Centre Number Candidate Number Candidate Name

NAMIBIA SENIOR SECONDARY CERTIFICATE

ECONOMICS ORDINARY LEVEL 6145/2

PAPER 2 2 hours
Marks 80 2020

Additional Materials: Non-programmable calculator

L
INSTRUCTIONS AND INFORMATION TO CANDIDATES

E
• Candidates answer on the Question Paper in the spaces provided.

V
• Write your Centre Number, Candidate Number and Name in the spaces at the top of this
page and on all separate answer sheets used.

E
• Write in dark blue or black pen.

L
• You may use a soft pencil for any rough work, diagrams or graphs.
• Do not use correction fluid.

Y
• Do not write in the margin For Examiner’s Use.

R
• You may use blank pages for working/when answers are crossed out and corrected.

A
• Answer all questions.

I N
• Section A: Compulsory For Examiner’s Use
• Section B: Answer three questions. Q Marks Marker Checker

D
• Please indicate with a tick () which 1 

R
questions you answered.
Sec B
• The number of marks is given in brackets [ ]
2

O
at the end of each question or part question.
3
4
5
6
Total

This document consists of 16 printed pages.

Republic of Namibia
MINISTRY OF EDUCATION, ARTS AND CULTURE

© MoEAC/DNEA 6145/2/20 [Turn over

926470
 2
For
Examiner’s
SECTION A Use

This question is COMPULSORY and should be answered on the Question Paper in

the spaces provided.

1 In 2017, the government of Namibia introduced a minimum wage for domestic

workers. The amount of the minimum wage was determined after social
factors and living standards of domestic workers were considered.
(a) Name four factors that might influence the quality of life of domestic
workers.
1.....................................................................................................................

.......................................................................................................................

2.....................................................................................................................

.......................................................................................................................

3.....................................................................................................................

.......................................................................................................................

4.....................................................................................................................

....................................................................................................................... [4]
(b) With the help of a demand and supply diagram illustrate and explain the
effects on the market for domestic workers of a minimum wage which is
higher than the market wage.

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

....................................................................................................................... [7]

6145/2/20
926470
 3
For
Examiner’s
(c) Evaluate the possible effects of a minimum wage on the economy of a Use
country.

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

....................................................................................................................... [9]

[20]

6145/2/20 [Turn over

926470
 4
For
Examiner’s
SECTION B Use

Answer three questions.

2 In 2016, the contribution of all sectors, at constant prices, to the GDP of

Namibia decreased. This was due to a reduction in government spending.
Employment and business opportunities were negatively affected.
(a) What is meant by GDP at constant prices?

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

....................................................................................................................... [3]
(b) Why is it important that a government should keep prices stable?

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

....................................................................................................................... [7]

6145/2/20
926470
 5
For
Examiner’s
(c) Identify and describe the type of unemployment explained in the extract. Use

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

....................................................................................................................... [3]
(d) Discuss the possible consequences of unemployment.

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

....................................................................................................................... [7]

[20]

6145/2/20 [Turn over

926470
 6
For
Examiner’s
3 In 2017 the average Namibian consumer used N$83,30 out of each N$100,00 Use
of disposable income received to pay off debt to commercial banks and micro
lenders. This affected the saving and spending patterns of consumers.
(a) Define disposable income.

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

....................................................................................................................... [2]
(b) Give possible reasons for the high Namibian consumer debt.

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

....................................................................................................................... [4]

6145/2/20
926470
 7
For
Examiner’s
(c) Analyse ways in which the central bank might help to control and decrease Use
rising household debt.

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

....................................................................................................................... [7]

6145/2/20 [Turn over

926470
 8
For
Examiner’s
(d) How might savings and spending patterns change for different groups of Use
people and income levels, over a time period in a person’s career?

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

....................................................................................................................... [7]

[20]

6145/2/20
926470
 9
For
Examiner’s
4 In March 2018, a privately owned oil company polluted the Gammams water Use
purification plant run by the local authority in Windhoek. The pollution happened
because the oil company had a broken oil safety valve. The provision of clean
water was severely affected and the Windhoek local authority might have use
money, originally allocated to the development of land for low cost housing, to
clean up the pollution at a cost of N$32 million.
(a) Identify and give examples of three factors of production mentioned in the
extract.

1.....................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

2.....................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

3.....................................................................................................................

.......................................................................................................................

.......................................................................................................................

....................................................................................................................... [6]
(b) What is meant by a privately owned oil company?

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

....................................................................................................................... [3]

6145/2/20 [Turn over

926470
 10
For
Examiner’s
(c) Define opportunity cost and explain an example in the extract. Use

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

....................................................................................................................... [4]
(d) Justify why water provision should not be left to the private sector.

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

....................................................................................................................... [7]

[20]

6145/2/20
926470
 11
For
Examiner’s
5 In November 2018, the Minister of Environment and Tourism suspended permits Use
for harvesting of timber in the north eastern parts of Namibia. This was because
the environment has been negatively affected by the annual harvesting of more
than 47 000 trees. Chinese business men bought 600 trees for N$270 000 from
local harvesters. Value added timber products, though, earned up to N$3 million.
(a) Identify and describe the economic sector in which timber harvesting is
classified.

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

....................................................................................................................... [2]
(b) What is meant by value added. Describe how value is added to timber
products.

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

....................................................................................................................... [4]

6145/2/20 [Turn over

926470
 12
For
Examiner’s
(c) Explain the social costs and social benefits of timber harvesting to the Use
community in the north eastern parts of Namibia.

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

....................................................................................................................... [7]

6145/2/20
926470
 13
For
Examiner’s
(d) Assess whether the government should conserve or exploit natural Use
resources such as trees.

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

....................................................................................................................... [7]

[20]

6145/2/20 [Turn over

926470
 14
For
Examiner’s
6 Namibia is a developing country. The estimated population growth of Namibia Use
increased by 10% from 2011 to 2016. As the country developed economically,
most of the population moved to towns and cities.
(a) Why might people migrate to urban areas as a country develops?

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

....................................................................................................................... [2]
(b) Identify four reasons why a developing country, such as Namibia, might
want to control a high population growth rate.

1.....................................................................................................................

.......................................................................................................................

2.....................................................................................................................

.......................................................................................................................

3.....................................................................................................................

.......................................................................................................................

4.....................................................................................................................

....................................................................................................................... [4]

6145/2/20
926470
 15
For
Examiner’s
(c) What problems might a developing country experience as it becomes Use
more developed?

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

....................................................................................................................... [7]

6145/2/20 [Turn over

926470
 16
For
Examiner’s
(d) Discuss how the importance of the different economic sectors in a country Use
change as the country becomes more developed.

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

....................................................................................................................... [7]

[20]

6145/2/20
926470