Economics - EXEMPLAR 2007 - Gr 11 - Mpumalanga

1 Economics DoE/ EXEMPLAR 2007 NSC Copyright reserved Please turn over 1 MARKS: 300 TIME: 3 hours This question paper consists of 17 pages. Economics EXEMPLAR 2007 NATIONAL SENIOR CERTIFICATEGRADE 11 Economics DoE/ EXEMPLAR 2007 NSC Copyright reserved Please turn over 2 INSTRUCTIONS AND INFORMATION 1. Answer SIX questions as follows in your answer book: SECTION A: COMPULSORY SECTION B: Answer any THREE questions SECTION C: Answer any TWO questions 2. Write the question number above each answer. 3. Number the answers correctly according to the numbering system used in this question paper. 4. Read the questions carefully and start each question on a NEW page. 5. Leave 2 - 3 lines between subsections of questions. 6. Answer the questions in full sentences and ensure that the format and content of your answer comply with the cognitive requirements of the question.

2 7. Write neatly and legibly. 8. Answer only the required number of questions. Answers in excess of this number will NOT be marked. 9. 10. Use only black or blue ink. Answers in pencil will NOT be marked. Non-programmable calculators may be used. Economics DoE/ EXEMPLAR 2007 NSC Copyright reserved Please turn over 3 SECTION A (COMPULSORY) (LO1 LO4) QUESTION 1 Various possible options are provided as answers to the following questions. Choose the correct answer and write only the letter (A - C) next to the ques-tion number ( - ) in the answer book. A person who is innovative and who takes initiative in setting up a business is known as a/an .. A B C producer. business man. entrepreneur. Which ONE of the following models indicates the flow of goods and services as well as the factors of production?

3 A B C economic cycle Circular flow economic flow The value of goods and services produced within the borders of a country is known as the .. A B C gross national product. gross national income. gross domestic product. Profit maximising occurs when marginal revenue is equal to .. cost. A B C marginal average total The satisfaction gained from the last economic good consumed is called .. utility. A B C total marginal average The inverse relationship between product price and quantity demanded, is known as the law of .. A B C demand.

4 Diminishing returns. diminishing marginal utility. Economics DoE/ EXEMPLAR 2007 NSC Copyright reserved Please turn over 4 Money, investments and shares are normally referred to as .. wealth. A B C social financial physical Which ONE of the following will NOT be associated with the measuring of income inequality? A B C Lorenz curve Gini coefficient Elasticity coefficient A very popular method to redistribute wealth through fiscal policy is by implementing .. A B C the monetary policy. price fixing. taxation. economic growth is measured and expressed in terms of the .. A B C nominal GDP.

5 Real GDP. real expenditure. The International Monetary Fund (IMF) distinguishes between THREE groups of countries in measuring development. Which ONE does NOT fit the criteria of the IMF? A B C First-world countries Developing countries Transitional economies Which ONE of the following transactions can NOT be done at an ATM? A B C Coin deposits Cash withdrawals Interaccount transfers (12 x 2) (24) Economics DoE/ EXEMPLAR 2007 NSC Copyright reserved Please turn over 5 Choose from the list the word/term that best matches each statement. Write only the word next to the question number ( - ) in the answer book. poverty trap; centralised; monopoly; decentralised; money market; repo rate; capital market; interest rate; oligopoly; relative poverty When people are poor in comparison to others in the society A market composed of only a small number of dominant producers The rate at which the Reserve Bank is willing to extend credit to banks A market where long-term funds are traded The economic system used in South Africa (5 x 2) (10) Choose a appropriate description from COLUMN B to match the concept in COLUMN A.

6 Write only the letter (A - J) of your choice next to the question number ( - ) in the answer book. COLUMN A COLUMN B Complementary Intermediate goods economic development An economic good Economically marginalised Inflation targeting Infrastructure World Bank A B C D E F G H I J initiated a debt relief programme for indebted poor countries a figure between 3 6% a motorcar parts used in the manufacturing of a motorcar petrol and a motorcar the Gautrain Rapid Rail Link the standard of living of most South Africans increased over the past five years people discriminated against, the handicapped and the inexperienced butter and margarine increased productive capacity (8 x 2) (16) TOTAL SECTION A: 50 Economics DoE/ EXEMPLAR 2007 NSC Copyright reserved Please turn over 6 SECTION B Answer any THREE questions from this section in the answer book.

7 QUESTION 2 (LO1 MACRO- Economics , AS1-AS4) Answer the following questions appropriately. Choose the correct word/term between brackets. Write only the correct word next to the question number ( - ) in the answer book. Money invested in producing machines and buildings to be used in the production process, is known as (savings/capital). If a country is a net exporter, its currency will tend to (appreciate/ depreciate) in value. To convert basic prices to market prices, taxes are added and (subsidies/inflation) subtracted. Most of the income of households is spent on (durable/non-durable) goods. (4 x 2) (8) List any THREE factors indicating the economic importance of an entrepreneur. (3 x 2) (6) Economics DoE/ EXEMPLAR 2007 NSC Copyright reserved Please turn over 7 Study the following information and answer the questions that follow: CHALLENGES TO AGRICULTURE IN THE GLOBALISED ECONOMY Falling agricultural commodity prices and the need to be internationally competitive have led to a significant decline in the relative share of agricultural employees in the labour market.

8 % of total employment: 1950 2010 Developed countries .. 80% < 20% Developing countries .. 40% 3% What happened to the agricultural contribution worldwide since 1980? Link the above-mentioned industries to the THREE economic sectors. What, in your opinion, can be done to secure job opportunities in the agricultural sector? Which sector contributed most to low-income countries in 2004? Give figures. Determine the percentage increase in the service industry in high-income countries from 1980 to 2004. Show calculations. (3) (6) (3) (4) (4) Explain the following equation: GDP(E) = C + G + I (X M) (8 x 2)(16) [50] US 2006 The deThe de--industrialisationindustrialisationof the world of the world economyeconomy0%20%40%60%80%100%Wo r ld1980Wo r l d2004 Highincome1980 Highincome2004 Middleincome1980 Middleincome2004 Lowincome1980 Lowincome2004 ServicesIndustryAgricultureWorld Bank, 2006 Economics DoE/ EXEMPLAR 2007 NSC Copyright reserved Please turn over 8 QUESTION 3 (LO2 MICRO- Economics , AS1-AS3) Answer the following questions appropriately: Choose the correct word between brackets.

9 Write only the correct word/term next to the question number ( - ) in the answer book. A perfect competitor is a price-(taker/searcher). If two products are jointly supplied and the price of one product increases, the supply of the other will (decrease/increase). Total cost equals fixed cost plus (average/variable) cost. Relative prices are also known as (real/nominal) prices. (4 x 2) (8) List any THREE characteristics of a perfect market. (3 x 2) (6) Study the following graphs and answer the questions that follow: 60 50 40 30 20 10 Name the different forms of price elasticity depicted in A, B and C. Distinguish, in table form, between B and D as forms of price elasticity.

10 (6) (6) Price 60 D 50 P1 40 P2 30 20 10 D Q1 Q2 0 25 50 60 Quantity demanded Price D 60 P1 50 P2 40 30 20 10 D Q1 Q2 0 10 20 30 40 50 Quantity demanded Price D 60 P1 50 P2