economics assignment memo

ECONOMICS PAPER 1 GRADE 12 MEMORANDUM - NSC EXAMS PAST PAPERS AND MEMOS MAY/JUNE 2021

ECONOMICS PAPER 1 GRADE 12 NATIONAL SENIOR CERTIFICATE EXAMINATIONS MAY/JUNE  2021

SECTION A (COMPULSORY)

1.1.1 B – Kitchin ✓✓ 1.1.2 D – depreciation ✓✓ 1.1.3 D – infant ✓✓ 1.1.4 C – real flows ✓✓ 1.1.5 A – local ✓✓ 1.1.6 C – Expanded Public Works Programme ✓✓ 1.1.7 B – social ✓✓ 1.1.8 A – corridor ✓✓ (8 x 2) (16)

1.2.1 B – a complete ban imposed on the importing of goods from a particular country ✓ 1.2.2 C – measured from peak to peak or trough to trough ✓ 1.2.3 A – when a country engages in foreign trade and produces a given good at a lower input cost than other countries ✓ 1.2.4 D – the proportion of income that households do not consume ✓ 1.2.5 E – consumption by one person does not reduce the consumption by another person ✓ 1.2.6 H – levied on properties according to their market value ✓ 1.2.7 I – extensive increase in organized economic activity to manufacture, mine, farm and deliver services ✓ 1.2.8 F – economic goods which do not take a tangible and storable form ✓

(8 x 1) (8)

1.3.1 Phillips ✓ 1.3.2 Closed ✓ 1.3.3 Integrated Manufacturing Strategy ✓ 1.3.4 Spatial Development Initiatives ✓ 1.3.5 Specific ✓ 1.3.6 Endogenous/Keynesian✓ (6 x 1) (6)

TOTAL SECTION A: 30 SECTION B Answer any TWO of the three questions in this section in the ANSWER BOOK.

QUESTION 2: MACROECONOMICS

2.1 Answer the following questions. 2.1.1 Name any TWO examples of a strategic industry.

• energy (fuels)SASOL /Eskom✓
• iron and steel /Iscor✓
• agriculture (basic foodstuffs) ✓
• chemicals (fertilizers) ✓
• Tele-communication✓
• Vaccine manufacturers✓
• Automobile (Accept any other correct relevant response) (2 x 1) (2)

2.1.2 How does a progressive income tax system influence income redistribution?

Progressive income tax influences income redistribution by reducing the gap between the rich and the poor ✓✓ (Accept any other correct relevant response) (1 x 2) (2)

2.2 Study the table and answer the questions that follow.

2.2.1 Which year does the South African Reserve Bank currently use as the base year?

2010/2015 ✓ (1)

2.2.2 Identify the figure used to cater for errors and omissions when calculating the Gross Domestic Product at market prices.

R19 097 m ✓ (1)

2.2.3 Briefly describe the term gross domestic expenditure.

Expenditure (spending) on all goods and services produced within the borders of a country within a specific period of time. ✓✓ (Accept any other correct relevant response) (2)

2.2.4 What effect would an increase in imported clothing have on domestic textile manufacturers?

• Domestic textile manufacturers should face more competition that might force them to produce less ✓✓
• They might have less customers/market share/sales that will reduce profits ✓✓
• They might be forced to be more innovative due to high competition from foreign producers ✓✓
• Quality of their products should improve and they will become more competitive in global markets. ✓✓ (Accept any other correct relevant response)(2)

2.2.5 How does gross capital formation impact the economy positively?

• The increased capital base of the country will increase production capacity✓✓
• Gross capital formation will contribute to the growth potential of the economy through value-adding process ✓✓
• Balance of Payments problems will decrease by an increase in export production ✓✓
• Households may benefit from employment opportunities thus reducing poverty/government will achieve its goal of full employment and collect more tax revenue✓✓ (Accept any other correct relevant response) (2 x 2) (4)

2.3 Study the extract and answer the questions that follow.

2.3.1 Name the institution that promotes trade liberalisation.

World Trade Organisation / WTO ✓ (1)

2.3.2 Give ONE form of economic integration.

• Custom union ✓
• Common market ✓
• Economic union ✓
• Monetary union ✓
• Free trade area✓ (1)

2.3.3 Briefly describe the term free trade.

Free trade is when consumers and producers are free to buy goods and services anywhere in the world without restrictions ✓✓ (Accept any other correct relevant response) (2)

2.3.4 Why will import substitution have a negative effect on consumers in the long run?

• Consumers' choice will decrease as they will be limited to domestic products only ✓✓
• Consumers may pay higher prices on domestic products due to less competition ✓✓ (Accept any other correct relevant response) (2)

2.3.5 How could African countries benefit from a new free trade agreement?

• enjoying lower prices on goods and services ✓✓
• enjoying free movement and job opportunities across borders ✓✓
• specialising in the production of goods where they enjoy a comparative advantage ✓✓
• producing goods in large quantities that comes as a result of specialisation ✓✓
• producing better quality products due to improved innovation ✓✓
• improving relationships through mutual gains from the exchange of goods among themselves ✓✓
• improving consumer welfare as a result of more choice of goods and services ✓✓ (Accept any other correct relevant response) (2 x 2) (4)

2.4 With the aid of a correctly labelled graph, explain the effects of demand-side policies to stimulate economic activity during a recession. 

• Demand-side policies involve expansionary monetary such as a decrease in interest rates that encourage borrowing that would increase consumption an investment. ✓✓
• Expansionary fiscal policy that involves a decrease in tax and an increase in government spending will increase spending as well. ✓✓
• Both policies will result in a shift aggregate demand from AD to AD1 while aggregate supply remains at AS. ✓✓
• Real GDP will increase from Q to Q1 when aggregate demand increases✓✓
• The general price level will increase from P to P1 ✓✓
• The demand-side policies maybe used to stimulate economic growth although inflation may increase ✓✓ (Accept any other correct relevant response) (A maximum of 4 marks will be allocated for mere listing of facts/examples) (Max 4) (8)

2.5 How could an increase in investments contribute towards a higher national income in the economy?

• Investments will benefit national income by:
• increasing the capital base of the economy, to expand the production capacity ✓✓
• creating more job opportunities and increasing income levels of households, stimulating aggregate demand ✓✓
• increasing competition when new businesses are established, resulting in increased efficiency in production ✓✓
• encouraging the introduction of new production technologies resulting in higher productivity ✓✓
• expanding the tax base for the government, leading to higher tax revenue/ to finance infrastructure development projects ✓✓
• increasing the competitiveness of local businesses on global markets/ stimulating the demand for exports ✓✓ (Accept any other correct relevant response) (A maximum of 2 marks will be allocated for mere listing of facts/examples) (8) [40]

QUESTION 3: ECONOMIC PURSUITS

3.1 Answer the following questions.

3.1.1 Name any TWO examples of Industrial Development Zones in South Africa.

• Coega (steel and auto) ✓
• OR Tambo International Airport (high tech) ✓
• East London (vehicles) ✓
• Richards Bay (metals) ✓
• Mafikeng IDZ ✓
• Saldanha Bay (steel) ✓
• Dube Trade Port ✓ (2 x 1) (2)

3.1.2 How can Public Private Partnerships contribute more to regional development?

• PPPs stimulate the development of infrastructure in underdeveloped areas ✓✓ (Accept any other correct relevant response) (1 x 2) (2)

3.2 Study the extract and answer the questions that follow.

3.2.1 Identify the institution that promotes small businesses.

Small Enterprise Development Agency / SEDA ✓ Small Enterprise Finance Agency / (SEFA) ✓ (1)

3.2.2 Which economic challenge is addressed by Small, Medium and Micro Enterprises in the economy?

• Unemployment /employment✓
• Poverty/distribution of income ✓
• Address economic and social inequalities✓ (Accept any other correct relevant response) (1)

3.2.3 Briefly describe the term employment.

When people between 15 and 65, who are willing and able to work, find jobs and in return receive a wage or salary for services provided ✓✓ (Accept any other correct relevant response) (2)

3.2.4 How do Small Medium and Micro Enterprises benefit from the Small Business Support Programme?

• SMMEs receive a tax-free cash grant for investment in industries ✓✓
• New or expanding businesses will receive the grant for three years, after which the company is expected to be self-sustaining ✓✓
• Provision of business advise and related services✓✓
• They access platforms which provide the business infrastructure support and a regulatory environment that enable entrepreneurs to thrive. ✓✓
• They access platforms which provide the business infrastructure support and a regulatory environment that enable entrepreneurs to thrive. ✓✓ (Accept any other correct relevant response) (2)

3.2.5 What are the challenges in implementing Broad-based Black Economic Empowerment?

BBBEE faces the following challenges:

• the majority of people do not have finances to buy shares to participate in the ownership / shareholding of companies ✓✓
• rural and local communities do not all have access to economic opportunities. ✓✓
• corruption in the awarding of contracts, resulted in few people benefitting from BBBEE ✓✓
• fronting resulted in many people failing to benefit from the policy ✓✓
• a lack of skills and necessary knowledge led to many black women and youth not being able to occupy top management strategic positions in companies ✓✓ (Accept any other correct relevant response) (2 x 2) (4)

3.3 Study the diagram and answer the questions that follow.

3.3.1 Which focus area provides economic infrastructure for industrial development?

Special Economic Zones / SEZs /Spatial Development Initiatives/SDIs✓ (1)

3.3.2 Name the Industrial Development Policy that sets out the government's broad approach to industrial development.

National Industrial Policy Framework / NIPF ✓ (1)

3.3.3 Briefly describe the term innovation.

The incorporation of new ideas into production processes ✓✓ (Accept any other correct relevant response) (2)

3.3.4 How does industrial development promote entrepreneurship in the economy?

Industrial development:

• encourages entrepreneurs to exploit the world economy to trade and acquire knowledge ✓✓
• boosts improved innovation and technology ✓✓
• motivates entrepreneurs to establish large scale production ✓✓ (Accept any other correct relevant response) (2)

3.3.5 What are the challenges faced by the Industrial Policy Action Plan?

• A lack of policy coherence and programme alignment ✓✓
• The opening-up of the economy to a diversity of participants has not happened ✓✓
• Concentration and vertical integration within sectors has increased since 1994, reinforced by high barriers to entry. ✓✓
• High private sector input costs – steel, chemicals and products in the plastics value-chain - remains a continuing constraint on the competitiveness of SA manufacturing. ✓✓
• Continued escalation of electricity costs ✓✓
• High port charges and inefficiencies are a significant barrier and constraint on the export of value-added goods ✓✓
• Current structure of the SA economy is ill suited to the creation of large numbers of jobs at appropriate skill levels. ✓✓
• Inadequate state support for investment, upgrading, innovation and technology✓✓ (Accept any other correct relevant response) (2 x 2) (4)

3.4 Discuss the general benchmark criteria for regional development.

• Good governance requires democratic decision-making, transparency, financial management and control ✓✓
• An integrated approach to ensure that the benefits of one region spill over to other industries and areas ✓✓
• Partnerships should be built between central government and the private sector ✓✓
• Provision of resources should be sufficiently provided in poorly resourced areas ✓✓
• Competitiveness requires that industries and businesses established as a result of regional policies should not need ongoing financial aid from the government ✓✓
• Development of people, for people, by people aims to serve people by training, education, improving productivity and providing essential goods and services to raise the standards of living in regions. ✓✓
• Development from below is necessary to concentrate on issues at grass roots level where most urgent human needs exist. It starts by dealing with poverty. ✓✓
• Total development as a multi-dimensional process: Treat development from a global perspective covering all human life, including the interaction of special forces in a community✓✓, e.g. education, health, nutrition✓ (Accept any other correct relevant response) (A maximum of 4 marks may be allocated for the mere listing of facts / examples) (4 x 2) (8)

3.5 Evaluate the use of supply-side measures in solving the persistent low economic growth in South Africa.

Supply-side measures have been successful in solving low economic growth by:

• offering incentives, such as cash grants and subsidies to enhance export promotion / attract private sector investments and FDIs ✓✓
• lowering tax rates to motivate people to work harder to increase their income / increase production levels in the economy ✓✓
• lowering income tax rates may also encourage people to save more / improving availability of loanable funds for investment ✓
• increasing labour productivity through better education, training and healthcare services leads to higher production output ✓✓
• promoting (entrepreneurship), establishment of small businesses and new industries to increase competition / limit monopolies / oligopolies ✓✓

Supply-side measures still need to be improved in terms of:

• ensuring efficient and reliable supply of infrastructure services, such as transport and energy, to reduce the cost of doing business ✓✓
• reducing administrative cost, such as inspections and unnecessary regulations / by imposing simpler tax and operational regulations ✓✓
• privatising some of the state-owned assets to improve efficiency in service delivery ✓✓
• reducing government intervention by removing unnecessary rules and regulations / ensure free market operation / improve market efficiency ✓✓ (Accept any other correct relevant response) (A maximum of 2 marks may be allocated for the mere listing of facts / examples) (8) [40]

QUESTION 4: MACROECONOMICS AND ECONOMIC PURSUITS

4.1 Answer the following questions.

4.1.1 Name any TWO effects of international trade.

• specialisation ✓
• mass production /large scale production/economic growth✓
• efficiency/competition ✓
• globalisation ✓ (Accept any other correct relevant response) (2 x 1) (2)

4.1.2 How do consumers in the importing country benefit from dumping?

• Consumers will pay lower prices for imported goods ✓✓ (Accept any other correct relevant response) (1 x 2) (2)

4.2 Study the extract and answer the questions that follow.

4.2.1 Identify the account in the Balance of Payments that records exports and imports of goods and services.

Current account ✓ (1)

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4.2.2 Which commodity is recorded as a separate export item in the South African Balance of Payments?

4.2.3 Briefly describe the term terms of trade.

Terms of trade expresses a country's ratio of export prices in terms of its import prices ✓✓ (Accept any other correct relevant response) (2)

4.2.4 Explain the impact of an increase in export prices on South Africa's trade balance.

• Export earnings or the value of total exports would increase resulting in an increase in the value of the trade balance /
• Demand for exports would decrease, reducing the volume of export and the trade balance. ✓✓ (Accept any other correct relevant response)(2)

4.2.5 How can import control be used in order to correct the Balance of Payments deficit?

• BoP deficit can be corrected by imposing import tariffs and import quotas ✓✓
• Import tariffs makes imported goods more expensive thereby discouraging local markets from buying them ✓✓
• Import quota limits the amount or quantity of imports allowed to the economy ✓✓ (Accept any other correct relevant response) (2 x 2) (4)

4.3 Study the cartoon and answer the questions that follow.

4.3.1 Which government department is responsible for budgeting?

Department of Finance ✓ (1)

4.3.2 Name ONE factor that contributed to downgrading of the South African economy.

• Rising debt ✓
• Falling revenue ✓
• Widening deficit ✓
• Corruption ✓
• Low GDP growth ✓
• High unemployment ✓
• Power shortages✓
• Poor investor confidence✓ (Accept any other correct relevant response)(1)

4.3.3 Briefly describe the term affirmative action.

A policy that seeks to redress past discrimination through active measures to ensure equal opportunity, as in education and employment ✓✓ (Accept any other correct relevant response) (2)

4.3.4 What impact will South Africa's credit rating to junk status have on the economy?

• Government would have to pay more in interest, which leaves less money for services (healthcare, education) and investment in infrastructure. ✓✓
• Government would need more money to cover its basic expenses. ✓✓
• Downgrading may lead to increased taxes ✓✓
• Disinvestment may occur which leads to low economic growth and increased levels of unemployment. ✓✓ (Accept any other correct relevant response) (2)

4.3.5 How could state-owned enterprises contribute towards expanding the economy?

• Creating more job opportunities and appointing competent management. ✓✓
• Offering skills development programmes to improve productivity of existing workers ✓✓
• maintaining or servicing their machinery and equipment regularly to ensure quality service delivery ✓✓
• Dealing with corruption to reduce wastage of public funds ✓✓ (Accept any other correct relevant response) (2 x 2) (4)

4.4 Briefly discuss extrapolation and amplitude as features in the forecasting of business cycles. Extrapolation:

• Forecasters use past data e.g. trends and by assuming that this trend will continue, they make predictions about the future ✓✓
• Something unknown is estimated from facts or information that are known ✓✓
• If it becomes clear that the business cycle has passes through a trough and has entered a boom phase, forecasters might predict that the economy will grow in the months that follow ✓✓
• It is also used to make economic predictions such as future share prices✓✓ (Max 4)
• The difference between the total output between a peak and a trough ✓✓
• Measures the distance of the oscillation of a variable from the trend line ✓✓
• The intensity (height) of the upswing and downswing (contraction and expansion) in economic activity ✓✓
• A large amplitude during an upswing indicates strong underlying forces – which result in longer cycles ✓✓
• The larger the amplitude the more extreme the changes that may occur / extent of change ✓✓
• During the upswing inflation may increase from 5% to 10% (a 100% increase) ✓✓ (Max 4) (8)

4.5 Evaluate the impact of the depreciating rand on the South African economy.

A depreciating rand will positively affect the South African economy in the following ways:

• exports will become relatively cheaper thus leading to increased demand for South African goods✓✓
• Demand for South African exports such as base metals and mineral products will increase as they become relatively cheaper. ✓✓
• Foreign tourist arrivals will increase because it will be cheaper for them to spend money in South Africa. ✓✓
• Improvement in the trade balance as exports will be greater than imports. ✓✓

A depreciating rand will negatively affect the South African economy in the following ways:

• Imported production inputs such as crude oil and vehicle parts will become expensive, fuelling cost-push inflation. ✓✓
• Higher cost of imported production inputs will decrease domestic production and economic growth.✓✓ (Accept any other correct relevant response) (A maximum of 2 marks may be allocated for the mere listing of facts / examples) (8) [40]

TOTAL SECTION B:  80

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

QUESTION 5: MACROECONOMICS

• Discuss in detail the objectives of the public sector. (26 marks)
• How will public sector failure negatively influence economic stability in South Africa? (10 marks)

INTRODUCTION

• The government responds to market failure by establishing and maintaining state-owned enterprises to provide public goods and services ✓✓ (Accept any other correct relevant response) (Max 2)

BODY: MAIN PART

ECONOMIC GROWTH ✓

• An increase in the production of goods and services by the economy ✓✓
• It is measured in terms of an increase in the real gross domestic product ✓✓
• Real GDP is the value of goods produced in the country after the effects of inflation have been taken into account ✓✓
• For economic development to occur, the economic growth rate must be higher than the population growth rate ✓✓
• A high economic growth rate also means there will be fewer people who are dependent on the state to satisfy their basic needs ✓✓
• The state tries to ensure that there is continual growth in this capacity because it leads to an improvement in the standard of living ✓✓

FULL EMPLOYMENT ✓

• Attaining high levels of employment is one of the most important economic objectives for all governments ✓✓
• Full employment means that all persons who would like to work and who are looking for work, should be able to find work or create work for themselves ✓✓
• The unemployment rate increased over the past few years and above 30% after Covid-19 pandemic. ✓✓
• Informal sector activities must be promoted because it is an area where employment increases✓✓
• In the short-run, the state accelerates employment creation through direct employment schemes, targeted subsidies and expansionary macroeconomic packages ✓✓
• Over the medium term the state support labour-intensive activities in the agricultural and light manufacturing sectors ✓✓
• Over the longer run, as full employment is achieved, the state supports knowledge-intensive and capital-intensive sectors to remain competitive ✓✓

EXCHANGE RATE STABILITY / BALANCE OF PAYMENTS (BoP) EQUILIBRIUM ✓

• Depreciation and appreciation of a currency create uncertainty for producers and traders and should therefore be limited ✓✓
• Government uses its monetary and fiscal policies to ensure that the exchange rate remains relatively stable for as long as possible ✓✓
• BoP equilibrium influences the flow of goods, services and capital in a country ✓✓
• Exchange rate stability has a strong impact on the inflation rate and other macroeconomic variables ✓✓
• The choice and management of an exchange rate system forms a critical aspect of economic management to protect and encourage competitiveness, macroeconomic stability and growth ✓✓
• More money inflows into a country results in a surplus on the Balance of Payments account ✓✓
• The SARB changed the Exchange rate from a Managed floating to a Free- floating exchange rate. ✓✓
• Promoting domestic production will increase exports ✓✓

PRICE STABILITY ✓

• Market economies produce better results in terms of economic growth and employment when prices are relatively stable ✓✓
• In South Africa relative price stability means that the inflation rate remains within the inflation target of 3–6% ✓✓
• Interest Rates, based on the Repo Rate are the main instruments used to achieve price stability. ✓✓
• The benefit of the inflation target is a greater degree of transparency in monetary policy ✓✓
• If inflation exceeds the upper limit of the range, the Reserve Bank must consider increasing the interest rate to cool down the heated economy ✓✓

ECONOMIC EQUITY ✓

• A redistribution of income and wealth is essential in market economies ✓✓
• There are sections of society that earn a large amount of money while others earn very little ✓✓
• Progressive income tax and tax on profits, wealth and expenditure are used to finance free social services ✓✓
• Basic education, primary healthcare, basic economic services and cash grants to poor and other vulnerable people, will enhance economic equity ✓✓ (Accept any other correct relevant response) (Max 26)

ADDITIONAL PART

The public sector failure impacts negatively on economic stability by:

• causing price instability which depress consumer spending ✓✓
• causing policy uncertainty which may reduce investors' confidence ✓✓
• increasing unemployment as the economy fails to create new job opportunities ✓✓
• discouraging exporters due to exchange rate instability ✓✓
• reducing the volume of exports which may increase the balance of payments (BOP) deficit ✓✓
• exposing the economy to a recession due to lack of real GDP growth ✓✓
• increasing the fiscal burden due to wastage of resources especially by parastatals ✓✓
• decreasing production of goods and services as parastatals/state-owned enterprises fail to supply key input services. ✓✓ e.g. energy and transport ✓
• increasing the cost of doing business in the economy as a result of inefficiencies ✓✓ (Accept any other correct relevant higher order response) (Max 10)

CONCLUSION The state plays a significant role in achieving the macroeconomic objectives by guiding the economy through the national budget ✓✓ (Accept any other correct relevant higher order conclusion) (Max 2) [40]

QUESTION 6: ECONOMIC PURSUITS 40 MARKS – 40 MINUTES

• Discuss the various economic indicators in detail. (26 marks)
• How did the COVID-19 pandemic negatively influence the South African economy? (10 marks)

Governments use different statistical data to predict economic trends and formulate suitable developmental strategies toward influencing the direction that the economy should take / Economic indicators are used to establish the performance of an economy in terms of the basic economic objectives ✓✓ (Accept any other relevant response) (Max. 2)

PRODUCTION INDICATORS ✓

Nominal GDP (at current / market prices) ✓

• Nominal GDP cannot be used because the amount tends to be overestimated (inflation) ✓✓

Real GDP (at constant prices) ✓

• The growth performance of an economy is measured in terms of real GDP figures ✓✓
• Real GDP is obtained when the effect of inflation is removed from the data ✓✓
• When nominal growth is 8% and inflation is 3% then real growth is 5% ✓✓

Per capita real GDP ✓

• Per capita real GDP is calculated by dividing the real GDP figure by the total population ✓✓
• The purpose of per capita real GDP is to indicate economic development / indicate living standards / compare living standards between countries ✓✓

PRODUCTIVITY INDICATORS ✓

Labour productivity ✓

• Watched most closely, particularly in relation to real wage increases ✓✓
• In South Africa productivity increased less than labour remuneration ✓✓
• Labour productivity is measured by dividing the real GDP by the number of workers employed ✓✓

Remuneration per worker ✓

• If productivity increases are lower than the real wage increases, inflationary pressures will occur ✓✓
• The relationship between productivity and wages is crucial for employers survive in vigorous markets and workers to survive on their salaries. ✓✓ (Accept analysis of other kind of productivity)

FOREIGN TRADE INDICATORS ✓

The terms of trade ✓

• Changes in terms of trade serve as indicator of changes that may spill over into the balance of payments and may lead to a deficit ✓✓
• Terms of trade will deteriorate, if a greater volume of exports must be produced to keep export earnings constant ✓✓

The exchange rate ✓

• Changes in an exchange rate affect the prices for imports and prices of exports ✓✓
• A depreciation of the rand against the dollar will result in US goods and services becoming more expensive domestically and earnings from exports to the US increasing ✓✓

THE INFLATION RATE ✓

Inflation can be described as an increase in the general level of prices in an economy that is sustained over a period of time ✓✓ SARB aims to keep the inflation rate stable between 3 and 6% ✓✓

The following instruments measure inflation:

Consumer prices/CPI ✓

• This is the weighted average of the prices of a general basket of goods and services likely to be bought by consumers ✓✓

Production prices /PPI✓

• Measures prices of locally produced goods when they leave the factory and imported goods when they enter the country ✓✓ Serves as an indicator to predict consumer inflation (CPI) ✓✓

EMPLOYMENT ✓

The economically active population (EAP / labour force) ✓

• The official employment ages in South Africa are between 15 and 65 who are willing to work and it includes workers in the formal sector, informal sector, employers, self-employed persons and unemployed persons ✓✓

Employment rate ✓

• The number of employed persons expressed as percentage of the EAP gives the employment rate ✓✓
• The South African employment rate was 70,9% during 2019 and is not accompanied by a similar growth in employment numbers ✓✓

Unemployment rate ✓

• The unemployment rate is expressed as the percentage of unemployed persons out of the total number of people willing and able to work ✓✓
• In South Africa the official unemployment rate was 29,1 % in 2019 and is the most important cause of poverty ✓✓

MONEY SUPPLY ✓

• Money supply is of critical importance to give early warning of likely changes in inflation ✓✓
• South African Reserve Bank defines money in different categories: M1 - coins and notes; M2 - equal to M1 plus all short- and medium-term deposits; M3 - equal to M2 plus all long-term deposits of domestic private sector with monetary institutions ✓✓

INTEREST RATES ✓

Repo rate ✓

• Repo rate: the rate at which South African Reserve Bank lends money to commercial banks ✓✓
• Interest rate is based on the repo rate; when repo rate changes interest rate also change ✓✓ (Max 26)

The COVID-19 pandemic negatively influenced the South African economy by:

• shutting down industrial and business sectors, resulted in the reduction of production of non-essential goods and service ✓✓
• slowing down economic growth that increased unemployment / loss of income ✓✓
• restricting global trade, reduced the demand for South African products ✓✓
• contributing to more balance of payments problems as exports decreased ✓✓
• reducing mining and manufacturing productivity due to operational restrictions or scale-down. ✓✓
• restricting movement of people that reduced tourism activities domestically and internationally ✓✓
• reducing tax revenue for the government led to trade restrictions on non-essential products such as alcohol and tobacco. ✓✓
• decreasing real GDP growth with a possible recession in the economy as a result of the negative impact on production of goods and services. ✓✓ (Accept any other correct relevant response) (Max 10)

The use of economic indicators is important, because analysts use the data to interpret current or future investment possibilities ✓✓ (Max 2) [40]

TOTAL SECTION C: 40 GRAND TOTAL: 150

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Economics N4 Past Papers, Study Guides and Notes

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Download Grade 12 Economics Question Papers and Memos 2020 – 2019

Grade 12 Economics Question Papers and Memos from Dramatic Arts Grade 12 Past Papers and Memos: 2020, 2019, 2018, 2017, 2016 : Pdf Download February/ March, May/June, September, and November. The Papers are for all Provinces: Limpopo , Gauteng , Western Cape , Kwazulu Natal (KZN), North West , Mpumalanga , Free State , and Western Cape.

The following topics make up each of the TWO exam papers that you write for the Economics examination:

• Macro-economics:  Circular flow, Business cycles, Public sector, Foreign exchange markets, Protectionism and Free Trade
• Micro-economics:  Perfect markets, Imperfect markets, Market failure
• Economic pursuits:  Growth and Development, Industrial development policies, Economic and social performance indicators
• Economics issues:  Inflation, Tourism, Environmental sustainability

Download Grade 12 Economics Question Papers and Memos

List of economics grade 12 2020 past exam papers and memos september, 2020 november papers.

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2019 November Papers

NB: 2019 Economics Exam Papers and Memos are found here

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Grade 12 Economics Question Papers and Memos

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Requirements to pass Grade 12 | Matric

Hey,  Grade 12  Learner! Do you know what it takes to obtain your Grade 12 Certificate?  All matric students in South Africa are required to register to write at least 7 subjects and they may not fail more than one subject. Failing more than one subject means you have failed matric. Thus, in order to pass you need to meet the following requirements:

• Obtain at least 40% for your Home Language
• Pass two other subjects with 40%, an
• Get 30% for three other subjects

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Economics Grade 10

Economics grade 10 latest assignment and memos caps.

Economics Grade 10 Latest Assignment and Memos for CAPS Curriculum (Syllabus) South Africa: A National Curriculum and Assessment Policy Statement (CAPS) is a single, comprehensive, and concise policy document introduced by the Department of Basic Education for all the subjects listed in the National Curriculum Statement for Grades R – 12.  CAPS gives detailed guidance for teachers on what they should teach and how to assess.

On this page you will find Economics Grade 10 Assignment and Memos for Term 1, Term 2, Term 3, and Term 4.

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Name the Special Economic Zone which is in the Free State province

Name the Special Economic Zone which is in the Free State province:

Name the Special Economic Zone which is in the Free State province is Maluti-A-Phofung Special Economic Zone (MAPSEZ) , in Harrismith Free State.

• 1 What does Maluti-A-Phofung Special Economic Zone(MAPSEZ) Provide?
• 2 Questions and Answers

What does Maluti-A-Phofung Special Economic Zone(MAPSEZ) Provide?

The zone provides road and rail logistics and handling facilities for the Gauteng–Durban port corridor and links to the Bloemfontein–Cape Town corridor.

The launch of the 1038 hectare special economic zone (SEZ)is part of government’s SEZ programme aimed at accelerating socio-economic growth and development in the region and part of the government’s programme of radical socio-economic change.

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Distinguishing between Direct and Indirect Taxes: Provide an Example of Each

Distinguishing between Direct and Indirect Taxes : Provide an Example of Each: Let’s learn something about taxes. Taxes can be either direct or indirect. A direct tax is one that the taxpayer pays directly to the government. These taxes cannot be shifted to any other person or group. Indirect taxes are basically taxes that can be passed on to another entity or individual. They are usually imposed on a manufacturer or supplier who then passes on the tax to the consumer.

• 0.0.1 Watch a quick explanation on direct vs indirect taxes
• 1 Examples of Direct Tax
• 2 Examples of Indirect Taxes
• 3 List of payable taxes in South Africa

Watch a quick explanation on direct vs indirect taxes

Did you know: The most common example of an indirect tax is the excise tax on cigarettes and alcohol. Value-Added Taxes (VAT) are also an example of an indirect tax.

Examples of Direct Tax

• Corporation Tax,
• Property Tax, Inheritance Tax, and

Examples of Indirect Taxes

• Customs tax

List of payable taxes in South Africa

• Air Passenger Tax
• Capital Gains Tax
• Corporate Income Tax
• Diamond Export Levy
• Dividends Tax
• Donations Tax
• Estate Duty
• Excise Duties and Levies
• International Oil Pollution Compensation Fund Levy
• Mineral and Petroleum Resource Royalty
• Pay As You Earn
• Personal Income Tax
• Provisional Tax
• Securities Transfer Tax
• Skills Development Levy
• Transfer Duty
• Turnover Tax
• Unemployment Insurance Fund
• Value Added Tax
• Withholding Tax on Interest
• Withholding Tax on Royalties

https://apps.irs.gov/app/understandingTaxes/teacher/whys_thm04_les04.jsp

https://corporatefinanceinstitute.com/resources/knowledge/other/indirect-taxes/

https://economictimes.indiatimes.com/definition/direct-tax

Economics Grade 10 Essays pdf download

Economics Grade 10 Essays pdf download: Below are some essay or speech topics for grade 10 learners that they can use as a guide in South African context.

• The balance between demand and supply
• Consumer demand theory
• The theory of production: The process of changing materials into products
• The structure of a market and the system that comprises it
• The labor economics
• The information economics
• The economics of market structure in South Africa
• Opportunity costs
• 10 principles of economics
• The difference between long term and short term economic growth
• Recession in the economy of any country and its causes
• Pros and cons of the current money system in South Africa
• The place of small and family business in the economy
• Poverty in relations to the economics of the particular country
• The economic policy (of your choice) tool and its effectiveness
• The effect of immigration on the economy
• The impact of trade policies on the economics of South Africa
• The effects of interest rates on any individual or business
• The current employment rate in South Africa and its Impact
• Impact of Inflation in South African Economy
• The relationship between income and the happiness of a person
• The relationship between economics and housewives in South Africa
• The beer industry in South Africa
• Reasons why all students should learn their country’s economy

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Describe how Ubuntu fight social challenges

Physical Science Grade 12 Notes pdf for study revision

Diane tsa Setswana le ditlhaloso: downloadable pdf

Grade 8 ems Exam Questions and Answers

91 Unique English Speech Topics for Grade 11 | Class 11: Education Resource

Popular Sesotho Idioms: Maele a Sesotho le Ditlhaloso – English Translations

My Name Poem by Magoleng wa Selepe: Questions and Answers

Life Sciences Practical Tasks Grade 11 SBA for all Terms: Education Resource

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• Solar Eclipse 2024

The Eclipse Could Bring $1.5 Billion Into States on the Path of Totality

T he total solar eclipse passing through parts of the U.S. on April 8 stands to have a major economic impact on cities across the country as stargazers flock to the path of totality. 

Factors including the date of the eclipse and the number of states in the path of totality means that millions of people will have the opportunity to view the event— and that the cities hosting them could see a combined $1.5 billion injected into their states’ economies.

“That number will include lodging costs for visitors coming from out of state or far away parts of their own state, as well as gas costs and food costs,” says Bulent Temel, assistant professor of practice in economics at the University of Texas at San Antonio, San Antonio, who performed the calculations to arrive at the $1.5 billion figure.

One to four million people are expected to travel for the eclipse, according to Great American Eclipse , an informational site that tracks solar eclipses around the world. The Federal Aviation Administration (FAA) estimates the days leading up to the eclipse will be some of the busiest travel days of the season, with 50,670 flights on Thursday, April 4 and 48,904 flights on Friday, April 5. That means the spending will be spread out: “[The eclipse] is on a Monday, so you might have folks coming Friday, Saturday, Sunday, spending a few days somewhere ahead of the event,” says John Downen, Director of Impact Analysis at Camoin Associates.

Read More : How Cities Around the U.S. Are Celebrating the Eclipse

Many regions along the path of totality have spent months—if not years—preparing for the upcoming surge of visitors and money. Rochester, NY, is expecting 300,000 to 500,000 visitors across the nine - county Greater Rochester region. Local businesses have a slate of specials and planned events the weekend leading up to the event—including eclipse themed beers from local breweries and a three-day pass from the Rochester Museum and Science Center for visitors to attend a range of talks and performances. 

The area’s tourism board says that some hotels have reported demand skyrocketing an average of 1200% for the four-day span leading up to April 8— unusual demand for a Monday in the region’s off-peak season. 

It’s an economic boost that no amount of planning— or marketing—can replicate. “It’s a really great tourism opportunity,” says Shannon Ealy, Director of Communications and Marketing for the Greater Rochester Chamber of Commerce. “You can spend millions of dollars on media buys to get our regional brand out there, but you can't exactly buy the sun and the moon crossing over us.” 

Read More: See the 2024 Solar Eclipse’s Path of Totality

But unfortunate weather could still put a damper on things, especially for businesses that might be stocking up for an influx of visitors, since many eclipse chasers decide where to view the eclipse based on weather that can’t be predicted until the event draws closer. “Even a simple factor like a cloudy day could just compromise all these expectations quite a bit,” Temel says. 

The real task for local business and tourism boards lies in converting one-time visitors into ones that return—without the promise of a solar eclipse. “Every single one of those visitors is a potential future visitor to the same area as well,” says Temel. “In the long run, the economic impact would be magnified quite significantly. 

Adds Downen: “It definitely presents an opportunity, especially in smaller communities, to showcase themselves and hopefully capture some future repeat visitors.”  

Read More : Where to Find Solar Eclipse Glasses—And Spot Fake Ones

Lebanon, Indiana, for example, is expecting its population to triple during the weekend before the eclipse. Joe Lepage, the city’s communication and community development director, says he hopes that the eclipse will change the way both locals and out-of-towners talk about Lebanon. 

“We have a large business park, great hospitals, establishments where people can work, but actually staying and living in Lebanon has been difficult to sell.” he says. "It'll give people that are going back home a chance to visit and realize, ‘Hey, that little town is nice.’ But then our locals can see all the things they have in their backyard and realize, ‘Hey, my community is pretty special too.’”

More Must-Reads From TIME

• Jane Fonda Champions Climate Action for Every Generation
• Passengers Are Flying up to 30 Hours to See Four Minutes of the Eclipse
• Biden’s Campaign Is In Trouble. Will the Turnaround Plan Work?
• Essay: The Complicated Dread of Early Spring
• Why Walking Isn’t Enough When It Comes to Exercise
• The Financial Influencers Women Actually Want to Listen To
• The Best TV Shows to Watch on Peacock
• Want Weekly Recs on What to Watch, Read, and More? Sign Up for Worth Your Time

Write to Simmone Shah at [email protected]

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JPMorgan CEO Dimon hails US power in policy-focused letter to investors

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Nupur Anand is a U.S. banking correspondent at Reuters in New York. She focuses on JPMorgan Chase, Wells Fargo and regional banks. Anand covered banking and finance in India for more than a decade, chronicling the collapse of major lenders and turmoil at digital banks and cryptocurrencies. She has a degree in English literature from Delhi University and a postgraduate diploma in journalism from the Indian Institute of Journalism & New Media in Bangalore. Anand is also an award-winning fiction writer.

Blackstone to take Apartment Income REIT private in $10 bln deal

Asset manager Blackstone said on Monday it would take private rental housing firm Apartment Income REIT , known as AIR Communities, for $10 billion in cash, including debt.

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Jamie Dimon Issues an Economic Warning

The JPMorgan Chase chief executive used his annual letter to shareholders to flag that higher-for-longer inflation, uncertain growth prospects and widening political divisions.

By Andrew Ross Sorkin ,  Ravi Mattu ,  Bernhard Warner ,  Sarah Kessler ,  Michael J. de la Merced ,  Lauren Hirsch and Ephrat Livni

Jamie Dimon sees America at a ‘Pivotal Moment’

Jamie Dimon’s annual letter to JPMorgan Chase shareholders has just been published. The widely read note offers a glimpse of his views on not just business, but the economy at a “pivotal moment for America and the free world,” with deep divisions at home and global uncertainty.

Here are some highlights.

The economy is resilient but the government underpinning it is a red flag. Consumers are spending and investors expect a soft landing. But Dimon warns that the economy is being fueled by government spending and rising deficits. “The deficits today are even larger and occurring in boom times — not as the result of a recession — and they have been supported by quantitative easing, which was never done before the great financial crisis,” he writes.

Inflation may be sticky. “These markets seem to be pricing in at a 70% to 80% chance of a soft landing — modest growth along with declining inflation and interest rates,” Dimon writes, adding that the odds are actually a lot lower.

Global uncertainty is another dark cloud. The wars in Ukraine and the Middle East could further “disrupt energy and food markets, migration, and military and economic relationships.” That shock coincides with a surge in public investment to power a green transition, restructure supply chains and trade relationships, and boost health care spending.

Industrial policy is needed but should be limited and targeted. Dimon says the U.S. must be tough with China, but engage with Beijing. That includes establishing independence on supplies of materials crucial to national security, like rare earth, semiconductors and 5G infrastructure. (According to Dimon, the Inflation Reduction Act and the CHIPs Act get it right.)

Dimon warns about the deep political divisions at home. Dimon doesn’t explicitly weigh in on the election (his public backing for some of Donald Trump ’s economic policies caused a stir at Davos in January), but said the U.S. is grappling with “highly charged, emotional and political” issues centering around the border security crisis and the “fraying of the American dream.”

On Basel 3 endgame: Dimon reiterated his concerns that many of the proposed banking rules are “flawed and poorly calibrated.”

On corporate governance: Dimon argues that proxy advisory firms like ISS have become too influential (he recently backed Disney in its fight against Nelson Peltz). He is opposed to recent efforts to split chairman and C.E.O. roles and thinks the universal proxy “makes it easier to put poorly qualified directors on a board.”

HERE’S WHAT’S HAPPENING

Janet Yellen sees progress in China relations, but warns there’s “more work to do.” The Treasury secretary concluded meetings in Beijing on Monday saying that ties between the nations had stabilized, but it was unclear how the relationship would endure in an election year. Her comments came as the Biden administration agreed to give Taiwanese chipmaker TSMC $6.6 billion in grants to begin manufacturing in Arizona in 2028.

Brazil’s supreme court opens an investigation into Elon Musk. Alexandre de Moraes, the chief justice, opened the instruction of justice inquiry after Musk said he would reactivate some X accounts that the judge had ordered blocked. The accounts weren’t disclosed. Moraes has been investigating “digital militias” accused of spreading disinformation.

Gold hits a record high and an oil rally takes a breather. The safe-haven asset reached more than $2,300 a troy ounce on pivotal, buoyed by worries over a widening conflict in the Middle East and higher demand for the precious metal from central banks and Chinese consumers. The price of Brent crude fell on Monday to trade near $90 a barrel, down from a five-month high reached last week.

Is it show time for Warner Bros. Discovery?

Today marks the two-year anniversary of the Warner Bros. Discovery mega deal closing. Crossing that milestone means that the entertainment giant, which owns HBO, CNN and a lucrative piece of the March Madness broadcasts, can now strike a deal without facing a huge tax hit.

The industry is ripe for consolidation , given challenges in cable and streaming. An obstacle is President Biden’s antitrust cops. “Regulatory constraints are limiting what deals can get done, which is the case in most industries,” Rob Kindler, the global chair of the M.&A. Group at Paul, Weiss, told DealBook.

Warner Bros. Discovery hasn’t gone as hoped. Its stock is down 66 percent since the deal closed as its bet on streaming has languished (alongside rivals not named Netflix). The legacy cable business has been a bigger drag, hurt by cord-cutting.

Its $44 billion debt mountain could also make an acquisition more difficult. But John Malone, the media mogul and a board member, said in November that cash flow is improving, which could set the company up to scout for deals.

A merger with Paramount seems unlikely. Shares fell 5 percent when talks between the two leaked in December, a sign that investors may not look enthusiastically on the company increasing its exposure to linear media. It’s probably a moot point anyhow with Paramount in exclusive talks with Skydance .

Even still, would an alliance with Paramount’s TV networks, like, CNN and CBS through a spinoff or divestiture make sense, down the line?

Targeting Comcast could face challenges, too. Investors may like the potential to combine their cable, studio and streaming businesses. But regulators would likely have tough questions.

Still, don’t count out a deal. As Barry Diller told The Times last year : There seems to always be interest in the Warner media properties. “Whether that will happen depends on whether someone wants to take it,” said Diller, a longtime friend of the Warner Bros. Discovery chief, David Zaslav.

Rethinking the deals-are-bad trope

For decades, the common wisdom in corporate America — as encapsulated in the 2004 book “Mastering the Merger,” by two Bain & Company consultants — was that for all the billions spent on mergers, roughly 70 percent failed.

But a new white paper by one of the book’s authors and two other colleagues finds that the inverse is now true: 70 percent of takeovers succeed . DealBook got the first look at the research to learn what had changed.

Companies have gotten smarter about M.&A. In 2004, the defining deals of the era — including that of AOL-Time Warner — were meant to be transformative and deliver big savings. Today the goals are more modest, such as expanding into new geographies or adjacent businesses, or adding new talent.

Acquirers are also getting more practice. Having more-conservative aims for mergers means companies can do more of them, justifying having in-house teams of M.&A. specialists who can better identify promising acquisitions and make them work. One advancement: more sophisticated analysis of potential takeovers, compared with earlier deals that often relied on less exacting financial considerations like synergies.

“Frequent acquirers have the experience and capability to do the diligence that’s required,” Suzanne Kumar, a Bain vice president and one of the white paper’s authors, told DealBook, pointing to Thermo Fisher Scientific, Constellation Brands and tech giants.

Serial acquirers tend to have better returns. Between 2000 and 2010, companies that did at least one deal a year had 10-year total shareholder returns that were 57 percent higher than businesses that did no deals, Bain found. Between 2012 and 2022, that spread rose to 130 percent — a finding that surprised the researchers.

Unionization efforts come to Harvard Yard

With car companies on high alert over the United Auto Workers’ efforts to ramp up labor organizing, the union has racked up a series of wins far from the factory floor — on college campuses.

The most recent victory was at Harvard University. The school’s nontenure track employees — a group of roughly 6,000 that includes faculty, postdoctorate fellows and preceptors — overwhelmingly voted to unionize last week. That opens the door to negotiations for higher wages, improved job security and bolstering workplace protection.

The divide brings another source of tension to campus. Harvard has been embroiled in a fight over free speech and safety ever since Hamas attacked Israel on Oct. 7, spurring a debate that led to a wave of high-level resignations.

Harvard is far from alone. Staff at Wellesley College and New York University also voted to unionize this year, joining efforts by adjunct professors and postdocs at Boston University, Columbia, Rutgers and the University of Connecticut.

The U.A.W. is at the center of the push. The union has been branching into higher education for years. And its hard-knuckled tactics in securing new contracts from Detroit’s Big Three automakers last year has given it momentum.

After N.Y.U.’s successful unionization vote, Shawn Fain, the U.A.W.’s president, hailed the moment as a historic one for labor organizing efforts on America’s university campuses. “We’ve got their back,” he said .

The week ahead

Congress returns today from its two-week recess to find Ukraine, the TikTok bill and repairing the Baltimore bridge in the spotlight — and a possible House leadership challenge looming. Elsewhere, inflation, central banks and the new earnings season will also be in focus.

Here’s what to watch:

Tuesday: Google’s Cloud Next developers conference opens amid expectations that the tech giant will make a raft of announcements to do with artificial intelligence.

Wednesday: The March Consumer Price Index is set for release. Economists forecast that overall inflation rose by 3.5 percent on an annualized basis, a slight increase from February. Core C.P.I., which removes food and fuel, is expected to have cooled.

Minutes from the last Fed meeting are also due to be published.

Elsewhere, President Biden will hold talks at the White House with Prime Minister Fumio Kishida of Japan. On the agenda : trade, A.I. and China. Also looming over the summit is Nippon Steel’s $14 billion bid for U.S. Steel.

Thursday: It’s decision day on rates for the European Central Bank. Inflation has fallen relatively quickly across much of Europe, prompting the question: Will the E.C.B. cut interest rates before the Fed?

Friday: Wall Street giants begin reporting first-quarter results, including JPMorgan Chase, Wells Fargo, Citigroup and BlackRock.

THE SPEED READ

The luxury group Puig, owner of the brands Paco Rabanne and Charlotte Tilbury, plans to list in Spain and aims to raise more than 2.5 billion euros ($2.7 billion) in what would be the sector’s biggest I.P.O. in years. (FT)

Could investors’ relative apathy for European stocks push the continent’s biggest oil companies to consider bigger listings in the U.S. ? (Bloomberg Opinion)

Josh Shapiro, the Democratic governor of Pennsylvania, has warned that the Biden administration’s decision to pause liquefied natural gas projects could hurt the party’s chances in November. (FT)

“ Maryland Passes 2 Major Privacy Bills , Despite Tech Industry Pushback” (NYT)

Best of the rest

Solar eclipse mania has gripped North America, and there’s good news : The weather should cooperate for a decent viewing across big parts of the U.S. (NYT)

South Carolina has topped Caitlin Clark and Iowa to win the women’s national basketball championship. Up tonight: UConn takes on Purdue — and there’s a Bill Murray connection . (The Athletic, WSJ)

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Andrew Ross Sorkin is a columnist and the founder and editor at large of DealBook. He is a co-anchor of CNBC’s "Squawk Box" and the author of “Too Big to Fail.” He is also a co-creator of the Showtime drama series "Billions." More about Andrew Ross Sorkin

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Michael de la Merced joined The Times as a reporter in 2006, covering Wall Street and finance. Among his main coverage areas are mergers and acquisitions, bankruptcies and the private equity industry. More about Michael J. de la Merced

Lauren Hirsch joined The Times from CNBC in 2020, covering deals and the biggest stories on Wall Street. More about Lauren Hirsch

Ephrat Livni reports from Washington on the intersection of business and policy for DealBook. Previously, she was a senior reporter at Quartz, covering law and politics, and has practiced law in the public and private sectors.   More about Ephrat Livni