Economics Grade 10 P2 North West November 2019 Memo (Eng)

Downloaded from hlayiso.com PROVINCIAL ASSESSMENT GRADE 10 ECONOMICS P2 NOVEMBER 2019 MARKING GUIDELINES MARKS: 150 These marking guidelines consist of 11 pages Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P2 2 NW/November 2019 NSC – Grade 10 – Marking Guidelines SECTION A (COMPULSORY) QUESTION 1 1.1 MULTIPLE-CHOICE QUESTIONS 1.1.1 A 1.1.2 D 1.1.3 C 1.1.4 C 1.1.5 A 1.1.6 C 1.1.7 B 1.1.8 D (8 X 2) (16) 1.2 MATCHING ITEMS 1.2.1 D 1.2.2 H 1.2.3 E 1.2.4 G 1.2.5 B 1.2.6 A 1.2.7 I 1.2.8 F (8 x 1) (8) 1.3 GIVE THE TERM 1.3.1 Stagflation 1.3.2 Welfare/grants 1.3.3 Expanded public works programme 1.3.4 Employment equity 1.3.5 Migration 1.3.6 Market Equilibrium (6 x 1) (6) TOTAL SECTION A: 30 Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P2 3 NW/November 2019 NSC – Grade 10 – Marking Guidelines SECTION B Answer any TWO of the three questions from this section. QUESTION 2: MICRO ECONOMICS 2.1 Answer the following questions. 2.1.1 State any TWO characteristics of utility.  Utility differs from person to person  The utility of a product can change (2 x 1) (2) 2.1.2 How does the law of diminishing marginal utility affect the quantity consumed?  Marginal utility decreases (1 x 2) (2) 2.2 Study the graph below and answer the questions that follow. 2.2.1 What is represented by E0?  Equilibrium point (1) 2.2.2 Identify the quantity produced for P0 and S0.  Q0 (1) 2.2.3 Describe what has happened to the price and quantity in the graph.  Price increased from P0 to P1 and quantity decreased from Q0 to Q1 (2) 2.2.4 Explain the law of demand.  The law of demand states that if price of a good increases, quantity demanded decreases (2) 2.2.5 How can a shift in the demand curve be caused?  Change in consumer income  Change in the size of the population  Change in consumer preference (2 x 2) (4) 2.3 Study the cartoon below and answer the questions that follow. 2.3.1 Identify the source from which this cartoon was obtained.  Google (1) 2.3.2 Which form of tax is depicted in the cartoon above?  Indirect tax/sin tax (1) 2.3.3 Briefly explain the term budget.  Financial planning for the future (2) Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P2 4 NW/November 2019 NSC – Grade 10 – Marking Guidelines 2.3.4 Why does the government impose the form of tax named in 2.3.2?  To encourage people not to buy harmful products (2) 2.3.5 Explain the impact of tax in the economy.  It increases state revenue  An increase in state revenue can be used to improve infrastructure  Revenue can be used to contribute to social services (support the citizens of a country) (2 x 2) (4) 2.4 Why does government intervene in the market?  The government tries to combat markets inequities through regulation, taxation and subsidies  Government may also intervene in markets to promote general economic fairness  Government intervene in markets to promote other goals, such as national unity and advances  The government intervenes to receive more income (4 x 2) (8) 2.5 Discuss any FOUR criteria that a good or a service must meet to enter the world market.  There must be a wide demand  It must be transportable  The cost of transport must be small in relation to the value of the good  It must be durable  Entry must not be restricted  Any FOUR and explained (4 x 2) (8) [40] QUESTION 3: CONTEMPORARY ECONOMIC ISSUES 3.1 Answer the following questions. 3.1.1 Name TWO objectives of the Labour Relations act.  Self-government  Majorification  Consultation (2 x 1) (2) 3.1.2 What is the purpose of the Unemployment Insurance Fund?  To assist citizens in the country who is unemployed, who has lost their jobs and who are trying to find new jobs (1 x 2) (2) Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P2 5 NW/November 2019 NSC – Grade 10 – Marking Guidelines 3.2 Read the following extract and answer the questions that follow. 3.2.1 Identify the city affected by the strike in the extract above.  Nairobi (1) 3.2.2 What is the cause of the dispute in the extract above?  Contracts and job security (1) 3.2.3 Briefly explain the term, trade union.  An organization that represents the economic interest of workers (2) 3.2.4 Explain the importance of the Basic Conditions of Employment Act to workers.  To ensure workers’ rights to fair labour practices (2) 3.2.5 How can unemployment affect the economy?  Living standard decreases  More people that are unemployed costs the government more  Less people take part in economic activities  Any other relevant response (2 x 2) (4) 3.3 Study the information below and answer the questions that follow. 3.3.1 Identify in the information above, the number of people who were not actively involved in the economy.  14,6 million (1) 3.3.2 What is the main reason for the high rate of unemployment in South Africa?  Lack of education and training  Lack of employment opportunities  (1) 3.3.3 Briefly explain the term, unemployment.  A situation where people are willing and able to work but cannot find work (2) 3.3.4 Why should the government be concerned with the high unemployment rate in our country?  The more people are unemployed, the more people that will depend on government for financial assistance (2) 3.3.5 How can the government intervene to ensure participation of the marginalized groups in the economy of the country?  Education and skills training programmes for less fortunate people  The government can assist businesses that help this group of people  Any other relevant answer (2 x 2) (4) Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P2 6 NW/November 2019 NSC – Grade 10 – Marking Guidelines 3.4 Briefly discuss the different types of unemployment.  Frictional unemployment – when a person is moving between jobs  Cyclical unemployment – the result of fluctuations in the economy  Structural unemployment – when the skills of the labour force do not match the demands of the economy  Seasonal unemployment – workers only needed for part of the year (4 x 2) (8) 3.5 Evaluate the impact of mechanization on the demand for labour in a country.  Demand for physical labour decrease  Demand for more specified labour increases  Large scale production leads to a labour increase  With improvements in technology, an increase in demand for labour or for capital continues (4 x 2) (8) [40] QUESTION 4: MICRO-ECONOMICS AND CONTEMPORARY ISSUES 4.1 Answer the questions that follow. 4.1.1 Give TWO examples of public goods and services.  Goods that are not provided by private businesses  Any relevant public good/service  Refuge removal  Water and sanitation  Policing and health care (2 x 1) (2) 4.1.2 How can the government implement maximum prices?  Set prices on goods such as basic food, housing and transport (1 x 2) (2) 4.2 Read the following extract and answer the questions that follow. 4.2.1 Over how many years will this subsidy scheme take place?  Over 3 years (1) 4.2.2 In what month is our National Budget Speech presented?  February (1) 4.2.3 Explain the concept, price ceiling.  Government imposed price control, or limit, on how high a price is charged for a product or service (2) Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P2 7 NW/November 2019 NSC – Grade 10 – Marking Guidelines 4.2.4 Give a reason why the government decided to implement minimum wage?  To reduce inequality  To protect employees against exploitation from employers  To ensure a good standard of living amongst citizens in a country (2) 4.2.5 How will indirect taxes impact the economy negatively?  It will increase prices  Decrease consumption  A decrease in consumption leads to a decrease in government revenue (4) 4.3 Study the graph below and answer the questions that follow. 4.3.1 Identify the shape of the curve is shown in Fig. 1? Concave (1) 4.3.2 What is the main reason for the shift in a consumer’s indifference curve? Consumer income (1) 4.3.3 What is the difference between an indifference curve and a production possibility curve?  Indifference curve is plotted from a consumer viewpoint  PPC is plotted from the economy’s viewpoint (2) 4.3.4 What does an indifference curve analyse?  Total utility or satisfaction (2) 4.3.5 Explain the law of substitution.  The law states that the scarcer a good becomes, the greater its substitution value will be  The marginal utility of the good that becomes less plentiful rises in relation to the marginal utility of the good that becomes more plentiful (4) 4.4 Discuss FOUR factors that determine the demand for labour.  Performance of the economy – If the economy grows, more goods and services, produced by labour, are sold and more labour is employed  Productivity of labour – The relationship between real output and the quantity of input used to produce that output. Productivity is a measure of efficiency  Improvements in technology – Technology extends human ability, and it advances raises the marginal product of labour  The supply of other factors – If capital, land, proper education and entrepreneurship are not available, workers will not find employment (4 x 2) (8) Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P2 8 NW/November 2019 NSC – Grade 10 – Marking Guidelines 4.5 South Africa’s labour legislation corresponds with international laws. Explain FOUR labour rights.  The right to dignified working conditions  The right to work that is freely chosen or accepted  The right to adequate remuneration  The right to limited work day and remuneration periods of rest  The right to equal pay for work of equal value  The right to equal treatment  The right to safe and hygienic working conditions (Explanations done in own words for four of the rights) (4 x 2) (8) [40] TOTAL SECTION B: 80 SECTION C Answer any ONE of the two questions in this section in the ANSWER BOOK. QUESTION 5: MICRO ECONOMICS 40 MARKS – 40 MINUTES “While no market has clearly defined perfect competition, all real markets are classified as imperfect. That being said, a perfect market is used as a standard by which the effectiveness and efficiency of real-world markets can be measured.”  Discuss in detail the characteristics of perfect and imperfect markets. (26)  What steps can government take to prevent market failure? (10) [40] INTRODUCTION  A market is a potential place or arranged situation where buyers (households) and sellers (businesses) of products meet and exchange goods, services and money.  MAIN PART Max. 26 Perfect market:  Large number of buyers and sellersNo individual participant can affect the price through their own supply or demand of goods  Homogenous productsThe products on offer are all more or less the same  Easy entry and exitSellers can either enter and exit the market freely  Perfect informationBuyers know exactly what each seller’s price is  Sellers are price takersSellers have to accepts the prevailing market priceIf they increase their prices above the prevailing price, they will not sell anything  In reality there are few perfect marketsthere are some sectors such as mining and agriculture where many of the above conditions are met Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P2 9 NW/November 2019 NSC – Grade 10 – Marking Guidelines Imperfect market:  There are a few sellersThese producers have direct influence on the price of the product, are not held back by other competitors and able to affect price  Heterogeneous productsThe products in the market are different from each other and consumers look for specific qualities of each productThe seller supplies goods and services that have no close substitute  Imperfect informationIt is not easy and sometimes not possible for buyers to know what all the prices of a product are within the market  Other sellers are prevented from entering the marketThe seller is protected from competition through patents, control of resources and government restrictions  The seller has control over the priceThe producers of the goods and services can set the prices and the buyers are not to bargain or affect the prices in a significant way  There are many imperfect markets that we deal with everydayExamples include Telkom, Eskom, computer manufactures and cell phone companies ADDITIONAL PART What steps can government take to prevent market failure?  Implementing taxes to guide consumer spending (direct and indirect)  Implement subsidies to assist with production and consumption (to producers and consumers)  Welfare to citizens of country in the form of social services or grants  Implementing maximum and minimum prices to ensure that suppliers do not exploit consumers  Implementing laws regarding production and minimum wage to ensure employer safety and wellbeing Max. 10 CONCLUSION  While no market has clearly defined perfect competition, all real-world markets are classified as imperfect and with consumer and government spending it can assist market development  Any relevant summary regarding topic discussed Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P2 10 NW/November 2019 NSC – Grade 10 – Marking Guidelines QUESTION 6: CONTEMPORARY SOCIO ECONOMIC ISSUES 40 MARKS – 40 MINUTES “The government made a number of changes concerning the way in which natural resources should be utilized.”  Explain how the redress occurred in land, minerals and energy in South Africa. (26)  What are the challenges faced by Mining industries in South Africa? (10) [40] INTRODUCTION  Natural resources are materials or substances occurring in nature which can be exploited for economic gain. These resources are raw materials that are extracted from nature. MAIN PART  Economic redress is to put right what was wrong  Land o Government has introduced land reform o The government is also buying land from white farmers to settle marginalized farmers o The Land Restitution Programme – the purpose of this programme is to assess the validity of claims, restore land or pay financial compensation to the claimants o Land redistribution – to provide previously disadvantaged South Africans with access to agricultural land. This programme is aimed at the poor, farm workers, woman and new commercial farmers  Minerals and Energy o The minerals and petroleum resources development act aims to accelerate redress in the mining industry – government effectively nationalized all mineral rights o The department of minerals and energy writes policies to regulate the ownership, extraction, use and processing of South Africa’s minerals o The government is the sole custodian of all the minerals and petroleum resources in South Africa o People must apply for rights to mine these resources o These laws forces applicants to make opportunities available for people from disadvantaged groups o Through Eskom, the government is busy connecting thousands of households across the country to the national electricity grid o Provincial and Local governments are replacing old sanitation systems in many communities with modern sanitation facilities o Government aims to provide all communities with access to clean piped water o The mining industry is under pressure to improve treatment of its acid waste water Max. 26 Copyright reserved Please turn over

Downloaded from hlayiso.com Economics/P2 11 NW/November 2019 NSC – Grade 10 – Marking Guidelines ADDITIONAL PART Challenges faced by Mining industries in SA Economic performance – increasing and decreasing of government spending and inflation  Employment – lack of training and education increase barriers to employing the correct people  Income inequality – this creates tension between different parts of the population and influences the daily activities because of striking workers because of wage distribution  Poverty – decrease in demand occurs and therefore production decreases and that leads to a decrease in profits and sales  Stability – if a country is unstable, foreign investors remove investments in the primary sector and capital decreases Max. 10 CONCLUSION  The mining industry in South Africa is a main source of income for our economy and relevant policies need to be implemented to secure this sector to contribute to the development of our country  Any relevant summary of topic discussed [40] TOTAL SECTION C: 40 GRAND TOTAL: 150 Copyright reserved Please turn over