SECONDARY SCHOOL IMPROVEMENT PROGRAMME
(SSIP) 2021
GRADE 12
SUBJECT:
ECONOMICS SATURDAY CLASSES
TERM 1
LEARNER WORKBOOK
(Page 1 of 99)
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TABLE OF CONTENTS
SESSION
TOPIC
PAGE
1
Macroeconomics: The Circular Flow
3 - 32
2
Macroeconomics: The Business Cycle-Part 1
32 - 48
3
Macroeconomics: The Business Cycle-Part 2
49 - 72
4
Macroeconomics: The Public Sector
73 - 99
2
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SESSION 1: MACROECONOMICS: THE CIRCULAR FLOW
SECTION A: TYPICAL EXAM QUESTIONS
THE CIRCULAR FLOW
QUESTION 1: 20 minutes
Section A – Short Questions
(Taken from various sources)
HINT: When answering Section A – short question, it is important not to rush but to
read the questions carefully and to make sure you understand what the question is
asking. Always remember one alternative is completely wrong, one is nearly correct
and one is totally correct. It is easy to eliminate the completely wrong answer, but if
you do not read the question carefully the nearly correct answer will also appear
correct. The answer will NEVER be two options. Only ONE option is correct. Your
answer will immediately be marked incorrect if you write TWO options.
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 In the simple circular flow of economic activity, goods and services flow via…
A.
B.
C.
D.
factor markets from households to firm.
goods markets from household to firms.
factor markets from firms to households.
goods markets from firms to households.
1.1.2 In the circular flow of income and spending, that is, the basic flow of income and
spending between households and firms supplemented by the foreign, financial
and government sectors …
A.
B.
C.
D.
exports are leakages from the circular flow.
savings are injections into the circular flow.
imports are injections into the circular flow.
taxes are leakages from the circular flow.
1.1.3 According to the Keynesian model, the factors that influence a household’s
induced consumption are the marginal propensity to consume and …..
A.
its disposable income .
B.
its total wealth.
C.
The number of persons in the household.
D.
its net wealth.
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1.1.4 The point labelled A2 represents
A.
B.
C.
D.
Autonomous consumption.
Autonomous investment.
Induced consumption.
Autonomous spending.
1.1.5 The goods market describes a market in which……
A.
B.
C.
D.
consumer goods and services are sold by households
consumer goods and services are exchanged for money
firms buy goods and services from households
0buyers and sellers of resources meet to trade
1.1.6 The two major markets in the circular flow of income and expenditure are the… .
A.
foreign exchange market and factor market.
B.
goods market and factor market.
C.
goods market and services market.
D.
factor market and production market.
1.1.7 In the circular flow of income and spending, financial institutions…
A.
B.
C.
D.
act as an intermediary between those who have surplus funds and those
who have deficit funds.
are not always useful, as households generally spend all their available
funds.
create an injection into the flow by collecting savings from participants with
surplus units only; therefore, there is no need to provide funds to deficit
units.
generally, exist to collect investment spending and transform it into savings.
1.1.8 in the circular flow of income and spending, government
A.
B.
injects government spending into the factor market and collects taxes from
the goods market.
withdrawals taxes from firms and households.
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C.
D.
provides public goods and services to the factor market and receives labour
from the goods market.
withdrawals government spending by providing it to firms and withdraws
taxes from households.
1.1.9 The three ways of calculating GDP are …
A.
B.
C.
D.
production, prices and income methods.
income, product and service methods.
expenditure, spending and production methods.
income, expenditure and production methods.
1.1.10 What is the value of nominal GDP in 2006
Year
2005
2006
2007
A.
B.
C.
D.
Price of
mangos
R3
R3
R4
Number of
mangos
100
120
120
Price of
oranges
R10
R12
R14
Number of
oranges
50
70
70
R800.
R1 460.
R1 060.
R1 200.
1.1.11 The multiplier is useful in determining …
A.
B.
C.
D.
the level of business inventories.
a change in inflation resulting from a change in interest rates.
a change in equilibrium production or income resulting from a change
in spending.
a change in unemployment resulting from a change in spending.
1.1.12 Mpho’s monthly disposable income increases from R1 800 to R2 300. As
a result, his monthly savings increase from R290 to R440. This implies
that his marginal propensity to consume is the following
A.
B.
C.
D.
0.60.
0.40.
0.20.
0.70.
1.1.13. In the simple Keynesian model without a government or foreign trade, assuming
the MPC is 0.70. The multiplier is
A.
B.
C.
D.
1-0.7/1.
1/0.7.
1/1-0.7.
1-0.3/1.
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1.1.14. A decrease in the marginal propensity to import results in.
A.
B.
C.
D.
a decrease in the multiplier.
less domestic consumption.
a decrease in aggregate spending.
less foreign exchange flowing out of the country.
1.1.15 The method used to derive total remuneration on factors of production is called
the …. method
A.
B.
C.
D.
production.
income.
circular.
expenditure.
1.1.16 Earnings received from the export of goods and services are called …
A.
B.
C.
D.
leakages.
injections.
taxes.
savings.
1.1.17 The market for short-term savings and loans is know as…market
A.
B.
C.
D.
capital .
money.
foreign exchange.
resource.
1.1.18 A market where a currency can be exchanged for another country’s currency
A.
B.
C.
D.
currency market.
foreign market.
foreign exchange market.
capital market.
1.1.19 The continuous flow of production, income and expenditure between participants
in the economy
A.
B.
C.
D.
business cycle.
economic equilibrium.
money market.
circular flow.
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1.1.20 if the marginal propensity to consume (mpc) is 0.6 in a 2-sector model,the
marginal propensity to save(mps) will be…
A.
B.
C.
D.
4.
6.
9.4.
0.4.
1.1.21 The consumption function is based on the premise that as income increases,
consumption expenditure.
A.
B.
C.
D.
increases by a larger amount.
increases by the same amount.
remains constant unless saving also changes.
increases by a smaller amount.
1.1.22 The equation c=70+0.65Y, where C is consumption and Y is disposable
income, tells us that…
A.
B.
C.
D.
households will save R70 if their disposable income is zero and will
consume 0.65 of any increase in disposable income they receive.
households will consume R70 if their disposable income is zero and will
consume 0.65 of any increase in disposable income they receive.
households earn R70 and spend three quarters of their income.
households will consume 0.35 of whatever level of disposable income
they receive.
1.1.23 Spending in the economy comes from
A.
B.
C.
D.
land, firms, consumers and government .
households, firms, government and foreign sector.
foreign sector, capital and entrepreneur.
government, labour, firms and households.
1.1.24 The South Africa labour market is an example of a…
A.
B.
C.
D.
1.25
factor market.
goods market.
foreign exchange market.
financial market.
if we say that GDP=C+I+G+X-Z, then GDP has been measured using the…
A.
B.
C.
D.
expenditure method.
production method.
income method.
value-added method.
(25 x 2)
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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 number (1.2.1 – 1.2.8) in the
ANSWER BOOK.
1.2 (A)
COLUMN A
COLUMN B
1.2.1 Real flow
1.2.2 Multiplier
1.2.3 Marginal propensity to save
1.2.4 Money flow
1.2.5 Leakage
1.2.6 GDP
1.2.7 Factors of production
1.2.8 Factor market
A. The flow of spending
B. The flow of money
C. The portion of an increase in income
that is not consumed.
D. The ration between the eventual
change in income and the initial
investment.
E. The flow of goods and services.
F. Savings
G. Inputs into the production of goods
and services
H. Economic growth
I. Where labour, entrepreneurship, land
and capital are traded
(8 x 1)
1.2 (B)
COLUMN A
COLUMN B
1.2.1 Injection
1.2.2 Marginal propensity to
consume
1.2.3 Model
1.2.4 Double counting
1.2.5 GDP
1.2.6 Open economy
1.2.7 Foreign sector
1.2.8 Imports and exports
A. Forms part of closed economic circular flow
B. Flows from and to the foreign sector
C. Forms part of open economic circular flow
D. An economy that is open to foreign trade
E. The value of goods and services produced
within the borders of a country in a given year
F. Pensions added to the national income figures
G. A simplified representation of reality
H. The portion of an increase in income that is
consumed.
I. Government spending
(8 x 1)
1.3
Provide the economic term/concept for each of the following descriptions.
Write only the term/concept next to the question number. NO
ABBREVIATIONS WILL BE ACCEPTED..
1.3.1
An economy that imports and exports goods and services to other
countries
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1.3.2
A representation of the economy showing how the economic
participants interact with one another
1.3.3
An economy that does not take part in international trade.
1.3.4
The flow of money from the financial sector to businesses
1.3.5
Remuneration for the factors of production in the form of rent,
wages, interest and profits
1.3.6
Goods and service produced in other countries and purchased by
local firms
1.3.7
The flow of goods and services from firms to households.
1.3.8
Goods and services produced locally and then sold to the foreign
sector
1.3.9
The flow of money between the different economic participants
1.3.10
A compulsory payment made by a private household to the local
government
1.3.11
The money which households and firms provide to financial
institutions
1.3.12
The total value of all spending by households on goods and
services
1.3.13
Any spending which is not derived from income
1.3.14
The total value of expenditure by the government on goods and
services
1.3.15
Any flow of money which does not give rise to a further round of
income from within the economy
1.3.16
A market where goods and services are exchanged
1.3.17
The value of al final goods and services produced within the
borders of a country within a given period of time, usually one year
1.3.18
1.3.19
The price of one country in terms of another
Communication between actual and potential buyers and actual
and potential sellers of a good or services
1.3.20
The market on which factors of production are traded.
1.3.21
The market for short-term savings and loans
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1.3.22
The financial institutions where foreign currency is bought and sold
1.3.23
The market where long-term deposits and borrowings are
negotiated
1.3.24
Paid by consumers for goods and services including taxes less
subsidies
1.3.25
Products that have reached the end of the production process and
are used by consumers
1.3.26
The initial prices in production of final goods before taxes and
subsidies are considered
1.3.27
The proportion of disposable income which households spend on
consumption
1.3.28
Amount to be paid for the various factors of production used to
produce goods and services
1.3.29
The proportion of additional income which households save
1.3.30
GDP at current prices
1.3.31
The portion of household spending which is independent of income
1.3.32
Production that takes place within the borders of a country
1.3.33
GDP at constant prices
1.3.34
A measure of the value of production once adjustments have been
made for consumption of fixed capital
1.3.35
The output of a country produced by the factors of production
owned by the permanent residents of that country, regardless of
geographically location
1.3.36
The number by which the change in initial spending or withdrawal
must be multiplied to determine the resulting change in income of
an economy
1.3.37
The situation where a change in spending causes a
disproportionate change in aggregate demand and hence in the
level of aggregate income
(36 x 1)
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SECTION B
QUESTION 2:
20 minutes Section B
(Adapted from DBE)
HINT: When the question requires you to “list” or “name”, you need not write a
sentence but merely one or two words. This MUST be done in bullet form. This types
of questions are applicable for 2.1.1, 3.1.1 and 4.1.1
2.1
2.2
2.3.
2.4
2.5
2.6
2.7
2.8
2.9
2.10
2.11
2.12
2.13.
2.14.
2.15.
Name TWO major processes in the circular flow model
(2 x 1)
Name TWO types of income earned labour as a production factor
(2 x 1)
Name TWO basic sets of markets in the economy
(2 x 1)
List Any TWO injections from the basic circular flow of income and spending
(2 x 1)
List any TWO leakages from the basic circular flow of income and spending
(2 x 1)
List any TWO components of the total spending on goods and services
produced in a domestic economy
(2 x 1)
Name TWO leakages found in the multiplier four sector model
(2 x 1)
Name TWO institutions found in the financial market
(2 x 1)
List ANY two sub-markets within the factor market
(2 x 1)
Name any TWO items that are considered when calculating GDP at market prices
Name any TWO items that are considered when calculating expenditure on
GDP at market price
(2 x 1)
List any TWO basic assumption of the multiplier effect
(2 x 1)
Name any TWO items that convert Gross Value Added at factor costs to Gross Value
added at basic prices.
(2 x 1)
List any TWO symbols used in deriving the multiplier
(2 x 1)
List any TWO examples of primary sector in the production method
(2 x 1)
QUESTION 3:
(Taken from various sources)
HINT: These types of questions are applicable for 2.1.2, 3.1.2 and 4.1.2
3.1
3.2.
3.3
3.4
3.5
3.6
3.7
3.8.
How does proportional income tax affect aggregate spending
(1 x 2)
Why exports are classified as part of autonomous spending
(1 x 2)
Why is the Johannesburg Securities exchange important for south African
investors
(1 x 2)
How do bonds impact mortgage rates?
(1 x 2)
What is the role of savings in the financial market?
(1 x 2)
Why is Gross national income useful to the economy
(1 x 2)
What is the main purpose of subsidies on production?
(1 x 2)
Why is the GDP at market prices normally higher than the GDP at factor cost?
(1 x 2)
Data Response
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HINT: All section B questions have TWO data interpretation questions – each total
10 marks. Section B consist of Questions 2-4 not as numbered in this document
QUESTION 4:
Study the table below and answer the questions that follow
Aggregate expenditure (AE)
Aggregate Income(Y)
Point
250
450
900
1200
0
300
900
1300
A
B
C
D
[Adapted from www.google.com]
4.1
Give the economic concept illustrated in the table above.
(1)
4.2
Identify the autonomous consumption point from the table above.
(1)
4.3
Briefly describe the term injections.
(2)
4.4
Explain how a decrease in savings patterns by the nation will affect
the marginal propensity to consume (mpc).
(2)
4.5
Suppose the other equilibrium income was R300, calculate the
multiplier using the formula ∆Y / ∆ J. Show ALL your calculations.
(2x2)
(4)
QUESTION 5:
Study the graph below and answer the questions that follow.
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5.1
Identify the original consumption function on the graph.
(1)
5.2
Identify the marginal propensity to consume (mpc) from the above
graph.
(1)
5.3
Briefly describe the term induced consumption.
(2)
5.4
How do investors impact on the multiplier?
(2)
5.5
Calculate the multiplier for the above scenario. (Show all
calculations)
(4)
QUESTION 6:
Study the table below and answer the questions that follow.
GROSS VALUE ADDED ACCORDING TO TYPE OF ECONOMIC ACTIVITY
At current prices (R millions)
2017
2018
2019
Primary sector
369 683
368 300
398 770
Secondary sector
723 562
772 875
815 816
Tertiary sector
2 324 815
2 484 291
2 654 870
Gross value added at basic prices
3 418 060
3 625 466
A
At constant 2014 prices (R millions)
2017
2018
2019
Primary sector
303 563
307 875
291 143
Secondary sector
556 028
555 915
556 935
Tertiary sector
1 888 785
1 919 390
1 945 596
Gross value added at basic prices
2 748 376
2 783 180 2 793 674
[Adapted: SARB Quarterly Bulletin, December 2019]
6.1
Which method was used in the calculation of the gross domestic
product GDP above
(1)
6.2
Which year is currently used as the base year by the South African
Reserve Bank(SARB)
(1)
6.3
Calculate Gross Value Added at ‘A’
(2)
6.4
Which sector has increased its contribution to the GDP steadily
since 2017?
(2)
6.5
What happened to the value added by the primary sector between
2018 and 2019?Motivate your answer.
(4)
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QUESTION 7
Study the extract below and answer the questions that follow
HUNTING: AN ECONOMIC INJECTION FOR SA
South Africa, with its wide variety of wildlife, is seen as one of the world’s
leading hunting destinations.
A study which was conducted by the research unit of Tourism Research in
Economic Environment and Community (Trees) in association with the
Professional Hunter’s Association of South Africa (Phasa) shows that trophy
hunting is an economic injection of R1, 98 billion in South Africa.
[Adapted from: www.media24.com, 18 April 2018]
7.1
Which economic participant is referred to in the extract
(1)
7.2
Name ONE other in the economy
(1)
7.3
Briefly describe the concept injection
(2)
7.4
Explain the impact of leakages in the economy
(2)
7.5
How do injections influence employment in the economy?
(4)
QUESTION 8
Study the cartoon below and answer the questions that follow.
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8.1
Name the type of economy in the circular flow illustrate above
(1)
8.2
Identify ONE participate in the circular flow which interact with
foreign sector
(1)
8.3
Briefly describe the term leakages
(2)
8.4
How does unemployment affect the circular flow model?
(2)
8.5
Explain briefly the significance of circular flow of income.
(2x2)
(4)
QUESTION 9
Study the table below and answer the questions that follow
National account figures 2017 and 2018 at constant prices
2017
2018
R million
R million
Final consumption expenditure by households
1902 851
1 937 396
Final consumption expenditure by general government 629 712
A
Gross fixed capital formation
618 712
609 614
B
3 189
-5 440
C
-2 442
316
Gross domestic expenditure
3 151 826 3 183 398
Exports of goods and services
905 898
929 792
Imports of goods and services
D
968 651
Gross domestic product
3 119 984 3 144 539
Source :SARB
Item
9.1
Which method of calculating the national account is used above
(1)
9.2
Name one item used to convert GDP to GNP
(1)
9.3
Briefly describe the term gross fixed capital formation
(2)
9.4
How do imports of goods and services affect the multiplier?
(2)
9.5
Use the table above and calculate the economic growth rate for
2018.show all calculations
(4)
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QUESTION 10
MULTIPLIER
Assume an economy is initially in equilibrium where income (Y) equals R100 000m,
savings (S) R40 000m and consumption (C) R60 000m.
Source: Enjoy Economics, 2012
10.1
10.2
10.3
10.4
Briefly describe the term macroeconomic multiplier.
What does the term equilibrium in the extract refer to?
Calculate the marginal propensity to consume (mpc).
Calculate the value of the multiplier. Show ALL calculations.
(2)
(2)
(2)
(4)
HINT: To do question 10.4 you need to use your answer in question 10.3.
HINT: All section B questions have TWO 8 marks questions, numbered according to
questions not like in this document.
QUESTION 11
Paragraph type questions – Middle Cognitive
11.1.
11.2.
11.3.
11.4.
Explain the difference between production and income
Draw and interpret an open four-sector circular-flow diagram.
Explain how double counting can be avoided when GDP is estimated
Distinguish between measurement at current prices and measurement at constant
prices
11.5. Explain the difference between nominal GDP and real GDP
11.6. Distinguish the difference between GDP and GNI
11.7. Discuss gross capital formation
11.8. Explain the difference between money market and capital market
11.9. Discuss components of expenditure method
11.10. Explain the interactions between economic participants in a closed economy.
11.11. Discuss the multiplier and its effect on the national income if the marginal
propensity to consume (mpc) is 0,6 and investment increases by R10 bn.
11.12. With aid of a circular flow diagram, explain the multiplier process.
11.13. Discuss basic assumption of the multiplier effect
11.14. Explain the multiplier concept with the aid of a well-labelled graph.
.
QUESTION 12
12.1.
12.2.
12.3.
12.4.
12.5.
12.6.
12.7.
Paragraph type questions – Higher cognitive
Why Are the Factors of Production Important to Economic Growth?
How are leakages affecting the circular flow?
How does consumption affect economic growth?
How do financial institutions serve as a link between savings and investment?
how does unemployment affect the circular flow of income?
Why government expenditure is an injection into the economy?
How does the international sector (foreign sector) affect the economy?
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12.8. How does the circular flow of income primarily affect households?
12.9. Analyse the impact of closed economy on South Africa economy
12.10. Why does lack of education affect factor market
12.11. How does inflation affect financial markets?
12.12. Analyse the impact of drought on production?
12.13. How do investors impact on the multiplier?
12.14. How does the multiplier effect government policy?
12.15. How do taxes affect the multiplier?
SECTION C
HINT: All section C questions have TWO questions 5 & 6 NOT 13 like in this
document. In the examination you will need to answer only one.
ESSAY STRUCTURE
HINT: Section C – the long question, must be answered in FOUR sections: Introduction
(definition), Body (headings and full sentences in bullets) additional part and conclusion
(summarising). The mark allocations for Section C is as follows:
STRUCTURE OF ESSAY:
Introduction
The introduction is a lower-order response.
• A good starting point would be to the main concept related to the
question topic
• 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/ Distinguish/ Differentiate/ Explain/ Evaluate
Additional part: Give own opinion/ Critically discuss/ Evaluate/ Critically
evaluate/ Draw a graph and explain/ Use the graph given and explain/
Complete the given graph/ Calculate/ Deduce/ Compare/ Explain
Distinguish / Interpret/ Briefly debate/ How/ Suggest
Conclusion
Any Higher or conclusion include:
• A brief summary of what has been discussed without repeating facts
already mentioned in the body
• Any opinion or value judgement on the facts discussed
• Additional support information to strengthen the discussion/analysis
• A contradictory viewpoint with motivation, if required
Recommendations
TOTAL
MARK
ALLOCATION:
Max 2
Max 26
Max 10
Max 2
40
[40]
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QUESTION 13
•
Discuss the role of markets in the circular flow.
(26 marks)
•
Evaluate the contribution/role of firms in growing the economy
(10 marks)
SECTION D: Homework
1.1.1
The expression “GDP” minus net primary income payments to the
rest of the world” defines
A
B
C
D
1.1.2
At point above the 45 line in the aggregate spending function
diagram
A
B
C
D
1.1.3
Aggregate expenditure is in equilibrium
Aggregate spending is less than GDP
Aggregate spending is greater than GDP
Aggregate spending is equal to GDP
Government economic activities include three major flows,
namely...
A
B
C
D
1.1.4
The consumer price index
The gross national product
Gross domestic expenditure
Net national income
government spending on factors of production; tax levied on
households and firms; transfer payment.
government spending on factors of production; tax levied on
households and firms; selling public goods and services.
government spending on factors of production; government
spending on goods and services; collection of income from the
private sector,
Transfer payment; spending on factors of production; collection
of tax from the markets.
Suppose South Africa does not export nor import. Therefore, South
Africa’s total spending formula can be written as…
A
B
C
D
𝐴=𝐶+𝐼+𝐺.
𝐴=𝐶+𝐼+𝐺+𝑋−𝑍.
𝐴=𝐶+𝐼+𝐺+𝑋+𝑍.
𝐴=𝐶+𝐼.
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1.1.5
Given that GDP at market prices is 350 million, subsidies on
products are 16 million and taxes on products are 50 million. The
value of GDP at basic prices will be … million.
A
B
C
D
1.1.6
The multiplier effect means that …
A
B
C
D
1.1.7
600 million
400 million
6000 million
4000 million
In an open economy, the size of the multiplier depends on …
A
B
C
D
1.1.11
The level of economic activity
Income
The standard of living
The terms of trade
Suppose the GDP at market prices is R500 million, net primary
income payments to the rest of the world is –R100 million and the
exchange rate is 1$USD = R10,00. The gross national income at
market prices equals
A
B
C
D
1.1.10
The income of other countries exporters.
The income of our importers
The income of other countries importers
The income of our exporters
Gross Domestic Product(GDP) is the best measure of..
A
B
C
D
1.1.9
consumption is typically several times as large as investment.
a large change in consumption can cause a much larger
increase in investment.
a large increase in investment can cause GDP to change by a
larger amount.
there is a proportional relationship between the change in
income and the change in investment
South Africa’s exports represent
A
B
C
D
1.1.8
300
384
316
56
Autonomous spending and equilibrium income
Marginal propensity to consume, tax rate and marginal
propensity to import.
All the components of aggregate spending
Exports minus imports
If the base year prices are used during the measurement of GDP,
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then the _____________ is obtained.
A
B
C
D
1.1.12
National income will fall when:
A
B
C
D
1.1.13
Current GDP
Gross national product
Real GDP
Nominal GDP
I+G+X>S+T+M
T+S+M>G+I+X
Y=C+I+G+(X-M)
I+G+X>C+M+S
According to the information in the table, what are the values of
MPC and MPS?
Initial change in investment
expenditure
(R million)
400
A
B
C
D
1.1.14
Change in equilibrium
national income
(R million)
2000
MPC is 5.0 and MPS is 5.0
MPC is 0,5 and MPS is 0.5
MPC is 8.0 and MPS is 2.0
MPC is 0.8 and MPS is 0.2
Product market
Factor market
Goods and services market
Foreign exchange market
The value of multiplier increase if the marginal propensity
to…increase
A
B
C
D
1.1.16
?
Marginal
propensity to save
(MPS)
?
Labour Relations Act 66 of 1995
A
B
C
D
1.1.15
Marginal propensity
to consume (MPC)
Consume
Save
To invest
Spending
In the below diagram the multiplier is
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A
B
C
D
1.1.17
The market for short-term savings and loans
A
B
C
D
1.1.18
Gross Domestic production
Domestic production
National production
Net domestic production
In the circular flow model, GDP would most likely increase if there
was:
A
B
C
D
1.1.20
Government bonds
Mortgage bonds
Pension funds
Foreign currencies
Production that takes place within the borders of a country
A
B
C
D
1.1.19
1.5
2.0
2.5
3.0
A decrease in exports
A decrease in government spending
An increase in imports
A decrease in savings
The value of GNI at market price is
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NATIONAL AGGREGATES
GDP at market prices
Primary income from the rest of the world
Primary income to the rest of the world
GNI at market prices
A
B
C
D
1.2
3 796 460
82 235
183 779
?
3 694 916
3 898 004
4062 474
3530 446
Choose a description from COLUMN B that matches the item in COLUMN A.
Write only the letter (A – H) next to the question number (1.2.1 – 1.2.8) in the
ANSWER BOOK, for example 1.2.9 J.
1.2.1
COLUMN A
Systems of
national accounts
A
COLUMN B
Long term loans are obtained
1.2.2
Capital market
B
Owners of the factors of production
1.2.3
Households
C
prescribed by the United Nations to compile the
gross domestic product figures
1.2.4
Gross National
Product
D
The portion of disposable income which households
spend on goods and services.
1.2.5
Marginal
propensity to
consume
E
Spending by firms on capital goods
F
The original prices in production, before taxes and
subsidies are taken in account.
G
The total value of all final goods and services
produced in the country during a specific period
H
Systematic and comprehensive record of economic
activity.
1.2.6
Investment
1.2.7.
National accounts
1.2.8.
Basic price
(8 × 1) (8)
1.3
Give ONE term for each of the following descriptions. Write only the term next
to the question number (1.3.1 – 1.3.6) in the ANSWER BOOK. Abbreviations,
acronyms and examples will NOT be accepted.
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1.3.1
The market for short-term savings and loans
1.3.2
Royalties paid for the use of intellectual property and extractable
natural resources.
1.3.3
Measures total expenditure of final goods and services produced
within the borders of a country
1.3.4
Value of production is calculated by multiplying the volume of the
final goods and services by their prices
1.3.5
The multiplier shows how an increase in spending produces a
more than proportional increase in national income.
1.3.6
The movement of money in the form of income and expenditure
1.3.7
GDP at constant price is also known as
1.3.8
An economy that includes the foreign sector
1.3.9
The market where long-term deposits and borrowings are
negotiated
1.3.10
The total value of expenditure by the government on goods and
services
QUESTION 2
2.1
Name TWO types of the economy in the circular flow
(2 x 1)
(2)
2.2
List any TWO financial markets in the economy
(2 x 1)
(2)
2.3
Name two examples of government expenditure
(2 x 1)
(2)
2.4
List any TWO injections in closed economy
(2 x 1)
(2)
2.5
Name TWO flows found in a open economy
(2 x 1)
(2)
2.6
List any TWO use of per capita income figures
(2 x 1)
(2)
2.7
Name TWO types of spending in money flow of an open economy
(2 x 1)
(2)
2.8
List the TWO types of markets of a factor market
(2 x 1)
(2)
2.9
Name TWO products sold in the money market
(2 x 1)
(2)
2.10
List any TWO products sold in the capital market
(2 x 1)
(2)
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QUESTION 3
3.1
How does the mpc relate to the multiplier?
(1 x 2)
(2)
3.2
Why is gross National Product of south African generally lower
than the Gross Domestic Product?
(1 x 2)
(2)
How will the multiplier be influenced when a country experiences
net leakages ?
(1 x 2)
(2)
What is the purpose of the residual item when the expenditure
method is used to calculate national income?
(1 x 2)
(2)
Why are households regarded as the important participant in the
circular flow?
(1 x 2)
(2)
Why does South Africa prescribe to the System of National
Accounts as stipulated by the International Monetary Fund (IMF)?
(1 x 2)
(2)
What effect does taxes and subsidies have on the calculation of
basic prices?
(1 x 2)
(2)
How will the scenario, I+G+X>S+T+M, effect the national income?
(1 x 2)
(2)
How will the multiplier be influenced when foreign direct
investments increase in the local economy
(2) (1 x 2)
What is the effect of an increased marginal propensity to consume
on the multiplier?
(1 x 2)
(2)
3.3
3.4
3.5
3.6
3.7
3.8
3.9
3.10
DATA RESPONSE QUESTIONS
(taken from various DBE past papers)
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QUESTION 4
Study the following illustration and answer the questions that follow
SAVERS
Firms
households
Financial
intermediaries
Government
Firms
Households
BORROWERS
4.1
List any institution found in the financial market
(1)
4.2
Name ONE leakage that exist between financial intermediaries and
households.
(1)
4.3
Briefly describe the term closed economy
(2)
4.4
Explain the basic function of a financial intermediary
4.5
How do unemployment affect household savings ?
(2)
(2x2)
(4)
QUESTION 5
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Study the following information and answer the questions that follow
Autonomous consumption
Investment spending
Government spending
Marginal propensity to consume
50 billion Rands
200 billion Rands
250 billion Rands
0.6
5.1
Name one leakage in the four -sector model of the multiplier
(1)
5.2
What is the marginal propensity to save?
(1)
5.3
Briefly describe the term marginal propensity to consume
(2)
5.4
Why is government spending classified as part of autonomous
spending in the Keynesian model?
(2)
Calculate the multiplier effect above
(4)
5.5
(2x2)
QUESTION 6
Study the article below and answer the questions that follow.
The South Africa agriculture sector is estimated to register a CAGR of 4.5%
during the forecast period (2020-2025). In 2019, the price received by the
farmers in the country increased by 4.3% and the prices that farmers pay for
agricultural inputs increased by 5%.
The increase in the population level of the country has fuelled the demand for
cereals. Maize is the staple food in the country, consumed in its direct form, and
is used for products, such as sweeteners, bread, and cornmeal. Wheat is also
another major staple food in the country, which is mostly imported, as it is
economical to import rather than produce it domestically.
Most of the country’s oilseed demand is met by domestic production. However,
palm oil, a well-in-demand oilseed in the country, is currently imported from
Indonesia and Malaysia. In the forecast period, the country is expected to reduce
imports to a great extent and become self-sufficient in the production of oilseeds.
https://www.mordorintelligence.com/industry-reports/agriculture-in-south-africa-industry
6.1
What generates income in agriculture of South Africa ?
(1)
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6.2
In which market of the circular flow does agricultural fall?
(1)
6.3
Briefly explain the concept net domestic production.
(2)
6.4
Why is agriculture important at Johannesburg security exchange?
(2)
6.5
How are households’ relations with government affected by natural
disasters?
(2 x 2)
(4)
QUESTION 7
Study the table below and answer the questions that follow.
INCOME(Rands) CONSUMPTION
(Rands)
0
10
50
50
100
90
150
130
200
170
Savings
(Rands)
-10
0
10
20
30
Investment
(Rands
20
20
20
20
20
7.1
What is the marginal propensity to save?
(1)
7.2
What is the marginal propensity to consume (mpc) on the above
table?
(1)
7.3
7.4
7.5
Describe the term national income multiplier
(2)
Discuss how a decrease in investment spending will affect the
equilibrium level of income in a simple Keynesian model.
(2)
Explain the economic significance of the intercept and the slope of
the consumption function.
(4)
Question 8
Study the picture below and answer the questions that follow
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DIGITIZATION LEADS STANDARD BANK TO CLOSE BRANCHES, CUT JOBS
The future of traditional banking in South Africa is under the spotlight after standard bank
announced its closing 91 branches and cutting around 1,200 jobs.
8.1
Name the market above
(1)
8.2
Which key institution is involved in the market illustrated?
(1)
8.3
Briefly describe the term corporation for public deposits (CPD)
(2)
8.4
How is the foreign exchange market affected with current news of
standard bank?
(2)
8.5
Explain why the investment function has a negative slope
(4)
QUESTION 9
Study the diagram below and answer the questions that follow.
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9.1
What is depicted in the diagram above
(1)
9.2
Which participants is the major consumer in the economy
(1)
9.3
Briefly describe the term circular flow
(2)
9.4
What is the role of the factor market in the circular flow
(2)
9.5
How does the multiplier effect influence the government in marking
decisions?
(2x2)
(4)
QUESTION 10
Study the table below and answer the questions that follow.
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10.1
Which method was used in the calculation of the gross domestic
product (GDP) above?
(1)
10.2
Which year is currently used as the base year by the South African
Reserve Bank (SARB)?
(1)
10.3
Briefly describe the term gross national product.
(2)
10.4
Which sector has increased its contribution to the GDP steadily
since 2014?
(2)
10.5
What happened to the value added by the primary sector between
2015 and 2016? Motivate your answer. (2x2)
(4)
QUESTION 11
Study the diagram below and answer the questions that follow.
Gross national Income 2016 to 2019
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11.1
When did south African reach its highest GNI?
(1)
11.2
Name ONE method that can be used to calculate the GDP
(1)
11.3
Briefly describe the concept gross national income.
(2)
11.4
How would the GNI @ market prices be calculated?
(2)
11.5
Explain the importance of measuring national account aggregates.
(4)
QUESTION 12
Study the diagram below and answer the questions that follow.
12.1
Identify the original consumption function on the graph above.
(1)
12.2
What is the marginal propensity to consume (mpc) on the graph?
(1)
12.3
Briefly describe the term induced consumption.
(2)
12.4
How will an increase in government spending affect the multiplier?
(2)
12.5
Use the formula K = ΔY/ΔI to calculate the multiplier from the
scenario. Show ALL calculations.
(4)
QUESTION
13
(2x2)
Paragraph type questions-Middle cognitive
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13.1
Illustrate and explain how an increase in the income level will affect the
money market.
(8)
13.2
With aid of diagram of multiplier explain how the economy move due to an
increase in investment as a result of decrease in the interest rate level
(8)
13.3
Use the following diagram to show how an increase in autonomous
consumption expenditure will influence the economy
(8)
13.4
Differentiate between subsidies on production and subsidies on products
(8)
13.5
Differentiate between taxes on production and taxes on products.
(8)
QUESTION 14
Paragraph type questions-Higher cognitive
14.1
How can the multiplier be used to analyze the economic impact of
professional sports?
(8)
14.2
How can households as an important participant in the circular flow model
contribute in building the economy
(8)
14.3
How is Gross domestic Product derived by using the expenditure method
14.4
Analyse the impact of unemployment on financial sector
(8)
14.5
How are national account conversions made?
(8)
(8)
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SESSION 2:
MACROECONOMICS: BUSINESS CYCLES PART 1
SECTION A: TYPICAL EXAM QUESTIONS
10 minutes Section A – Short Questions
QUESTION 1:
HINT: When answering Section A – short question, it is important not to rush but to
read the questions carefully and to make sure you understand what the question is
asking. Always remember one alternative is completely wrong, one is nearly correct
and one is totally correct. It is easy to eliminate the completely wrong answer, but if
you do not read the question carefully the nearly correct answer will also appear
correct. The answer will NEVER be two options. Only ONE option is correct. Your
answer will immediately be marked incorrect if you write TWO options.
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
Negative economic growth for at least two consecutive quarters of
the year is referred to as …
A
B
C
D
1.1.2
An economic slump associated with a reduction in purchasing
power is called a …
A
B
C
D
1.1.3
A boom
A depression
A recession
Recovery
Boom
Prosperity
Depression
Peak
The point where economic expansion is at its highest.
A
B
C
D
Boom
Peak
Recovery phase
Trough
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1.1.4
A monetary policy that attempts to curb economic activity is known
as … policy.
A
B
C
D
1.1.5
Fluctuating factors that originate outside the economic system are
referred to as ... factors.
A
B
C
D
1.1.6
Recession
Recovery
Depression
Trough
In the business cycle, the opposite of a peak is a/an…
A
B
C
D
1.1.9
Expansionary
Restrictive
Money supply
Interest rates
Employment figures in the business cycle will increase during a …
A
B
C
D
1.1.8
Indigenous
Exogenous
Endogenous
International
A fiscal policy that attempts to stimulate economic activity.
A
B
C
D
1.1.7
Lagging
Monetary
Expansionary
Restrictive
Upswing
Trough
Downswing
Recession
During a downswing phase, cyclical unemployment will … and
inflation will …
A
B
C
D
Increase; decrease
Decrease; decrease
Decrease; increase
Increase; increase
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1.1.10
In the business cycle, an economic expansion occurs…
A
B
C
D
1.1.11
f the government intends making use of a contractionary fiscal
policy, it should …
A
B
C
D
1.1.12
Recovery phase
Peak phase
Expansion phase
Trough phase
Expansionary fiscal policy refers to_______, while contractionary
fiscal policy refers to_______.
A
B
C
D
1.1.14
Decrease taxes and decrease government spending.
Decrease taxes and increase government spending.
Increase the interest rate.
Increase taxes and decrease government spending
The phase of the business cycle, in which almost all available
resources in the economy are in use, is referred to as…
A
B
C
D
1.1.13
at the peak.
between the peak and trough.
at the trough.
between the trough and the peak.
an increase in government borrowing; decrease in government
spending
decrease in taxes; increase in government spending
an increase in government spending ;an increase in taxes
demand management policy, monetary policy
The business cycle shows …
A
B
C
D
phases of economic cycles as the production output of goods
and services fluctuates due to changes in policy, demand
factors and supply factors.
phases of economic activities as the production of goods only
increases or decreases due to changes in aggregate demand.
Patterns of economic fluctuations along the short-term trend
Patterns of upswings and expansion around the long-term
trend
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1.1.15
Name the economic period between A and B
A
B
C
D
1.2
Contraction
Recovery
Expansion
Peak
Choose a description from COLUMN B that matches the item in COLUMN A.
Write only the letter (A – I) next to the question number (1.2.1 – 1.2.8) in the
ANSWER BOOK, for example 1.2.9 J.
A
COLUMN B
The highest point between the end of an
economic expansion
1.2.2 Peak
B
Changes in business conditions
1.2.3 Economic
fluctuations
1.2.4 Endogenous
factors
C
Originate within the market system
D
A phase of full employment
1.2.5 Jugler cycles
E
The rate of inflation decreases
F
Changes in net investments by business and
government
1.2.1
COLUMN A
Economic
expansion
1.2.6 Economic boom
1.2.7 Economic
recession
1.2.8 Monetary policy
G General period of rising economic activity,
resulting in an increase in real GDP
Measures taken by SARB to influence the
supply of money and interest rate.
(8 × 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 number (1.3.1 – 1.3.15) in the ANSWER BOOK.
Abbreviations, acronyms and examples will NOT be accepted.
1.3.1
Government policy which is aimed at stimulating economic activity
1.3.2
Believes that the market economy is always stable
1.3.3
A period in the economy when economic activity decrease
1.3.4
Government policy aimed at slowing down a fast-growing economy
that is accompanied by high rates of inflation
1.3.5
Causes of business cycles which come from inside the economy
itself
1.3.6
Causes of business cycles that come from outside the economy
1.3.7
A combination of taxation policy and government spending used to
regulate the economy
1.3.8
A fiscal policy that attempts to dampen economic activity
1.3.9
An approach that advocates monetary policy should be used to
smooth out economic cycles
1.3.10
Business cycles that last between three and five years
1.3.11
The recurrent but not periodic pattern of expansion and contraction
1.3.12
The lowest point between the end of an economic recession and
economic expansion
1.3.13
A phase of the business cycle following a recovery in which
economy is at full employment
1.3.14
The highest point between economic expansion and recession
1.3.15
Business cycles that last 50 years and longer
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QUESTION 2:
HINT: When the question requires you to “list” or “name”, you need not write a
sentence but merely one or two words. This MUST be done in bullet form.
2.1
List any TWO types of business cycles
2.2
Name TWO turning points in business cycles
2.3
Name TWO periods recognized in business cycles
2.4
List any TWO phases found in expansion period
2.5
Name any TWO monetary policy instruments
2.6
List any TWO examples of endogenous factors
2.7
Name any TWO examples of exogenous factors
2.8
List TWO instruments of fiscal policy that government can use
2.9
Name any TWO phases found in the contraction period
2.10
Name TWO methods used employed in economic forecasting
QUESTION 3:
(Taken from various sources)
3.1
How does a recession affect the average person?
(1x2)
2
3.2
How does depression affect the economy?
(1X2)
2
3.3
How
(1x2)
3.4
does
fiscal
policy
affect
economy
?
2
Why is fiscal policy important
(1x2)
?
2
3.5
Why is monetary stability important
(1x2)
2
3.6
How does a phase of expansion lead to recession?
(1X2)
2
3.7
What happens to prices when the economy is in a trough?
(1X2)
2
3.8
Why do lower interest rates lead to increased investment?
(1x2)
2
3.9
Why does the level of economic activity fluctuate?
(1X2)
2
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3.10
How does the state use fiscal policy to influence business cycles?
(1x2)
2
QUESTION 4:
Study the information and answer the questions that follow
l
4.1
Identify the point marked 'C' in the graph above.
(1)
4.2
Which feature underpinning forecasting is represented by AC?
(1)
4.3
Briefly describe the term business cycle.
(2)
4.4
Explain the significance of a long-term trend in the economy.
(2)
4.5
How effective are leading indicators in business forecasting? (2x2)
(4)
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QUESTION 5:
Study the information and answer the questions that follow
5.1
Give the alternative term for recovery (growth) as depicted from
trough to peak in the diagram.
(1)
5.2
How is the length of a business cycle measured?
(1)
5.3
Briefly describe the term business cycle.
(2)
5.4
Explain the government policy that is effective in smoothing-out the
business cycle when the economy is at the peak.
(2)
How effective are government policies in stimulating the economy
at the trough?
(2x2)
(4)
5.5
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QUESTION 6:
Study the information and answer the questions that follow
SA DOWNGRADE SETS SCENE FOR GREATER TURMOIL
The Minister of finance warns that Moody’s action to downgrade South Africa will add to
prevailing financial market stress caused by the technical recession emanating from power
outages and currently the COVID 19. South Africa’s financial markets, hit by dislocation
that prompted Reserve Bank intervention could have a shaky start after Moody’s stripped
the country of its last remaining investment-grade rating.
Source: Adapted from: https://mg.co.za/business/2020-03-28-moodys-junk-status-south-africa-economy/
6.1
Name the phase of the business cycle that is discussed on the
above information.
(1)
According to the above information, what has been the cause for
the contractions in the economy?
(1)
6.3
Briefly describe the trough.
(2)
6.4
Briefly explain how loss of income can negatively affect the
performance of economic activities.
(2)
How can the Monetary Policy Committee use interest rate as a tool
to reduce slow economic performance?
(2x2)
(4)
6.2
6.5
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QUESTION 7:
Study the information and answer the questions that follow
7.1
What message is depicted in the above cartoon?
(1)
7.2
What main economic indicator is used to determine the state of the
South African Economy?
(1)
7.3
Give a reason for the current state of the economy.
(2)
7.4
How can government stabilise the business cycle?
(2)
7.5
How can the South African government avoid public – sector
failure?
(2x2)
(4)
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QUESTION 8:
Study the information and answer the questions that follow
SOUTH AFRICA FACING ITS LONGEST DOWNWARD BUSINESS CYCLE SINCE 1945:
According to a report by the Centre for Risk Analysis, South Africa’s latest business cycle
has been in a downward phase since 2013. It seems unlikely that the cycle will experience
an upward trajectory in the near future.
Adapted source: https://www.thesouthafrican.com/south-africa-worst-business-cycle
8.1
Identify the longest period (months) in which South Africa
experienced an upswing in the economy.
(1)
8.2
How long (years) is the current downswing of the South African
economy?
(1)
8.3
Briefly describe the term economic trend
(2)
8.4
Why are long upward amplitudes preferred than long downward
amplitudes in the economy?
(2)
8.5
How can the South African government use open market
transaction to overcome the above ongoing economic decline?
(2x2)
(4)
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QUESTION 9:
Study the information and answer the questions that follow
9.1
Identify a trough in the business cycle above.
(1)
9.2
During which year was the first business cycle fully completed in
the graph above?
(1)
9.3
Briefly describe the term(actual) business cycle
(2)
9.4
How can the South African government use government spending
as fiscal measure to stimulate the economy?
(2)
9.5
How could the South African Reserve Bank have prevented the
business cycle from plunging to T3?
(2x2)
(4)
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QUESTION 10:
Study the information and answer the questions that follow
10.1
Name ONE endogenous cause of business cycles
(1)
10.2
Describe the state of an economy during a recession
(1)
10.3
When is an economy officially in recession
(2)
10.4
What can the SARB do to stimulate the economy?
(2)
10.5
How can aggregate supply be increase to combat inflation caused
by excess demand?
(2x2)
(4)
QUESTION 11:
Study the information and answer the questions that follow
FNB MAINTAINS 7% PRIME LENDING RATE AFTER SARB INTEREST RATES DECISION
Following the South African Reserve Bank’s (SARB) decision to keep interest rates unchanged,
FNB will maintain its prime lending rate at 7 percent.
FNB will review its position after the next SARB Monetary Policy Committee meeting in March
2021.
Source: https://www.iol.co.za/business-report/companies/fnb-maintains-7-prime-lending-rate-after-sarb-interestrates-decision-fab41ba3-778f-4873-a3b5-4c02d582fb4a
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11.1
Name the government policy above
(1)
11.2
Who is the governor for South Africa Reserve Bank
(1)
11.3
Briefly describe the interest rate
(2)
11.4
How do exchange rate policy affect business?
(2)
11.5
Discuss a combination of monetary and fiscal policies
(2x2)
(4)
QUESTION 12:
Study the cartoon below and answer the questions that follow
12.1
Name the causes of exogenous factor above
(1)
12.2
Identify the period of business cycles caused by bad weather
(1)
12.3
Briefly describe the term exogenous factor
(2)
12.4
How does weather affect demand?
(2)
12.5
Discuss the endogenous factors as a cause of business cycle.
(4)
QUESTION 13:
46
© Gauteng Department of Education
Study the information and answer the questions that follow
RECESSION
D
E
C
L
I
N
E
INTEREST RATE
RATE OF INFLATION
ECONOMIC ACTIVITY
EMPLOYMENET
D
E
C
L
I
N
E
13.1
Which phase is after recession in the business cycle
(1)
13.2
Name ONE period of business cycles
(1)
13.3
Briefly describe the term recession
(2)
13.4
Explain the statement “was that your stomach growling”
(2)
13.5
How effective will an expansionary monetary policy be in times of
recession?
(2x2)
(4)
QUESTION 14
Paragraph type of questions
Middle order
14.1
Demonstrate a typical business cycle
(8)
14.2
Explain the nature of business cycle
(8)
14.3
Discuss types of business cycles
(8)
14.4
Distinguish between taxes and government expenditure
(8)
14.5
Discuss interest rate and open market transactions as instruments of
monetary
(8)
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© Gauteng Department of Education
14.6
Discuss cash reserve requirement and moral suasion as instruments of
monetary
QUESTION 15
Paragraph type of questions
(8)
Higher cognitive
15.1
How could the monetarists’ viewpoint on government policies cause a
contraction in a business cycle?
(8)
15.2
Evaluate the use of fiscal policies to influence the economy.
(8)
15.3
How has the Keynesian (endogenous) school of thought influence the
business cycle?
(8)
15.4
How will businesses react to the different phases in the business cycle?
(8)
15.5
How does like of investors contribute to trough in a typical business cycle?
(8)
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SESSION 3:
MACROECONOMICS: BUSINESS CYCLES PART 2
SECTION A: TYPICAL EXAM QUESTIONS
Section A – Short Questions
QUESTION 1:
HINT: When answering Section A – short question, it is important not to rush but to
read the questions carefully and to make sure you understand what the question is
asking. Always remember one alternative is completely wrong, one is nearly correct
and one is totally correct. It is easy to eliminate the completely wrong answer, but if
you do not read the question carefully the nearly correct answer will also appear
correct. The answer will NEVER be two options. Only ONE option is correct. Your
answer will immediately be marked incorrect if you write TWO options.
1.1.1
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
B
C
D
1.1.2
An indication of long-term growth in the economy is
referred to as
the …
A
B
C
D
1.1.3
Length
Trend line
Amplitude
Real output
Trend line
Amplitude
Length
trough
A focus on the improvement of input efficiency is a
characteristic of the … policy.
A
B
C
D
Demand side
Monetary
Demand -and supply side
Supply side
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1.1.4
The activity that minimizes the effects of short-term
economic fluctuations is called …
A
B
C
D
1.1.5
In a business cycle, estimating something known from
Information that is unknown is called …
A
B
C
D
1.1.6
Leading
Co-incident
Lagging
Composite
Demand -side
Supply side
Demand and supply side
Monetary
Changes in technology will lead to a … business cycle.
A
B
C
D
1.1.9
before
The new economic paradigm is embedded in …
policy/policies.
A
B
C
D
1.1.8
Amplitude
Extrapolation
Trend
Interpolation
Economic indicator which shows changes
changes in general level of economic activities.
A
B
C
D
1.1.7
Amplitude
A trend
Moving average
Extrapolation
Demand-driven
Supply driven
Political
Kuznets
A focus on the improvement of input efficiency is a
characteristic of the … side policy.
A
B
C
D
Demand
Supply
Fiscal
Monetary
The number of new vehicles sold is a … business cycle
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1.1.10
indicator.
A
B
C
D
1.1.11
The Phillips curve shows that an increase in aggregate
demand will result in … and …
A
B
C
D
1.1.12
a decrease in unemployment rate; a decrease in inflation rate.
an increase in unemployment rate; a decrease in inflation rate.
an increase in unemployment rate; a decrease in inflation rate.
a decrease in unemployment rate; an increase inflation rate.
The Phillips curve shows the relationship between the…
A
B
C
D
1.2
Lagging
Coincident
Leading
Social
Nominal interest rate and the real interest rate.
Unemployment rate and the inflation rate.
Inflation rate and the interest rate.
Unemployment rate and the interest rate.
Choose a description from COLUMN B that matches the item in COLUMN A.
Write only the letter (A – F) next to the question number (1.2.1 – 1.2.6) in the
ANSWER BOOK, for example 1.2.9 J.
COLUMN A
1.2.1 Trend
A
COLUMN B
Difference in the value of total output
between peak and a trough
1.2.2 Amplitude
B
To identify a trend and then make predictions
accordingly
C
Manufacturing labour productivity
1.2.3 Extrapolation
1.2.4 Philips curve
total value of goods and services produced in an
economy
1.2.5 Leading economic
indicator
D
inflation and unemployment have a stable
and inverse relationship
E
General direction of the economy
F
Number of hours worked in construction
1.2.6 Aggregate supply
(6 × 1)
1.3
(6)
Give ONE term for each of the following descriptions. Write only the term next
51
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to the question number (1.3.1 – 1.3.6) in the ANSWER BOOK. Abbreviations,
acronyms and examples will NOT be accepted.
1.3.1
Economic indicators that do not change direction until after
business cycles changed its direction
1.3.2
the straight line in the business cycle model, which is usually
upward sloping and shows the long-run pattern of change in real
GDP over time
1.3.3
the total supply of goods and services produced by a nation’s
businesses
1.3.4
the total demand for a nation’s output, including household
consumption, government spending, business investment, and net
exports
1.3.5
A statistic used to measure some aspect of the economy
1.3.6
Economic indicator which changes before the economy changes
1.3.7
Economic indicators that simply move at the same time together
with the aggregate economic activity
1.3.8
Amount of time it takes to move through one complete cycle
1.3.9
The difference in the value of total output between a peak and
trough
QUESTION 2:
HINT: When the question requires you to “list” or “name”, you need not write a
sentence but merely one or two words. This MUST be done in bullet form.
2.1
Name TWO economic paradigm policies.
2.2
List
(2X1)
2.3
any
TWO
(2X1)
economic
2
indicators.
2
Name
(2X1)
any
TWO
non-economic
indicators.
2
2.4
List any TWO examples of leading economic indicators.
(2X1)
2
2.5
Name any TWO examples of coincident economic indicators. (2X1)
2
2.6
List
2
any
TWO
lagging
economic
indicators.
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(2X1)
2.7
Name TWO segments of Philips curve.
(2X1)
2
2.8
List any TWO economic sources of efficiency.
(2X1)
2
2.9
Name TWO measures of supply-side policies.
(2X1)
2
QUESTION 3:
(Taken from various sources)
3.1
Why does unemployment decrease when GDP increases?
(1x2)
2
3.2
What is a criticism of the Phillips curve?
(1x2)
2
3.3
How can extrapolation be used in predicting the trend of the
economy?
(1x2)
2
Why does a business cycle diagram serve as a forecasting model?
(1x2)
2
Why does unemployment rise during the recession phase of the
business cycle?
(1x2)
2
3.4
3.5
Data Response
QUESTION 4:
Study the graph below and answer the questions that follow
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4.1
Provide a name for the graph given above.
(1)
4.2
What is the original natural rate of unemployment in the graph
above?
(1)
4.3
Briefly describe the term new economic paradigm.
(2)
4.4
Explain how the government can use its fiscal policy to speed up
the recovery of an economy.
(2)
4.5
With the aid of a graph, illustrate the effect of demand-side and
supply-side policies in smoothing out business cycles.
(2x2)
(4)
QUESTION 5:
Study the information and answer the questions that follow
October 2018
35 044
South Africa: New Passenger Car Sales
October 2019
35 904
5.1
What type of economic indicator is reflected in the table above?
(1)
5.2
In addition to your answer in above, name any other type of
economic indicator.
(1)
5.3
Briefly describe the term economic indicator.
(2)
5.4
Explain the trendline of a business cycle’
(2)
5.5
Analyse the state of the economy by using the data provided in the
table above.
(2x2)
(4)
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QUESTION 6:
Study the cartoon and answer the questions that follow
6.1
Identify the phenomenon illustrated above.
(1)
6.2
Name the infrastructure services in the illustration.
(1)
6.3
Briefly describe the term monetary policy
(2)
6.4
Explain under which circumstances monetary policy will be most
effective to stimulate demand and increase the income level in the
aggregate demand and aggregate supply.
(2)
6.5
How will price increase affect the economy and standard of living?
(4)
55
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QUESTION 7:
Study the graph and answer the questions that follow
Foreign Direct Investment in South Africa decreased by 16545 ZAR Billion in the
third quarter of 2020
Adapted source: https://tradingeconomics.com/south-africa/foreign-direct-investment
7.1
Name the approach of business cycle shown above
(1)
7.2
Which year is having the least on investment?
(1)
7.3
Briefly describe the term lagging economic indicators
(2)
7.4
How an increase in investment may affect unemployment?
(2)
7.5
Calculate the moving averages from January 2018 to January 2020
(2x2)
(4)
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QUESTION 8:
Study the graph below and answer the questions that follow
8.1
Name the new economic paradigm policy illustrated above.
(1)
8.2
What do you think will happen to the AD curve when there is a
decrease in consumer confidence or business confidence?
(1)
8.3
Briefly describe the term aggregate supply.
(2)
8.4
Explain how Changes by Consumers and Firms Can Affect AD.
(2)
8.5
How Government Macroeconomic Policy Choices Can Shift AD
(2x2)
(4)
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QUESTION 9:
Study the information and answer the questions that follow
9.1
Name the new economic paradigm policy illustrated above.
(1)
9.2
Identify the original equilibrium intersection.
(1)
9.3
Briefly describe the term aggregate demand.
(2)
9.4
When does a supply shock shift potential GDP?
(2)
9.5
How does changes in input prices shift the AS curve?
(2x2)
(4)
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QUESTION 10:
Study the extract below and answer the questions that follow
ECONOMIC INDICATORS USED IN FORECASTING
Decreases in newspaper job advertisements, a deterioration in the composite leading
business cycle indicators of South Africa’s major trading partners, fewer hours worked in the
manufacturing sector and softer commodity prices in the month all contributed to a fall.
.
10.1
Identify an example of a leading economic indicator from the above
extract.
(1)
Name the factor that contributed to a fall in the manufacturing
Sector.
(1)
10.3
Briefly explain the term composite indicator.
(2)
10.4
Explain how leading economic indicators are used in forecasting?
(2)
10.5
How can the government use fiscal policy to stimulate the
economy?
(4)
10.2
(2x2)
QUESTION 11:
Study the information and answer the questions that follow
Imports into South Africa reached an all-time high of over R125 billion in October of 2018.
This year, however, the import industry has suffered under restrictions and delays caused
by the global pandemic.
According to Trading Economics imports into South Africa are expected to be around R103
billion by the end of this quarter. They estimate imports into South Africa to reach around
R105 billion in the next 12 months. In the long-term, South African imports are projected to
trend around R106 billion during 2021, increasing to R108 billion by 2022. So, while there is
a definite decline, there are clear signs that the import sector is ready to pick up again.
SA’s main imports are: machinery (23.5% of total imports), mineral products (15.1%),
vehicles and aircraft vessels (10%), chemicals (10.9%), equipment components (8.1%) and
iron and steel products (5.3%r
11.1
Identify an example of a leading economic indicator from the above
(1)
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extract.
11.2
Name ONE example of lagging indicator on the above extract.
(1)
11.3
Briefly explain the term lagging indicator.
(2)
11.4
Why is the unemployment rate an important economic indicator?
(2)
11.5
How does real output affect unemployment?
(4)
(2x2)
QUESTION 12:
Study the information and answer the questions that follow
12.1
Name the feature underpinning forecast labelled A.
(1)
12.2
Identify the economic phase which occurs at A.
(1)
12.3
Briefly describe the term length of a business cycle.
(2)
12.4
What is the purpose of a trend line?
(2)
12.5
How is the length of a particular business cycle measured?
QUESTION 13
Paragraph type of questions
(2x2)
(4)
Middle order
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13.1
Discuss moving averages for 6 with numerical values as features
underpinning forecasts
(8)
13.2
Distinguish the difference between amplitude and extrapolation as features of
underpinning forecasts
(8)
13.3
With aid of diagram discuss Philips curve as demand-side policies
(8)
13.4
Explain reduction in costs as a supply -side policies
(8)
13.5
Discuss expansionary and contractionary policies in smoothing out business
cycles
(8)
13.6
Explain the effect of demand-side and supply-side policies using a graph
(8)
13.7
Discuss lagging and composite as features of underpinning forecasting
(8)
13.8
Use a diagram and discuss the cycle length and amplitude as features
underpinning forecasting
(8)
13.9
With aid of diagram discuss the cycle length and the trend line as features
underpinning forecasting
(8)
13.10
Discuss leading and coincidence as features underpinning forecasting
(8)
QUESTION 14
Paragraph type of questions
Higher cognitive
14.1
How does unemployment and inflation affect GDP?
(8)
14.2
How important are low direct tax rates to achieving supply side
improvements?
(8)
14.3
How has the widespread use of the internet affected the supply side of an
economy
(8)
14.4
Why is it impossible to achieve zero unemployment and low inflation rates
in an economy?
(8)
14.5
Why are leading indicators important in forecasting business cycles?
(8)
SECTION C
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HINT: All section C questions have TWO questions 5 & 6 NOT 9 & 10 like in this
document. In the examination you will need to answer only one.
ESSAY STRUCTURE
HINT: Section C – the long question, must be answered in FOUR sections: Introduction
(definition), Body (headings and full sentences in bullets) additional part and conclusion
(summarising). The mark allocations for Section C is as follows:
MARK
STRUCTURE OF ESSAY:
ALLOCATION:
Introduction
Max 2
The introduction is a lower-order response.
• A good starting point would be to the main concept related to the
question topic
• 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
Max 26
discuss/ Analyse / Compare/ Distinguish/ Differentiate/ Explain/
Evaluate
Additional part: Give own opinion/ Critically discuss/ Evaluate/
Critically evaluate/ Draw a graph and explain/ Use the graph given and
Max 10
explain/ Complete the given graph/ Calculate/ Deduce/ Compare/
Explain Distinguish / Interpret/ Briefly debate/ How/ Suggest
Conclusion
Any Higher or conclusion include:
Max 2
• A brief summary of what has been discussed without repeating facts
already mentioned in the body
• Any opinion or value judgement on the facts discussed
• Additional support information to strengthen the discussion/analysis
• A contradictory viewpoint with motivation, if required
Recommendations
TOTAL
40
QUESTION 15
• Discuss in detail the demand-side policies used in ‘smoothing of cycles’
(26 marks)
•
Explain the effect of supply-side policies on South Africa economy (10 marks)
QUESTION 16
• Discuss in detail the supply- side policies used in ‘smoothing of cycles’
(26 marks)
• Explain peak and trough by using the Philips curve
(10 marks)
SECTION D: Homework
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© Gauteng Department of Education
1.1.1
The new economic paradigm is embedded in … policy/policies.
A
B
C
D
1.1.2
The distance of the fluctuation of a variable from the trend-line is
measured by the …
A
B
C
D
1.1.3
Prosperity
Downswing
Trough
Depression
Indicators which change before the business cycle changes are
called …indicators.
A
B
C
D
1.1.6
demand-driven
political
supply-driven
kitchin
Which period of the business cycle is associated with increased
profits and consumption?
A
B
C
D
1.1.5
moving average
amplitude
frequency
trough
Changes in technology will lead to a … business cycle
A
B
C
D
1.1.4
supply-side
demand and supply-side
demand-side
inflation
lagging
leading
coincident
composite
A technique used in forecasting to predict the unknown by using
facts or information that is known is called …
A
B
C
D
extrapolation
estimation
innovation
moving average
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1.1.7
During an economic recession …
A
B
C
D
1.1.8
An approach that advocates that monetary policy should be used
to smooth out economic cycles
A
B
C
D
1.1.9
increase.
upswing.
downswing.
expansion.
A cycle that shows strength has a…
A
B
C
D
1.2
weather patterns
immobility of markets
demand patterns of consumers
technological change
Retrenchment is the effect of an economic …
A
B
C
D
1.1.12
restrictive fiscal policy
monetary policy
expansionary fiscal policy
SARB policy
Exogenous factors, such as … will cause fluctuations in the level of
economic activity.
a
b
c
d
1.1.11
Keynesiian
Monetarists
Marxism
New economic paradigm
A fiscal policy that attempts to stimulate economic activity is
called …
A
B
C
D
1.1.10
unemployment will increase.
production increases.
spending increase.
real GDP will increase.
long wave length.
short wave length.
high fluctuation.
high amplitude.
Choose a description from COLUMN B that matches the item in COLUMN A.
Write only the letter (A – L) next to the question number (1.2.1 – 1.2.12) in the
ANSWER BOOK, for example 1.2.13 - P.
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© Gauteng Department of Education
Column A
Column B
1.2.1
New
economic A. Exogenous factor influencing business cycles
paradigm
1.2.2 Political shocks
B. Successive periods of fluctuations in
economic activities
1.2.3 Monetarist approach
C. The downwards phase of the business cycle.
1.2.4 Depression
D. Used to measure trends in the economy e.g.
GDP
1.2.5 Contraction phase
E. Stabilising markets using monetary and
fiscal policy
1.2.6 Phillips curve
F. A fiscal policy that attempts to dampen
economic activity
1.2.7 Leading indicators
G. A fiscal policy that attempts to stimulate
economic activity
1.2.8 Economic indicator
H. Economic activity is at its lowest. Deepening
of the recession
1.2.9 Extrapolation
I. Believes that markets are inherently stable.
1.2.10 Business cycle
J. Illustrates the relationship between
Unemployment and inflation
1.2.11 Expansionary fiscal
K. The technique of using known facts/
Policy.
information to predict unknown information.
1.2.12
Restrictive
fiscal L. Building plans passed, opinion surveys and
policy
job advertisements
1.3
Give ONE term for each of the following descriptions. Write only the term next
to the question number (1.3.1 – 1.3.8) in the ANSWER BOOK. Abbreviations,
acronyms and examples will NOT be accepted.
1.3.1
A phase of a business cycle following a recession, in which there
are very low levels of economic output, mass unemployment and
low levels of aggregate income
1.3.2
A policy instrument that uses tax and public expenditure to even
out the swings of the business cycle
1.3.3
A business cycle caused by changes in activity in the building, and
construction industry
1.3.4
The method of predicting the future of a business cycle, based on
historical data
1.3.5
The recurrent but not periodic pattern of increasing and decreasing
economic activity
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1.3.6
A period of sever economic prosperity
1.3.7
The distance from the trend line to the peak and the trough
1.3.8
Factors that cause fluctuations which originate outside the market
system
SECTIOB B:
QUESTION 2
2.1
Name any TWO types of interest rate indicators
(2 x 1)
(2)
2.2
Name TWO service indicators
(2 x 1)
(2)
2.3
List any TWO monetary policy instruments
(2 x 1)
(2)
2.4
Name TWO turning points in a typical business cycle
(2 x 1)
(2)
2.5
Name any TWO measures that improve market efficiency
(2 x 1)
(2)
2.6
List TWO measures to improve the efficiency of inputs
(2 x 1)
(2)
QUESTION 3
3.1
How does the South African government try to smooth out
fluctuations in the business cycle?
(1x 2)
3.2
How will the contraction phase of a business cycle influence the
economy through interest rates?
(1 x 2)
3.3
(2)
(2)
How can extrapolation be used in predicting business cycles?
(2)
3.4
How is length and amplitude of a typical business cycle measured?
(2)
3.5
Why do investors loss confidence during trough?
(1 x 2)
(2)
DATA RESPONSE
QUESTION 4
66
© Gauteng Department of Education
Study the following extract and answer the questions that follow
4.1
Identify the trend line in the business cycle above.
(1)
4.2
Which letter represents a trough in the diagram above?
(1)
4.3
Briefly describe the term business cycle.
(2)
4.4
Explain economic activity during phase EF in the business cycle.
(2)
4.5
How can the length (BF) be used in forecasting of business cycles?
(2x2)
(4)
QUESTION 5
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© Gauteng Department of Education
Study the following information and answer the questions that follow
5.1
What do dotted lines a and b represent?
(1)
5.2
Name turning point D?
(1)
5.3
Briefly describe the term real (actual) business cycles.
(2)
5.4
What is the importance of the length (T2–T3) of a business cycle?
(2)
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© Gauteng Department of Education
5.5
What can the government do to ensure that high inflation does not
occur during peaks of business cycles?
(2x2)
(4)
QUESTION 6
Study the article below and answer the questions that follow.
6.1
How long does a Juglar cycle last?
(1)
6.2
What is the slope of the trendline in the above graph?
(1)
6.3
Describe the term composite indicator.
(2)
6.4
Explain briefly the government’s aim with business cycle policies.
(2)
6.5
How can the length of a business cycle be used in forecasting?
(4)
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QUESTION 7
Study the table below and answer the questions that follow.
YEAR
GDP(bn)
2017
5
2018
8
2019
9
2020
11
2021
4
7.1
Name any other economic indicators used in forecasting
(1)
7.2
List ONE reason for growth of Gross domestic product
(1)
7.3
Briefly describe the term economic indicator.
7.4
Why Is the Moving Average (MA) important for traders and
analysts?
7.5
Calculate moving averages for 5 years above
(2)
(2)
(4)
Question 8
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Study the table below and answer the questions that follow.
8.1
Name the monetary policy instrument above.
(1)
8.2
Which exchange rate policy is being used by South African
Reserve Bank?
(1)
8.3
Briefly describe the term monetary policy.
(2)
8.4
Explain open market transactions as an instrument of monetary
policy.
(2)
8.5
Discuss the difference between cash reserve requirements and
moral suasion.
(4)
QUESTION
9
Paragraph type questions-Middle cognitive
9.1
Explain endogenous approaches to business cycles.
(8)
9.2
Discuss the new economic paradigm.
(8)
9.3
Distinguish between expansion phase and depression phase of a typical
business cycle.
(8)
9.4
Discuss the monetary policy instruments used in stabilising the economy.
(8)
9.5
Discuss the Monetarist approach as a cause of business cycles.
(8)
QUESTION 10
Paragraph type questions-Higher cognitive
10.1
How can taxation be used to stimulate employment in South Africa?
(8)
10.2
How has the Keynesian (endogenous) school of thought influenced business
cycles?
(8)
10.3
How could the Monetarist’s viewpoint on government policies cause a
contraction in the business cycle?
10.4
How does the government use the fiscal policy to restrict the economy?
(8)
(8)
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SECTION C
HINT: All section C questions have TWO questions 5 & 6 NOT 9 & 10 like in this
document. In the examination you will need to answer only one.
ESSAY STRUCTURE
HINT: Section C – the long question, must be answered in FOUR sections: Introduction
(definition), Body (headings and full sentences in bullets) additional part and conclusion
(summarising). The mark allocations for Section C is as follows:
MARK
STRUCTURE OF ESSAY:
ALLOCATION:
Introduction
Max 2
The introduction is a lower-order response.
• A good starting point would be to the main concept related to the
question topic
• 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
Max 26
discuss/ Analyse / Compare/ Distinguish/ Differentiate/ Explain/ Evaluate
Additional part: Give own opinion/ Critically discuss/ Evaluate/ Critically
evaluate/ Draw a graph and explain/ Use the graph given and explain/
Complete the given graph/ Calculate/ Deduce/ Compare/ Explain
Max 10
Distinguish / Interpret/ Briefly debate/ How/ Suggest
Conclusion
Any Higher or conclusion include:
Max 2
• A brief summary of what has been discussed without repeating facts
already mentioned in the body
• Any opinion or value judgement on the facts discussed
• Additional support information to strengthen the discussion/analysis
• A contradictory viewpoint with motivation, if required
Recommendations
TOTAL
40
QUESTION 11
• Discuss in detail the features underpinning forecasting
(26 marks)
• Explain the effect of demand side policies on South African economy
(10)
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SESSION 4:
MACROECONOMICS: PUBLIC SECTOR
SECTION A: TYPICAL EXAM QUESTIONS
10 minutes Section A – Short Questions
QUESTION 1:
HINT: When answering Section A – short question, it is important not to rush but to
read the questions carefully and to make sure you understand what the question is
asking. Always remember one alternative is completely wrong, one is nearly correct
and one is totally correct. It is easy to eliminate the completely wrong answer, but if
you do not read the question carefully the nearly correct answer will also appear
correct. The answer will NEVER be two options. Only ONE option is correct. Your
answer will immediately be marked incorrect if you write TWO options.
1.1.1
Which ONE of the following is presented in October to inform
parliament of changes in budget since February?
A
B
C
D
1.1.2
South African Defence Force services are provided by ...
government.
A
B
C
D
1.1.3
district
local
provincial
central
Goods such as cigarettes which are deemed to be socially harmful
are called … goods.
A
B
C
D
1.1.4
Main budget
Medium-term Budget Policy Statement
Medium-term Expenditure Framework
National Budget
demerit
communal
merit
collective
The government’s financial year ends on this date
A
B
C
D
28 February
31 March
01 April
30 April
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1.1.5
The … government encompasses metropolitan, districts and
municipalities.
A
B
C
D
1.1.6
The budget deficit for developing countries should not exceed … %
of GDP.
A
B
C
D
1.1.7
Regulation
Privatisation
Nationalisation
Deregulation
Social grants to the citizens of South Africa form part of the ...
policy.
A
B
C
D
1.1.11
Philips
Lorenz
Laffer
Demand
This refers to the transfer of functions, activities and ownership of
the private sector to the public sector.
A
B
C
D
1.1.10
deregulation.
government withdrawal.
regulation.
market economy.
The … curve illustrates the relationship between taxation
and government income.
A
B
C
D
1.1.9
4
3
6
5
The removal of unnecessary restrictions by law is …
A
B
C
D
1.1.8
local
provincial
national
central
monetary
growth
trade
fiscal
Value-Added Tax (VAT) is an example of a/an … tax
A
B
C
ad valorem
direct
excise duty
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1.1.12
D specific
A tax system is progressive if…
A
B
C
D
1.1.13
The government increases government spending to try to reduce
unemployment. This is an example of …
A
B
C
D
1.1.14
buying goods and services.
employing labour.
making transfer payments.
raising taxes.
An indirect tax such as value-added tax is regressive since …
A
B
C
D
1.1.17
the acquisition of commercial companies by the public sector.
the acquisition of private companies by the public sector.
the acquisition of public companies by the private sector.
the acquisition of mining by the private sector.
When government is paying old-age pensions, it is intervening in
the economy by…
A
B
C
D
1.1.16
expansionary monetary policy.
contractionary monetary policy.
expansionary fiscal policy.
contractionary fiscal policy.
Nationalisation refers to…
A
B
C
D
1.1.15
an increase in tax causes prices to increase but wages to fall.
the average tax rate increases as taxable income decreased.
an increase in taxable income causes an increase in tax paid.
the marginal tax increases while the average tax rate
decreases.
rich people pay a higher amount of taxes while poor people
pay a lower amount of taxes.
poor people pay a higher amount of taxes while rich people
pay a lower amount of taxes.
the percentage of income, which rich people pay towards
taxes, is less than the percentage of income that poor people
pay towards taxes.
the percentage of income, which rich people pay towards
taxes, is more than the percentage of income that poor people
pay towards taxes.
The electronic filing (eFiling) system of the South African Revenue
Service is an example of dealing with…in a tax system.
A
B
C
Personal income tax
Equity
Administrative simplicity
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D
1.1.18
Price stability implies that…
A
B
C
D
1.1.19
Public
Free market
Government
South African Reserve Bank
The current value added tax in South Africa is
A
B
C
D
1.1.23
flat rate.
user charge.
municipal tax.
Boycott.
Public goods are provided by the…
A
B
C
D
1.1.22
1 April to 31 March
31 march to 1 April
1 May to 30 April
1 January to 31 December
A fixed amount paid by consumers on water and electricity
irrespective of the units consumed is known as a…
A
B
C
D
1.1.21
inflation must be low.
prices must not change at all.
wages must be the same.
prices in all countries must be the same.
The financial year of the government runs from…the following year
A
B
C
D
1.1.20
Indirect taxes
14%
16%
15%
18%
The relationship between tax rates and tax revenue is illustrated in
the …
A
B
C
D
Lorenz curve.
Philips curve.
Laffer curve.
Tax curve.
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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 number (1.2.1 – 1.2.8) in the
ANSWER BOOK, for example 1.2.9 J.
COLUMN A
1.2.1 Central national
government
1.2.2 Demerit goods
1.2.3 Budget
1.2.4 Local government
1.2.5 Medium Term Budget
Policy Statement (MTBPS)
1.2.6 State Owned Enterprises
(SOE)
1.2.7 Bureaucrat
1.2.8 Taxes
1.2.9 Monetary Policy Committee
of the Reserve Bank (MPC)
1.2.10 Value Added Tax (VAT)
A
B
C
D
E
F
G
H
I
J
K
1.3
COLUMN B
An official in a government department
Deals with local issues within a town or
municipal area
Government's statement setting out its
three-year budget
A business owned wholly or partly by
the state and run by a public authority,
e.g. Eskom and SAA
Direct or indirect compulsory payments
to the government.
Concerned with national issues, e.g.
safety and security
Decides on the country's monetary
policy
Taxes levied on the sale of goods and
services
A document that details the expected
revenue and projected expenditure
Harmful goods, e.g. cigarettes
Deals with economic and other issues
specific to a region/province
Give ONE term for each of the following descriptions. Write only the term next
to the question number (1.3.1 – 1.3.22) in the ANSWER BOOK.
Abbreviations, acronyms and examples will NOT be accepted.
1.3.1
Those goods and services provided by the state for use by all the
members of a society
1.3.2
Refers to an increase in the production of goods and services in
the economy
1.3.3
State -owned enterprises that provide public goods and services on
behalf of government
1.3.4
A situation where individuals realise that they will still benefit from a
good or service even if they don’t pay for it
1.3.5
Goods which it is not possible to exclude people from using once
they have been provided
1.3.6
Goods which are non-rivalrous in consumption
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1.3.7
A situation that arises when free market forces of supply and
demand fail to lead to an efficient allocation of resources
1.3.8
A good or service whose provision has more public benefit than
private benefit
1.3.9
Goods such as cigarettes which are deemed to be socially harmful
1.3.10
A situation in which a person is required to explain their decisions
and expenditure
1.3.11
All resources are allocated in such a way that it is not possible to
make anybody better off without making someone else worse off.
1.3.12
The process whereby stated owned enterprises and state-owned
assets are sold to private individuals
1.3.13
The process whereby the state takes control and ownership of
privately-owned assets and private enterprises
1.3.14
The statement of
anticipated income
1.3.15
A system of budgeting which requires the state to use a rolling
budget for three-year period
1.3.16
Tax imposed on consumers when they purchase goods and
services
1.3.17
A tax imposed on certain luxury items in order to discourage
consumption of these goods
1.3.18
A tax levied on the sale of goods and services
1.3.19
A tax that is levied on the income of business
1.3.20
Refers to price reduction causes more consumers to buy more of
the cheaper goods
1.3.21
Attempts by interest groups to influence government behaviour to
their advantage
1.3.22
The branch of economics that studies decision making by the
economy as a whole
government’s
planned
expenditure
and
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QUESTION 2:
HINT: When the question requires you to “list” or “name”, you need not write a
sentence but merely one or two words. This MUST be done in bullet form.
2.1
Name any TWO taxes on goods and services
(2X1)
2
2.2
Name TWO objectives of the state
(2X1)
2
2.3
Name TWO types of public goods
(2X1)
2
2.4
Name any
provisioning
TWO
problems
experienced
in
public
sector
(2X1)
2
Name the TWO main fiscal policy instruments that can be used by
government to regulate the economy
(2X1)
2
2.6
List any TWO necessity of the public sector
(2X1)
2
2.7
List any TWO items of main budget
(2X1)
2
2.8
List any TWO effects of fiscal policy
(2X1)
2
2.9
Name TWO variables of national budget
(2X1)
2
2.10
Name TWO features of fiscal policy
(2X1)
2
2.11
List any TWO effects of public sector failure
(2X1)
2
2.12
List any TWO reasons for public sector failure
(2X1)
2
2.13
List any TWO composition of the public sector
(2X1)
2
2.14
Name TWO features of public sector failure
(2X1)
2
2.15
List any TWO equitable share grants to municipalities
(2X1)
2
2.5
QUESTION 3:
3.1
3.2
3.3
(Taken from various sources)
How does wasteful spending by the government affect economic
growth?
(1x2)
2
What is the effect of the fiscal policy on the general price level?
(1x2)
2
How does the South African government use progressive tax to
achieve economic equity?
(1x2)
2
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3.4
What is the relationship between the main budget and MTEF?
(1x2)
2
3.5
Why would public sector failure lead to economic instability?
2
3.6
Why are public goods important?
(1x2)
2
3.7
How are socio-economic rights are embedded in the budgets of the
South
African
government?
(1x2)
2
3.8
How does public debt affect GDP?
(1x2)
2
3.9
Why is the debt to GDP ratio important?
(1x2)
2
3.10
How does government spending affect the unemployment rate?
Data Response
QUESTION 4:
2
(Taken from various sources)
Study the information and answer the questions that follow
4.1
Name a monetary instrument used to achieve price stability.
(1)
4.2
What is the inflation target range set by the South African
Reserve Bank?
(1)
4.3
Briefly describe the term repurchase rate (Repo rate).
(2)
4.4
Explain the reason why government pursues price stability as a
macroeconomic objective.
(2)
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4.5
How does the South African Reserve Bank maintain price stability?
(4)
QUESTION 5:
Study the information and answer the questions that follow
5.1
Identify the fiscal instrument shown on the above table.
(1)
5.2
According to the table above, how much is contributed by
companies to government revenue?
(1)
5.3
Briefly describe the term national budget
(2)
5.4
Calculate the value of A from the above table.
(2)
5.5
How does public sector failure affect the tax system of the country?
(2x2)
(4)
QUESTION 6:
Study the information and answer the questions that follow
We won't privatise state enterprises needed for development
As government works on reforming state-owned enterprises (SOEs), the president has
assured that state assets will be kept if they are strategic for the development of the
economy of South Africa.
During the State of the Nation Address, the president shared on the progress made in
turning around state-owned enterprises which have been plagued with corruption and
mismanagement.
It was highlighted that over the past year, new boards had been appointed at Eskom,
Denel, Transnet, Safcol, Prasa and SA Express. The new boards had been mandated with
addressing corruption of the past.
[Adapted from: Fin 24 Newsletter, 7 February 2019]
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6.1
Which policy is used by the government to influence economic
activities?
(1)
6.2
What is the role of the Minister of Finance?
(1)
6.3
Briefly describe the term privatisation.
(2)
6.4
Briefly explain why the government aims to achieve economic
growth.
(2)
How will the eradication of corruption and mismanagement of
SOEs benefit the economy?
(2x2)
(4)
6.5
QUESTION 7:
Study the information and answer the questions that follow
7.1
Name the biggest contributor of revenue to the State.
(1)
7.2
What is the current VAT rate in South Africa?
(1)
7.3
Briefly describe the term indirect tax.
(2)
7.4
Why is it necessary for government to provide schools and
hospitals for its citizens? .
(2)
7.5
How does the Minister of Finance use his discretion on fiscal
decisions?
(2x2)
(4)
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QUESTION 8:
Study the information and answer the questions that follow
8.1
Which curve is depicted in the graph above?
(1)
8.2
What tax rate will generate maximum revenue for the government?
(1)
8.3
What is the correlation between a tax rate of zero and a tax rate of
100%
for government?
(2)
8.4
Why will an increase in tax rate not necessarily increase
government revenue?
(2)
8.5
Suggest ways that the state can use to increase its revenue
without increasing taxation.
(2x2)
(4)
QUESTION 9:
Study the information and answer the questions that follow
PUBLIC AND PRIVATE SECTOR INTEGRATION
Financial investments through public private partnerships are critical in meeting
the socio-economic needs of the people. Addressing backlogs in essential public
services and simultaneously maintaining fiscal prudence require the country's
budgetary resources to work harder.
(Source: https://mg.co.za/tag/gauteng-treasury)
9.1
Name ONE example of socio-economic needs of people.
(1)
9.2
Give ONE example how the private sector can assist the
government to address socio-economic issues.
(1)
9.3
Briefly describe the term public-private-partnerships.
(2)
9.4
What is fiscal prudence?
(2)
9.5
How can public private partnerships contribute to income
(4)
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redistribution?
(2x2)
QUESTION 10:
Study the information and answer the questions that follow
Illicit cigarettes cost SA billions in lost revenue
The drop in sales volumes of excise-paid tobacco products has resulted in a significant loss
of revenue for the government, as consumers move to cheaper illicit products, said
economic research house Econometrix on Tuesday.
Citing National Treasury data, Econometrix said income from tobacco excise declined by
R1.94 billion between 2015/16 and 2017/18, despite the government raising excise taxes
annually for several years in a bid to discourage smoking while collecting revenue.
“Considering the high price elasticity for tobacco products, holding excise at current levels
is the only way to prevent further erosion of the tax base, while enforcement measures are
implemented to curb the illicit tobacco trade,” Jammine said.
Source: The citizen
10.1
Identify other excise tax which is not mentioned in the article.
(1)
10.2
What is the other name for excise taxes?
(1)
10.3
Briefly describe the term tax
(2)
10.4
Explain the criteria for a good tax.
(2)
10.5
Analyses who bears the burden of a specific excise tax. (2x2)
(4)
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QUESTION 11:
Study the information and answer the questions that follow
'Where will government find R4bn?': Taxis demand Covid-19 billions
Taxi bosses have rejected a R1.1bn Covid-19 relief payment from the government and are
threatening to bring SA to a halt unless they get billions more.
The R1.1bn offer of a one-off payment was turned down in talks between the South African
National Taxi Council (Santaco) and transport minister Fikile Mbalula this week. Taxi owners
are demanding R20,000 per taxi for each month of the lockdown. With an estimated
200,000 taxis across SA, a bailout on these terms could cost up to R4bn a month.
Santaco did not give a total figure for how much it wanted but insists further talks with
Mbalula on the taxpayer-funded bailout would be on the basis of its numbers, not his. The
taxi industry has announced fare hikes of between 10% and 25% nationwide
It is understood taxi owners also want the regulation restricting them to 70% loads
scrapped. Mbalula is apparently open to granting that request but is standing firm on the
R1.1bn figure.
Source: Sunday times
11.1
Name the reason for public sector failure from the extract above.
(1)
11.2
Identify one positive externalities for using public transport.
(1)
11.3
Briefly describe the term rent-seeking.
(2)
11.4
What can government do to avoid public sector failure?
(2)
11.5
Discuss the instruments available to government to achieve its
objectives
(2x2)
(4)
QUESTION 12:
Study the information and answer the questions that follow
PUBLIC SECTOR CHALLENGES
The public sector comprises three levels of government, namely national, provincial and
local government. The government programmes include the Medium-term strategic
Framework implemented from 2014-2019 as part of the National Development Plan. It
consists of various focus areas such as education, health and economic growth and
development
12.1
Which level of government develops policy and coordinates
services across all nine provinces?
(1)
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12.2
Name ONE macroeconomic objectives of the state.
(1)
12.3
Briefly describe the term accountability.
(2)
12.4
How will the government benefit from privatising state-owned
enterprises?
(2)
12.5
Why is the pricing policy a problem for the government in respect
of the provisioning of goods and services?
(2x2)
(4)
QUESTION 13:
Study the information and answer the questions that follow
Inflation edges up as food and drink prices bite
13.1
Name the effect of fiscal policy illustrated above.
(1)
13.2
List other effect of fiscal policy.
(1)
13.3
Briefly describe the term consumption.
(2)
13.4
Explain why the Laffer curve has a characteristic shape.
(2)
13.5
Discuss the relationship government spending and the level
of national income.
(2x2)
(4)
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QUESTION 14:
Study the information and answer the questions that follow
2021 tax year (1 March 2020 - 28 February 2021)
14.1
Name one source of government revenue.
(1)
14.2
Which department is responsible for personal income tax?
(1)
14.3
Briefly describe the term personal income tax.
(2)
14.4
How do taxes affect the economy in the long run?
(2)
14.5
Calculate personal income tax for Ms Mhlanga who earns
R120 429
(2x2)
(4)
QUESTION 15
(taken from various DBE past papers)
Paragraph type of questions
Middle order
15.1
Briefly discuss efficiency and parastatals as reasons that contribute to public
sector failure.
(8)
15.2
Differentiate between community goods and collective goods.
(8)
15.3
Explain accountability as a problem of public sector provisioning.
(8)
15.4
Explain privatisation as a problem of public sector provisioning.
(8)
15.5
Explain management failure and lack of motivation as reasons for public
sector failure.
(8)
15.6
Illustrate with an aid of diagram the Laffer curve.
(8)
15.7
Explain how socio-economic rights are embedded in the budgets of the South
(8)
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African government
15.8
Differentiate between Medium Term Expenditure Framework (MTEF) and
Medium Term Budget Policy Statement (MTBPS)
(8)
15.9
Explain discretion as effect of fiscal policy
(8)
15.10
Explain sources of government income
(8)
15.11
Discuss reasons for inefficiency of the public sector
(8)
15.12
Distinguish special interest groups and lack of motivation as reason for public
sector failure.
(8)
QUESTION 16
(taken from various DBE past papers)
Paragraph type of questions
Higher cognitive
16.1
Evaluate the impact of value added tax in the economy.
(8)
16.2
How can the government reduce the cost of the business sector to stimulate
aggregate supply?
(8)
16.3
How successful is the government in achieving its macroeconomic
objectives?
(8)
16.4
How can the government improve the efficiency of service delivery?
(8)
16.5
Evaluate the provisioning of public goods and services in South Africa
(8)
16.6
Why are State-Owned Enterprises (SOE’s) seen as a problem in public sector
provisioning?
(8)
16.7
Evaluate the impact of social rights that promoted through the national budget
(8)
16.8
How is it possible to exclude individuals from using public goods
(8)
16.9
How does poor service delivery affect the community?
(8)
16.10
How does expansionary fiscal policy affect interest rates?
(8)
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SECTION C
HINT: All section C questions have TWO questions 5 & 6 NOT 9 & 10 like in this
document. In the examination you will need to answer only one.
ESSAY STRUCTURE
HINT: Section C – the long question, must be answered in FOUR sections: Introduction
(definition), Body (headings and full sentences in bullets) additional part and conclusion
(summarising). The mark allocations for Section C is as follows:
MARK
STRUCTURE OF ESSAY:
ALLOCATION:
Introduction
Max 2
The introduction is a lower-order response.
• A good starting point would be to the main concept related to the
question topic
• 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
Max 26
discuss/ Analyse / Compare/ Distinguish/ Differentiate/ Explain/
Evaluate
Additional part: Give own opinion/ Critically discuss/ Evaluate/
Critically evaluate/ Draw a graph and explain/ Use the graph given and
Max 10
explain/ Complete the given graph/ Calculate/ Deduce/ Compare/
Explain Distinguish / Interpret/ Briefly debate/ How/ Suggest
Conclusion
Any Higher or conclusion include:
Max 2
• A brief summary of what has been discussed without repeating facts
already mentioned in the body
• Any opinion or value judgement on the facts discussed
• Additional support information to strengthen the discussion/analysis
• A contradictory viewpoint with motivation, if required
Recommendations
TOTAL
40
QUESTION 17
• Discuss in detail the reasons for public sector failure
•
What are the consequences of public sector failure?
(26 marks)
(10 marks)
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SECTION D: Homework - (taken from various DBE past papers)
1.1.1
Large public corporations or business entities in the public sector
are known as:
A
B
C
D
1.1.2
The transfer of ownership from the public to the private sector is
known as …
A
B
C
D
1.1.3
Strike
Strategy
Initiative
Policy
In the case of merit goods, the market tends to…these goods
A
B
C
D
1.1.6
provincial budget.
main budget.
mini budget.
medium-term expenditure framework(MTEF)
A definite course of action which is adopted by a group or
organisation in an effort to promote best practice is known as…
A
B
C
D
1.1.5
decentralisation.
nationalisation.
privatisation.
title deeds.
Government income and expenditure estimates for a three-year
period are reflected in the …
A
B
C
D
1.1.4
Corporates.
Departments.
Parastatals
Enterprises
undersupply
oversupply
tax
sell
The role of government is threefold. What are the three functions of
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government
A
B
C
D
1.1.7
Which ONE of the following is presented in October to inform
parliament of changes in the budget since February ?
A
B
C
D
1.1.8
6
9
7
10
Education is an example of a …
A
B
C
D
1.2
Central government
Provincial government
Local government
Public corporation
Provincial government consist of …provinces
A
B
C
D
1.1.10
Main budget
Medium-term Budget Policy Statement
Medium-term Expenditure Framework
National Budget
In which sphere of government is City of Johannesburg?
A
B
C
D
1.1.9
Allocative, dispersal and stabilization functions
Allocative, dispersal and equitable distribution functions
Allocative, equitable distribution and stabilization functions
Equitable distribution, dispersal and stabilization functions
demerit good.
merit good.
production good.
public good.
Choose a description from COLUMN B that matches the item in COLUMN A.
Write only the letter (A – I) next to the question number (1.2.1 – 1.2.8) in the
ANSWER BOOK, for example 1.2.9 J.
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1.2.1
COLUMN A
Parastatals
A
1.2.2
Accountability
B
Tax imposed on consumers when they
purchase goods and services
1.2.3
Value added tax
C
It is not possible to exclude people from
using goods once they have been provided
1.2.4
Laffer curve
D
Shows the relationship between tax rates
and tax revenue
E
State -owned enterprises that provide public
goods
F
The statements of governments planned
expenditure and anticipated income
1.2.5
1.2.6
COLUMN B
Person is required to give an explanation of
their decisions and expenditure
National budget
Excise duty
1.2.7. Medium-term
expenditure
framework
G A system of budgeting which requires the
state to use a rolling budget for three years
1.2.8. Collective goods
H
Tax imposed on certain luxury items
(8 × 1)
1.3
(8)
Give ONE term for each of the following descriptions. Write only the term next
to the question number (1.3.1 – 1.3.5) in the ANSWER BOOK. Abbreviations,
acronyms and examples will NOT be accepted.
1.3.1
An economic system that allows for the simultaneous operation of
state-owned and privately owned enterprises
1.3.2
Costs which result from the production of a good or services but
which are not reflected in the price of the product
1.3.3
Goods which are non-rivalrous in consumption
1.3.4
A situation where individuals realise that they will still benefit from a
good or service even if they do not pay for it
1.3.5
Relating to government finances such as government revenue or
expenses
SECTIOB B:
QUESTION 2
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2.1
Name any TWO pricing policy options
2.2
.
(2 x 1)
(2)
List TWO instruments of fiscal policy?
(2 x 1)
(2)
2.3
Name TWO examples of government expenditure
(2 x 1)
(2)
2.4
Name TWO examples of social services .
(2 x 1)
(2)
2.5
List any TWO forms of the public sector
(2 x 1)
(2)
3.1
How is the public benefiting from the government subsidised
products?
(1 x 2)
(2)
3.2
What is the main aim of privatisation?
(1 x 2)
(2)
3.3
Why is it important for the government to use the tax system
effectively?
(1 x 2)
(2)
3.4
How does government impact society?
(1 x 2)
(2)
3.5
Why is value-based pricing better?
(1 x 2)
(2)
QUESTION 3
QUESTION 4
Study the information and answer the questions that follow
4.1
What is the deficit rule percentage of GDP?
(1)
4.2
Name one use for government borrowing money.
(1)
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4.3
Briefly describe the term national debt.
(2)
4.4
Explain the discretion of the debit rule.
(2)
4.5
How does deficit spending relate to the national debt?
(2x2)
(4)
QUESTION 5:
Study the information and answer the questions that follow
5.1
Which period does a person over the age of 65 and over receive
R128 650
(1)
5.2
Which age is exempt from income tax in South Africa
(1)
5.3
Briefly describe the term fiscal policy
(2)
5.4
How does education benefit from taxes
(2)
5.5
Calculate the personal income tax for Mr Samsung who earns
R260 500
(2x2)
(4)
QUESTION 6
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Study the article below and answer the questions that follow.
6.1
Name any ONE budget plan that the government oversees.
(1)
6.2
What challenge is the government facing as depicted in the cartoon
above?
(1)
6.3
Briefly describe the term budget..
(2)
6.4
Why will an increase in tax rate not necessarily increase
government revenue ?
(2)
6.5
How can the government effectively reduce management
failure?
(2 x 2)
(4)
QUESTION 7
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Study the table below and answer the questions that follow.
TAX REVENUE
PERSONAL INCOME TAX
CORPORATE INCOME TAX
VAT
CUSTOMS AND EXCISE DUTIES
FUEL LEVIES
OTHERS
TOTAL
2018/ 19
505.8bn
231.2bn
348.1bn
97.4bn
77.5bn
84.8bn
1344.8bn
7.1
Identify ONE indirect tax from the table above.
(1)
7.2
Name the government department responsible for monitoring the
effective use of public funds.
(1)
7.3
7.4
7.5
Briefly describe the tax excise duties.
Why is it necessary for government to provide schools and
hospitals for its citizens?
Calculate the total percentage contribution of personal income tax
to the government’s total tax revenue. Show all calculations.
(Round-off to two decimal places.)
(2)
(2)
(4)
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Question 8
Study the table below and answer the questions that follow.
8.1
Name non-profit organisation that are financed by the central
government
(1)
8.2
List any provincial government in South Africa
(1)
8.3
Briefly describe the term public sector)
(1)
8.4
How does the central government control the economy?
(1)
8.5
Discuss the main duties of government according to Adam Smith
(1)
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QUESTION
9
Paragraph type questions-Middle cognitive
9.1
Briefly discuss distribution of income (economic equity) and price stability
as macroeconomic objectives.
(8)
9.2
Explain accountability as problems of public sector provisioning
(8)
9.3
Discuss the reasons for the existence of a public sector
(8)
9.4
Differentiate between productive and allocative Inefficiency
(8)
9.5
Explain the reasons for public sector failure.
(8)
QUESTION 10
Paragraph type questions-Higher cognitive
(taken from various DBE past papers)
10.1
How can the South African municipalities improve efficiency in service
delivery?
(8)
10.2
Evaluate the provisioning of public goods and services in South Africa
(8)
10.3
Evaluate the success of the South African Reserve Bank in maintaining price
stability in the economy.
10.4
How does corruption influence good governance in South Africa?
(8)
10.5
How can the South African government going about to achieve a more
equitable income distribution?
(8)
(8)
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SECTION C
HINT: All section C questions have TWO questions 5 & 6 NOT 9 & 10 like in this
document. In the examination you will need to answer only one.
ESSAY STRUCTURE
HINT: Section C – the long question, must be answered in FOUR sections: Introduction
(definition), Body (headings and full sentences in bullets) additional part and conclusion
(summarising). The mark allocations for Section C is as follows:
MARK
STRUCTURE OF ESSAY:
ALLOCATION:
Introduction
Max 2
The introduction is a lower-order response.
• A good starting point would be to the main concept related to the
question topic
• 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
Max 26
discuss/ Analyse / Compare/ Distinguish/ Differentiate/ Explain/ Evaluate
Additional part: Give own opinion/ Critically discuss/ Evaluate/ Critically
evaluate/ Draw a graph and explain/ Use the graph given and explain/
Complete the given graph/ Calculate/ Deduce/ Compare/ Explain
Max 10
Distinguish / Interpret/ Briefly debate/ How/ Suggest
Conclusion
Any Higher or conclusion include:
Max 2
• A brief summary of what has been discussed without repeating facts
already mentioned in the body
• Any opinion or value judgement on the facts discussed
• Additional support information to strengthen the discussion/analysis
• A contradictory viewpoint with motivation, if required
Recommendations
TOTAL
40
QUESTION 11
• Evaluate the problems of public sector provisioning in South Africa
•
(26 marks)
Outline examples of problems with regards to public sector provisioning you have
observed in your own community or elsewhere in South Africa
(10 marks)
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