Formal Assessment Task Grade 7 Term 2 Marks: 100 Duration: 90 min. Date: Name: Grade 7: ________ INSTRUCTIONS: 1. All questions are COMPULSARY. 2. Write neatly and legibly. 3. Read through the questions carefully and make sure that you allocate Enough time for each question. 4. A calculator is permissible. 5. This paper consists of 3 section: Section A, B, C Section A: Short questions /30 Section B: The Economy /20 Section C: Financial Literacy /50 Total: /100 1|Page SECTION A: MULTIPLE CHOICE Total: /30 marks QUESTION 1 1.1 Various options are given as possible answers. Choose the correct answer and underline the answer next to the question number. 1.1.1 Bartering means: A. A surplus of goods B. Exchanging goods C. A specialisation of goods because of farming. D. Using money to buy goods. 1.1.2 When money is used to make trade easier it is known as a…… A. Electronic banking B. A medium of exchange C. promissory note D. stock trading 1.1.3 ………… is when individuals accept money for the products they have produced and use this money to purchase other goods. A. Direct trade B. Liability C. Indirect trade D. Bartering 1.1.4 Which of the following is NOT an advantage of online banking? A. It saves time B. You stand in long queues C. You do not need to go to the bank. D. Transactions are processed much more quickly. 1.1.5 Is the money to start a business. A. Capital B. Finance C. Investments D. Expense (2 X 5 = 10) 2|Page QUESTION 2: MATCH TYPE Match the statements in Column A with answers in column B. Write only the letter of the correct answer next to the question number. E.g. 1.2.1-H 2.2.1 2.2.2 2.2.3 2.2.4 2.2.5 COLUMN A Something that you have to have. COLUMN B A. Public services ANSWER 2.2.1 A large group of people who live or work together in a particular place Something you want to have but it is not essential for survival. Services that the government provides that everyone in the community needs. Things that the government provides that everyone in the community uses B. Wants 2.2.2 C. Needs 2.2.3 D. Community 2.2.4 E. Public goods 2.2.5 (2 X 5 = 10) QUESTION 3 State whether the following statements are true or false. Write only True or False. 3.1 An example of a social need is the need to achieve success. ___________________ 3.2 Social interaction is a secondary need. 3.3. The economic problem is that we have unlimited needs/wants but limited resources. ________________________________ 3.4. We call resources that will completely run out one day renewable resources. _____________ 3.5. Tax is charged by businesses in order to expand their business. ________________ (2 X 5 = 10) 3|Page SECTION B: ECONOMY TOTAL: /20 QUESTION 4 Use the list of words given below to complete the following statements. Fill in the missing words. Market share, trading business, service business, A trading license economic goods, grant, Goods, A small business self-sufficient, Non-renewable resources, Services, VAT 4.1. A document bought from local authorities giving them the right to trade. __________________ 4.2. This business makes a profit from buying and selling goods. 4.3. The part of the market in which you sell your goods/services. ________________________ 4.4. A business that makes a profit from the provision of a service. _________________________ 4.5. Tax paid on the goods and services that you buy. ___________________ 4.6. This business employs between 5 to 50 people. 4.7. Work done for the benefit of another. _______________________ 4.8. Resources that can run out and cant be replaced 4. 9. Things that we consume and are tangible. 4.10. An allowance which means that no payment is required. (1x10=10) 4|Page QUESTION 5 5.1 Complete the following table, by deciding if the items possess the characteristics of money. Is the item Is the item Is the item Can the item be relatively scare? durable? portable? divided into smaller unit? Sand Shells Coins Cheques Notes (5 X 2 =10) SECTION C: FINANCIAL LITERACY TOTAL: QUESTION 6 Complete the following 6. Calculate the difference in the third column. State in the fourth column whether the difference is a profit or loss. Nr Income E.g. R300 Expenses R100 1 R10 200 R6 400 2 R5 200 R7 800 3 R124 200 R100 300 4 R23 400 R30 000 5|Page Difference R200 Profit or loss Profit /50 5 R46 200 R18 200 (5x2=10) (10x1=10) 6|Page QUESTION 7 Use the following information to compile Robert William s personal budget for March. Robertss monthly allowance (pocket money) from his parents is R750. Robert works as a waiter on Saturdays at a local restaurant and earns a basic hourly wage of R20. A normal Saturday night shift is 5 hours. Robert plans to work 3 Saturdays in March and thinks that he will receive R85, per shift, in tips. Robert uses his monthly allowance to pay for: Petrol for his motorbike: R263 Monthly entertainment costs: R350 Tuck shop at school: R90 Monthly repayment for sound system: R175. Compile Robert s budget for March. Calculate whether Robert has made a profit or a loss: Budget R Income 1) 2) 3) Expenses 1) 2) 3) 4) Profit/loss (1x8=8) 7|Page QUESTION 8 Read the following case study and prepare and calculate the Net Worth. Xolile Khosa gave you the following information and asked you to prepare his Statement of Net Worth. Property R150 000 Clothing accounts to pay R4 500 Car R75 000 Savings Account R4 000 Furniture R 12 3000 Money in bank R1 670 Computer R 12 400 XOLILE KHOSA STATEMENT OF NET WORTH Cell Phone R2 100 Loan to uncle R 2000 R 1) 2) 3) 4) 5) 6) 7) Total Assets R 1) 2) Total Liabilities R NET WORTH R (1x12=12) 8|Page QUESTION 9 Explain the following concepts: 9.1 Income 9.2 Expenses 9.3 Profit 9.4 Loss 9.5. Transaction (2X5=10) QUESTION 10 Complete the column by identifying the type of investment a business owner can decide on 1 Description The business can use excess money to expand the business 2 Money is invested for a length of time. 3 A business can purchase a property for the business or to rent to other businesses or people and receive income from it. Type of personal income (3x2=6) 9|Page QUESTION 11 Review Alices Hairdressers business budget for June 2021 and answer the questions that follow. Income: Expenses: Services rendered R800 Shampoo R100 Products sold R300 Hairspray R150 Wages R300 11.1 How much is Alices income for the month? (1) 11.2 How much is Alices expenses for the month? (1) 11.3 Does Alice have any money left for the month? If so, how much? (2) (1x4=4) 10 | P a g e
