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8246 NSSCAS ECONOMICS SP2 May 2020 Final

This document consists of instructions and information for candidates taking the Namibia Senior Secondary Certificate Economics Advanced Subsidiary Level exam. It outlines the following: - The exam is 1 hour and 45 minutes long and consists of 50 total marks. - Section A is compulsory and contains multiple choice and structured questions. Section B contains four essay questions and candidates must choose one. - Calculators are permitted but must be non-programmable. Answers should be written in the provided answer book.

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Peter Kudumo
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842 views6 pages

8246 NSSCAS ECONOMICS SP2 May 2020 Final

This document consists of instructions and information for candidates taking the Namibia Senior Secondary Certificate Economics Advanced Subsidiary Level exam. It outlines the following: - The exam is 1 hour and 45 minutes long and consists of 50 total marks. - Section A is compulsory and contains multiple choice and structured questions. Section B contains four essay questions and candidates must choose one. - Calculators are permitted but must be non-programmable. Answers should be written in the provided answer book.

Uploaded by

Peter Kudumo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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NAMIBIA SENIOR SECONDARY CERTIFICATE

ECONOMICS ADVANCED SUBSIDIARY LEVEL 8246/2


PAPER 2 1 hour 45 minutes
Marks 50 Specimen Paper

Additional Materials: Answer Book


Non-programmable calculator

INSTRUCTIONS AND INFORMATION TO CANDIDATES

 • Write
Theyour answers
number in the separate
of marks Answer
is given Book provided.
in brackets [ ] at the end of each question or part
question.
 Write your Centre Number, Candidate Number and Name on the answer book.

 Write in dark blue or black pen.

 You may use a soft pencil for any diagrams, graphs and rough working.

 Do not use correction fluid.


Republic
 Section A is compulsory of
 Choose one question from Section B.

 The number of marks is given in brackets [ ] at the end of each question or part question.

 You may use a non-programmable calculator.


Namibia

This document consists of 4 printed pages and 2 blank pages.

[Turn over
This document consists of 3 printed pages and 1 blank page.
Republic of Namibia
MINISTRY OF EDUCATION, ARTS AND CULTURE

8246/2/SP
SECTION A

This question is compulsory.

1 The gross domestic product (GDP) data released in June 2017 by Stats SA
shows that the South African economy declined by 0.7% in the first quarter of
2017, putting the country into a technical recession.

While economic growth has slowed greatly over the past few years, the country
had managed to escape the dreaded ‘official’ recession tag.

Growth in GDP (%) in South Africa

Figure 1

According to Stats SA the largest negative contributor to growth in GDP in the


first quarter was the trade, catering and accommodation industry, which
decreased by 5,9% and contributed -0,8 of a percentage point to GDP growth.

The manufacturing industry contracted by 3,7% and contributed -0,5 of a


percentage point to GDP growth.

The largest contributor to the decrease was the petroleum, chemical products,
rubber and plastic products division.

In contrast the mining and quarrying industry increased by 12,8%, and


contributed 0,9 of a percentage point to GDP growth.

8246/2/SP
The agriculture, forestry and fishing industry rebounded in the first quarter of
2017 on the back of eight consecutive quarters of contraction. The industry’s
increase of 22,2% in the first quarter of 2017 was mainly as a result of
increases in the production of field crops and horticultural products.

One of the key indicators of the declining economy is household spending,


which showed a major decline in the first quarter of 2017 and a second key
indicator is a decline in private sector capital investment.

Despite the quarterly decline, it is expected that GDP growth will rebound to
0,9% in the second quarter of the year, due to positive data released over the
past few months.

The last time South Africa entered a recession was 2008-9, when it had three
consecutive quarters of negative growth.

(a) Define Gross Domestic Product (GDP). [2]

(b) Using information in the extract outline the term technical recession. [4]

(c) Explain how monetary policy might be used to stimulate private sector
capital investment. [6]

(d) Use AD/AS analysis and evaluate the short-run effect of a decrease in
spending on the price level and consider whether this will be of benefit [8]
to households.

(e) Discuss the extent to which the fiscal policy of government production
subsidies might be effective in increasing real GDP. [10]

[30]

8246/2/SP
4

SECTION B

Candidates must answer one question from this section.

2 (a) Explain the price elasticity of supply and analyse whether the supply of
housing is likely to be price elastic or price inelastic. [8]
(b) Use your knowledge of income elasticity of demand to evaluate how an
increase in income might influence the demand for houses of high and
lower income groups. [12]
[20]

3 (a) Analyse whether a surplus on the current account of the balance of


payments is always desirable. [8]
(b) Evaluate the extent to which an expansionary monetary policy aimed at
increasing economic growth may conflict with the objective of balance of
payments stability. [12]
[20]

4 (a) Analyse how the regional development policy of the government can be
used to discourage urban migration. [8]
(b) Evaluate the extent to which the economic effects of increasing urban
migration are positive. [12]
[20]

8246/2/SP
5

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8246/2/SP
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8246/2/SP

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