Economic Environment NCV Level 3 — Document
February 2020 — NCV Level 3 — Economic Environment
NCV Level 3
2020
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.
1.1.1Which ONE of the following studies the behavio r of individual households, firms and businesses? Economics
1.1.2The largest tax collected by South African Revenue Services is income tax value added tax
1.1.3The tax collected on imports and exports by a country s customs authorities.
1.1.4Which method is used to determine the quickest way of doing a job? Break even
1.1.5is part of something in relation to the whole thing. ratio proportion pie
1.1.6rand dollar pound euro
1.1.7one currency can be converted into another currency. Currency Exchange rate
1.1.8Which ONE of the following is likely to be found in the market environment? Population trends
1.1.9position /jobs in the organisation are related to each other. Management Leadership
1.1.10The process of transferring a business, property or industry from private assets to governmental control or public ownership. Empowerment Privatise Nationalise
1.2Indicate whether the following statements are TRUE or FALSE. Cho ose the answer and write only 'True' or 'F alse' next to the question number (1.2.1
1.2.10\the ANSWER BOOK.
1.2.1To understand capitalism one needs to study the South African economy.
1.2.2A debenture is a certificate of acknowledgement of debt, which the company gives to the creditor.
1.2.3Interest is the price that someone pays for the temporary use of someone else s money.
1.2.4The South African Reserve Bank is the subsidiary of the bank that mint and print all coins and bank notes in
1.2.5The m icro environment contains the management of the business.
1.2.6Social environment is the behaviour of society and the resulting trends and changes with whom they interact.
1.2.7There is no legislation establishing the lowest hourly wage an employer may legally pay a worker for a job.
1.2.8Break even analysis categorise production costs as either variable costs or fixed costs.
1.2.9Variable costs are costs that are not directly related to the level of production or output.
1.2.10
1.3Choose the correct word or words from those given in brackets. Write only the word or words next to the question number (1.3.1
1.3.5\in the ANSWER BOOK.
1.3.1(Monopoly/Oligopoly\is a market in which there are many buyers but only one seller.
1.3.2Buying shares from a stock market is an example of (consumer/ investment\pending.
1.3.3Inflation is measured by (CPI/GDP\
1.3.4(Rent/Interest\he remuneration for the property owner.
1.3.5
Q2— Section header —
2.1In y our own words, explain what an economically active population means. (2\
2.2Name SIX aspects that are covered by the macro environment. (6\
2.3Define the following terms:
2.3.1Landed costs
2.3.2
2.4Mimi imported a designer dress from Wish Online hopping in the USA. The cost of the dress is $75 and the exchange rate is $1 = R16,12 Calculate what will the dress cost to import, in rand value. S
Q3— Section header —
3.1In your own words, what does it mean to break even (2\
3.2Name FOUR examples of legislation applicable to South African businesses. (4\
3.3What are the TWO factors that have given rise to globalisation? (4\
3.4Describe the mixed economic system used in South Africa. (2\
3.5Give THREE advantages of the mixed economic system. (6\
3.6Briefly explain and give an example of each of the following environments.
3.6.1Technological environment (3\
3.6.2Institutional environment (3\
3.7What kind of competitive advantage can businesses quickly realise due continuous Eskom power cuts (4\
3.8Briefly explain how an improvement in infrastructure can benefit rural communities. (4 2\ (8\ (3011023\
3.9Assume that the rand appreciates by 12,5% against the euro and the exchange rate of the
3.9.1Calculate the new exchange rate.
3.9.240
Q4— Section header —
4.1Who is the current governor of the South African Reserve Bank? (1\
4.2Explain THREE functions of the South African Reserve ank. (3 2\ (6\
4.3The weakenin g rand gives rise to inflation. Explain the term inflation. (2\
4.4Name SIX economic indicators other than the inflation rate for the South African economy. (6\
4.5Explain how the drop in rand will affect the landed costs. (3\
4.6Why do some people believe that a weak rand benefits South African exporters? (2 2\ (4\
4.7Briefly explain FOUR ways in which the South African Reserve Bank can control the rise in the inflation target set by the government (4
4.8
4.9In 2018, the Minister of Finance announced an increase of VAT from 14% to 15%. What negative effects does an increase of VAT have to South African households? (3
Q5— Section header —
5.1In which business sector does Tiger Brands operat e? (2\
5.2Identify the business environment affected by listeriosis (2\
5.3What effects does listeriosis have on households? (4 2\ (8\
5.4Describe FOUR negative impact of the tempora ry closure of the Tiger Brands factory
5.5Give FOUR possible consequences if the Tiger Brands factory does not comply with labour la ws and regulations. (4\
5.6Explain how the Tiger Brands factory can use the following strategies to their advantage
5.6.1Redeployment strategy (3\
5.6.2Contingency strategy (3\ (3011023\ Copyright reserved
5.7Due to the outbreak of listeriosis, Mr Mbeki decided to start a butchery selling meat locally in Germiston , e ast of Johannesburg. He bought a new fridge for the butchery for R10 000. There is a 10% deposit required. He will pay it off
Q6— Section header —
6.1Name FIVE types of market shares. (5\
6.2What effects does the continuous increase in the price of Brent crude oil have on the economy? (3 2\ (6\
6.3Explain how tourism can reduce poverty (2 2\ (4\
6.4Describe the effects of tourism on a country' GDP. (2 2\ (4\
6.5What is productivity? (2\
6.6Give TWO points why high productivity is beneficial to business.
6.7
6.8Black Coffee is a music producer who wants to export his 700 CDs to Italy. The total costs incurred for production of one CD is R45 and the packaging is R7,50 for 70 CDs. The shipping company charges R450 for 400 CDs.
6.8.1What is the currency used in Italy? (1\
6.8.2Calculate the total cost for exporting 700 CDs to Italy. (4\
6.8.3Calculate how much B lack Coffee will pay to export 700 CD s to (2\
6.8.4Calculate how much a local market will pay for one CD if the business requires a 25% profit. (4\ [40] TOTAL SECTION B: 160 GRAND TOTAL: 20040
Topics Identified
5
Business EnvironmentsForms of OwnershipBusiness FunctionsLeadershipBusiness Plan
Mark Allocation
Total200 marks
Sections15 + 40 + 40 + 40 + 40 = 175 marks
Paper information
TitleDocument
SubjectEconomic Environment
LevelNCV Level 3
Document typeQuestion paper
Year2020
MonthFebruary
Pages9
Downloads3
Examination context
Decade2020s
Years ago6y
SeasonSummer (SH)
Start daySaturday
Exam periodFebruary 2020
Days since exam2,445
About Economic Environment examination preparation
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