Economics N5 — Document
June 2018 — N5 — Economics
N5
2018
Nated 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.
1.1.1A form of import duty in which the tariff is levied as a certain composite ad valorem plural specific
1.1.2Fiscal policy has got to do with the supply of money in a country. exchange rate of South Africa. the financial policy of the state.
1.1.3The condition in which high rate of unemployment and inflation occur a inflation. creeping stagflation
1.1.4personal services social services construction industry
1.1.5s a criminal act where individual uses illegal means to avoid paying tax like underreporting income, inflating deductions or expenses and hiding money. Tax avoidance Tax shifting
1.1.6Technological d evelopment as an important means of speeding up research and development every year. the availability of entrepreneurs in a cou ntry.
1.1.7Mr Tema, was employed by UMALUSI and resigned in January 2018, he is currently looking for a job and is unemployed. This is cyclical frictional
1.1.8This production factor refers to physical and human effort used in the production of goods and services. Land Labour Capital
1.1.9ent nterest
1.1.10A variety of economy wide phenomena is thoroughly examined such as, inflation, price levels, rate of growth, n ational income, gross domestic product and changes in unemployment, this refers
1.2Indicate whether the following statements are TRUE or FALSE. Choose the answer and write only ' rue' or ' alse' next to the question number (1.2.1
1.2.10\the ANSWER BOOK.
1.2.1The primary source of government revenue is income obtained from donations.
1.2.2Hyper inflation can be described as a situa tion in the economy where the value of the money is totally destroyed.
1.2.3An increase in imports would likely lead to decrease in national income.
1.2.4Mutual trade occurs because countries are differently endowed with raw materials.
1.2.5 Increase in salaries of employees will cause more expenditure on goods and services, this is an example of demand pull inflation.
1.2.6Goods in process refer to those goods ready for human consumption.
1.2.7The price of the final product is one of the factors influencing the demand for labour.
1.2.8Inflow of money is treated as a credit on the balance of payments and outflow of money is treated as a debit.
1.2.9National income can only be determined by the market value of intermed iate goods.
1.2.10
1.3Choose a description from COLUMN B that matches a/an description/word/item in COLUMN A. Write only the letter (A E\next to the question number (1.3.1
1.3.5\ the ANSWER BOOK. COLUMN A COLUMN B
1.3.5Productivity Urbanisation Inflation The South African Reserve Bank The state as entrepreneur
Q2— Section header —
2.1Give ONE word/term for each of t he following descriptions. Write only the word/term next to the question number (2.1.1
2.1.5\the ANSWER BOOK.
2.1.1The payment which one person (or group\receives and then pays over to another person (or group\without a productive service being rendered.
2.1.2When calculating national income and both finished and unfinished goods are added.
2.1.3The monetary value of national income adjusted for price increases.
2.1.4The sum total of the contribution of each factor of productio n in the process of producing goods and services consisting of the costs of the production factors in the production process, namely wages,
2.1.5
2.2'Trade unions are highly effective at translating the prescriptions of the law into real benefits for their members.' In the light of this statement answer the q uestions:
2.2.1Briefly explain trade unions. (2\
2.2.2Differentiate between conciliation boards and industrial councils (4\ 22020095
2.3
2.3.1Define the term inflation. (3\
2.3.2In which year was the inflation the highest? (1\
2.3.3In which year will the inflation the lowest? (1\
2.3.4Calculate the percentage change in inflation between 2016 and 2017. Show ALL calculations. (3\
2.3.5
2.4Differentiate between the following:
2.4.1Devaluation and depreciation of currency.
2.4.2Floating exchange rate and controlled floating exchange rate.
2.4.3
2.5What does abbreviation RDP stand for? (2\
2.6Briefly explain limitations that apply to trade unions. (4\ [50]50
Q3— Section header —
3.1Give ONE word/term for each of the following descriptions by choo sing a word/term from the list below. Write only the word/term next to the question number (3.1.1
3.15\ the ANSWER BOOK. nationalisation; affirmative action; privatisation; deregulation; development
3.1.1The process whereby the standa rd of living of the majority of the population increases over time.
3.1.2The process through which the measures taken by the state to control transactions between private parties, are brought in line with the objectives.
3.1.3It is a way of mak ing the workplace more representative and fair by making sure that qualified people from designated groups (including black, coloured and Indian people\women and people with disabilities have equal opportunities in the workplace.
3.1.4This refers t o the process of a government taking control of a company or industry, which generally occurs without compensation for the loss of the net worth of seized assets and potential income.
3.1.5The process of transferring an enterprise or industry from th public sector to the private sector. (5 2\ (10\ 22020095
3.2Study the graph below and answer the questions. The relationship between money supply and interest rate
3.2.1What type of policy will the South African Reserve Bank use to control the above situation? (2\
3.2.2Ms1 is the original money supply curve, explain what happens to interest rate and money supply if the curve moves to m2. (4\
3.2.3List any TWO factors influencing the supply of money. (4\
3.3'Soft Tissues cc' is the business that produces tissue in the community. Table below refers to a demand for labour and the supply of labour in this industry. Study the table and an swer the questions that follow:
3.3.1Define the concept labour supply. (2\
3.3.2At a wage rate of R2 000 (shortage/surplus\ of labour occurs. Choose the correct answer, and show ALL calculations to support your answer. (3\
3.3.3Briefly explain what happens at a wage rate of R1 900. (2\ 22020095 11
3.4On 10 March 2018, $1 = R 11, 82. In the light of the above statement discuss exchange rate under the following headings.
3.4.1Definition (2\
3.4.2If today $1 = R12.18, is the rand (appreciates/depreciates\ against the dollar? Choose the correct answer. (2\
Q3— Section header —
3.3.4Give FOUR factors affecting the demand for foreign exchange rate. (4\
3.5Discuss the process that takes place in the diagram below. ECONOMIC CYCLE (8\
3.6What is the difference between gross national product and gross domestic product? (4\ [50] 2202009550
Q4— Section header —
4.1Indicate whether the following is a cause, consequence or measurement of unemployment in South Africa.
4.1.1Expensive skills and potential ability are lost.
4.1.2The decline in economic activity.
4.1.3The capacity of the economy to create more job opportunities.
4.1.4The total number of people employed in the formal sector is subtracted from the total e conomically active population.
4.1.5
4.2Demonstrate your understanding on the motives for savings by providing ONE example of each. (6\
4.3The information below refers to national income of a country. Make use of the table to answer the questions. 2015 2016 2017 Population 62 million 63
4.3Calculate the real per capita income for 2016. Show ALL calculations. (4\
4.3.2Calculate the real national income for 2017. Show ALL calculations.
4.3.3Indicate whether there was a decrease or an increase in economic growth between 20 16 and 2017. Show ALL calculations. (3\
4.3.4List any THREE uses of calculating national income. (3\
4.4Discuss fiscal policy under the following headings:
4.4.1Definition. (3\
4.4.2Name the fiscal policy instruments. (6\ 4. List FOUR factors that influence the economic growth. (4\
4.6Define the term economic cycle. (3\ 22020095 13
4.7Each government in any country has functions to perform. With reference to South Africa, discuss economic welfare as one of the function s which should be provided by the state. Also provide one example.
Q5— Section header —
5.1Study the picture below and answer the questions
5.1.1Which economic development problem is depicted in the picture above? (2\
5.1.2Explain the measu res that are currently applied to reduce this problem. (4\
5.2Economists expect stronger growth to eventually boost labour market sentiment. Discuss the South Africa' s labour problem. (12\
5.3Discuss the following economic reasons for protecti on.
5.3.1Dangers of dumping.
5.3.2
5.4Read the extract below and answer the questions. The dark side of Budget 2018: VAT compliance It seems as though tax administra tion and compliance have taken a back seat in the ongoing struggle to fund the revenue shortfall. In the past year
5.4.1What is the current VAT rate? (2\
5.4.2Suppose the selling price of a pair of jean in January 2018 was R499.00, because of the change in VAT rate as from 1 Apr il 2018 the selling price changes. Calculate the new selling price of the same jean
5.4.3Briefly explain the effect of such a change in VAT in the consumers' basket of goods? (3\
5.4.4VAT is an example of direct taxation. TRUE/FALSE? (2\
5.5Discuss the requirements of a good wage system. (8\
5.6Explain the term time wage (2\
5.7List any TWO methods to increase national income. (4\ [50] TOTAL SECTION B: GRAND TOTAL: 150 20050
Multiple Choice Options
1A)Write only the letter (A
Topics Identified
3
MicroeconomicsMacroeconomicsInternational Trade
Mark Allocation
Total150 marks
Sections50 + 50 + 50 + 50 + 50 = 250 marks
Key Information
Websitewww.fin24.com
Paper information
TitleDocument
SubjectEconomics
LevelN5
Document typeQuestion paper
Year2018
MonthJune
Pages14
Downloads2
Examination context
Decade2010s
Years ago8y
SeasonWinter (SH)
Start dayFriday
Exam periodJune 2018
Days since exam3,052
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