Economic Environment NCV Level 2 — Document
November 2018 — NCV Level 2 — Economic Environment
NCV Level 2
2018
NCV Business
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Q1— Section header —
1.1Various options are given 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
1.1.10\in the ANSWER BOOK.
1.1.1Technology Urbanisation Transport system Globalisation
1.1.2Formulating and implementing monetary policy is the responsibility of ABSA SARB
1.1.3One of the following is NOT an objective of the fiscal policy Job creation Poverty alleviation Building more
1.1.4is used by government to increase the level of spending in the economy by decreasing income tax. Expenditure policy Contractionary fiscal policy Debt management policy
1.1.5One of the following is an example of a support structure of business CHAMSA PSA
1.1.6eak lide
1.1.7If the cash inflow of the country is more than the cash outflow, rand will not be used as trading currency. rand will appreciate. rand will depreciate. profits will occur.
1.1.8non durable goods capital goods
1.1.9One of the following is NOT done by South African government to encourage exportation Export credit insurance Customs and excise duty refunds
1.1.10s involvement in international capital flow. current financial
1.2Choose a description from COLUMN B that matches a/an word/item in COLUMN A. Write only the letter (A \next to the question number (1.2.1
1.2.10\the ANSWER BOOK. COLUMN A COLUMN B
1.2.1
1.2.6
1.210 epression Absolute advantage Trough Prime rate Demand deposit Import duty
Q2— Section header —
2.1Decrease in interest rate contributes to the increase in inflation.
2.2A current account deficit occurs when imports are more than exports.
2.3The upsurge in wheat price will result in inflation.
2.4The trade cycle is divided into seven phases only
2.5Gold is used as a medium of exchange in South Africa. (3011022\ NC850 (E\ (N20\ Copyright reserved
2.6An i ncrease in the rate of taxation will res ult in less disposable income.
2.7The exchange rate has an influence on the prices of imports.
2.8The uro is used as a currency for buying goods and services in Japan.
2.9When the South African Reserve Bank increases the interest rates it m eans consumers have to pay less for their debt.
2.10
Q3— Section header —
3.1What is South Africa s current inflation rate, according to this report? (1\
3.2Name TWO consumer items that are responsible for the increase in inflat ion. (2\
3.3Differentiate between consumer goods and capital goods (4\
3.4Define inflation (2\
3.5According to the report, explain the reason why CPI remained within the target range for the past two months. (3\
3.6What is the di fference between demand pull inflation and cost push inflation
3.7Briefly explain the effect of an increase in interest rates on individuals and businesses. (3\ (3011022\
3.8Assume in July 2017, the rand has weakened by 1% from R12,50 to R13,5 State whether the rand has appreciated or depreciated. (1\
3.9Explain TWO effects of a depreciation of domestic currency on the economy (4\
3.10Tabulate THREE differences between exports and imports. (6\ [30]30
Q4— Section header —
4.1Stu dy the table below and answer the questions PRICE(RAND\ QUANTITY DEMANDED QUANTITY SUPPLIED SHORTAGE (
4.1.1
4.1.2Construct the demand and supply curves on the same set of ax s. (5\
4.1.3According to your graph, what are the equilibrium price and equilibrium quantity? (2\
4.2Define the term xchange rate. (2\
4.3raders buy on the cheapest markets and sell on the most expensive ones
4.3.1Differentiate between domestic trade and international trade (4\
4.3.2Give FOUR reasons for international trade. (8\
4.4State FOUR challenges that South Afric an businesses have to overcome when trading with foreign countries. (4\ [30] (3011022\30
Q5— Section header —
5.1In your own words, explain the concept of natural disaster (2\
5.2Give TWO examples of natural disasters (2\
5.3What impact do natural disasters have on the economy? (6\
5.4Define poverty (2\
5.5Expl ain THREE causes of poverty. (3\
5.6Explain the effect of poverty on the South African economy. (3\
5.7Give FOUR examples of social benefits that are provided by the South African government to address the problem of poverty. (4\
5.8Expl ain FOUR types of unemployment. (8\ [30] (3011022\ NC85030
Q6— Section header —
6.1List FOUR types of infrastructure that should be considered in agricultural business. (4\
6.2Give FOUR advantages of an improved tec hnology. (4\
6.3What impact does infrastructure have on economic growth and the competitiveness of domestic producers? (6\
6.4List FOUR forms of value created during the production process (4\
6.5Explain the importance of economics to e ntrepreneurs. (6\
6.630
Topics Identified
3
Business EnvironmentsBusiness FunctionsLeadership
Mark Allocation
Total150 marks
Sections30 + 30 + 30 + 30 = 120 marks
Key Information
Websitewww.backabuddy.co.za
Paper information
TitleDocument
SubjectEconomic Environment
LevelNCV Level 2
Document typeQuestion paper
Year2018
MonthNovember
Pages9
Downloads3
Examination context
Decade2010s
Years ago8y
SeasonSpring (SH)
Start dayThursday
Exam periodNovember 2018
Days since exam2,901
About Economic Environment examination preparation
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