Confidential

NATIONAL
SENIOR CERTIFICATE

GRADE 12

ECONOMICS P1

NOVEMBER 2024

MARKS: 150

TIME: 2 hours

This question paper consists of 12 pages.

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INSTRUCTIONS AND INFORMATION

1. Answer FOUR questions as follows in the ANSWER BOOK:

SECTION A: COMPULSORY
SECTION B: Answer TWO of the three questions.
SECTION C: Answer ONE of the two questions.

2. Answer only the required number of questions. Answers in excess of the

required number will NOT be marked.

3. Number the answers correctly according to the numbering system used in this
question paper.

4. Write the question number above each answer.

5. Read the questions carefully.

6. Start EACH question on a NEW page.

7. Leave 2–3 lines between subsections of questions.

8. 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.

9. Use only black or blue ink.

10. You may use a non-programmable pocket calculator.

11. Write neatly and legibly.

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SECTION A (COMPULSORY)

QUESTION 1 30 MARKS – 20 MINUTES

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. Nov

1.1.1 Short-term savings and loans are traded on the … market.

A capital
B foreign exchange
C factor
D money

1.1.2 Job advertising space is an example of a … indicator.

A lagging
B coincident
C leading
D composite

1.1.3 The deficit rule states that shortages on the budget should not
exceed … of the gross domestic product (GDP).

A 60%
B 3%
C 30%
D 6%

1.1.4 The ratio of a country's export price index to its import price index
is known as the …

A trade balance.
B exchange rate.
C terms of trade.
D interest rate.

1.1.5 A trade policy that restricts certain imports to prevent unfair foreign
competition for local industries is called …

A protectionism.
B export promotion.
C import substitution.
D free trade.

1.1.6 The level of a country's standard of living is measured by …

A real GDP.
B nominal GDP.
C national income.
D per capita GDP.

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1.1.7 An international benchmark criterion for regional development that

requires democratic decision-making and transparency is called …

A good governance.
B integration.
C partnership.
D free-market orientation.

1.1.8 The probable number of years that a person will live after birth is
known as …

A child mortality.
B life expectancy.
C under-five mortality.
D population growth. (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, e.g. 1.2.9 J.

COLUMN A COLUMN B
1.2.1 Factor cost A a three-year rolling expenditure and
revenue projection for the government
1.2.2 Moving average
B a form of credit granted by the
1.2.3 Medium-term International Monetary Fund to
Expenditure countries that experience balance of
Framework payments deficits

1.2.4 Special Drawing C aims to eliminate poverty and reduce

Rights inequality by 2030

1.2.5 Boycotts D method used to predict the unknown

using facts that are known
1.2.6 National Development
Plan E attract infrastructure and investments to
neglected and underdeveloped areas
1.2.7 Spatial Development
Initiatives F amount paid for the resources used to
produce goods and services
1.2.8 Urbanisation
G method used to smooth out short-term
fluctuations in time series data

H the process of the movement of people

from rural areas to cities and towns

I voluntary measures taken not to trade

with a certain country
(8 x 1) (8)

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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.

1.3.1 The flow of goods, services and factors of production among the
participants in the economy

1.3.2 A curve that illustrates the inverse relationship between

unemployment and the inflation rate

1.3.3 The transfer of functions and ownership of entities from the private
sector to the public sector

1.3.4 Financial support in the form of cash payments provided by the

government to domestic producers

1.3.5 Industries that employ more labour than capital in the production
process

1.3.6 The economic indicator used to measure the cost of living (6 x 1) (6)

TOTAL SECTION A: 30

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SECTION B

Answer any TWO of the three questions in this section in the ANSWER BOOK.

QUESTION 2: MACROECONOMICS 40 MARKS – 30 MINUTES

2.1 Answer the following questions.

2.1.1 Name any TWO methods used to calculate gross domestic product
(GDP). (2 x 1) (2)

2.1.2 How can competition stimulate aggregate supply in the economy?

(1 x 2) (2)

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

PUBLIC SECTOR FAILURE

In South Africa many public entities suffer from management failure.

Organisations are inefficient in delivering services because they lack a skilled
workforce to complete tasks successfully.

This results in services being of poor quality, such as hospitals running out of
medicines. There are cases where funds are left unspent even when there is
a desperate need from communities. This means that money is returned to
the National Treasury at the end of the fiscal year.

[Adapted from www.wikipedia.org]

2.2.1 Identify ONE reason for public sector failure in the above extract. (1)

2.2.2 Name the level of the government that is responsible for providing
services, such as refuse removal. (1)

2.2.3 Briefly describe the term accountability. (2)

2.2.4 Explain the effect of public sector failure on the allocation of

resources. (2)

2.2.5 Why is it necessary for the government to impose taxes on demerit

goods? (2 x 2) (4)

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

MULTIPLIER EFFECT IN A TWO-SECTOR ECONOMY

E=Y
Expenditure (E)
(Billion rands)

E1 = 30 + 0,5Y
e1 0.6Y1111111111
E1= 20 + 0,5Y

30 e

20

Y Y1
Income (Y)
0.6
Y1
2.3.1 Identify the value of the11marginal propensity to consume (MPC) in
the graph above. 11 (1)
11
2.3.2 Name any ONE participant 11 in a two-sector economy. (1)
11
2.3.3 Briefly describe the term autonomous consumption. (2)

2.3.4 Explain the relationship between marginal propensity to save

(MPS) and the value of the multiplier (K). (2)

2.3.5 Use the information in the above graph to calculate the change in
national income (ΔY). Show ALL calculations. (4)

2.4 Discuss the exogenous (monetarists) explanations of a business cycle. (4 x 2) (8)

2.5 How can the macroeconomic objective of price stability positively influence
the South African economy? (4 x 2) (8)
[40]

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QUESTION 3: ECONOMIC PURSUITS 40 MARKS – 30 MINUTES

3.1 Answer the following questions.

3.1.1 Name any TWO countries that are part of the Southern African
Development Community (SADC). (2 x 1) (2)

3.1.2 How can Broad-Based Black Economic Empowerment (BBBEE)

help to promote industrial development? (1 x 2) (2)

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

SOUTH AFRICA'S INDUSTRIAL DEVELOPMENT STRATEGIES

In recognising the importance of manufacturing in the economy, two

strategies were developed, namely the National Research and Development
Strategy (NRDS) and the Integrated Manufacturing Strategy (IMS).

South Africa has set a target of 1,5% of gross domestic product (GDP)
expenditure on research and development. However, these investments
decreased from 0,75% in 2018/19 to 0,60% in 2021/22.

[Adapted from OECD, September 2023]

3.2.1 Identify the industrial development strategy that aims to improve

the competitiveness of the manufacturing sector. (1)

3.2.2 Name the government department that is responsible for promoting

industrial development. (1)

3.2.3 Briefly describe the term duty-free incentives. (2)

3.2.4 Explain the importance of corridors in promoting regional

development. (2)

3.2.5 How can South African businesses benefit from the National
Research and Development Strategy (NRDS)? (2 x 2) (4)

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

[Source: www.ceicdata.com]

3.3.1 Identify the percentage change in South Africa's labour productivity

in the fourth quarter of 2022. (1)

3.3.2 State ONE other economic indicator that relates to productivity. (1)

3.3.3 Briefly describe the term economic indicator. (2)

3.3.4 Why is access to healthcare services important to the labour force? (2)

3.3.5 How can a decrease in labour productivity impact the economy?

(2 x 2) (4)

3.4 Discuss the advantages of import substitution for the South African economy.
(4 x 2) (8)

3.5 Analyse the challenges faced by South Africa in promoting industrial

development through the various policies. (4 x 2) (8)
[40]

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QUESTION 4: MACROECONOMICS AND ECONOMIC PURSUITS

40 MARKS – 30 MINUTES

4.1 Answer the following questions.

4.1.1 Name any TWO economic indicators that relate to employment.

(2 x 1) (2)

4.1.2 How can the government achieve the macroeconomic objective of

economic equity in South Africa? (1 x 2) (2)

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

BUSINESS CYCLES OF SOUTH AFRICA SINCE 1999

Upswing Duration Downswing Duration

in months in months

Sept 1999 to Nov 2007 99 Dec 2007 to Aug 2009 21

Sept 2009 to Nov 2013 51 Dec 2013 to Apr 2017 41

May 2017 to June 2019 26 July 2019 to Apr 2020 10

[Adapted from SARB Quarterly Bulletin, December 2023]

4.2.1 Identify the period in which South Africa experienced the longest
downswing. (1)

4.2.2 Name the turning point of a business cycle associated with the
highest level of inflation. (1)

4.2.3 Briefly describe the term amplitude. (2)

4.2.4 Explain the importance of the trend line in the forecasting of

business cycles. (2)

4.2.5 How can an economic recession influence households in the

economy? (2 x 2) (4)

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

INTERNATIONAL TRADE RESTRICTIONS

[Adapted from www.guyparsons.com]

4.3.1 Identify a trade restriction that refers to a tax levied on imported

goods. (1)

4.3.2 Name the international organisation that promotes the removal of

trade restrictions between countries. (1)

4.3.3 Briefly describe the term embargo. (2)

4.3.4 Explain the importance of protecting infant industries from foreign

competition. (2)

4.3.5 How can the economy benefit from specialising in the production of
a specific product? (2 x 2) (4)

4.4 Discuss the social indicators that relate to nutrition. (4 x 2) (8)

4.5 How can an increase in injections contribute positively towards the South
African economy? (4 x 2) (8)
[40]

TOTAL SECTION B: 80

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SECTION C

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

Your answer will be assessed as follows:

MARK
STRUCTURE OF ESSAY
ALLOCATION
Introduction
The introduction is a lower-order response: Max. 2
 A good starting point will 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 Max. 26
discuss/Analyse/Compare/Evaluate/Distinguish/Differentiate/Explain/
Assess/Debate
A maximum of 8 marks may be allocated for headings/examples.

Additional part: Critically discuss/Evaluate/Critically evaluate/Deduce/ Max. 10

Compare/Distinguish/Suggest/Interpret/Debate/How
A maximum of 2 marks may be allocated for mere listing of facts.
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

QUESTION 5: MACROECONOMICS 40 MARKS – 40 MINUTES

 Discuss in detail the reasons for international trade. (26)

 Analyse the impact of a weaker currency (rand) on the South African economy. (10)
[40]

QUESTION 6: ECONOMIC PURSUITS 40 MARKS – 40 MINUTES

 Discuss in detail the demand-side approach in promoting economic growth and

development in South Africa. (26)

 Analyse the importance of promoting small businesses for the South African
economy. (10)
[40]

TOTAL SECTION C: 40
GRAND TOTAL: 150

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