NATIONAL SENIOR CERTIFICATE (NSC) GRADE 11 MID-YEAR EXAMINATION ECONOMICS PAPER 2 (NSC11-13) D B DURATION: 1½ HOURS DATE: 19 JUNE 2013

Transcription

1 ECOHIG211 NATIONAL SENIOR CERTIFICATE (NSC) GRADE 11 MID-YEAR EXAMINATION ECONOMICS PAPER 2 (NSC11-13) D B TIME: 09H00 10H30 TOTAL: 150 MARKS DURATION: 1½ HOURS DATE: 19 JUNE 2013 This question paper consists of 9 pages. ICG 1 NSC Grade 11

2 INSTRUCTIONS AND INFORMATION Read the following instructions carefully before answering the questions: 1. Write your answers in your answer book, which is provided in the examination. 2. Answer FOUR questions. SECTION A ONE QUESTION: COMPULSORY SECTION B TWO QUESTIONS: ANSWER BOTH QUESTIONS SECTION C TWO QUESTIONS: ANSWER ANY ONE OF THE QUESTIONS 3. Read the instructions carefully. Neatness and systematic presentation of FACTS are required. 4. Begin with the question you think you will get the best marks. 5. Number the answers correctly according to the numbering system used in this question paper. 6. Except where other instructions are given, answers must be in full sentences. 7. Non-programmable calculators may be used. 8. The candidate can only use blue or black ink to answer the question paper. 9. The mark allocation of each question will determine the length of your answer. Give enough facts to earn the marks allocated. Do not waste time by giving more information than required. 10. Please write neatly we cannot mark illegible handwriting. 11. Start the answer for each question on a NEW page, for example Question 1 new page, Question 2 new page. 12. Any student caught cheating will have his or her question paper and notes confiscated. The College will take disciplinary measures to protect the integrity of these examinations. 13. If there is something wrong with or missing from your question paper or your answer book, please inform your invigilator immediately. If you do not inform your invigilator about a problem, the College will not be able to rectify it afterwards, and your marks cannot be adjusted to allow for the problem. 14. This question paper may be removed from the writing venue after the examination has taken place. This question paper consists of THREE sections: Section A, Section B and Section C. Answer FOUR questions in total, as outlined below. Question Section Marks 1 2 and 3 4 and 5 A: ONE question Answer the question B: TWO questions Answer BOTH questions C: TWO questions Answer ONE of the questions TOTAL MARKS: ICG 2 NSC Grade 11

3 SECTION A (30 MARKS) ANSWER THE QUESTION QUESTION Three possible options are provided as answers to the following questions. Each question only has ONE correct answer. Choose the correct answer and write down only the letter (A. C.) next to the appropriate number ( ) Demand is relative inelastic when the price elasticity coefficient is A. more than one. B. equal to one. C. between 0 and The elasticity coefficient of demand is calculated to determine the relationship between two products. A. cross B. income C. gross A/an market normally consists of a few large firms that sell mostly differentiated products. A. monopolistic B. oligopolistic C. duopolistic A firm or business in a perfect market is a price... A. maker. B. differentiator. C. taker The run is a period in which some factors of production and other inputs remain fixed and cannot be changed. A. short B. intermediate C. long The additional cost a firm incurs when producing an additional unit of a product: A. average cost B. marginal cost C. variable cost ICG 3 NSC Grade 11

4 A graphical representation of the quintile distribution of income: A. Lorenz curve B. Laffer curve C. Gini coefficient GDP after the general increase in the price of goods and services has been taken into account. A. nominal GDP B. GDP at current prices C. real GDP (8 2 = 16) 1.2 Choose a term from Column A that matches a description in Column B. Write only the letter (A. H.) next to the question number ( ) in the Answer Book, for example C. Column A Column B marginal utility A. one supplier or producer of a product perfect elastic monopoly collusion economies of scale B. fewer inputs are used to produce the same level of output C. minimum return that is required by the owners of a firm in order for them to continue with the business D. the additional satisfaction a person gets from consuming an extra unit of a product E. compare the distribution of income between the different sectors of the population normal profit F. quality of life of an individual or household GINI coefficient standard of living G. firms working together to influence the prices of products H. demand curve is depicted by a horizontal line (8 1 = 8) ICG 4 NSC Grade 11

5 1.3 Choose the correct alternative in brackets A coefficient refers to a (variable / constant) number that serves as measure of some property or characteristic (Substitute / Complementary) goods are used together to satisfy a specific need or want The (absolute / relative) prices refer to the monetary value of goods and services The (accounting / economic) profit refers to the extra profit that a firm makes on a specific transaction The state uses a (progressive / regressive) tax to redress the unequal distribution of income in South Africa Economic (development / growth) refers to an increase in the production of goods and services in a country in a year. (6 1 = 6) [30] TOTAL SECTION A: 30 ICG 5 NSC Grade 11

6 SECTION B (80 MARKS) ANSWER BOTH QUESTIONS QUESTION List TWO characteristics of a perfect market. (2 2 = 4) 2.2 Study the data provided below and answer the questions that follow: Product A Product B Quantity Quantity Price (R) Price (R) demanded demanded Calculate the price elasticity of demand for Products A and B. (Show all calculations). (6) Identify the type of price elasticity of demand for Products A and B. (4) 2.3 Read the extract below and answer the questions that follow: ESKOM monopoly cost South Africans Eskom is not prepared to let go of the power it harnesses as a monopoly in electricity generation. Yet Eskom is equally aware of its inability to produce sufficient electricity to avoid these rolling blackouts, said Happy Birthway, director at ABC Attorneys. At the moment, Eskom has a maximum capacity of megawatts while the country demands about megawatts. The internationally acceptable reserve margin is 20%. (Slightly adapted) Source: Name the one and only shareholder in Eskom. (2) What kind of gradient does the demand curve of a monopolistic business have? (2) ICG 6 NSC Grade 11

7 2.3.3 Explain the meaning of the phrase "rolling blackouts". (2) Comment on the reserve margin of Eskom compared to the international acceptable reserve margin. (4) 2.4 Explain the relationship between the product- and factor markets. (4 2 = 8) 2.5 Explain FOUR characteristics of monopolistic competition. (4 2 = 8) [40] QUESTION List TWO types of wealth. (2 2 = 4) 3.2 Study the graph below and answer the questions that follow: Profit maximisation: TR & TC P r i c e TR TC Output in thousands Determine the quantity of products that must be sold before the business is able to break-even for the first time. (2) At what price is the business breaking even? (2) Identify the area indicated by the arrows on the graph. (2) How many units must be sold for the business to obtain maximum revenue? (2) Comment on the trend of the Total Revenue Curve. (2) ICG 7 NSC Grade 11

8 Cumulative Income [%] Economics Paper Study the graph below and answer the questions that follow: 100 E 80 A 60 C 40 B 20 D Cumulative population [%] Identify the graph illustrated above. (2) Define the graph identified in Question (2) Provide a label for the line indicated by A on the graph. (2) Identify the area on the graph indicated by the arrows. (2) Comment on the DE line on the graph. (2) 3.4 Describe briefly the different objectives of businesses. (4 2 = 8) 3.5 Explain TWO factors that determine the standard of living of an individual. (2 4 = 8) [40] TOTAL SECTION B: 80 ICG 8 NSC Grade 11

9 SECTION C (40 MARKS) ANSWER ANY ONE OF THE QUESTIONS PLEASE NOTE: Structure your essay in the following way: Introduction Body Conclusion QUESTION 4 Discuss in detail FIVE factors that determine the elasticity of demand. [40] OR QUESTION 5 "Economic growth is important because it provides a foundation for the future of society. Economic growth can contribute to advancements in all fields, creating beneficial outcomes and solutions to many economic problems." With reference to the above statement, analyse the concept economic growth by referring to the following: Meaning of the term Importance FOUR methods to increase economic growth [40] TOTAL SECTION C: 40 GRAND TOTAL: 150 MARKS ICG 9 NSC Grade 11