EKURHULENI NORTH DISTRICT

ECONOMIC AND MANAGEMENT SCIENCES

GRADE 7
2019 FINAL COMMON EXAM

SUBJECT : EMS

YEAR : 2019

TASK : FINAL EXAMINATION

TIME : 2 HOURS

MARKS : 150

TOPICS : ECONOMY; FINANCIAL LITERACY &

ENTREPRENEURSHIP
INSTRUCTIONS AND INFORMATION

1. This examination paper consists of Four sections and Four Questions.

2. Write neatly and legibly

3. All questions are COMPULSORY.

4. Read through the questions carefully and make sure that you allocate enough
time for each question.

5 Use of a calculator is permissible

CONTENTS AND TIME GUIDE

SECTION TOPIC MARKS DURATION

In minutes
Section A All topics
Question 1.1: Multiple choice 10 8
Question 1.2: Match type 10 8
Question 1.3: True or False 10 8
Question 1.4: Word bank 10 8

SECTION B (THE ECONOMY)

Question 2.1 Economy 13 10
Question 2.2 Economy 17 14

SECTION C
(FINANCIAL LITERACY)
Question 3.1 Financial literacy 30 24
Question 3.2 Statement of Net worth 10 8
Question 3.3 Budget 10 8

SECTION D
(ENTREPRENEURSHIP)
Question 4.1 Entrepreneurship 18 14
Question 4.2 Entrepreneurship 12 10
TOTAL 150 120 Min

Page 2 of 9
SECTION A
QUESTION 1: SHORT QUESTIONS
QUESTION 1.1: MULTIPLE-CHOICE QUESTION (10)

Various options are given as possible answers to each question. Choose the correct
answer and write only the letter (A - D) next to the question number (1.1.1 – 1.1.5)

1.1.1 One of the ways of solving the problems of barter trade in the olden days was
for trading countries to develop …….

A courier companies
B medium of exchange
C whattsup stokvel
D e-walllet (2)

1.1.2 A document that legally binds buyers to pay sellers a specific amount of money
within a specified time is called ……

A cheque
B buying note
C promissory note
D stock trading (2)

1.1.3 ……… is the money received by business after selling goods.

A Drawings
B Liability
C Capital
D Income (2)

1.1.4 Which one of the following is an example of a community need?

A Soft drink
B Watch
C Bicycle
D Library (2)

1.1.5 …….. is the money to start a business.

A Capital
B Finance
C Investment
D Expense (2)

Page 3 of 9
QUESTION 1.2: MATCH TYPE (10)
Match statements in Column A with corresponding answers in Column B. Write
only the letter of the correct answer next to the question number e.g 1.2.6 H
COLUMN A COLUMN B
1.2.1 How limited resources satisfies unlimited needs A. Entrepreneur
and wants.
1.2.2 A plan on how to spend expected income. B. Assets
1.2.3 People who use resources to make goods or C. Economic problem
provide services.
1.2.4 A person who invests, organize and runs a D. Statement of net worth
business to make profit.
1.2.5 Possessions of value in a business E. Producers
F. budget

QUESTION 1.3 TRUE OR FALSE

State whether the following statements are True or False. Write only the answer (10)
next to the question number.

1..3.1 Manufacturing businesses makes money from buying and selling finished (2)
goods.
1.3.2 Households play a role of producers and consumers in the economy. (2)

1.3.3 Money can be stored for a longer period and still have the same value. (2)

1.3.4 Expenses decreases the money invested in a business. (2)

1.3.5 Debtors are customers who bought goods from the business but have not paid (2)
for them.

QUESTION 1.4 WORD BANK

Select an appropriate word from those given in a box to complete the following
statements: (10)

self - sufficient; asset; consumers; modern; salary;

taxes; debt; Personal Identity Number

1.4.1 People who live in rural, agricultural traditional societies are …………. farmers. (2)

1.4.2 …….. are individuals and businesses that buy goods and services. (2)

1.4.3 The government cannot collect ………. from informal businesses. (2)

1.4.4 People with bank accounts are given a plastic card and a secret ………. (2)

1.4.5 …….. is an example of personal income. (2)

[40]

Page 4 of 9
SECTION B: QUESTION 2(ECONOMY) [30]
QUESTION 2.1:
(13)
Study the following pictures and answer questions that follow.

2.1.1 Mention one basic need that is shown in the picture. (2)
2.1.2 Do you think that the need mentioned above is fully satisfied? (3)
give reason for your answer.
2.1.3 Explain what the concept poverty mean. (2)
2.1.4 Explain how lack of education can contribute towards poverty. (2)
2.1.5 Mention one service that the government can do to improve the standard of (2)
living of the household as indicated in the above picture.
2.1.6 Give one challenge that people with good standard of living experience in urban (2)
cities.

QUESTION 2.2
(17)
2.2.1 Explain the following concepts:
a) Durable consumer goods (2)
b) Productivity
(2)
2.2.2 This logo about use of resources involves the concept of ‘Three Rs’. (2)
Mention any Two of the ‘R’s that it represents.

2.2.3 Briefly explain how households can be both producers and consumers at the
same time. (3)
2.2.4 Mention two functions/ roles of money. (4)
2.2.5 Give two advantages of electronic banking. (4)

Page 5 of 9
SECTION C: QUESTION 3 (FINANCIAL LITERACY) [50]

QUESTION 3.1:
3.1.1 Define the following concepts: (6)
a) current assets/ fixed assets
b) Debtor
c) Saving
3.1.2 Mention two examples of expenses in a business. (2)
3.1.3 Give two services offered by commercial banks. (4)
3.1.4 Explain why it is important for people to save money. (2)
3.1.5 Mention two documents that are required in order to open a savings account at
a bank. (4)
3.1.6 Mention one advantage of investing in a Stokvel or community saving scheme. (2)
3.1.7 Explain the concept ‘creditor’. (2)
3.1.8 Mention one method in which a person can invest. (2)
3.1.9 Mention three types of personal income. (3)
3.1.10 If R 25 000 is invested in a bank at an interest rate of 10% per year, calculate (3)
interest that would be received at the end of the first year.
(30)

QUESTION 3.2: STATEMENT OF NET WORTH

Use the following information to complete the statement of net worth for Stanley (10)
Petersen on 31 August 2019.

Look at Stanley’s personal records on 31 August 2019. These items belong to

him, they are his assets and liabilities:
• a CD player worth R400
• ten CDs worth R70 each
• a bicycle worth R800
• R600 in her savings account in the bank
• Clothes and shoes worth R2 800

• He badly wanted a PlayStation and asked his parents to buy him one. His
parents agreed on condition that he would pay them back half of the total
amount. They bought a second-hand one for R1500 on 10 August. He
promised to pay them back in monthly installments of R50. So far, he has
paid them only R50 on 25 August and still owes them the remaining
balance.

Page 6 of 9
QUESTION 3.3: BUDGET (10)
Use the following information to draw up the family budget of Khumalo family for
the month of May 2019

Item Amount

Salary: Father R24 000

House payment R3 500

Water and electricity R1 600

School Fees R2 200

Groceries R4 500

Petrol and transport R2 500

Medical and emergencies R2 000

Interest from investment: Mother R3 000

Cell phone and entertainment R1 000

Rent from outside room: Student R1 500

Page 7 of 9
SECTION D: QUESTION 4 - ENTREPRENEURSHIP (30)
QUESTION 4.1:
Read the following case study and answer questions that follows. (18)

Soweto Outdoor Adventures

Kgomotso Pooe
Soweto Outdoor Adventures, situated next to the iconic Orlando Towers, offers tours of
Soweto with a difference. The company specialises in adventure tourism and leads quad
bike tours through the streets of Soweto, which are an exciting and unique way to experience
this historic township.

Founder and Director of Soweto Outdoor Adventures is Kgomotso Pooe. During his 10year
tenure, township entrepreneur guru Kgomotso Pooe had a vision of bringing quad bikes to
Soweto and turned a patch of grass at a derelict power station into what is today just one
part of his growing tourism empire. In May 2013, Pooe founded ‘SoWeToo Hop On-Hop Off
Tours’, along with City Sightseeing Johannesburg. The 38-Year-Old Tourism and
entertainment chief whip has extensive knowledge of the tourism scope as a former flight
attendant, aspiring pilot and advertising executive sums up that he wanted to be a serious
player in South Africa’s tourism industry, for the sheer experience he needed a base in
Cape Town.
In 2014 Tebogo Pooe decided to expand his business to Cape Town in the townships of
Langa and Gugulethu. He named his business ‘LaGuGu Hop on-Hop Off Township Tours’
His recent activities include introducing more adventures in a thriving township, where he
introduced paddle boats on his thrill list of adventure. As for his future dreams, tourists might
be seen zipping around Cape Town townships in quad bikes if Pooe has his way.

Awards & Credentials he scooped whilst in pursuit of the tourism journey

• 2016 Youth Entrepreneur at Township Entrepreneur Awards
• 2016 Township Tourism at Township Entrepreneur Awards
• 2017 Vision 2030 SMME Award

Kgomotso is a frequent speaker and voice for SMME’s in the tourism space and serves the
community by creating jobs and supporting community businesses around his businesses.

Page 8 of 9
4.1.1 What is the name of the business in the above case study? (1)
4.1.2 What service does the above-mentioned business provide? (2)
4.1.3 Which other business did Kgomotso Pooe established and in which city? (2)

4.1.4 Mention one achievement of Kgomotso Pooe as an entrepreneur. (2)

4.1.5 Is Soweto Outdoor Adventures a formal or informal business. (2)
4.1.6 Give two characteristics of a formal business. (4)
4.1.7 What does the abbreviation SWOT stand for? (1)
4.1.8 Mention one strength of Soweto Outdoor adventures business. (2)
4.1.9 What does Kgomotso do as a way of giving back to the community? (2)

QUESTION 4.2: (12)

4.2.1 Mention two characteristics that a person needs to be a successful (2)

entrepreneur.
4.2.2 Explain what ‘variable costs’ are. (2)
4.2.3 Give two types of materials that can be recycled. (4)
4.2.4 Mention two examples of advertising media. (2)
4.2.5 Mention one natural disaster and explain how it can affect businesses (2)

GRAND TOTAL [150]

Page 9 of 9