CAPS
s c i m o n o Ec
m a e x c E r a c t i o k P
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Grade 10 ECONOMICS PRACTICE TEST ONE Marks: 60
QUESTION 1
Choose the correct term in brackets. Write only the term next to the question number (1.1–1.4) in your answer book. 1.1
1.2
1.3
1.4
(Micro-economics/Macro-eco (Micro-economics/Macro-economics) nomics) examines economy-wide phenomena such as unemployment, national income, economic growth and inflation.
(2)
The theory of price determination is an example of a topic study in (microeconomics/macro-economics).
(2)
To say, “income tax in South Africa is an unfair system of taxation”, taxation”, is an example of a (normative/positive) (normative/positive) statement.
(2)
To say, “interest rates in South Africa are below 10%”, is an example of a (normative/positive) (normative/positive) statement.
(2) [8]
QUESTION 2 List the THREE basic THREE basic economic questions.
[6]
QUESTION 3 Draw and label a circular flow diagram to show how firms, households and the government interact in an open economy.
[18]
QUESTION 4 Study the diagram below and then answer the questions that follow.
4.1
Identify the missing missing parts (labelled A–D) in the diagram above.
(8)
4.2
Explain whether the above diagram represents an open or closed economy.
(4)
4.3
Use the figures in the table below to calculate the value of aggregate spending in the economy. Areas of spending
Symbols
Aggregate spending
Consumption spending
C
R140 million
Investment spending
I
R20 million
Government spending
G
R90 million
Imports
M
R40 million
Exports
X
R10 million (8) [20]
QUESTION 5 Choose the correct term in brackets. Write only the term next to the question number (5.1–5.4) in your answer book. 5.1
5.2
5.3
5.4
During a recession in the business cycle, there is an increase in the rate of (unemployment/economic (unemployment/economic growth).
(2)
During a boom in the business cycle, there is (a depreciation/an appreciation) of the local currency.
(2)
Technological advances which improve productivity levels will generally lead to an economic (recession/boom). (recession/boom).
(2)
During an economic (boom/recession), (boom/recession), there is an increase in the real value of goods and service produced.
(2) [8]
[TOTAL: 60 marks]
Grade 10 ECONOMICS PRACTICE TEST TWO Marks: 70
QUESTION 1 Various possible answers are provided for each of the following questions. Write the letter only of the correct answer next to the relevant question number.
1.1
Which of the following factors would lead to an increase in the demand for DVDs? A
1.2
B
An increase in the supply of DVDs.
C
A decrease in the price of DVD players.
D
A decrease in the supply of DVDs.
When the supply of of a product increases increases the demand demand will increase. increase.
B
When the the price price of a product increases the quantity demanded will decrease.
C
When the price of a product increases increases the quantity quantity demanded will will increase. increase.
D
If consumer incomes increase there will be an increase in demand for a product.
(2)
Suppose there is a very effective advertising campaign campaign for a particular good. The effect of this, ceteris paribus, will be: A
1.4
(2)
Which of these statements statements best describes the law of demand? A
1.3
A decrease in the the price of DVDs. DVDs.
a shift along the the demand curve up and to the left. left.
B
a shift shift along the the demand demand curve down and to to the the right.
C
a shift in the the position position of the demand curve curve up and to the right.
D
a shift in the position of the demand curve down and to the left.
(2)
A … shows what can be produced when using the factors of production in the most efficient way possible. p ossible. A
balance of payments payments account
B
market equilibrium curve
C
production possibility curve
D
graph depicting the intersecti
of
demand
and
supply
(2)
1.5
1.6
1.7
1.8
Suppose there is an increase in the demand for a good. This, will ceteris paribus, lead to… A
a decrease in the equilibrium price price and quantity of the good. good.
B
an increase increase in the equilibrium price and quantity quantity of the good.
C
an increase increase in the equilibrium price and and a decrease in the the equilibrium equilibrium quantity of the good.
D
a decrease in the equilibrium price and an increase increase in the equilibrium equilibrium quantity of the good.
(2)
Suppose there is an increase in the supply of a good. This, will ceteris paribus, lead to… A
a decrease in the the equilibrium price price and quantity of the good. good.
B
an increase increase in the equilibrium price and quantity quantity of the good.
C
an increase increase in the equilibrium price and and a decrease in the the equilibrium equilibrium quantity quantity of of the good.
D
a decrease in the equilibrium price and an increase increase in the equilibrium equilibrium quantity of the good.
(2)
Suppose that the demand and supply of a product increase simultaneously. simultaneously. This, will ceteris paribus, lead to… A
an increase in the the market price. price.
B
a decrease in the market price.
C
an increase in the equilibrium quantity.
D
a decrease in the equilibrium quantity.
(2)
Suppose that unfavourable weather conditions affect the supply of apples in South Africa. The effect effect of this, this, ceteris paribus, will be: A
a shift along the the supply curve curve up and to to the right.
B
a shift shift along the the supply curve down and to the left. left.
C
a shift in the the position position of the demand demand curve curve down and to the right. right.
D
a shift in the position of the demand curve up and to the left.
(2)
1.9
Which of the following statements best describes the law of supply? A
When the demand demand for a product increases increases the the supply decreases. decreases.
B
When the demand for a product decreases the supply decreases.
C
When the the price price of a product increases the quantity supplied increases.
D
When costs of production increase the supply of a product will decrease.
(2) [18]
QUESTION 2 List any THREE functions of a market.
[6]
QUESTION 3 Study the figures below: Quantity
15
Fixed Cost
250
Variable cost
500
Using the above f igures, calculate:
3.1
Total costs
(2)
3.2
Average Costs
(4)
3.3
Average Variable costs
(4)
3.4
If the total cost for 25 units is R350 and the total cost for 30 units is R550, calculate the Marginal cost.
(6) [16]
QUESTION 4 List THREE characteristics market. THREE characteristics of an imperfect market.
[6]
QUESTION 5 Choose the correct term in brackets. Write only the term next to the question number (5.1–5.4) in your answer book. 5.1
Value-added tax (VAT) is an example of (a direct/an indirect) tax.
(2)
5.2
(Subsidies/direct taxes) are provided to both consumers and producers.
(2)
5.3
(Subsidies/welfare (Subsidies/welfare grants) enable firms to supply a greater quantity of a good or service, thus lowering the market price.
(2)
If the state imposes a price ceiling (maximum price), it ensures that the price of the good remains (below/above) a certain level.
(2)
5.4
[8]
QUESTION 6 Use a diagram to analyse a nalyse the effect of an indirect tax on a good or service.
[TOTAL: 70 marks]
[16]
Grade 10 ECONOMICS PRACTICE TEST THREE Marks: 50
QUESTION 1 Various possible answers are provided for each of the following questions. Write the letter only of the correct answer next to the relevant question number.
1.1
In the economic history of South Africa, the … of economic development was characterised by subsistence farming and bartering. A
1.2
B
agricultural phase
C
agricultural mining phase
D
industrial development phase.
1.4
(2)
During the … of economic development in South Africa, the VOC bought slaves from India, East Indies and Madagascar to work on their commercial farms and to work as gardeners, builders and carpenters. A
1.3
pre-colonial era
pre-colonial era
B
agricultural phase
C
agricultural mining phase
D
industrial development phase.
(2)
The first bank notes were issued in South Africa… A
in the early 1700s. 1700s.
B
in the late 1700s.
C
before 1700.
D
after 1800.
(2)
The first bank to be established in South Africa was… A
a private bank which which only took took deposits.
B
a government-controlled government-controlled bank which only took deposits.
C
a private private bank which lent people money to purchase land.
D
ontrolled bank which lent people
purchase land.
(2)
1.5
The … is defined as that proportion of the population, which is between 16 and 65 years of age and has the potential to be employed e mployed.. A
labour force participation participation rate
B
economically-active economically-active population
C
rate of unemployment unemployment
D
labour absorption rate.
(2) [10]
QUESTION 2 Choose an appropriate description from COLUMN B to match the concept in COLUMN A. Write only the letters (A–H) to indicate your choice next to each question number (2.1–2.8) in your answer book.
COLUMN A
COLUMN B
2.1
Characteristic of the traditional stage of economic development in Europe
A
The establishment of towns and the emergence of travelling travelling merchants
2.2
Characteristic of the transitional stage of economic development in Europe
B
Industrial Revolution
2.3
Characteristic of the take-off stage of economic development in Europe
C
A severe lack of economic freedom and no specialisation specialisation of labour
2.4
Characteristic of the stage of economic maturity in Europe
D
Formation of labour unions
2.5
Characteristic of the period of mass production in the economic development of Europe
E
Approximately from 1200 to 1700
2.6
The duration of the transitional period of economic development development in Europe
F
Mercantilism
2.7
The duration of the take-off period of economic development in Europe
G
Approximately from 1700 to 1900
2.8
The duration of the period of economic maturity in Europe
H
Approximately from 1000 to 1200
[16]
QUESTION 3 List the THREE most important characteristics characteristics of the pre-colonial era of economic development in South Africa.
[6]
QUESTION 4 List ONE item ONE item which was commonly used to barter with in Africa, prior to the introduction of notes and coins.
[2]
QUESTION 5 Choose the correct term in brackets. Write only the term next to the question number (5.1–5.4) in your answer book. 5.1
Population growth leads to (an increase/a decrease) in the supply of labour.
(2)
5.2
The difference between the birth rate and death rate is called the (infant mortality rate/natural growth rate).
(2)
Population growth leads to (an increase/a decrease) in the demand for consumer goods.
(2)
Urbanisation is the process whereby the population of urban areas (decreases/increases) (decreases/increases) as the result of migration.
(2)
5.3
5.4
[8]
QUESTION 6 Choose the correct term in brackets. Write only the term next to the question number (6.1–6.4) in your answer book. 6.1
Since 1970, the unemployment unemployment rate in South Africa has steadily (increased/decreased). (increased/decreased).
(2)
6.2
The unemployment rate is the percentage of the (total/economically-activ (total/economically-active) e) population that is actively looking for work, but is unable to find employment.
(2)
6.3
Population growth leads to (an increase/a decrease) in the supply of labour.
(2)
6.4
Population growth leads to (an increase/a decrease) in the aggregate demand for consumer goods.
(2) [8]
[TOTAL: 50 marks]
Grade 10 ECONOMICS PRACTICE TEST FOUR Marks: 60
QUESTION 1 Various possible answers are provided for each of the following questions. Write the letter only of the correct answer next to the relevant question number.
1.1
1.2
When people are temporarily unemployed because they are moving between jobs, they form part of … unemployment figures. A
seasonal
B
frictional
C
structural
D
cyclical.
If the demand for labour increases, there will be… A
1.3
(2)
an increase in the the wage rate, but but a decline in in the level of of employment.
B
an increase increase in in both both the wage rate rate and and the the level level of employment.
C
a decrease in the wage rate rate and an increase increase in the level level of employment. employment.
D
a decrease in both the wage rate and the level of employment.
(2)
Suppose both the demand for and supply of labour were to increase. This, would ceteris paribus, most certainly lead to… A
an increase in the the wage rate.
B
an increase in the level of employment.
C
a decrease in the wage rate.
D
a decrease in the level of employment.
(2) [6]
QUESTION 2 Choose an appropriate description from COLUMN B to match the concept in COLUMN A. Write only the letters (A–H) to indicate your choice next to each question number (2.1–2.8) in your answer book.
COLUMN A
COLUMN B
2.1
Labour unions
A
A group set up up within an organisation organisation to settle disputes between employers and employees
2.2
Workplace forums
B
Assists with with disputes, which could not be resolved within an organisation
C
A group of workers workers from a specific specific sector, sector, who organise themselves to promote their social, economic and political po litical goals
D
Legislation, which seeks to protect the rights of individuals in the workplace and promote collective bargaining
2.3
Bargaining councils
2.4
Commission Commission for Conciliation, Conciliation, Mediation and Arbitration (CCMA)
2.5
Labour courts
E
A body responsible responsible for regulating regulating labour practices and ensuring compliance with the Labour Relations Act
2.6
Basic Conditions of Employment Act
F
Legislation which seeks to promote the employees’ physical well-being
2.7
Labour Relations Act
G
Sets out minimum terms and conditions for employment
2.8
Occupational Health and Safety Act
H
A collection collection of employees within a business who meet to discuss d iscuss labour issues at work [16]
QUESTION 3 Critically discuss the factors which contribute to high unemployment figures in South Africa.
[16]
QUESTION 4 List any THREE examples of legislation in South Africa, which seek to promote labour relations and workers’ rights.
[6]
QUESTION 5 Explain the difference between the Labour Relations Act and the Basic Conditions of Employment Act.
[TOTAL: 60 marks]
[16]
Grade 10
ECONOMICS ECONOMICS PRACTICE TEST ONE MEMORANDUM
QUESTION 1
1.1
macro-economics
(2)
1.2
micro-economics
1.3
normative
(2)
1.4
positive
(2)
(2)
[8]
QUESTION 2 2
What , how , and for whom
to
produce?
[6]
QUESTION 3 3
[18]
QUESTION 4 4.1
A: Business enterprises B: Households C: Households receive income (wages, salaries, rent and interest) D: Taxes
(8)
4.2
The diagram shows a closed economy , because there is no foreign sector .
4.3
Y=C+I+G+X–M
(4)
Y = R140 million + R20 million + R90 million + R10 million – R40 million Y = R220 million
(8) [20]
QUESTION 5 5.1
unemployment
(2)
5.2
an appreciation
(2)
5.3
boom
(2)
5.4
boom
(2) [8]
[TOTAL: 60 marks]
Grade 10
ECONOMICS ECONOMICS PRACTICE TEST TWO MEMORANDUM
QUESTION 1 1.1
C
(2)
1.2
B
(2)
1.3
C
(2)
1.4
C
(2)
1.5
B
(2)
1.6
D
(2)
1.7
C
(2)
1.8
D
(2)
1.9
C
(2) [18]
QUESTION 2 2
Brings buyers and sellers together . Allocates resources resources . Allows prices prices and quantities to be negotiated negotiated .
[6]
QUESTION 3 3
Worked answer
3.1
Total Cost = Fixed Cost + Variable Cost Total Cost = 250 + 500 Total Cost = 750
3.2
Average Costs = Total Costs / Quantity Average Costs = 750 / 15 Average Costs = 50
3.3
Average Variable Costs = Variable Costs / Quantity Average Variable Costs Costs = 500 / 15 Average Variable Costs Costs = 33.3 33.3
3.4
Marginal Costs = change in Total costs / change in Quantity Marginal Costs = (550 – 350) / (30 – 25) Marginal Costs = 200 / 5 Marginal Costs = 40 [16]
QUESTION 4 4
Any THREE of the following: •
A single supplier ()
•
Products are not homogenous (similar / identical) identical) ()
•
The seller is is protected protected from competition competition – no free competition competition ()
•
Companies are given the the rights to to be the only only operators operators in a country ()
[6]
QUESTION 5
5.1
indirect
(2)
5.2
subsidies
(2)
5.3
subsidies
(2)
5.4
below
(2) [8]
QUESTION 6 6
Mark allocation for diagram
The above diagram shows how imposing an indirect tax shifts the supply curve up and to the left (in effect decreasing the supply of the good ). This leads to a decrease in the quantity of the good being produced p roduced and an increase in the market price . [16]
[TOTAL: 70 marks]
Grade 10
ECONOMICS ECONOMICS PRACTICE TEST THREE MEMORANDUM
QUESTION 1 1.1
D
(2)
1.2
B
(2)
1.3
B
(2)
1.4
D
(2)
1.5
B
(2) [10]
QUESTION 2 2.1
C
(2)
2.2
A
(2)
2.3
F
(2)
2.4
B
(2)
2.5
D
(2)
2.6
H
(2)
2.7
E
(2)
2.8
G
(2) [16]
QUESTION 3 3
Any THREE of THREE of the following: •
•
•
•
The country was was inhabited inhabited by the Khoi-San and and African African tribes (). Subsistence farming was the norm although some some barter took place (using skins, skins, livestock, livestock, food, pottery, po ttery, tobacco and metal objects) ( ). Ivory and gold were traded (sometimes (sometimes with with individuals from other countries) countries) (). In 1652, a Dutch Dutch shipping company company (the VOC), VOC), established established a halfway port and refreshment station in the Cape (). ).
[6]
QUESTION 4 4
Any ONE of ONE of the following: fo llowing: •
cattle ()
•
sheep ()
•
goats ()
•
indigenous grain ()
[2]
QUESTION 5 5.1
increase
(2)
5.2
natural growth rate
(2)
5.3
an increase
(2)
5.4
increases
(2) [8]
QUESTION 6 6.1
increased
6.2
economically-active
6.3
an increase
(2)
6.4
an increase
(2)
(2)
(2)
[8]
[TOTAL: 50 marks]
Grade 10
ECONOMICS ECONOMICS PRACTICE TEST FOUR MEMORANDUM
QUESTION 1 1.1
B
(2)
1.2
B
(2)
1.3
B
(2) [8]
QUESTION 2 2.1
C
(2)
2.2
H
(2)
2.3
A
(2)
2.4
B
(2)
2.5
E
(2)
2.6
G
(2)
2.7
D
(2)
2.8
F
(2) [16]
QUESTION 3 3
In South Africa, the following factors contribute to unemployment: •
•
•
Declining demand demand for consumer consumer goods, goods, which leads leads to a decreased decreased demand for labour Increased mechanisation mechanisation and and a shift shift to capital-intensive capital-intensive production techniques techniques , which leads to a decrease in the demand for labour Trade unions unions which which drive up wage wage rates rates , and decreases the demand for labour
•
An oversupply of skilled labour
•
Rapid population growth
•
A lack of investment , which results in a lack of new business opportunities and employment opportunities
[16]
QUESTION 4 4
Labour Relations Act Basic Conditions of Employment Act Occupational Health and Safety Act
[6]
QUESTION 5 5
The Labour Relations Act sets out to protect the rights of individual workers by providing a mechanism for collective bargaining bargaining and the resolution of disputes . This Act seeks to promote p romote consultation in the workplace . This is different from the Basic Conditions of Employment Act, which also seeks to promote individual worker’s rights , but does so by stipulating stipulating certain standards and limits to protect workers, for example, from working long hours or being pa id unfairly . Both Acts prevent exploitation, but in different ways .
[TOTAL: 60 marks]
[16]
Maskew Miller Longman (Pty) Ltd Forest Drive, Pinelands, Cape Town Offices in Johannesburg, Durban, King William’ William’s s Town, Polokwane, Bloemfontein, representatives in Mafikeng and companies throughout southern and central Africa. website: www www.mml.co.za .mml.co.za © Maskew Miller Longman (Pty) Ltd 2011 All rights reserved. No No part of this publication may be reproduced, reproduced, stored in a retrieval retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the copyright holder. Every effort has been made to trace the copyright holders of material produced in this title. We would like to apologise for any infringement of copyright so caused, and copyright holders are requested to contact the publishers in order to rectify the matter. matter. First published in 2011 ISBN 978-0-636-12975-7
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