Merged 20230824 0921
Merged 20230824 0921
Merged 20230824 0921
SENIOR CERTIFICATE
GRADE 12
ECONOMICS
ECONOMICS
PAPER
P1 1
MACROECONOMICS & ECONOMIC PURSUITS
NOVEMBER 2019
MARCH 2016
MARKS: 150
TIME: 2 hours
SECTION A: COMPULSORY
SECTION B: Answer TWO of the three questions.
SECTION C: Answer ONE of the two questions.
3. Number the answers correctly according to the numbering system used in this
question paper.
7. Answer the questions in full sentences and ensure that the format, content
and context of your responses comply with the cognitive requirements of the
questions.
SECTION A (COMPULSORY)
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
numbers (1.1.1 to 1.1.8) in the ANSWER BOOK, e.g. 1.1.9 D.
A downswing.
B upswing.
C depression.
D recession.
A G + I + X > S + T + M.
B G + I + X < S + T + M.
C G + I + X = S + T + M.
D S + T + M > G + I + X.
1.1.3 Indicators that change at the same time and in the same direction
as the economy changes are known as … indicators.
A leading
B lagging
C composite
D co-incident
1.1.4 Where one country can produce goods or services cheaper than
another country within a given time period it is called …
A comparative advantage.
B absolute advantage.
C terms of trade.
D free trade.
A foreign trade.
B inflation.
C money supply.
D real GDP.
A a reduction in costs.
B improving the efficiency of inputs.
C the influence on inflation and unemployment.
D improving the efficiency of markets. (8 x 2) (16)
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 numbers (1.2.1 to 1.2.8) in the
ANSWER BOOK.
COLUMN A COLUMN B
1.2.1 Leakages A estimate figures or trends in future
from facts that are known
1.2.2 Exogenous approach
B a country's export prices are
1.2.3 Human Development compared to its import prices
Index
C the removal of laws, regulations and
1.2.4 Extrapolation bylaws by government
1.2.5 Portfolio investment D independent factors that influence
business cycles and originate outside
1.2.6 Terms of trade the economy
1.2.7 Gross domestic product E a trade policy where the state
discourages the import of certain
1.2.8 Deregulation
goods and services to protect local
industries
1.3 Give ONE term for each of the following descriptions. Write only the term next
to the question numbers (1.3.1 to 1.3.6) in the ANSWER BOOK.
Abbreviations, acronyms and examples will NOT be accepted.
1.3.3 A transfer of functions and ownership from the public sector to the
private sector
1.3.6 The social indicator that relates to the size of the country's
population (6 x 1) (6)
TOTAL SECTION A: 30
SECTION B
Answer any TWO of the three questions in this section in the ANSWER BOOK.
2.1.2 Why would an increase in import tariffs benefit the South African
economy? (1 x 2) (2)
2.2 Study the information below and answer the questions that follow.
2.2.3 Briefly describe the term Medium-Term Budget Policy Statement. (2)
2.2.4 Explain the relationship between the main budget and the MTEF. (2)
2.2.5 What can the government do to solve the current financial challenges
of state-owned enterprises? (2 x 2) (4)
2.3 Study the table below and answer the questions that follow.
2.3.1 Identify the year currently being used by the Reserve Bank as a
base year. (1)
2.3.5 How will an increase in the repurchase (repo) rate affect the
economy? (2 x 2) (4)
2.4 Use the graph below to explain the impact of an increase in exports to China
on the value of the rand.
Price of yuan
in terms of rand D S
S1
R2,00
R1,40
S D
S1
0 100 150
Quantity of Chinese yuan
(4 x 2) (8)
2.5 With reference to the Phillips curve, analyse the relationship between inflation
and unemployment. (8)
[40]
3.2 Study the extract below and answer the questions that follow.
However, there are only a few trained workers able to plan, install and
maintain clean energy systems. In Sub-Saharan Africa there are only
16 000 people working in renewable energy outside South Africa. This
accounts for 0,1% of the global renewable energy workforce which impacts
globalisation.
3.2.2 Name the social indicator that includes 'access to electricity'. (1)
3.2.4 What impact will a shortage of trained workers have on global trade? (2)
3.3 Study the dialogue below and answer the questions that follow.
I feel that
government
policies have not
done much for
economic
development …
3.3.5 How will South Africa benefit in a dynamic global environment if the
NDP succeeds? (2 x 2) (4)
3.5 How can unequal standards of living related to the North-South divide
be addressed? (8)
[40]
4.1.1 Name TWO types of markets that form part of the financial system.
(2 x 1) (2)
The governments of the United Kingdom and Switzerland stated that political
commitment to honest and ethical business practices should prevail. The UK
and Switzerland, together with three other countries, account for 75% of
foreign direct investment in South Africa that might definitely affect the
balance of payments negatively.
4.2.1 Identify the country in the extract that belongs to the G8 countries. (1)
4.2.4 Why would public sector failure lead to economic instability? (2)
4.2.5 How could foreign direct investments influence the growth rate in
South Africa? (2 x 2) (4)
4.3 Study the cartoon below and answer the questions that follow.
4.4 Briefly explain the role of households and the business sector in the circular
flow model. (2 x 4) (8)
4.5 How can the monetary policy contribute to economic growth? (8)
[40]
TOTAL SECTION B: 80
SECTION C
Answer any ONE of the two questions in this section in the ANSWER BOOK.
MARK
STRUCTURE OF ESSAY
ALLOCATION
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
Additional part: Give own opinion/Critically discuss/Evaluate/Critically evaluate/
Draw a graph and explain/Use the graph given and explain/Complete the given
graph/Calculate/Deduce/Compare/Explain/Distinguish/Interpret/Briefly debate/ Max. 10
How/Suggest
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
TOTAL SECTION C: 40
GRAND TOTAL: 150
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NATIONAL
SENIOR CERTIFICATE
GRADE 12
ECONOMICS P1
NOVEMBER 2019
MARKING GUIDELINES
MARKS: 150
SECTION A (COMPULSORY)
QUESTION 1
1.1.1 B – upswing
1.1.2 A – G + I + X > S + T + M
1.1.3 D – co-incident
1.1.4 B – absolute advantage
1.1.5 A – tax revenue and tax rate
1.1.6 D – real GDP
1.1.7 C – Integrated Manufacturing Strategy
1.1.8 C – the influence on inflation and unemployment (8 x 2) (16)
1.2.4 A – Estimate figures or trends in future from facts that are known
1.2.7 G – Total value of final goods and services produced within the
boundaries of a country
TOTAL SECTION A: 30
SECTION B
Answer TWO of the three questions in this section in the ANSWER BOOK.
QUESTION 2: MACROECONOMICS
• Kitchin cycle
• Juggler cycle
• Kuznets cycle
• Kondratieff cycle (2 x 1) (2)
2.1.2 Why would an increase in import tariffs benefit the South African
economy?
15% (1)
2.2.4 Explain the relation between the main budget and the MTEF.
2.3.1 Identify the year currently being used by the Reserve Bank as a
base year.
2010 (1)
2.3.5 How will an increase in the repurchase (repo) rate affect the
economy?
2.4 Use the graph to explain the impact of an increase in exports to China
on the value of the rand.
• An increase in South Africa's exports to China will shift the supply curve
to the right (from SS to S 1 S 1 ) causing an increase in the demand for the
rand
• This will lead to an increase in the quantity supplied of yuan (from 100
units to 150 units)
• The value of the yuan will depreciate from R2,00 to R1,40 / the value of
the rand appreciated
• The situation has to be well managed, because in the long term our
appreciated currency will make our products unaffordable and exports
might decline
• The value of the rand has increased in terms of the yuan
(Accept any other correct relevant response) (Max 8) (8)
2.5 With reference to the Phillips curve, analyse the relationship between
inflation and unemployment.
• The Phillips curve shows that inflation will increase if there is less unemployment
(trade-off)
• Skills development and improved education that increases employment will create
an increased demand for goods and services leading to inflation
• A very high inflation can lead to stagflation (high inflation and high unemployment)
due to reduced demand for goods and services which will lead to less employment
• Inflation targeting (3 – 6%) will prevent stagflation (high unemployment)
• The demand for goods and services can be stimulated without increased
employment
• The worker (consumer) might make use of extended credit facilities to enjoy the
same standard of living when they experience price increases
• Various external factors may influence job creation in a country i.e. a tendency to
import final goods which might improve the choice of consumers without solving
the problem of unemployment
• The depreciation of the rand might lead to price hikes, not necessarily lower
unemployment
• Capital intensive production processes would not necessarily contribute to further
job creation (Max 8)
(Accept any other correct relevant higher order response)
[40]
Services (1)
RDP (1)
• Eliminating unemployment
• Eradicate poverty
(Accept any other correct relevant response) (1)
3.5 How can unequal standards of living related to the North-South divide
be addressed?
4.1.1 Name TWO types of markets that form part of the financial
system.
• Money
• Capital
• Foreign exchange (2 x 1) (2)
4.2.1 Identify the country in the extract that belongs to the G8-
countries.
HOUSEHOLDS:
• Firms purchase the factors of production from the household in the factor
market
• Firms use the factors of production to produce goods and services
• Businesses sell goods and services to households, government and the
foreign sector
• Businesses receive an income from the other three participants
(households, government and foreign sector)
• Businesses act as buyers in the factor market and sellers in the goods
market with profit as their aim (Max 4)
(Accept any other correct relevant response) (2 x 4) (8)
SECTION C
QUESTION 5: MACROECONOMICS
INTRODUCTION
Regional development refers to policies which are aimed at increasing the economic
livelihood of specific areas or regions
(Any other correct relevant introduction) (Max 2)
• They are purpose-built industrial estates, physically enclosed and linked to a port
or airport
• They are in duty-free import areas
• This strategy was aimed at making exports internationally competitive
• They focus on creating jobs and promoting exports
• Goods produced in these zones should be exported to foreign countries
• As services are provided from outside, the economy in the areas should be
stimulated
• An IDZ offers a world-class infrastructure, enjoys a zero rate of VAT on supplies
from South African sources and reduced taxation on some products
IDZs were located to benefit:
- investing companies through support
- access to transport for exporting purposes
- products produced for export by wavering import duties
- skills training for employees by providing subsidies
Each IDZ is designed to:
- provide location for establishment of strategic investments
- promote and develop links between domestic and zone-based industries
- enable exploitation of resource-intensive industries
SPECIAL ECONOMIC ZONES
• It creates a basis for a broader range of industrial parks and provide economic
infrastructure to promote employment
• Geographically demarcated area where specific economic activities have been
identified to be developed
• These areas may enjoy incentives such as tax relief and support systems to
promote industrial development
• There are plans to reduce tax to 15% as an incentive to attract new industries
• The aim of creating SEZ is to attract:
- only new business
- business which are developing a new product line
- Business which are expanding their volume
• The DTI has indicated that the existing IDZs where special tax incentives do not
apply, would be graduated into SEZs
CORRIDORS
• Corridors in South Africa are spatial areas that offer specific advantages to mining,
manufacturing and other businesses
• The advantages also include the presence of existing infrastructure and the
specialisation of products or services
• These corridors are development areas within South Africa and are the
development priorities of all development agencies
• The DTI provides help in support of the development corridors. e.g. the Maputo
corridor, that starts in Gauteng and extends through Mpumalanga to the Maputo
port, offers opportunity to the transport industry
(Accept any other correct relevant response) (Max 26)
ADDITIONAL PART
The government has promoted industrial development by:
• implementing GEAR which focused on promoting growth in the economy, although
it hasn't been successful because real GDP growth is not at the expected
levels
• the New Growth Path (NGP) which focused on improving certain skills which would
attract global business and ensure long term economic growth, has not seen a
decrease in the number of people which are unemployed
• the National Industrial Policy Framework (NIPF) as an appropriate policy within
best practice, although hindered by the unemployment problem
• spending huge amounts on improvement of infrastructure through the SDI's for
example maintaining, improving, expanding infrastructure: access to suitable,
modern, reliable, effective, efficient infrastructure and services, the creation of jobs
was not enough to reduce unemployment
• implementing IDZ's, although some IDZ's growth have been slow due to incentives
not being attractive enough to establish businesses
• introducing the SEZ's to address the negative elements of the IDZ's by providing
additional incentives
• promoting Small Business Development that has been reasonably successful, due
to the improved access to finance and capital which has promoted
entrepreneurship as well as efficient and competitive markets
• promoting regional development although it is still uneven because it is still
concentrated in the four major metropoles
(Accept any other correct relevant response) (Max 10)
CONCLUSION
It is the ultimate responsibility of the government to ensure that proper and effective
policies and policy direction is given on the entire development of the country. Every
area in the country should be considered for development and growth. The industrial
sector is earmarked as safety net for millions of jobless people in rural areas
(Accept any other correct relevant response) (Max 2) (40)
TOTAL SECTION C: 40
GRAND TOTAL: 150
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