Economics Memo 1 (English)

May-June 2023 — Grade 12 / Matric — Economics

Memo 2023 Grade 12 English Economics Hub →

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🎯 150 marks 📄 22 pages 📝 63 items found 📚 3 topics

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Q1— Section header —

1.1MULTIPLE CHOICE QUESTIONS

1.1.8current prices composite parastatals

1.2MATCHING ITEMS

1.2.8the proportion of additional income that households choose to spend on goods and services se of taxation and government expenditure to achieve macroeconomic objectives

1.3GIVE THE TERM

1.3.6Extrapolation Med ium Term Expenditure Framework Import substitution Import quota Land restitution Regional development (6

Q2— Section header —

2.1Answer the following questions.

2.1.1Name the TWO turning points of a business cycle. Peak Trough (2 x 1\ (2\

2.1.2Why would a decrease in South African exports lead to the depreciation of the rand? Supply of foreign currency will de crease which will

2.2DATA RESPONSE

2.2.1Identify the tax rate at which the government maximises tax revenue. 50% (1\

2.2.2Name any form of indirect tax paid by households to the government. Value Added Tax VAT Excise duty ( Sin tax Fuel levy

2.2.3Briefly describe the term pro gressive tax Tax system whereby people in higher income groups pay hig

2.2.4Explain the effect of a regressive tax system on income distribution Regressive ta system makes income to be more un

2.2.5Why will tax revenue decrease if the government impose very high tax rates? Some businesses and individual may be forced to evade tax resulting in lower tax revenue for the government

2.3DATA RESPONSE

2.3.1Identify a concept that relates to the changes in the consumer price index from the cartoon above. Cost of living (1\

2.3.2Name the explanation (approach\ of business cycles illustrated in the above cartoon. Exogenous Monetarist (1\

2.3.3Briefly describe the term recession Decline or negative growth in real Gross Domestic Product for at least two consecutive quarters The first stage of a downswing where economic activity starts to decrease

2.3.4Explain the impact of the Ukraine/Russia war on local food prices. The Ukraine/Russia war resulted in a decrease supply and an increase in prices of agricultural inputs from Russia which led to

2.3.5How can the government use monetary policy to stimulate economic activity The government can use expans ionary monetary policy to stimulate economic activity during the recession or depression phase

2.4Briefly discuss the free floating and the fixed exchange rate systems. Free

2.5How can the South African government improve the quality of public sector provisioning The South African government can improve the quality of public sector provisioning by: awarding government contract for service delivery to companies with a

Q3— Section header —

3.1Answer the following questions.

3.1.1Name any TWO examples of wealth tax Capital gain tax Transfer duty Estate duty Property tax Donations tax Dividend tax (Accept any other

3.1.2Why is small business development important to the South African economy? Small businesses can help to create employment for those who are structurally unemployed / Small businesses may create sources of

3.2DATA RESPONSE

3.2.1Identify a term in the extract above, which relates to the removal of import tariffs. Duty free (1\

3.2.2Name ONE other trade protocol of which South Africa is part Southern African Custom Union (SACU\ Multilateral Monetary Area (MMA\ Southern Africa Development Community (SADC\ African Union (AU\ Japan

3.2.3Briefly describe the term protectionism Government policy that discourages the importing of certain goods and services so that domestic industries are not exposed to unfair foreign competition (Accept any other correct relevant response\

3.2.4Explain a disadvantage when applying the protectionism policy. Other countries may retaliate by implementing protectionism measures as well Indu stries may become too reliant on

3.2.5How can the African Growth and Opportunity Act (AGOA\ negatively affect South Africa? South African local businesses may face unfair competition from American products that are imported at lower prices

3.3DATA RESPONSE

3.3.1In which year did South Africa record the highest human development index? 2019 (1\

3.3.2Name ONE indicator used to measure human development. Per capita income Literacy rate Life expectancy (1\

3.3.3Briefly describe the term economic development The improvement in the sta ndard of living of a country s population over a period of time (Accept any other correct relevant response\

3.3.4Why did South Africa experience a decline in social and economic development in 2020? In 2020 many people lost their employment and other sources of income due to the lockdown restrictions to reduce spreading

3.3.5How can the government improve the standard of living for the people? The government can improve the standard of living by: improving education and training for the people to gain skills and knowledge that will help them find employment

3.4Briefly discuss partnerships and good governance as benchmark criteria for regional development Partnerships Regional development is the responsibility of different stakeholders in

3.5Evaluate the impact of export promotion on l ocal industries in South Africa. Export promotion may impact on local indus tries in the following ways: Positive impact Bigger export markets allow local businesses to sell more products and

Q4— Section header —

4.1Answer the following questions.

4.1.1Name any TWO characteristics of public goods Non excludable Non rivalry

4.1.2How can South African workers benefit from import substitution More South African workers will get employed to produce the goods that substitute foreign products Workers will gain new

4.2DATA RESPONSE

4.2.1Identify the item that records an investment made in a specific asset with a fixed future value such as gold Net financial derivatives (1\

4.2.2Name the item that caters for any omissions and errors in the balance of payments Unrecorded transactions (1\

4.2.3Briefly describe the term portfolio investment The purchasing of financial assets such as shares on the stock exchange (Accept any other correct relevant response\ (2\

4.2.4Explain the purpose of Special Drawings Right (SDR\ allowances in Reserve Assets. To finance the Balance of Payments disequilibria /deficit experienced by member countries (Accept any other correct relevant response\

4.2.5Use the information in the table above to calculate the memo item (A\how ALL calculations Net direct investment 32 367 Net portfolio investment 4 688

4.3DATA RESPONSE

4.3.1Identify the Industrial Development Zone that manufactures vehicles. Coega IDZ East London IDZ (1\

4.3.2Name the key economic activity that Saldanha IDZ specialise in. Steel industries (1\

4.3.3Briefly describe the term corridor A track of land that forms a passageway allowing access from one area to another and providing advantages for the mining, agriculture and manufacturing industries

4.3.4Why is it necessary for the government to provide incentives to businesses? To encourage businesses to produce more output of a specific product To attract more investments to a particular economic activity or

4.3.5How can South Africa benefit from the introduction of Special Economic Zones (SEZ\? South Africa can benefit from the introduction of SEZ in the following ways Economic growth is stimulated by attracting m

4.4With the aid of a well labelled Phillips curve, explain the relationship between inflation and unemployment PHILLIPS CURVE The curve illustrates that there is a trade off or inverse relationship

4.5Analyse the demand side and supply side factors that influence economic growth in South Africa.

Q5— Section header —

Q6— Section header —

Topics Identified

MicroeconomicsMacroeconomicsInternational Trade

Mark Allocation

Total150 marks

Sections40 + 40 + 40 + 40 = 160 marks

Paper information

SubjectEconomics

Year2023

SessionMay-June

TypeMemo

PaperPaper 1

LanguageEnglish

Pages22

Downloads5

Examination context

Decade2020s

Years ago3y

Season—

Start day—

Exam period—

Days since exam—

About Economics examination preparation

Grade 12 Economics covers microeconomics and macroeconomics. The memorandum rewards correct labelling of graphs and curves.

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economic reasoning

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A practical revision approach

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