economics grade 11 paper 1 macroeconomics and economic …

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ECONOMICS GRADE 11

PAPER 1

MACROECONOMICS

AND

ECONOMIC PURSUIT

REVISION RESOURCE PACK

2019

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2019 ECONOMICS GRADE 11 P1 REVISIONAL ACTIVITIES

SECTION A ACTIVITY 1 2019 Mopani East Mid-Year

1.1 . Various options are provided as possible answers to the following questions.

Choose the correct answer and write only the letter (A – D) of your answer next to

the question number (1.1.1 – 1.1.8) in the ANSWER BOOK.

1.1.1 Economically marginalised groups include

A Women and physically challenged people.

B Police and soldiers.

C Black and white people.

D Teachers and nurses.

1.1.2 A unique feature of this factor of production is that it is fixed and can’t

move from one place to another.

A Capital

B Labour

C Land

D Entrepreneurship

1.1.3 The South African workforce is made up of workers between the ages of…

A 15 – 48.

B 21 – 50.

C 15 – 64.

D 21 – 60.

1.1.4 To convert basic prices to market prices, taxes on products must be

A Deducted.

B Added.

C Multiplied.

D Ignored.

1.1.5 The budget speech is presented by the ...

A President.

B Minister of Trade and Industry.

C Governor of SARB.

D Minister of Finance.

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1.1.6 GDP per capita measures the economic … of a country.

A Development

B Growth

C Equality

D Stability

1.1.7 Large public corporations or business entities in the public sector are

known as…

A Corporates.

B Public companies.

C Private Companies.

D Parastatals.

1.1.8 The model which indicates the flow of goods and services as well as the

factors of production, is known as the...

A Economic cycle.

B Monetary flow.

C Circular flow.

D Business cycle.

ACTIVITY 2 2018 Provincial November 2.1. Various options are provided as possible answers to the following questions.

Choose the answer and write only the letter (A –C) next to the question number (1.1.1-1.1.8) in the ANSWER BOOK, e.g. 1.1.8 C

1.1.1 Remuneration of minerals rights is…

A. wages B. surplus C. rent D. royalties

1.1.2 When flour is used as an input in the production of cake, it is/an…

A final good B capital good C intermediate good D consumer goods

1.1.3 The rich, industrialised nations of the world is called…

A least developed countries B poor countries C first world countries D second world countries

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1.1.7 An index that shows the degree of inequality in the distribution of income is … A lorenz curve B gini coefficient C laffer curve D gini curve

1.1.8 The value of money in South Africa is stabilised by. A the monetary policy of the SARB. B fiscal policy of the treasury C monetary and fiscal policy D employment policy (8 x 2) (16)

ACTIVITY 3 2018 Vhembe Mid-year 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 – 1.1.8) in the ANSWETR BOOK, e.g. 1.1.6 C

1.1.1. The factor of production that combines other factors of production is … A. Entrepreneurship B. Land C. Capital D. Land

1.1.2. If an individual supplies his land on the factor market, he/she is entitled to get …

as a reward A. Economic rent B. Wage/salary C. Interest D. Profit

1.1.3. The man made physical goods used to produce other goods and services is

called … A. Land B. Capital C. Labour D. Entrepreneurship

1.1.4. Factory buildings are examples of … capital

A. Fixed B. Working C. Floating D. Financial

1.1.5. An alternative concept for Gross Domestic Product is …

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A. Gross National Product B. Gross Value Added C. Gross National Income D. Gross National Expenditure

1.1.6. Which basic economic questions are answered by an economic system?

A. What to produce, How to produce and where to produce? B. What to produce, How to produce and for whom to produce? C. Where to produce, How to produce and for whom to produce? D. When to produce, How to produce and Where to produce?

1.1.7. A state-owned entity in the secondary and tertiary sector which produce

approximately 90% of electricity is … A. Denel B. Transnet C. SABC D. Eskom

1.1.8. Another name of the centrally-planned economic system is …

A. Capitalism B. Traditional economy C. Communism D. Free market (8x2) (16)

ACTIVITY 4 2014 Provincial November 1.1 Various options are provided as answers to the following questions. Write

onlythe letters (A-C) of the correct answer next to the question numbers (1.1.1 – 1.1.8) in the answer book. 1.1.1 When capital stock is increased at the same rate as the increase in labour,

it is called ... A. interest. B. capital deepening. C. capital widening.

1.1.2 Another concept for Gross Domestic Product is … A. Gross Value Added. B. Value Added Tax. C. Gross National Product.

1.1.3 An economy where resources are allocated bygovernment is known as a …

economy.

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A. market B. centrally planned C. mixed

1.1.4 The sector facilitating the flow of goods and services from producers to consumers is called the … sector.

A. primary B. secondary C. tertiary

1.1.5 The percentage of people in a country who can read and write is known as the … rate. A. illiteracy B. developmental C. literacy

1.1.6 The way in which income earned is divided among economic units is called income … A. inequality. B. distribution. C. equality.

1.1.7 A graphic presentation of the cumulative distribution of income in a country is called the …

A. Gini curve. B. Gini coefficient. C. Lorenz curve

1.1.8 To convert Gross Value Added at basic prices to GDP at market prices … A. Taxes should be added and subsidies subtracted. B. Subsidies should be added and taxes subtracted. C. Subsidies and taxes should be added. (8 x 2)(16)

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ACTIVITY 5 2017 Vhembe Mid-Year 1.2 Various options are provided as possible answers to the following questions.

Choose the answer and write only the letter (A –C) next to the question number (1.1.1-1.1.8) in the ANSWER BOOK, e.g. 1.1.9 C

1.2.1 Enterprises engaged in similar activities are referred to as … A. sectors B. businesses C. industries

1.2.2 A country’s state of economic development is disclosed by its economic …

A. independence B. activities C. structure

1.2.3 Money paid for the use of money is called

A. interest B. tax C. rent

1.2.4 One of the advantages of a centrally planned economy is ….

A. choice B. innovation C. full employment

1.2.5 Economic goods are those that are

A. Free and plentiful B. Goods that command a price C. Essential goods and services

1.2.6 The example of a renewable resource is ………………….

A. Gold B. Coal C. Water

1.2.7 One of the most important social long-term investments a country can make is

investment in … A. health B. education C. infrastructure

1.2.8 Transport, education and accommodation are grouped under….. sector.

A. Tertiary B. Secondary C. Primary

(8) X (2) = (16)

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ACTIVITY 6 2019 Capricorn South Mid-Year

1.1. Various options are provided as answers to the following questions. Write only

the letters (A-C) of the correct answer next to the question numbers.(1.1.1- 1.1.8)

in the answer book.( e.g. 1.1.9. E)

1.1.1 ... , such as a forest, mineral deposit, or water is found in nature and is

necessary or useful to humans.

A. Human resources

B. Labour

C. Natural resources

D. Capital

1.1.2. Goods which are used by the business to produce other goods are called ….

A. Final goods

B. Durable goods

C. Intermediate goods

D. Consumable goods.

1.1.3. Businesses tend to specialize in producing products that yield the highest

profits.

A. Capitalism

B. Socialism.

C. Mixed economy

D. Feudalism.

1.1.4. The ability of South African businesses to match the price and quality of other

nation`s outputs

A. International competition.

B. International trade.

C. Trade liberation.

D. Free trade

1.1.5. … sector involves the manufacturing of goods from different raw materials,

example, construction.

A. Primary

B. Secondary

C. Tertiary

D. Technology

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1.1.6. … promotes human resources for development of black people through

mentorships, leaderships and internships.

A. GEAR.

B. BBBEE.

C. ANC.

D. Empowerment

1.1.7. … create wealth by using savings and borrowed money to buy capital goods

thereby paying interest to their lenders.

A. Capital.

B. Entrepreneurs.

C. Labour

D. Foreigners.

1.1.8. The spending by the business in the circular flow is known as the … spending.

A. government

B. investment

C. Business

D. Consumer.

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ACTIVITY 7 2019 Mopani East Mid-Year

1.2 Choose a description from COLUMN B that matches an item in COLUMN A. Write only the letter (A – H) next to the question number (1.2.1 – 1.2.8) in the ANSWER BOOK.

COLUMN A COLUMN B

1.2.1 Centrally planned economy 1.2.2 Capital goods 1.2.3 Non-renewable resources 1.2.4 Include tax and subsidies on production 1.2.5 SARB 1.2.6 Secondary sector 1.2.7 GDE 1.2.8 Infrastructure

A The current price at which an item or service may be bought or sold B GDP(I) @ basic prices C C + I + G D The government owns all the factors of production E Communication, transport and energy F Goods that are used to produce other goods G Publishes the GDP figures H Processing raw materials into final products I Resources like minerals and land

(8x1) [8]

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ACTIVITY 8 2018 Provincial November

1.2 Choose a description from COLUMN B that matches an item in COLUMN A.

Write only the letter (A –I) next to the question number (1.2.1 – 1.2.8) in the ANSWER BOOK.

COLUMN A COLUMN B

1.2.1 1.2.2 1.2.3 1.2.4 1.2.5 1.2.6 1.2.7 1.2.8

Gross Fixed Capital Formation

Productivity Economic freedom Central bank Aquaculture Structural unemployment Communal Wealth Empowerment

A B C D E F G H I

Lender of the last resort The farming of sea and fresh water plants and animals for human consumption. It is caused by basic changes in the overall economy The total value of capital goods and services owned by a community. The ability of a person to make choices about his/her own life The relationship between input and output To be able to prosper in a country without interference by the state. The monetary authority of a country An increase in the country’s capital stock

(8 x 1) (8)

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ACTIVITY 9 2018 Vhembe Mid-Year

1.2. Choose a description from COLUMN B that matches an item in COLUMN A. Write only the letter (A-J) next to the question number (1.2.1 – 1.2.8) in the ANSWER BOOK e.g. 1.2.3 J

COLUMN A COLUMN B

1.2.1. Capital widening

1.2.2. Autonomous consumption

1.2.3. Dual economy 1.2.4. Primary sector 1.2.5. Infrastructure 1.2.6. Intermediate goods 1.2.7. Gross domestic expenditure 1.2.8. Empowerment

A. The existence of two separate economic sections within one country

B. When a country’s capital increases at a rate equal to the increase in the rate of the workforce

C. Is not affected by the level of income

D. Used in the production of final goods

E. Measures spending taking place within the borders of South Africa

F. The ability of a person to make choices about his /her own life

G. Measures income received by owners of factors of production in South Africa

H. Basic structures and facilities for the operation of a society or business

I. Extract raw materials from nature J. Transform raw materials into final

goods

(8x1) (8)

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ACTIVITY 10 2014 Provincial November 1.2 Choose the description from Column B that matches an item in Column A. Write

only write the letters (A – I) next to the question numbers (1.2.1 – 1.2.8) in the answer book.

COLUMN A COLUMN B

1.2.1Central bank A.Production in the agricultural field

1.2.2GEAR B. Something that is generally acceptable and serves as a medium of exchange

1.2.3Corruption C. A study on the uniqueculture of a society

1.2.4Economic structure D.All business enterprises that produce a similar type of good or service.

1.2.5Money E. A lack in the satisfaction of basic human needs such as food

1.2.6Primary sector F.Dishonesty and abuse of power for personal gain

1.2.7Industry G. The arrangement ofthe different activities in the sectors

1.2.8Indigenous knowledge

H. The monetary authority of a country

I.The macroeconomic strategy of South Africa

(8 x 1) (8)

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1.1 Choose the description from Column B that matches an item in Column A. Only write the letter (A – K) next to the question number (1.2.1 – 1.2.8) in the ANSWER BOOK.

COLUMN A COLUMN B

1.2.1 Household A. Occurs when the amount of capital stock per worker is increased.

1.2.2 Infrastructure B. The human effort that goes into the production of goods and services with the aim of receiving a reward

1.2.3 Market economy

C. Stock of capital assets of households, representing money earned and saved at some point of time.

1.2.4 Labour D. participants in the economy owning factors of production

1.2.5 Dumping E. Measuring the contribution of a factor of production more than once.

1.2.6Double counting F. Free enterprise system.

1.2.7 Wealth G. When a country exports its excess products to another country at a selling price much below than that of the country they are being exported to.

1.2.8 Capital widening

H. Services committed to the pursuits of social welfare, social change and social justice for improved living condition.

I. The economic goods and services provided by the state to assist the economy, e.g. Roads and harbours.

(8 X 1 = 8)

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1.2 Choose a description from COLUMN B that matches an item in COLUMN A.

Write only the letter (A-I)next to the question (1.2.1-1.2.8)in the ANSWER BOOK.

COLOUMN A COLOUMN B

1.2.1. Non-durable goods 1.2.2. Tertiary sector 1.2.3.Centrally planned 1.2.4. Labour 1.2.5. Capital goods 1.2.6. Economic services 1.2.7. Infrastructure 1.2.8. Gross Domestic Product.(GDP)

A. Goods which the business buy in order to produce final goods

B. Includes wide-reaching road, rail and air links, together with energy and communication

C. Total value of all final goods and services produced within the boundaries of a country in a period of time.

D. Total number of all goods and services sold within the boundaries of a country

E. The government has full control over the resources and factors of production

F. Goods which are used up at once. G. Goods that last for a short period of time. H. Mental and physical efforts of people that are used

in the production of goods and services with the aim of getting remuneration.

I. The service industry of the economy as it includes a large variety of services.

J. Associated with regulating and operating the economy and the business sector more efficiently.

(8x1)(8)

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ACTIVTY 13 2019 Mopani East Mid-Year 1.3 Give ONE term for each of the following descriptions. Write only the term next to the

question number (1.3.1 – 1.3.6) in the ANSWER BOOK. Abbreviations, acronyms

and examples will NOT be accepted.

1.3.1 Compensation of employees, plus net operating surplus, plus consumption on

fixed capital.

1.3.2 This method is the value of final output produced by the three sectors of the

economy.

1.3.3 The value of the final output paid by consumers is called.... prices.

1.3.4. The money spent by the various government departments on goods and services

that provide benefits to society.

1.3.4 Goods that are not yet ready to be sold to the final consumer

1.3.6 The process whereby the state takes over privately owned enterprises (6x1) (6)


1.3 Identify the concept described in each of the following statements. Write only the term next to the question number (1.3.1 – 1.3.6) in the ANSWER BOOK.

1.3.1 The rate at which banks borrow funds from the Reserve Bank.

1.3.2 Industries that distribute goods and services.

1.3.3 Consumer goods which can last for longer period of time.

1.3.4 Resources that are scarce and that people are willing to pay for.

1.3.5 Native or belonging to a place, unique to a certain culture/society.

1.3.6 Payment by the government to redistribute income in the market

system. (6 x 1)

(6)

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ACTIVITY 15 2018 Vhembe Mid-Year 1.3. Identify the concept described in each of the following statements. Write only the

term next to the question number (1.3.1 – 1.3.6) in the ANSWER BOOK.

1.3.1. The skills, knowledge and health of workers 1.3.2. The decrease in the value of an asset due to wear and tear 1.3.3. Goods and services that ready for consumption by the economic participants 1.3.4. Method of calculating Gross Domestic Product which add up the value of all final

goods and services produced in the country by the three economic sectors 1.3.5. Dishonesty and abuse of power for personal gain 1.3.6. The purchase and acquisition of goods and services ACTIVITY 16 2014 Provincial November 1.3 Determine the term / concept for each of the following descriptions. Write only

the correct term/concept next to the question numbers (1.3.1 – 1.3 6)in the answer book.

1.3.1 Total expenditure on all kinds on final goods and services by the permanent residents of the country. 1.3.3 Goods or services are directly exchanged for other goods or services without using money. 1.3.4 Paid managerial entrepreneurs. 1.3.5 The use of goods and services to satisfy needs. 1.3.6 Goods and services that are used as inputs for producing other goods and

services. (6 x 1) (6) ACTIVITY 17 2017 Vhembe Mid-Year 1.3 Give ONE term for each of the following descriptions. Write only the term next to

the question number (1.3.1 – 1.3.6) in the ANSWER BOOK. 1.3.1 The sector under which agriculture and mining industries fall. 1.3.2 Decrease in the value of an asset due to wear and tear. 1.3.3 An economy with both private and state sector businesses. 1.3.4 The main supplier of electrical energy in South Africa. 1.3.5 The price at which money is borrowed or saved by the public. 1.3.6 Remuneration earned by entrepreneur as a factor of production. (6 X 1 = 6)

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1.1. Give the correct term/concept for the following. Write only the word next to the

question number (1.3.1.-1.3.6.) in the ANSWER BOOK.

1.1.1. This increases if the birth rate exceeds the death rate and the effects of this

increase will be felt when children reach the working age..

1.1.2. Money saved is put away for later use.

1.1.3. The government plays a small role by providing basic services.

1.1.4. The total value of all goods and services produced by the citizens of a country

irrespective of where they are.

1.1.5. Industries based on the natural resources including agricultural, land and animal

husbandry.

1.1.6. Policy refers to the measures taken by the South African Reserve Bank.

(6x1)(6)

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SECTION B MACROECONMICS

ACTIVITY 19 2019 Mopani East Mid-Year 2.1 Answer the following questions.

2.1.1 List any TWO categories of natural resources. (2x1) (2) 2.1.2 How is GNI calculated? (1x2) (2)

2.2 Study the following cartoon and answer the questions that follow.

e

Business News, 11 May 2016 (Adapted)]

2.2.1 Which economic system can be linked to capitalism? (1x1) (1)

2.2.2 What is the key motivating factor for the existence of the economic system

depicted in the cartoon? (1x1) (1)

2.2.3 Describe the economic system named in Question 2.2.1 (1x2) (2)

2.2.4 Explain why Samuelson says that the market economy is a “great thing.(1x2)2)

2.2.5 Briefly explain disadvantages of non-governmental intervention. (2x2) (4)

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2.3 Study the following information and answer the questions that follow.

CONSOLIDATED GOVERNMENT SPENDING ACCORDING TO FUNCTION

R billion

2014/15

2015/16

2016/17

Basic education 253.8 213.7 228.8

Health 145.7 159.4 168.4

Defence, public order and safety 163.6 171.5 181.5

Post-school education and training 253.8 64.2 68.7

Economic affairs and agriculture 50.0 213.0 238.4

Human settlements and municipal infrastructure 235.7 178.2 182.6

General public services 65.1 97.5 73.7

Social protection 144.5 154.4 167.5

Allocated expenditure 1 875.3 1 251.8 1 309.6

Debt-servicing cost 114.9 120.1 147.7

Contingency reserve 3.0 6.0

Consolidated expenditure 1 252.3 1 380.9 1 463.3

[Adapted from: National Treasury Budget Highlights, February 2016]

2.3.1 Identify the planned expenditure on health in 2015/2016 and

2016/2017 respectively (2x1) (2)

2.3.2 In his 2016 budget speech, the Minister of Finance said that “personnel

spending has been curtailed and cost containment measures are

reinforced.” Provide evidence to support the Minister’s statement from the

figures above (2x1) (2)

2.3.3 Which category in the table would include the amount spent on old-age

pensions? (1x2) (2)

2.3.4 What deductions can be made about the debt-servicing costs?(1x2) (2)

2.3.5 The total government spending in 2016/17 will amount to R1 463.3

billion. Calculate the percentage of the budget that has been allocated

to basic education in 2016/17. (1x2) (2)

2.4 How are entrepreneurs rewarded for their contribution to the economy?

(4x2) (8)

2.5 Briefly discuss efficiency in the delivery of social services in South Africa.

(2x4)(8)

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3.1 Answer the following questions.

3.1.1 Give any TWO types of economic activity which constitute the economic structure of the economy (2x1) (2)

3.1.2 What does Affirmative Action mean? (1x2) (2)

3.2 Study the graph below and answer the questions that follow.

3.2.1 List TWO factors that can influence the level of rent. (2x1) (2)

3.2.2 Describe the term economic rent. (1x2) (2)

3.2.3 Explain why the supply of land is fixed. (1x2) (2)

3.2.4 Calculate the economic rent according to the graph.

Show all calculations. (2x2) (4)

Quantity

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3.3 Study the information in the table below and answer the questions that follow:

[Source: Quarterly Bulletin SARB December 2015]

3.3.1 Identify the method that was used in the above table to calculate

GDP. (1x1) (1)

3.3.2 Name any other method that can be used to calculate the

GDP. (1x1) (1)

3.3.3 Describe briefly the concept gross domestic product. (1x2) (2)

3.3.4 State ONE importance of fixed capital formation. (1x2) (2)

3.3.5 Calculate the GNI. (Calculations must be listed in table form.) (4)

3.4 Discuss reasons for the unequal distribution of income. (4x2) (8)

3.5 Tabulate the advantages of a market and a centrally planned economy

(2x4) (8)

R MILLIONS

(2014)

COMPENSATION OF EMPLOYEES

1 732 809

OTHER TAX ON PRODUCTION

71 649

SUBSIDIES ON PRODUCT

12 972

FACTOR PRIMARY INCOME FROM THE REST OF THE

WORLD

82 235

FACTOR PRIMARY INCOME TO THE REST OF THE WORLD

183 779

CONSUMPTION OF FIXED CAPITAL

522 116

TAX ON PRODUCTS

404 939

OTHER SUBSIDIES ON PRODUCTION

8 021

NET OPERATING SURPLUS

1 086 547

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4.1 Answer the following questions.

4.1.1 List TWO markets in the circular flow diagram. (2x1) (2)

4.1.2 Why will a business pay a salary or wage to a member of a

household? (1x2) (2)

4.2 Read the following article and answer the questions that follow.

OUTPUT AND WAGES LINKED TO PROSPERITY Rising labour productivity leads to higher employment, income and profits. Unfortunately, in South Africa productivity growth has performed very poorly. In the past few years it has grown at a mere 1.3 % to 1.5 %. Productivity measures how quickly a given amount of work is used to produce goods and services. In most industries in China, nominal wages now exceed those in South Africa. Productivity, more than GDP growth, is perhaps our central economic problem. It is impossible for us to become a rich country if wages do not grow significantly faster than inflation, but they cannot do so unless productivity grows far quicker. We should set a national goal to double productivity growth. We need a serious and sustained conversation about how to overcome the legacy of apartheid and the failure of our present programmes to develop skills on a large scale. We need to do all of this now, before our ability to trust and work with each other are poisoned by more years of the bad choices that low productivity imposes. Luke Jordan (PhD) in Economics

[Mail & Guardian (Business) September 24 to October 1, 2015]

4.2.1 Which factor of production is linked to productivity? (1x1) (1)

4.2.2 What is the remuneration for the above factor of production in

Question 4.2.1? (1x1) (1)

4.2.3 Why is it impossible for South Africa to become a rich country? (1x2) (2)

4.2.4 How can the quality of labour force be determined? (1x2) (2)

4.2.5 “Rising labour productivity leads to higher employment, income and profits.”

What impact will this have on the economy of South Africa? (2x2) (4)

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4.3 Study the diagram below and answer the questions that follow.

4.3.1 Give TWO examples of personal services mentioned in the pie chart above

(2x1) (2)

4.3.2 Explain the term tertiary sector. (1x2) (2)

4.3.3 Calculate the total contribution of the tertiary sector to the GDP.

(Calculations must be listed in table form.) (2)

4.3.4 Why has economic growth been driven mainly by the tertiary sector since

the early1990s? (2x2) (4)

4.4 Discuss the role of the factor market in the circular flow. (4x2) (8)

4.5 Explain the difference between final and intermediate goods. (2x4) (8)

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ACTIVITY 22 2018 Provincial November Answer TWO of the three questions from this section in the ANSWER BOOK. QUESTION 2 MACROECONOMICS 2.1 Answer the following questions

2.1.1 List TWO types of physical capital. (2 x 1) (2)

2.1.2 Explain how spending stimulate employment? (1 x 2) (2)

2.2 Study the table and answer the questions that follow

Final consumption expenditure by Households at constant prices

Consumption expenditure (R Millions) 2015 2016

Durable goods 199 450 193 218

Semi – durable goods 202 797 219 553

Non – durable goods 960 741 1 045 662

Services 1 047 413 1 119 436

TOTAL 2 410 401 2 577 869

[source: quarterly bulletin December 2017]

2.2.1 Name TWO examples of Semi – Durable goods. (2 x 1) (2)

2.2.2 Briefly explain the term “Non-Durable goods”. (2)

2.2.3 Identify the type of item on which consumers spent the largest

Portion of their income in 2016. (2)

2.2.4 Determine the percentage contribution of services to the total

consumption expenditure of households during 2016.

Show all calculations. (4)

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2.3 Study the extract below and answer the questions that follow

2.3.1 Explain the meaning of “community participation” (2)

2.3.2 Why is public participation important? (2)

2.3.3 What is the aim of public participation? (2)

2.3.4 What are the risks associated with community participation? (4)

2.4 Differentiate between market economy and centrally planned economy.(2 x 4)

(8)

2.5 Discuss the importance of labour. (8)

4.1

4.1.1 List TWO types of foreign trade. (2 x 1) (2)

4.1.2 Why are intermediate goods excluded in the GDP? (2 x 1) (2)

4.2 Study the table below and answer the following questions

4.2.1 Which method was used in the calculation of the gross domestic product (GDP) above? (1)

4.2.2 Which sector contributed most to the GDP in 2017? (1)

4.2.3 How to do you calculate GNI? (2)

4.2.4 Briefly describe the term “Gross Domestic Product” (2)

4.2.5 Why do you think the primary sector is of great importance to the country? (4)

LOCAL COMMUNITY PARTICIPATION IN LOCAL ECONOMIC

ACTIVITIES.

Community engagement is a vital part of effort to improve economic

development and benefits of projects are well documented. Decision makers

want to get a balanced understanding of community’s views. The more views

the more likely the final product will meet the most needs and address the

most concerns possible.

Community can provide new information on projects that has to be

considered. Community will get involved in a project and have sense of

ownership of it which is the key to successful project outcome.

[Source: socialpinpoint.com]

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2.1. Answer the following questions

2.1.1. List any two social benefits available to South Africans. (2 x 1) (2)

2.1.2. What is the aim of consumption? (1 x 2) (2) 2.2 Study the table and answer the question that follow.

VALUE ADDED OF SOUTH AFRICA

R MILLIONS

2015 2016 2017

Primary sector 290 998 339 734 341 114

Secondary sector 500 533 509 361 531 094

Tertiary sector 1631 831 1 785 938 1 948 054

= Gross Value Added @ Basic Price 2 423 362 2 635 033 2 820 262

+ Taxes on products 265 478 314 987 339 475

LESS subsidies on products 15 068 17 290 20 757

= Gross Value Added @ Market Price 2 673 772 2 932 730 3 138 980 Source: SARB Quarterly Bulletin March 2017

2.2.1. What method was used in the table above to determine GDP? (1)

2.2.2. Which year is currently used by the SARB as base year? (1)

2.2.3. Explain the concept “gross domestic product’’ (2) 2.2.4. How do you convert GDP@ basic prices to GDP@ market prices? (2)

2.2.5. Calculate the percentage contribution of the tertiary sector to GDP@ basic prices for 2016. (4)

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2.3. Study the cartoon below and answer the questions that follow.

2.3.1. Name the economic system represented by the countries above. (1)

2.3.2. What is the disadvantage of economic system represented above? (1)

2.3.3. Briefly explain the meaning of the Centrally Planned Economy. (2)

2.3.4. Who solves the economic problems of “What, How, for whom and How many

to produce” in the central planned economy? (2)

2.3.5. Why did some countries such as East Germany changed from centrally planned economy to mixed economy? (4)

2.4. Discuss the advantages of a mixed economy. (4 x 2) (8)

2.5. How does the government intervene in the market economy? (2 x 4) (8) [40]

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ACTIVITY 24 2018 Vhembe Mid-Year 3.1. Answer the following questions. 3.1.1. Name any two examples of final goods. (2 x 1) (2) 3.1.2. How will Xenophobia affect economic growth in the future? (1 x 2) (2) 3.2. Study the extract below and answer the questions that follow.

A market economy is very similar to a free market. The government does not control vital resources, valuable goods or any other major segment of the economy. In this way, organisations run by the people determine how the economy runs, how supply is generated, what demands are necessary, etc. No truly free market economy exists in the world. For example, while America is a capitalist nation, our government still regulates (or attempts to regulate) fair trade, government programs, moral business, monopolies, etc. The advantage to capitalism is you can have an explosive economy that is very well controlled and relatively safe. This would be contrasted to socialism, in which the government (like a command economy) controls and owns the most profitable and vital industries but allows the rest of the market to operate freely; that is, price is allowed to fluctuate freely based on supply and demand. Is you want to know how the global economy works and the role you play in it. Source: internet

3.2.1. Which country is the leader of capitalist nations in the world? (1)

3.2.2. Identify one advantage of capitalism referred to in the extract. (1)

3.2.3. Why do countries choose a particular economic system? (2)

3.2.4. Who owns factors of production in the market economy? (2)

3.2.5. How does a Market economy differ from Command economy? (4)

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3.3. Study the table below and answer the question that follow

NATURE OF CONSUMPTION EXPENDITURE 2015 2016

Durable goods

102 792 124 855

Semi-durable goods

93 592 144 287

Non-durable goods

377 851 628 995

Services

416 535 677 505

TOTAL

995 395 ……............

3.3.1. When was households spending on durable goods the highest? (1)

3.3.2. What was households total spending on goods and services in 2016? (1)

3.3.3. Explain the importance of households spending on final goods and services. (2)

3.3.4. Briefly explain the concept “semi – durable goods” (2)

3.3.5. Differentiate between Durable and Non-durable goods. (4) 3.4. Discuss South Africa’s government actions to improve the situation of the

economically marginalised groups. (4 x 2) (8) 3.5. How far has the South African government achieved its objective of providing a

better healthcare service? (4 x 2) (8)

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ACTIVITY 25 2018 Vhembe Mid-Year 4.1. Answer the following questions. 4.1.1. Give any two examples of Secondary sector industries. (2 x 1) (2) 4.1.2. How does the secondary sector relate to economic development? (1 x 2) (2) 4.2. Study the picture below and answer the questions that follow.

4.2.1. Name the industry of the secondary sector depicted in the picture above. (2)

4.2.2. Briefly explain the concept “secondary sector”. (2)

4.2.3. Explain the problem created by the industry above to the environment. (2)

4.2.4. What is the economic importance of the secondary sector? (4)

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4.3. Study the picture below and answer the questions that follow.

Source: Internet

4.3.1. Name the production factor in the picture above. (2) 4.3.2. Explain the production factor mentioned in 4.3.1. (2) 4.3.3. Why is the production factor mentioned in 4.3.1 important to the

economy of South Africa? (2) 4.3.4. How does economic profit differ from normal profit? (4) 4.4 Discuss the characteristics of labour as a factor of production (4x2) (8) 4.5. Critically analyse the beneficial reasons for community participation in the local

economic planning and activities. (4 x 2) (8)

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ACTIVITY 26 2014 Provincial November 2.1 Answer the following questions.

2.1.1 Which TWO items should be taken into account to convert basic prices to market prices? (2 x 1) (2) 2.1.2 Why should an international treaty to reduce greenhouse gas emissions i.e.

the Kyoto Protocol be implemented? (1 x 2) (2)

2.2 Read the extract and answer the questions that follow.

2.2.1 Which economic condition most affects the less developed countries? (2) 2.2.2 What is the main concern that was addressed by the article? (2) 2.2.3 How can the slow economic growth be solved in emerging economies?

(2) 2.2.4 How can the G20 nations strengthen the fiscal policy environment? (4)

ZUMA: POOR NATIONS BYSTANDERS IN CRISIS Addressing business leaders at the G20 Summit in Cannes, Zuma said the poor were most vulnerable until a unified solution to the crisis is reached. He called the least developed countries innocent bystanders in a global financial crisis. Populations in emerging economies and least–developed countries will continue to be subjected to harmful and excessive economic volatility and risks until agreement on these often divisive issues is reached within the G20. The world economy has fallen victim to both slowing growth and rising downside risks. Businesses were urged to invest in developing nations to stimulate the global economy. G20 nations must strengthen the fiscal policy environment. They must maintain appropriate monetary policies. They should refrain from protectionism.

Independent Newspapers President Jacob Zuma

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2.3 Study the table below and answer the questions that follow.

Gross Fixed Capital formation by kind of economic activity

2010

2013

Investment expenditure (Rands) Agriculture, forestry and fishing ………………………………… Mining and quarrying ……………………………………………. Manufacturing ……………………………………………………. Electricity, gas and water ………………………………………... Construction ……………..………………………………………... Wholesale and retail trade, catering and accommodation …… Transport, storage and communication ………………………… Financial intermediation, insurance, real-estate and business services (including transfer costs) ……………………………… Community, social and personal services……………………….

7 213

41 709

59 488

41 486

7 011

22 671

64 976

58 730

54 027

7 853

47 849

77 629

46 647

7 684

24 561

70 271

60 056

64 347

Total fixed capital formation ………………………………….. 357 131 406 927 Source: SARB Quarterly Bulletin March 2014.

2.3.1 Identify the three economic activities on which the highest investment Expenditure was made in 2013. Motivate your answer. (3 x 2) (6)

2.3.2 Determine the total investment expenditure in the secondary sector. (2)

2.3.3 Determine the percentage contribution of transport, storage and communication to total fixed capital formation in 2013. (2)

2.4 Discuss any TWO factors indicating the importance of the tertiary sector.

(2 x 4) (8) 2.5 Explain how you will address any TWO marginalised groups’ participation

in our economy towards successful participation. (2 x 4) (8)

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ACTIVTY 27 2018 Provincial November 4.1 Answer the following questions

4.1.1 List TWO types of foreign trade. (2 x 1) (2)

4.1.2 Why are intermediate goods excluded in the GDP? (2 x 1) (2)

4.2 Study the table below and answer the following questions

Gross Value Added by kind of economic activity at constant 2010 prices

2016 R millions

2017 R millions

Primary sector 287 886 309 490

Secondary sector 559 056 558 239

Tertiary sector 1 958 298 974 687

GVA at basic prices 2 805 240

[Source: SARB Quarterly Bulletin, December 2017]

4.2.1 Which method was used in the calculation of the gross domestic product (GDP) above? (1)

4.2.2 Which sector contributed most to the GDP in 2017? (1)

4.2.3 How do you calculate GNI? (2)

4.2.4 Briefly describe the term “Gross Domestic Product” (2)

4.2.5 Why do you think the primary sector is of great importance to the country? (4)

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ACTIVITY 28 2017 Vhembe Mid-Year 2.1 Answer the following questions.

2.1.1 Name TWO methods of calculating Gross Domestic Product. (2 x 1) (2) 2.1.2 Explain intermediate goods. (1 x 2) (2)

2.2 Study the information and answer the questions that follow. Real Gross Domestic Expenditure 2012 2013

Sector Year 1st qr 2nd qr 3rd qr 4th qr Year

Primary sector -2,0 7,5 -4,7 8,9 12,8 2,9

Agriculture 2,0 -4,4 -3,0 3,6 6,4 2,3

Mining -3,6 13,4 -5,4 11,4 15,7 3,1

Secondary sector 1,8 -5,9 9,6 -4,5 9,2 1,0

Manufacturing 2,1 -7,9 11,7 -6,6 12,3 0,8

Tertiary sector 3,2 2,0 2,2 1,3 1,5 2,0

Non-manufacturing sector 2,5 2,4 1,6 2,1 2,5 2,1

Non-primary sector 2,8 0,0 4,0 -0,1 3,3 1,8

Total 2,5 0,8 3,2 0,7 3,8 1,9 ‘South African Reserve Bank, Monetary Policy Review, June 2014’

2.2.1 Explain Gross Domestic Product (GDP). (3) 2.2.2 Name three sectors found in the economy. (3) 2.2.3 What is the total of non-manufacturing and non-primary sectors in 2013? (2) 2.2.4 Which sector had unfavorable performance in 2012? (2) 2.3 Study the information below and answer the questions that follow.

Income (R millions) 2010

Gross value added at factor cost Other taxes on production Taxes on products Other subsidies on production Subsidies on products Gross domestic product at market prices Primary income from the rest of the world Primary income to the rest of the world Gross national income at market prices

2 372 011 45 294 268 902 10 367 13 083 2 662 757 34 099 87 022 ?

2.3.1 Name two items included in calculating GVA (Gross value added) at factor cost (2) 2.3.2 Calculate gross value added at basic prices (GVA) 2) 2.3.3 What is the value of gross national income (GNI) at market prices? (2) 2.3.4 How do we derive GDP from GNI? (4) 2.4 Explain the difference between GDP and GNP. Show the formula to calculate GDP. (8)

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ACTIVITY 29 2018 Vhembe Mid-Year Answer the following questions. 3.1.1 Physical capital of a business can be divided into two components. NAME them. (2 X 1 = 2) 3.1.2 Define the concept ‘nationalisation’ (1x2 = 2) 3.2 Study the information and answer the questions that follow:

Gross value by type of the economic activity 2008 (R billions)

Primary sector Agriculture and forestry Mining

146 52 94

Secondary industry Manufacturing Electricity, gas and water Construction

395 ? 37 36

Tertiary sector Wholesale and retail trade Transport and communication Financial institutions Community and social services General government services Other Gross value added at basic prices Plus: taxes on products Less: subsidies on products

1133 258 210 328 337 267 70 1674 220 ?

Gross Domestic Product at market prices 1888

3.2.1 Define the term secondary sector. (2) 3.2.2 Calculate the value of “manufacturing”. (2) 3.2.3 Explain what is meant by ‘durable goods’ (2) 3.2.4 List one reason why the secondary sector of the economy is important. (2) 3.2.5 Calculate the value of ‘subsidies on products’. (2)

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3.3 Study the National Income and Production accounts of S.A. (GDP) at current prices – 2013.

3.3.1 Calculate Gross value added at factor cost. (4) 3.3.2 Define the term subsidy (2) 3.3.3 Between primary income TO and FROM the world indicate which one is a receipt to South Africa and payment from South Africa. (4)

Income 2003

Compensation of employees Net operating surplus Consumption of fixed capital Other taxes on production Taxes on products Other subsidies on production Subsidies on production Primary income from the rest of the world Primary income to the rest of the world

1091 677 519 41 37 52 44 466 612

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2.1. Answer the following questions:

2.1.1. Name any TWO examples of renewable resources. (2x1) (2)

2.1.2. Why are intermediate goods not included in GDP figures? (2)

2.2. Study the table below and answer the questions that follow

2012 R millions

Compensation of employees Net operating surplus Consumption of fixed capital

1 451 603 922 030 405 640

Gross value added @ factor cost 2 779 273

Other taxes on production Other subsidies on production

56 527 15 538

(A) 2 820 262

Taxation on products Subsidies on products

338 804 20 086

Gross domestic products @ market prices

(B)

2.2.1 Identify the method of determining Gross Domestic Product (GDP) in the table(1)

2.2.2. Complete the item represented by letter A in the table. (1)

2.2.3. Describe the term gross domestic products (GDP). (2)

2.2.4. Explain the ‘Consumption of fixed capital’. (2)

2.2.5. Calculate the ‘Gross Domestic Products @ market places’ labeled (B). Show all

calculations. (4)

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2.3. Study the picture below and answer the questions that follow

2.3.1. Which factor of production is represented by the picture above? (2)

2.3.2. Explain the importance of the production factor represented above. (2)

2.3.3. How does the skillfulness of the entrepreneur influence profit? (2)

2.3.4. Outline TWO characteristics of natural resources. (4)

2.4. Briefly discuss categories of labour. (8)

2.5. Discuss with examples Minerals and Sea life as a composition of primary sector

(8)

Management

Manpower

Material

Money

Machinery

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3.1. Answer the following questions:

3.1.1. Name any TWO industries in the secondary sector. (2 x 1) (2)

3.1.2. Why is tertiary sector most preferable in developed countries? (2)

3.2. Study the extract below and answer the questions that follow.

The sector boosts South African economics growth According to the report, the real GDP growth in 2016 came to 3,1 % following the growth of 2,9 % in 2015. The contributors were finance, real estate, and business services, general government services, and the wholesale, retail and motor trade, catering and accommodation industry. Published by HIS : 2/29/2016

3.2.1. Which sector does the extract above refer to? (2)

3.2.2. List any TWO importance of the sector in the extract. (2)

3.2.3. How were black farmers discriminated against, in terms of the Land Act of 1913?

(2)

3.2.4. Briefly explain the importance of the primary sector. (4)

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3.3. Study the cartoon below and answer the questions that follow.

3.3.1. Which economic system is shown by the cartoon above? (2)

3.3.2. Briefly describe capitalism. (2)

3.3.3. Which system is used by the South African government? (2)

3.3.4. What role does the government play in a centrally planned system? (2)

3.3.5. Why does the cartoon show 99% capitalism? (2)

3.4. Explain any TWO characteristics of mixed economy. (8)

3.5. Differentiate between Economic goods and Free goods (8)

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4.1. Answer the following questions

4.1.1. Mention any TWO kinds of infrastructure. (2 x 1)(2)

4.1.2. Why electricity is important in South African economy? (2)

4.2. Study the extract below and answer the questions that follow

MEDUPI causing more of load shedding Eskom says this problem is going to be around for two or three years. That’s not good

news for consumers and the retail sector combined.

“Load shedding is very bad because it’s hard for children to focus properly because

we have overhead projectors at our schools. Now teachers have to write things down

and now we have a lot of corrections. Traffic is bad, robots not working” says a

frustrated resident.

[Reported by Sibongile Mkhani 7 February 2015]

4.2.1 What commodity does Medupi generate? (2)

4.2.2. . Explain the term infrastructure. (2)

4.2.3. Comment on the stability in the supply of the energy in 4.2.1. (2)

4.2.4. How load shedding affect the South African economy? (4)

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4.3 Study the bar diagram below and answer the following questions

4.3.1. Briefly describe tertiary sector. (2)

4.3.2. Calculate the total contribution of the tertiary sector to the GDP. (4)

4.3.3. Why has economic growth been driven mainly by the tertiary sector? (4)

4.4. Tabulate the difference between final goods and intermediate goods. (8)

MiningAgicultu

reManufacturing

Electricity

contruction

WholeTranspo

rtFinace

GeneralGovernment

Personal

services

Series1 5,2 2 15 1,8 5 12 9 21 19 10

0

5

10

15

20

25

Pe

rse

nta

ge c

ntr

ibu

tin

s to

G

DP

BAR GRAPH

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ECONOMIC PURSUITS

SECTION B QUESTIONS


3.1 Answer the following questions;

3.1.1 Name any TWO measures of economic development. (2 x 1) (2)

3.1.2 Why is infrastructure necessary for economic growth? (1 x 2) (2)

3.2 Study the extract below and answer the questions that follow

IMAGINE THE WORLD FREE OF POVERTY WHERE EVERY WOMEN HAS

THE CHANCE TO REALISE THEIR POTENTIAL.

Each of our micro loans remove one of the barriers standing between a South African women and the potential to change her life. A little credit goes a long way. Poverty is a complex issue our clients need innovative solutions, We take holistic approach, developing the capabilities of our clients and reduce their vulnerability to shocks. http//www.sef.co.za

3.2.1 Identify the social indicator referred to in the above extract. (1)

3.2.2 What is the aim of Micro Finance Regulatory Council? (1)

3.2.2 Mention TWO benefits of micro – lender. (2)

3.2.3 Briefly describe the term “Poverty” (2)

3.2.4 How can women be free from poverty? (4)

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3.3 Study the graph below and answer the questions that follow

3.3.1 Label the axis on the above graph. (2)

3.3.2 Name the line OE from the above graph. (2)

3.3.3 Why South Africa has the highest rate of inequality in the world? (2)

3.3.4 What is the relationship between the Gini coefficient and Lorenz

Curve? (4)

3.4 Differentiate between economic growth and economic development.(2 x 4) (8)

3.5 Discuss money as a medium of exchange and as a store of value. (2 x 4) (

[Source: Adapted from Via]

Afrika

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4.3 Study the cartoon below and answer the questions that follow

4.3.1 Which statistical data are used to describe the condition of living and well-being

of people. (2)

4.3.2 Briefly describe the term “Urbanisation” (2)

4.3.3 Why people move from rural to urban areas? (2)

4.3.4 What are disadvantage of immigration. (4)

4.4. Discuss social and economic as socioeconomic services. (2 x 4) (8)

4.5 How can inequality be reduced? (8)

[Source: thisisafrica.me]

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3.1.1 List any TWO instruments of the monetary policy. (2 x 1) (2) 3.1.2 How can economic growth lead to economic development? (1 x 2) (2)

3.2 Study the following cartoon and answer the questions that follow:

Source:http:/www.slideshare.net/amehtaclu/the-other-war-combating-global-poverty-4347926

3.2.1 Describe the message depicted by the cartoon. (2) 3.2.2 Explain the concept poverty trap. (2) 3.2.3 Give any TWO benefits in kind used by government to alleviate poverty.

(2 x 1) (2)

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3.3 Study the extract below and answer the questions that follow:

3.3.1 Define the concept economic growth. (2) 3.3.2 When is a country officially experiencing a recession? (2) 3.3.3 Give ONE reason why the economic growth reached its peak in

2010/2011. (2) 3.3.4 How can technology be used to increase economic growth? (4)

3.4 DiscussTWO reasons for unequal distribution of income. (2 x 4) (8) 3.5 How can indigenous knowledge systems be used to increase the local

employment rates? (4 x 2) (8)

ECONOMIC GROWTH QUARTER 2 (2010) – QUARTER 1 (2014)

Quarterly growth - - - - Annual growth ______

Source: Statistics South Africa 2014

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4.1.1 List any TWO forms of economic integration. (2 x 1) (2

4.1.2 How will HIV/Aids affect economic growth in future? (1 X 2) (2)

4.3 Study the extract below and answer the questions that follow:

4.3.1 Explain the concept bank failure. (2) 4.3.2 Identify THREE reasons why Saambou Bank failed. (3 x 1) (3) 4.3.3 Which bank bought out Saambou`s operations (1) 4.3.4 Which role did credit risk play in the Saambou bank failure fiasco? (4)

4.4 How will depositors and shareholders be influenced by bank failures?

(2 x 4) (8) 4.5 How does SARB pursue a monetary policy that is almost exclusively

aimed at stabilising prices in terms of its inflation targets? (2 x 4) (8)

SAAMBOU BANK FAILURE Early in a September 2002, the Registrar of Banks placed the management responsibilities of this once proud bank in the hands of a curator. Saambou would evidently have been unable to repay deposits made with it when legally obliged to do so. Drastic measures were implemented to prevent a run on the bank. This included closing branches across the country to deny panicked investors access to their deposits.FirstRand `s First National Bank came to the rescue. The bank bought out Saambou`s operations and the depositors could breathe again. One reason for this bank failure was liquidity problems due to the change in the micro-lending legislation, fraud and failure of corporate governance.

Source: Adapted from FA NEWS, Sept, 17th2007, G Stokes

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MACRO ECONOMCS

SECTION C

ESSAY QUESTIONS MOPANI EAST 2019


Answer any ONE of the two questions in this section in the ANSWER BOOK.

Infrastructure plays an important role in the development of the economy.

Discuss the following aspects of South Africa’s infrastructure:

Communication

Transport (26)

Briefly explain how the cell phone industry assists in reducing exclusion of the poor from telecommunication (10)


South Africa is one of many countries in the world with a mixed economy.”

Discuss the characteristics, advantages and disadvantages of a country having a mixed economy. 26)

Explain the challenges that South Africa is currently facing. . 10)


Discuss the characteristics of labour. (26)

In your opinion, how important is capital? (10)


Different economic systems have different methods of allocating scarce resources. South Africa currently has a mixed economic system.

Describe the mixed economic system. (26 marks)

Critically analyse whether South Africa should continue with this system or change to another. (10 marks)

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“Human beings are well-equipped to use and exploit natural resources, but they lack the

ability to renew them”.

Discuss in detail the characteristics of natural resources. (26)

Why is labour important to the South African economy? (10)


“Tertiary sector is the biggest economic sector of all developed countries”

Identify and discuss the elements of the tertiary sector (26)

Evaluate the interdependence of the economic sectors. (10)

ECONOMIC PURSUITS


Discuss characteristics of developing countries (26)

How can the standard of living improve? (10)


In countries well governed, poverty is something to be ashamed of. In a country badly government, wealth is something to be ashamed of. - Confucius There are people in the world so hungry, that God cannot appear to them except in the form of bread. - Mahatma Gandhi

Discuss the effects of poverty. (26 marks)

How will you contribute to reduced poverty in your community? (10 marks)

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economics grade 11 paper 1 macroeconomics and economic …

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