NATIONAL SENIOR CERTIFICATE

BOHLABELA DISTRICT

GRADE 12

ECONOMICS
PROJECT
18 MAY 2023

MARKS: 50
TIME: 1 HOUR

This question paper consists of 3 pages.

Economics/project 2 Bohlabela district/2023
Grade 12
INSTRUCTIONS AND INFORMATION

1. This task must be carried out in class under supervised conditions.

2. Answer all questions

3. LEARNERS MUST BRING THEIR REFERENCE MATERIAL TO CLASS TO

CARRY OUT THE TASK (OPEN BOOK TASK)

4. Number the answers correctly according to the numbering system used in this
question paper.

5. Use only black or blue ink.

QUESTION 1

1.1. Study the graph below and answer the questions that follows

1.1.1 Identify the shut-down point from the graph above. (2)

1.1.2 Name the curve depicted by letter A (2)

1.1.3 Briefly describe the concept shut-down point (2)

1.1.4 What effect does the entrance of new firms have on the perfect market? (2)

1.2. Briefly discuss any four functions of the competition commission as per
the Competition Act of 1998. (8)

1.3. Evaluate the impact of brand loyalty in the monopolistic market structure (8)
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Economics/project 3 Bohlabela district/2023
Grade 12
QUESTION 2

2.1. Study the extract below and answer the questions that follows

MARKET FAILURE

Due to market failure South African government intervene in the economy to reduce the
effects. One of the ways of intervention is through Direct control using legislation (law and
policies) on demerit goods. Obtain as much information about regulations regarding
alcohol in South Africa and bring it to class to answer the following questions.

2.1.1. Give the name of the government ACT that governs the production and
distribution of alcohol in South Africa. (2)

2.1.2 What is the tax that is charged on demerit goods? (2)

2.1.3 How much money was the increase in the price of a 340-milliliter beer can
as announced during the 2023 budget speech? (2)

2.1.4 The price of a 750 ml of whisky bottle was increased by R3, 90 in 2023. If
the price in 2022 was R170, what is the percentage increase represented by
R3, 90? Show all calculations. (4)

2.2. Draw and explain a well-labeled graph on how the government uses taxation
to reduce demerit goods. (8)

2.3. Discuss briefly any five measures implemented by the government to reduce
alcohol consumption as recommended in the National Liquor Policy.
(4 x 2) (8)
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TOTAL MARKS: 50