EXAMINATION

                            Victory Primary School

LEARNING AREA          : ECONOMIC AND MANAGEMENT SCIENCE

GRADE                         :  7

FORM OF ASSESSMENT: EXAMINATION

DATE                           : MARCH 2016

MARKS                        :  100

DURATION                  : 2 hours

TASK                            : 1

TERM                          : 3

MODERATOR              : MS MBALI

EXAMINER                   : MS NHLAPO I.G

___________________________________________________________________________

INSTRUCTIONS TO LEARNERS

·         ANSWER ALL QUESTIONS

·         WRITE NEATLY AND LEGIBLY

·         USE A CALCULATOR

___________________________________________________________________________

NAME AND SURNAME:

_________________________________________________________________________________

 QUESTION 1

Circle the letter of the correct answer:

1. The money needed to start a new business is                                                                                (1)

A.      Raw materials

B.      Start-up capital

C.      Resources

D.      Fixed capital

2. An example of fixed capital is                                                                                                (1)

A.      Stock

B.      Building

C.      Credit transactions

D.      Loss

3. Items owned by the business that have monetary value

                                                                                                                                                                (1)

A.      Liabilities

B.      Capital

C.      Assets

D.      Bank

4. The money invested by the owners in the business is called                                   (1)

A.      Fixed capital

B.      Share capital

C.      Capital

D.      Start-up capital

5. ________________________ is the source of money (funds)                                            (1)

A.      Financial capital

B.      Capital

C.      Share capital

D.      Investment

6. _______________________ is known as operating capital                                   (1)

A.      Withdraw & deposit

B.      Working capital

C.      Bank account

D.      Creditors

7. A person or institution that owes a business a is called a                                                           (1)

A.      Owner

B.      Customer

C.      Debtor

D.      Creditor

8. When the business owes a person or another institution we refer it as                              (1)

A.      Creditors

B.      Needs

C.      Liabilities

D.      Wants

9. When you prepare how you are going to use your money or income, we say you are      (1)

A.      Planning

B.      Skilled

C.      Budgeting

D.      Responsible

10. _____________________ is a free advertising method

                                                                                                                                                                (1)

A.      Radio advertising

B.      Newspaper

C.      Television

D.      Word of mouth                                                                                                                 [1x10= 10]

E CORRECT ALPHABET ON THE SPACE PROVIDED

COLUMN A	COLUMN B	ANSWER
1. All items  owned by the business that have monetary value	A.  Liabilities	1.
2. All monies owed by the business to other people or business	B. Capital	2.
3. All the money, goods and property a business can use to make an income through activities of the business	C. Creditors	3.
4. A person who owes  a business is called a	D. Assets	4.
5. A person to whom the business owes	E. Debtors	5.
6. Where people come together to buy and sell goods	F. Currency	6.
7. Is a piece of paper which a person write to pay other people’s money	G. Trade	7.
8. Type on money used in that country	H. Marketing	8.
9. Buying and selling goods	I. Bartering	9.
10. When people exchange goods without using money	J. Promissory note	10.

                                                                                                                                                                                                                                                                                                          [1x10 = 10]

QUESTION 2

1.Fill in the missing words by using the words with words given below:

Withdraw and Deposit	Traditional society	Resources
Fixed capital	Secondary needs	Budget

a) Things that we use to help us do something, in case to satisfy our needs and wants   ____________________________

b) ____________________________________ are goods used to produce other goods that satisfy        our needs and wants.

c) The quality of your life and the things that make your survival meaningful are ________________________________________

d) __________________________________________ money at the ATM.

e) __________________________________________ people were reliant on the environment and area where they were living.

                                                                                                                                                                                                                                                                                                                          (5)

 2. State whether the following statement are TRUE or FALSE

a) Unemployment means not having a job.  ______________________________

b) Money is the medium of exchange. ___________________________________

c) Banks generate income through source documents. ___________________________

d) Variable income includes amount that is received regularly such as salary or wages. ______________________

e) Transactions are recorded in journals and ledgers. ________________________________

f) You can earn interest on savings or investment. ________________________________

g) The currency that we use in SA is dollars. _______________________________________

h) Bartering is when you buy and sell things using money. _________________________

i) Basic needs of individual are air, water and food. ___________________________

j) Advertising is when your business is making profit. ___________________________             (10)                                                                                                                                                                       

QUESTION 3

1. Explain the following terms:

1. Entrepreneur                                                                                                                                                                 (2)     ____________________________________________________________________________________________________________________________________________________________________ 

2. Needs                                                                                                                                                                                (2) ____________________________________________________________________________________________________________________________________________________________________

3. Wants                                                                                                                                                                                                                                                                                                (2)   __________________________________________________________________________________________________________________________________________________________________

4. Expenses                                                                                                                                                                                                                                                                                             (2)      __________________________________________________________________________________________________________________________________________________________________

5. Specialise                                                                                                                                                                                                                                                                                              (2)  __________________________________________________________________________________________________________________________________________________________________

2. List the TWO types of transactions.                                                                                                                                                                                                                                                        (2)  

  a) ____________________________________________

  b) ____________________________________________                                                                    

3. List the TWO types of Assets                                                                                                                                    (2)

a) _____________________________________________

b) _____________________________________________

4. List the TWO types of Liabilities                                                                                                                               (2)

a) __________________________________________

b) __________________________________________

5. Name the four factors of production that the entrepreneur need to combine in order to make profit.

 a) _____________________________________   b) _____________________________________

 c) _____________________________________   d) ____________________________________                                                                                                                                                                                                 (4)

6. Give two examples of manufactured goods, grown goods and mined goods.

Manufactured goods	Grown goods	Mined goods
a)	a)	a)
b)	b)	b)

                                                                                                                                                                                                                                                                                                                     (6)

7. What does SWOT stands for?

S: _______________________________________

W: ______________________________________

O: ________________________________________

T: _________________________________________                                                                                                                                                                                                                             (4)

6. Write the THREE skills of an entrepreneur

a) ______________________________________________________________________________

 b)_______________________________________________________________________________

c) ______________________________________________________________________________

                                                                                                                                                                                                                                                                                                                      (3)

8.  List the FOUR ways of Advertising media one can use to advertise:

a) _______________________________________________

b) _____________________________________________

c) _______________________________________________

d) _______________________________________________                                                                                                                                                                                                                 (4)

9. List the THREE  examples that can be recycled

a) ___________________________________________________

b) ___________________________________________________

c) ____________________________________________________                                       (3)

10. List  TWO examples of Basic needs.

a) _____________________________________________

b) ______________________________________________                                                                                                                                                                                                                     (2)

11. List THREE examples of wants.

a) ___________________________________________

b) ___________________________________________

c) ___________________________________________                                                                                                                                                                                                                        (3)

                                                                                                                                                                                                                                                                                                          [45]

 QUESTION 3

1. Read the case study below about an entrepreneur who makes a profit through producing.

-Answer the questions about Asanda   and her home bakery.

a) An important characteristic of production is specialising, In what does Asanda specialise and why?

____________________________________________________________________________________________________________________________________________________________________

b) Asanda cuts costs by not simply throwing away old bread that she did not sell, what does she do?

____________________________________________________________________________________________________________________________________________________________________

c) Explain what the word ‘SURPLUS’ and how Asanda uses it to make a profit.

______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

                                                                                                                                                                                          (5)

2. Read the information about Happy Taxis and then do the calculations and calculate Happy’s Business expenses

Happy owns a business called Happy Taxis. He owns five taxis and employs five taxi drivers. Each driver receives a fixed salary of R3000. Happy Taxis had the following costs during January:

·         Salaries                                 = R 15 000

·         Petrol                                    = R30 000

·         Rent paid for garages       = R 5000

·         Interest on loans              = R 1000

·         Repair to taxis                   = R 2000

·         Cell phone account         = R 800

·         General administration costs = R 200

a    Calculate the fixed costs (FC) for January.

______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

b      Calculate the variable costs (VC) for January

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

c       Calculate the total costs (TC) for the month using the given formula:

FC = VC = TC

______________________________________________________________________________________________________________________________________________________

                                                                                                                                                                                                                                                                                                                  (15)

                                                                                                                                                                                

                                                                TOTAL = 100….GOOD LUCK!