ECONOMICS

GRADE 10
CLASS TEST
MARKS: 40
TIME : 1 HOUR

SECTION A
QUESTION 1

1.1. 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. Which of the following is NOT an oligopoly market?

a. MTN, Vodacom, and Cell C 2
b. FNB, ABSA and Standard Bank
c. Engen, Caltex and Sasol
d. KFC, Nandos and Hungry Lion

1.1.2. The maximum amount of money a consumer is willing to sacrifice for a good or a service
is known as …
a. Satisfaction
b. Value
2
c. Price
d. A market

1.1.3. World markets are also known as …… markets.

a. Collective
2
b. Money
c. Global
d. Perfect

1.1.4. A characteristic of an imperfect market:

a. There is one supplier or a few large suppliers 2
b. Products are homogenous
c. There are no barriers to entry
d. There are many buyers and sellers

1.1.5. Buyers and sellers meet in a … to determine prices

a. Foreign Sector 2
b. Market
c. Bank
d. Supply

2 x 5 = 10
1.2. Choose a description from Column B that matches the item in Column A. Write ONLY a
LETTER (A – F ) next to the question number.

COLUMN A COLUMN B
1.2.1. Quantity Demand A. The goods and services that are being traded in the
market
1.2.2. Oligopoly B. where demand and supply meet
1.2.3. Equilibrium C. A product that is used in place of another product
1.2.4. Commodity D. All other things remain the same
1.2.5. Substitute good E. The amount of goods people are willing and able
to buy at a certain price
F. The point where demand and supply meet
G. A few sellers control the market 2 x 5=10

1.3. Give the correct concept/ term for each of the following phrases:

1.3.1. Additional satisfaction gained from consuming one extra unit of a good or service in a 1
given period.
1
1.3.2. A market structure in which there is only one supplier of goods or services

1.3.3. Total satisfaction or benefit a consumer gets om consuming a good or service 1

SECTION B
QUESTION 2

2. Answer the following questions.

1
2.1. Why is Eskom regarded as a Monopoly in South Africa?
2.2. What are perfect markets? 2

2.3. DATA RESPONSE

Study the information below and answer the questions that follow:
Cups of water Marginal Utility Total Utility
0 ? 0
1 10 ?
2 ? 18
3 6 ?
4 ? 28
5 2 ?

2.3.1. What is shown in the table above? 1

 1
2.3.2. What is the marginal utility at 2 cups of water?
2.3.3. What happens when a consumer continues to drink additional cups of water after they
1
have reached maximum utility?

2.4. DATA RESPONSE

Study the table below and answer the questions that follow

Price Quantity Demanded Quantity Supplied

R10 20 100
R6 60 60
R2 100 20

2.4.1. Identify the equilibrium price and quantity 1

2.4.2. Define equilibrium? 2
2.4.3. Use the table above to draw and interpret the price formation graph. 8