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ECONOMIC AND MANAGEMENT SCIENCES GRADE 09

ASSIGNMENT: Economic systems and Circular flow
RETURN DATE: 03 March 2021 MARKS: 50
QUESTION 1 [10]
1.1 Name 2 factors of production. (2)
1.2 Which participant in the circular flow owns the factors of production? (2)
1.3 Name the market where households (customers) buy goods and services? (2)
1.4 In the factor market: (a) who is the buyer? (2)
(b) what are they buying? (2)

QUESTION 2 [10]
Study the circular flow diagram below and write down the missing information. First write the
alphabet of the missing information then the answer. E.g. (a) factor market (10)
SELECT FROM THE FOLLOWING: - income from goods and services; - factors of production;
-income from factors of production; -goods market; -goods and services.

1
Factor market
 (c)
Factors of (b)
production
Payment for factors
of production

Payment for
goods and
(d) services (e)
Goods and
services

(a)

QUESTION 3 [18]
3.1 Read the following statements and fill in the missing words in each statements. Underline
your answer in the statement.
Select your answers from the following: -planned economy, - mixed economy, - market, -
labour, -payment for goods and services.
(a) Buyers and sellers meet in a _______________ with an aim to trade. (2)
(b) Buyi is working as a baker for a bakery business in her area and the factor of
production that Buyi provides is ___________ for the bakery business. (2)
(c) In the ________________ government controls production , consumption and
distribution. (2)
(d) Andiswa went to buy bread from a tuck shop and the money she exchanged for bread

2
 is called ___________. (2)
(e) In __________________ the government and businesses control resources. (2)
3.2 Name 2 disadvantages of the planned economy. (2)
3.3 Define the term closed economy. (2)
3.4 Define the term global economy. (2)
3.5 Explain the economic problem. (2)

Question 4 [12]
4.1 ARTICLE 1: The economy of Cuba is dominated by government owned businesses, the
government owns most industries and the labour force is mostly employed by the
government. Some university students were singing: “At Cuba education is free”. The
government takes care of the welfare of citizens including giving them free education.
ARTICLE 2: - South African economy has freedom for private businesses, combined with
controlled economic planning and government laws.
4.1.1 Name the economic system used in Cuba. (2)
4.1.2 Name the economic system used in South Africa. (2)
4.1.3 Which country between Cuba and South Africa is unlikely to have wage strikes? Explain
your answer by referring to the economic system the country uses. (4)
4.1.4 In which country between South Africa and Cuba are customers likely to be met with
rudeness in the shops or wait too long for food in restaurants? Motivate your answer by
referring to the economic system the country uses. (4)

SENZOKWETHU SECONDARY SCHOOL

ECONOMIC AND MANAGEMENT SCIENCES GRADE 09 SOLUTION
MARKS: 50 DATE: 03 MARCH 2021
QUESTION 1 [10]

1.1 Labour
Capital
Land
Entrepreneurship (any two) (2)

1.2 Households / customers (2)

1.3 Goods market  (2)
1.4 (a) Businesses (2)

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 (b) Factors of production (2)

QUESTION 2 [10]

(a) goods market (2)

(b) income from factors of production (2)
(c) factors of production (2)
(d) income from goods and services (2)
(e) goods and services (2)
QUESTION 3 [18]

3.1 (a) market (2)

(b) labour (2)

(c) planned/command/directed economy (2)
(d) payment for goods and services (2)
(e) mixed economy (2)
3.2 (a) It can limit economic growth (1)
(b) There is no freedom of choice (1)
(any valid two)
3.3 Closed Economy is an economy that does not trade or interact with other
economies at all.  (2)
3.4 Global economy is the economy of the world formed by interlinked national
economies that all affect each other.  (2)
3.5 Economic problem is that there are endless wants and limited resources to
meet those wants.  (2)

QUESTION 4 [12]
4.1.1 Planned economy (2)
4.1.2 Mixed economy (2)
4.1.3 Cuba;  because in a planned economy the public does not have rights or
democracy. (4)
4.1.4 Cuba;  because workers have no incentives to excel / …because the shops
and restuarants are owned by government.  (4)