National Certificate (Vocational)

MARKING GUIDELINE-1-EXEMPLAR 2008

ECONOMIC ENVIRONMENT

NATIONAL CERTIFICATE (VOCATIONAL)

NQF LEVEL 3

EXEMPLAR 2008

ECONOMIC ENVIRONMENT

This marking guidelines consists of 8 pages.

SECTION A

QUESTION 1

1.1 / A / B / C / D
1.1.1 / X
1.1.2 / X
1.1.3 / X
1.1.4 / X
1.1.5 / X
1.1.6 / X
1.1.7 / X
1.1.8 / X
1.1.9 / X
1.1.10 / X
1.1.11 / X
1.1.12 / X
1.1.13 / X
1.1.14 / X
1.1.15 / X / (15 × 2) / (30)

QUESTION 2

2.1 / 2.1.1 / D
2.1.2 / G
2.1.3 / A
2.1.4 / H
2.1.5 / J
2.1.6 / I
2.1.7 / C
2.1.8 / E
2.1.9 / F
2.1.10 / B / (10 × 2) / (20)

QUESTION 3

3.1 / 3.1.1 / important duties
3.1.2 / inflation
3.1.3 / riot
3.1.4 / ounces
3.1.5 / supermarket
3.1.6 / leaders
3.1.7 / infrastructure
3.1.8 / internet
3.1.9 / consumer price index
3.1.10 / R2 866 / (10 × 1) / (10)
3.2 / TRUE/FALSE
3.2.1 / False
3.2.2 / True
3.2.3 / True
3.2.4 / False
3.2.5 / True
3.2.6 / True
3.2.7 / False
3.2.8 / True
3.2.9 / True
3.2.10 / False / (10 × 2) / (20)
[50]

SECTION B

QUESTION 4

4.1
4.2
4.3
4.4
4.5 / Secondary industry
Government
Businesses
Community of Cape Town(any 2 × 1)
Labour
Hotel
Banking
Retail sector
Entertainment(any 2 × 1)
Yes
Investment inflow into the country
Job opportunities that's created
New businesses that is created
Tourism opportunities
(any other reasonable answer)(any 3 × 1) / (2)
(2)
(1)
(2)
(3)
4.6
4.7 / 4.6.1
4.6.2
4.7.1
4.7.2 / Profit
54 months
Goods can be acquired immediately when needed
Discount house is a financial institution like banks
that specialise in buying
selling bills of exchange / (1)
(1)
(1)
(3)
4.8 / 4.8.1
4.8.2
4.8.3 / A share is a small piece of a company that anyone who has money can buy.
Financial index
R24,50 - R21,50 = R3
R3 divided by R21,50 × 100 = 13,95% or 14% / (2)
(2)
(4)
4.9 / Dividends is the profits returned to shareholders for buying/investing in shares in a company. / (2)
[30]

QUESTION 5

5.1
5.2
5.3
5.4
5.5
5.6 / Economic indicators are statistics that the South African growth publishes regularly that show how the economy is growing or falling to grow.
£12 500 × R14,286 = R178 575
R5,00 + 6,48% = R5,32
Increase price of commodities as petrol and fuel prices will increase
Reduce available income
Indicate to government, country and foreign countries how economy is progressing/growing
which areas of the economy is not performing so well so that government can take corrective action
to make informed decisions for example using exchange rate to determine cost of foreign goods (3 × 2)
Foreign exchange reserves are the amounts of foreign currency that other countries keep. / (2)
(3)
(2)
(2)
(6)
(2)
5.7 / 5.7.1 / Good an increase in the gold price implies more revenue for the country / (3)
5.8 / Civil war in countries like Sierra Leone, Nigeria
Corruption amongst government employees
Lack of skills
Population increase
Lack of infrastructure
(any other reasonable answer)(any 2 × 1) / (2)
5.9 / 5.9.1 / Drought
Storms
Floods(any 2 × 1) / (2)
5.9.2 / Food shortages that can cause famine.
Infrastructure damage the can cause big expenses
Skills shortages can occur (loss of life)(any 2 × 1) / (2)
5.9.3 / No, they are natural disasters
However measures can be taken to control them for example declare areas flood disaster areas and remove people from living their. / (2)
[30]

QUESTION 6

6.1 / Bombing of the World Trade Centre/Twin Towers / (1)
6.2 / 6.2.1
6.2.3
6.2.3 / Roads
Stadiums
Rail Transport
Airports(any 2 × 1)
A good infrastructure improves trade and a growth in the economy.
The maintenance of infrastructure can become costly if it isn't done regularly
Repair costs increase
Could lose revenue, investment opportunities if it not done regularly. (any other reasonable answer) (any 2 × 1) / (2)
(2)
(2)
6.3 / No
Lucille Francis salary should have increased by R500 / (1)
(2)
6.4
6.5
6.6 / 6.4.1
6.4.2
6.4.3
6.5.1
6.5.2
6.6.1
6.6.2 / Occupational Health and Safety Act
No injuries must be reported within three days according to the Workmen's Compensation Act.
Yes
Bargaining Council for Domestic Workers
40 hours
Economic hardship
Political instability
Depleted our resources
Puts pressure on our welfare system
Increase in unemployment
Increase in crime
(any other reasonable answer)(any 3 × 1) / (1)
(3)
(2)
(2)
(2)
(2)
(3)
6.7 / 6.7.1 / Unskilled people
Economy not growing
Cheap imports from other countries
(any other reasonable answer)(any 2 × 1)
Increase in crime
Increase in government expenditure
Support unemployed
Loss of morale of people
(any other reasonable answer)(any 3 × 1) / (2)
(3)
[30]

QUESTION 7

7.1
7.2
7.3 / Internet banking
Cell phone banking
Going to the library and do research from books
Reading newspaper
Asking others(any 2 × 2)
Hijackers can crash your system
Personal information can lead in the wrong hands
Corruption can take place
(any other reasonable answer)(any 2 × 2) / (2)
(2)
(2)
7.4
7.5 / 7.4.1
7.4.2
7.5.1
7.5.2 / Internet is the cheapest way of reaching the masses in the shortest possible time.
Electricity supply in some areas don't exist
Cost of hardware and software
Not enough trained facilitators to assist people
(any other reasonable answer)(any 2 × 1)
E-mail is an electronic messaging system which allows commun-ication via the internet.
Fast
Cheap
Messages can be delivered as planned
Graphics can be send
(any other reasonable answer)(any 3 × 1) / (2)
(2)
(2)
(3)
7.6 / Cost effective
Information at fingertips
Accessible
Saves time
(any other reasonable answer)(any 3 × 1) / (3)
7.7 / 7.7.1
7.7.2 / 10% × R12 300 = R1 230
45% × 200 = 90
20% × 90 = 90 - 18 = 72 / (2)
(4)
7.8 / Income - expenses = profit/loss
75 600 - 45 000 = R30 600 (profit) / (2)
[30]

QUESTION 8

8.1 / Interest is the cost that we pay
for borrowing money from financial institutions / (4)
8.2 / 8.2.1 / I / = / P × R × T
= /
= / R510 / (3)
8.2.2 / =
=
= / P + I
R6 000 + 510
R6 510 / (2)
8.2.3 / = /
= /
= / R1 085 / (2)
8.3 / 8.3.1 / import duty / = / cost of the car × charge
= /
= / R1,3M / (3)
8.3.2 / landing costs / = / cost of the car × charge
= /
= / R100 000 / (2)
insurance / = / cost of the car × charge
= /
= / R40 000 / (2)
8.3.3 / VAT / = / (cost of the car + import duty) × 14%
= /
= / R462 000 / (4)
8.3.4 / final landed price / = / cost + import duty + landing costs +
insurance + VAT
= / R3 902 000 / (2)
8.4 / break-even turnover / = /
= /
= / R17 857 / (4)
8.5 / Critical path analysis is a way of planning how to do all parts of a job so that we can do it in the least amount of time / (2)
[30]
TOTAL: / 200