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EXAMINATIONS COUNCIL OF SWAZILAND
in collaboration with
UNIVERSITY OF CAMBRIDGE LOCAL EXAMINATIONS SYNDICATE
Swaziland General Certificate of Secondary Education
6899/02
ECONOMICS
Paper 2 Structured Questions
October/November 2012
2 hours
Additional Materials:
Answer Booklet/Paper
* 3 2 2 5 7 7 8 1 2 7 *
READ THESE INSTRUCTIONS FIRST
If you have been given an Answer Booklet, follow the instructions on the front cover of the Booklet.
Write your Centre number, candidate number and name on all the work you hand in.
Write in dark blue or black pen.
You may use a soft pencil for any diagrams, graphs or rough working.
Do not use staples, paper clips, highlighters, glue or correction fluid.
Answer any four questions.
You may use a calculator.
At the end of the examination, fasten all your work securely together.
The number of marks is given in brackets [ ] at the end of each question or part question.
This document consists of 3 printed pages and 1 blank page.
DC (CW) 52746/1
© ECOS 2012
[Turn over
2
Answer any four questions.
1
(a) Explain the following terms:
(i)
private sector
[2]
(ii)
public sector
[2]
(b) State two types of business organisation found in the private sector.
[2]
(c) Using a demand and supply diagram, discuss what happens when a product becomes more
popular and its cost of production falls.
[7]
(d) Do you think the allocation of resources through the public sector alone would be beneficial to
society?
[7]
2
3
High inflation and high unemployment are often concerns of the government. Certain government
policies are put in place to curb these concerns.
(a) What is meant by full employment?
[2]
(b) How does self-employment differ from being an employee?
[4]
(c) Explain how inflation is measured.
[7]
(d) Should a government be concerned about high unemployment?
[7]
(a) Ekhaya (Ltd) is a food processing company in Swaziland and is planning to be listed on the
Swaziland Stock Exchange. At the same time the trade union in the company is unhappy
about proposed changes to working conditions.
Define the following terms:
(i)
trade union
[2]
(ii)
stock exchange
[2]
(iii)
shares
[2]
(b) Why would workers join a trade union?
[4]
(c) How can a company benefit by being listed on a stock exchange?
[3]
(d) Suppose Ekhaya (Ltd) is considering expanding its business to become a multinational
company. Advise the company on advantages and disadvantages of being a multinational
company.
[7]
© ECOS 2012
6899/02/O/N/12
3
4
(a) What determines a firm’s choice of the factors of production?
[4]
(b) Explain how a person’s earnings are likely to change during their working life.
[3]
(c) Describe the factors that affect an individual’s choice of occupation and show how the idea of
opportunity cost might be relevant to that choice.
[6]
(d) The central bank has decided to reduce interest rates in a country. Is it wise for a country to
reduce its interest rates?
[7]
5
(a) Define specialisation at national level.
[2]
(b) Explain what is meant by social costs and social benefits.
[4]
(c) Why do countries engage in international trade?
[7]
(d) International trade sometimes involves using natural resources by selling them to other
countries. Do you think it is wise for a country to exploit its natural resources rather than to
conserve them?
[7]
6
(a) State three features of a developed country.
[3]
(b) Describe what can be done in a developing economy to change its population size and
structure to that of a developed economy.
[3]
(c) Migration from rural to urban areas is common in developing countries.
(i)
Explain why people migrate from rural to urban areas.
[3]
(ii)
Discuss the effects this has.
[4]
(d) The working population in Swaziland is greatly affected by the HIV/AIDS pandemic. Do you
think government spending on curbing the HIV/AIDS pandemic is justified?
[7]
© ECOS 2012
6899/02/O/N/12
4
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© ECOS 2012
6899/02/O/N/12