Grade 12 Economics Exam Paper - 2014

This is the 2014 Grade 12 Economics Examination Paper. Those students who are doing Grade 12 now can do this question online and compare the answers provided at the end of the post. 

QUESTION 1
A firm reaches economies of scale

• A.  when its input decreases, its output increases twice than its input and at a reduced average cost.
• B.  As its input increases, its output increases twice or greater than its input at a reduced average cost.
• C.  when input increases but output is constant and average cost per good is reduced.
• D.  when out put decreases and average cost is falling due to decrease in the input.

QUESTION 2
Adams Smith’s book called “the wealth of Nation” talks about wealth creation through specialisation.
Which of the following statement is NOT an advantage of specialisation?

• A.  Increase efficiency in the production.
• B.  People become very skillful.
• C.  Boredom due to monotony in their work.
• D.  Increases production.

QUESTION 3
An additional cost that is incurred as a result of producing an additional output is known as

• A.  average cost.
• B.  marginal cost.
• C.  variable cost.
• D.  total cost.

QUESTION 4
In the short run, all the inputs are fixed accept for

• A.  Land.
• B.  Capital.
• C.  Entrepreneurial Skills.
• D.  Labor.

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