Economic Environment NCV Level 3 — Document
November 2018 — NCV Level 3 — Economic Environment
NCV Level 3
2018
NCV Business
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Q1— Section header —
1.20\in the ANSWER BOOK.
1.1Natural resources include: Land and marine resources Workers in a factory Interest earned on investment
1.2An important financial institution that assists in the initial sale of securities Investment bank Commercial bank Stock exchange
1.3A bargaining council is: n association of employees whose main purpose is to regulate relations between employees and employers
1.4Break even point is when income is equal to variable cost. equal to expenses.
1.5Consumer inflation is measured by: PPI CPI GDP deflator Monetary policy
1.6The question of what to produce in a free market economy is decided by: Private individuals
1.7The process of exchanging goods or services for each other in the absence of articles as money nvestment
1.8An increase in oil prices will lead to: Cost push inflation Demand
1.9amount that the seller adds to the final costs which represents the profit of the seller.
1.10Which institution is the authoritative body that regulates skills development within a specific economic sector? SETA ASAA SADC
1.11Which of the following is not a method to ensure a more sustainable use of natural environment? Impose additional taxes on industries that produce pollutants. Make laws to control emissions of harmful substances.
1.12
1.13The main source of energy in South Africa is ater
1.14A characteristic of globalisation is: An increased gap between dev eloped and developing countries The deve
1.15Which of the following is NOT an internal activity of a business organisation? ursuing profits
1.16One supplier in the market: Oligopoly Monopoly Free competition Sole proprietorship
1.17is a process of appointing a government supplier. tender procurement franchise auction
1.18The strategy used by manager to generate number options that can be applied when needed Passive strategy Adaptation strategy
1.19General attitude or feeling of the public concerning an issue Attitude Public opinion
1.20The way that money moves or flows in and out of a business: Cash flow Cash generating Sales
Q2— Section header —
2.1Name the remuneration of four factors of production (4\
2.2Give TWO examples of costs used to calculate landed costs. (2\
2.3Give the term usually used in reference to the stock market when people are feeling confident (1\
2.4Define the following concepts:
2.4.1Dividend
2.4.2Technology
2.4.3Micro environment
2.4.4Unemployment
2.4.5Shares (5 2\ (10\ (3011023\
2.5Calculate how much a sub contractor would get paid given the following: Cost to produce: Profit percentage: Number sold: Seller
Q3— Section header —
3.1Study the extract given below and answer the questions. SOUTH AFRICAN RESERVE BANK CUTS REPO RATE TO 5 On the back of improved inflation figures and no end in sight for the Euro zone crisis, the Reserve Bank
3.1.1Define the term repo rate (2\
3.1.2According to the extract, what are the reasons for the cut in the repo rate? (2 2\ (4\
3.1.3The South African Reserve Bank most effective way of keeping inflation under control is to increase the repo rate
3.1.4Name TWO foreign exchange reserve held by South African Reserve Bank. (2\
3.2Why is money called medium of exchange? (2\
3.3Explain FOUR characteristics of mixed economy. (8\
3.4Good infrastructure is essential for economic development . Motivate this statement. (4 2\ (8\
3.5Write down the meaning of the term ationalisation. (2\ (3011023\ NC8
3.6In June 2014 the exchange rate was R10, 62 against the American d ollar. Assume that the rand has depreciated by 20%. Calculate the new exchange rate (Show all calculations.\ (3\
3.7A motor dealer intends im porting delivery vehicle from Germany. The vehicle costs R100 000 before other costs are levied. The import d uty is charged at 35%.
Q4— Section header —
4.1Define the term poverty and give an appropriate example. (4\
4.2Explain the importance of entrepreneurs in the economy. (3 2\ (6\
4.3Briefly explain how the rural urban migration causes poverty. (6\
4.4Differentiate between market environment and macro environment. (4\
4.5Which authority is responsible for provision of social services in South Africa? (2\
4.6Name TWO negative impacts of HIV/AIDS on businesses. (4\
4.7What effects does inflation have on the current account of the South African balance of payments? (4 2\ (8\
4.8What is the main function of financial markets? (2\
4.9Explain the role that the government plays as supplier or entrepreneur. (4\ [40] (3011023\ NC840
Q5— Section header —
5.1Briefly explain the economic importance of energy as part of South Africa infrastructure.
5.2What is compound interest? (2\
5.3Buddy borrows R12 000 from the bank at an interest rate of 21% p.a. He repays the loan over six months.
5.3.1Calculate the interest that Buddy will pay on the loan. (3\
5.3.2Calculate the total amount that he will repay on the loan. (3\
5.3.3Calculate his monthly repayments. (2\
5.4What is direct proportion
5.5A furniture maker and his assistance want to produce a new wooden framed couch with cloth covered foam cushions. The times they will spend on each activity to complete the tasks on hand is listed below
5.5.1Use the information provided above to explain the critical path the furniture maker and his assistance must follow in manufacturing the couch. (12\
5.5.2The furniture maker intends exporting 4 000 couch es to England. The following costs will be incurred in manufacturing the couch. Material costs R1 600 per couch Labels R240 per 600 Packaging per couch costs R100 per 50
Q6— Section header —
6.1Identify the economic sectors of the following:
6.1.1Services
6.1.2Industry
6.1.3Agriculture (3 2\ (6\
6.2Name TWO examples of renewable resources. (2\
6.3State THREE functions performed by the Land Bank in the agricultural sector. (3 2\ (6\
6.4Explain how globali ation has resulted in changes in employment conditions. (3 2\ (6\
6.5Name TWO measures used by the government to reduce poverty in South Africa. (4\
6.6Explain how one secure job opportunities in the agricultural sector. (3 2\ (6\
6.7Explain how a supplier s behaviour will directly impact the business operations and success. (4\
6.8Explain BBBEE in detail. (6\ [40] TOTAL SECTION B: 160 GRAND TOTAL: 20040
Topics Identified
5
Business EnvironmentsForms of OwnershipBusiness FunctionsLeadershipBusiness Plan
Mark Allocation
Total200 marks
Sections20 + 20 + 40 + 40 + 40 + 40 = 200 marks
Paper information
TitleDocument
SubjectEconomic Environment
LevelNCV Level 3
Document typeQuestion paper
Year2018
MonthNovember
Pages10
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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