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PROVINCIAL EXAMINATION

NOVEMBER 2022

GRADE 11

ECONOMICS

(PAPER 2)

TIME: 2 hours

MARKS: 150

14 pages

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 ECONOMICS 2
(PAPER 2) GRADE 11

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. In SECTION B only the first TWO
questions will be marked and in SECTION C only the first ONE.

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

4. Write the question number above each answer.

5. Read ALL 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 requirements of the questions.

9. Use only black or blue ink.

10. Non-programmable pocket calculators may be used.

11. Write neatly and legibly.

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 ECONOMICS 3
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SECTION A (COMPULSORY)

QUESTION 1 30 MARKS – 20 MINUTES

1.1 MULTIPLE-CHOICE QUESTIONS

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.

1.1.1 Elasticity of income is ... if Ey = 0

A relatively inelastic
B relatively elastic
C completely inelastic
D completely elastic

1.1.2 If the bank charges of Capitec Bank increases, the demand for FNB
products will ...

A increase.
B decrease.
C stay the same.
D stop.

1.1.3 The total cost curve always starts at ...

A the same point where total fixed cost ends.

B the same point where total fixed cost starts.
C the same point where total variable cost starts.
D the same point where total revenue starts.

1.1.4 If a firm in perfect competition raises its price, profits will ...

A remain unchanged.
B increase.
C be driven down to below zero.
D increase in quantity as income increases.

1.1.5 Which of the following legislations is NOT an environmental law?

A The Atmospheric Pollution Prevention Act

B The Conservation of Agricultural Act
C The Emissions Trading Act
D The National Water Act

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1.1.6 The ... encourages trade liberalisation by helping member countries draw
up, implement and monitor trade agreements.

A World Trade Organisation

B International Monetary Fund
C Millennium Development Goals
D General Agreement on Tariffs and Trade

1.1.7 Carbon dioxide that is emitted during the production of goods and
services is called ...

A the greenhouse effect.

B global warming.
C biodiversity.
D carbon emissions.

1.1.8 Achieving significant improvement in the lives of at least 100 million slum-
dwellers by 2020 was one of the goals of the …

A World Summit on Sustainable Development.

B Millennium Development.
C Kyoto Protocol.
D COP 17 Conference.
(8 x 2) (16)

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1.2 MATCHING ITEMS

Choose a description from COLUMN B that matches an 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.

COLUMN A COLUMN B
1.2.1 Substitutes A A resource is used at a faster rate than
the rate at which that resource can
1.2.2 Monopolistic competition regenerate

1.2.3 Economies of scale B The change in the firm’s total revenue

as a result of selling an extra unit of
1.2.4 Marginal revenue the output

1.2.5 Comparative advantage C A country is equipped to produce a

product better than other countries
1.2.6 Multinational corporations
D The more output a firm produces, the
1.2.7 Overexploitation more efficient it becomes and the cost
of producing each unit on average
1.2.8 Desertification decreases

E Turns productive farmland into non-

productive desert as a result of poor
land management

F There are many firms that produce

goods that are similar but not the
same

G Large business organisations that

produce and/or distribute goods and
services in countries throughout the
world

H If the cross-price elasticity of demand

is positive

I Takes place when natural habitats are

destroyed and natural resources are
depleted
(8 x 1) (8)

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1.3 TERMINOLOGY

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 This law states that total utility will increase with each additional unit
consumed, but at a slower rate, until total utility decreases due to the
decreased marginal utility of each unit

1.3.2 The products being offered are identical with no obvious differences in
quality

1.3.3 The money that is left over once the firm subtracts its total costs from
the total revenue

1.3.4 The number of permits needed to cover the carbon emissions of a

specific factory

1.3.5 A grouping of countries to get more control over the global economy

1.3.6 When the flow of residual emissions, resulting from the human activity,
exceeds the natural environment’s capacity to absorb them
(6 x 1) (6)

TOTAL SECTION A: 30

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SECTION B

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

QUESTION 2: MICROECONOMICS 40 MARKS – 30 MINUTES

2.1 Answer the following questions.

2.1.1 List TWO examples of fixed costs. (2 x 1) (2)

2.1.2 What would encourage a producer to continue increasing production?

(1 x 2) (2)

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

GRAPH A GRAPH B
P
P D

P
P

Q 0 Q
0 QD

2.2.1 Name any ONE type of price elasticity of demand. (1)

2.2.2 State the value of price elasticity of demand in graph A above. (1)

2.2.3 Briefly describe the term price elasticity of demand. (2)

2.2.4 How is cross elasticity of demand calculated? (2)

2.2.5 Explain why price elasticity of demand has a negative sign. (4)

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

MAHALA LAUNCHED – ALL STUDENTS IN SOUTH AFRICA GET

MICROSOFT OFFICE FOR FREE!

Microsoft South Africa and 2Enable are partnering up to offer all South African
school learners (ages 8 – 25 years) free access to Microsoft Office across all
your devices as well as 1TB of OneDrive. They are also trying to offer all
students printing services for free for them to be able to do any school tasks. It is
obtained through signing up at http://mahala.ms. Learners can share their
schoolwork and collaborate on all devices and platforms with familiar applications
and can always access files that update in real time.
[Source : https://www.schoolnet.org.za/news/mahala-launched-all-
students-in-south-Africa-get-Microsoft-office-for-free.]

2.3.1 Give ONE characteristic of a monopoly for Microsoft. (1)

2.3.2 Name any state-owned monopoly. (1)

2.3.3 Briefly describe the term patent. (2)

2.3.4 Why is Microsoft considered a monopoly? (2)

2.3.5 Explain barriers in a monopolistic market. (2 x 2) (4)

2.4 Discuss nature of the product and entry as characteristics of a perfect market. (8)

2.5 Analyse why the price of a product under perfect competition will be equal to the
lowest point on the long-run average cost curve. (8)
[40]

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 ECONOMICS 9
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QUESTION 3: CONTEMPORARY ECONOMIC ISSUES 40 MARKS – 30 MINUTES

3.1 Answer the following questions.

3.1.1 List any TWO countries referred to as ‘Asian Tigers’. (2 x 1) (2)

3.1.2 How are market-based methods for pollution control used? (1 x 2) (2)

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

TRADE LIBERALISATION BUT YOU'RE

GOING THE
WRONG WAY.
FREE
TRADE THE WORLD IS
ROUND. WE'LL
GET THERE.

[Source: www.cartoonstock.com]

3.2.1 Give an economic concept that can be associated with the phrase "The
world is round. We’ll get there." (1)

3.2.2 What does the abbreviation WTO stand for? (1)

3.2.3 Briefly explain the term of free trade. (2)

3.2.4 Explain the relationship between comparative advantage and free trade. (2)

3.2.5 How can free trade policy advantage countries? (4)

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

FISHING QUOTAS “DESIGNED TO SQUEEZE OUT THE POOR”

The quota system implemented by the government appears to be designed to

keep small fishing companies and poor fishers out, says an action group.

Hlanganani Fishing Business Forum chairperson, Mawethu Ndude said, “Firstly,

you have the bona-fide fishermen who failed to get quotas and are now sitting
without an income. Then you have the small guys who were given quotas, but the
costs of using those quotas are so high, they cannot make a living out of it.”Co-
ordinator, Pedro Garcia said, “Some allocations are just too small for people to
really make a living from and many bona-fide fishermen sit on the beach, while
people who have never been fishermen go out and catch.”

But Marine and Coastal Management spokesperson, Carol Moses said, “The hard
reality is that our marine resources are dwindling and it is impossible to allocate
rights to all. We are investigating various possible alternative job opportunities for
these communities. We are planning the development of harbours and we are
looking at the possibilities of ecotourism.”
[Source: www.iol.co.za]

3.3.1 Identify the need for government to impose fishing quotas, according to
the article above. (1)

3.3.2 Name ONE solution which government plans to implement to create

alternative jobs for the communities. (1)

3.3.3 Briefly define the term quotas. (2)

3.3.4 Outline ONE reason why the poor fisherman will not benefit from these
quotas. (2)

3.3.5 Explain how marine resources can be prevented from "dwindling".

(2 x 2) (4)

3.4 Discuss changes in employment conditions and changes in culture as

consequences of globalisation. (8)

3.5 Analyse the importance of taking care of forests for the economy and the
environment. (8)
[40]

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 ECONOMICS 11
(PAPER 2) GRADE 11

QUESTION 4: MICROECONOMICS AND CONTEMPORARY ECONOMIC ISSUES

40 MARKS – 30 MINUTES

4.1 Answer the following questions.

4.1.1 List TWO kinds of profits associated with a business. (2 x 1) (2)

4.1.2 Why is it important for us to sustain the environment? (1 x 2) (2)

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

PRICE MAKERS VS. PRICE-TAKERS

[Source: Businesstech 20210118] [Source:www.news24.com 20201026]

4.2.1 Name ONE market structure in which price-takers exist. (1)

4.2.2 Name any ONE type of market structure except the one identified in the
information above. (1)

4.2.3 Briefly describe the term homogeneous (2)

4.2.4 Why are consumers price-takers? (2)

4.2.5 Discuss the characteristics of an individual business. (2 x 2) (4)

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

LOSS OF BIODIVERSITY AND GLOBAL CLIMATE

CHANGE

Global climate change is occurring at an unprecedented rate today, mainly due to

an increased emission of greenhouse gases such as CO2. Global temperatures
have increased by about 0,6 – 0,7 °C and are predicted to further increase by
1,4 – 5,8 °C by the year 2100. Loss of biodiversity has become a serious issue in
many places around the world. Many factors such as habitat loss, degradation,
excessive nutrient load, air and water pollution, overexploitation and
unsustainable use of natural resources contribute to the loss of biodiversity.
[Source:www.climate.gov]

4.3.1 Name any ONE factor that contributes to the loss of biodiversity. (1)

4.3.2 Mention any ONE type of pollution NOT mentioned in the extract above. (1)

4.3.3 Briefly explain the term brown environmental issues. (2)

4.3.4 What is the main cause of climate change? (2)

4.3.5 How does climate change affect the economic environment? (2 x 2) (4)

4.4 Distinguish between the following trade groupings, BRICS and G20 countries. (8)

4.5 Why should marginal revenue be equal to marginal cost for profits to be
maximised? (8)
[40]

TOTAL SECTION B: 80

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 ECONOMICS 13
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SECTION C

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

Your answer will be assessed as follows:

MARK
STRUCTURE OF ESSAY
ALLOCATION
Introduction
The introduction is a low-order response.
• A good starting point would be to define or explain a concept or
key word that appears in the question.
Max. 2
• Do NOT include any part of the question in your introduction.
• Do NOT repeat any part of the introduction in the body.
• Avoid saying in the introduction what you are going to discuss in
the body.
Body
Main part: Discuss in detail/In-depth discussion/Examine/ Critically
discuss/Analyse/Compare/Evaluate/Distinguish/ Differentiate/
Max. 26
Explain/Assess/Draw a graph and explain/Use the graph given and
explain/ Complete the graph given/Debate
A maximum of 8 marks can be awarded for headings/examples.

Additional part: Give own opinion/Critically discuss/Evaluate/

Critically evaluate/Calculate/Deduce/Compare/Explain/Distinguish/
Interpret/Briefly explain/How?/Suggest/Analyse/Evaluate Max. 10
A maximum of 2 marks can be awarded for merely listing of
facts.
Conclusion
Any higher order conclusion must include the following:
• A wrap-up of the discussion of the topic without repetition of
facts already mentioned
• An own opinion or value judgement of the points discussed, with
Max. 2
examples to support your discussion
• Additional supporting information that strengthens your
discussion/analysis
• A contradictory viewpoint with motivation, if requested.
• Recommendations
TOTAL 40

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 ECONOMICS 14
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QUESTION 5: MICROECONOMICS 40 MARKS – 40 MINUTES

• With the aid of fully labelled diagrams, discuss the demand relationships of
substitute and complementary goods. (26 marks)

• Why would South Africans choose to use substitute sources of energy over coal
power? (10 marks) [40]

QUESTION 6: CONTEMPORARY ECONOMIC ISSUES

40 MARKS – 40 MINUTES

• Discuss, in detail, the causes of globalisation. (26 marks)

• How did globalisation negatively affect South Africa? (10 marks) [40]

TOTAL SECTION C: 40

TOTAL: 150

END