Economics Memo 2 (English)

November 2022 — Grade 12 / Matric — Economics

Memo 2022 Grade 12 English Economics Hub →

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🎯 150 marks 📄 22 pages 📝 62 items found 📚 3 topics

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Q1— Section header —

1.1MULTIPLE CHOICE QUESTIONS

1.1.8variable monopolistic / C oligopoly / A

1.2MATCHING IT EMS

1.2.8The value of inputs owned by the entrepreneur and used in the production process such as opportunity cost

1.3GIVE THE TERM

1.3.6Diseconomies of scale Marginal revenue ost Benefit Analysis Demand pull infla

Q2— Section header —

2.1Answer the following questions.

2.1.1Name TWO types of collusion Overt/explicit /form al Tacit/implicit /informal

2.1.2Why does the government provide subsidies to producers? Subsidies reduce the cost of production which will encourage producers to increa

2.2DATA RES PONSE

2.2.1Identify a non price strategy shown by the above information. Door to door delivery

2.2.2Name ONE example of a monopolistic competitive industry. Fast Food outlets Med ical Doctors Clothing shops Lawyers Restaurants Retail outlets

2.2.3Briefly describe the term patent. A legal right that allows the holder to exclusively produce /manufacture a product for a certain period. / An exclusive right granted to an inventor that protect intellectual property.

2.2.4Why are prices in monopolistically competitive market lower than th e prices of a monopoly? onopolistic

2.2.5Explain the benefits of product differentiation to producers of goods and services. Producers will benefit because the ir products will be easily recognisable from similar products of other businesses

2.3DATA RESPONSE

2.3.1Identify the market price i n the graph above R18 (1\

2.3.2Name any ONE product on which the government can impose a maximum price. Bread Milk Eggs Mealie meal Paraffin (Accept any other correct relevant response\

2.3.3Briefly describe the term minimum price lowest price set by the government above the market price to allow

2.3.4Why would the government intervene in the market by levying tax es on demerit goods? o discourage the production and/ or consumption

2.3.5How would maximum prices influence the economy? onsumers demand more goods (1200\due to low prices and producers supply less (500\ xcess demand for goods

2.4Use the gr aph below to explain the effect of negative externalities on the market. When the market is left to its own devices, a quantity Q will be produced at price P.

2.5How does mutual dependence influence the behavio /actions of firms in the oligopoly market? utual dependence

Q3— Section header —

3.1Answer the following questions.

3.1.1Name any TWO types of consumer inflation. Headline (CPI\ Core Administered price (2 x 1\ (2\

3.1.2How do households benefit from tourism? Members of households earn income directly from the tourism sector as tour operators, travel agents. Many households are indirectly involved in tourism as employees.

3.2DATA RESPONSE

3.2.1Identify the base year in the table above? 2018 (1\

3.2.2Name the Institution that is responsible for controlling inflation in South Africa. The South African Reserve Bank (SARB\ (1\

3.2.3Briefly describe the term hyperinflation It is a type of inflation whereby prices rise so rapid ly that people lose confidence in the value of money

3.2.4Explain the importance of measuring inflation in the economy. To determine whether the inflation rate is still within the target range. It helps policy makers to make informed decisions relating to monetary policy

3.2.5Use the informat ion in the table above to calculate the inflation rate from 2020 to 2021. 109

3.3DA TA RESPONSE

3.3.1Identify a type of tourism that gives an opportunity to experience traditions in a community. Cultural (1\

3.3.2Name any ONE world eritage site in South Africa. Mapungubwe Vredefort Dome

3.3.3Briefly describe the term tourism he activity of peop le travelling to and staying in places outside their usual environment for no more than one year for leisure, business or other purpose. (Accept any other correct relevant response\

3.3.4Why is tourism growth important to the governme nt? The tax base for the government will expand which will increase the tax revenue. For example, through increased airport departures taxes, air ticket taxes and taxes on hotel rooms.

3.3.5How can crime as a socio economic issue negatively influence the tourism sector? High crime levels give a negative perception of the country as a tourism destination hence discouraging tourists

3.4iscuss the reasons for the growth of the tourism industry in South Africa. Increased disposable income leaves people with money to spend on tourism activities. Less working hours allow

3.5How would an increase in the prices of imported key inputs such as oil affect the domestic economy? When the prices of key inputs that are imported increase, the domes

4.1Answer the following questions.

4.1.1Name any TWO examples of merit goods. Education Health care Safety Disaster management (Accept any other correct relevant re sponse

4.1.2Explain the effect of a decrease in interest rate on inflation A dec rease in interest rate will encour age people to borrow more money and thereby increasing aggregate demand which lead to

4.2DATA RESPONSE

4.2.1Identify the loss min imising (equilibrium\point in the graph above? (1\

4.2.2What is the nature of the product sold in a monopoly? Unique has no close substitutes (Accept any other relevant and correct response\ (1\

4.2.3Briefly describe the term natural monopoly. monopoly that exists due to barriers to entry that are economic in nature such as high development costs

4.2.4Why do es a monopoly usually make an economic profit in the long run? monopoly

4.2.5 Use the information in the graph above to calculate the economic loss made by the firm. Show ALL calculations Economic loss TR

4.3DATA RESPONSE

4.3.1Identify the c ause of cost push inflation in the cartoon above. Wages (1\

4.3.2Name ONE way that is used to measure inflation. Indexes (CPI and PPI\ Weigh ing Inflation rate

4.3.3Briefly desc ribe the term inflation Inflation is a sustained and significant increase in the general price level over a period of time (Accept any other correct relevant response\ (2\

4.3.4Explain the effect of a decrease in the general price level on roducers. Producers will earn less revenue resulting in lower profits. Producers may leave the market for other profitable business

4.3.5How can the government use the fiscal policy to combat demand pul l inflation? The government can combat demand

4.4Briefly discuss lack of information and immobility of factors of production as causes of market failure Lack of information

4.5How would an increase in tourism activities negatively impact on the environment? Tourism can cr eate environmental damage through: permanent restructuring of the landscape such as construction work on

Q5— Section header —

Q6— Section header —

Topics Identified

MicroeconomicsMacroeconomicsInternational Trade

Mark Allocation

Total150 marks

Sections40 + 40 + 40 + 40 + 40 = 200 marks

Paper information

SubjectEconomics

Year2022

SessionNovember

TypeMemo

PaperPaper 2

LanguageEnglish

Pages22

Downloads5

Examination context

Decade2020s

Years ago4y

SeasonSpring (SH)

Start daySaturday

Exam periodNovember 2022

Days since exam1,448

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

interpreting economic information

applying concepts

using subject terminology

structuring extended responses

A practical revision approach

Economics rewards graphical literacy — practice drawing and labelling graphs accurately. The memorandum allocates marks for correct axis labelling, curve identification, and shift analysis.

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