(Insert badge – set to medium)

SUBJECT: ECONOMICS
TASK001a
GRADE: 11
DATE: February 2023
TIME: 45 MINUTES + 10 MINUTES READING TIME + 5 MINUTES UPLOAD TIME
MARKS: 70
EXAMINER: A. BANNISTER
MODERATOR: J. GROBBELAAR
TERM WEIGHTING: 50%
YEAR WEIGHTING: 3,125%

INSTRUCTIONS
1. Read the questions carefully
2. All questions are compulsory.
SECTION A: Question 1
SECTION B: Question 2
SECTION C: Question 3
3. Section A is to be answered in this quiz on Canvas.
Section B and C will follow Section A’s questions.
Section B and Section C are to be answered on folio paper and uploaded
into the separate quiz as soon as the time is up.
4. Number the questions as they are numbered in the question paper.
5. Answer questions, where possible, point by point but in full sentences. A
systematic presentation of facts is required.
6. It is in your own interest to write legibly and to present your work neatly.
7. Non-programmable calculators may be used
8. Please do not write in pencil as work in pencil will not be marked. However, any
sketches or diagrams may be done in pencil.
9. Good luck young future economists! Show us what you got!
ADDENDUM BUTTON INSTRUCTIONS:
Right click on the button below to access the resources for the test. Keep
the resource tab open and refer to it when answering the questions.

(Set button to medium and centre it)

QUESTION 1.1 [Multiple choice]

In the circular flow model, households are on the … [2]

1. supply side of the factor market and the demand side of the product
market.
2. supply side of the factor market and the product market.
3. demand side of the factor market and the product market.
4. demand side of the factor market and the supply side of the product
market.

QUESTION 1.2 [Multiple choice]

Some reasons for economically marginalised groups include: [2]

1. Discrimination, poor education, disabilities and refugees.
2. Highly skilled and semi-skilled working population.
3. Exapts, wealthy people and elderly people.
4. People aged between 16 and 64.

QUESTION 1.3 [Multiple choice]

C+ I + G + X -M = [2]

1. gross domestic product.

2. net national income.
3. gross domestic expenditure.
4. gross national income.

QUESTION 1.4 [Multiple choice]

The economically marginalised groups can be empowered by: [2]

1. Allowing them access to flee the country of South Africa.

2. Denying them welfare payments.
3. Taking away public goods and services.
4. Labour reforms such as the Employment Equity Act and the Broad Based
Black Economic Empowerment Act.
QUESTION 1.5 [Multiple choice]

The current repo and prime rate (26 Jan 2023) in South Africa is set at? [2]
1. Repo rate: Prime Rate:
1 10,50% 7%
2 7,25% 10,75%
3 10,75% 7,25%
4 7% 10,50%

QUESTION 1.6 [Multiple choice]

US Dollar will cost you roughly …, a Euro …and a Pound … according to the [3]
current exchange rates of January 2023.

1. $ € £
1 17 18 21
2 18 17 21
3 21 17 18
4 15 17 20

QUESTION 1.7 [Multiple choice]

When an economy increases the amount of capital per worker it is called… whereas [3]
when the increase in worker to capital ratio that stays the same, it is called…
1. Labour widening and capital widening
2. Capital deepening and capital widening
3. Capital deepening and labour widening
4. Labour deepening and labour widening
QUESTION 1.8 [Multiple choice]

Read the extract in the addendum under question 1.8 and answer the [3]
question that follows.

Yellen welcomes South Africa’s

energy transition, steers clear of
Russia mention.

US Secretary of the Treasury Janet Yellen (C-L) meets with South Africa's Minister of
Finance Enoch Godongwana (R) during her visit to the South African National
Treasury in Pretoria, South Africa, 26 January 2023. Yellen applauded South Africa's
participation in the Just Energy Transition Partnership, backed by the United States
and other western nations. EPA-EFE/Kim Ludbrook

“This partnership represents South Africa’s bold first step toward

expanding electricity access and reliability and creating a low carbon and
climate resilient economy,” Yellen said, adding that it would “alleviate the
deep fiscal strain the energy sector is putting on South Africa’s economy.”

South Africa’s energy transition refers to…

1. The implementation and use of non-renewable energy resources.

2. The implementation and use of renewable energy resources.
3. The USA aiding South Africa with its ongoing energy crisis.
4. USA transferring bulk energy to assist with South Africa’s energy crisis.
QUESTION 1.9 [Multiple choice]

Study table 1 in the addendum under question 1.9 and calculate the GNI. [3]

1. 3 530 446
2. 4 062 474
3. 3 898 004
4. 3 694 916

QUESTION 1.10 [Multiple choice]

National income will fall when: [3]

1. I+G+X˃S+T+M
2. T+S+M˃G+I+X
3. Y = C + I + G + (X – M)
4. Y = C + I + G + (X + M)
SECTION B:
QUESTION 2: [25]
CIRCULAR FLOW AND NATIONAL ACCOUNTS
2.1 Study the following table and answer the questions that follow.

2.1.1 Which method of calculating National Accounts was used in the table above? (1)
Expenditure approach √

2.1.2 Name the TWO other methods of calculating National Accounts. (2)

Production √ and Income Approach √

2.1.3 Calculate or Label A to C. No need to show calculations. (3)

A: Change in inventories √
B: -5540 √
C: 3 206 833 √
2.1.4 Analyse how Gross Capital Formation/ Aggregate Investments (I) is calculated (4)
in National Accounts. Provide the formula and an explanation of the formula.
Gross capital formation (formerly gross domestic investment) consists of
outlays on additions to the fixed assets (GFCF) of the economy plus net
changes in the level of inventories.√√
Added for deeper understanding: Fixed assets include land improvements
(fences, ditches, drains, and so on); plant, machinery, and equipment
purchases; and the construction of roads, railways, and the like, including
schools, offices, hospitals, private residential dwellings, and commercial and
industrial buildings. √
Inventories are stocks of goods held by firms to meet temporary or unexpected
fluctuations in production or sales, and "work in progress." √
https://databank.worldbank.org/metadataglossary/world-development-
indicators/series/NE.GDI.TOTL.ZS

2.2. Study the table and answer the questions that follow.
2.2.1 Differentiate between GDP at current price and GDP at constant price. (2)
Current prices are influenced by the effect of price inflation, √ wheras constant
prices are used to measure the true growth of an economy, i.e. adjuting for the
effects of inflation. √

2.2.2 Calculate the economic growth for 2017. Show a formula OR calculation. (3)

√
=3% √√
2.2.3 Compare the growth of the above answer to the current growth of South Africa (2)
using your general knowledge.
South Africa’s growth is lower than 3% √√, currently at 1,6% for Q3 of 2022.

2.3 Study Diagram 2 and answer the questions that follow.

2.3.1 Explain whether Diagram 2 is an open or closed economy. (2)

Open √, international trade takes place in this economic flow diagram. √

2.3.2 Label A, B and C of Diagram 2 above. (3)

A- Consumer √
B- Imports payments √
C- Factor Market √

2.3.3 Define the concept injections and provide one example of an injection. (3)
Injections are money flowing into the circular for production of goods and
services,√√ e.g. Investments, Government Spending or Export receipts. √

COMPLETED
SECTION C:
QUESTION 3: [20]
DATA RESPONSE:
3.1 Study the following pictures and answer the questions that follow.

PICTURE A PICTURE B

3.1.1 Tabulate the difference in the two pictures above by referring to the following:
✓ Type of factor of production. (2)
✓ Remuneration earned by each. (2)
✓ A characteristic of each. (2)
✓ Economic significance of each. (4)

Picture A Picture B
Type of Factor of
Production
Income earned
Two characteristics of
each
Economic significance of
each (name two facts of
each)

PICTURE A PICTURE B
Type of fop Natural resource √ Entrepreneur
Income earned Rent √ Profit
Characteristic Their supply is fixed. √ Entrepreneurs are
It has to be transformed. scarce. √
√ They take initiative. √
Natural resources are They organise
scarce. √ production. √
Natural resources have a They carry risks. √
price. √
There is uneven
distribution of natural
resources.
Economic Provides food to a country’sThey create jobs for
Significance nations. √√ other people which adds
Adds to GDP by giving to GDP per capita as well
people jobs in this sector as extra wealth creates
or exporting the surplus which adds to GDP.
to other countries. √√ They develop new goods
Serves as inputs for the and services, thus
production process. √√ adding to technological
advances. √√

It enriches our lives.

Entrepreneurs create
competition in the
market and challenge
Accept any other other profitable
relevant answer businesses. √√

When entrepreneurs use

resources in a way that
there is minimum
wastage, it improves
efficiency in the market.
√√

New goods &

services come into the
market. √√

Entrepreneurs use their

own or borrowed money
to create new wealth. √√

There will be an increase

in tax revenue that
government will be able
to collect. √√

Accept any other

relevant answer.
3.1.2 Some believe there should be a 5th Factor of Production, namely technology. Argue the (2)
fact that technology should be considered a fifth factor of production in today’s modern
world.
Technology—like money—is a facilitator of the factors of production. The
introduction of technology into a labour or capital process makes it more
efficient. For example, the use of robots in manufacturing has the potential to
improve productivity and output. √√

Accept any other relevant answer.

3.2 Read the extract below and answer the questions that follow.

SARB lifts repo rate by 25bps

Which may signal hiking cycle is abating.
By Ntando Thukwana 26 Jan 2023 15:16

. The hike is the eighth since the Sarb took on a hawkish approach to rein in inflation. Image:
Moneyweb

The South African Reserve Bank (Sarb) lifted the repo rate by 25 basis points on
Thursday. Three MPC members preferred the announced increase, while two
voted for a 50bps increase.

“You can rest assured, this central bank means business about price stability –
because that is the remit that we are tasked with in terms of the constitution of
the Republic of South Africa,” he added.

The raise is the eighth since the central bank began its hiking cycle at the end of
2021 when it adopted a combative stance to tame spiralling inflation.

https://www.moneyweb.co.za/news/economy/sarb-lifts-repo-rate-by-25bps/

3.2.1 Which factor of production earns interest as remuneration? (1)

 Capital √

3.2.2 What role does the person in the picture play in the South African economy? (1)
Governor of SARB/ Implements the monetary policy to control price stability. √

3.2.3 Differentiate between the repo and prime interest rates by defining each concept. (2)
Repo- interest rate set by SARB on commercial banks cost of borrowing money
from our central bank. √
Prime lending rate- the interest rate at which customers pay their commercial
bank to loan money. √

3.2.4 Assess the main reason the South African repo rate was increased by 25bps and (4)
how this will impact the economy.
To curb inflation./ To get inflation back in target of 3-6% as it is currently at 7,2%.
√√
Less spending and borrowing will take place, as people are left with less
disposable income, hence inflationary pressure should come down soon. √√
GDP might fall due to less spending and money in circulation.
Accept any other relevant answer.

END OF TEST
TOTAL [70]

END QUESTION INSTRUCTIONS (copy into the correct question spaces)

ADDITIONAL FILE UPLOAD: USE ONLY IF REQUIRED.
ADDITIONAL ESSAY QUESTION: USE ONLY IF REQUIRED.
(remember to place ‘0’ in the mark allocation on canvas)

End of Paper: [70]