SENIOR CERTIFICATE EXAMINATIONS/

NATIONAL SENIOR CERTIFICATE EXAMINATIONS

ECONOMICS P2

2022

MARKS: 150

TIME: 2 hours

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This question paper consists of 12 pages.

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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.

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

4. Write the question number above each answer.

5. Read 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 cognitive requirements of the
questions.

9. Use only black or blue ink.

10. You may use a non-programmable pocket calculator.

11. Write neatly and legibly.

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SECTION A (COMPULSORY)

QUESTION 1 30 MARKS – 20 MINUTES

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 (1.1.1 to 1.1.8) in the ANSWER BOOK, e.g. 1.1.9 D.

1.1.1 The revenue derived from the sale of one additional unit of a
product is called … revenue.

A average
B extra
C total
D marginal

1.1.2 The institution that investigates restrictive business practices is the

Competition …

A Commission.
B Tribunal.
C Appeal Court.
D Policy.

1.1.3 The cost that changes with the level of output is known as … cost.

A marginal
B variable
C average
D fixed

1.1.4 A market structure that is dominated by two producers is called ...

A a perfect market.
B a monopoly.
C monopolistic competition.
D a duopoly.

1.1.5 A situation where prices rise so rapidly that people lose confidence
in the value of money can be regarded as …

A inflation.
B stagflation.
C hyperinflation.
D headline inflation.

1.1.6 When tourists visit South African game farms, it is referred to as …

tourism.

A eco-
B business
C cultural
D outbound
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1.1.7 The command and control approach that focuses on the

environmental impact of pollution is called …

A quantity standards.
B quality standards.
C a voluntary agreement.
D the Rio +20 Agreement.

1.1.8 The process where trees are removed from the land and not
replaced is known as …

A degradation.
B erosion.
C deforestation.
D recycling. (8 x 2) (16)

1.2 Choose a description from COLUMN B that matches the 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, e.g. 1.2.9 J.

COLUMN A COLUMN B
1.2.1 Market A increase in salaries that results in
workers paying a higher income tax rate
1.2.2 Imperfect market
B imposed on the output of goods that
1.2.3 Minimum wage generates external environmental cost
1.2.4 Merit goods C traditions, rituals or music that are
unique to a given culture or society
1.2.5 Core inflation
D firms that have control over the market
1.2.6 Bracket creep price
1.2.7 Indigenous knowledge E mechanism that brings together buyers
system and sellers of goods and services
1.2.8 Green taxes F these are undersupplied by the market
but beneficial to society

G excludes items from the CPI basket that

show high price volatility

H market structure with a few firms selling

heterogeneous products

I the lowest amount that employers are

required by the government to pay their
workers
(8 x 1) (8)
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1.3 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 The period of production in which at least one of the factors of

production is fixed

1.3.2 A market in which illegal goods are bought and sold

1.3.3 The cost to society that is not included in the market price

1.3.4 Tourists from other countries who come to South Africa to visit
places of interest

1.3.5 Type of inflation where the aggregate demand for goods and
services exceeds the aggregate supply

1.3.6 The ability of an environment to survive its use for economic

activity (6 x 1) (6)

TOTAL SECTION A: 30
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SECTION B

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

QUESTION 2: MICROECONOMICS 40 MARKS – 30 MINUTES

2.1 Answer the following questions.

2.1.1 Name TWO broad types of monopolies. (2 x 1) (2)

2.1.2 How would an increase in the number of firms in a perfect market

impact on the prices of goods and services? (1 x 2) (2)

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

PROFIT MAXIMISATION

TC TR
Cost/Revenue

B

A


0
15 35 45
Quantity/Output

2.2.1 Which market structure is represented by the graph above? (1)

2.2.2 Name point A in the graph above. (1)

2.2.3 Briefly describe the term explicit cost. (2)

2.2.4 Why would firms incur costs even when the output is zero? (2)

2.2.5 Use the graph above to explain how profit maximisation is

achieved by the firm. (2 x 2) (4)
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2.3 Study the table below and answer the questions that follow.

COSTS AND BENEFITS OF BUILDING A BRIDGE

PARTICULARS AMOUNT
Benefits
A Reduced transport costs for individuals R210 000
B Opportunities for new businesses R30 000
C Subsidies from government R40 000
Total benefits (A + B + C) R280 000

Costs
D Labour costs R150 000
E Cost of building materials and equipment R15 000
F Destruction of plants and animals R50 000
Total costs (D + E + F) R200 000

[Adapted from http:// www.wallstreetmojo]

2.3.1 Identify ONE example of an external benefit in the table above. (1)

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

2.3.3 Briefly describe the term social costs. (2)

2.3.4 How can a lack of information among entrepreneurs lead to market

failure? (2)

2.3.5 Determine whether the project is viable or not by calculating the cost
benefit ratio. Show ALL calculations. (4)

2.4 Briefly discuss product differentiation and control over prices in monopolistic
competition. (8)

2.5 How would the implementation of maximum prices impact negatively on the
economy? (8)
[40]
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QUESTION 3: CONTEMPORARY ECONOMIC ISSUES 40 MARKS – 30 MINUTES

3.1 Answer the following questions.

3.1.1 Name any TWO World Heritage Sites of historical and cultural
importance in South Africa. (2 x 1) (2)

3.1.2 How can the granting of property rights help conserve the
environment? (2)

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

New Plans

Pollution TAX

[Adapted from Google images.com]

3.2.1 Identify the health risk faced by the tourists in the cartoon above. (1)

3.2.2 What type of tourism is associated with 'Happy Holidays!!'? (1)

3.2.3 Briefly describe the term transit tourist. (2)

3.2.4 Explain the purpose of levying taxes on tourists. (2)

3.2.5 How can infrastructure development promote tourism? (2 x 2) (4)

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

The loss of biodiversity over the

last few centuries
CENTURIES POPULATION LAND CONVERTED LOSS OF SPECIES
FOR HUMAN USE IN ECOSYSTEMS
1 800 0,9 billion 7,6% -1,8%
2 100 12 billion 49,1% -17%
[Adapted from www.iberdrola.com]

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

3.3.2 Name ONE animal that is threatened by extinction in South Africa. (1)

3.3.3 Briefly describe the term preservation. (2)

3.3.4 Explain the importance of education campaigns to prevent

environmental degradation. (2)

3.3.5 How is the loss of biodiversity being addressed internationally?

(2 x 2) (4)

3.4 Briefly discuss the effects of tourism on externalities and poverty. (2 x 4) (8)

3.5 How can the government promote a green economy in South Africa? (8)
[40]
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QUESTION 4: MICROECONOMICS AND CONTEMPORARY ECONOMIC ISSUES

40 MARKS – 30 MINUTES

4.1 Answer the following questions.

4.1.1 Give any TWO examples of monopolistic competitive markets.

(2 x 1) (2)

4.1.2 How can a decrease in interest rates cause inflation? (2)

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

MARKET FAILURE – INEFFICIENCIES

Production of Maize (kg)

A
800
 F

600  B

IC (Indifference Curve)
500  C

E PPC (Production Possibility

Curve)

D
0 200 700 1 200
Production of Rice

4.2.1 Identify the curve that relates to allocative efficiency. (1)

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

4.2.3 Briefly describe the term market failure. (2)

4.2.4 How can the government discourage the consumption of demerit

goods? (2)

4.2.5 Why will production at point E be regarded as inefficient? (2 x 2) (4)

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

[Source: google images.com]

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

4.3.2 Give ONE example of a fossil fuel. (1)

4.3.3 Briefly describe the term global warming. (2)

. 4.3.4 Explain the Basel Convention agreement to reduce environmental

damage. (2)

4.3.5 How can producers contribute to environmental sustainability?

(2 x 2) (4)

4.4 With the aid of a correctly labelled graph, explain economic profit in a perfect
market. (8)

4.5 Analyse the challenges faced by the tourism industry in South Africa. (8)
[40]

TOTAL SECTION B: 80
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SECTION C

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

Your answer will be assessed as follows:

MARK
STRUCTURE OF ESSAY
ALLOCATION
Introduction
The introduction is a lower-order response. Max. 2
 A good starting point would be to define the main concept related to the
question topic.
 Do NOT include any part of the question in the introduction.
 Do NOT repeat any part of the introduction in the body.
 Avoid mentioning in the introduction what you are going to discuss in
the body.
Body
Main part: Discuss in detail/In-depth discussion/Examine/Critically Max. 26
discuss/Analyse/Compare/Evaluate/Distinguish/Differentiate/Explain/Draw a
graph and explain/Use the graph given and explain/Complete the given
graph/Assess/Debate
A maximum of 8 marks may be allocated for headings/examples. Max. 10
Additional part: Critically discuss/Evaluate/Critically evaluate/Debate/
Deduce/Compare/Distinguish/Interpret/How?/Suggest
A maximum of 2 marks may be allocated for mere listing of facts.
Conclusion
Any higher-order conclusion should include: Max. 2
 A brief summary of what has been discussed without repeating facts
already mentioned
 Any opinion or valued judgement on the facts discussed
 Additional support information to strengthen the discussion/analysis
 A contradictory viewpoint with motivation, if required
 Recommendations
TOTAL 40

QUESTION 5: MICROECONOMICS 40 MARKS – 40 MINUTES

 Examine oligopoly as a market structure in detail. (26 marks)

 How can the government discourage firms from engaging in anti-competitive
behaviour? (10 marks) [40]

QUESTION 6: CONTEMPORARY ECONOMIC ISSUES 40 MARKS – 40 MINUTES

 Discuss in detail the measures to combat inflation. (26 marks)

 How do inflationary expectations affect the various role players in the economy?
(10 marks) [40]

TOTAL SECTION C: 40
GRAND TOTAL: 150
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