MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

MOPANI EAST DISTRICT

2023 ECONOMICS GRADE 12

REVISION BOOKLET

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

MAIN TOPIC: MACRO-ECONOMICS

1 CIRCULAR FLOW PART 1
QUESTION 1
1.1 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 number.
1.1.1 Earnings received from the export of goods and services are called …

A Leakages
B injections
C investments
D Taxes

1.1.2 The method used to derive total remuneration on factors of production is called
the … method.

A Production
B circular
C expenditure
D income
1.1.3 A measure used to indicate the economic prosperity of a country is called

the …

A gross domestic income.

B per capita national income.
C net national income.
D taxation

1.1.4 The total remuneration that the owners of production factors

receive is called national … A production.
B expenditure.
C exports.
D income.

1.1.5 Households in South Africa spend most of their income on …

A durable goods.
B semi-durable goods.
C non-durable goods.
D services.

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

1.1.6 The circular-flow model of an open economy shows the functioning of an

economy that includes the … sector.

A public
B business
C foreign
D domestic

1.1.7 Savings flow back into the circular flow as …

A investment
B government spending
C exports
D imports

1.1.8 The national aggregate that represents the value added in each
phase of production is called the …

A gross domestic expenditure.

B gross domestic product.
C gross national income.
D gross domestic income

1.1.9 In an economy where injections exceed leakages, the …

A production of goods and services will decrease.

B national income will increase.
C national income will decrease.
D gross value added in production will decline.

1.1.10 Long-term funds are borrowed or saved on the ... market.

A capital
B money
C foreign exchange
D goods

1.1.11 An open economy is best described as a … sector economy

A one
B two
C three
D four

1.1.12 Investment is an example of a/an ... in the circular flow model.

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

A leakage
B injection
C withdrawal
D loss

1.1.13 Production by the citizens of a country, locally and abroad, is called the …
product.

A gross national
B gross domestic
C net national
D net domestic

1.1.14 National income will increase when …

A G+I+X > S+T+M

B G+I+X < S+T+M
C G+I+X = S+T+M
D S+T+M > G+I+M

1.1.15 If the marginal propensity to consume (mpc) is 0,6 in a 2-sector model, the
marginal propensity to save (mps) will be …

A 4
B 6
C 9.4
D 0.4

1.1.16 The continuous flow of production, income and expenditure between

participants in the economy.
A business cycle
B economics equilibrium
C money market
D circular flow (16x2)

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

1.2 Choose a description from COLUMN B that matches the item in

COLUMN A. Write only the correct letter next to the question number

COLUMN A COLUMN B
1.2.1 Disequilibrium A. Spending by firms
1.2.2 Gross domestic B. prescribed by the United Nations to compile
product gross domestic product figures
1.2.3 Multiplier effect C. long-term financial instruments, for example
bonds
1.2.4 Households D. movement of income and expenditure between
participants in the economy
1.2.5 Leakages E. outflow of money from the economy
1.2.6 Capital market F. Total value of all goods and services produced
within the borders of a country within a
specified period
1.2.7 Marginal propensity G. A small initial change in spending produces a
to consume proportionately larger increase in national income
1.2.8 System of national
accounts H. Portion of income not consumed
1.2.9 Money flows I. spending that takes place irrespective of the
level of income
1.1.10 Autonomous J. owners of the factors of production
consumption
1.1.11 Real flows K. when leakages are more than injections

1.1.12 Investment L. proportion of their disposable incomes that

households spend
M. the flow of goods and services
(12x1)
1.3. Give ONE term for each of the following descriptions. Write only the correct term next the
question numbers in the ANSWER BOOK. Abbreviations, acronyms and examples will NOT be
accepted.

1.3.1. Primary participants and owners of the factors of production

1.3.2. A model which illustrates the flows between participants in the economy
1.3.3. The introduction of money in the circular flow
1.3.4. Market for short-term savings and loans
1.3.5. The total value of final goods and services produced within the borders of a country in
a given period
1.3.6. The process whereby a relatively small change in injections results in a proportionally
larger increase in national income

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

1.3.7. The sector that needs to be included for the economy to be regarded as an open
economy
1.3.8. Total market value of all final goods and services produced by
permanent residents of a country within a specified period.
1.3.9. An economy that excludes the foreign sector
1.3.10. The movement of goods and services as well as factors of production
1.3.11. The withdrawal of money from the circular flow
1.3.12. An economy that includes the foreign sector (12x1)
2 QUESTION 2 Answer all questions
2.1 Name any TWO examples of non-durable goods. (2)
2.2 Name any TWO methods to calculate Gross Domestic Product(GDP). (2)
2.3 Name any TWO examples of leakages. (2)
2.4 Name TWO markets that form part of the economic circular flow (2)
2.5 Name TWO examples of injections in the circular flow. (2)
2.6 Name the TWO financial markets in the circular-flow model (2)
2.7 Nam any two components of consumption function (2)
2.8 Name TWO items that convert Gross Value Added at factor costs to Gross
Value Added at basic prices. (2)
2.9 Name the TWO flows in the circular flow model. (2)
2.10 Name any TWO participants in a closed economy (2)

2.11 Name any TWO sectors that are used to calculate the Gross Value Added
at basic prices (2)

2.12 Name any two examples of secondary sector (2)

PART 2

1. Why are taxes regarded as leakages? (2)

2. How do we convert Gross domestic Product at a market price to Gross

National Product at a market price? (2)

3. Why are the households regarded as major economic participants in the circular flow? (2)

4. Why is the value of Gross Domestic Product always higher than the values of Gross

National Products.

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

PART 3:DATA RESPONSE QUESTIONS

1 Study the diagram below and answer the questions that follow.

1.1 What does letter A in the diagram above represent? (1)

1.2 Supply the label for B. (1)

1.3 Briefly describe the term durable goods. (2)

1.4 Why is the diagram above typical of a closed economic system? (2)

1.5 How important is the financial market and the foreign exchange markets
in the circular flow? (4)

2. Study the table below and answer the questions that follow.

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

2.1. Which method of calculation is depicted in the above-mentioned figures? (1)

2.2. What is the value of A? (1)

2.3. How is GDP at market prices converted to GNP at market prices? (2)

2.4. Calculate the GDP at market prices represented by letter B. (4)

3. Study the table below and answer the questions that follow.

3.1. Which method of calculation used in the above-mentioned figures. (1)

3.2. Name ONE example of goods on which the household spends its money. (1)
3.3. Briefly describe the term residual item. (2)

3.4. Calculate the value of A. Show ALL calculations. (4)

4. Study the table below and answer the questions that follow.

GROSS VALUE ADDED BY KIND OF ECONOMIC ACTIVITY

(GVA at constant 2015 prices)

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

2021 figures
(Rm)

Primary sector 295 203

Secondary sector 552 601

Tertiary sector 2 017 745

Gross value added at basic prices 2 865 548

4.1. Identify the base year from the table above. (1)

4.2. Name the problem that will be avoided when the method above is used
to determine the GDP figures above. (1)

4.3. Briefly describe the term secondary sector. (2)

4.4. Why was the tertiary sector the largest contributor to GVA figures in 2021?

4.5. Determine the value of the secondary sector as a percentage of GVA at basic
prices. (4)

5. Study the diagram below and answer the questions that follow.

5.1. What is depicted in the diagram above? (1)

5.2. Identify ONE example of a monetary flow. (1)
5.3. Briefly describe the term factor market. (2)
5.4. What is the role of the household in the economy above? (2)

6. Study the table below and answer the questions that follow.

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

6.1. Name ONE example of a semi-durable good? (1)

6.2. Identify the current base year used by the SARB to compile GDP figures. (1)
6.3. Briefly describe the term current prices. (2)
6.4. What is the importance of residual item when calculating the GDP figures
using the expenditure method? (2)
6.5. Calculate the percentage contribution of durable goods in the final consumption
expenditure in the year 2017. (4)

7. Study the graph below and answer the questions that follow.

7.1. Name any ONE sector involved in the economy above? (1)
7.2. What is the value of the mpc in the economy above? (1)
7.3. Briefly describe the term multiplier effect. (2)
7.4. What is the impact of a tax increase in the value of the multiplier? (2)
7.5. Use the formulas 1/mps to calculate the size of the multiplier. (4)

PART 3
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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

1. Distinguish between non-durable goods and durable goods (4x2) (8)

2. Describe the interaction between households and government in the circular flow (8)

3. Describe the relationship between Businesses and households. (8)

4. Differentiate between injections and leakages. (8)

5. Distinguish between real flows and money flows. (8)

6. Discuss the role of factor market in the circular flow (8)

7. Discuss the role of product market in the circular flow. (8)

8. Discuss the role of financial market in the circular flow. (8)
9. Differentiate between Gross Domestic product and Gross National Product. (8)

PART 3 HIGH ORDER QUESTIONS

1. How can the household, as an important participant in the circular flow model,
contribute to building the economy?

2. Evaluate the functioning of markets in the circular flow model

3. Calculate the change in aggregate income if there is an injection of R20 billion into
the economy with a marginal propensity to save of 0,3. Explain how the multiplier
effect could influence the government to create more jobs. Show ALL calculations.

4. Calculate the multiplier and its effect if the marginal propensity to consume (mpc)
is 0,6 and investment increases by R10 bn and briefly discuss this impact on the
national income. Show all the calculations.

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

BUSINESS CYCLES QUESTION1

1.1 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 number

1.1.1 Estimating unknown data based on a pattern of known data is called …

A. the amplitude
B. a trend
C. extrapolation
D. length

1.1.2 Negative economic growth for at least two consecutive quarters of the year is
known as a …

A. boom
B. depression
C. recession
D. recovery

1.1.3 Exogenous factors such as … can cause fluctuations in the level of economic
activity.

A. weather patterns
B. inflexibility of markets
C. demand patterns
D. indirect links

1.1.4 The point where economic contraction is at its lowest is called

a…

A. trough.
B. peak.
C. trend.
D. recovery

1.1.5 The new economic paradigm that relates to the smoothing of business
cycles is rooted in …-side policies.

A. public relations
B. Trade
C. international
D. demand-and-supply

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

1.1.6 The Reserve Bank uses the… policy to influence aggregate money
supply.

A. fiscal
B. monetary
C. budgetary
D. inflationary

1.1.7 An indication of long-term growth in the economy is referred to as

the …
A. trend line.
B. amplitude.
C. length.
D. trough.

1.1.8 A diagram that shows expansion and contraction periods of economic

activities is called a(n) … cycle.

A. business
B. economic
C. productivity
D. employment

1.1.9 The removal of unnecessary restrictions by legislation is known as …

A. regulation
B. decentralisation
C. centralisation
D. deregulation

1.1.10 Severity of cyclical fluctuations in business cycles is indicated by

…

A. amplitudes.
B. moving averages.
C. extrapolations
D. trend line

1.1.11 Fiscal policy is an action taken by government in respect of taxation and … to

influence economic activity.

A. exchange control
B. money supply
C. expenditure
D. credit control

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

1.1.12 A period when there is a general increase in economic activities is known as

a(n) …

A. downswing
B. upswing
C. depression
D. recession

1.1.13 Indicators that change at the same time and in the same direction as the
economy changes are known as … indicators.

A. leading
B. lagging
C. composite
D. co-incident

1.1.14 The difference in the value of the output at the peak and the value of the
output at the trough of a business cycle is known as the …

A. length.
B. trend line.
C. amplitude.
D. real output.

1.1.15 The activity that minimizes the effects of short-term economic fluctuations is
called …

A. amplitude
B. a trend
C. moving average
D. extrapolation

1.1.16 The point where economic expansion is at its highest

A. boom
B. peak
C. recovery phase
D. trough (16x2)

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

1.2 Choose a description from COLUMN B that matches the item in COLUMN
A. Write only the letter next to the question number

COLUMN A COLUMN B
1.2.1 Moving averages A. measures the distance of oscillation of a
variable from the trend line to the peak and
trough
1.2.2 Real business B. Removal of unnecessary laws, by-laws and power
cycle imbalances that inhibits free operations

1.2.3 Monetary policy C. the peak of economic activities

1.2.4 Prosperity D. Economic fluctuations emanating from outside the
market system
1.2.5 Deregulation E. give advance warning of changes in economic
activity
1.2.6 Amplitude F. uses taxation to influence the level of expenditure
1.2.7 Lagging indicator G. evens out short-term fluctuation in economic data

1.2.8 Exogenous H. The upper turning point of the business cycle

factors
1.2.9 Leading I. Does not change until after the business cycle
indicators has changed
1.2.10 Peak J. uses interest rates to influence the level of
expenditure
K. obtained when the effects of irregular events and
seasons are removed from time series data

(10x1)

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

1.3 Give ONE term for each of the following descriptions. Write only the
correct term next the question numbers in the ANSWER BOOK.
Abbreviations, acronyms and examples will NOT be accepted.
1.3.1 The turning point in the business cycle where the level of economic
activities is at its lowest
1.3.2 A summary of the value of different indicators of the same type into a single
value
1.3.3 A negative economic growth rate for at least two consecutive quarters
1.3.4 A policy that targets taxes and government expenditure to influence
economic activity
1.3.5 Predicting the future economic activities using facts or information that is
known
1.3.6 It measures the distance between the peak and the trough of a business
cycle
1.3.7 A fluctuation in economic activities over a period of time
1.3.8 Measures the duration of the business cycle from peak to peak
1.3.9 Removal of unnecessary laws and regulations to improve the functioning of
the economy
1.3.10 Used by the RBSA through interest rates and money supply to influence the
economy
1.3.11 It illustrates (shows) the relationship between unemployment and
inflation
1.3.12 Factors that originate outside of the economy that cause
business cycles (12x1) (12)

QUESTION 2 Answer all questions

2.1 Name TWO instruments of fiscal policy (2)

2.2 Name any TWO monetary policy instruments used by the South African
Reserve Bank. (2)
2.3 Name any TWO phases of a business cycle. (2)
2.4 Name TWO types of business cycles that occur in a market economy (2)
2.5 Name any TWO types of business cycle indicators used in forecasting
economic activities (2)
2.6 Name two turning points of the business cycle
2.7 Name any two factors of the supply-side policies that can be used to
influence economic growth (2)

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

2.8 List two economic aspects illustrated by the Phillip’s curve (2)

DATA RESPONSE QUESTIONS

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

2.3.1. What is depicted on the graph above? (1)

2.3.2. Identify ONE economic phenomenon that is demonstrated by the graph
above? (1)

2.3.3. Briefly describe the term business cycle. (2)

2.3.4. What impact does a decrease in unemployment have on the economy? (2)
2.3.5. How can the government use fiscal policy to achieve economic growth? (4)
PARAGRAPH QUESTIONS
2.4. Discuss reduction of costs as a supply-side policy. (4x2)(8)
2.5. How can the government use fiscal policy to stimulate economic growth through
demand side?

ADDITIONAL QUESTIONS (REFER TO THE NOTES)

DATA RESPONSE QUESTIONS

1. Study the diagram below and answer the questions that follow:

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

1.1. Identify the letter that represents the trend-line in the diagram above. (1)
1.2. What does letter D in the graph above represent? (1)
1.3. Briefly define the term Business Cycle. (2)
1.4. Explain the level of economic activities during a recession. (2)
1.5. How can the length of business cycle be used in forecasting? (4)

2. Study the diagram below and answer the questions that follow.

2.1. Identify the vertical distance between A and B represent in the graph above. (1)

2.2. Name the horizontal distance between A-C in the graph above? (1)
2.3. Briefly describe the term forecasting. (2)
2.4. Explain the importance of GDP as an economic indicator? (2)

2.5. How are leading indicators used in forecasting economic activities? (4)

3. Study the diagram below and answer the questions that follow.

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

3.1. Identify the amplitude from the diagram above. (1)

3.2. What does the dotted line from T2 to T3 in the graph above represent? (1)
3.3. Briefly describe the term real(actual)business cycle represent. (2)
3.4. How can extrapolation be used in predicting business cycles? (2)
3.5. What can the South African Reserve bank do to dampen an overheating economy? (4)

PARAGRAPH QUESTIONS
1. Discuss the endogenous approach as a cause of business cycles. (4 x 2) (8)

2. Explain exogenous approach as a cause of business cycles. (4 x 2) (8)

3. How can the South African government use fiscal policy to stimulate the economy? (8)

4. Discuss the monetary policy instruments used by the South African Reserve
Bank in stabilising the economy. (4 x 2) (8)

5. With an aid of diagram, discuss the relation between inflation and unemployment. (4X2) (8)

6. Use a well labelled graph to explain the effects of demand-and-supply-side

policies on prices. (8)

7. Explain economic activity during the recovery phase of the business cycle. (4 x 2) (8)

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

8. Explain economic activity during the prosperity phase of the business cycle (4 x 2) (8)

9. Explain economic activity during the recession phase of the business cycle. (4 x 2) (8)
10. Explain economic activity during the depression phase of the business cycle. (4 x 2)
(8)
11. With the aid of a correctly labelled graph, explain the effects of demand-side policies to
stimulate economic activity during a recession. (4 x 2) (8)

12. How can the Reserve Bank use a demand-side policy to revive (expand)
the economy? (4 x 2) (8)

13. How can the trend line be used in forecasting of business cycles? (4 x 2) (8)

14. How can amplitude be used in forecasting of business cycles? (4 x 2) (8)

15. How can length be used in forecasting of business cycles? (4 x 2) (8)

16. How can extrapolation be used in forecasting of business cycles? (4 x 2) (8)

17. Briefly explain lagging indicators and composite indicators as features underpinning
forecasting of business cycles. (4 x 2) (8)

18. Use the GDP data below to explain the importance of moving averages in the forecasting of
business cycles.
YEAR 2010 2011 2012 2013 2014 2015 2016
GDP 5 8 9 11 4 6 10
(bn)

19. Analyse the relationship between inflation and unemployment (8)

How can the monetary policy contribute to economic growth? (8)

20. Explain the importance of moving averages in the forecasting of business

cycles. (8)

21. Analyse how deregulation benefits households. (8)

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

TOPIC 3: PUBLIC SECTOR

QUESTION 1
1.1 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 number

1.1.1 The mini-budget that covers a period of three years, which is tabled in October each
year, is called the …

A. main budget
B. long term expenditure frame work
C. short-term budget
D. medium term budget policy statement

1.1.2 South African Defence Force services is provided by ... government

A. district
B. local
C. provincial

D. national

1.1.3 The state aims towards a more equal distribution of income by using a … personal
income tax system
A. proportional
B. regressive
C. progressive

D. constant

1.1.4 When the government sells more than 50% of the state-owned shares of a public
enterprise, it is called …

A. privatisation.
B. nationalisation.
C. free trade.
D. circulation

1.1.5 The government is responsible for … sector provisioning.

A. private
B. foreign
C. public
D. financial
1.1.6 Public goods for which consumers have to pay are known as … goods.

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

A. community
B. private
C. collective
D. inferior

1.1.7 Goods characterised by non-rivalry and non-excludability are known as … goods.

A. public
B. common
C. private

D. D. normal

1.1.8 Large public corporations or business entities in the public sector are known as
A. corporates.
B. businesses.
C. parastatals.
D. households

1.1.9 Goods and services that benefit the society are called ... goods.

A. demerit
B. harmful
C. common
D. merit
1.1.10 The Laffer curve shows the relationship between …

A. tax revenue and tax rate B.

income and expenditure
C. nominal and real figures
D. tax revenue and wages

1.1.11 Which ONE of the following is presented in October to inform parliament of

changes in the budget since February?

A. main budget
B. medium-term budget policy statement
C. medium- term expenditure framework
D. national budget

1.1.12 The … government encompasses metropolitan, districts and municipalities.

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 MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

A. local
B. provincial
C. national
D. central (12x1)

1.2 Choose a description from COLUMN B that matches the item in

COLUMN A. Write only the letter next to the question number

COLUMN A COLUMN B
1.2.1 Economic equity A. a system of government with complicated
administrative procedures and rules which
causes delays
1.2.2 Nationalisation B. transfer of ownership from the private sector to
the public sector
1.2.3 Privatisation C. An official in a government department
1.2.4 Medium term D. Taxes that cannot be shifted by the taxpayer to
expenditure someone else
framework
1.2.5 Bureaucracy E. provided by the government for use by all
members of society, for example public libraries
1.2.6 Public goods F. when a state-owned business is sold to a private
sector enterprise
1.2.7 Demerit goods G. progressive tax scales are used
1.2.8 Direct taxes H. Shows income and expenditure estimates for
three years
I. Harmful goods
(8x1)
1.3. Give ONE term for each of the following descriptions. Write only the correct term next
the question numbers in the ANSWER BOOK. Abbreviations, acronyms and examples
will NOT be accepted

1.3.1 The document showing government's anticipated revenue and estimated expenditure for the
coming fiscal year.
1.3.2 The curve that shows the relationship between tax rates and tax revenue
1.3.3 Goods that are harmful to society, for example cigarettes
1.3.4 An increase in the real gross domestic product
1.3.5 The main source of revenue to the state
1.3.6 Businesses owned wholly or partly by the state and run by a public authority.
1.3.7 Goods and services, like education, that benefit society as a whole.
1.3.8 A transfer of functions and ownership from the public sector to the private sector.
1.3.9 Taxes levied on the sale of goods and services.
1.3.10 Implies that prices do not change much over time.
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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

(10x1)
QUESTION 2 Answer all questions
2.1 Name any TWO macroeconomic objectives of the state. (2)

2.2 Give any TWO reasons for public sector failure. (2)

2.3 Give any TWO examples of indirect taxes. (2)

2.4 Name any TWO sources of state revenue. (2)

2.5. Name any TWO problems of public sector provisioning (2)

1. DATA RESPONSE QUESTIONS

1.1. Name the biggest contributor of revenue to the State (1)

1.2. Identify ONE method that government can use to make brown bread more
affordable for the consumer. (1)
1.3. Briefly describe the term indirect tax. (2)
1.4. What is the financial implication of a 1% increase in VAT for the government? (2)

1.5. How can the effective use of budgets help provinces in efficient service delivery?
(2 x 2) (4)

2. Study the graph below and answer the questions that follow

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

2.1. Identify the curve in the graph above. (1)

2.2. At what tax rate will government revenue be maximised? (1)

2.3. How much revenue will the government receive if the tax rate is 100%? (2)

2.4. What effect will a decrease in the tax rate from 65% to 45% have on tax revenue?
(2)

2.5. What consequences could a 1% VAT increase have on the different role players in the
South African economy? (2 x 2) (4)

PART 2 High order questions

1 How can inefficiencies that contributed towards public sector failure be

solved? (8)

2 How will corruption impact negatively on the efficiency of the government? (8)

3 Evaluate the provisioning of public goods and services in South Africa. (8)
4 Evaluate taxation as part of the government's strategy to grow the
economy (8)

5 With the aid of the well labelled Laffer curve, explain the impact of the tax
rate increase on state revenue (8)
6 How can the South African government improve the efficiency of service
delivery? (8)

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

7 Evaluate the government’s plan to divide Eskom in to three different units (8)
8 How does public sector failure affect the economy? (8)
9 How can South African municipalities improve efficiency in service delivery?
(8)
10 How can taxation be used to stimulate employment in South Africa? (8)

PART 3 ESSAYS
1 Discuss in detail the macro economic objectives of the government. (26)

How successful is the main budget in achieving its economic goals? (10)

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

TOPIC 4: INTERNATIONAL TRADE

QUESTION 1
1.1 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 number.
1.1.1 Countries with fundamental balance of payment problems can apply for
financial support from the

A. International monetary fund

B. Federal bank
C. Reserve bank
D. Imperial Bank

1.1.2 The purchasing or selling of equities forms part of … investments in the

balance of payments.

A. portfolio
B. direct
C. current
D. net gold

1.1.3 When a country's total imports exceeds its total exports it is referred to as a …
on the trade balance.

A. surplus

B. deficit

C. equilibrium

D. constant

1.1.4 The exchange rate system used by South Africa is called the ...exchange rate
system.

A. fixed
B. managed floating
C. free-floating
D. gold standard

1.1.5 The term used to compare a country's export prices with its import prices by
means of indices is called the …

27
MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

A. balance of payments
B. terms of trade
C. balance of trade
D. exchange rate

1.1.6 The financial account in the balance of payments records transactions

related to …

A. production.
B. merchandise exports.
C. net gold exports.
D. assets and liabilities

1.1.7 Economies of scale are associated with …

A. mass production
B. limited output
C. long-term average cost increases
D. increased wastage

1.1.8 Where one country can produce more goods or services than another country
within a given time period it is called …

A. comparative advantage
B. absolute advantage
C. terms of trade
D. free trade

1.1.9 A supply reason for international trade is/are …

A. income levels
B. preferences and tastes
C. the size of the population
D. labour resources

1.1.10 The balance of payment has … account(s).

A. two
B. one
C. three
D. four

1.1.11 If country A is able to produce both maize and tea at a cheaper cost than
countries B and C, it is said to have a/an … advantage
28
MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

A. absolute
B. best
C. restrictive
D. comparative

1.1.12 The type of investment that is known as “hot money” is …

A. an investment in equities
B. an investment in real estate
C. a trade credit
D. a short term investment (12x2)

1.2 Choose a description from COLUMN B that matches the item in COLUMN A.
Write only the letter next to the question number

COLUMN A COLUMN B
1.2.1 Terms of trade A. An increase in the price of the currency in
terms of another currency due to market
forces
1.2.2 Free floating B. deliberate decrease in the value of the
currency in terms of another currency
1.2.3 Balance of payments C. exchange rate system where the value of the
currency is determined by market forces only
1.2.4 Special drawing rights D. Buying and selling of equities/ shares
1.2.5 Devaluation E. decrease in the value of the rand in terms of
the pound due to market forces
1.2.6 Appreciation F. price of one country's currency in terms of
another country's currency
1.2.7 Portfolio investment G. a statement of a country's transactions with
the rest of the world
1.2.8 Exchange rate H. compares a country's export prices with its
import prices by means of an index

I. Gives member countries the opportunity to

obtain financial support from IMF
(8 marks)

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

1.3 Give ONE term for each of the following descriptions. Write only the correct
term next the question numbers in the ANSWER BOOK. Abbreviations,
acronyms and examples will NOT be accepted

1.3.1 An account in the balance of payments that shows records of investments

by South Africans in other countries
1.3.2 The authorities deliberately increase the value of the currency
1.3.3 Account in the balance of payments that records all international
transactions relating to production, income and expenditure
1.3.4 A set of accounts that shows a systematic record of the trade and financial
transactions between a country and the rest of the world
1.3.5 The market engaged in the buying and selling of foreign currencies
1.3.6 The value of a country's currency exchanged for another currency
1.3.7 Compares a country's export prices to its import prices by means of indexes
1.3.8 An increase in the price of a currency in terms of another currency due to
market forces
1.3.9 The value of goods exported minus the value of goods imported
1.3.10 The exchange of goods and services across borders of the country
1.3.11 A situation where one country can produce goods or services cheaper than
another country
1.3.12 Money received without any productive services rendered. (12)

QUESTION 2

2.1. Name TWO items in the financial account of the balance of payments. (2)
2.2. Name TWO supply reasons for international trade. (2)
2.3. Name TWO types of exchange rate system (2)
2.4. Name any TWO reasons for a demand for foreign currency, such as US dollars
2.5. Name any TWO demand reasons for international trade (2)
2.6. Name any TWO effects of international trade (2)

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

ACTIVITY 2

2.1. Study the graph below and answer questions that follow:

EXCHANGE
RATE
RANDS
PER

FOREIGN EXCHANGE

DOL
LAR

2.1.1 Which market is depicted by the graph above? (1)

2.1.2 What effect does the shift in demand have on the price of dollars? (1)

2.1.3 Briefly describe the term exchange rate. (2)

2.1.4 Explain the negative effect of a depreciation of currency in the economy. (2)

2.1.5 How can an increase in the demand for dollars negatively affect the South
African economy? (4)
2.4 Discuss by means of a fully labelled graph, the effect on the value of the rand if

there is a sharp increase in the number of South African tourists visiting the USA.
(8)

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

ACTIVITY 3

3.1 Study the table below and answer the questions that follow:

FOREX

CURRENCY 1 ZAR INVERSE

Japanese 8 4766 R0.118

EURO 0 0685 R14.5992

British Pound 0 058 R17.2267

US Dollar 0 0748 R13.3641

3.1.1 What does ZAR above represent? (1)

3.1.2 Which currency is the most expensive for South African rand according to the

table above? (1)

3.1.3 Briefly describe the term current transfers. (2

3.1.4 Explain the primary role of foreign exchange market? (2)

3.1.5. Calculate how much would be paid in rands, if a jacket that cost 105 was
bought. Show all calculations. (4)
3.2 Differentiate between a free-floating exchange rate system with a managed
floating exchange rate system. (2 x4) (8)

ACTIVITY 4

4.1 Study the table below and answer the questions that follow:

SOUTH AFRICA: TERMS OF TRADE

32
MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

Year Index of Index of export Terms of trade

import prices prices

2017 141 171 121.3

2018 153 191 124.8

2019 163 200 A

2020 179 214 119.6

[Adapted: SARB Quarterly Bulletin, December 2020

4.1.1 Identify the index of export prices of 2018 from the graph above. (1)

4.1.2 What is the trend in the index of import prices? (1)

4.1.3 Briefly describe the term ‘terms of trade’.

(2)

4.1.4 Briefly explain why an increase in the terms of trade will have a positive effect
on the welfare of the country. (2)
4.1.5 Calculate the terms of trade for 2019 (A). Show ALL calculations. Round

off your answer to ONE decimal place. (4)

4.4 How does an improvement in the terms of trade influence the balance on the current
account. (8)

33
MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

ACTIVITY 5
5.1 Study the graph below and answer the questions that follow:

MARKET US$
FOR DOLLAR
EXCHA
NGE
R

R
/
1
5

1
4

QUANTITY OF US DOLLAR

5.1.1 Identify the demand curve that indicates an increase in the demand for dollars. (1)

5.1.2 What type of exchange rate system is currently used in South Africa? (1)

5.1.3 Briefly describe the term devaluation. (2)

5.1.4 Explain ONE factor that can influence the demand for the dollar. (2)

5.1.5 What is the effect on the rand when there is a decrease in the demand for dollars?
(4)

34
MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

ACTIVITY 6

6.1 Study the cartoon below and answer the question that follow .

EXCHANGE RATES

6.1.1 Identify the currency used in Japan. (1)

6.1.2 Which currency is commonly used when countries trade? (2)
6.1.3 Briefly describe the term revaluation (2)
6.1.4 Explain the impact of trade when countries currency depreciates. (4)
6.1.5 How does a country devalue its currency? (4)
6.4 How can the government manipulate the exchange rate? (8)

PART 2 High order questions

1 Assess how an increase in import prices and an increase in export prices

(terms of trade) will affect the South African economy. (8)
2 How can the Reserve Bank reduce the deficit on the balance of payments? (8)

3 How can imports be targeted to reduce the deficit on the balance of trade
in South Africa? (8)

35
MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

3. Explain, by means of a neatly labelled graph, the effect on the value of the rand
if there is a sharp increase in the number of South African tourists visiting the USA. (8)

4. How is the South African economy influenced by the effects of international trade? (8)

5. Evaluate the effectiveness of the methods used to correct the balance of payments
disequilibria. (8)
6. How effective is international trade in the world economy? (8)
7. How does an improvement in the terms of trade influence the balance
on the current account? (8)

PART 3 ESSAY

• Discuss in detail the reasons for international trade. (26)

• How does efficiency impact on international trade? (10)

PROTECTIONISM AND FREE TRADE

LOW ORDER QUESTIONS
QUESTION 1

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

1.1 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
e.g. 1.1.6 E.

1.1.1 Economic integration where member countries agree on a common

economic policy is called a/an
A customs union.
B free trade area.
C economic union.
D
common market

1.1.2 The international organisation that reduces tariffs and other trade
barriers to liberalise trade is called the

A World Trade Organisation.

B International Monetary Fund.
C World Bank.
D World Health Organisation.

1.1.3 One of the member countries of the BRICS Protocol is …

A Japan
B China
C England
D Italy

1.1.4 The practice of selling goods in a foreign country at lower prices than in
the country of origin is known as …

A exportation.
B importation.
C dumping.
D protectionism

1.1.5 When the state uses tariffs to discourage imports it is called …

A export promotion.
B protectionism.
C monetary policy.
D Fiscal policy

1.1.6 Newly established firms that still need protection are called … industries

A competitive
B strategic
C declining
D infant
1.1.7 When import duties are imposed as a percentage of the value of the imported
goods, it is known as … duties.

37
MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

A ad
B valorem
C specific
D
composite
average
1.1.8 An argument in favour of protection of local industries is…

A unstable wage levels

B prevention of dumping
C fewer job opportunities
D low standard of living (8x2) (16)

1.2 Choose a description from COLUMN B that matches the item in COLUMN
A. Write only the letter next to the question number.

COLUMN A COLUMN B

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

1.2.1 BRICS A trade policy that encourages the

production of locally manufactured
goods to be sold abroad B
1.2.1 Dumping removal of trade barriers

C a trade agreement between a group of

1.2.3 Protectionism emerging markets

D selling goods in another country at

1.2.4 Export promotion very low prices with which the local
industry
cannot compete
1.2.5 Import substitution
E trade policy that tries to keep the
domestic economy safe by restricting the
1.2.6 Trade liberalisation import of goods and services
F trade involves the exchange of goods
or services across different countries in the
world
G trade policy that leads to an increase
in local production
(8x1) (8)
1.3 Give ONE term for each of the following descriptions. Write only the term
next to the question numbers in the ANSWER BOOK. Abbreviations,
Acronyms and examples will NOT be accepted

1.3.1 The provision of incentives to encourage local businesses to produce

goods to sell to other countries

1.3.2 The movement of imports and exports between countries without any
restrictions
1.3.3 When a product is sold on a foreign market at a price that is lower than the
cost of production in the country of origin

1.3.4 A trade policy which promotes the replacement of imported goods with
locally produced goods
1.3.5 A tariff imposed as a percentage of the value of goods imported

1.3.6 A tariff based on a fixed amount per unit, weight or size that is levied on
imported goods

1.3.7 A trade policy that discourages imports to guard domestic industries from
harmful foreign competition
1.3.8 Legislation aimed to assist the economies of African countries and to
improve their relations between the regions and the United States
(8x1) (8)
QUESTION 2

2.1 Mention TWO methods used to promote exports (2x1) (2)

39
MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

2.2. Name any TWO methods of import substitution. (2x1) (2)

2.3 Name any TWO forms of economic integration. (2x1) (2)

40
MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

GROWTH AND DEVELOPMENT

PART 1 LOW ORDER QUESTIONS
QUESTION 1
1.1 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
e.g. 1.1.6 E.

1.1.1 The act of returning land to those whose land was taken from them during
apartheid era is known as
A land distribution
B land restitution
C land development
D affirmative action
1.1.2 Economic growth is measured in terms of ---- GDP
A per capita
B real per capita
C nominal
D real
1.1.3 Economic indicators relating to prices express ----
A real income
B inflation
C unemployment
D growth

1.1.4 An international benchmark using health, level of education and income level
per capita, to compare economic development in countries is called …

A the Human Development Index.

B the Gross National Income per capita.
C the North-South divide.
D millennium goals.

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

1.1.5 Which strategy failed in its objective to halve poverty and

unemployment by 2014?

A New Growth Path (NGP)

B Reconstruction and development program
C Accelerated and Shared Growth Initiative for South Africa (AsgiSA)
D National Development Plan (NDP)
1.1.6 An improvement in the standard of living of the country's
citizens refers to …

A economically active population

B economic growth
C growth and development
D economic development

1.1.7 Lowering the repo rate can be seen as a … approach to economic

growth.

A demand-side
B banking
C fiscal
D value-added

1.1.8 An example of a monetary policy approach used to promote

economic growth and development is known as …

A properties subsidies.
B open market transactions.
C wealth taxes
D land redistribution

1.1.9 Decreasing the repo rate can be seen as a …

approach to economic growth.

A value added
B supply-side
C fiscal
D demand side

1.1.10 The growth and development policy that aims to eliminate poverty
and reduce inequality by 2030, is known as the …

A National Development Plan.

B Reconstruction and Development Programme.

42
MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

C Growth, Employment and Redistribution Programme.

D Accelerated and Shared Growth Initiative for South Africa.

1.1.11 The demand-side policy relates to …

A a reduction in costs.
B improving the efficiency of inputs.
C the influence on inflation and unemployment.
D improving the efficiency of markets

1.1.12 Economic development is measured in terms of the …

A per capita gross domestic product.

B increase in the productive capacity.
C nominal gross domestic product.
D money supply

1.1.13 Which government policy seeks to eliminate poverty and reduce

inequality by 2030?

A New Growth Path

B National Development Plan
C Expanded Public Works Programme
D Reconstruction and Development Programme

1.1.14 Cash grants paid out to the poor form part of the … policy.

A monetary
B growth
C fiscal
D economic

1.1.15 The North-South divide can also be referred to as the … gap.

A development
B inflation
C monetary
D supply Nov
2017
1.1.16 Monetary policy focuses on … and the aggregate money supply

A income
B interest rates
C taxation
D investment

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

1.1.17 Money paid by the government to businesses as incentives

to decrease their cost of production is known as …

A sureties.
B tariffs.
C subsidies
D taxes
1.1.18 Aggregate supply can be stimulated through a government
policy of …
A reducing production costs.
B limiting the efficiency of inputs.
C lowering the productivity of factors of production
D increasing taxes

1.1.19 Social grants to the citizens of South Africa forms part of

the … policy.

A monetary
B trade
C growth
D fiscal

1.1.20 A nationwide government intervention to create employment

using labour-intensive methods is known as the …

A Black Economic Empowerment Programme.

B National Skills Development Strategy.
C Expanded Public Works Programme.
D Joint Initiative on Priority Skills Acquisition.

1.1.21 Removal of unnecessary laws and regulations to improve the

functioning of the economy is

A deregistration
B distribution
C restitution
D deregulation

1.1.21 The percentage of the population living in poverty in a country

is indicated by …
A the Gini coefficient.
B life expectancy.
C per capita gross domestic product.
D the headcount index. (22x2) (44)

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

1.2 Choose a description from COLUMN B that matches the item in

COLUMN A. Write only the letter next to the question number.

COLUMN A COLUMN B
1.2.1 Prime rate A the well-being of people determined by
health, education and income
1.2.2 Human capital
B focus on the acquisition of skills
1.2.3 Globalization
C the measure of interest which banks charge
1.2.4 North/ South divide on loans to their most creditworthy clients

1.2.5 JIPSA D the process of increased international

cooperation and communication leading to
1.2.6 Human Development international trade
Index
E people and their skills required for
1.2.7 Deregulation production

1.2.8 Wealth tax F the removal of laws, regulations and bylaws

by government

G levied on properties according to their

market value

H improvement in the standard of living of the

majority of people

I the economic and political developmental

gap between the rich and poor countries

(8x1) (8)

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

1.3 Give ONE term for each of the following descriptions. Write only the term
next to the question numbers in the ANSWER BOOK. Abbreviations,
Acronyms and examples will NOT be accepted

1.3.1 An improvement in the quality of life of the majority of people

1.3.2 Projects to fill the infrastructure gaps and needs in terms of population
growth.

1.3.3 The worldwide interaction of economies, with trade as a key element

1.3.4 Return of land to those who have lost it due to discriminatory laws of
the past

1.3.5 The removal of unnecessary laws and other barriers to competition in

the economy

1.3.6 The process that focuses on the improvement of people's standard of

living

1.3.7 The Act that promotes equal job opportunities for all

1.3.8 The increase in the standard of living of the people over a period of
time

1.3.9 The economic value of the labour force (9x1) (9)

QUESTION 2

2.1 Name any TWO strategies or initiatives to growth and development

used in South Africa. (2x1) (2)
2.2 Name any TWO redress policies that South Africa has used since
1994. (2x1) (2)
2.3 Name any TWO growth strategies used in South Africa. (2x1) (2)
2.4 Name any TWO monetary policy instruments used by the Reserve
Bank (2x1) (2)
2.5 Name any TWO aspects addressed by the North-South divide. (2x1) (2)
2.6 Give any TWO benefits of the Expanded Public Works Programme
(EPWP). (2x1) (2)

46
MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

PART 2
ESSAYS
1 Discuss the demand-side approach in promoting economic growth. (26)
Evaluate the success of the expanded public works programme to reduce poverty
and unemployment. (10 marks)

2 Discuss the following South African growth and development strategies in

detail:
• Reconstruction and Development Programme (RDP) (6)
• Growth, Employment and Redistribution (GEAR) (4)
• National Skills Development Strategy (NSDS) (4)
• The New Growth Path (NGP) (4)
• National Development Plan (NDP) (4)
• Broad-Based Black Economic Empowerment (BBBEE) (4)
(26)
Evaluate the successes or failures of the NSDS, NGP and NDP
Strategies in South Africa. (10)

47
MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

REGIONAL DEVELOPMENT
PART 1 LOW ORDER QUESTIONS
QUESTION 1
1.1 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 e.g.
1.1.6 E.

1.1.1 SMMEs usually create jobs for ---- unemployed people

A seasonally
B frictionally
C structurally
D technologically
1.1.2 The component of the Department of Economic Development that provides
finance to industrial development projects as well as researching and
leading new industries is called the …

A Industrial Policy Action Plan.

B Industrial Development Corporation.
C Industrial Development Programme.
D Spatial Development Programme.
1.1.3 The industrial policy that focuses on economic development in specific
areas is called

A centralisation.
B integration.
C decentralisation.
D international cooperation.

1.1.4 A strategy to strengthen institutional capacity to deliver services

that will facilitate development

A Industrial Development Zone

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

B Integrated Manufacturing Strategy

C Regional industrial development
D Skills Support Programme

1.1.5 A project where the state provides the infrastructure and

businesses provide capital to establish a business venture is
called a …
A strategic investment programme.
B business process service.
C public-private partnership.
D Small and Medium Enterprise Development Programme.
1.1.6 The Global Competiveness Index (GCI) is compiled annually by the
…

A Human Development Index.

B International Monetary Fund.
C World Bank.
D World Economic Forum

1.1.7 A cash incentive that aims to provide investment in the training of the
South African labour force to gain new expertise, is called the …

A Critical Infrastructure Programme.

B Skills Support Programme.
C Custom Free Incentives.
D Small Business Support Programme

1.1.8 The Department of Trade and Industry initiative that focuses on improving
competitiveness in production is called the …

A National Industrial Policy Framework.

B National Research and Development Strategy.
C Integrated Manufacturing Strategy.
D Small Business Support Programme.

1.1.9 A physically enclosed area next to a harbour or airport where

production for exports is encouraged through incentives, is known as
the …

A spatial development initiatives.

B industrial development zone.
C special economic zone.
D foreign investment grant.

1.1.10 A piece of land that forms a passageway that allows access from
one area to another and is part of regional development is called
a…

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

A corridor.
B custom
C freeway.
D zone

1.1.11 Geographical areas that have a wider industrial development

objective and which can be located anywhere to promote cluster
development are called …

A corridors.
B Special Economic Zones (SEZs).
C manufacturing zones.
D infrastructure
1.1.12 The institution that monitors empowerment and transformation
through a code of good practice is known as the …

A South African Reserve Bank.

B Industrial Development Corporation.
C Department of Trade and Industry.
D South African Revenue Services

1.1.13 Cost-sharing grants by government to improve roads is called the

… Programme.

A Expanded Public Works

B Critical Infrastructure
C Small Business Support
D Skills Development

1.1.14 The Industrial Development Zone (IDZ), which is found in the

Eastern Cape and focuses on motor vehicle manufacturing for export
is called the … IDZ.

A Coega
B East London
C Richards Bay
D Saldanha Bay (14x2) (28)

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

1.2. Choose a description from COLUMN B that matches the item in COLUMN A. Write only
the letter next to the question number

COLUMN A COLUMN B

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

1.2.1 Industrial Development Policy A Official strategic effort to encourage the

development and growth of all or part of the
1.2.2 Special economic zone economy

1.2.3 Corridor B. Passageway allowing access from one

area to another usually advantageous to
1.2.4 Information and business
communications
technology C Demarcated geographic area in
which some aspects of business
1.2.5 Black Economic environment differ from the rest of the
Empowerment country

1.2.6 Strategic Investment Program D Cash incentive intended to

encourage businesses in manufacturing,
computer and development fields

1.2.7 Framework (NIPF) E purpose-built industrial estates that

are physically enclosed and link to
1.2.8 Industrial development zones international ports

F A key growth sector of the Integrated

1.2.9 Regional development Manufacturing Strategy

1.2.10 Industrial development G The Act aimed at redressing

injustices of the past to a point where the
previously disadvantaged have a significant
participation in the economy

H To promote a more labour-intensive

industry

I promotes job losses

J extensive increase in organised

economic activity to manufacture, mine,
farm and deliver services

K aims to reduce the centralisation of

industries
(10x1) (10)

1.2 Give ONE term for each of the following descriptions. Write only the term
next to the question numbers in the ANSWER BOOK. Abbreviations,
acronyms and examples will NOT be accepted
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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

1.3.1 A geographical area in a country that promotes rapid development by

acting as a magnet for investments, in targeted economic activities

1.3.2 The industrial development strategy that focuses on improving the

competitiveness in manufacturing by considering input prices and
technology.

1.3.3 A spatial area for regional development that forms a passageway

1.3.4 A strategy to strengthen the institutional capacity to deliver services that

facilitate economic and social development

1.3.5 A regional development initiative that attracts infrastructure and business

investments to neglected areas

1.3.6 Efforts by governments to move manufacturing and other businesses

from metropolitan areas to rural areas

1.3.7 A track of land that forms a passageway allowing access from one area
to another is called a/an

1.3.8 It strengthens institutional capacity and facilitates development

(8x1) (8)
QUESTION 2
2.1 What is the objective of skill support program in South Africa? (1x2) (2)

2.2 Name TWO benchmark criteria used by South Africa to evaluate

The economy in terms of best practices (2x1) (2)
2.3 Name any TWO international benchmark criteria for regional
development. (2x1) (2)

2.4 Name any TWO areas addressed by the Reconstruction and

Development Programme. (2x1) (2)

2.5 Name any TWO examples of industrial development zones in

South Africa. (2x1) (2)

PART 2 ESSAYS
• Discuss in detail South Africa's endeavours (initiatives) in regional development:
• How effective is South Africa's regional development policies in terms
of international benchmarking?

ECONOMIC AND SOCIAL INDICATORS

PART 1 LOW ORDER QUESTIONS

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

QUESTION 1
1.1 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 e.g. 1.1.6 E.

1.1.1 Data collected, which relates to the composition of the population of a

country is called …

A statistics.
affirmative
B
action.
C demographics.
D education.
1.1.2 The number of employed persons as a percentage of the economically
active population (EAP) is called the …

A economic growth.
B productivity rate.
C employment rate.
D labour productivity.
1.1.3 An indicator generally used to measure the cost of production is known
as the … index.

A consumer price
B headcount
C price D production price

1.1.4… is an example of a social indicator.

A Education
B Business confidence
C Employment
D Production

1.1.5 A social indicator associated with health is …

A the percentage enrolment in

secondary schools.
B the availability of electricity.
C malnutrition.
D infant mortality

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

1.1.6 Long-term deposits of the domestic sector at monetary institutions are part
of the … money supply

A M1
B M2
C M3
D M4

1.1.7 The comparison of a country's export prices with import prices by means
of indexes is referred to as the …

A exchange rate.
B conditions of trade.
C terms of trade.
D inflation rate

1.1.8 The number of years that a new-born baby is expected to live is referred
to as …

A the mortality rate.

B malnutrition.
C obesity. life
D
expectancy.
1.1.9 A Gini coefficient of closer to 0 indicates that the income distribution is …

A highly unequal.
B fairly equal.
C totally equal.
D
totally unequal

1.1.10 The process whereby people move from rural areas to towns and cities is
called …

A urbanisation.
B immigration.
C emigration
D ruralisation
1.1.11 According to the United Nations' classification, South Africa falls in the …
human development index (HDI) group of countries.

A low
B medium
C high
D below

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

1.1.12 Demographics, as a social indicator, deals with …

A mortality rates.
B nutrition.
C housing
D employment

1.1.13 An example of an economic indicator is …

A sanitation. population
B growth. life
C expectancy.
D
production price index

1.1.14 The number of employed persons as a percentage of the economically

active population (EAP) is called the …

A employment rate.
B economic growth.
C productivity rate.
D
labour productivity

1.1.15 Issues related to human well-being over a period of time are

monitored by using … indicators.

A growth
B social
C economic
D communication (15x1) (15)

1.2. Choose a description from COLUMN B that matches the item in COLUMN A. Write only
the letter next to the question number.

COLUMN A COLUMN B

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 MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

1.2.1 Life expectancy A measures changes in prices of goods and

services
1.2.2 Money supply
B indicator used to measure the change in
1.2.3 Social indicator the price of goods produced locally when it
leaves the factory floor
1.2.4 Production price index
C probable number of years a person
1.2.5 Malnutrition will live after birth

1.2.6 Terms of trade D hampers the cognitive development of

children
1.2.7 Consumer price index
E Controlled by SARB

F the ratio between export prices and

import prices

G all the persons aged between 15 and

65 years

H education and health

(7x1) (7)

1.2 Give ONE term for each of the following descriptions. Write only the term
next to the question numbers in the ANSWER BOOK. Abbreviations,
Acronyms and examples will NOT be accepted

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

1.2.1 The policy that aims to stabilise prices by combating inflation

1.2.2 The labour force between the ages of 15 and 65 that are willing and able to work

1.2.3 An increase in the number of people moving from rural areas to

cities
1.2.4 The social indicator that relates to the size of the country's population
1.2.5 The rate at which commercial banks borrow money from the
South African Reserve Bank

1.2.6 Compares a country's export prices to its import prices by means of indexes

1.2.7 The coefficient that measures the inequality of income

1.2.8 The number of years a person is expected to live

1.2.9 The rate at which banks borrow money from the Reserve
Bank

1.2.10 The migration of people from rural areas to cities and towns

1.2.11 Measures prices of locally manufactured goods at factory level

1.2.12 The increase in population numbers of cities and towns

(12x1) (12)

QUESTION 2
2.1 Name any TWO measures of urbanisation (2x1) (2)
2.2 Name any TWO international organisations that require members to
standardise their indicators. (2x1) (2)
2.3 Name TWO indicators related to foreign trade. (2x1) (2)

2.4 Name TWO types of economic indicators related to price changes. (2x1) (2)
2.5 Give any TWO examples of productivity indicators. (2x1) (2)

2.6 Name TWO factors that are used to measure demographics

indicators. (2x1) (2)

2.7 Name any TWO social indicators. (2x1) (2)

PART 2 ESSAYS
1 Discuss the various economic indicators in detail. (26)

How did the COVID-19 pandemic negatively influence the

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MOPANI EAST ECONOMICS 2023 REVISION BOOKLET PAPER 1

South African economy? (10)

2 Discuss social indicators in detail. (26)

How successful has the South African government been in promoting

economic development through the use of these social
indicators? (10)

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