HERZLIA MIDDLE SCHOOL GRADE 7 ECONOMIC & MANAGEMENT SCIENCES EXAMINATION 24 NOVEMBER TIME: 1 hour MARKS: 115
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1 NAME TEACHER S COMMENT TEACHER CLASS MARK PERCENTAGE HERZLIA MIDDLE SCHOOL GRADE 7 ECONOMIC & MANAGEMENT SCIENCES EXAMINATION 24 NOVEMBER 2015 TIME: 1 hour MARKS: 115 This paper consists of 15 pages. Answer all questions on the question paper. You may use a calculator show all your workings. You may use pen or pencil.
2 SECTION A QUESTION ONE (5) Multiple Choice (write only the correct letter in the space provided) 1.1 The following is an expense for a business: Answer A B C D Equipment Stationery Capital Rent Income 1.2 A small business employs between: A B C D employees 3 employees 5 50 employees About 25 employees 1.3 The definition of profit is: A B C D (Income + Capital) minus expenses = profit Income minus expenses = profit Income and Expenses = profit Income minus (expenses + assets) = profit 1.4 The money an entrepreneur invests in a business is: A B C D An income for the business. An Asset for the business Capital (Owner s equity) Drawings 1.5 Entrepreneurs are needed in South Africa to: A B C D Create jobs Provide goods and services Grow the economy All of the above 2
3 QUESTION TWO (10) Match the statement in column B with the word or phrase in column A. Write only the letter from column B next to the relevant number from column A in the answer column. Column A Column B Your Answer: 2.1 Urban Area A 2.2 Rural Area B 2.3 Technology C 2.4 Savings D 2.5 Investment E Portion of income that is not spent. Extraction of natural resources. Area with high population density. Tool used to promote your business. An item that is consumed by the business. 2.6 Productivity F Providing services and retail Tertiary sector G Area with poor infrastructure Primary sector H 2.9 Expense I 2.10 Advertising J How efficiently resources are used to produce goods. Money spent on something that will hopefully grow in value. Tools and equipment developed using scientific method QUESTION THREE TRUE/FALSE: write only T or F in the column provided. (5) 3.1 Milk is an unusual product as it does not exist in the primary sector. It progresses straight from the secondary to the tertiary sector. T/F 3.2 If an amount of R is invested in a fixed deposit at 7 %. After a year the investment will be worth R Fixed deposits are risky investments and entrepreneurs usually prefer starting a new business as it is less risk. 3.4 A good reason to save money is so that you eventually have enough money to invest. 3.5 Technology has many advantages, but it can negatively affect economic growth as it can increase unemployment. 3
4 QUESTION FOUR (5) Define the following terms: 4.1 Target Market (1) 4.2 Market research (1) 4.3 Economic inequality (1) 4.4 Infrastructure (1) 4.5 Sustainability (1) 4
5 SECTION B QUESTION FIVE 5.1 Identify FOUR characteristics usually associated with successful entrepreneurs: Characteristic (4) 5.2 Identify and briefly explain TWO advantages and ONE disadvantage of a being an entrepreneur Advantage 1: (2) Advantage 2: (2) Disadvantage 1: (2) 5.3 Explain why it is important to develop entrepreneurship in South Africa. (4) (14) 5
6 5.4 Read the article below and complete the SWOT Analysis below. Ocean Basket was launched with R800 and a dream Fats Lazarides founded Ocean Basket in 1995 with R800. Today the nation-wide brand has system-wide sales of over R1 billion. Ocean Basket was launched from a 118 m2 store in Menlyn Park with some crazy restrictions, because the centre management had assured their current clients there would be no more restaurants in the centre. They could only serve five proteins and two starches. They weren t allowed to serve salads, desserts or coffee, and only one red and one white wine by the glass. Doors had to be closed by 7pm and they had stiff competition from John Dory s, another specialist serving fish. For every restriction, Fats Lazarides found an advantage. We focused on the lunch-time trade. Meals were cooked and served quickly. Bar stools set up against the wall saved space and let single shoppers eat without feeling lonely. Soon, families would deliberately eat an early dinner before the store closed. An entire family of four could eat for R60 because we let them bring their own salads, wine and even desserts. Today there are over 189 stores in 11 countries around the globe. From Dubai to Durban, Nelspruit to Nigeria, you ll find people who share a love for our delicious seafood, the irresistible creamy lemon sauce, our generosity, commitment to every day value for money and our love of seafood sharing. 6
7 5.4.1 What does the acronym SWOT stand for? (Write your answers on the table below) Use SWOT to analyse the above article. Write your answers on the table below SWOT Analysis Attention Own answer as long as it is relevant Interest Desire Action Own answer as long as it is relevant Own answer as long as it is relevant Own answer as long as it is relevant. (8) 7
8 5.5 Complete the following Market Day Income Statement of Junk Food Traders: (Answer on the income statement) INCOME 25 hot R7.50 each R2 each R5 each R5 each 75 TOTAL INCOME EXPENSES 25 R5.50 each R3.50 each 35 5 R2 each 10 Advertising 5 15 R4.50 each TOTAL EXPENSES PROFIT/LOSS (6) 5.6 Answer the following questions based on the above Income Statement How much profit was made on the sale of each hot dog? (2) Identify which product was not profitable and provide a reason/calculation for your answer. (3) (11) 8
9 QUESTION SIX Analyse the advertisement below using the method covered in class: 6.1 What does the acronym AIDA stand for? Write your answers on the table below. 6.2 Use AIDA to analyse the above advert. Write your answers on the table below. 6.1 AIDA 6.2 Analysis Attention Own answer as long as it is relevant Interest Own answer as long as it is relevant Desire Own answer as long as it is relevant Action Own answer as long as it is relevant. (8) 9
10 QUESTION SEVEN 7.1 Write a paragraph in which you identify the Factors of Production in a hamburger restaurant. Describe how the four factors of production relate to each other. (6) 7.2 Draw and label a flow diagram of a 1litre bottle of milk showing the primary, secondary and tertiary stages of production. (6) 7.3 Technology plays an integral role in the Production Process. Complete the table below ADVANTAGES of technology in the production process. Attention DISADVANTAGES of technology in the production process Own answer as long as it is relevant Own answer as long as it is relevant. (4) 10
11 7.4 CIRCLE the correct answer. a) Thembi uses old greeting cards, felt, glitter and other decorations to decorate the covers of the notebooks she sells. What do we call the old greeting cards, felt, glitter and other decorations that she uses in her production process? (i) natural resources (ii) entrepreneurship (iii) labour (iv) capital b) When Thembi employs her brother to help her cut designs from old greeting cards, she is increasing her: (i) labour (ii) productivity (iii) Profit (iv) (i), (ii) and (iii) c) Tshepo finds out how productivity works and he realises that the more designs he can produce in an hour, the more money he makes. However, the faster he works, the more untidy his cut-outs are and Thembi has to throw away some of the designs he has cut out. Tshepo has worked faster, but he has compromised: (i) Quality (ii) time (iii) labour (iv) profit d) In economic terms you would call someone who produces less now than they did in a corresponding time period before: (i) Uncooperative (ii) lazy (iii) unproductive (iv) Productive e) When you apply the factors of production productively, you are able to increase your: (i) Expenses (ii) profitability (iii) labour (iv) Costs f) The following is an example of using profits unproductively: (i) Building additional storage space urgently needed (ii) Buying new equipment used in production (iii) Buying a new Mercedes for the manager (iv) Hiring a skilled artisan (6) (22) 11
12 QUESTION EIGHT Based on the information below, South Africa s growth rate for the second quarter of the year 2015 has contracted to -1.3% as shown by a decline in the primary and secondary sector. 8.1 Define the term economic growth. (2) 8.2 What negative impact will a decline in South Africa s economy affect its citizens? Identify FOUR ways. (4) 8.3 Identify ONE factor that has contributed to a decline in the mining and agriculture sectors. (2) 12
13 8.4 Study the information below and answer the questions that follow. 13
14 8.4.1 South Africa relies on tourism to grow its economy. Identify FOUR additional strategies to stimulate economic growth. (4) Identify TWO other industries in South Africa that have been negatively affected by new visa regulations. (2) (14) 14
15 QUESTION NINE SAVINGS 9.1 Identify FOUR reasons why people save money. (4) 9.2 The above advertisement is for a Home Loan offered by FNB. List FOUR other services that are offered by banks. (4) 9.3 Complete the following calculation. (3) If you invest R4 200 for 7 months at 5% p.a., how much interest will you earn? Show all workings. 9.4 Define the term investment and provide ONE example. (2) (13) 15
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