Bedfordview Primary School
TERM 4 TEST
Name:
Subject: ECONOMIC MANAGEMENT SCIENCES
Examiner: Mrs T. Naidoo
Moderator: Mrs P. Naidoo
Grade: 7_____
Date: 22 November 2021
Maximum mark: 100
Time Allocation: 90 minutes
INSTRUCTIONS
1. An extra 10 minutes will be provided for reading.
2. Write neatly and legibly.
3. Answer in the spaces provided on the answer sheet provided.
4. This question paper consists of 6 pages. The answer sheet consists of 4 pages
5. You may use a calculator for the budget and net worth questions.
Question Analysis
Question
Maximum
Mark
1
2
3
4
THE ECONOMY/
ENTREPRENEURSHIP/FINANCIAL
LITERACY
10
10
5
5
6
7
FINANCIAL LITERACY
10
15
13
8
TOTAL
ENTREPRENEURSHIP
17
20
100
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
QUESTION
CONTENT COVERED
MARK AND DURATION
1. MATCHING
THE ECONOMY
10 MARKS
10 MINUTES
2. MULTIPLE CHOICE
FINANCIAL LITERACY
10 MARKS
10 MINUTES
3. TRUE OR FALSE
ENTREPRENEURSHIP
5 MARKS
5 MINUTES
4. WORD BANK
FINANCIAL LITERACY
10 MARKS
10 MINUTES
5. SHORT QUESTIONS
THE ECONOMY
15 MARKS
15 MINUTES
6. BUDGET
FINANCIAL LITERACY
13 MARKS
10 MINUTES
7. NETWORTH
FINANCIAL LITERACY
17 MARKS
20 MINUTES
8. CASE STUDY
ENTREPRENEURSHIP
20 MARKS
20 MINUTES
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QUESTION 1: MATCHING
10 MARKS
Match the descriptions in column A with the terms in Column B. Write the letter
from column B next to the question number.
Column A
1.1 Any action (buying or selling) where money
is involved
1.2 Goods and services that are produced for
sale
1.3 The rate at which the price of goods and
services rises
1.4 Work that is done directly with goods and
services being produced
1.5 How quickly inputs can be turned into
outputs
1.6 Resources that can be replaced
1.7 The manufacture of goods and services that
can be used for sale or bartering
Column B
A. Production
1.8 Land, raw materials, semi processed
materials
1.9 The resources and labour that a business
needs to produce its goods
1.10 The effect of technology on production
H. Outputs
B. Input
C. Resources
D. Mass production
E. Transaction
F. Inflation
G. Productivity
I. Renewable
J. Labour
QUESTION 2: MULTIPLE CHOICE
10 MARKS
Four options are provided as possible answers to the following questions. Choose the
correct answer and write the letter next to the question number. e.g., 2.11 D
2.1 If a business’ expenses are more than its income.
A
B
C
D
Profit
Loss
Surplus
Savings
2.2 Money received by leasing out a part of the business building
A
B
C
D
Current income
Rent income
Sales
Profit
2.3 An example of a retail business.
A
B
C
D
Café
Plumber
Doctor
Teacher
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2.4 The value of the business is known as…
A
B
C
D
Drawings
Assets
Capital
Owner’s Equity
2.5 Which one is not a current asset?
A
B
C
D
Cash float
Trading stock
Creditors
Petty cash
2.6 An example of a fixed asset.
A
B
C
D
Bank
Buildings
Debtors
Investment policy
2.7 A … is dependent on the number of hours worked.
A
B
C
D
Bonuses
Commission
Salary
Wage
2.8 Describes the financial situation of a person or business, at a particular time.
A
B
C
D
Statement of net worth
Income and expenditure statement
Balance Sheet
A & C are correct
2.9 The owner’s salary that is paid by the business is referred as ….
A
B
C
D
Fixed deposit
Drawings
Salary
Capital
2.10 Which one of the following is not an operating expense for a business?
A
Packaging
B
Vehicles
C
Interest paid on a bond
D
Telephone
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QUESTION 3: TRUE OR FALSE
5 MARKS
Identify whether the following statements are true or false. Write only the word ‘True’ or ‘False’
next to the question number.
3.1
3.2
3.3
3.4
3.5
A SWOT analysis helps an entrepreneur decide whether their new business idea will work.
Advertising is a way to sell products, but marketing is about identifying the customer and
making sure that the customer’s needs are met.
Fixed costs are directly linked to the product e.g., each skirt made needs one zip.
Mass Media is only done by large businesses as it is expensive.
Cost price is the difference between what was paid to make the product and the amount the
article is sold for.
QUESTION 4: WORD BANK
10 MARKS
Choose the correct answer from the word bank to complete the missing words from the passage.
Write your answer next to the question number on your answer sheet.
assets
bank
budget
capital
expenses
financial records
income
personal
loss
liability
transaction
A ____ (4.1) _____is a document that enables a person to save money from their ____ (4.2) ____
income which could be salaries or wages. To start a business some of these savings can be used
as______ (4.3) _____ to purchase _____ (4.4) _____ and pay ____ (4.5) ______. The first
____ (4.6) _____ will be to open a ____ (4.7) _____ account. Receipts and a cash register roll
provide ______ (4.8) _____ for the business. If the owner must take a loan from a bank this will be
classified as a ___ (4.9) _____. At the end of a specific period, usually a year, the owner will draw
up a cash budget to calculate whether the business has made a profit or ____4.10 ____.
QUESTION 5: SHORT QUESTIONS
5.1
15 MARKS
Explain two ways in which you think we can use our resources in a more sustainable
way.
(2)
5.2
Explain what you understand by ‘economic growth’
(2)
5.3
State two ways in which Governments can help with economic growth
(2)
5.4
Discuss how technology improves productivity and economic growth
(4)
5.5
Explain how banks contribute to economic growth
(2)
5.6
List any three main services offered by banks?
(3)
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QUESTION 6: BUDGET
13 MARKS
Use the following information to prepare a cash budget for Naidoo Traders on 30 September 2021.
Naidoo Traders sell shoes and repair shoes.
Sales of shoes for June is R85 750
Income on Shoe repairs for June is R4 800
Naidoo Traders had the following expenses for the month of June this year









Staff salaries R35 000
Bond repayment R8500
Leather purchases R 15 400
Fabric purchases R2500
Water and electricity R3 100
Telephone R860
Shoelaces R975
Men’s Insoles R2300
Shoe glue R640
QUESTION 7: NET WORTH
17 MARKS
Read the following scenario to work out a personal statement of net worth.
Pieter Verster is worried that he is 45 years old and only has R12 500 in his bank account. Pieter
worked for 20 years as an attorney and believes he is worth nothing in financial terms. His friend
Manny told him to make a list of all his possessions and what he owes to other people and
businesses.
Manny has asked you to help him prepare a statement of net worth for Pieter on 31 October 2021.
The following is a list of the things that Pieter has and owes.
He owns a town house
R 850 000
He owns a car
R 340 000
He owns a motor bike
R 65 000
He owns furniture
R 120 000
He owns electrical appliances
R 54 000
He owes money on a bond
R 280 000
Money in the bank
R12 500
Money on a fixed deposit
R 40 000
His brother borrowed money from him a week ago
R 12 000
He has a clothing account
R 8 600
QUESTION 8: CASE STUDY
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20 MARKS
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Read through the case study and answer the questions that follow.
The Mahlangu family have a portable television and would like to buy a flat screen television for
R12 000. Joseph Mahlangu is the breadwinner and receives a salary of R15 000 per month.
Joseph is a salesman for a car dealership in Randburg and has been working for 10 years in the
motor sales industry. His wife does not work but loves cooking and baking. A friend suggested that
they prepare a budget to save money for the television.
8.1
What do we call Joseph Mahlangu’s salary as an accounting concept?
1
8.2
Explain what is meant by the “breadwinner” of the family?
2
8.3
Would a budget help the family to buy a television? Motivate your answer.
2
8.4
Is the flat screen television a want or a need? Explain your answer.
2
8.5
According to the case study there are three possible ways the Mahlangu family can earn
extra income per month? What are they?
3
8.6
What saving advice or tip would you give Joseph that you have learnt about this year
2
8.7
State the difference between Savings and investments?
2
8.8
Do you think the Mahlangu’s are living below the poverty line?
Provide a reason for your answer
2
A neighbour has started a stokvel and has asked Joseph to join.
What is a stokvel and would this be a good way to save for the television?
2
8.9
8.10
In March this year, Joseph contracted the Covid19 virus from a colleague at work and had
to self-isolate for 14 days. What effect has the pandemic had on the economy since
December 2019.
2
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