Economics Memo 2 (English)

May-June 2022 — Grade 12 / Matric — Economics

Memo 2022 Grade 12 English Economics Hub →

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🎯 150 marks 📄 19 pages 📝 63 items found 📚 3 topics

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Q1— Section header —

1.1MULTIPLE CHOICE QUESTIONS

1.1.8marginal Commission variable duopoly

1.2MATCHING ITEMS

1.2.8mechanism that brings together buyers and sellers of goods and services firms that have control over the market price

1.3GIVE THE TERM

1.3.6Short run/term Black market External cost/Negative externality Inbound Demand pull Environmental sustainability

Q2— Section header —

2.1Answer the following questions.

2.1.1Name TWO broad types of monopol ies Natural monopoly Artificial monopoly (2 x 1\ (2\

2.1.2How would an increase in number of firms in a perfect market impact on the prices of goods and services? Supply will increase leading to a decrease in prices of goods and services. (Accept any other correct relevant respon

2.2DATA RESPONSE

2.2.1Which market structure is represented by the above graph? Perfect competition (1\

2.2.2Name point A in the graph above. Normal profit/break even/zero economic profit (1\

2.2.3Briefly describe the term explicit cost The actual expenditure of a business on the purchase or hire of the input required for the production process/ Direct payments which a firm makes to others for the purchase of inputs

2.2.4Why would firms incur costs even when the output is zero? Firms incur fixed costs (rent and insurance costs\even when there is no production taking place. (Accept any other correct relevant response\ (2\

2.2.5Use the graph above to explain how profit maximisation is achieved by the firm? At all points where total revenue (TR\ is greater than total cost (TC\ the firm is making a profit (between A and B\ Profit is maximised when the vertical gap between total

2.3DATA RESPONSE

2.3.1Identify ONE example of an external benefit in the table above. Opportunities for new businesses /reduced transport costs for individuals (1\

2.3.2Name the sector in which a cost benefit analysis is applied. Public sector (1\

2.3.3Briefly describe the term social costs The total costs incurred by the society as a whole /include private and external costs (Accept any other correct relevant response\ (2\

2.3.4How can a lack of information among entrepreneurs lead to market failure? Entrepreneurs may lack information about costs, availability and productivity of some factors of production, resulting in irrational

2.3.5Determine whether the project is viable or not by calculating the cost benefit ratio. Show ALL calculations. R280 000 /R200 000 = 1,4 OR R280 000/R215 000 = 1,3

2.4Briefly discuss product differentiation and control over prices in monopolistic competition. Product differentiation Different products are similar in that they satisfy the same consumer need but are not totally identical

2.5How would the implementation of maximum prices impact negatively on the economy? Maximum prices may cause a shortage of goods and services in the economy. The shortage in supply will result in the economy declining.

Q3— Section header —

3.1Answer the following questions.

3.1.1Name any TWO World Heritage Sites of historical and cultural importance in South Africa. The Cradle of Humankind/ Sterkfontein/Maropeng Robben Island The Mapungubwe Cultural Landscape Ikhomani cultural landscape

3.1.2How can the granting of property rights help conserve the environment? Granting of property rights ensures that people take care of anything that belongs to them. Property rights encourage people to use the environment

3.2DATA RESPONSE

3.2.1Identify the health risk faced by the tourists in the cartoon above. Covid 19 Pollution (1\

3.2.2What type of tourism is associated with 'Happy Holidays'? Leisure/recreation tourism (Accept any other relevant and correct response\ (1\

3.2.3Briefly describe the term transit tourist People who stop over in a country/ destination on their way to another country/

3.2.4Explain the purpose of levying taxes on tourists To maintain the existing infrastructure and essential tourist facilities To cover the costs incurred by local municipalities in the hosting of the tourists.

3.2.5How can infrastructure development promote tourism? Improved infrastructure enhances the living conditions of local people as well as tourists. Upgrading existing accommodation, transport and communication infrastructure contributes positively to tourist

3.3DATA RESPONSE

3.3.1Identify the term that refers to the variety of plant and animal life in an ecosystem. Biodiversity (1\

3.3.2Name ONE animal that is threatened by extinction in South Africa. Rhino Tiger African wild dog Cheetah (Accept any other relevant and correct response\ (1\

3.3.3Briefly describe the term preservation. Keeping resources that are non renewable intact/keeping resources that are threatened by extinction intact, e.g., ecological

3.3.4Explain the importance of education campaigns in preventing environmental degradation. Education changes people's attitudes towards the environment positively. Various innovative approaches have been tried such as setting

3.3.5How is the loss of biodiversity being addressed internationally The Convention on nternational Trade on Endangered species (CITES\s been established which bans international trade in an agreed list of endangered species.

3.4Briefly discuss the effects of tourism on externalities and poverty Externalities Tourism can attract a large amount of revenue, however can also cause undue environmental damages. Rapid growth of tourism may lead to degradation of traditions and

3.5How can the government promote a green economy in South Africa? The government should make use of the constitution as it allows it to create laws and methods to achieve green economy. The government should enforce the national environment management

Q4— Section header —

4.1Answer the following questions.

4.1.1Give any TWO examples of monopolistic competitive markets. Supermarkets Fast food restaurants Clothing shops Furniture shops

4.1.2How can a decrease in interest rates cause inflation Cost of borrowing will decrease, increasing consumer spending which will result in excess demand Investment spending by business will increase demand for

4.2DATA RESPONSE

4.2.1Identify the curve that relates to allocative efficiency IC/Indifference Curve (1\

4.2.2What quantity of rice will be supplied if 800 units of maize are produced? (1\

4.2.3Briefly describe the term market failure. Occurs when the market forces (supply and demand \fail to allocate resources efficiently optimum output has not been achieved.

4.2.4How can the government discourage the consumption of demerit goods The government increases the excise duties levied on demerit goods such as alcohol. Provides information (education\ to the public about the

4.2.5Why will production at point E be regarded as inefficient? Few goods and services will be produced due to inefficient use of resources. Due to inefficient use of resources, cost of production will increase.

4.3DATA RESPONSE

4.3.1Identify the international agreement in the cartoon above that limits the production of greenhouse gases. Kyoto Protocol (1\

4.3.2Give ONE example of a fossil fuel. Oil Natural Gas Coal (Accept any other correct relevant response\ (1\

4.3.3Briefly describe the term global warming Refers to the gradual overall increase in the temperature of the earth's atmosphere due to the increase of pollution into the atmosphere. (Accept any other correct relevant

4.3.4Explain the Basel Convention agreement to reduc environmental damage. Parties are obliged to prevent the import or export of hazardous wastes if they have reasons to believe that the wastes will damage the environment.

4.3.5How can producers contribute to environmental sustainability? The producers can contribute to environmental sustainability by: eveloping new technology and equipment that are using environmentally friendly energy

4.4With the aid of a correctly labelled graph, explain economic profit in a perfect market. Cost/revenue AC MC D = AR = MR

4.5Analyse the challenges faced by the tourism industry in South Africa. Tourism activities are concentrated mainly in the coastal cities and big cities whist most inland areas are neglected. There is lack of infrastructure like roads to access and grow community

Q5— Section header —

Q6— Section header —

Topics Identified

MicroeconomicsMacroeconomicsInternational Trade

Mark Allocation

Total150 marks

Sections40 + 40 + 40 + 40 + 40 + 40 + 40 = 280 marks

Paper information

SubjectEconomics

Year2022

SessionMay-June

TypeMemo

PaperPaper 2

LanguageEnglish

Pages19

Downloads3

Examination context

Decade2020s

Years ago4y

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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For stronger examination practice, complete the paper without unnecessary interruptions and keep track of the questions that take the most time. Afterwards, review the memorandum and separate knowledge gaps from mistakes caused by interpretation, calculation, structure, or examination technique.

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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