Grade 8 EMS Exam
June 2014
Time: 90 Minutes
Name: __________________________
Marks: 120
Set: _____
Teacher: _____
INSTRUCTIONS
1
Write your name on this question paper and on the ANSWER SHEET
2
Answer ALL questions.
3
For SECTION A:
Write all your answers on the ANSWER SHEET provided at the back of the question
paper
For SECTION B:
Write all your answers on the QUESTION PAPER.
4
Read each question carefully.
5
A neat and systematic presentation of facts is required.
6
Answer in full sentences where applicable.
7
Use only a black or blue pen.
8
Non – programmable pocket calculators may be used.
THIS QUESTION PAPER CONSISTS OF 10 PAGES AND ONE ANSWER SHEET.
SECTION A:
QUESTION 1
For each question there are four possible answers, A, B, C and D. Choose the one you
consider correct and record your choice in the appropriate space on the ANSWER
SHEET provided.
1.1
Which one of the following concepts is the most fundamental to the study of
economics:
A.
B.
C.
D.
1.2
Choice is an important element in the basic economic problem because
A.
B.
C.
D.
1.3
a centrally planned economy
a pure market economy
an economy which performs perfectly
a mixed market economy
When is the budget described as being “in surplus”?
A.
B.
C.
D.
1.6
a R10 note
a farm
a printing machine
a teacher
The South African economy is:
A.
B.
C.
D.
1.5
limited economic resources have many alternative uses
high demand leads to higher market prices
scarce economic resources are distributed equally
wants increase with income
What is not a factor of production?
A.
B.
C.
D.
1.4
money
profit
scarcity
prices
when government spending is smaller than government revenue
when exports are smaller than imports
when government spending is bigger than government revenue
when the demand for money and the supply of money are equal
Partnership Deeds or Articles will contain: A.
B.
C.
D.
Names and details of partners
Dates and times of meetings
Main activity of the business
Capital contributed by the owners
2
1.7
The public limited company has at least … owners?
A.
B.
C.
D.
1.8
The owner and the life of this business are very closely related - the death of the owner
will mean the demise of the business in its current form.
A.
B.
C.
D.
1.9
one
two
seven
ten
Close corporation
Private company
Sole trader
Public company
A company made R1m profit and decided to distribute the profits between the 200 000
shares issued to investors. Mr Walsh owns 250 shares in the company, he will thus
receive R… in dividends.
A.
B.
C.
D.
R1 000
R1 250
R8 000
R400
1.10. In a market economy, what does the entrepreneur decide?
A.
B.
C.
D.
the combination of resources used
the demand for the product
the equilibrium price of the product
the level of profits
(20)
QUESTION 2
Indicate with a cross (X) on the ANSWER SHEET whether each of the following
statements is TRUE or FALSE.
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
The continuity of the private company is limited to the lifespan of the owners.
The current Minister of Finance is Pravin Gordhan
Capital goods are goods used in the production of other goods.
The company uses the money received from selling shares to develop and grow the
business.
Wants are goods necessary for survival.
Firms are producers of goods and services.
In a personal budget variable expenses include items such as groceries, petrol and
entertainment
The government of a country has five main economic objectives.
It is possible for a person to avoid an indirect tax by simply not taking part in the
transaction which has been taxed
In the free market economy it is the price mechanism which allocates resources.
(10)
3
SECTION B
QUESTION 4: (Basic Economic Concepts)
4.1
30 marks
Provide a brief explanation and example of the following concepts:
4.1.1 Want: _______________________________________________________________
__________________________________________________________________________
________________________________________________________________________ (2)
4.1.2 Demerit good: _________________________________________________________
__________________________________________________________________________
________________________________________________________________________ (2)
4.1.3 Opportunity cost: _______________________________________________________
__________________________________________________________________________
________________________________________________________________________ (2)
Name the FOUR ‘Factors of Production’ and the ‘Income’ earned by each of them.
4.2
Factor of Production
Income
1.
1.
2.
2.
3.
3.
4.
4.
(8)
4.3
Making choices involves three basic questions about production. State the three
questions.
4.3.1
__________________________________________________________________ (1)
4.3.2 __________________________________________________________________ (1)
4.3.3. __________________________________________________________________ (1)
4
4.4
With reference to the ‘Traditional’ economic system answer the following questions:
4.4.1 Provide another name for the system: ____________________________________ (2)
4.4.2. Complete the table below indicating with an X as to whether there is a high or low
expectancy of the economic characteristics listed:
Characteristic
High
Low
Specialisation
Self Sufficiency
High standard of living
(3)
4.5
Identify and briefly explain TWO characteristics of a command economy.
4.5.1 Characteristic 1: _______________________________________________________
__________________________________________________________________________
________________________________________________________________________ (2)
4.5.2 Characteristic 2: _______________________________________________________
__________________________________________________________________________
________________________________________________________________________ (2)
4.6
Identify and explain TWO advantages of a market economy.
4.6.1 Advantage 1: __________________________________________________________
__________________________________________________________________________
________________________________________________________________________ (2)
4.6.2 Advantage 2: __________________________________________________________
__________________________________________________________________________
________________________________________________________________________ (2)
5
QUESTION 5: (Budgeting)
5.1
30 marks
Provide a brief explanation of the following concepts:
5.1.1 Budget: ______________________________________________________________
__________________________________________________________________________
________________________________________________________________________ (2)
5.1.2 Direct tax: ____________________________________________________________
__________________________________________________________________________
________________________________________________________________________ (2)
5.1.3 Fiscal policy: __________________________________________________________
__________________________________________________________________________
________________________________________________________________________ (2)
5.1.4 Budget deficit: _________________________________________________________
__________________________________________________________________________
________________________________________________________________________ (2)
5.2
When we analyzed the national budget for 2014 we saw the four largest components
of government expenditure were:




Education: R253.8 billion
General Public services: R180.0 billion
Health: R145.7 billion
Social protection: R144.5 billion
Looking at these components, what do you think government is trying to achieve with
this spending?
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
________________________________________________________________________ (4)
6
5.3
In 2014/15, the government expects to receive R1 099.2 trillion in revenue. With the
aid of the pie chart below, calculate how much of that will be raised through VAT. Show
all your working.
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
________________________________________________________________________ (4)
5.4
Examine the table below and answer the questions which follow:
Taxable Income (R)
0 – 174 550
174 551 – 272 700
272 701 – 377 450
377 451 – 528 000
528 001 – 673 100
673 101 and above
SARS Tax tables 2014 – 2015
Rate of Tax (R)
18% of taxable income
31 419 + 25% of taxable income above 174 550
55 957 + 30% of taxable income above 272 700
87 382 + 35% of taxable income above 377 450
140 074 + 38% of taxable income above 528 000
195 212 + 40% of taxable income above 673 100
5.4.1 South Africa follows a “progressive” income tax system. Using the information in the
table to assist you, explain what this means. _________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
________________________________________________________________________ (4)
7
5.4.2 Do you think it is a fair system considering the South African context? Explain your
answer. ______________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
________________________________________________________________________ (4)
5.4.3 Calculate how much tax a person would pay if they earn R600 000 per year. Show
your working. __________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
________________________________________________________________________ (4)
5.4.4 Give one example of a South African tax designed to change behaviour rather than to
raise revenue: ______________________________________________________ (2)
QUESTION 6: (Entrepreneurship and Forms of Ownership)
6.1
30 marks
Provide a brief explanation of the following concepts:
6.1.1 Entrepreneur: _________________________________________________________
__________________________________________________________________________
________________________________________________________________________ (2)
6.1.2 Notice of incorporation: __________________________________________________
__________________________________________________________________________
________________________________________________________________________ (2)
6.1.3 Dividends: ____________________________________________________________
__________________________________________________________________________
________________________________________________________________________ (2)
8
6.2
Identify FOUR characteristics usually associated with successful entrepreneurs:
Characteristic
1.
2.
3.
4.
(4)
6.3
Identify and briefly explain TWO advantages and ONE disadvantage of a being an
entrepreneur.
6.3.1 Advantage 1: __________________________________________________________
__________________________________________________________________________
________________________________________________________________________ (2)
6.3.2 Advantage 2: __________________________________________________________
__________________________________________________________________________
________________________________________________________________________ (2)
6.3.3 Disadvantage 1: _______________________________________________________
__________________________________________________________________________
________________________________________________________________________ (2)
6.4
Explain why it is important to develop entrepreneurship in South Africa_____________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
________________________________________________________________________ (4)
9
6.5
Complete the table below with regards to the characteristics of a partnership and a
private company.
Characteristic
Partnership
Private Company
Minimum and maximum
number of owners?
Liability of owners?
Documents associated
with starting the
business?
Name requirements for
the business?
Legal autonomy?
(10)
TOTAL: /120/
10
Grade 8 EMS Exam
June 2014
ANSWER SHEET
Name: __________________________
Set: _____
1.1
A
B
C
D
1.2
A
B
C
D
1.3
A
B
C
D
1.4
A
B
C
D
1.5
A
B
C
D
1.6
A
B
C
D
1.7
A
B
C
D
1.8
A
B
C
D
1.9
A
B
C
D
1.10
A
B
C
D
2.1
TRUE
FALSE
2.2
TRUE
FALSE
2.3
TRUE
FALSE
2.4
TRUE
FALSE
2.5
TRUE
FALSE
2.6
TRUE
FALSE
2.7
TRUE
FALSE
2.8
TRUE
FALSE
2.9
TRUE
FALSE
2.10
TRUE
FALSE
Teacher: _____
11