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2011/09/02 3:17 PM

Economics Tests.pdf 1 7/2/2011 4:09:25 PM

Grade 10
ECONOMICS
PRACTICE TEST ONE
Marks: 60

QUESTION 1
Choose the correct term in brackets. Write only the term next to the question number (1.11.4)
in your answer book.
1.1

(Micro-economics/Macro-economics) examines economy-wide phenomena such as

unemployment, national income, economic growth and inflation.

(2)

1.2

The theory of price determination is an example of a topic study in (microeconomics/macro-economics).

(2)

1.3

To say, income tax in South Africa is an unfair system of taxation, is an example of a

(normative/positive) statement.

(2)

1.4

To say, interest rates in South Africa are below 10%, is an example of a

(normative/positive) statement.

(2)
[8]

QUESTION 2
List the THREE basic economic questions.

[6]

QUESTION 3
Draw and label a circular flow diagram to show how firms, households and the government
interact in an open economy.

[18]

Economics Tests.pdf 2 7/2/2011 4:09:25 PM

QUESTION 4
Study the diagram below and then answer the questions that follow.

4.1

Identify the missing parts (labelled AD) in the diagram above.

(8)

4.2

Explain whether the above diagram represents an open or closed economy.

(4)

Economics Tests.pdf 3 7/2/2011 4:09:25 PM

4.3

Use the figures in the table below to calculate the value of aggregate spending in the
economy.
Areas of spending

Symbols

Aggregate spending

Consumption spending

R140 million

Investment spending

R20 million

Government spending

R90 million

Imports

R40 million

Exports

R10 million
(8)
[20]

QUESTION 5
Choose the correct term in brackets. Write only the term next to the question number (5.15.4)
in your answer book.
5.1

During a recession in the business cycle, there is an increase in the rate of

(unemployment/economic growth).

(2)

5.2

During a boom in the business cycle, there is (a depreciation/an appreciation) of the

local currency.

(2)

5.3

Technological advances which improve productivity levels will generally lead to an

economic (recession/boom).

(2)

5.4

During an economic (boom/recession), there is an increase in the real value of goods

and service produced.

(2)
[8]

[TOTAL: 60 marks]

Economics Tests.pdf 4 7/2/2011 4:09:25 PM

Grade 10
ECONOMICS
PRACTICE TEST TWO
Marks: 70
QUESTION 1
Various possible answers are provided for each of the following questions. Write the letter only
of the correct answer next to the relevant question number.

1.1

1.2

1.3

1.4

Which of the following factors would lead to an increase in the demand for DVDs?
A

A decrease in the price of DVDs.

An increase in the supply of DVDs.

A decrease in the price of DVD players.

A decrease in the supply of DVDs.

(2)

Which of these statements best describes the law of demand?

A

When the supply of a product increases the demand will increase.

When the price of a product increases the quantity demanded will decrease.

When the price of a product increases the quantity demanded will increase.

If consumer incomes increase there will be an increase in demand for a product.

(2)

Suppose there is a very effective advertising campaign for a particular good. The effect
of this, ceteris paribus, will be:
A

a shift along the demand curve up and to the left.

a shift along the demand curve down and to the right.

a shift in the position of the demand curve up and to the right.

a shift in the position of the demand curve down and to the left.

(2)

A shows what can be produced when using the factors of production in the most
efficient way possible.
A

balance of payments account

market equilibrium curve

production possibility curve

graph depicting the intersection of a demand curve and a supply curve.

4

(2)

Economics Tests.pdf 5 7/2/2011 4:09:25 PM

1.5

1.6

1.7

1.8

Suppose there is an increase in the demand for a good. This, will ceteris paribus, lead
to
A

a decrease in the equilibrium price and quantity of the good.

an increase in the equilibrium price and quantity of the good.

an increase in the equilibrium price and a decrease in the equilibrium quantity of

the good.

a decrease in the equilibrium price and an increase in the equilibrium quantity of

the good.

(2)

Suppose there is an increase in the supply of a good. This, will ceteris paribus, lead
to
A

a decrease in the equilibrium price and quantity of the good.

an increase in the equilibrium price and quantity of the good.

an increase in the equilibrium price and a decrease in the equilibrium quantity of

the good.

a decrease in the equilibrium price and an increase in the equilibrium quantity of

the good.

(2)

Suppose that the demand and supply of a product increase simultaneously. This, will
ceteris paribus, lead to
A

an increase in the market price.

a decrease in the market price.

an increase in the equilibrium quantity.

a decrease in the equilibrium quantity.

(2)

Suppose that unfavourable weather conditions affect the supply of apples in South
Africa. The effect of this, ceteris paribus, will be:
A

a shift along the supply curve up and to the right.

a shift along the supply curve down and to the left.

a shift in the position of the demand curve down and to the right.

a shift in the position of the demand curve up and to the left.

(2)

Economics Tests.pdf 6 7/2/2011 4:09:25 PM

1.9

Which of the following statements best describes the law of supply?

A

When the demand for a product increases the supply decreases.

When the demand for a product decreases the supply decreases.

When the price of a product increases the quantity supplied increases.

When costs of production increase the supply of a product will decrease.

(2)
[18]

QUESTION 2
List any THREE functions of a market.

[6]

QUESTION 3
Study the figures below:
Quantity

15

Fixed Cost

250

Variable cost

500

Using the above figures, calculate:

3.1

Total costs

(2)

3.2

Average Costs

(4)

3.3

Average Variable costs

(4)

3.4

If the total cost for 25 units is R350 and the total cost for 30 units is R550, calculate the
Marginal cost.

(6)
[16]

QUESTION 4
List THREE characteristics of an imperfect market.

[6]

Economics Tests.pdf 7 7/2/2011 4:09:25 PM

QUESTION 5
Choose the correct term in brackets. Write only the term next to the question number (5.15.4)
in your answer book.
5.1

Value-added tax (VAT) is an example of (a direct/an indirect) tax.

(2)

5.2

(Subsidies/direct taxes) are provided to both consumers and producers.

(2)

5.3

(Subsidies/welfare grants) enable firms to supply a greater quantity of a good or

service, thus lowering the market price.

(2)

5.4

If the state imposes a price ceiling (maximum price), it ensures that the price of the
good remains (below/above) a certain level.

(2)
[8]

QUESTION 6
Use a diagram to analyse the effect of an indirect tax on a good or service.
[TOTAL: 70 marks]

[16]

Economics Tests.pdf 8 7/2/2011 4:09:26 PM

Grade 10
ECONOMICS
PRACTICE TEST THREE
Marks: 50
QUESTION 1
Various possible answers are provided for each of the following questions. Write the letter only
of the correct answer next to the relevant question number.
1.1

1.2

1.3

1.4

In the economic history of South Africa, the of economic development was

characterised by subsistence farming and bartering.
A

pre-colonial era

agricultural phase

agricultural mining phase

industrial development phase.

(2)

During the of economic development in South Africa, the VOC bought slaves from
India, East Indies and Madagascar to work on their commercial farms and to work as
gardeners, builders and carpenters.
A

pre-colonial era

agricultural phase

agricultural mining phase

industrial development phase.

(2)

The first bank notes were issued in South Africa

A

in the early 1700s.

in the late 1700s.

before 1700.

after 1800.

(2)

The first bank to be established in South Africa was

A

a private bank which only took deposits.

a government-controlled bank which only took deposits.

a private bank which lent people money to purchase land.

a government-controlled bank which lent people money to purchase land.

8

(2)

Economics Tests.pdf 9 7/2/2011 4:09:26 PM

1.5

The is defined as that proportion of the population, which is between 16 and 65 years
of age and has the potential to be employed.
A

labour force participation rate

economically-active population

rate of unemployment

labour absorption rate.

(2)
[10]

QUESTION 2
Choose an appropriate description from COLUMN B to match the concept in COLUMN A. Write
only the letters (AH) to indicate your choice next to each question number (2.12.8) in your
answer book.
COLUMN A

COLUMN B

2.1

Characteristic of the traditional stage

of economic development in Europe

The establishment of towns and the

emergence of travelling merchants

2.2

Characteristic of the transitional

stage of economic development in
Europe

Industrial Revolution

2.3

Characteristic of the take-off stage of

economic development in Europe

A severe lack of economic freedom

and no specialisation of labour

2.4

Characteristic of the stage of

economic maturity in Europe

Formation of labour unions

2.5

Characteristic of the period of mass

production in the economic
development of Europe

Approximately from 1200 to 1700

2.6

The duration of the transitional

period of economic development in
Europe

Mercantilism

2.7

The duration of the take-off period of

economic development in Europe

Approximately from 1700 to 1900

2.8

The duration of the period of

economic maturity in Europe

Approximately from 1000 to 1200

[16]
9

Economics Tests.pdf 10 7/2/2011 4:09:26 PM

QUESTION 3
List the THREE most important characteristics of the pre-colonial era of economic development
in South Africa.

[6]

QUESTION 4
List ONE item which was commonly used to barter with in Africa, prior to the introduction of
notes and coins.

[2]

QUESTION 5
Choose the correct term in brackets. Write only the term next to the question number (5.15.4)
in your answer book.
5.1

Population growth leads to (an increase/a decrease) in the supply of labour.

(2)

5.2

The difference between the birth rate and death rate is called the (infant mortality
rate/natural growth rate).

(2)

5.3

Population growth leads to (an increase/a decrease) in the demand for consumer
goods.

(2)

5.4

Urbanisation is the process whereby the population of urban areas

(decreases/increases) as the result of migration.

(2)
[8]

QUESTION 6
Choose the correct term in brackets. Write only the term next to the question number (6.16.4)
in your answer book.
6.1

Since 1970, the unemployment rate in South Africa has steadily (increased/decreased).

(2)

6.2

The unemployment rate is the percentage of the (total/economically-active) population

that is actively looking for work, but is unable to find employment.

(2)

6.3

Population growth leads to (an increase/a decrease) in the supply of labour.

(2)

6.4

Population growth leads to (an increase/a decrease) in the aggregate demand for
consumer goods.

(2)
[8]

[TOTAL: 50 marks]

10

Economics Tests.pdf 11 7/2/2011 4:09:26 PM

Grade 10
ECONOMICS
PRACTICE TEST FOUR
Marks: 60
QUESTION 1
Various possible answers are provided for each of the following questions. Write the letter only
of the correct answer next to the relevant question number.
1.1

1.2

1.3

When people are temporarily unemployed because they are moving between jobs, they
form part of unemployment figures.
A

seasonal

frictional

structural

cyclical.

(2)

If the demand for labour increases, there will be

A

an increase in the wage rate, but a decline in the level of employment.

an increase in both the wage rate and the level of employment.

a decrease in the wage rate and an increase in the level of employment.

a decrease in both the wage rate and the level of employment.

(2)

Suppose both the demand for and supply of labour were to increase. This, would ceteris
paribus, most certainly lead to
A

an increase in the wage rate.

an increase in the level of employment.

a decrease in the wage rate.

a decrease in the level of employment.

(2)
[6]

11

Economics Tests.pdf 12 7/2/2011 4:09:26 PM

QUESTION 2
Choose an appropriate description from COLUMN B to match the concept in COLUMN A. Write
only the letters (AH) to indicate your choice next to each question number (2.12.8) in your
answer book.
COLUMN A

COLUMN B

2.1

Labour unions

A group set up within an organisation to

settle disputes between employers and
employees

2.2

Workplace forums

Assists with disputes, which could not be

resolved within an organisation

2.3

Bargaining councils

A group of workers from a specific sector,

who organise themselves to promote their
social, economic and political goals

2.4

Commission for Conciliation,

Mediation and Arbitration
(CCMA)

Legislation, which seeks to protect the

rights of individuals in the workplace and
promote collective bargaining

2.5

Labour courts

A body responsible for regulating labour

practices and ensuring compliance with
the Labour Relations Act

2.6

Basic Conditions of
Employment Act

Legislation which seeks to promote the

employees physical well-being

2.7

Labour Relations Act

Sets out minimum terms and conditions for

employment

2.8

Occupational Health and

Safety Act

A collection of employees within a

business who meet to discuss labour
issues at work
[16]

12

Economics Tests.pdf 13 7/2/2011 4:09:26 PM

QUESTION 3
Critically discuss the factors which contribute to high unemployment figures in South Africa.

[16]

QUESTION 4
List any THREE examples of legislation in South Africa, which seek to promote labour relations
and workers rights.

[6]

QUESTION 5
Explain the difference between the Labour Relations Act and the Basic Conditions of
Employment Act.
[TOTAL: 60 marks]

13

[16]

Economics Tests.pdf 14 7/2/2011 4:09:26 PM

Grade 10

ECONOMICS
PRACTICE TEST ONE MEMORANDUM

QUESTION 1
1.1

macro-economics

(2)

1.2

micro-economics

(2)

1.3

normative

(2)

1.4

positive

(2)
[8]

QUESTION 2
2

What , how , and for whom to produce?

[6]

QUESTION 3
3

[18]

14

Economics Tests.pdf 15 7/2/2011 4:09:26 PM

QUESTION 4
4.1

A: Business enterprises
B: Households
C: Households receive income (wages, salaries, rent and interest)
D: Taxes

(8)

4.2

The diagram shows a closed economy , because there is no foreign sector .

(4)

4.3

Y = C + I + G + X M
Y = R140 million + R20 million + R90 million + R10 million R40 million
Y = R220 million

(8)
[20]

QUESTION 5
5.1

unemployment

(2)

5.2

an appreciation

(2)

5.3

boom

(2)

5.4

boom

(2)
[8]
[TOTAL: 60 marks]

15

Economics Tests.pdf 16 7/2/2011 4:09:26 PM

Grade 10

ECONOMICS
PRACTICE TEST TWO MEMORANDUM

QUESTION 1
1.1

(2)

1.2

(2)

1.3

(2)

1.4

(2)

1.5

(2)

1.6

(2)

1.7

(2)

1.8

(2)

1.9

(2)
[18]

QUESTION 2
2

Brings buyers and sellers together .

Allocates resources .
Allows prices and quantities to be negotiated .

[6]

QUESTION 3
3

Worked answer

3.1

Total Cost = Fixed Cost + Variable Cost

Total Cost = 250 + 500
Total Cost = 750

3.2

Average Costs = Total Costs / Quantity

Average Costs = 750 / 15
Average Costs = 50

3.3

Average Variable Costs = Variable Costs / Quantity

Average Variable Costs = 500 / 15
Average Variable Costs = 33.3

3.4

Marginal Costs = change in Total costs / change in Quantity

Marginal Costs = (550 350) / (30 25)
Marginal Costs = 200 / 5
Marginal Costs = 40

16

[16]

Economics Tests.pdf 17 7/2/2011 4:09:26 PM

QUESTION 4
4

Any THREE of the following:

A single supplier ()
Products are not homogenous (similar / identical) ()
The seller is protected from competition no free competition ()
Companies are given the rights to be the only operators in a country ()

[6]

QUESTION 5
5.1

indirect

(2)

5.2

subsidies

(2)

5.3

subsidies

(2)

5.4

below

(2)
[8]

17

Economics Tests.pdf 18 7/2/2011 4:09:26 PM

QUESTION 6
6

Mark allocation for diagram

The above diagram shows how imposing an indirect tax shifts the supply curve up and to
the left (in effect decreasing the supply of the good ). This leads to a decrease in
the quantity of the good being produced and an increase in the market price .
[16]
[TOTAL: 70 marks]

18

Economics Tests.pdf 19 7/2/2011 4:09:26 PM

Grade 10

ECONOMICS
PRACTICE TEST THREE MEMORANDUM

QUESTION 1
1.1

(2)

1.2

(2)

1.3

(2)

1.4

(2)

1.5

(2)
[10]

QUESTION 2
2.1

(2)

2.2

(2)

2.3

(2)

2.4

(2)

2.5

(2)

2.6

(2)

2.7

(2)

2.8

(2)
[16]

QUESTION 3
3

Any THREE of the following:

The country was inhabited by the Khoi-San and African tribes ().
Subsistence farming was the norm although some barter took place (using skins,
livestock, food, pottery, tobacco and metal objects) ().
Ivory and gold were traded (sometimes with individuals from other countries) ().
In 1652, a Dutch shipping company (the VOC), established a halfway port and
refreshment station in the Cape ().

19

[6]

Economics Tests.pdf 20 7/2/2011 4:09:26 PM

QUESTION 4
4

Any ONE of the following:

cattle ()
sheep ()
goats ()
[2]

indigenous grain ()

QUESTION 5
5.1

increase

(2)

5.2

natural growth rate

(2)

5.3

an increase

(2)

5.4

increases

(2)
[8]

QUESTION 6
6.1

increased

(2)

6.2

economically-active

(2)

6.3

an increase

(2)

6.4

an increase

(2)
[8]
[TOTAL: 50 marks]

20

Economics Tests.pdf 21 7/2/2011 4:09:26 PM

Grade 10

ECONOMICS
PRACTICE TEST FOUR MEMORANDUM

QUESTION 1
1.1

(2)

1.2

(2)

1.3

(2)
[8]

QUESTION 2
2.1

(2)

2.2

(2)

2.3

(2)

2.4

(2)

2.5

(2)

2.6

(2)

2.7

(2)

2.8

(2)
[16]

QUESTION 3
3

In South Africa, the following factors contribute to unemployment:

Declining demand for consumer goods, which leads to a decreased demand for
labour
Increased mechanisation and a shift to capital-intensive production techniques ,
which leads to a decrease in the demand for labour
Trade unions which drive up wage rates , and decreases the demand for
labour
An oversupply of skilled labour
Rapid population growth
A lack of investment , which results in a lack of new business opportunities and
employment opportunities

21

[16]

Economics Tests.pdf 22 7/2/2011 4:09:26 PM

QUESTION 4
4

Labour Relations Act

Basic Conditions of Employment Act
Occupational Health and Safety Act

[6]

QUESTION 5
5

The Labour Relations Act sets out to protect the rights of individual workers by
providing a mechanism for collective bargaining and the resolution of disputes .
This Act seeks to promote consultation in the workplace . This is different from the
Basic Conditions of Employment Act, which also seeks to promote individual workers
rights , but does so by stipulating certain standards and limits to protect
workers, for example, from working long hours or being paid unfairly . Both Acts
prevent exploitation, but in different ways .
[TOTAL: 60 marks]

22

[16]

Maskew Miller Longman (Pty) Ltd

Forest Drive, Pinelands, Cape Town
Ofces in Johannesburg, Durban, King Williams Town, Polokwane, Bloemfontein, representatives in
Makeng and companies throughout southern and central Africa.
website: www.mml.co.za
Maskew Miller Longman (Pty) Ltd 2011
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or
transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise,
without the prior written permission of the copyright holder.
Every effort has been made to trace the copyright holders of material produced in this title. We would
like to apologise for any infringement of copyright so caused, and copyright holders are requested to
contact the publishers in order to rectify the matter.
First published in 2011
ISBN 978-0-636-12975-7

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Focus_Exam Practice Book_COVER_Economics_Gr10.indd 1

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