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        GRADE7                                                                                                                 March 2016

        50 minutes                                                                                                   70 MARKS

ECONOMIC MANAGEMENT SCIENCES

LEARNING OUTCOME 1:THE ECONOMIC CYCLE The learner will be able to demonstrate knowledge and understanding of the economic cycle within the context of ‘the economic problem’. ASSESSMENT STANDARDS: 9.1.1  Explains the different flows of money, factors of production, goods and services in the            economic cycle within the South African economy. LEARNING OUTCOME 2:  SUSTAINABLE GROWTH AND DEVELOPMENT The learner will be able to demonstrate an understanding of sustainable growth, reconstruction and development, and to reflect critically on related processes. ASSESSMENT STANDARDS: 7.2.4  Discusses the meaning of productivity. 8.2.4  Investigates and reports on how technology can improve productivity, economic           growth, living standards, etc. 9.2.4  Discusses productivity and its effects on economic prosperity growth and global           competition.

Name:  ______________________________________________________________

Grade 7________

Final Mark

Comment

Instructions:

1.       Please answer all the questions on the paper provided

2.       Remember to write your name on the top of the page.

3.       Remain calm and focused.

Question 1

Study the two pictures below and read the case study.

 

Benny and Benji

Paul was the owner of a big furniture company in Durban called BBP Furniture.  When he retired, he gave his two sons, Benji and Benny each a 50 % share of the company.  He fixed up the building and divided it into two workshops.  The two workshops were fully equipped so that the boys could work effectively and efficiently.  Benji and Benny started their own businesses called Benji Furniture and Benny Woodcraft. 

Both brothers inherited the goodwill of their father’s factory.  Clients believed that the sons’ businesses would be as good as their father’s business.  A year later, Benny Woodcraft was showing signs of serious mismanagement and failure.  Benny did not make any profit.  But Benji managed his business well.  He was well organised and very productive.   His business did very well and in the first year he earned large profits.

1.       Provide an explanation as to why Benny Woodcraft is so unproductive and Benji Furniture is so productive.                                                                                                  4                                                                                                                                                                                                                               

2.       Suggest ways that Benny could improve productivity in his business.     2x2                                                                                                                                                                         

3.       Explain in your own words why productivity is important for economic growth and development.                                                                                                                        2x2

4.       Discuss how education and training, good health and social services, can promote productivity in

businesses.                                                                                                   4                                                                                                                                                                                    

5.       Discuss how growth and development can be sustained through education and training.                                                                                                    2x2

6.       Provide definitions for the business terms below:

a.       Effective                                                                            2                                                                                                                                                                           

b.      Efficient                                                                              2                                                                                                                                                                                                                                                                                                                                                                                   [26]

Question 2

2.  Redraw the table below and fill in the missing information.          9                                                                                                                                                        

Factor of Production	Remuneration	Example
Land
	Interest
		Mpho opens a Tuck Shop from home.

                                                                                                                                                                                                                                [9]

Question 3

3.  Differentiate between subsistence and commercial farming.   (NB:  Make use of examples)                                   8

                                                                                                                                                                                                                                [8]

Question 4

Identify and describe FOUR role players in the economic cycle.                                                                                                   4 x3

                                                                                                                                                                                                                                [12]

Question 5

Cheslyn and Sanet want to see who is more productive when they make sandwiches for their friends for snack time.  Each loaf of bread can make 12 sandwiches.  Cheslyn works for 2 hours and makes 50 sandwiches, while Sanet works for 4 hours and makes 48 sandwiches.  Calculate which one of the two is more productive and explain why?                       10

                                                                                                                                                                                                                                [10]

Question 6

1.       Which country made history recently when they rescued miners from underground?   1                                

2.       What is the US Dollar/Rand exchange rate?                                                                   1                                                                                                            

3.       Who is the Minister of      Finance?                                                                                 1                                                                                                                                                       

4.       Who is Britain’s Prime minister?                                                                                     1                                                                                                                                                             

5.       Who is the ANC President?                                                                                              1                                                                                                                                                

                                                                                                                                                                                                                [5]