1034 ekonomie sg economics sg november 2005 …

1034 EKONOMIE SG ECONOMICS SG NOVEMBER 2005

TYD/TIME: 3 UUR/HOURS PUNTE/MARKS: 300

SENIOR SERTIFIKAAT-EKSAMEN SENIOR CERTIFICATE EXAMINATION

2005

Skryf op die buiteblad van jou antwoordboek, teenoor die woord “Vak” –

EKONOMIE STANDAARDGRAAD

Write on the cover of your answer book, after the word “Subject” –

ECONOMICS STANDARD GRADE

Hierdie vraestel bestaan uit 21 bladsye en 'n antwoordblad. This question paper consists of 21 pages and an answer sheet.

WCED: SENIOR CERTIFICATE EXAMINATION/N’2005 (1034) ECONOMICS SG

2

INSTRUCTIONS 1. This question paper consists of SECTION A and SECTION B.

2. SECTION A: Question 1 is COMPULSORY and must be answered on the enclosed

answer sheet.

3. Answer any FIVE questions in SECTION B. 4. Answer any TWO of the options in Question 8 if you choose this question.

5. Number your answers in accordance with the numbering system used in this paper.

6. Begin the answers to each question on a new page. 7. Answer in full sentences, unless other instructions are given. 8. Write neatly and legibly. NB: (a) Answer only the required number of questions in each section.

Extra answers will not be marked. (b) No pencil work will be marked.


3

SECTION A QUESTION 1 SECTION A is COMPULSORY and must be answered on the enclosed answer sheet. Choose the correct alternative and indicate the answer by making a (X) under the appropriate letter on the answer sheet. 1.1 The owner(s) of the factors of production is/are the

A state. B households. C businesses. D foreign sector. [3]

1.2 An employee’s purchasing power is determined by … wages.

A money B nominal C average D real [3]

1.3 Double counting occurs when

A the services of a housewife are excluded in the calculation of national income.

B unemployment insurance allowances are excluded in the calculation of national income.

C intermediate goods are included in the calculation of national income.

D inflation is taken into account in the calculation of national income. [3] 1.4 Which sector makes the greatest contribution to the national product of

South Africa?

A Mining B Industries C Agriculture D Government [3]

1.5 These goods are ready for consumption.

A Semi-finished goods B Intermediate goods C Final products D Unfinished goods [3]


4

1.6 Clothing manufactured by a Chinese company in South Africa must

be taken into account in

A gross national income. B real national income. C gross domestic product. D nominal national income. [3]

1.7 Free goods

A are available in limited quantities. B are no indication of affluence. C fetch a price. D can be controlled by humans. [3]

1.8 The quantity of a product which will be sold at a given time, and at a specific

price is referred to as

A demand. B stock. C supply. D surplus. [3]

1.9 A market is perfect when

A product differentiation takes place. B a single supplier can influence the market. C there are homogeneous products. D a variety of a specific product is available. [3]

1.10 The study of the economy as a whole is called

A Macro-economics. B Micro-economics. C Dualistic economy. D International economics. [3]

1.11 Which one of the examples refers to wants that complement each other?

A coffee and tea B gas and electricity C car and fuel D bus and train [3]


5

1.12 The market is in equilibrium

A when demand exceeds supply. B when supply exceeds demand. C when supply equals demand. D when demand is not equal to supply. [3]

1.13 According to the theory of marginal utility, marginal utility … as

consumption increases.

A decreases B remains unchanged C does not vary D increases [3]

1.14 Which of the following countries can be classified as a developing country?

A USA B China C England D South Africa [3]

1.15 The granting of tax concessions to certain industries can be seen as

A indirect subsidies. B indirect expenditure. C direct subsidies. D indirect income. [3]

1.16 A characteristic of developing economies is

A moderate standards of living. B dependency on agriculture. C low levels of unemployment. D high levels of skill. [3]

1.17 One of the basic objectives of GEAR is to

A export goods. B import goods. C achieve a high level of economic growth. D achieve a low level of economic growth. [3]


6

1.18 Which statement is TRUE of the informal sector?

A It can eliminate poverty. B It can provide opportunities for survival. C It can generate economic growth. D It can exist in its own right. [3]

1.19 Abalone poaching is part of the … sector.

A unrecorded B formal C foreign D rural [3]

1.20 The strictest form of protection that a country can apply is

A customs tax. B import quotas. C import ban. D import deposits. [3]

1.21 The demand for foreign exchange is determined, inter alia, by

A the import of cellphones from Japan. B interest earned on foreign capital. C expenses of the Australian rugby team in South Africa. D the export of ostrich meat to England. [3]

1.22 The replacement of goods previously imported, by goods provided locally

is known as

A export promotion. B import substitution. C protection. D export subsidies. [3]

1.23 The money paid by the South African Olympic team for their stay in Athens,

is known as

A invisible exports. B visible imports. C invisible imports. D visible exports. [3]


7

1.24 International trade is the result of

A labour talents that are the same everywhere. B natural resources which are distributed proportionally across the

surface of the earth. C the development of transport and communication. D the ability of all countries to produce adequate agricultural products. [3]

1.25 The following items will appear on the receipts side of the balance of payments:

A All foreign payments B Visible and invisible foreign exports C Visible and invisible foreign imports D All foreign money received [3]

1.26 The following is NOT a requirement for a good system of taxation:

A Certainty B Impartiality C Inefficiency D Elasticity [3]

1.27 Which of the following people investigates cases of wastage and

fraud in government departments?

A Director General of Finance B Auditor General C Minister of Finance D State president [3]

1.28 The following refers to the person who has to pay the tax:

A Avoidance of tax B Devolution of tax C Vesting of tax D Tax evasion [3]

1.29 The policy of the state which aims to control the money supply and

credit is … policy.

A monetary B fiscal C economic D protection [3]


8

1.30 The correct sequence of the financial procedure of the state is

A planning/execution/approval/control. B approval/planning/execution/control. C approval/execution/planning/control. D planning/approval/execution/control. [3]

1.31 The budget drawn up when new, urgent matters arise is the … budget.

A partial B additional C supplementary D complementary [3]

1.32 The prevention of HIV/AIDS by the state is a/an … function.

A social B financial C security D economic [3]

1.33 If the value of the RAND changes from R5,85 = $ 1 to R6,25 = $ 1, it

means that the value of the rand has

A increased. B decreased. C remained constant. D appreciated. [4]

TOTAL FOR SECTION A: /100/


9

SECTION B Answer any FIVE questions from this section. QUESTION 2 NATIONAL INCOME 2.1 Select the correct alternative between brackets.

Write only the answer next to the number. 2.1.1 The value of all final goods and services produced during one year by

the permanent residents of a country is known as (gross national income/ gross domestic product).

2.1 2 The key problem in Economics is (scarcity/unemployment). 2.1.3 Cars, books and furniture are examples of (durable/semi-durable) goods. 2.1.4 Inflation leads to (overestimation/underestimation) of national income

figures. 2.1.5 (Investment/disinvestment) leads to an increase in the productive capacity

of a country. (5x2) [10] 2.2 Study the graph and then answer the questions.

Share in income per population group Share in income: 1970 Share in income: 2001

(Extract from SAKE Rapport – adapted) 2.2.1 Give the name of the population group whose income increased the

most during the period 1970 – 2001 and the percentage of the increase. (5)

2.2.2 Give TWO possible reasons that could have contributed to this. 2x2 (4)


10

2.2.3 Give ONE possible reason which could have contributed to the

huge decrease in the income of whites as depicted on the graph. (2) 2.2.4 What effect does the increase in income have on the spending of the

black population? (3) [14] 2.4 Explain which services are NOT included in the calculation of National income figures and state why not. [16] /40/


11

QUESTION 3 PRICE FORMATION 3.1 Supply the missing word(s) to make the following statements TRUE.

Write only the correct answer next to the number. 3.1.1 The short term equilibrium price is also known as the (market/normal) price. 3.1.2 The need for LEVI jeans is a (luxury/essential) need. 3.1.3 (Free/Economic) goods have utility as well as exchange value. 3.1.4 (Utility/Value) is the ability of an article to satisfy a need. 3.1.5 The market situation where there is only a single supplier of a product

is an (perfect/imperfect) market. (5x2) [10] 3.2 Study the graph and then answer the questions.

3.2.1 Describe what happens at point E. (4) 3.2.2 Give TWO causes for the shift of the demand curve from DD to D1D1. (4) 3.2.3 What was the original equilibrium price? (3) 3.2.4 What is the new equilibrium quantity? (3) [14] 3.3 Explain FOUR factors that can bring about a change in supply. (4x4) [16]

/40/


12

QUESTION 4 ECONOMIC DEVELOPMENT 4.1 Each of the statements (4.1.1 – 4.1.5) is a definition of one concept in the

following list. In each case write the correct concept next to the number. Developed, DBSA, urbanisation, deregulation, NEPAD,

underemployment, developing

4.1.1 This organization is responsible for promoting economic development in Southern Africa.

4.1.2 The abolition of legal restrictions on the activities of the informal sector. 4.1.3 These countries have low levels of per capita income. 4.1.4 The process through which the urban population increases in relation

to the total population 4.1.5 The underutilization of the full capacity of a worker so that the person, for

example, works for only a few hours per week. (5x2) [10] 4.2 Study the graphical presentation and then answer the questions.

([email protected])


13

4.2.1 Which province has the highest economic growth rate and what is the rate? (6) 4.2.2 Which province has the third highest unemployment rate? (3) 4.2.3 What is the percentage of poverty of the province in which we find ourselves? (3) 4.2.4 Give ONE social problem that you would find in the Eastern Cape. (2) [14] 4.3 Discuss the most important negative consequences of urbanization in

South Africa. [16]

/40/


14

QUESTION 5 INTERNATONAL ECONOMICS 5.1 Match the explanation in COLUMN A with a concept in COLUMN B.

Only write the correct letter next to the number.

COLUMN A COLUMN B 5.1.1 The balance between visible imports and visible exports A Protection policy

of a country over a given period 5.1.2 A measure applied by authorities to increase B Balance of payments

the value of a country’s currency in terms of gold 5.1.3 The price at which foreign exchange is bought and sold C Trade balance 5.1.4 A continuous record of all the transactions between the D Appreciation

inhabitants of SA and the rest of the world over a certain period

E Exchange rate 5.1.5 Measures taken to protect local industries against

overseas competition. F Revaluation

G Trade policy (5x2) [10]

5.2 Read the extract and then answer the questions.

Economic report– Sakeburger – 13 August 2003 (freely translated) For a country such as South Africa with a very “open” economy it is clear that the exchange value of the rand has a particular important influence on the economic growth rate, the creation of jobs and the inflation rate. The strong consolidation of the external value of the rand that has been experienced over the past year can create a number of problems for various sectors of the economy. This will lead to profits being affected adversely and the danger exists that workers will have to be retrenched. Fact is that a developing country such as South Africa which has to deal with serious unemployment problems definitely cannot afford an overvalued currency. The chances are good that the external value of the rand will be subjected to downward pressures within the next six to twelve months because of


15

• further decreases in local interest rates which would make it less

attractive for foreigners to invest in South Africa. • considerable deficits in the current account of the balance of payments

as a result of the detrimental effect on foreign earnings and higher imports on account of the favourable exchange rate.

5.2.1 What do you understand by, “… South Africa with a very

“open” economy …”? (2) 5.2.2 Explain how the strengthening of the rand can contribute to the fact that

“workers will have to be retrenched ”. (4) 5.2.3 Name any THREE items that you will find in the current account of the

balance of payments. (6) 5.2.4 If a country wants to increase its exports, it will allow its currency to

(appreciate/depreciate). (Choose the correct answer.) (2) [14]

5.3 Read the extract and then answer the question.

Clothing manufacturers in South Africa ask the government for protection against cheap Chinese imports!

Explain the most important form of protection that the South African government can use in response to the above request. [16]

/40/


16

QUESTION 6 STATE 6.1 Study the following ADVANTAGES of taxes in each case and write

down if it is an advantage of DIRECT or INDIRECT tax . Write only DIRECT or INDIRECT next to the number.

6.1.1 It can easily be increased or decreased. 6.1.2 It is difficult to evade. 6.1.3 Foreign tourists are also taxed. 6.1.4 The tax income can be calculated in advance. 6.1.5 Taxpayers do not feel the burden so badly. (5x2) [10] 6.2 Study the sketch and then answer the questions.

(X-kit Economics HG and SG Grade 12) 6.2.1 Which institution is represented by the character in the picture? (3) 6.2.2 What type of tax is being illustrated? (2) 6.2.3 Which policy is implemented by the character in the picture? (3) 6.2.4 What is the current VAT rate? (2) 6.2.5 Briefly explain what the influence of an increase in the VAT rate will

be on the economy of South Africa. (4) [14] 6.3 Explain why the state sometimes operates as an entrepreneur. [16] /40/


17

QUESTION 7 NATIONAL INCOME AND STATE NATIONAL INCOME 7.1 Choose the correct answer from the alternatives in brackets.

Write only the answer next to the appropriate number. 7.1.1 The (factor market/product market) is the market for goods and services. 7.1.2 Real national income is also known as the national income at (current/

constant) prices. 7.1.3 A useful measure for comparing welfare levels in countries is the

(income per capita/real income per capita). 7.1.4 (Tax/Subsidy) is a compulsory contribution to the state which is applied

to the benefit of all. 7.1.5 Property tax is an example of (direct/indirect) taxation. (5x2) [10] 7.2 Study the diagram of the circular flow and then answer the questions. A

D

Goods and services B C

E

7.2.1 Which letter in the diagram represents consumer spending? (3) 7.2.2 Which letter in the diagram represents wages and salaries? (3) [6] 7.3 List FOUR sources of state revenue. [8] 7.4 Explain how South Africa’s economy could grow faster in 2003 and

2004 than the economies of other countries. [16]

/40/


18

QUESTION 8 CHOICE MODULES Answer only TWO of the alternatives if you choose this question. 8.1 LABOUR RELATIONS 8.1.1 In each case choose the word(s) that complete(s) each statement correctly.

(a) (Labour force/labour) refers to all workers who want to work. (b) If the supply of labour exceeds the demand, wages will be

(low/high). (c) The (Labour court/Supreme court) may consider labour

disputes, but may not deal with criminal cases. 3x2 (6) 8.1.2 Name THREE factors that determine the demand for labour. 3x2 (6) 8.1.3 Explain FOUR functions of trade unions. 4x2 (8) [20]


19

8.2 PRODUCTIVITY AND UNEMPLOYMENT 8.2.1 Match the concept in COLUMN B with the explanation in COLUMN A.

Write only the correct letter next to the number. COLUMN A COLUMN B

(a) The financial assistance granted to those A PAYE who become unemployed. B Structural unemployment

(b) People are unemployed in the Eastern Cape while there are suitable C UIF posts in the Western Cape.

D Frictional unemployment (c) This type of unemployment occurs when

production techniques change. E Cyclical unemployment (3x2) (6)

8.2.2 Study the cartoon and then answer the question.

(Dynamic Economic and Management Science Gr 9) Which TWO negative consequences of strikes on the economy of a

country are depicted above? (2x3) (6) 8.2.3 Explain FOUR methods to combat unemployment. (4x2) (8) [20]


20

8.3 INFLATION 8.3.1 Choose the appropriate term from the list for the explanations in (a), (b) and (c).

Price control, inflation, fiscal measures, deflation, monetary measures

(a) Increase of the bank rate by the Reserve Bank (b) The measure implemented by government to ensure that prices do not

increase at will (c) An increase in the general price level (3x2) (6) 8.3.2 Read the extract and then answer the question.

Higher fuel prices will hit transport and agriculture. Explain the type of inflation which will develop from this. (6) 8.3.3 Briefly explain TWO consequences of inflation. (2x4) (8) [20]


21

8.4 STRATEGIC RESOURCES IN SOUTH -AFRICA 8.4.1 Choose a concept in COLUMN B that best matches the specific statement in COLUMN A.

Write only the letter next to the number.

COLUMN A COLUMN B (a) Known as ARMSCOR before 1992 A ESKOM (b) Uses uranium to generate electricity B DENEL (c) Manufactures petroleum and gas products outside C MOSSGAS Mossel Bay D KOEBERG E ISCOR

(3x2) (6) 8.4.2 Give the names of THREE energy sources used in South Africa. (3x2) (6) 8.4.3 Give in full sentences FOUR reasons why water conservation and

water supply are of such importance in South Africa. (8) [20] /40/ (5x40) /200/

TOTAL FOR SECTION A: /100/ TOTAL FOR SECTION B: /200/

GRAND TOTAL: /300/

1034 ekonomie sg economics sg november 2005 …

Documents