Economics Memo 2 (English)

May-June 2019 — Grade 12 / Matric — Economics

Memo 2019 Grade 12 English Economics Hub →

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🎯 150 marks 📄 20 pages 📝 61 items found 📚 3 topics

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Q1— Section header —

1.1MULTIPLE CHOICE QUESTIONS

1.1.8perfectly elastic fast food outlets supply equal to 0 exchange rate depreciation green economy inbound oal (8 x 2\

1.2MATCHING ITEMS

1.2.8lls homogenous goods A form of financial grant to support an economic activity The number of species within a community of organisms Charges higher prices and produce low quantities An engagement between government and businesse

1.3GIVE THE TERM

1.3.6Artificial Econom ies of scale Negative externality Marketable permits Transit / same day traveller Hyperin

Q2— Section header —

2.1Answer the following questions.

2.1.1Name any TWO characteristics of monopolistic competition Large number of producers Differentiated product Free market entry Producers have little control over price

2.1.2Why would a lack of information to entrepreneurs lead to market failure A lack of information regarding cost and availability of the factors of production will result in a misallocation of resources / will result in

2.2DATA RESPONSE

2.2.1Identify the quantity the firm will produce at equilibrium point. (1\

2.2.2What curve represents the market price for the perfect competitor? R/dd (1\

2.2.3Briefly describe the term normal profit. The minimum earning required to prevent an entre preneur from leaving the market / where total cost is equal to total revenue (Accept any other correct relevant response\

2.2.4What would the impact on the market be if many firms leave this industry? The supply curve in the market will shift to the left / decrease in supply Market price will increase (Accept any other correct relevant

2.2.5Redraw the above graph and insert the average variable cost curve (AVC\ to clearly indicate the shut down point. Marking grid Correct drawing and labelling of AVC curve mark Correct labelling of the shutdow

2.3DATA RESPONSE

2.3.1In which sector is the cost b enefit analysis generally used Pub lic (1\

2.3.2Give any ONE redress method used by government to enforce redistribution of income. Affirmative action Empowerment Land restitution Land redistribution Property subsidies for RDP houses Accept any other correct rele

2.3.3Briefly describe the ter cost benefit a nalysis A technique used to compare social cost and b enefit of undertaking a project (Accept any other correct relevant response\ (2\

2.3.4Why is it necessary to do a cost benefit analysis for large projects? A cost benefit analyses will ensure: efficient allocation of scarce resources bjectivity in decision making process / evaluate social costs

2.3.5Why are some projects undertaken although the financial cost is very high? Government is concerned about efficient public s ervice rather than private co The long term social benefit is of greater importance

2.5Discuss the challenges a monopolist will face if excessively high prices are charged for the products The monopolist would not charge very high prices because increasin g the price might reduce the

Q3— Section header —

3.1Answer the following questions.

3.1.1Name any TWO types of pollution Air Land / environment Water Noise

3.1.2Why is international tourism important to the South African economy? Earns foreign exchange Contributes to the gross domestic product Create more jobs in the service sector (Ac cept any other correct relevant answer\

3.2DATA RESPONSE

3.2.1How many provinces showed a decline in domestic overnight trips? (1\

3.2.2Which institution comp the data above? Statistics South Afri ca / StatsSA (1\

3.2.3Briefly describe the term domestic tourism When people travel within the borders of their country (Accept any other correct relevant response\ (2\

3.2.4How could households in rural areas benefit from tourism? Earn a n income by rendering services such as cleaning of guest houses. Offering their services as tour guides. Production of arts and crafts for sale.

3.2.5Why is foreign tourism the fastest growing industry in South Africa? South Africa offers a world in one country (almost any experience avai lable\ The weak exchange rate encouraged tourists to enjoy a

3.3DATA RESPONSE

3.3.1Give an example of a business/industry that emits (releases\ high levels of carbon. Power stations Manufacturing plants ne producers Taxi business (Accept any other correct relevant response\ (1\

3.3.2Why does the state discourage the use of plastic bags Avoids pollution Plastic bags are not odegradable Protect the environment (Accept any other correct relevant response\ (1\

3.3.3Briefly describe the term environmental sustainability The ability of the environment to survive its use for economic activity /environmental susta inability refers to the maintenance of factors and practices that contribute to the quality of the

3.3.4How could greenhouse gasses lead to climate change? The greenhouse gases destroy the ozone layer which allows more heat to penetrate to the earth Greenhouse gases creates a blanket effect which traps heat

3.3.5Explain the positive impact of carbon tax on the environment. Carbon tax will impact positively on the environment by: requiring polluters to carry the external cost of their pollution business

3.4Differentiate between co nservation and preservation of the environment Conservation: Conservation deals with the sustainable use and management of natural resources to ensure that they are available for use by future generations

3.5

Q4— Section header —

4.1Answer the following questions

4.1.1State any TWO benefits to the government for levying taxes on tourists. To recover external costs To earn revenue to create jobs to reduce poverty\ To improve infrastructure

4.1.2What impact do maximum prices have on the mar ket Maximum prices create a shortage of goods in the market Producers can divert their products to the informal market (black market\ Lower income earners can afford the product

4.2DATA RESPONSE

4.2.1Identify the number of houses the market will prov ide if all resources where spent houses. 000 (1\

4.2.2How many schools should the govern ment provide to reach the social optimum allocation? 000 (1\

4.2.3Briefly describe the term market failure. When the free market is unable to allocate resources efficiently the best production outcome has not been achieved (Accept any other correct relevant response

4.2.4Why are markets reluctant to produce public goods such as roads? It requires a huge capital outlay which is cha llenging for the private sector It is difficult to charge higher prices and therefore profits are

4.2How government ensure macroeconomic stability through their involvement in production? Government can ensure macroeconomic stability in production by: sing the monetary and fiscal policy through interest ra

4.3DATA RESPONSES

4.3.1Name any ONE other World Heritage Site Mapungubwe Vredefort Dome Sterkfontein Caves (Cradle of Human Kind\ Robben island Richtersveld cultural and botanical landscape Acc ept any other correct

4.3.2What type of tourism is indicated in the data above? Cultural (1\

4.3Briefly d escribe the term indigenous knowledge system (IKS\ Knowledge that has practical application for daily su rvival for local communities /the history and uniqueness of certain destinations in a

4.3In what way can business use the knowledge of indigenous people to benefit tourism? They could create a cultural village for tourists to visit Tours into the area to observe the way of life, for example

4.3Why is infrastructure development important in promoting tourism? Tourists require basic services such as good roads and communication network to ensure an enriching experience Rural communities that have unique lifestyles require good

4.5Critically discuss the challenges countries face in reducing the production of hazardous waste Countries worldwide find it difficult to decrease the production of hazardous was te b producing goods in modern economies

Q5— Section header —

Q6— Section header —

Topics Identified

MicroeconomicsMacroeconomicsInternational Trade

Mark Allocation

Total150 marks

Sections30 + 40 + 40 + 40 + 40 + 40 + 40 = 270 marks

Paper information

SubjectEconomics

Year2019

SessionMay-June

TypeMemo

PaperPaper 2

LanguageEnglish

Pages20

Downloads4

Examination context

Decade2010s

Years ago7y

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

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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