read the following scenario to work out a personal statement of net worth. Pieter Verster is worried that he is 45 years old and only has R12 500 in his bank account. Pieter worked for 20 years as an attorney and believes he is worth nothing in financial terms. His friend Manny told him to make a list of all his possessions and what he owes to other people and businesses. Manny has asked you to help him prepare a statement of net worth for Pieter on 31 October 2021. The following is a list of the things that Pieter has and owes. He owns a town house R 850 000 He owns a car R 340 000 He owns a motor bike R 65 000 He owns furniture R 120 000 He owns electrical appliances R 54 000 He owes money on a bond R 280 000 Money in the bank R12 500 Money on a fixed deposit R 40 000 His brother borrowed money from him a week ago R 12 000 He has a clothing account R 8 600 5 | BEDFORDVIEW PRIMARY SCHOOL SUBJECT PAGE TOTAL:

QUESTION 8: CASE STUDY 20 MARKS Read through the case study and answer the questions that follow. The Mahlangu family have a portable television and would like to buy a flat screen television for R12 000. Joseph Mahlangu is the breadwinner and receives a salary of R15 000 per month. Joseph is a salesman for a car dealership in Randburg and has been working for 10 years in the motor sales industry. His wife does not work but loves cooking and baking. A friend suggested that they prepare a budget to save money for the television. 8.1 What do we call Joseph Mahlangu’s salary as an accounting concept? 1 8.2 Explain what is meant by the “breadwinner” of the family? 2 8.3 Would a budget help the family to buy a television? Motivate your answer. 2 8.4 Is the flat screen television a want or a need? Explain your answer. 2 8.5 According to the case study there are three possible ways the Mahlangu family can earn extra income per month? What are they? 3 8.6 What saving advice or tip would you give Joseph that you have learnt about this year 2 8.7 State the difference between Savings and investments? 2 8.8 Do you think the Mahlangu’s are living below the poverty line? Provide a reason for your answer 2 8.9 A neighbour has started a stokvel and has asked Joseph to join. What is a stokvel and would this be a good way to save for the television? 2 8.10 In March this year, Joseph contracted the Covid19 virus from a colleague at work and had to self-isolate for 14 days. What effect has the pandemic had on the economy since December 2019. 2 6 | BEDFORDVIEW PRIMARY SCHOOL SUBJECT PAGE TOTAL: