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Grade 9 EMS Exam
November 2013
Time: 90 Minutes Marks: 100
INSTRUCTIONS
1This exam consist of two papers
Paper 1:
Section A: Short answer questions 25 marks
Section B: Direct questions60 marks
Paper 2: (laptop practical)
Simventure15 marks
2Paper 1 to be handed in before commencing with Paper 2.
3Write all your answers on the ANSWER SHEET provided.
4Read each question carefully.
5A neat and systematic presentation of facts is required.
6Answer in full sentences.
7Use only a black or blue pen (graphs/diagrams may be done in pencil).
8Non – programmable pocket calculators may be used.
Grade 9 EMS Exam (Paper 1)
November 2013
Time: 60 Minutes Marks: 85
SECTION A: Short answer questions.
QUESTION 1
1.1For each question there are four possible answers, A, B, C and D. Choose the one you consider correct and record your choice in the appropriate space on the ANSWER SHEET provided.
1.1.1In the market for bicycles, which of the following variables would decrease demand, ceteris paribus?
AAn increase in the price of bicycles
BA decrease in the price of bicycles
CA fall in the income of consumers
DAn increase in the price of motorbikes, a substitute
1.1.2If there is a successful advertising campaign promoting the health benefits of drinking milk, then, ceteris paribus
Athe demand for milk will increase.
Bthe demand for milk will decrease.
Cthe supply of milk will increase.
Dthe demand and supply of milk will increase.
1.1.3
If the price of peanuts is fixed at R12.00 per kg then
Athere will be a surplus of 80 loaves.
Bthere will be a shortage of 50 loaves.
Cthe quantity of brown bread supplied will fall to zero.
Dthere will be a shortage of 80 loaves.
1.1.4The MDG were created to realize the aspirations of the Millenium Declaration. These goals address the root causes of …
Aunemployment and poverty.
Bpoverty and inequality.
Cwealth distribution and inequality.
Dunemployment and inequality.
1.1.5If there is a technological breakthrough in the beer manufacturing process then, ceteris paribus
Athe supply of beer will increase.
Bthe supply of beer will decrease.
Cthe demand for beer will increase.
Dthere will be no effect on the supply or demand of beer.
1.1.6Which of the following is not a determinant of the amount producers plan to sell?
Athe price of the product
Bweather conditions
Cthe price of factors of production
Dthe number of competitors in the market
1.1.7Which of the following factors will cause the share price to fall
Awhen you have more sellers than buyers
Bwhen the company declares dividends
Cif a company is very profitable
Dwhen the company launches a new product range
1.1.8Which of the following is not a right assumed by shareholders
Athe right to a dividend once declared
Bthe right to sell shares on JSE at a profit
Cthe right to attend meetings and vote
Dthe right to receive company information
1.1.9Which of the following strategies can be used to make your business more profitable?
Adecrease your sales
Bincrease your fixed cost
Cincrease your spending on wages
Dreduce your variable cost
1.1.10Market research refers to
Afeedback from current and potential customers
Bidentifying your target market
Cinvestigating other businesses (competitors) in the market
Ddeveloping your product
(10 X 2 = 20)
1.2Choose the correct answer between brackets and write next to the number (1.2.1 – 1.2.5) on your ANSWER SHEET.
1.2.1Unlike wants, the demand for a good or service has to be backed up by (buying power / consumer confidence).
1.2.2(Shares / Dividends) are profit distributed by the board of directors to investors.
1.2.3The (volume / market cap) refer to the number of shares traded on any given day.
1.2.4Goal 1 of the MDG specifically targets extreme poverty and (hunger / unemployment)
1.2.5.The MDGs are time-bound: there is a clearly defined date (2015 / 2020) by which they should be achieved. (5 x 1 = 5)
SECTION A: 25 MARKS
SECTION B: Data response and direct questions
QUESTION 2:DEMAND & SUPPLY (25 marks)
2.1Determine which of the following statements are true or false. Write only True or False next to the number (2.1.1 – 2.1.5) on your ANSWER SHEET.
2.1.1Income also influences the demand for consumer goods.
2.1.2Equilibrium implies that market forces are in harmony with each other.
2.1.3Prices can be determined only if the demand and the supply of products are known.
2.1.4Prices reflect the terms under which buyers and sellers are willing to exchange goods.
2.1.5Without consumer confidence there can be no demand. (5 x 1 = 5)
2.2Use the information provided to answer the questions that follow:
Price(Rand per unit) / Quantity demanded
(Units per month) / Quantity supplied
(Units per month)
400 / 10 000 / 3 000
420 / 9 000 / 4 000
440 / 7 500 / 5 000
460 / 6 000 / 6 000
480 / 5 000 / 7 000
500 / 4 000 / 8 000
520 / 3 250 / 9 000
540 / 2 500 / 10 000
560 / 1 500 / 12 000
2.2.1What is the equilibrium price?(2)
2.2.2Calculate the shortage in the market should the firm only be able to charge R420 per unit. (2)
2.2.3Why would the firm not be able to charge R520 per unit?(2)
2.2.4Explain how the substitution effect influences consumer behaviour when the market price increase. (4)
2.2.5Draw a hypothetical demand and supply curve (ensure that you have drawn them with the correct slopes i.e. positive or negative). Label your axes. Show market equilibrium on your diagram. Show on your diagram a situation of a market surplus (you can repeat the exercise for a market shortage too). What will tend to happen to the price if there is a market surplus (and alternatively a market shortage)? Explain the process of adjustment towards equilibrium. (10)
QUESTION3: JSE (20 Marks)
3.1Determine which of the following statements are true or false. Write only True or False next to the number (3.1.1 – 3.1.5) on your ANSWER SHEET.
3.1.1Discretionary services imply that you, the investor, make all the decisions after the stockbroker has given the necessary advice.
3.1.2To buy or sell shares on JSE you need to open a brokerage account with a stockbroker.
3.1.3Shareholders have the right to vote at the Annual General Meeting only if stipulated in the Articles of Association.
3.1.4Higher risk securities include: shares, government bonds and cash in the bank.
3.1.5Steer away from borrowing money to invest, especially if you are not sure whether the profit you will be making on the investment will be able to repay your interest on the loan and your loan over time. (5 marks)
3.2Use the information from MixTelematics and answer the questions that follow:
Market cap / 4,286,750,625Volume / 26,900
52-week low / 280 (2012/12/13)
52-week-high / 650 (2013/08/27)
Issued shares / 772,387,500
Authorised shares / 1,000,000,000
Return on Equity / 14.80
Date of last dividend / 2013/06/10
Last dividend / 6.00
P/E ratio / 27.61
BOCA RATON, Fla. (August 12, 2013) – MiX Telematics Limited, (NYSE: MIXT), a leading global provider of fleet and mobile asset management solutions delivered as SaaS (Software as a Service) to customers in 112 countries, has commenced trading of its American Depositary Shares (“ADSs”), each representing 25 ordinary shares, on the New York Stock Exchange. The ADS began trading on August 9, 2013 under the symbol “MIXT.”
3.2.1Given the current share price of 570c per share calculate how much capital the company can still raise by issuing more ordinary shares. (2)
3.2.2On the 27th of August Mix Telematics shares reached its 52 week high, peaking at 650c per share. Use the information provided and explain the most likely cause for this rapid increase in the price of the share during the month of August. (3)
3.2.3Investor X bought 1 000000 shares on the 13/12/2012, calculate the value and growth of his Mix Telematics portfolio as on 27/08/2013. (4)
3.2.4Investors invest in shares for two reasons namely capital growth and cash flows (dividends). Explain these concepts by making use of the Mix Telematics data to illustrate your answer. (6)
QUESTION 4: ECONOMIC DEVELOPMENT(10 marks)
4.1.Identify any four of the eight MDG’s.(4)
4.2.We are the first generation that can end extreme poverty. Do you believe it is possible for this generation to reach the MDG within the timeframe provided? Explain. (6)
QUESTION 5: SIMVENTURE(5 Marks)
5.1Choose the correct answer between brackets and write next to the number (5.1.1 – 5.1.5) on your ANSWER SHEET.
5.1.1(Advertising / Direct marketing) involves sending targeted promotional material to potential customers.
5.1.2By doing some research and segmenting your market you can tailor promotional activities and focus on one group to sell to. This process is called (target marketing / promotional marketing).
5.1.3Attending seminars and shows, joining trade associations, etc all help to build relationships in the business community. This is an example of (public relations / networking).
5.1.4To persuade people to buy your product, you must communicate clearly the benefits of making the purchase. (USP / IPO) are used by potential customers to make the initial decision.
5.1.5Some information can only be properly obtained from people who buy from you, this known as (customer feedback / competition research).
SECTION B: 60 MARKS
TOTAL PAPER 1: 85 MARKS
Grade 9 EMS Exam (Paper 2: Practical)
November 2013
Time: 30 Minutes Marks: 15
QUESTION 5.2:SIMVENTURE
Instructions:
- Start a new business and set your game up as follows:
- Play game for 12 months. After 12 months submit Performance report (see below) to your teacher. Report must be copied onto word document and emailed to your teacher. (Tip: PrntScr, then File–Pasteinto your word document)
Staff email addresses:
- Your effort will be marked according to the following criteria:
0 / 1 / 2 / 3
Instructions followed accurately
Cash flow (bank balance)
Profit
Average stress
Overall impression
THE END
TOTAL PAPER 1: 85 MARKS
TOTAL PAPER 2: 15 MARKS
GRAND TOTAL:100 MARKS