INSTRUCTIONS AND INFORMATION 

1. Answer FOUR questions as follows in the ANSWER BOOK:
   SECTION A: COMPULSORY
   SECTION B: Answer any TWO of the three questions
   SECTION C: Answer ONE of the two questions 
2. Answer only the required number of questions. Answers in excess of the  required number will NOT be marked. 
3. Number the answers correctly according to the numbering system used  in this question paper. 
4. Write the question number above each answer. 
5. Read the questions carefully. 
6. Start EACH question on a NEW page. 
7. Leave 2–3 lines between subsections of questions. 
8. Answer the questions in full sentences and ensure that the format, content  and context of your responses comply with the cognitive requirements of  the questions. 
9. Use only black or blue ink. 
10. You may use a non-programmable pocket calculator. 
11. Write neatly and legibly.

QUESTIONS

SECTION A (COMPULSORY) 30 MARKS – 20 MINUTES
QUESTION 1 
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 (1.1.1–1.1.8) in the ANSWER BOOK, for example  1.1.9 D. 
1.1.1 Short term savings and loans are part of the … market. 

1. factor 
2. foreign exchange 
3. money 
4. capital  

1.1.2 The … curve illustrates a trade-off between employment and  inflation. 

1. Laffer 
2. Lorenz
3. Production possibility
4. Phillips  

1.1.3 The balance on the Financial Accounts in the Balance of  Payment (BOP) excludes …  

1. reserve assets.
2. net financial derivatives.
3. net portfolio investments.
4. net other investments. 

1.1.4 The consumption expenditure of households and income of  producers is regarded as … flow. 

1. money 
2. real 
3. circular 
4. capital  

1.1.5 The consultations of the South African Reserve Bank (SARB) to  convince banks to act in a manner that is desirable, is known  as … 

1. interest rates.
2. moral suasion.
3. cash reserve requirement.
4. open market transaction.

1.1.6 A development policy that works with the Sectoral Education  Training Authority (SETA) is …  

1. Export Processing Zones.
2. Joint Initiative on Priority Skills Acquisition. 
3. Reconstruction and Development Programme. 
4. Expanded Public Works Programme. 

1.1.7 The Department of Trade and Industry implemented … to assist  industries to grow by identifying certain cross cutting issues and  competitive input sectors.  

1. Spatial Development Initiative
2. Special Economic Zones
3. Strategic integrated Projects
4. Integrated Manufacturing Strategy 

1.1.8 Depreciation of capital as a method used to encourage investment  is known as capital ... 

1. widening.
2. deepening. 
3. formation.
4. growth. (8 x 2) (16)

1.2 Choose a description from COLUMN B that matches an item in  COLUMN A. Write only the correct letter (A−I) next to the question number  (1.2.1−1.2.8) in the ANSWER BOOK, for example 1.2.9 K. 

(8 x 1) (8) 
1.3 Give ONE term/word for each of the following descriptions. Write only the  term/word next to the question number (1.3.1–1.3.6). 
Abbreviation, acronyms and examples will NOT be accepted. 
1.3.1 A view that explains that disequilibrium in markets are caused by the  incorrect use of policies 
1.3.2 The main source of government revenue 
1.3.3 Money received without any productive service rendered 
1.3.4 Increase in population numbers of cities and towns  
1.3.5 The rate at which SARB lends money to banks for short periods 
1.3.6 The return of land to those that have lost it due to discriminatory  laws in the past. (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 40 MARKS – 30 MINUTES
2.1 Answer the following questions. 
2.1.1 Name any TWO member countries of BRICS. (2 x 1) (2) 
2.1.2 Why is the GDP at market prices normally higher than the GDP at  factor cost? (1 x 2) (2) 
2.2 Study the information below and answer the questions that follow.

2.2.1 Give an example of a leakage. (1)
2.2.2 What factor influences the size of the multiplier? (1)
2.2.3 Briefly describe the term multiplier. (2) 
2.2.4 Explain the effect on national income when injections are more  than leakages. (2) 
2.2.5 Suppose the South African government spends R250 m on the  economy. Calculate the multiplier effect if mpc = 0,7. Show all  calculations. (4)
2.3 Study the following information and answer the questions that follow. 

AfCTA is a planned free trade area among 49 of 55 African states. It will be the largest in the world in terms of participating countries.  [Source: TESFANEWS, 9 February 2019]

2.3.1 Except AfCTA, name any other free trade area in the world. (1) 
2.3.2 Which trade protocol is behind the establishment of a single  market in Africa? (1) 
2.3.3 Briefly describe the term free trade area. (2) 
2.3.4 Briefly explain the role of the World Trade Organisation as part of  globalisation. (2) 
2.3.5 How can Africa benefit from being a single market? (2 x 2) (4)
2.4 Discuss the length and amplitude of a business cycle. (4 x 2) (8) 
2.5 Evaluate the effects of a currency depreciation in an economy. (8) [40]

QUESTION 3: ECONOMIC PURSUITS 40 MARKS – 30 MINUTES
3.1 Answer the following questions. 
3.1.1 Name TWO demand side approach policies to growth and  development. (2 x 1) (2) 
3.1.2 How can interest rates be used by South African Reserve Bank to  stimulate production of goods and services? (1 x 2) (2) 
3.2 Study the cartoon below and answer questions that follow. 

3.2.1 Name ONE example of a country in the North. (1) 
3.2.2 Provide a characteristic of the group of countries represented by  ‘South’. (1) 
3.2.3 Briefly describe the term globalisation. (2)
3.2.4 Briefly explain trade as a challenge of globalisation. (2) 
3.2.5 How do countries in the North contribute to the destruction of the  environment? (4)
3.3 Study the table below and answer the questions that follow. 

CONTRIBUTIONS TO GROWTH IN REAL GDP (%) 

[Source: SARB: Quarterly Bulletin, December 2018]

3.3.1 Name ONE category of the secondary sector. (1)
3.3.2 What was the trend in the primary sector between 2017 and 2018? (1)
3.3.3 Briefly describe the term Gross Domestic Product. (2)
3.3.4 Explain the use of per capita GDP figures. (2)
3.3.5 How does real growth of 0,8% negatively affect the economy? (4) 
3.4 Briefly discuss the cost of doing business as a supply-side approach in  promoting growth and development in South Africa. (4 x 2) (8) 
3.5 How do international organisations such as the World Bank and United  Nations standardise the indicators of member countries? (8) [40]

QUESTION 4: MACRO ECONOMICS AND ECONOMIC PURSUITS  40 MARKS – 30 MINUTES  
4.1 Answer the following questions. 
4.1.1 Name TWO types of business cycles. (2 x 1) (2)
4.1.2 How can SMMEs contribute to economic growth? (1 x 2) (2)
4.2 Study the graph below and answer the questions that follow. 

4.2.1 Identify the demand curve that indicates a decrease in the demand  for dollars. (1) 
4.2.2 What type of exchange rate system is currently used in South  Africa? (1) 
4.2.3 Briefly describe the term devaluation. (2)
4.2.4 Explain ONE factor that can influence the demand for the dollar. (2) 
4.2.5 What is the effect on the rand when there is a decrease in the  demand for dollars? (4) 
4.3 Read the information below and answer the questions that follow. 

The NDP has progressed despite a critique report stating that South Africa has the most challenges of unequal   societies and being trapped in poverty   in the world. Many people were still   experiencing low economic   development.  [Source: fin24, 14 April 2018]

4.3.1 In which year is the NDP aiming to eliminate poverty? (1) 
4.3.2 Name ONE way how the government can reduce poverty among the vulnerable groups in South Africa. (1) 
4.3.3 Briefly describe the term economic development. (2)
4.3.4 What negative effect can the NDP have on taxpayers? (2) 
4.3.5 How will the South African economy benefit from the  implementation of the NDP? (2 x 2) (4)
4.4 Briefly discuss the demographic social indicators. (4 x 2) (8) 
4.5 How will an increase in export prices and import prices affect the South  African economy? (8) [40] 
TOTAL SECTION B: 80

SECTION C 
Answer any ONE question of the TWO questions in the ANSWER BOOK. Your answer will be assessed as follows: 

QUESTION 5: MACROECONOMICS 40 MARKS – 40 MINUTES 
Discuss in detail how the following factors contribute to poor public-sector  provisioning: 

• Lack of accountability (10)
• Inefficiency (8)
• Difficulty in assessing needs (8) (26) 

Suggest solutions on how efficiency of state-owned enterprises can be  improved. (10) [40]

QUESTION 6: ECONOMIC PURSUITS 40 MARKS – 40 MINUTES 
Discuss in detail the appropriateness of South Africa’s regional development  policies in terms of international benchmark criteria. (26) 
How successful has the South African government been in meeting the aims of  regional development? (10) [40] 

TOTAL SECTION C: 40 
GRAND TOTAL: 150