NSC exam, Economics, November 2013
Assignment Type: Revision Paper
Total Marks: Unmarked
INSTRUCTIONS: - SECTION A: Answer all PARTS ---- SECTION B: Answer any THREE of the Five PARTS ------ SECTION C: Answer any TWO of the Four PARTS
SECTION A: - Answer all parts
PART I: MULTIPLE CHOICES - Choose the answers to the questions given below
Marks: 24
Question 1:

A technique used in forecasting to predict the unknown by using facts or information that is known is called …

Your Answer:
Question 2:

Goods which are regarded as socially harmful are known as … goods.

Your Answer:
Question 3:

If national income increases by R200 million as a result of an investment of R50 million, what is the value of the multiplier?

Your Answer:
Question 4:

When a price ceiling is imposed, that price must be … the market price.

Your Answer:
Question 5:

The demand curve of a monopolist is the same as the … curve.

Your Answer:
Question 6:

When the product mix does not reflect the consumers' taste it is known as … inefficiency.

Your Answer:
Question 7:

The scorecard used to measure progress with Black Economic Empowerment (BEE) is published by the …

Your Answer:
Question 8:

An argument in favour of the protection of local industries is ...

Your Answer:
Question 9:

The most important function of the World Trade Organisation (WTO) is to …

Your Answer:
Question 10:

Stagflation refers to …

Your Answer:
Question 11:

Tourism …

Your Answer:
Question 12:

Mineral resources are …

Your Answer:
PART II: - Give ONE term for each of the following descriptions
Marks: 10
Question 1:

The exchange rate system where exchange rates are determined by the market forces of supply and demand

Your Answer:
Question 2:

The mechanism that brings together buyers and sellers of goods and services

Your Answer:
Question 3:

The Act that prohibits unfair discrimination in the workplace

Your Answer:
Question 4:

Increased temperatures as a result of the depletion of the ozone layer

Your Answer:
Question 5:

This type of tourism involves visiting undisturbed natural areas

Your Answer:
PART III: MATCHING ITEMS - Choose the description that matches the given item
Marks: 16
Question 1:

Factors of production

Your Answer:
Question 2:

Sanctions

Your Answer:
Question 3:

Monopolistic competition

Your Answer:
Question 4:

Globalisation

Your Answer:
Question 5:

Negative externality

Your Answer:
Question 6:

Recycling

Your Answer:
Question 7:

Exogenous approach

Your Answer:
Question 8:

Patent

Your Answer:
SECTION B: - Answer any THREE of the five parts in this section
PART I: MACROECONOMICS - Choose the right word from those given in brackets.
Marks: 8
Question 1:

Capital is traded in the (financial/goods) market.

Your Answer:
Question 2:

The ratio between a country's export prices and its import prices is called the (terms of trade/balance of trade).

Your Answer:
Question 3:

A deliberate measure to lower the value of a currency is known as (depreciation/devaluation).

Your Answer:
Question 4:

Countries with fundamental balance of payments problems are usually assisted by the (World Bank/International Monetary Fund).

Your Answer:
NOTE: Answer the following question
Marks: 6
Question 1:

List any THREE factors that influence the supply of foreign exchange.

Your Answer:
SCENARIO: - Study the cartoon below and answer the questions that follow.
Marks: 10
Attached Section Resource:
8eed1584-d02c-46c0-aab6-b625e6e01508.PNG
Question 1:

Who is the Minister of Finance depicted in the cartoon?

Your Answer:
Question 2:

Explain the message conveyed by the cartoon.

Your Answer:
Question 3:

The largest portion of government revenue is spent on education. In your opinion, has this benefitted the economy? Give possible reasons.

Your Answer:
SCENARIO: - Study the table below and answer the questions that follow.
Marks: 10
Attached Section Resource:
1da9e877-8e81-4f31-9b6d-eda6b56adfa7.PNG
Question 1:

Define the concept balance of payments.

Your Answer:
Question 2:

Calculate the balance on the current account for the second quarter of 2012.

Your Answer:
Question 3:

Give a reason for the change in the trade balance between 2011 and 2012.

Your Answer:
Question 4:

In your opinion, what can be done to ensure a surplus on the current account of the balance of payments?

Your Answer:
NOTE: - Answer the following questions
Marks: 16
Question 1:

Briefly explain how the South African government would apply fiscal and monetary policies (demand-and-supply side) to smooth business cycles.

Your Answer:
Question 2:

Explain accountability and privatisation as problems of public sector provisioning.

Your Answer:
PART II: MICROECONOMICS
NOTE: - Choose the correct word from those given in brackets.
Marks: 8
Question 1:

In a monopoly market the marginal cost curve will always intersect the average (cost/revenue) curve at its minimum point.

Your Answer:
Question 2:

Merit goods, for example education, is often (under/over)-supplied by the market.

Your Answer:
Question 3:

Internal costs are also known as (social/private) costs.

Your Answer:
Question 4:

A monopolist will maximise profit where marginal revenue equals (average/marginal) cost.

Your Answer:
NOTE: - Answer the following question
Marks: 6
Question 1:

List THREE characteristics of an oligopoly.

Your Answer:
SCENARIO: - Study the pictures below and answer the questions that follow.
Marks: 10
Attached Section Resource:
643b5062-d512-4794-bf6b-0b6106acb7b0.PNG
Question 1:

Define the concept market failure.

Your Answer:
Question 2:

Identify the causes of market failure depicted in PICTURES A and B.

Your Answer:
Question 3:

Explain how production levels and the prices of goods and services will be affected if polluters are held responsible for Sipho's medical costs.

Your Answer:
SCENARIO: - Study the table below and answer the questions that follow.
Marks: 10
Attached Section Resource:
54dabb5b-6650-48ed-8f88-b5ab77bc96d4.PNG
Question 1:

Which market structure do the above business enterprises represent?

Your Answer:
Question 2:

What is the nature of the products offered in this market structure?

Your Answer:
Question 3:

Identify the kind of profit that these business enterprises will make in the long term.

Your Answer:
Question 4:

Explain how the business enterprises above can use non-price competition to increase their market share.

Your Answer:
NOTE: - Answer the following questions
Marks: 16
Question 1:

Discuss the role of the key institutions that regulate competition in South Africa.

Your Answer:
Question 2:

Explain how natural and artificial monopolies act as barriers to other producers wanting to enter the market.

Your Answer:
PART III: ECONOMIC PURSUITS
NOTE: - Choose the correct word(s) from those given in brackets.
Marks: 8
Question 1:

Economic development implies an increase in the capacity of (production/human capital).

Your Answer:
Question 2:

Industrial development aims at increasing (exports/imports).

Your Answer:
Question 3:

Tariffs that are calculated per unit or mass are known as (ad valorem/specific) tariffs.

Your Answer:
Question 4:

Direct subsidies used in export promotion are (tax rebates/ cash payments) to exporters.

Your Answer:
NOTE: - Answer the following question
Marks: 6
Question 1:

Name THREE growth sectors in South Africa that have the potential to create employment.

Your Answer:
SCENARIO: - Study the graph below and answer the questions that follow.
Marks: 10
Attached Section Resource:
65ca219d-4678-4649-8410-90ae950ad163.PNG
Question 1:

What type of indicator is shown by the bar graph above?

Your Answer:
Question 2:

Explain the term poverty line.

Your Answer:
Question 3:

What percentage (%) of the world population lives above the poverty line of $2 a day?

Your Answer:
Question 4:

Name the economic concept which measures the extent of poverty in various countries.

Your Answer:
Question 5:

Why do you think the poor find it difficult to escape poverty?

Your Answer:
SCENARIO: - Study the extract below and answer the questions that follow.
Marks: 10
Attached Section Resource:
fbb06b38-338e-4b50-968e-975b2dec3e03.PNG
Question 1:

What portfolio is Trevor Manuel currently responsible for?

Your Answer:
Question 2:

Which economic indicator from the extract can be used to compare standards of living?

Your Answer:
Question 3:

How can the National Development Plan assist the promotion of small and medium enterprises (SMEs)?

Your Answer:
Question 4:

How can the economy achieve an average growth rate of 5,4% per year?

Your Answer:
NOTE: - Answer the following questions
Marks: 16
Question 1:

Explain Black Economic Empowerment (BEE) as a development initiative.

Your Answer:
Question 2:

Briefly discuss the North-South divide.

Your Answer:
PART IV: CONTEMPORARY ECONOMIC ISSUES
NOTE: - Choose the correct word from those given in brackets.
Marks: 8
Question 1:

The inflation target for South Africa is currently (3–6%/2–5%).

Your Answer:
Question 2:

The index that refers to the cost of production is called the (consumer/producer) price index.

Your Answer:
Question 3:

Old-age pensioners and people with a fixed income will (benefit/suffer) from general price increases.

Your Answer:
Question 4:

Taxes imposed on the output of goods that generate external environmental costs are called (green/income) tax.

Your Answer:
NOTE: - Answer the following question
Marks: 6
Question 1:

List any THREE benefits of tourism to households.

Your Answer:
SCENARIO: - Study the extract below and answer the questions that follow.
Marks: 10
Attached Section Resource:
ceba5f7f-0634-4248-aa3c-c826102ab631.PNG
Question 1:

Define the concept pollution.

Your Answer:
Question 2:

In your opinion, why is Gold Reef City such a popular tourist destination?

Your Answer:
Question 3:

How can the threat of rising acid water be solved?

Your Answer:
SCENARIO: - Study the cartoon below and answer the questions that follow.
Marks: 10
Attached Section Resource:
8e5ab339-1300-4fb7-8053-eef37ebce5b3.PNG
Question 1:

What do you understand by the concept environmental sustainability?

Your Answer:
Question 2:

Describe the messages conveyed by the cartoon.

Your Answer:
Question 3:

In your opinion, what impact will climate change have on the environment?

Your Answer:
NOTE: - Answer the following questions.
Marks: 16
Question 1:

Explain the effects of tourism on employment and poverty.

Your Answer:
Question 2:

Explain how the granting of property rights by the public sector can achieve environmental sustainability.

Your Answer:
PART V: MACRO- AND MICROECONOMICS
NOTE: - Choose the correct word from those given in brackets.
Marks: 8
Question 1:

The indicator that gives direction where the economy is heading is called a (leading/lagging) indicator.

Your Answer:
Question 2:

Functions and ownership transferred from the private to the public sector is known as (nationalisation/privatisation).

Your Answer:
Question 3:

The rent that an entrepreneur pays is regarded as an (explicit/implicit) cost.

Your Answer:
Question 4:

Pollution is a form of a (private/social) cost.

Your Answer:
NOTE: - Answer the following question
Marks: 6
Question 1:

List the THREE methods used to calculate the gross domestic product (GDP).

Your Answer:
SCENARIO: - Study the diagram below and answer the questions that follow.
Marks: 10
Attached Section Resource:
cb77b576-8647-4f83-b854-65c188e262bf.PNG
Question 1:

Which type of economy is represented by the diagram?

Your Answer:
Question 2:

Label A and B in the diagram.

Your Answer:
Question 3:

Identify ONE example of an injection in the diagram.

Your Answer:
Question 4:

Explain the interaction between the business sector and the state.

Your Answer:
SCENARIO: - Study the table below and answer the questions that follow.
Marks: 10
Attached Section Resource:
0990b62a-aa58-45df-a9b8-f888f6101c2e.PNG
Question 1:

What is the rationale behind the cost-benefit analysis?

Your Answer:
Question 2:

Use the information in the table and draw a fully labelled bar graph, indicating cost and benefits for each alternative:
Vertical axis: Costs/Benefits R million.


                   Scale 1 cm = 0,5 R million


Horizontal axis: Schools

Your answer: Resource(s)
Question 3:

Which school should receive the electricity?

Your Answer:
NOTE: - Answer the following questions
Marks: 16
Question 1:

Discuss labour resources and technology as reasons for international trade.

Your Answer:
Question 2:

Distinguish between price leadership and cartels as forms of collusion.

Your Answer:
SECTION C: - Answer any TWO of the four parts in this section
Attached Section Resource:
ee2446d8-72ea-4a79-99ed-f4cf18e56784.PNG
PART I: MACROECONOMICS
Marks: 50
Question 1:

Fiscal policy is an instrument used by government to influence the economy.
• Discuss in detail the effects of fiscal policy, including a Laffer curve. (30 marks)


• To what extent was the South African government successful in the implementation of its fiscal policy? (10 marks)

Your Answer:
PART II: MICROECONOMICS
Marks: 50
Question 1:

Markets are at the centre of economic activities.
• With the aid of graphs, analyse the different equilibrium positions (normal profit, economic profit and loss) of the individual firm under perfect competition.
(30 marks)
• Examine the conditions under which perfect competition successfully operates.
(10 marks)

Your Answer:
PART III: ECONOMIC PURSUITS
Marks: 50
Question 1:

Regional industrial development refers to policies aimed at increasing the economic livelihood of specific areas.
• Discuss regional industrial development in South Africa by focusing on the Spatial Development Initiatives and Industrial Development Zones. (30 marks)
• How appropriate are the various financial incentives granted by the South African government for the establishment of new businesses? (10 marks)

Your Answer:
PART IV: CONTEMPORARY ECONOMIC ISSUES
Marks: 50
Question 1:

Inflation is an economic problem that every member of society has experienced.
• Examine the different measures to combat inflation. (30 marks)
• Analyse the consequences of inflation on income and wealth. (10 marks)

Your Answer:
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