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GDE LEARNER ACTIVITIES GRADE 12 2024-Final
GDE LEARNER ACTIVITIES GRADE 12 2024-Final
GDE LEARNER ACTIVITIES GRADE 12 2024-Final
1|Page Grd 12 LB V3
TERM WEEK TOPIC SUBTOPIC/SECTION PAGE
Across VERBS 3-4
ECONOMICS
3-5 BUSINESS CYCYLES 15
MACRO-
TERM 1
132
CONTEMPORARY
4 INFLATION
ECON ISSUES
142
5 TOURISM
HINT: When answering Section A – short question, it is important not to rush but to
read the questions carefully and to make sure you understand what the question is
asking. Always remember one alternative is completely wrong, one is nearly correct
and one is totally correct. It is easy to eliminate the completely wrong answer, but if
you do not read the question carefully the nearly correct answer will also appear cor-
rect. The answer will NEVER be two options. Only ONE option is correct. Your an-
swer will immediately be marked incorrect if you write TWO options.
1.1.3 When … the value of the basic flow expands and aggregate production increases
A Leakages exceed injections
B S+T+M is greater than I+G+X
C Injections exceed leakages
D Expenditure exceeds the money flow
1.1.5 An alternative term used to describe the income method of national accounts
A Gross Value Added
B Value added approach
C Factor income approach
D Conversions
1.1.9 A set of internationally agreed standards and recommendations through which na-
tional accounting aggregates are prepared.
A Migration
B Expenditure method
C South African Reserve Bank
D System of National Account
1.1.10 Is used to make provision for any errors or omissions that may have occurred in
the derivation of GDP according to the expenditure method
A Consumption by households
B Residual item
C Consumption spending by government
D Exports excluding non-factor services
COLUMN A COLUMN B
1.2.1 Real flow A. The flow of spending
1.2.2 Multiplier B. The flow of money
1.2.3 Marginal Propensity to C. The portion of an increase in income that is not
Save consumed.
1.2.4 Money flow D. The ration between the eventual change in income
1.2.5 Leakage and the initial investment.
1.2.6 GDP E. The flow of goods and services.
1.2.7 Factors of production F. Savings
1.2.8 Factor market G. Inputs into the production of goods and services
1.2.9 Model H. Total value of all goods and services produced
1.2.10 Double counting within the boundaries of a country in a given period
I. Where labour, entrepreneurship, land and capital
is traded
J. Pensions added to the national income figures
K. A simplified representation of reality
1.3 Provide the economic term/concept for each of the following descriptions.
Write only the term/concept next to the question number. No abbreviations,
acronyms or examples will be accepted.
1.3.1 Money taken from the economy, for example savings, taxes, and imports.
1.3.2 An initial change in spending results in a much bigger change in national income.
1.3.3 The sector that needs to be included for the economy to be regarded as an open
economy
1.3.4 An economy that does not take part in international trade.
1.3.5 The process whereby a relatively small change in injections results in a
proportionally larger increase in national income.
1.3.6 A model which illustrates the flows between participants in the economy
1.3.7 An economy that includes the foreign sector
1.3.8 The total value of all final goods and services that are produced within the borders
of a country.
1.3.9 The adding of more money to the circular flow, which will increase quantity of
money in the economy.
1.3.10 The movement of money in the form of income and expenditure.
1.3.11 A group of people living together.
1.3.12 All the international transactions that take place across political borders.
1.3.13 Income that the participants prefer not to spend.
1.3.14 The market in which financial securities are traded.
1.3.15 The part of macroeconomics that consist of the accounting records of a country’s
total production, income and expenditure.
QUESTION 2:
HINT: When the question requires you to “list” or “name”, you need not write a
sentence but merely few words or a phrase. This MUST be done in bullet form.
These types of questions are applicable for 2.1.1, 3.1.1 and 4.1.1
QUESTION 3:
HINT:
These types of questions are applicable for 2.1.2, 3.1.2 and 4.1.2.
Answers must be provided in full sentences; learners must ensure that
their answer addresses the question asked
3.1 Why is the gross national product of South Africa generally lower than the gross
domestic product? (1 x 2) (2)
3.2 How does the MPC relate to the multiplier? (1 x 2) (2)
3.3 How will the multiplier be influenced when a country experience net leakage?
(1 x 2) (2)
3.4 When is the circular flow in equilibrium? (1 x 2) (2)
3.5 What is the effect of adding the value of intermediate goods when calculating
GDP? (1 x 2) (2)
3.6 How will savings be affected by an increase in the marginal propensity to
consume? (1 x 2) (2)
3.7 What determines the size of the multiplier? (1 x 2) (2)
3.8 What is the effect of adding the value of intermediate goods when calculating
GDP? (1 x 2) (2)
3.9 How is national income determined in the four-sector economy? (1 x 2) (2)
3.10 Why is it important to calculate real GDP? (1 x 2) (2)
HINT: All section B questions have TWO data interpretation questions – each total
10 marks. Section B consist of Questions 2-4 not as numbered in this document
All section B questions have TWO paragraph questions, one Middle Order & ONE
Higher Order
TYPICAL EXAM QUESTION: THESE HIGHER ORDER QUESTIONS REQUIRE
THE LEARNERS TO USE HER/ HIS CRITICAL THINIKING SKILLS.
Higher order questions are grounded in the content. These types of questions
test critical thinking, where candidates should be able to apply their knowledge,
through logical reasoning and also have an awareness of their current eco-
nomic climate. Content (covered by discuss/examine/describe/ analyse/explain/evaluate/compare/as-
sess/justify/construct/calculate) can be assessed as higher-order questions. Answers will not neces-
sarily be found in textbooks.
QUESTION 4.1:
4.1. Study the information below and answer the questions that follow.
4.1.6 How can the household, as an important participant in the circular flow model,
contribute to building the economy? (8)
4.1.7 Discuss the multiplier and its effect on the national income if the marginal
propensity to consume (MPC) is 0,6 and investment increases by R10 bn. (8)
4.2. Study the graph below that depicts a simplified two-sector economy
(where E = C + I) and answer the questions that follow.
E=Y
Expenditure (E)
E¹ = 30+ 0.5Y
30 E∘ = 20 + 0.5Y
20
Income (Y)
40 60
4.2.1 Name the TWO sectors involved in deriving the macro-economic multiplier.
(1)
4.2.2 What is represented by the line E = Y? (1)
4.2.3 Explain is the relationship between MPC and multiplier? (2)
4.2.4 Use the formula, k = ΔY/ΔJ, to calculate the multiplier (k) for the above scenario.
(2)
4.2.5 Calculate the multiplier, using the formula, k = 1/ (1 – MPC), when the marginal
propensity to consume (MPC) = 0.8. Show calculations.
(4)
4.2.8 How does business sector contribute to the circular flow? (8)
4.2.9 Why is it important for a country to calculate national income? (8)
4.3. Study the following graph and answer the questions that follow:
4.3.6 Discuss the participants’ interaction in the economy with the product and
foreign exchange markets. (8)
4.3.7 Explain the interrelationship between households and businesses in the
circular-flow model. (8)
4.3.8 How has the covid 19 been contributing to a lower gross domestic product in
South Africa in 2021? (8)
4.3.9 How could an increase in investment contribute towards a higher national income
in the economy? (8)
4.4. Study the diagram below and answer the questions that follow.
4.4.6 Discuss how the expenditure GDP(E) method is used to determine gross
domestic product. (8)
4.4.7 Discuss the multiplier effect on the national income. (8)
4.5. Study Diagram below and answer the questions that follow
4.5.6 Why is the multiplier effect on manufacturing important in the economy? (8)
4.5.7 Discuss the interactions between economic participants in a closed economy.
(8)
4.5.8 How can the households as an important participant in the circular-flow model
contribute to building the economy? (8)
4.5.9 Highlight how one individual’s spending becomes another person’s income
(the multiplier effect). (8)
HINT: All section C questions have TWO questions 5 & 6 NOT like in this document.
In the examination you will need to answer only one.
ESSAY STRUCTURE
HINT: Section C – the long question, must be answered in FOUR sections: Introduction
(definition), Body (headings and full sentences in bullets) additional part and conclusion
(summarizing). The mark allocations for Section C is as follows:
MARK AL-
STRUCTURE OF ESSAY
LOCATION
Introduction
The introduction is a lower-order response. Max. 2
• A good starting point would be to define the main concept related to the
question topic.
• Do not include any part of the question in your introduction.
• Do not repeat any part of the introduction in the body.
• Avoid mentioning in the introduction what you are going to discuss in the
body.
Body
Main part: Discuss in detail/In-depth discussion/Examine/Critically discuss/ Ana- Max. 26
lyse/Compare/Evaluate/Distinguish/Differentiate/Explain/Draw a graph and ex-
plain/Use the graph given and explain/Complete the given graph/Assess/Debate
A maximum of 8 marks may be allocated for headings/examples
Additional part: Critically discuss/Evaluate/Critically evaluate/Debate/ De- Max. 10
duce/Compare/Distinguish/Interpret/How? /Suggest
A maximum of 2 marks may be allocated for mere listing facts.
Conclusion
Any higher-order conclusion should include: Max. 2
• A brief summary of what has been discussed without repeating facts al-
ready mentioned
• Any opinion or value judgement on the facts discussed
• Additional support information to strengthen the discussion/analysis
• A contradictory viewpoint with motivation, if required
• Recommendations
TOTAL 40
[40]
QUESTION 5
• Discuss in detail the markets within the four-sector model under the following
headings:
• Factor/Resources market (8)
• Money market (8)
• Product/Goods market (10) (26)
HINT: When answering Section A – short question, it is important not to rush but to
read the questions carefully and to make sure you understand what the question is
asking. Always remember one alternative is completely wrong, one is nearly correct
and one is totally correct. It is easy to eliminate the completely wrong answer, but if
you do not read the question carefully the nearly correct answer will also appear cor-
rect. The answer will NEVER be two options. Only ONE option is correct. Your an-
swer will immediately be marked incorrect if you write TWO options.
1.1 Various options are provided as possible answers to the following questions.
Choose the answer and write only the letter (A–D) next to the question
number.
1.1.7 The new economic paradigm that relates to the smoothing of business cycles is
rooted in … policies.
A public relation
B Trade
C International
D demand-and-supply side
COLUMN A COLUMN B
1.2.1 Leading indicator A. A technique used to predict/estimate the unknown from
the known facts or experience.
1.2.2 Depression
B. Indicators that change before the economy changes
1.2.3 Keynesian approach
C. A school of thought which believes the economy is best
1.2.4 Kuznets controlled by manipulating the demand for goods and
services.
1.2.5 Supply-side policy
D. The lowest point between the end of an economic con-
1.2.6 Extrapolation traction and the start of an expansionary period
E. Continuous decrease in the production output and eco-
1.2.7 Economic growth
nomic activities
1.2.8 Trough F. Successive periods of increasing and decreasing eco-
nomic activity
1.2.9 Monetary policy
G. Last 15 -25 years
1.2.10 Business cycle
H. The policy of the central bank regarding the money sup-
ply and interest rate of a country to influence economic
activity
I. An increase in the productive capacity of a country.
J. Policies aimed at increasing aggregate supply
1.3.1 Cycles that are caused by changes in activity in the building and construction
industry.
1.3.2 A summary of the value of different leading indicators into a single value
1.3.3 An indication of the general direction of the economy
1.3.4 Business cycles that are caused by changes in construction activities, lasting for 15
to 20 years.
1.3.5 Predicting the future economic activities using facts or information that is known.
1.3.6 It measures the distance between the peak and the trough of a business cycle.
1.3.7 A negative economic growth rate for at least two consecutive quarters
1.3.8 A fluctuation in economic activities over a period of time
1.3.9 The distance from the trend line to the peak and the trough
1.3.10 A period that consists of both the recession and the depression phases.
1.3.11 A school of thought which believes that controlling the supply of money directly
influences inflation and that by fighting inflation with the supply of money.
1.3.12 The period immediately before and through the upper turning point is known as …
1.3.13 A period that consists of the recovery and prosperity phases.
1.3.14 Factors originating within the market system that lead to the occurrence of business
cycles.
1.3.15 Last 50 years and longer caused by technological innovation, wars, construction of
new roads and discoveries of new deposits.
SECTION B
QUESTION 2:
HINT: When the question requires you to “list” or “name”, you need not write a sen-
tence but merely few words or a phrase. This MUST be done in bullet form. This
types of questions are applicable for 2.1.1, 3.1.1 and 4.1.1
HINT:
These types of questions are applicable for 2.1.2, 3.1.2 and 4.1.2.
Answers must be provided in full sentences; learners must ensure that
their answer addresses the question asked
3.1 How can the South African government use government spending as fiscal
measure to stimulate the economy? (1 x 2)
3.2 What negative effect does loadshedding have on the manufacturing sector?
(1 x 2)
3.3 How are leading indicators used in the forecasting of business cycles? (1 x 2)
3.4 Why is it important to use moving averages to forecast business cycles? (1 x 2)
3.5 How can the reserve Bank use cash reserve requirement to stimulate the
economy? (1 x 2)
3.6 Why does the endogenous school of thought encourage government intervention
in the economy?
(1 x 2)
3.7 What is the purpose of a trend line in a business cycle? (1 x 2)
3.8 What can the government do during a period of recession to stimulate the
economy? (1 x 2)
3.9 How accurate are leading indicators? (1 x 2)
3.10 Why is price stability important to prevent extreme fluctuations in business cycles?
(1 x 2)
3.11 How are business cycles measured? (1 x 2)
QUESTION 4.1:
4.1. Read the extract below and answer the questions that follow.
4.1.1 Name the period of business cycle during which the level of economic activities
increases (1)
4.1.2 Mention ONE type of a business cycle. (1)
4.1.3 Briefly describe the concept business cycle. (2)
4.1.4 How can natural disasters influence fluctuations in business cycles? (2)
4.1.5 How has the Keynesian (endogenous) school of thought influenced business
cycles? (4)
QUESTION 4.2:
4.2. Study the information below and answer the questions that follow.
4.2.1 Identify the socio-economic challenge that increased when the economy went into
a slump.
(1)
4.2.2 Name the lower turning point of a business cycle (1)
4.2.3 Briefly describe the term economic recession (2)
4.2.4 Explain the relationship between GDP and business cycles (2)
4.2.5 Why does inflation tend to fall during recessions? (4)
(1)
4.3.3 Briefly describe the term Juglar business cycles (2)
4.3.4 What economic activities take place during the recession phase? (2)
4.3.5 How can the length be used in forecasting of business cycles? (4)
4.4.1 Identify the letter that represent the trend line in the illustration above (1)
4.4.2 Which letter represents a trough in the diagram above? (1)
4.4.3 Briefly describe the term real business cycle. (2)
4.4.4 Explain economic activity during phase EF in the business cycle. (2)
4.4.5 How can the length of business cycles be used in forecasting? (4)
QUESTION 4.5:
4.5. Study the extract below and answer the questions that follow.
HINT: All section B questions have TWO 8 marks questions, numbered according to
questions not like in this document.
5.1 Draw a correctly labelled diagram of a business cycle, clearly indicating trend line,
length, the amplitude, and the trough.
(8)
5.2 Distinguish between the Keynesian and the Monetarist explanation of the causes of
business cycles
(8)
5.3 Briefly discuss lagging indicators as a feature underpinning forecasting (8)
5.4 Illustrate a typical business cycle (8)
5.5 Explain the length and amplitude with the aid of a diagram (8)
5.6 Compare the endogenous and exogenous causes of business cycles (8)
5.7 Use a diagram and briefly discuss the prosperity phase of a business cycle (8)
5.8 Discuss the length and amplitude as features underpinning forecasting of business
cycles.
(8)
5.9 Explain the coincidence and the lagging indicators used in forecasting of business
cycles.
(8)
5.10 Differentiate between amplitude and the trendline as features underpinning
forecasting (8)
6.1 How can South Africa’s fiscal policy contribute to a higher economic growth rate?
(8)
(8)
6.3 How does an increase in investment affect business cycles? (8)
6.4 Evaluate RSA’s efforts in improving the efficiency of inputs (8)
6.5 With reference to the Phillips curve analyze the relationship between inflation and
unemployment
(8)
6.6 Recommend measures which the South African government can use to revive the
economy post Covid-19 pandemic
(8)
6.7 How effective is SARB’s monetary policy in smoothing out business cycles? (8)
6.8 How can the monetary policy be used to slow down an overheating economy?
(8)
6.9 Analyze the importance of price stability in preventing extreme fluctuations in
business cycles. (8)
6.10 How can the SARB prevent further recessions in the economy? (8)
SECTION C
HINT: All section C questions have TWO questions 5 & 6 NOT like in this document. In the
examination you will need to answer only one.
ESSAY STRUCTURE
HINT: Section C – the long question, must be answered in FOUR sections: Introduction
(definition), Body (headings and full sentences in bullets) additional part and conclusion
(summarising). The mark allocations for Section C is as follows:
MARK
STRUCTURE OF ESSAY ALLOCA-
TION
Introduction
The introduction is a lower-order response. Max. 2
• A good starting point would be to define the main concept related to the
question topic.
• Do not include any part of the question in your introduction.
• Do not repeat any part of the introduction in the body.
• Avoid mentioning in the introduction what you are going to discuss in the
body.
Body
Main part: Discuss in detail/In-depth discussion/Examine/Critically discuss/ Ana- Max. 26
lyse/Compare/Evaluate/Distinguish/Differentiate/Explain/Draw a graph and ex-
plain/Use the graph given and explain/Complete the given graph/Assess/Debate
A maximum of 8 marks may be allocated for headings/examples
Additional part: Critically discuss/Evaluate/Critically evaluate/Debate/ De- Max. 10
duce/Compare/Distinguish/Interpret/How? /Suggest
A maximum of 2 marks may be allocated for mere listing facts.
QUESTION 7
• Discuss in detail the new economic paradigm in smoothing-out business cycles.
(26 marks)
• Evaluate the South African government's initiatives to reduce the economic down-
turn caused by the Covid-19 pandemic. (10 marks)
[40]
QUESTION 8
• Discuss in detail the features underpinning the forecasting of business cycles
(26 marks)
• Why is price stability important to prevent extreme fluctuations in business cycles?
(10 marks)
[40]
QUESTION 9
HINT: When answering Section, A – short question, it is important not to rush but to
read the questions carefully and to make sure you understand what the question is
asking. Always remember one alternative is completely wrong, one is nearly correct,
and one is totally correct. It is easy to eliminate the completely wrong answer, but if
you do not read the question carefully the nearly correct answer will also appear cor-
rect. The answer will NEVER be two options. Only ONE option is correct. Your an-
swer will immediately be marked incorrect if you write TWO options.
1.1.1. Public goods that are non-excludable and non-rival in consumption are called …
goods.
A community
B collective
C demerit
D merit
A private
B foreign
C public
D financial
A Economic growth
B Full employment
C Exchange rate stability
D Economic inequality
A Phillips curve.
B Laffer curve.
C Lorenz curve.
D Demand curve.
A lack of accountability.
B maintaining law and order.
C to protect its citizens against foreign threats.
D to conserve the natural resources.
1.1.7 It refers to the transfer of functions, activities, and ownership from the private
sector to the public sector.
A Regulation
B Nationalisation
C Deregulation
D Privatisation
A national
B fiscal
C monetary
D bank
A Allocation of resources
B Economic instability
C Redistribution of Wealth
D Social instability
COLUMN A COLUMN B
1.2.1 Provincial government A. Transfer of ownership from the private sector to the
public sector.
1.2.2 Supplying public goods
B. When a state-owned business is sold to a
1.2.3 Parastatals private sector enterprise.
1.3.1 Goods and services provided by the state for use by all members of society
1.3.2 A transfer of functions and ownership from the public sector to the private sector
1.3.3 A policy that targets taxes and government expenditure to influence economic ac-
tivity
1.3.4 A business owned wholly or partly by the state and run by a public authority
1.3.5 Goods that are harmful to society, for example cigarettes
1.3.6 The main source of revenue to the state
1.3.7 Money paid by the government to a person/institution without any counter perfor-
mance.
1.3.8 Goods and services provided by the state for use by all members of society
1.3.9 Dishonest action taken by people in accountable positions.
1.3.10 Demonstrate the relationship between tax rates and tax revenue.
1.3.11 When resources are allocated in such a way that no one can be made better off
without making someone else worse off
1.3.12 A graph that shows the relationship between tax rate and tax revenue
1.3.13 A set of rules and procedures that need to be followed
1.3.14 Removal of unnecessary restrictions by law.
1.3.15 when a state-owned business is sold to a private sector enterprise
SECTION B
QUESTION 2:
HINT: When the question requires you to “list” or “name,” you need not write a sen-
tence but merely few words or a phrase. This MUST be done in bullet form. These
types of questions are applicable for 2.1.1, 3.1.1 and 4.1.1
2.1 Give any TWO reasons for the necessity of the public sector. (2 x 1) 2
2.2 Name any TWO composition of the public sector. (2 x 1) 2
2.3. Mention any TWO objectives of the public sector. (2 x 1) 2
2.4 List any TWO examples of indirect tax. (2 x 1) 2
2.5 Give any TWO reasons for public sector failure. (2 x 1)2
2.6. List the TWO main characteristics of fiscal policy (2 x 1) 2
2.7 Give any TWO examples of community goods (2 x 1) 2
2.8 List any TWO reasons that can contribute to inefficiency of the public sector.
(2 x 1) 2
2.9 Mention the TWO features of public sector failure. (2 x 1) 2
2.10 Name any TWO effects of public sector failure. (2 x 1) 2
2.11 Name any TWO government pricing policies when supplying public goods and
services. (2 x 1)2
2.12 Name TWO problems of public sector provisioning (2 x 1)2
2.13 Name any TWO examples government sources of income. (2 x 1)2
2.14 Give any TWO reasons for public sector failure. (2 x 1)2
HINT:
These types of questions are applicable for 2.1.2, 3.1.2 and 4.1.2.
Answers must be provided in full sentences; learners must ensure that
their answer addresses the question asked
HINT: All section B questions have TWO data interpretation questions – each total
10 marks. Section B consist of Questions 2-4 not as numbered in this document
All section B questions have TWO paragraph questions, one Middle Order & ONE
Higher Order
TYPICAL EXAM QUESTION: THESE HIGHER ORDER QUESTIONS REQUIRE
THE LEARNERS TO USE HER/ HIS CRITICAL THINIKING SKILLS.
Higher order questions are grounded in the content. These types of questions
test critical thinking, where candidates should be able to apply their knowledge,
through logical reasoning and also have an awareness of their current economic climate. Content
(covered by discuss/examine/describe/ analyse/explain/evaluate/compare/assess/justify/construct/calcu-
late) can be assessed as higher-order questions. Answers will not necessarily be found in textbooks.
4.1. Study the following extract and answer the questions that follow
QUESTION 4.2:
4.2. Study the following cartoon and answer the questions that follow.
4.2.1 Identify any one parastatal depicted in the cartoon above. (1)
4.2.2 What does the abbreviation SOE stand for? (1)
4.2.3 Briefly describe the term privatisation. (2)
4.2.4 Why is efficiency a problem in public sector provisioning? (2)
4.2.5 How can the government use the fiscal policy to stimulate economic growth in
South Africa? (4)
4.3.1 Identify the parastatal that is sinking in the above cartoon. (1)
4.3.2 Name any other parastatal in South Africa. (1)
4.3.3 Briefly describe the term state-owned enterprise. (2)
4.3.4 Explain why mismanagement leads to inefficiency. (2)
4.3.5 How does public sector failure impact economic stability? (4)
4.4.1 Identify a macroeconomic objective of the public sector in the cartoon. (1)
4.4.2 Which level (sphere) of government is responsible for handling issues that affect
the country as a whole? (1)
4.4.3 Briefly describe the term full employment. (2)
4.4.4 Explain how public sector failure can lead to social instability (2)
4.4.5 Why is South Africa (the truck) likely to fail to achieve its economic goals? (4)
4.4.11 How effective is the South African government in achieving full employment
as a macroeconomic objective? (8)
4.4.12 Evaluate the success of the South African Reserve Bank in maintaining price
stability in the economy. (8)
4.4.13 Why is it important for the government to assess the performance of the econ-
omy?
(8)
4.4.14 How can the South African government going about to achieve a more
equitable income distribution? (8)
4.4.15 To what extent has the South African government achieved the macroeconomic
objectives? (8)
4.4.16 Evaluate price stability as a main objective of our government. (8)
4.5. Study the information below and answer the questions that follow.
4.5.1 Identify one example of an indirect tax in the information above. (1)
4.5.2 Name the main source of government’s tax revenue. (1)
4.5.3 Briefly describe the term budget. (2)
4.5.4 Why does the government impose excise duties on certain goods and services.
(2)
4.5.5 How will an increase in company tax impact negatively on economic growth?
(4)
QUESTION 4.6:
4.6. Study the information below and answer the questions that follow.
4.7. Study the extract below and answer the questions that follow.
4.8. Study the information below and answer the questions that follow:
4.8.1 Name the level of government under which the municipality of Benoni can be
classified. (1)
4.8.2 Other than the repairing of roads, name any other function of the municipality.
(1)
4.8.3 Briefly describe the term free riding. (2)
4.8.4 Explain a benefit of improved road connectivity. (2)
4.8.5 What impact will a lower budget allocation have on road safety? (4)
4.9. Study the table below and answer the questions that follow:
4.9.1 Identify the marginal tax rate for a person earning between R216 201 and
R337 800 per year (1)
4.9.2 Name the income tax system represented by the table above. (1)
4.9.3 Briefly describe the term fiscal policy (2)
4.9.4 Explain the effect of high tax rates on taxpayers in a country. (2)
4.9.5 Use the information in the table above to calculate the income tax payable if
one receives an annual income of R480 000 (4)
(8)
HINT: All section C questions have TWO questions 5 & 6 NOT like in this document.
In the examination you will need to answer only one.
ESSAY STRUCTURE
HINT: Section C – the long question, must be answered in FOUR sections: Introduction
(definition), Body (headings and full sentences in bullets) additional part and conclusion
(summarising). The mark allocations for Section C are as follows:
MARK
STRUCTURE OF ESSAY ALLOCA-
TION
Introduction
The introduction is a lower-order response. Max. 2
• A good starting point would be to define the main concept related to the
question topic.
• Do not include any part of the question in your introduction.
• Do not repeat any part of the introduction in the body.
• Avoid mentioning in the introduction what you are going to discuss in the
body.
Body
Main part: Discuss in detail/In-depth discussion/Examine/Critically discuss/ Max. 26
Analyse/Compare/Evaluate/Distinguish/Differentiate/Explain/Draw a graph and
explain/Use the graph given and explain/Complete the given graph/Assess/De-
bate
A maximum of 8 marks may be allocated for headings/examples Max. 10
Additional part: Critically discuss/Evaluate/Critically evaluate/Debate/ De-
duce/Compare/Distinguish/Interpret/How? /Suggest
A maximum of 2 marks may be allocated for mere listing facts.
Conclusion
Any higher-order conclusion should include: Max. 2
• A summary of what has been discussed without repeating facts already
mentioned
• Any opinion or value judgement on the facts discussed
• Additional support information to strengthen the discussion/analysis
• A contradictory viewpoint with motivation, if required
• Recommendations
TOTAL 40
QUESTION 5
• Discuss in detail the main objectives of the public sector in the economy. (26)
• How successful is the implementation of South Africa’s fiscal policy (10)
QUESTION 6
• Discuss in detail the reasons for public sector failure (link them to typical problems
experienced through public sector provisioning) (26)
• How can the unfair distribution of income in South Africa be resolved? (10)
HINT: When answering Section-A – short question, it is important not to rush but to
read the questions carefully and to make sure you understand what the question is
asking. Always remember one alternative is completely wrong, one is nearly correct.
and one is totally correct. It is easy to eliminate the completely wrong answer, but if
you do not read the question carefully the nearly correct answer will also appear cor-
rect. The answer will NEVER be two options. Only ONE option is correct. Your an-
swer will immediately be marked incorrect if you write TWO options.
1.1.1. The interaction of economies with trade as an important element is known as….
A Exchange
B Commerce activities
C International relationships
D Globalisation
1.1.2 An increase in the value of an exchange rate in a free- floating exchange rate sys-
tem is known as …
A Revaluation
B Devaluation
C Appreciation
D Depreciation
1.1.3 Which ONE of the following can cause a deficit in the Balance of Payments?
A Inward foreign investment
B Decrease in mineral exports
C Increase in foreign currency reserves
D Decrease in mineral imports
1.1.5 The systematic record of a country’s transaction with the rest of the world is known
as the…
A terms of trade
B quarterly bulletin
C balance of payment
D transactions record
1.1.7 Deliberate action by the SARB to lower the value of the rand is known as…
A devaluation
B depreciation
C appreciation
D revaluation
1.1.8 The subsection of the balance of payment which is used to record financial pay-
ments and receipts relating to the flow of goods and services and other income
A current account
B financial account
C capital transfer account
D payment account
COLUMN A COLUMN B
1.2.1 Opportunity cost A. When a country is the most efficient producer of a
good or product
1.2.2 Free Trade
B. When a group of countries formally agree to engage
1.2.3 Absolute Advantage
in international trade, e. g. European Union
1.2.4 Trading blocks
C. Consumers and producers are free to buy goods and
1.2.5 Pegged rate services anywhere in the world without any re-
1.2.6 Transfer Payments strictions
1.2.7 Comparative advantage D. A situation where one country has a relative ad-
vantage in the production of goods or services
1.2.8 Capital Transfer Account
E. International transactions relating to production, in-
1.2.9 International Monetary Fund come and expenditure are recorded in this account
(IMF)
F. A financing instrument distributed among member
1.2.10 Current Account countries of the IMF
G. Countries who have deficits on their Balance of Pay-
ments can borrow money from this institution
H. When a fixed exchange rate pegs one country’s cur-
rency to another country’s currency
I. Money received without any productive service ren-
dered, e.g. gifts
J. A benefit or value of something that must be given up
to achieve something else
K. Sub account in the balance of payment
(1x10) 10
SECTION B
QUESTION 2:
HINT: When the question requires you to “list” or “name”, you need not write a sen-
tence but merely few words or a phrase. This MUST be done in bullet form. These
types of questions are applicable for 2.1.1, 3.1.1 and 4.1.1
2.1 List any TWO sub accounts/components of the Balance of Payments. (2x1)
2.2 Name TWO effects of international trade. (2x1)
2.3. Name TWO items in the financial account of the balance of payments. (2x1)
2.4 List TWO supply reasons for international trade. (2x1)
2.5 List TWO types of exchange rates that a country can use. (2x1)
2.6. List TWO demand reasons for international trade. (2x1)
2.7 Name any TWO ways/strategies that can be used to correct the BOP disequilibria.
(2x1)
2.8 Name TWO factors affecting the demand of foreign exchange (2x1)
2.9 Name TWO factors affecting the supply of foreign exchange (2x1)
2.10 GIVE TWO examples of merchandise that South Africa exports other than gold.
(2x1)
HINT:
These types of questions are applicable for 2.1.2, 3.1.2 and 4.1.2.
Answers must be provided in full sentences; learners must ensure that
their answer addresses the question asked
3.1 Why is gold exports listed as a separate item in the BOP? (1x2)
3.2 What impact will the depreciation of a currency have on the Balance of Payment
account? 1x2)
3.3 What negative impact will the recent trend in the current account have on
the BOP? (1x2)
3.4 Why is the exchange market important to tourists? (1x2)
3.5 What happens to the value of South African rand, when the supply of US dollars
Increases? (1x2)
3.6 Why would an increase in terms of trade have a positive effect on the welfare
of the country? (1x2)
3.7 How can world trade improve specialisation? (1x2)
3.8 How can the appreciation of the rand affect the exports of goods and services?
(1x2)
3.9 Why is it important for a country to have a stable exchange rate? (1x2)
3.10 Why are unrecorded transaction included in the balance of payment? (1x2)
HINT: All section B questions have TWO data interpretation questions – each total
10 marks. Section B consist of Questions 2-4 not as numbered in this document
All section B questions have TWO paragraph questions, one Middle Order & ONE
Higher Order
4.1.1 Give the economic concept illustrated in the table above. (1)
4.1.2 Which current account item is used for recording donations? (1)
4.1.3 Briefly describe the term trade balance. (2)
4.1.4 Why are net gold export figures positive in South Africa? (2)
4.1.5 Calculate the balance on the current account for the second quarter of 2019.
Show ALL calculations. (4)
4.2 Study the information below and answer questions that follow.
4.2.1 Identify the institution responsible for publishing the data above. (1)
4.2.3 What is the trend in the index of import prices? (1)
4.2.3 Briefly describe the concept terms of trade. (2)
4.2.4 What can bring an improvement in the country’s terms of trade? (2)
4.2.5 Calculate the terms of trade for March 2022 (A). Show ALL calculations (4)
(8)
4.3 Study the information below and answer the questions that follow.
4.3.1. Which letter represents imports from the above data? (1)
4.3.2. Which international institution can help countries with funds to correct
fundamental deficit.
(1)
4.3.3. Briefly describe the term balance of payment. (2)
4.3.4. Explain the relationship between the exchange rate of a country and its balance
of payment. (2)
4.3.5. Why is it important to analyze a country’s balance of payment data?
(2 x 2) (4)
ESSAY STRUCTURE
HINT: Section C – the long question, must be answered in FOUR sections: Introduction (definition),
Body (headings and full sentences in bullets) additional part and conclusion (summarising). The
mark allocations for Section C are as follows:
MARK ALLO-
STRUCTURE OF ESSAY
CATION
Introduction
The introduction is a lower-order response. Max. 2
• A good starting point would be to define the main concept related to the
question topic.
• Do not include any part of the question in your introduction.
• Do not repeat any part of the introduction in the body.
• Avoid mentioning in the introduction what you are going to discuss in the
body.
Body
Main part: Discuss in detail/In-depth discussion/Examine/Critically discuss/ Ana- Max. 26
lyse/Compare/Evaluate/Distinguish/Differentiate/Explain/Draw a graph and ex-
plain/Use the graph given and explain/Complete the given graph/Assess/Debate
A maximum of 8 marks may be allocated for headings/examples
Additional part: Critically discuss/Evaluate/Critically evaluate/Debate/ De- Max. 10
duce/Compare/Distinguish/Interpret/How? /Suggest
A maximum of 2 marks may be allocated for mere listing facts.
Conclusion
Any higher-order conclusion should include: Max. 2
• A summary of what has been discussed without repeating facts already
mentioned
• Any opinion or value judgement on the facts discussed
• Additional support information to strengthen the discussion/analysis
• A contradictory viewpoint with motivation, if required
• Recommendations
TOTAL 40
QUESTION 5
• Discuss in detail the reasons for international trade. (26)
• Critically discuss the challenges faced by south Africa in international trade (10)
[40]
QUESTION 6
• Discuss in detail the demand reasons for international trade (26)
• Evaluate the effects of a currency depreciation in an economy (10)
[40]
QUESTION 7
• Discuss in detail the supply reasons for international trade. (26)
• Examine comparative advantage in international trade by using an appropriate
example. (10)
[40]
1.1 Various options are provided as possible answers to the following questions.
Choose the answer and write only the letter (A–D) next to the question number.
1.1.1 A perfectly competitive market is a market structure known for the following
except …
A. a large number of producers
B. free barriers to entry
C. differentiated products
D. complete information
1.1.4 The … curve of an individual firm is horizontal because the firm cannot influence
the market price.
A. demand
B. marginal cost
C. average revenue
D. supply
1.1.5 The supply curve for an individual firm under perfect conditions has a … slope.
A. Negative
B. Positive
C. Horizontal
D. Vertical
1.1.6 The average revenue of a firm in a perfectly competitive market is equal to its …
A. total revenue
B. selling price
C. marginal cost
D. economic profit
1.1.9 The minimum earnings that prevent a perfectly competitor from leaving the indus-
try in the long run is known as …
A. Economic profit
B. Normal profit
C. Economic loss
D. Fixed costs
1.2 Choose a description from COLUMN B that matches the item in COLUMN A.
Write only the letter (A-I) next to the question number (1.2.1 –1.2.10) in the
ANSWER BOOK.
COLUMN A COLUMN B
1.2.1 Perfect competition A. Promote efficiency of the market
B. It is equal to the average cost at the
1.2.2 Break-even point lowest cost per unit
C. The period during which at least one
1.2.3 Industry factor of production is fixed
D. Buyers and sellers do not have market
1.2.4 Competition Act power
E. Profit is maximised at an output which
1.2.5 Marginal cost is determined according to this rule
F. Different businesses that produce the
1.2.6 Short run same product
G. All inputs can be varied
1.2.7 Explicit cost H. A short run rate of output and sales at
which a supplier generates enough
1.2.8 Golden rule revenue to cover fixed and variable
costs.
1.2.9 Homogenous products I. All buyers and sellers have access to
market conditions, prices and product
1.2.10 Complete information quality
J. Actual expenditure of a business e.g.
cost of raw material
K. Producers have an influence over the
market price
L. The product has close substitutes
1.3.1 The cost that remains the same even if the output changes.
1.3.2 A point where a firm cannot meet its average variable cost.
1.3.3 When average revenue is between the shutdown and break even.
1.3.4 All the goods in this market must be identical.
1.3.5 A mechanism that brings together buyers and sellers of goods and services.
1.3.6 The additional revenue earned when sales increase by one more unit.
1.3.7 An institution whose main function is to review orders made by the competition tri-
bunal and amends or confirm these orders.
1.3.8 The profit that the producer receives over and above the normal profit.
1.3.9 It occurs when a firm produces at the output level at which marginal revenue is
equal to marginal cost.
1.3.10 The seller who takes price that is determined by the market forces.
1.3.11 Minimum profits that will prevent the business from leaving the market.
1.3.12 The purchasing of a firm by more than one firm.
1.3.13 Costs that change according to the changes in output.
1.3.14 The sum of payments the firm receives from the sale of its output
1.3.15 The behavior such as price fixing that benefits firms at the expense of buyers
(15 x 1) (15)
SECTION B
QUESTION 2:
HINT: When the question requires you to “list” or “name,” you need not write a sen-
tence but merely few words or a phrase. This MUST be done in bullet form. This
types of questions are applicable for 2.1.1, 3.1.1 and 4.1.1
HINT:
These types of questions are applicable for 2.1.2, 3.1.2 and 4.1.2.
Answers must be provided in full sentences; learners must ensure that
their answer addresses the question asked
HINT: All section B questions have TWO data interpretation questions – each total
10 marks. Section B consist of Questions 2-4 not as numbered in this document.
All section B questions have TWO paragraph questions, one Middle Order & ONE
Higher Order
TYPICAL EXAM QUESTION: THESE HIGHER ORDER QUESTIONS REQUIRE
THE LEARNERS TO USE HER/ HIS CRITICAL THINIKING SKILLS.
Higher order questions are grounded in the content. These types of
questions test critical thinking, where candidates should be able to apply
their knowledge, through logical reasoning and also have an awareness
of their current economic climate. Content (covered by discuss/examine/describe/ analyse/
explain/ evaluate/compare/assess/justify/construct/calculate) can be assessed as higher-order
questions. Answers will not necessarily be found in textbooks.
4.1. Study the graph above and answer the questions that follow.
Diagram A Diagram B
4.1.1 Identify the diagram that represents a single firm from the above diagram. (1)
4.1.2 Which curve is used to determine the supply of the firm? (1)
4.1.3 Briefly describe the term marginal revenue. (2)
4.1.4 Explain price determination for the firm in in diagram B. (2)
4.1.5 Determine the type of profit made in diagram B when 500 units are being
produced. Show ALL calculation (4)
4.1.6 Explain nature of the product and control over market supply and price in
a perfect market. (8)
4.1.7 With the aid of industry and individual producer graphs, explain how the
long-run equilibrium in a perfect market will be achieved when an economic
loss was made in the short run. (8)
4.1.8 Analyse the measures that may be used by the government to promote
competition in the economy. (8)
4.1.9 Examine the consequences of an increase in the demand for a firm’s products
in a perfect competitive market. (8)
4.2. Study the graph below and answer the questions that follow.
4.2.1 Identify the shutdown point from the graph above. (1)
4.2.2 Mention ONE feature which shows that the above graph is of a single firm. (1)
4.2.3 Briefly describe the term marginal cost. (2)
4.2.4 Explain the reason for a perfect market to make normal profit in the long run.
(2)
4.2.5 Why is the rising part of the mc above point E3 be considered as the
supply curve? (4)
4.3 Study the information below and answer the questions that follow.
QUESTION 4.4:
4.4 Study the information below and answer the questions that follow.
QUESTION 4.5:
4.5 Study the graph below and answer the questions that follow:
SECTION C
HINT: All section C questions have TWO questions 5 & 6 NOT like in this document.
In the examination you will need to answer only one.
ESSAY STRUCTURE
HINT: Section C – the long question, must be answered in FOUR sections: Introduction
(definition), Body (headings and full sentences in bullets) additional part and conclusion
(summarising). The mark allocations for Section C is as follows:
MARK AL-
STRUCTURE OF ESSAY LOCA-
TION
QUESTION 5
With the aid of three separate graphs, explain the following short-term equilibrium posi-
tions in a perfect market. (26)
• economic profit
• economic loss
• normal profit
How successful is the competition policy in promoting a more competitive
economy? (10)
[40]
The dynamics of imperfect markets with the aid of cost and revenue curves
1.1 Various options are provided as possible answers to the following ques-
tions. Choose the answer and write only the letter (A–D) next to the question num-
ber.
1.1.3 The AR curve is always above the MR curve in the imperfect market
because …
A. AR is more inelastic than MR.
B. MR is more elastic than AR.
C. AR is more elastic than MR.
D. MR is more inelastic than AR.
1.1.6 A stage in the production process where the long-run average cost curve (LRAC),
neither increase or decreases is known as …
A. economies of scale.
B. diseconomies of scale.
C. no returns to scale.
D. constant economies of scale.
1.1.9 Additional cost paid by the firm for every additional unit produced.
A. Marginal profit
B. Marginal revenue
C. Average cost
D. Marginal cost
1.2 Choose a description from COLUMN B that matches the item in COLUMN A.
Write only the letter (A-F) next to the question number (1.2.1 – 1.2.5) in the AN-
SWER BOOK.
COLUMN A COLUMN B
1.2.1 Break-even point A. Actual expenditure of a business, for
example wages and Interest
1.2.2 Explicit costs B. Duration where at least one factor of
production is fixed
1.2.3 Shut down point C. Total revenue is equal to total cost
1.2.4 Normal profit D. A business in a perfect market will consider
closing down if AR = AVC
1.2.5 Short run E. An example of tacit collusion in an oligopoly
market regarding pricing
F. Occurs where average revenue is equal to
average cost
1.3 Provide the economic term/concept for each of the following descriptions. Write
only the term/concept next to the question number. No abbreviations, acronyms
or examples will be accepted.
1.3.1 Cost that cannot be recovered should the firm leave the market.
1.3.2 The quantity where MR is equal to MC.
1.3.3 The sum of fixed costs and variable costs.
1.3.4 The cost that changes according to the level of production
1.3.5 Profit more than normal profit
2.2 Study the table below and answer the questions that follow:
QUESTION 3
1.1 Various options are provided as possible answers to the following questions. Choose
the answer and write only the letter (A–D) next to the question number.
1.1.2 Which of the following is not a barrier to entry for new firms seeking entry into an
industry in which there is currently a monopoly?
A. Supernormal profits
B. Economies of scale
C. Branding
D. An industry regulatory body
1.2 Choose a description from COLUMN B that matches the item in COLUMN A.
Write only the letter (A – G) next to the question number (1.2.1 – 1.2.6) in the
ANSWER BOOK, for example 1.2.7.H
COLUMN A COLUMN B
1.2.1 Nature of product A. Legal right of a holder to exclusively manu-
facture a product
1.2.2 Artificial monopoly
B. More than one business in the market con-
1.2.3 Competition
trols the supply of goods and services
1.2.4 Monopoly curve C. No close substitutes
D. Electricity in South Africa is provided by the
1.2.5 Sunk costs.
government enterprise
1.2.6 Dead weight loss
E. Faces a downward sloping demand curve
F. Reduction in economic welfare caused by a
reduction in both consumer and producer sur-
plus
G. Cannot be recovered should the firm leave
the market
1.3 Provide the economic term/concept for each of the following descriptions. Write
only the term/concept next to the question number. NO ABBREVIATIONS, ACRO-
NYMS OR EXAMPLES WILL BE ACCEPTED.
1.3.1 A form of legal protection to prevent copying, for commercial purposes, original
works of authorship, including books and music.
1.3.2 Economic conditions in the industry, for example, economies of scale or control
of a critical resource, that limit effective competition.
1.3.3 A government rule that gives the inventor the exclusive legal right to make, use,
or sell the invention for a limited time.
1.3.4 When an existing firm uses sharp but temporary price cuts to discourage new
competition.
1.3.5 Removing government controls over setting prices and quantities in certain in-
dustries.
1.3.6 Market forces that prevent potential competitors from entering a market.
2.1 Study the graph below and answer the questions that follow:
2.1.1 Identify the letter in the graph above that represents the loss minimising point.
(1)
2.1.2 What is the selling price of the business above? (1)
2.1.3 Briefly describe the term monopoly. (2)
2.1.4 Why is the equilibrium position above typical of the short run? (2)
2.1.5 Determine the loss for this business. Show ALL calculations (4)
OLIGOPOLIES
SECTION A: TYPICAL EXAM QUESTIONS
QUESTION 1: Section A – Short Questions
HINT: When answering Section A – short question, it is important not to rush but to
read the questions carefully and to make sure you understand what the question is
asking. Always remember one alternative is completely wrong, one is nearly correct
and one is totally correct. It is easy to eliminate the completely wrong answer, but if
you do not read the question carefully the nearly correct answer will also appear cor-
rect. The answer will NEVER be two options. Only ONE option is correct. Your an-
swer will immediately be marked incorrect if you write TWO options.
1.1.2 The market structure in which strategic considerations are most important.
A. Monopolistic competition
B. Oligopoly
C. Monopoly
D. Pure competition
1.1.3 Which of the following is most likely to be oligopolistic.
A. The market for corn
B. The market for colas
C. The market for aluminium
D. The market for ground coffee
1.1.3 The market structure in which there is interdependence among firms is.
A. Oligopoly
B. Monopolistic competition
C. Monopoly
D. Perfect competition
1.1.5 The oligopoly model that predicts that oligopoly will tend to very
inflexible is the…model.
A. Cournot
B. Stackelberg
C. Dominant firm
D. Kinked demand
1.1.6 Suppose that three oligopolistic firms are currently charging R12 for their product.
The three firms are about the same size. Firm A decides to raise its price to R18 and
announces to the press that it is doing so because higher prices are needed to restore
economic vitality to the industry. Firms B and C go along with Firm A and raise their
prices as well. This is an example of …
A. Price leadership
B. Collusion
C. The dominant firm model
D. The Stackelberg model
1.1.7 In the dominant firm model, the smaller fringe firms behave like
A. an increase in output level and a decrease in price
B. a decrease in output level and an increase in price
C. a decrease in output level and no change in price
D. neither a change in output level nor a change in price
1.1.8 Which of the following is true about demand curve facing the dominant firm?
A. It is identical to market demand.
B. It equals market demand minus fringe firms supply curve.
C. It equals market demand minus demand facing the fringe firms.
D. It is horizontal.
COLUMN A COLUMN B
1.2.1 Price leadership A. Collusion that is open and oligopolies meet for-
mally to decide on prices and production.
1.2.2 Pure Oligopoly
B. A change in price causes a smaller percentage
1.2.3 Inelastic demand
change in the quantity demanded.
1.2.4 Explicit collusion C. Two firms dominate the market.
D. This market sells homogeneous products and
1.2.5 Non price competition
dependence between sellers exists.
E. Doing business over the internet
F. One firm fixes the price and other accept as a
market price.
1.3 Provide the economic term/concept for each of the following descriptions. Write only
the term/concept next to the question number. NO ABBREVIATIONS, ACRONYMS
OR EXAMPLES WILL BE ACCEPTED.
1.3.1 A market where there are only two oligopolies in the market.
1.3.2 The market structure in which strategic considerations are imperative.
1.3.3 The behaviour by firms is motivated by an arrangement that is not formal.
1.3.4 The demand curve is not a straight line but has a different elasticity for higher
and lower prices.
QUESTION 2
HINT: All section B questions have TWO data interpretation questions – each to-
tal 10 marks. Section B consist of Questions 2-4 not as numbered in this docu-
ment.
All section B questions have TWO paragraph questions, one Middle Order & ONE
Higher Order
2.1 Study pictures below and answer the questions that follow.
2.2 Study the extract below and answer the questions that follow:
MONOPOLISTIC COMPETITION
SECTION A: TYPICAL EXAM QUESTIONS
QUESTION 1: Section A – Short Questions
HINT: When answering Section, A – short question, it is important not to rush but to
read the questions carefully and to make sure you understand what the question is
asking. Always remember one alternative is completely wrong, one is nearly correct,
and one is totally correct. It is easy to eliminate the completely wrong answer, but if
you do not read the question carefully the nearly correct answer will also appear cor-
rect. The answer will NEVER be two options. Only ONE option is correct. Your an-
swer will immediately be marked incorrect if you write TWO options.
1.1.2 The most important factor in determining the long-run profit potential in monopolistic
competition is.
A. Free entry and exit.
B. The elasticity of the market demand curve
C. The elastic of the firm’s demand curve
D. The reaction of rival firms to a change in price
1.1.6 Which of the following is true for both perfect and monopolistic competition?
A. Firms produce a differentiated product.
B. Firms face a downward sloping demand curve.
C. Firms produce a homogeneous product.
D. There is freedom of entry and exit in the long run.
1.1.7 Which of the following is true in long-run equilibrium for a firm monopolistic compe-
tition.
A. MC=ATC
B. MC>ATC
C. MC<ATC
D. MC=ATC
1.2 Choose a description from COLUMN B that matches the item in COLUMN A. Write
only the letter (A – F) next to the question number (1.2.1 – 1.2.5) in the ANSWER
BOOK, for example 1.2.9 F.
COLUMN A COLUMN B
1.2.1 Branding A. Occurs when MC = MR
1.2.2 Non-price competition B. Is used to differentiate the firm’s product.
1.2.3 Monopolistic competition C. Occurs when sellers focus on their prod-
1.2.4 Profit maximisation uct’s features than on price.
1.2.5 Hybrid structure D. Many buyers are selling to many sellers.
1.3 Provide the economic term/concept for each of the following descriptions.
Write only the term/concept next to the question number. NO ABBREVIATIONS,
ACROYMS OR EXAMPLES WILL BE ACCEPTED
QUESTION 2
HINT: All section B questions have TWO data interpretation questions – each to-
tal 10 marks. Section B consist of Questions 2-4 not as numbered in this docu-
ment.
All section B questions have TWO paragraph questions, one Middle Order & ONE
Higher Order
Study the extract below and answer the questions that follow:
2.2 Study the picture below and answer the question that follow:
2.2.1 Identify ONE example of a monopolistic competitor from the picture above. (1)
2.2.2 What is the number of firms expected in the market shown on the picture above?
(1)
2.2.3 Briefly describe the term hybrid structure. (2)
2.2.4 Explain why product differentiation is an important aspect of competition
between businesses. (2)
2.2.5 How does free entry affect the demand curve of the monopolistic competition?
(2 x 2) (4)
QUESTION 3
MIDDLE ORDER PARAGRAPH
SECTION C
HINT: All section C questions have TWO questions 5 & 6 NOT like in this document.
In the examination you will need to answer only one.
ESSAY STRUCTURE
HINT: Section C – the long question, must be answered in FOUR sections: Introduction
(definition), Body (headings and full sentences in bullets) additional part and conclusion
(summarising). The mark allocations for Section C is as follows:
MARK AL-
STRUCTURE OF ESSAY LOCA-
TION
Introduction
The introduction is a lower-order response. Max. 2
• A good starting point would be to define the main concept related to
the question topic.
• Do not include any part of the question in your introduction.
• Do not repeat any part of the introduction in the body.
• Avoid mentioning in the introduction what you are going to discuss in
the body.
Body
Main part: Discuss in detail/In-depth discussion/Examine/Critically dis- Max. 26
cuss/ Analyse/Compare/Evaluate/Distinguish/Differentiate/Explain/Draw a
graph and explain/Use the graph given and explain/Complete the given
graph/Assess/Debate
A maximum of 8 marks may be allocated for headings/examples Max. 10
Additional part: Critically discuss/Evaluate/Critically evaluate/Debate/ De-
duce/Compare/Distinguish/Interpret/How? /Suggest
A maximum of 2 marks may be allocated for mere listing facts.
Conclusion
Any higher-order conclusion should include: Max. 2
• A brief summary of what has been discussed without repeating facts
already mentioned
• Any opinion or value judgement on the facts discussed
• Additional support information to strengthen the discussion/analysis
• A contradictory viewpoint with motivation, if required
• Recommendations
TOTAL 40
QUESTION 7
• Compare and contrast perfect competition and monopolistic competition in detail
in terms of the following headings:
- Number of businesses
- Nature of product
- Control over prices
- Demand curves
- Entry
- Information
- Examples
- Economic profit/loss
- Decision-making
- Collusion
- Productive/Technical efficiency
- Allocative efficiency (26 marks)
• In contrast to the perfect competition, why do monopolistic competitors need to ad-
vertise their products? (10 marks)
[40]
QUESTION 8
• Compare and contrast a perfect market and an oligopoly in detail under the
following headings:
- Number of businesses
- Entry into and exit from the market
- Control over prices
- The nature of the product
- Demand curve
- Economic profit/loss
- Availability of information
- Examples
QUESTION 10
• Compare and contrast in detail the market structure of a monopoly with that of a
monopolistic competitor under the following headings:
- Control over prices
- Demand curve
- Economic profit/losses
- Number of businesses
- Nature of the product
- Information
- Entry
- Examples
- Decision making
- Collusion
- Technical efficiency
- Allocative efficiency (26 marks)
QUESTION 12
• Compare and contrast oligopoly with monopolistic competitor in detail under the
following headings:
- Control over prices
- Demand curve
- Economic profit/losses
- Number of businesses
- Nature of the product
- Information
- Entry
- Examples
- Decision making
- Collusion
- Technical efficiency
- Allocative efficiency
(26 marks)
• How will a monopolistic competitor, like KFC, compete with other fast food chicken
outlets to increase its market share? (10 marks)
[40]
HINT: When answering Section A – short question, it is important not to rush but to
read the questions carefully and to make sure you understand what the question is
asking. Always remember one alternative is completely wrong, one is nearly correct
and one is totally correct. It is easy to eliminate the completely wrong answer, but if
you do not read the question carefully the nearly correct answer will also appear cor-
rect. The answer will NEVER be two options. Only ONE option is correct. Your an-
swer will immediately be marked incorrect if you write TWO options.
1.1 Various options are provided as possible answers to the following questions.
Choose the answer and write only the letter (A–D) next to the question
number.
1.1.1 Goods highly in demand in the general welfare of the people, but not highly rated
by the market is called … goods
A demerit
B merit
C non-durable
D semi-durable
1.1.2 When businesses fail to deliver goods and services at the lowest possible
cost is known as … inefficiency.
A productive
B allocative
C demand
D summative
1.1.3 A situation where the best available production outcome has not been achieved is
known as market …
A power .
B failure.
C equilibrium.
D waste.
1.1.7 Goods which are non-excludable and non-rival are known as … goods.
A consumer
B capital
C community
D scarce
1.1.8 When a business does NOT produce at the lowest possible cost, it relates |
to … inefficiency.
A allocative
B consumer
C goods
D productive
1.1.15 When a production unit does not produce goods at the lowest possible cost,
it is called …
A technical efficiency.
B allocative inefficiency.
C productive inefficiency.
D selective efficiency.
1.1.16 Goods such as parks, beach facilities and streets are known as … goods.
A private
B collective
C consumer
D producer
COLUMN A COLUMN B
1.2.1 Maximum price A. The best available production outcome has
not been achieved.
1.2.2 Allocative inefficiency
B. Good with a negative externality
1.2.3 Welfare loss
C. A situation where no allocation is available
1.2.4 Demerit goods
that make one individual better off without
1.2.5 Negative externality making another worse off.
1.2.6 Subsidy D. When goods are not produced in the right
1.2.7 Productive inefficiency proportions to reflect consumer preferences.
1.3.1 The best available production outcome has not been achieved.
1.3.2 Prices set by government above equilibrium to benefit the producer
1.3.3 Consumption by one person does not reduce the consumption by another
individual
1.3.4 People enjoy watching TV without paying for it
1.3.5 Goods with negative externalities e.g. alcohol
1.3.6 Shows different combinations of the production of two goods, given available
resources and technology
1.3.7 Benefits exceed payment by individuals and the community e.g. clean water
and health care
1.3.8 The process of comparing social costs and social benefits of a project.
1.3.9 The lowest amount that can be given to a worker e.g. domestic workers.
1.3.10 Good that society feels are beneficial to consume but are undersupplied by
the market (10 x 1)
SECTION B
QUESTION 2:
HINT: When the question requires you to “list” or “name”, you need not write a sen-
tence but merely few words or a phrase. This MUST be done in bullet form. This
types of questions are applicable for 2.1.1, 3.1.1 and 4.1.1
HINT:
These types of questions are applicable for 2.1.2, 3.1.2 and 4.1.2.
Answers must be provided in full sentences; learners must ensure that
their answer addresses the question asked
3.1. Why is the demand for skilled labour difficult to adjust in South Africa? (2)
3.1.2 Why does the government sometimes set minimum prices (price floors) for
certain products? (2)
3.1.3 Why will debtors benefit from price increases? (2)
3.1.4 Why are merit goods normally undersupplied by the market? (2)
3.1.5 How will a national minimum wage influence the supply of labour? (2)
3.1.6 How will the producer react if the government implements a maximum price
on his product?(2)
3.1.7 How will producers benefit from minimum prices that are implemented
by the government? (2)
3.1.8 Why are allocative and technical efficiency important for the economy? (2)
3.1.9 How is CBA related to market failure? (2)
HINT: All section B questions have TWO data interpretation questions – each total
10 marks. Section B consist of Questions 2-4 not as numbered in this document
All section B questions have TWO paragraph questions, one Middle Order & ONE
Higher Order
TYPICAL EXAM QUESTION: THESE HIGHER ORDER QUESTIONS REQUIRE
THE LEARNERS TO USE HER/ HIS CRITICAL THINIKING SKILLS.
Higher order questions are grounded in the content. These types of questions
test critical thinking, where candidates should be able to apply their knowledge,
through logical reasoning and also have an awareness of their current economic climate. Content
(covered by discuss/examine/describe/ analyse/explain/evaluate/compare/assess/justify/construct/cal-
culate) can be assessed as higher-order questions. Answers will not necessarily be found in text-
books.
QUESTION 4.1:
4.1. Study the graph and answer the questions that follow
QUESTION 4.2:
4.2 Read the extract below and answer the questions that follow
4.3 Study the graph below and answer the questions that follow.
4.4. Study the graph below and answer the questions that follow
4.5 Study the illustrations below and answer the questions that follow.
4.6 Study the data below and answer the questions that follow.
4.6.1 Identify ONE private cost from the data above. (1)
4.6.2 Which institution normally conducts cost-benefit analysis? (1)
4.6.3 Briefly describe the concept cost-benefit analysis. (2)
4.6.4 What alternative measure could the government consider instead of building
a new road? (2)
4.6.5 You are the adviser to the Minister of Transport. How would you advise
the minister on the project? (4)
HINT: All section C questions have TWO questions 5 & 6 NOT like in this document.
In the examination you will need to answer only one.
ESSAY STRUCTURE
HINT: Section C – the long question, must be answered in FOUR sections: Introduction
(definition), Body (headings and full sentences in bullets) additional part and conclusion
(summarising). The mark allocations for Section C is as follows:
MARK AL-
STRUCTURE OF ESSAY LOCA-
TION
Introduction
The introduction is a lower-order response. Max. 2
• A good starting point would be to define the main concept related to
the question topic.
• Do not include any part of the question in your introduction.
• Do not repeat any part of the introduction in the body.
• Avoid mentioning in the introduction what you are going to discuss in
the body.
Body
Main part: Discuss in detail/In-depth discussion/Examine/Critically dis- Max. 26
cuss/ Analyse/Compare/Evaluate/Distinguish/Differentiate/Explain/Draw a
graph and explain/Use the graph given and explain/Complete the given
graph/Assess/Debate
A maximum of 8 marks may be allocated for headings/examples Max. 10
Additional part: Critically discuss/Evaluate/Critically evaluate/Debate/ De-
duce/Compare/Distinguish/Interpret/How? /Suggest
A maximum of 2 marks may be allocated for mere listing facts.
Conclusion
Any higher-order conclusion should include: Max. 2
• A brief summary of what has been discussed without repeating facts
already mentioned
• Any opinion or value judgement on the facts discussed
• Additional support information to strengthen the discussion/analysis
• A contradictory viewpoint with motivation, if required
• Recommendations
TOTAL 40
QUESTION 6
• Discuss, in detail, without drawing graphs, state intervention as a conse-
quence of market failures. (26 marks)
• How can market inefficiency be reduced by global markets (globalisa-
tion)? (10 marks)
[40]
QUESTION 7
• Discuss how the following factors can lead to the misallocation of re-
sources in the market.
1. Immobility of factors of production -
2. Imperfect distribution of income and wealth
3. Externalities (26 Marks)
QUESTION 8
• Explain the supply of undesirable goods in South Africa and how the government
can deal with it. (10 marks)
[40]
HINT: When answering Section A – short question, it is important not to rush but to
read the questions carefully and to make sure you understand what the question is
asking. Always remember one alternative is completely wrong, one is nearly correct
and one is totally correct. It is easy to eliminate the completely wrong answer, but if you
do not read the question carefully the nearly correct answer will also appear correct.
The answer will NEVER be two options. Only ONE option is correct. Your answer will
immediately be marked incorrect if you write TWO options.
1.1 Various options are provided as possible answers to the following questions.
Choose the answer and write only the letter (A–D) next to the question
number.
1.1.1 A trade protocol that is meant to improve trade relationships between the United
States of America and Africa is called the …
A European Union.
B Southern African Customs Union.
C African Growth and Opportunity Act.
D Multilateral Monetary Area.
1.1.2 A form of economic integration that allows free movement of labour, capital and
money between member countries is known as a/an …
1.1.3 When there are no restrictions to trade such as taxes on goods or bans on im-
ports, it is called …
A dumping
B protectionism
C free trade
D diversification
A protectionism.
B import substitution.
C export promotion.
D globalisation.
1.1.8 To reap the benefits of efficient markets, countries rely on the principle
of…advantage.
A Nominal
B Competitive
C Relative
D Comparative
1.1.9 As from 1995, General Agreement on Tariffs and Trade was re-placed by the…
Southern African Customs Union.
A Free Trade Area.
B World trade organization.
C Nepad.
1.1.10 The international trade policy that discourage the import of certain goods
and services is known as (a/an)…
A Protectionism.
B Import substitution.
C Export promotion.
D Economic growth. (10 x2) (20)
COLUMN A COLUMN B
1.2.1 Diversification A A tariff as percentage of the value of imported goods
1.2.2 Embargo B Calculated as a certain amount per unit, mass or size
of a good
1.2.3 Trade liberalisation C A deliberate government policy to protect domestic in-
dustries against foreign competition
1.2.4 Specific import duties D Custom duties and quotas
1.2.5 Ad valorem E The removal of trade barriers
1.2.6 Excise duties F Production of a wide range of goods and services
1.2.7 Import control G An official state ban on the import of certain goods
and services
1.2.8 Surety H Ban on the import goods or service
1.2.9 Economies of scale I Charging below the cost of production
1.2.10 Boycott J Reduced cost of production associated with produc-
ing a large quantity of output
K Third party guarantees that a loan agreement will be
repaid by signing the contract
1.3 Provide the economic term/concept for each of the following descriptions. Write only
the term/concept next to the question number. No abbreviations, acronyms or ex-
amples will be accepted.
1.3.1 Selling goods in a foreign market at prices that are below the cost of produc-
tion in the country of origin.
1.3.2 Government policy of encouraging domestic producers by means of incen-
tives and facilities to increase their output
1.3.3 Total reduction in the total tax payable.
1.3.4 Money paid to businesses to decrease their cost of production
1.3.5 A ban on the import of goods or services
1.3.6 Charging very low prices that are below the cost of production
1.3.7 Increased output at lower cost
1.3.8 Trade agreements that lay down the rules governing the level of trade
1.3.9 The organization that replaced GATT and promotes the reduction of all trade
barriers.
1.3.10 Goods that were previously imported are replaced with locally produced
goods. (10 x 1 = 10)
QUESTION 2:
HINT: When the question requires you to “list” or “name”, you need not write a sen-
tence but merely few words or a phrase. This MUST be done in bullet form. This
types of questions are applicable for 2.1.1, 3.1.1 and 4.1.1
HINT: All section B questions have TWO data interpretation questions – each total
10 marks. Section B consist of Questions 2-4 not as numbered in this document
All section B questions have TWO paragraph questions, one Middle Order & ONE
Higher Order
TYPICAL EXAM QUESTION: THESE HIGHER ORDER QUESTIONS
REQUIRE THE LEARNERS TO USE HER/ HIS CRITICAL THINIKING
SKILLS.
Higher order questions are grounded in the content. These types of
questions test critical thinking, where candidates should be able to apply their knowledge,
through logical reasoning and also have an awareness of their current economic climate.
Content (covered by discuss/examine/describe/ analyse/explain/evaluate/compare/assess/jus-
tify/construct/calculate) can be assessed as higher-order questions. Answers will not neces-
sarily be found in textbooks.
4.1.1 Identify the international trade policy depicted by the cartoon above. (1)
4.1.2 What does the abbreviation WTO stand for? (1)
4.1.3 Briefly describe the term import substitution. (2)
4.1.4 Why is it necessary for infant industries to be protected? (2)
4.1.5 How can South Africa benefit from free trade? (2X2) (4)
QUESTION 4.2:
4.2 Study the extract below and answer the questions that follow.
QUESTION 4.3:
study the following information and answer the questions that follow:
Source :https://africa
- -partnership.org/en/afcfta
QUESTION 4.4:
Study the following information and answer the questions that follow:
Producers and consumers are free to buy goods and services from anywhere in the
world, without the interference of government.
Regionalisation, in the form of trade blocs, makes use of free trade and protection with
one another. Member countries pursue free trade with one another but apply trade re-
strictions outside the bloc e.g. NAFTA and Mercusor
Source: Linkedin.com
QUESTION 5
• Discuss in detail arguments in favour of protectionism. (26 marks)
• Explain what you regard as the correct (mix trade and protectionism) (10 marks)
40
QUESTION 6
• Discuss in detail export promotion:
• Reasons (4)
• Methods (6)
• Advantages (8)
• Disadvantages (8) (26 marks)
Evaluate the success of South African trade policy in protecting the local textile
industry against foreign competition. (10 marks)
40
HINT: When answering Section A – short question, it is important not to rush but to
read the questions carefully and to make sure you understand what the question is
asking. Always remember one alternative is completely wrong, one is nearly correct,
and one is totally correct. It is easy to eliminate the completely wrong answer, but if
you do not read the question carefully the nearly correct answer will also appear cor-
rect. The answer will NEVER be two options. Only ONE option is correct. Your an-
swer will immediately be marked incorrect if you write TWO options.
1.1 Various options are provided as possible answers to the following questions.
Choose the answer and write only the letter (A–D) next to the question
number.
1.1.4 Which strategy failed in its objective to halve poverty and unemployment by 2014?
A New Growth Path (NGP)
B Reconstruction and Development Plan (RDP)
C Accelerated and Shared Growth Initiative for South Africa (AsgiSA)
D National Development Plan (NDP)
1.1.8 A development policy which works with Sectoral Education Training Authorities
is …
A Joint Initiative on Priority Skills Acquisition.
B Export Processing Zones.
C Reconstruction and Development Programme.
D Expanded Public Works Programme.
A old-age pensions.
B disability grant.
C child support.
D education.
COLUMN A COLUMN B
1.2.1 Fiscal policy measure A The focus is on attempts to increase aggre-
gate demand in an economy
1.2.2 Monetary measure
1.2.3 Demand-side approach
B Refers to the developed countries in the
1.2.4 North-South divide Northern hemisphere and the developing
1.2.5 Reconstruction and countries in the Southern hemisphere
Development Programme
1.2.6 Human capital C Increased or decreased interest rates
1.2.7 Deregulation
1.2.8 Globalization D A development policy to improve service de-
livery to the poor and create an environment for
1.2.9 Moral suasion
human development
1.2.10 JIPSA
E cutting personal taxation
SECTION B
QUESTION 2:
HINT: When the question requires you to “list” or “name”, you need not write a sen-
tence but merely few words or a phrase. This MUST be done in bullet form. These
types of questions are applicable for 2.1.1, 3.1.1 and 4.1.1
HINT:
These types of questions are applicable for 2.1.2, 3.1.2 and 4.1.2.
Answers must be provided in full sentences; learners must ensure that
their answer addresses the question asked
3.1 What is the effect of affirmative action on the Black labour force in South
Africa? (2)
3.2 How can an increase in household income affect economic growth? (2)
3.3 How can SMMEs contribute to economic growth in South Africa? (2)
3.4 What effect will a huge increase in electricity costs have on small
businesses in South Africa? (2)
3.5 How can the cost of doing business influence the supply of goods
and services? (2)
3.6 How does economic growth relate to economic development? (2)
3.7 How do countries in the North contribute to the destruction of the
environment? (2)
3.8 Why does the South African government focus on small businesses to
promote economic growth? (2)
3.9 What is the effect on increased investment spending on the economy? (2)
3.10 What is the relationship between lower interest rates and the availability
of credit? (2)
HINT: All section B questions have TWO data interpretation questions – each total
10 marks. Section B consist of Questions 2-4 not as numbered in this document
QUESTION 4.1:
4.1. Study the cartoon below and answer the questions that follow.
QUESTION 4.2:
4.2. Study the cartoon below and answer the questions that follow.
4.2.1 Which man, according to the cartoon, represents the countries of the North?
(1)
4.2.2 List ONE characteristic of a country of the North. (1)
4.2.3 Briefly describe the term globalisation. (2)
4.2.4 What is the aim of the G20 countries? (2)
4.2.5 What impact will the activities in the North (North-South divide) have on
the world environment? (4)
4.2.6 How can countries in the South solve the problem of underdevelopment?
(4 x 2) (8)
4.2.7 Discuss economic growth and literacy rate as criterion to distinguish between
the countries in the North and countries from the South. (4 x 2) (8)
4.2.8 How can economic integration reduce the economic gap in the world? (4 x 2) (8)
4.2.9 How can the development of small businesses benefit the country? (4 x 2) (8)
QUESTION 4.3:
4.3. Study the graph below and answer the questions that follow.
14
15
10
6
5
0
2010 2015 2020 2030
Year
4.3.1 What is the trend of the actual unemployment rate since 2010? (1)
4.3.2 In what year was the NDP implemented in South Africa? (1)
4.3.3 Briefly describe the term economic development. (2)
4.3.4 What is the Vision 2030 of the NDP in South Africa? (2)
4.3.5 Deliberate whether the NDP can reach its intended target of 6% for
unemployment in 2030? (4)
4.3.6 Briefly discuss the objectives of the National Development Plan (NDP).
(4 x 2) (8)
4.3.7 Explain progressive personal income taxes and wealth taxes as instruments
to reduce income inequality. (4 x 2) (8)
4.3.8 How could recent labour laws contribute towards wealth creation in South Africa?
(4 x 2) (8)
4.3.9 How does corruption influence good governance in South Africa? (4 x 2) (8)
QUESTION 4.4:
4.4. Read the extract below and answer the questions that follow.
4.4.1 Which government department drives fiscal policy in South Africa? (1)
4.4.2 What does the acronym JIPSA stands for? (1)
4.4.3 Briefly describe the term technical recession. (2)
4.4.4 How can business efficiency influence economic growth? (2)
4.4.5 What urgent supply side measures is needed to stimulate the economy? (4)
4.4.8 How can taxation be used to stimulate employment in South Africa. (8)
4.4.9 How can the Expanded Public Work Programmes be used to reduce the
the unemployment rate? (8)
4.5. Study the cartoon below and answer the questions that follow.
HINT: All section C questions have TWO questions 5 & 6 NOT like in this document.
In the examination you will need to answer only one.
ESSAY STRUCTURE
HINT: Section C – the long question, must be answered in FOUR sections: Introduction
(definition), Body (headings and full sentences in bullets) additional part and conclusion
(summarising). The mark allocations for Section C are as follows:
MARK AL-
STRUCTURE OF ESSAY
LOCATION
Introduction
The introduction is a lower-order response. Max. 2
• A good starting point would be to define the main concept related to the
question topic.
• Do not include any part of the question in your introduction.
• Do not repeat any part of the introduction in the body.
• Avoid mentioning in the introduction what you are going to discuss in the
body.
Body
Main part: Discuss in detail/In-depth discussion/Examine/Critically discuss/ Ana- Max. 26
lyse/Compare/Evaluate/Distinguish/Differentiate/Explain/Draw a graph and ex-
plain/Use the graph given and explain/Complete the given graph/Assess/Debate
A maximum of 8 marks may be allocated for headings/examples
Additional part: Critically discuss/Evaluate/Critically evaluate/Debate/ De- Max. 10
duce/Compare/Distinguish/Interpret/How? /Suggest
A maximum of 2 marks may be allocated for mere listing facts.
Conclusion
Any higher-order conclusion should include: Max. 2
• A brief summary of what has been discussed without repeating facts already
mentioned
• Any opinion or value judgement on the facts discussed.
• Additional support information to strengthen the discussion/analysis.
• A contradictory viewpoint with motivation, if required
• Recommendations
TOTAL 40
QUESTION 5
QUESTION 6
• Discuss the aims and objectives following growth and development policies.
– Reconstruction and Development Programme
– Growth Employment and Redistribution (26 marks)
• Evaluate the success of these two policies. (10 marks)
• Discuss the following economic growth and development policies in South Africa
by focusing on their aims and/or objectives:
HINT: When answering Section A – short question, it is important not to rush but to
read the questions carefully and to make sure you understand what the question is
asking. Always remember one alternative is completely wrong, one is nearly correct,
and one is totally correct. It is easy to eliminate the completely wrong answer, but if
you do not read the question carefully the nearly correct answer will also appear cor-
rect. The answer will NEVER be two options. Only ONE option is correct. Your an-
swer will immediately be marked incorrect if you write TWO options.
1.1 Various options are provided as possible answers to the following questions.
Choose the answer and write only the letter (A–D) next to the question
number.
1.1.2 An …is one where business activities in a particular area/region are concentrated.
A industrial development
B industrial development strategies
C regional development
D industrial hub
A 14
B 9
C 3
D 18
1.1.4 The … is Africa’s first automotive city, located in the country’s capital city of
Tshwane, Gauteng.
A TASEZ
B ASEZ
C ELSEZ
D SBSEZ
1.1.8 Economic activities which create value-added products in all sectors are known
as…development.
A social
B productive
C employment
D industrial
1.1.9 Which institution conducted that ‘black South Africa’s hold at least 23% of top 100
companies?
1.1.10 Corruption, nepotism and mismanagement of public funds have occurred in many
provinces and municipalities resulting in…
A provisioning of resources
B partnerships
C poor governance
D competitiveness (10 x 2 ) (20)
COLUMN A COLUMN B
1.2.4 Industrial development C Track of land that forms passageway allowing access
from one area to another
1.2.5 Integrated manufacturing
strategy D Concentrates on export-oriented manufacturing
1.2.7 Financial incentives F Businesses that produce the same type of products
1.2.8 Special economic zone G A purpose built industrial estate linked to an airport
or seaport with export as the main objective
1.2.9 Industrial Policy Action / industrial estates that are physically enclosed
Plan (IPAP) and adjacent to a harbour or airport
1.3.1 The track of land that forms a passageway allowing access from one area to
another
1.3.2 Efforts by governments to move manufacturing and other businesses from metro-
politan areas to rural areas
1.3.3 Geographically enclosed area identified for the development of specific economic
activities
1.3.4 An organization for the promotion of accelerated socio-economic integration of the
African continent.
1.3.5 A passageway allowing access from one area to another
1.3.6 Industrial estates that are physically enclosed and near to a harbor or airport
1.3.7 Efforts by governments to move manufacturing and other businesses from metro-
politan areas to rural areas
1.3.8 A strategy to strengthen institutional capacity to deliver services that will facilitate
development
1.3.9 A purpose built industrial estate linked to an airport or seaport with export as the
main objective
1.3.10 Changes in technology which causes a mismatch between the skills that
employees can offer and the skills that employers require (10 x 1 ) (10)
SECTION B
QUESTION 2:
HINT: When the question requires you to “list” or “name”, you need not write a sen-
tence but merely few words or a phrase. This MUST be done in bullet form. These
types of questions are applicable for 2.1.1, 3.1.1 and 4.1.1
2.1 List any TWO incentives used by the South African government to improve
industrial development (2 x 1) (2)
2.2 Name TWO aspects of regional industrial development policy (2 x 1) (2)
2.3. Provide TWO industrial development strategies used in South Africa (2 x 1) (2)
2.4 Name TWO industrial Development Zones in South Africa (2 x 1) (2)
2.5 List TWO South Africa’s regional development policies in terms of benchmark
criteria
2.6 Name TWO South Africa’s industrial development policies (2 x 1) (2)
2.7 Name any TWO reasons for industrial development (2 x 1) (2)
2.8 Name any TWO aims of the National Industrial Policy Framework (2 x 1) (2)
2.9 Provide any TWO growth sectors of Integrated manufacturing strategy (2 x 1)(2)
2.10 Name any TWO Special Economic Zones (2 x 1) (2)
2.11 Name any TWO industrial development strategies (2 x 1) (2)
HINT:
These types of questions are applicable for 2.1.2, 3.1.2 and 4.1.2.
Answers must be provided in full sentences; learners must ensure that
their answer addresses the question asked
HINT: All section B questions have TWO data interpretation questions – each total
10 marks. Section B consist of Questions 2-4 not as numbered in this document
All section B questions have TWO paragraph questions, one Middle Order & ONE
Higher Order
TYPICAL EXAM QUESTION: THESE HIGHER ORDER QUESTIONS REQUIRE
THE LEARNERS TO USE HER/ HIS CRITICAL THINIKING SKILLS.
Higher order questions are grounded in the content. These types of questions
test critical thinking, where candidates should be able to apply their knowledge,
through logical reasoning and have an awareness of their current economic climate. Content (cov-
ered by discuss/examine/describe/ analyse/explain/evaluate/compare/assess/justify/construct/calculate)
can be assessed as higher-order questions. Answers will not necessarily be found in textbooks.
Study the extract below and answer the questions that follow
Study the information below and answer the questions that follow
Intergration Sustainability
• Partnerships • Investment
of social
capital
Study the extract below and answer the questions that follow
4.3.1 Which incentive address business skills used by the South Africa
government to improve industrial development? (1)
4.3.2 Name the government that promote industrial development in un-
derdeveloped regions (1)
4.3.3 Briefly describe the term industrial development (2)
4.3.4 How will this SheTrades programme contribute to integration in
South Africa? (2)
4.3.5 How can small business create a competitive advantage with in-
centive compensation? (2x2) (4)
4.3.8 How successful can regional development in South African be? (8)
4.3.9 Analyse the impact of IPAP will have on industrial development in the private
sector of South Africa? (8)
4.3.10 What can the government do to promote industrial development in South Africa?
(8)
Study the pictures below and answer the questions that follow
Cultural
Tourism Agriculture
industries
4.4.6 Briefly discuss Coega and East London industrial development zones (IDZ)
(4x2) (8)
4.4.7 Discuss how the Small and Medium Enterprise Development Programme
(SMEDP) and Foreign Investment Grants (FIG) help to improve industrial develop-
ment in South Africa (4x2) (8)
Study the information below and answer the questions that follow
4.5.6 Briefly explain the focus of the national industrial policy framework (NIPF) and the
industry policy action plan (IPAP) (4x2) (8)
4.5.7 Outline the aims of regional development. (4x2) (8)
4.5.8 Explain the focus area of development trade policy of special economic zones.
(8)
4.5.9 How does job creation improve regional development in South Africa? (8)
HINT: All section C questions have TWO questions 5 & 6 NOT like in this document.
In the examination you will need to answer only one.
ESSAY STRUCTURE
HINT: Section C – the long question, must be answered in FOUR sections: Introduction
(definition), Body (headings and full sentences in bullets) additional part and conclusion
(summarising). The mark allocations for Section C are as follows:
MARK AL-
STRUCTURE OF ESSAY
LOCATION
Introduction
The introduction is a lower-order response. Max. 2
• A good starting point would be to define the main concept related to the
question topic.
• Do not include any part of the question in your introduction.
• Do not repeat any part of the introduction in the body.
• Avoid mentioning in the introduction what you are going to discuss in the
body.
Body
Main part: Discuss in detail/In-depth discussion/Examine/Critically discuss/ Ana- Max. 26
lyse/Compare/Evaluate/Distinguish/Differentiate/Explain/Draw a graph and ex-
plain/Use the graph given and explain/Complete the given graph/Assess/Debate
A maximum of 8 marks may be allocated for headings/examples
Additional part: Critically discuss/Evaluate/Critically evaluate/Debate/ De- Max. 10
duce/Compare/Distinguish/Interpret/How? /Suggest
A maximum of 2 marks may be allocated for mere listing facts.
Conclusion
Any higher-order conclusion should include: Max. 2
• A brief summary of what has been discussed without repeating facts already
mentioned
• Any opinion or value judgement on the facts discussed
• Additional support information to strengthen the discussion/analysis
• A contradictory viewpoint with motivation, if required
• Recommendations
TOTAL 40
QUESTION 5
• Discuss in detail South Africa’s initiatives(endeavours) in regional development
(26 marks)
• How successful is South Africa’s regional development in terms of their bench-
mark criteria? (10 marks)
40
QUESTION 6
• Discuss in detail the following South Africa’s initiatives(endeavours) in regional de-
velopment
- Spatial development imitative (13)
- Industrial development zone (13) (26 marks)
• How has BBBEE policy benefited the Black people of South Africa? (10 marks)
40
HINT: When answering Section A – short question, it is important not to rush but to
read the questions carefully and to make sure you understand what the question is
asking. Always remember one alternative is completely wrong, one is nearly correct
and one is totally correct. It is easy to eliminate the completely wrong answer, but if
you do not read the question carefully the nearly correct answer will also appear cor-
rect. The answer will NEVER be two options. Only ONE option is correct. Your an-
swer will immediately be marked incorrect if you write TWO options.
1.1 Various options are provided as possible answers to the following questions.
Choose the answer and write only the letter (A–D) next to the question
number.
1.1.1 All persons between the age of 15 and 65 who supply labour for productive activi-
ties.
A Unemployment Rate
B Employment Rate
C Repo rate
D Economically Active Population
1.1.2 The organisation that is responsible to publish statistic data in South Africa.
A South African Reserve Bank
B International Monetary Fund
C Statistics South Africa
D System of National Accounts
1.1.3 The indicator that is used to measure an increase in the prices of goods produced
locally.
A Consumer Price Index
B Inflation rate
C Producer Price Index
D Deflation
1.1.8 If productivity increases are lower than the real wage increases, …
A inflation will increase.
B more workers will be employed.
C labour productivity will lower.
D more jobs will be created.
COLUMN A COLUMN B
1.2.1 Comparisons A The percentage of the 15 – 24 age
group that can read and write.
1.2.2 Life Expectancy
B Contributes to world peace and creating
1.2.3 Under five mortality
partnerships between countries.
1.2.4 Youth literacy rate
C Changing data that is used to inform us
1.2.5 Terms of trade of the changes in the economy.
1.2.6 Social Indicator D The average period that a person may
1.2.7 United Nations expect to live.
(10x1) 10
1.3 Provide the economic term/concept for each of the following descriptions.
Write only the term/concept next to the question number. No abbreviations,
acronyms or examples will be accepted.
1.3.1 The policy that aims to stabilize prices by combating inflation. (1x1)
1.3.2 The value of one country’s currency in relation to another country’s currency.
(1x1)
1.3.3 Real GDP divided by the number of workers employed. (1x1)
1.3.4 The number of children who will die before the age of one. (1x1)
1.3.5 The social indicator used to indicate the efficiency of the education system.
(1x1)
1.3.6 The curve that is used to show the distribution of income. (1x1)
1.3.7 An international body working to protect the rights of children. (1x1)
1.3.8 The rate at which commercial banks lends money to prominent clients. (1x1)
1.3.9 An index used to compare countries human aspects of development. (1x1)
1.3.10 The labour force divided by the total working age. (1x1)
(10 x 2 ) (20)
QUESTION 2:
HINT: When the question requires you to “list” or “name”, you need not write a sen-
tence but merely few words or a phrase. This MUST be done in bullet form. These
types of questions are applicable for 2.1.1, 3.1.1 and 4.1.1
2.1 List any TWO things to consider when assessing the economy. (2 x 1)
2.2 Name any TWO indicators that shows an increase in prices over long.
periods of time. (2 x 1)
2.3. Name any TWO productivity indicators. (2 x 1)
2.4 Name TWO international organisations that require standardisation of indicators.
(2 x 1)
2.5 List any TWO indicators that measures the health of the population. (2 x 1)
2.6 Name any TWO Instruments used to measure human development. (2x 1)
2.7 List any TWO health indicators (2X1)
2.8 Name TWO main items used to calculate trade balance. (2 x 1)
2.9 Name any TWO indicators relating to money supply. (2 x 1)
2.10 Name TWO inflation indicators. (2 x 1)
(10 x 2 ) (20)
QUESTION 3:
HINT:
These types of questions are applicable for 2.1.2, 3.1.2 and 4.1.2.
Answers must be provided in full sentences; learners must ensure that
their answer addresses the question asked
HINT: All section B questions have TWO data interpretation questions – each total
10 marks. Section B consist of Questions 2-4 not as numbered in this document
All section B questions have TWO paragraph questions, one Middle Order & ONE
Higher Order
TYPICAL EXAM QUESTION: THESE HIGHER ORDER QUESTIONS REQUIRE
THE LEARNERS TO USE HER/ HIS CRITICAL THINIKING SKILLS.
Higher order questions are grounded in the content. These types of questions
test critical thinking, where candidates should be able to apply their knowledge,
through logical reasoning and also have an awareness of their current economic climate. Content
(covered by discuss/examine/describe/ analyse/explain/evaluate/compare/assess/justify/construct/cal-
culate) can be assessed as higher-order questions. Answers will not necessarily be found in text-
books.
QUESTION 4.1:
Study the information below and answer the questions that follow:
4.1.1 Identify the organisation that is responsible for publishing data on price increases
in South Africa. (1)
4.1.2 Name the indicator that best measures the data as depicted above. (1)
4.1.3 What is the effect on the economy if products are more expensive? (2)
4.1.4 Why is there a sudden increase in prices from April 2022 to April 2023? (2)
4.1.5 How can the South African government combat inflation? (2x2)(4)
QUESTION 4.2:
Study the information below and answer the questions that follow:
4.3.1. Identify any ONE cause why the economic activities are declining. (1)
4.3.2. Name the indicator that is linked to electricity. (1)
4.3.3. What is the effect of grey listing on investments? (2)
4.3.4. Why is it important for the government to analyse data on the economy? (2)
4.3.5. How can the government improve economic forecasting? (2x2) (4)
4.4. Study the following information and answer the questions that follow:
HINT: All section C questions have TWO questions 5 & 6 NOT like in this document.
In the examination you will need to answer only one.
ESSAY STRUCTURE
HINT: Section C – the long question, must be answered in FOUR sections: Introduction
(definition), Body (headings and full sentences in bullets) additional part and conclusion
(summarising). The mark allocations for Section C is as follows:
MARK AL-
STRUCTURE OF ESSAY
LOCATION
Introduction
The introduction is a lower-order response. Max. 2
• A good starting point would be to define the main concept related to
the question topic.
• Do not include any part of the question in your introduction.
• Do not repeat any part of the introduction in the body.
• Avoid mentioning in the introduction what you are going to discuss in
the body.
Body
Main part: Discuss in detail/In-depth discussion/Examine/Critically dis- Max. 26
cuss/ Analyse/Compare/Evaluate/Distinguish/Differentiate/Explain/Draw a
graph and explain/Use the graph given and explain/Complete the given
graph/Assess/Debate
A maximum of 8 marks may be allocated for headings/examples Max. 10
Additional part: Critically discuss/Evaluate/Critically evaluate/Debate/ De-
duce/Compare/Distinguish/Interpret/How? /Suggest
A maximum of 2 marks may be allocated for mere listing facts.
Conclusion
Any higher-order conclusion should include: Max. 2
• A summary of what has been discussed without repeating facts al-
ready mentioned
• Any opinion or value judgement on the facts discussed
• Additional support information to strengthen the discussion/analysis
• A contradictory viewpoint with motivation, if required
• Recommendations
TOTAL 40
QUESTION 5
• Discuss Social Indicators in detail (26)
• How successful has the South African government been in promoting economic
development using the social indicators. (10)
(40)
HINT: When answering Section A – short question, it is important not to rush but to read
the questions carefully and to make sure you understand what the question is asking. Always
remember one alternative is completely wrong, one is nearly correct and one is totally cor-
rect. It is easy to eliminate the completely wrong answer, but if you do not read the question
carefully the nearly correct answer will also appear correct. The answer will NEVER be two
options. Only ONE option is correct. Your answer will immediately be marked incorrect if you
write TWO options.
1.1 Various options are provided as possible answers to the following ques-
tions. Choose the answer and write only the letter (A–D) next to the question
number.
1.1.1 An inflation rate that excludes items with highly volatile prices is called … inflation.
A administered
B headline
C inclusive
D core
1.1.3 Low growth, high unemployment and high rates of inflation are characteristics
of …
A stagflation
B inflation
C hyperinflation
D deflation
1.1.4 The South African Reserve Bank is responsible for implementing … policy.
A fiscal
B budget
C monetary
D foreign trade
1.1.5 The institution that publishes the consumer price index on a monthly basis is …
A Development Bank
B the Department of Tourism.
C the South African Revenue Services
D Statistics South Africa.
1.1.7 When the economy is experiencing a low growth, high unemployment and high in-
flation, it is called …
A administered price.
B stagflation
C hyperinflation.
D producer price index.
1.1.10 The ratio of the GDP at current prices to the GDP at constant prices is called the
… GDP deflator
A explicit
B implicit
C constant
D inflation
(10 x 2) (20)
COLUMN A COLUMN B
1.2.1 Consumer price index A increase in output with the same factor
inputs
1.2.2 Producer price index B prices of goods and services that are
set by the government
1.3 Provide the economic term/concept for each of the following descriptions.
Write only the term/concept next to the question number. No abbreviations,
acronyms or examples will be accepted.
1.3.1 When consumers gain access to large amounts of credit which enable them to buy
more goods and services, it refers to … inflation.
1.3.2 The CPI is constructed and calculated by … the South African Development Bank.
1.3.3 The prices are set by government or controlled by government through appointed
authorities.
1.3.4 Prices of goods and services that continuously decrease over a long period of
time.
1.3.5 Monetary policy approach used by the SARB to keep price changes within 3–6%.
SECTION B
QUESTION 2:
HINT: When the question requires you to “list” or “name”, you need not write a sentence but
merely few words or a phrase. This MUST be done in bullet form. This types of questions are
applicable for 2.1.1, 3.1.1 and 4.1.1
2.1 Name any TWO Examples of fiscal measures that can be taken by the (2 x 1)
Minister of finance regarding to reduce money supply (2 x 1)
2.2 Name any TWO Examples of other measures to curb inflation (2 x 1)
2.3. List any TWO components causing relative increase in aggregate demand (2 x 1)
2.4 Name two inflation indicators. (2 x 1)
2.5 Name any TWO types of consumer inflation. (2 x 1)
2.6. Name any TWO causes of cost-push inflation. (2 x 1)
2.7 List any TWO types of inflation. (2 x 1)
2.8 Name any TWO types of producer inflation. (2 x 1)
2.9 List any TWO ways to measure inflation. (2 x 1).
2.10 Name any TWO causes of demand - pull inflation. (2 x 1)
QUESTION 3:
HINT:
These types of questions are applicable for 2.1.2, 3.1.2 and 4.1.2.
Answers must be provided in full sentences; learners must ensure that
their answer addresses the question asked
HINT: All section B questions have TWO data interpretation questions – each total 10
marks. Section B consist of Questions 2-4 not as numbered in this document
All section B questions have TWO paragraph questions, one Middle Order & ONE Higher Or-
der
QUESTION 4.1:
4.1 Study the following extract and answer the questions that follow:
INFLATION RATE
4.1.1 Identify the index used to measure South Africa's inflation rate. (1)
4.1.2 Give the main reason for the increase in the CPI inflation above. (1)
4.1.3 Briefly describe the term core inflation. (2)
4.1.4 How can the South African Reserve Bank ensure that the CPI fluctuates
within the 3%–6% band? (2)
4.1.5 Calculate the percentage change in the inflation rate between 2021 and 2022.
Show ALL calculations. (4)
4.1.6 Describe the fiscal measures that can be used to combat demand-pull
inflation. (8)
4.1.7 Distinguish between the consumer and producer price index. (8)
QUESTION 4.2:
4.2. Study the graphs below and answer the questions that follow.
4.2.1 Which ONE of the two types of inflation is the official inflation rate? (1)
4.2.2 What is the inflation target range set by the SARB? (1)
4.2.3 Briefly describe the term stagflation. (2)
4.2.4 What effect will an increase in interest rates have on the trend of the CPI curve?
(2)
4.2.5 Why is core inflation lower than the CPI? (4)
4.2.8 Advise the governor of the Reserve Bank on how monetary policy could be
used to combat inflation. (8)
4.2.9 How has South Africa’s inflation targeting-policy been beneficial to the
economy? (8)
QUESTION 4.3:
4.3. Study the following illustration and answer the questions that follow:
4.4. Study the following extract and answer the questions that follow:
4.4.1 Identify ONE item, which low-income earners may struggle to pay for, when
inflation is high. (1)
4.4.2 Which phrase in the extract implies a decrease in the quantity of goods
purchased by the consumer? (1)
4.4.3 Briefly describe the term inflation. (2)
4.4.4 How do the actions of trade unions cause inflation? (2)
4.4.5 How can government use taxation to combat inflation? (4)
4.4.7 Explain the role of price expectation on inflation in South Africa. (8)
QUESTION 4.5:
4.5. Study the following extract and answer the questions that follow:
No end in sight
While inflation has been decelerating from the high in October, economists
warn that there are risks to the upside.
Inflation has never been good to the economy. However, whenever there is
expected inflation, governments around the world take appropriate steps to
minimise inflation to a certain extent. Inflation and economic growth are paral-
lel lines and can never meet. Inflation reduces the value of money and makes
it difficult for the common people to survive. Inflation and economic growth are
incompatible because the former affects all sectors.
Source: www.fin24.com
4.5.1 What, according to the extract, is the effect of inflation on money? (1)
4.5.2 Which institution is responsible to monitor inflation in South Africa? (1)
4.5.3 Briefly describe the term stagflation. (2)
4.5.4 Explain the effect of an increase in interest rates on inflation. (2)
4.5.5 What are the negative effects of inflation on economic growth? (4)
4.6 Study the following graph and answer the questions that follow:
HINT: All section C questions have TWO questions 5 & 6 NOT like in this document. In the
examination you will need to answer only one.
ESSAY STRUCTURE
HINT: Section C – the long question, must be answered in FOUR sections: Introduction (definition),
Body (headings and full sentences in bullets) additional part and conclusion (summarising). The
mark allocations for Section C is as follows:
MARK ALLO-
STRUCTURE OF ESSAY
CATION
Introduction
The introduction is a lower-order response. Max. 2
• A good starting point would be to define the main concept related to the
question topic.
• Do not include any part of the question in your introduction.
• Do not repeat any part of the introduction in the body.
• Avoid mentioning in the introduction what you are going to discuss in the
body.
Body
Main part: Discuss in detail/In-depth discussion/Examine/Critically discuss/ An- Max. 26
alyse/Compare/Evaluate/Distinguish/Differentiate/Explain/Draw a graph and ex-
plain/Use the graph given and explain/Complete the given graph/Assess/De-
bate
A maximum of 8 marks may be allocated for headings/examples Max. 10
Additional part: Critically discuss/Evaluate/Critically evaluate/Debate/ De-
duce/Compare/Distinguish/Interpret/How? /Suggest
A maximum of 2 marks may be allocated for mere listing facts.
Conclusion
Any higher-order conclusion should include: Max. 2
• A brief summary of what has been discussed without repeating facts al-
ready mentioned
• Any opinion or value judgement on the facts discussed
• Additional support information to strengthen the discussion/analysis
• A contradictory viewpoint with motivation, if required
• Recommendations
TOTAL 40
QUESTION 5
• Discuss the consequences of inflation. (26)
• How does foreign direct investment influence inflation in the economy? (10)
[40]
QUESTION 6
• Discuss in detail the measures to combat demand-pull and/or cost-push inflation
(26)
• What is the impact of inflation on the individual taxpayer? (10)
[40]
HINT: When answering Section A – short question, it is important not to rush but to
read the questions carefully and to make sure you understand what the question is
asking. Always remember one alternative is completely wrong, one is nearly correct,
and one is totally correct. It is easy to eliminate the completely wrong answer, but if
you do not read the question carefully the nearly correct answer will also appear cor-
rect. The answer will NEVER be two options. Only ONE option is correct. Your an-
swer will immediately be marked incorrect if you write TWO options.
1.2 Various options are provided as possible answers to the following ques-
tions. Choose the answer and write only the letter (A–D) next to the question
number.
1.1.5 Activities relating individuals travelling and staying in places outside their usual
environment.
A business
B eco-tourism
C tourism
D tourist
1.1.8 Tourists who visits museums and art galleries are classified as… tourists.
A adventure
B business
C cultural
D outbound
COLUMN A COLUMN B
1.2.1 Outbound tourism A. Visits a foreign country as a destination.
1.2.2 Cultural tourism B. Ensure the quality assurance for accom-
modation and experience for visitors.
1.2.3 Indigenous knowledge
C. Visiting a country to see sites of archae-
1.2.4 The tourism Grading
ological significance, such as the Cango
Council
caves.
1.2.5 Foreign tourists
D. The culture, history and environment
1.2.6 Paleo Tourism that are unique to a specific community.
1.2.7 South African Tourism E. Day-to-day services needed to ensure
Profile the smooth functioning of a country.
1.2.8 World Heritage Sites F. The act of travellers visiting destinations
1.2.9 International tourists in order to experience and learn about a
particular traditional community.
1.2.10 Basic services
G. South African citizens travelling abroad.
H. Visiting a country to enjoy the scenery of
the nature of a country.
I. Ritual, music, artwork of a local group.
J. Residents of a country who travel out-
side the borders.
K. Places listed by UNESCO as having
special cultural, historical, scientific, or
other significance.
L. Knowledge that tourists learn about the
places that they visit in a country
.
(10x1) (10)
1.3 Provide the economic term/concept for each of the following descrip-
tions. Write only the term/concept next to the question number. No abbrevia-
tions, acronyms or examples will be accepted.
1.3.1 A place that is listed by UNESCO that has a special cultural or physical im-
portance.
1.3.2 The basic systems and structures that country needs for economic activity,
for example transport and communication.
1.3.3 This kind of infrastructure ensures that tourists can reach their destination
safely, quickly, and easily.
1.3.4 Travel for the purpose of attending conferences, congress, exhibitions, and
trade fairs.
1.3.5 A grant Programme for training and support for tourism enterprises.
SECTION B
QUESTION 2:
HINT: When the question requires you to “list” or “name,” you need not write a sen-
tence but merely few words or a phrase. This MUST be done in bullet form. These
types of questions are applicable for 2.1.1, 3.1.1 and 4.1.1
QUESTION 3:
HINT:
These types of questions are applicable for 2.1.2, 3.1.2 and 4.1.2.
Answers must be provided in full sentences; learners must ensure that
their answer addresses the question asked.
HINT: All section B questions have TWO data interpretation questions – each total
10 marks. Section B consist of Questions 2-4 not as numbered in this document.
All section B questions have TWO paragraph questions, one Middle Order & ONE
Higher Order
TYPICAL EXAM QUESTION: THESE HIGHER ORDER QUESTIONS REQUIRE
THE LEARNERS TO USE HER/ HIS CRITICAL THINIKING SKILLS.
2 Higher order questions are grounded in the content. These types
of questions test critical thinking, where candidates should be able
to apply their knowledge, through logical reasoning and also have an awareness of
their current economic climate. Content (covered by discuss/examine/describe/ ana-
lyse/explain/evaluate/compare/assess/justify/construct/calculate) can be assessed as
higher-order questions. Answers will not necessarily be found in textbooks.
QUESTION 4.
Study the Extract below and answer the questions that follow.
QUESTION 4.2:
4.2. Study the table below and answer the questions that follow.
4.3 Study the extract below and answer the questions that follow.
QUESTION 4.4
4.4. Study the cartoon below and answer the questions that follow.
HINT: All section C questions have TWO questions 5 & 6 NOT like in this document.
In the examination you will need to answer only one.
ESSAY STRUCTURE
HINT: Section C – the long question, must be answered in FOUR sections: Introduction
(definition), Body (headings and full sentences in bullets) additional part and conclusion
(summarising). The mark allocations for Section C are as follows:
MARK AL-
STRUCTURE OF ESSAY
LOCATION
Introduction
The introduction is a lower-order response. Max. 2
• A good starting point would be to define the main concept related to the
question topic.
• Do not include any part of the question in your introduction.
• Do not repeat any part of the introduction in the body.
• Avoid mentioning in the introduction what you are going to discuss in the
body.
Body
Main part: Discuss in detail/In-depth discussion/Examine/Critically discuss/ Ana- Max. 26
lyse/Compare/Evaluate/Distinguish/Differentiate/Explain/Draw a graph and ex-
plain/Use the graph given and explain/Complete the given graph/Assess/Debate
A maximum of 8 marks may be allocated for headings/examples.
Additional part: Critically discuss/Evaluate/Critically evaluate/Debate/ De- Max. 10
duce/Compare/Distinguish/Interpret/How? /Suggest
A maximum of 2 marks may be allocated for mere listing facts.
Conclusion
Any higher-order conclusion should include: Max. 2
• A summary of what has been discussed without repeating facts already men-
tioned.
• Any opinion or value judgement on the facts discussed.
• Additional support information to strengthen the discussion/analysis.
• A contradictory viewpoint with motivation, if required
• Recommendations
TOTAL 40
QUESTION 5
● Discuss in detail the effects of tourism on the South African Economy. (26)
● Evaluate the success of indigenous knowledge systems (IKS) in promoting
tourism in South Africa. (10)
QUESTION 6
• Examine the effects of tourism on the following:
• Poverty
• Employment
• Externalities (26)
• How can South Africa promote domestic tourism? (10)
HINT: When answering Section A – short question, it is important not to rush but to
read the questions carefully and to make sure you understand what the question is
asking. Always remember one alternative is completely wrong, one is nearly correct
and one is totally correct. It is easy to eliminate the completely wrong answer, but if
you do not read the question carefully the nearly correct answer will also appear cor-
rect. The answer will NEVER be two options. Only ONE option is correct. Your an-
swer will immediately be marked incorrect if you write TWO options.
1.1. Various options are provided as possible answers to the following ques-
tions. Choose the answer and write only the letter (A–D) next to the question
number.
1.1.7 Toxic chemical waste can result in a high ... rate in people
A environmental tax
B infertility
C pollution
D environmental change
1.1.8 The government can play a very important role in environmental sustainability
through its … policy
A monetary
B fiscal
C urbanisation
D international
1.1.9 The tax levied by the government on environmental polluters is known as ... tax
A Green
B Personal
C VAT
D Import
1.1.10 The variety of plant and animal life in a particular habitat is called …
A Deforestation.
B Biodiversity.
C Carbon footprint.
D Desert formation
COLUMN A COLUMN B
1.2.1 Erosion A. Waste that poses a significant threat to peo-
ple and the environment at large.
1.2.2 Conservation
B. Licences that are sold by the government to
1.2.3 Hazardous waste
business which allow them a certain quota of
1.2.4 Basel Conversion pollution.
1.2.5 Marketable permits C. Permits that can be sold on a market to other
1.2.6 Property right polluters.
SECTION B
QUESTION 2:
HINT: When the question requires you to “list” or “name”, you need not write a sen-
tence but merely few words or a phrase. This MUST be done in bullet form. These
types of questions are applicable for 2.1.1, 3.1.1 and 4.1.1
QUESTION 3:
HINT:
These types of questions are applicable for 2.1.2, 3.1.2 and 4.1.2.
Answers must be provided in full sentences; learners must ensure that
their answer addresses the question asked
HINT: All section B questions have TWO data interpretation questions – each total
10 marks. Section B consist of Questions 2-4 not as numbered in this document
All section B questions have TWO paragraph questions, one Middle Order & ONE
Higher Order
QUESTION 4.1:
Study the following illustration and answer the questions that follow:
Humans are linked to environmental landscapes within which our daily lives unfold. We
depend solely on nature for the stable climate, clean air, and food. Human activities have
made global warming and climate change a global threat, The rising sea level of Carbon
dioxide and other environmental gases have caused an increase in average global tem-
perature from 26 degrees Celsius to 32 degrees Celsius. This has caused extreme
weather patterns and other negative changes such as pollution, deforestation, and loss of
biodiversity
Source: www.byjus.com
Study the following illustration and answer the questions that follow:
Study the information below and answer the questions that follow:
4.5.9 What are the benefits of using technology in sustaining the environment? (8)
4.5.10 What role does South Africa play in alleviating the negative effects of
global warming? (8)
4.5.11 What effect does climate change have in the production of goods and services?
(8)
HINT: All section C questions have TWO questions 5 & 6 NOT like in this document.
In the examination you will need to answer only one.
ESSAY STRUCTURE
HINT: Section C – the long question, must be answered in FOUR sections: Introduction
(definition), Body (headings and full sentences in bullets) additional part and conclusion
(summarising). The mark allocations for Section C is as follows:
MARK AL-
STRUCTURE OF ESSAY
LOCATION
Introduction
The introduction is a lower-order response. Max. 2
• A good starting point would be to define the main concept related to the
question topic.
• Do not include any part of the question in your introduction.
• Do not repeat any part of the introduction in the body.
• Avoid mentioning in the introduction what you are going to discuss in the
body.
Body
Main part: Discuss in detail/In-depth discussion/Examine/Critically discuss/ Ana- Max. 26
lyse/Compare/Evaluate/Distinguish/Differentiate/Explain/Draw a graph and ex-
plain/Use the graph given and explain/Complete the given graph/Assess/Debate
A maximum of 8 marks may be allocated for headings/examples
Additional part: Critically discuss/Evaluate/Critically evaluate/Debate/ De- Max. 10
duce/Compare/Distinguish/Interpret/How? /Suggest
A maximum of 2 marks may be allocated for mere listing facts.
Conclusion
Any higher-order conclusion should include: Max. 2
• A brief summary of what has been discussed without repeating facts already
mentioned
• Any opinion or value judgement on the facts discussed
• Additional support information to strengthen the discussion/analysis
• A contradictory viewpoint with motivation, if required
• Recommendations
TOTAL 40
QUESTION 5
• Discuss in detail government measures to ensure sustainable development.
(26)
• How does South Africa use a conservation to ensure a sustainable environment?
(10)
[40]
QUESTION 6
• Discuss the major environmental problems that affect countries globally (26)
• Evaluate the success the international measures adopted to address the environ-
mental problems. (10)
[40]