Economics

Written for this guide. A spaza shop in Mthatha raised the price of a 2 kg bag of maize meal from R32 to R40 after its supplier raised the wholesale price. Item 1.1 reads: ‘Identify the new price of a bag of maize meal. (1)’ Which answer earns the mark?

Written for this guide. From a report: ‘We had to close two classrooms because the school’s electricity bill doubled this year,’ the principal says. Item 1.2 reads: ‘Quote the reason why classrooms were closed. (1)’ Which answer earns the mark?

Written for this guide. The unemployment rate was 27,9% in Year 1 and 32,1% in Year 3. Item 1.3 reads: ‘Describe the trend in the unemployment rate. (2)’ Which answer earns both marks?

Item 1.4 reads: ‘Define the term GDP. (2)’ Which answer earns both marks?

Written for this guide. A cinema sold 250 tickets last week and 300 this week. Item 1.5 reads: ‘Calculate the percentage change in tickets sold. Show ALL calculations. (4)’ Which working earns all four marks?

Written for this guide. A table gives GVA in R billion: primary 120; secondary 480; tertiary 1 300. Calculate total GVA. Which is the complete final answer?

Written for this guide. A town has 6 000 unemployed and 14 000 employed people. Calculate the unemployment rate. Which is the complete final answer?

A bakery gives up 36 loaves to gain 12 cakes. Calculate the opportunity cost. Which is the complete final answer?

A country has a birth rate of 18 and a death rate of 6, both per 1 000. Calculate the natural growth rate as a percentage. Which is the complete final answer?

Written for this guide. Real GDP growth in four quarters was 1,2%; 0,4%; −0,4% and 0,8%. Calculate the average growth rate per quarter. Which is the complete final answer?

‘Using a graph, show the effect of a rise in consumers’ incomes on the market for restaurant meals.’ Which change to the graph earns the shift mark?

‘Using a graph, show the effect of a fall in the price of rice on the market for pap.’ Rice is a substitute for pap. Which change to the graph earns the shift mark?

‘Using a graph, show the effect of a new, cheaper oven technology on the market for bread.’ Which change to the graph earns the shift mark?

‘Using a graph, show the effect of a rise in the price of flour on the market for bread.’ Flour is an input in baking. Which change to the graph earns the shift mark?

‘Using a graph, show the effect of a fall in the price of oranges from R30 to R20 a bag on the quantity demanded.’ Which description is correct?

Written for this guide. A district has 7 500 unemployed and 22 500 employed people. Calculate the unemployment rate.

Written for this guide. A farm can produce 80 t of wheat and 10 t of maize at point A, or 56 t of wheat and 18 t of maize at point B. Calculate the opportunity cost of one more tonne of maize when moving from A to B.

A country has a birth rate of 21 and a death rate of 7, both per 1 000. Calculate the natural growth rate.

Written for this guide. The mining sector produced R360 billion of a total GVA of R1 800 billion. Calculate its share of total GVA.

Written for this guide. Total utility from glasses of juice is 66 units after the 3rd glass and 78 units after the 4th. Calculate the marginal utility of the 4th glass.

Written for this guide. The unemployment rate is 18% and the labour force is 25 000 people. Rearrange rate = unemployed ÷ labour force × 100 to find the number of people unemployed.

Written for this guide. Total GVA is R2 400 billion. The primary sector produced R150 billion and the secondary sector R650 billion. Rearrange total = primary + secondary + tertiary to find the tertiary sector’s GVA.

Written for this guide. A household’s electricity bill was R2 500 and then rose by 8%. Which calculation gives the new bill?

Written for this guide. Total utility after the 2nd glass is 54 units, and the marginal utility of the 3rd glass is 18 units. Rearrange MU = TU now − TU before to find the total utility after the 3rd glass.

Written for this guide. After a rise of 5%, a school’s fees are R1 260 a term. Which calculation gives the fees before the rise?

Written for this guide. A bar chart of monthly takings shows Shop A at R960 and Shop B at R1 080, but its vertical axis starts at R900. Shop B’s bar looks three times as tall as Shop A’s. A learner says: ‘Shop B earns three times as much.’ Which verdict is correct?

Written for this guide. Real GDP growth was −1,9% in Y1 Q4. A learner writes in her answer: ‘Real GDP grew by 1,9% in Y1 Q4.’ Which verdict is correct?

Written for this guide. The primary sector (R100 billion) grew by 10% and the tertiary sector (R900 billion) grew by 2%. A learner says: ‘The economy grew by the average of 10% and 2%, which is 6%.’ Which verdict is correct?

Written for this guide. A sector’s share of total GVA fell from 25% to 22%, while total GVA rose from R2 000 billion to R2 400 billion. A learner says: ‘The sector shrank, because its share fell.’ Which verdict is correct?

Written for this guide. Unemployed people numbered 2,0 million in Year 1 and 2,2 million in Year 2, while the labour force grew from 8,0 million to 9,2 million. A learner says: ‘The unemployment rate rose, because there are more unemployed people.’ Which verdict is correct?

Written for this guide. Using a graph, show the effect of a new, cheaper baking technology on the price of bread. Describe the graph you would draw, label by label: the axes, the names of the curves, the starting point and the change. Write full sentences. (4)

1. graph: axes named, price (P) on the vertical axis and quantity (Q) on the horizontal axisThe first tick is for both axes named the right way round: price up the side, quantity along the bottom.
2. graph: both curves named, demand D and supply SA curve with no name earns nothing, so D and S must be written on the sketch.
3. graph: the start point e where D and S cross, dashed to P and QThe start mark is for e with its dashed lines to both axes, so the starting price and quantity can be read.
4. graph: S shifts right to S1 with the new equilibrium e1, P1 lower and Q1 largerCheaper technology changes supply, not demand, so S moves right; naming S1 and e1 with P1 and Q1 earns the last mark.

Price (R a loaf) goes up the vertical axis and quantity (thousand loaves) goes across the horizontal axis. I draw the demand curve D sloping down and the supply curve S sloping up, and I name both. I mark e where D and S cross and dash it across to P on the price axis and down to Q on the quantity axis. Cheaper technology lowers the bakers’ costs, so supply increases: S shifts to the right and I name it S1; it crosses D at the new equilibrium e1, with a lower price P1 and a larger quantity Q1.

Written for this guide. (a) A country has a birth rate of 28 and a death rate of 11, both per 1 000. Calculate the natural growth rate. (3)
(b) A farm can produce 60 t of maize and 10 t of sunflower at point A, or 36 t of maize and 16 t of sunflower at point B. Calculate the opportunity cost of 1 t of sunflower when moving from A to B. (3)
Show ALL calculations: formula, substitution and answer with its unit.

1. calculation-method: (a) the formula, (birth rate − death rate) ÷ 10, with both rates per 1 000The formula is the first tick; the ÷ 10 is what turns a rate per 1 000 into a percentage.
2. calculation-method: (a) the substitution and working, 28 − 11 = 17, then 17 ÷ 10A line of working earns the method mark even if the final figure slips.
3. calculation-accuracy: (a) the answer, 1,7%The accuracy mark is for 1,7 with its % sign; 17% forgets the ÷ 10.
4. calculation-method: (b) the formula, units given up ÷ units gainedThe good you gain is the divisor; flipping the ratio answers another question.
5. calculation-method: (b) the substitution, 24 t of maize given up for 6 t of sunflower gained, 24 ÷ 6Both differences must be found first: 60 − 36 = 24 given up and 16 − 10 = 6 gained.
6. calculation-accuracy: (b) the answer, 4 t of maize per tonne of sunflowerThe accuracy mark needs the number and its unit: a bare 4 has no ‘per tonne of sunflower’.

(a) Natural growth rate = (birth rate − death rate) ÷ 10, with both rates per 1 000. Substituting, 28 − 11 = 17 and 17 ÷ 10. The natural growth rate is 1,7%. (b) Opportunity cost = units given up ÷ units gained. Moving from A to B gives up 60 − 36 = 24 t of maize to gain 16 − 10 = 6 t of sunflower, so 24 ÷ 6. The opportunity cost is 4 t of maize per tonne of sunflower.

Written for this guide. Thabo’s Tuckshop in Mthatha raised the price of a 2 kg bag of maize meal from R32 to R40 on 1 March because his supplier raised its wholesale price. In February Thabo sold 250 bags a week; in March he sold 200. ‘My regulars now buy a smaller bag, or walk to the supermarket,’ he says.
3.1 Identify the new price of a bag of maize meal. (1)
3.2 Quote the reason for the price rise. (1)
3.3 Describe the trend in weekly sales. (2)
3.4 Explain why fewer bags were sold. (2)
3.5 Calculate the percentage change in weekly sales from February to March. Show ALL calculations. (4)

1. recall: 3.1 R40An identify item is read straight off the extract, with its unit.
2. recall: 3.2 ‘because his supplier raised its wholesale price’A quote item wants the reason in the extract’s own words, not the result.
3. recall: 3.3 a figure from each end, 250 bags a week and 200 bags a weekA trend answer quotes a figure from each end of the data.
4. recall: 3.3 which way it moved, it fellThe second tick is for the direction: sales fell.
5. fact-explained: 3.4 the price rose, so buyers bought fewer bags (the quantity demanded fell)The claim: a higher price lowers the quantity demanded.
6. fact-explained: 3.4 because regulars switched to a smaller bag or walked to the cheaper supermarketThe reason uses the extract: customers found a cheaper way or bought less.
7. calculation-method: 3.5 the formula, (new − old) ÷ old × 100The change is divided by the old value, February’s 250.
8. calculation-method: 3.5 the substitution, (200 − 250) ÷ 250 × 100March is the new value, 200, and February the old one, 250.
9. calculation-method: 3.5 the working, −50 ÷ 250 × 100One line of working between the substitution and the answer.
10. calculation-accuracy: 3.5 the answer, −20%, a fallThe sign must be kept: a fall is negative, so −20%, not +20%.

3.1 The new price is R40. 3.2 ‘because his supplier raised its wholesale price’. 3.3 Weekly sales moved from 250 bags in February to 200 bags in March, so they fell. 3.4 When the price rose, buyers bought fewer bags, because the quantity demanded falls when price rises, and regulars switched to a smaller bag or walked to the cheaper supermarket. 3.5 Percentage change = (new − old) ÷ old × 100. Substituting, (200 − 250) ÷ 250 × 100. Working: −50 ÷ 250 × 100 = −0,2 × 100. The answer is −20%, a fall of 20% in weekly sales.

Explain to a Grade 8 learner why we write the unit on every answer in Economics. Give a unit for total GVA, one for an unemployment rate and one for an opportunity cost.

Explain to a Grade 8 learner how the words of a question tell you which curve moves on a supply and demand graph. Use a drought and a rise in incomes.

Explain to a Grade 8 learner why ‘unemployment rose from 25% to 30%’ is a rise of 5 percentage points and not a rise of 5%.