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Grade 11 Economics Term 3 Test 2023

The document is a Grade 11 Economics Controlled Test for the Ekurhuleni North District, scheduled for September 14, 2023, with a total of 100 marks. It includes instructions for answering questions, three sections with various types of questions, and topics covering economic concepts such as money functions, unemployment, and the role of the South African Reserve Bank. Students are required to answer specific questions from each section, adhering to guidelines on formatting and response structure.

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catjamzo1
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49K views9 pages

Grade 11 Economics Term 3 Test 2023

The document is a Grade 11 Economics Controlled Test for the Ekurhuleni North District, scheduled for September 14, 2023, with a total of 100 marks. It includes instructions for answering questions, three sections with various types of questions, and topics covering economic concepts such as money functions, unemployment, and the role of the South African Reserve Bank. Students are required to answer specific questions from each section, adhering to guidelines on formatting and response structure.

Uploaded by

catjamzo1
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

EKURHULENI NORTH DISTRICT

CONTROLLED TEST 2

2023

GRADE 11

ECONOMICS

14 SEPTEMBER

TIME: 1.5 hours


MARKS: 100
9 PAGES

1
Economics Grade 11 Term 3 Controlled Test 2023

INSTRUCTIONS AND INFORMATION

1. Answer THREE questions as follows in the ANSWER BOOK:

SECTION A: COMPULSORY
SECTION B: Answer ONE of the two questions.
SECTION C: Answer ONE of the two questions

2. Answer only the required number of questions. Answers in excess of the


required number will NOT be marked.

3. Number the questions according to the numbering system used in this


question paper.

4. Write the question number above each answer.

5. Read the question carefully.

6. Start EACH question on a NEW page.

7. Leave 2-3 lines between subsections of questions.

8. Answer the questions in full sentences and ensure that the format, content,
and context of your responses comply with the cognitive requirements of the
questions.

9. Only use black or blue ink.

10. You may use a non-programmable pocket calculator.

11. Write neatly and legibly.

2
Economics Grade 11 Term 3 Controlled Test 2023

SECTION A (COMPULSORY) 20 Marks- 20 Minutes

QUESTION 1

1.1 Various options are provided as possible answers to the following


questions. Choose the answer and write ONLY the letter (A-D) next to the
question number (1.1.1-1.1.5) in the ANSWER BOOK. Eg 1.1.4 D

1.1.1. The United Nations compiles a … to measure the level of development


in countries

A. Human Development Index


B. Consumer price index
C. Gini co-efficient
D. Lorenz curve

1.1.2. The difference between all money flowing in and out of the country.

A. Level of per capita income


B. Inflation
C. Balance of payments
D. Circular flow

1.1.3. The value of the GINI Co-efficient are between:

A. 0 and 1
B. 10 and 100
C. 1 and 10
D. 100 and 1000

1.1.4. The institution responsible for controlling Interest rates in South Africa

A. Department of finance
B. South African Reserve Bank
C. South African Revenue Services
D. Department of public enterprises

1.1.5. The total amount of money owed by a government to local and


international creditors is known as …

A. Grants
B. Public Debt
C. Subsidy payments
D. Induced tax
(10)

3
Economics Grade 11 Term 3 Controlled Test 2023

1.2 Choose a description from Column B that matches the item in Column A. Write
only the letter (A-J) next to the question numbers (1.2.1-1.2.5) in the ANSWER
BOOK.

COLUMN A COLUMN B
1.2.1 JIPSA A. Citizens between the age 15-65 who are
employed
1.2.2 Labour force
B. Policy that addresses the countries chronic
1.2.3 Indigenous Knowledge problem of unemployment and skills
shortages.
1.2.4 Employment equity
C. Money that must be accepted as a means of
1.2.5 Liquidity payment by law.

1.2.6. Legal tender D. Using traditional methods of development


rather than western ideas.

E. Level playing fields for all in the workplace.

F. How quickly money can be converted into


cash.

G. The application for a contract given out by


government to do a job.
(6x1) (6)
1.3. Provide the economic term/concept for each of the following descriptions.
Write only the term/concept next the question number.

1.2.1 Exchange system where goods are exchanged for other goods.

1.2.2 The index that measures the inequality of income.

1.2.3 The increase in price of goods and services over a period of time.

1.2.4 Financial assistance made by government to businesses to increase


production.
(4X1) (4)

TOTAL SECTION A [20]

4
Economics Grade 11 Term 3 Controlled Test 2023

SECTION B 40 Marks- 30 Minutes

Answer any ONE of the two questions from this section in the ANSWER
BOOK.

QUESTION 2: Economic Pursuits

2.1.1 Name any Two functions of money


(2)

2.1.2. Explain the term bartering?


(2)
2.2. Study the graph below and answer the questions that follows

[Adapted from Focus Economics]

2.2.1 Identify a country with the most unequal distribution from the graph. (1)
2.2.2. What does the Gini Coefficient of Zero mean? (1)
2.2.3. Briefly describe the term Lorenz curve. (2)
2.2.4 Explain the relationship between Lorenz curve and the Gini coefficient. (2)
2.2.5. Suppose the area between Country A and the line of equally C is 20 and the
total area (C+D) below the line of equality is 100. Calculate the Gini-
coefficient. Show all calculations. (4)
[14]

5
Economics Grade 11 Term 3 Controlled Test 2023

2.3. Read the extract below and answer the questions that follow.

South Africa lifts interest rates to 14-


year high to fight inflation
South Africa's central bank raised its main interest rate on Thursday to a 14-
year high, a move the Governor described as "bitter medicine. The bank lifted
rates by 50 basis points to 8.25% as it raised its inflation forecasts for this
year and next and said risks were to the upside. The decision was
unanimously agreed by Monetary Policy Committee members and followed a
50-bps hike at the South African Reserve Bank's (SARB) last policy meeting in
March. The SARB has now raised rates at 10 meetings in a row, adding a total
of 475 bps to the repo rate since it began tightening policy in November
2021.

By Anait Miridzhanian and Kopano Gumbi: May 25, 2023

2.3.1. What is the main reason for the increase in interest rates?
(1)
2.3.2 Who is the governor of the South African Reserve Bank?
(1)
2.3.3 Briefly describe the term repo rate.
(2)
2.3.4 How will an increase in the repo rate affect the prime lending rate.
(2)
2.3.5. What effect does high interest rates have on the economy?
(2×2) (4)

2.4. Differentiate between direct and indirect financing. (8)

2.5. Examine the impact of high population growth on a developing economy such
as South Africa. (8)
[40]

6
Economics Grade 11 Term 3 Controlled Test 2023

QUESTION 3: Economic Pursuits

3.1.1. Name TWO groups of people who are marginalised in


South Africa (2)
3.1.2. What impact does the Expanded Public Works Programme have on your local
community? (2)

3.2. Study the extract below and answer the questions that follow.

SA doesn't just have a jobs crisis. It has a skills crisis


South Africa faces an ongoing youth unemployment crisis. But as many employers’
struggle to fill the vacancies that are available, it's clear the problem is bigger than a
shortage of jobs.
The number of unemployed people in South Africa increased to 7.9 million in the
second quarter of 2023, from 5 million a year ago. Youth unemployment between the
ages of 15 and 24 and 25 and 34 years recorded the highest unemployment rates of
60.7% and 39.8%, respectively. Just under 10% of graduates are unemployed and a
further 20% of learners from other tertiary institutions are unemployed.
Youth unemployment must be seen within the context of the future of South Africa. If
34.2% of those within the ages of 15 and 24 are not in employment, education or
training, what future are we building?

Source: [Link]

3.2.1. What is depicted in the article above?


(1)
3.2.2. By how much did the unemployment numbers increase from 2022 to 2023?
(1)
3.2.3. Briefly describe the term youth unemployment
(2)
3.2.4. Explain ONE possible reason for the high unemployment crises.
(2)
3.2.5. Why do developing countries have a large supply of unskilled workers?
(4)
[14]

7
Economics Grade 11 Term 3 Controlled Test 2023

3.2 . Read the extract below and answer the questions that follow:

3.3.1. Name any function of the South African Reserve Bank? (1)

3.3.2. State the inflation targeting range in South Africa. (1)

3.3.3. Briefly describe the concept repo rate. (2)

3.3.4. How does inflation influence the purchasing power of money? (2)

3.3.5. How can South Africa’s monetary policy contribute to a higher economic
growth rate? 2×2 (4)

3.4. Briefly discuss medium of exchange and unit of account as functions of


money. 4×2 (8)
3.5. Analyse the benefits of microfinance in the economy . 4×2 (8)
[40]
TOTAL SECTION B [40]

8
Economics Grade 11 Term 3 Controlled Test 2023

SECTION C 40 Marks- 30 Minutes


Answer any ONE of the two questions from this section in the ANSWER
BOOK.
MARK
ALLOCATION
Introduction
The introduction is a lower order response Max. 2
• A good starting point would be to define a concept that appears in
the question
• Do not include any part of the question in your introduction
• Do not repeat any part of the introduction in the body
• Avoid mentioning in the introduction what you are going to discuss
in the body
Body
Main part: Discuss in detail/In-depth discussion/Examine/Critically Max. 26
discuss/Analyse/Compare/Evaluate/Distinguish/Differentiate/Explain/
Assess/Debate
Additional part: Give own opinion/Critically discuss/Evaluate/Critically Max. 10
evaluate/Draw a graph and explain/Use the graph given and explain/
Complete the given graph/Calculate/Deduce/Compare/Explain/
Distinguish/Interpret/Briefly debate/How?/Suggest
Conclusion
Any higher-order conclusion should include the following: Max. 2
• A brief summary of what has been discussed without repeating facts
already mentioned
• Any opinion or value judgement on the facts discussed
• Additional support information to strengthen the discussion/analysis
• A contradictory viewpoint with motivation, if required
• Recommendations
TOTAL 40
QUESTION 4: Economic Pursuits
• Discuss the functions of the Reserve bank. (26)

• How successful is the SARB in stabilising prices on the different markets as


its main objective.
(10)
QUESTION 5: Economic Pursuits

• Discuss in detail the characteristics of developing countries.


(26)
• How does the National Development Plan propose to increase economic
growth and development in South Africa.
(10)
TOTAL SECTION C: 40
GRAND TOTAL: 100

Common questions

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The Human Development Index (HDI) is a composite statistic of life expectancy, education, and per capita income indicators, which are used to rank countries into four tiers of human development. It provides a more comprehensive measure of development beyond GDP, focusing on people's well-being and capabilities, highlighting areas needing policy focus and investment for improving quality of life .

Direct financing involves borrowers borrowing funds directly from financial markets, typically through instruments like stocks and bonds, which requires an investor to have deeper market knowledge and capital. Indirect financing occurs when financial intermediaries, like banks, channel funds from savers to borrowers, making it accessible to a wider audience without requiring extensive knowledge of the market, contributing to broader economic stability and liquidity .

High population growth in developing countries like South Africa can strain resources, infrastructure, and public services. This can result in inadequate healthcare and education, which hampers human capital development, leading to higher unemployment rates and lower economic productivity. Furthermore, insufficient infrastructure can limit access to markets and hinder economic growth .

High interest rates in a developing economy can curb inflation by reducing spending, but they also slow economic growth and can increase the cost of debt servicing. For South Africa, this can lead to reduced investment in key sectors, increased unemployment, and slower GDP growth, further exacerbating socio-economic challenges like inequality and poverty .

The Expanded Public Works Programme provides temporary work opportunities and skills development to reduce unemployment and improve livelihoods. It impacts local communities by generating income, building employability, and promoting infrastructure development, which can uplift underdeveloped areas and contribute to poverty alleviation .

The National Development Plan aims to address systemic constraints to economic growth by improving infrastructure, enhancing skills development, and creating a more inclusive economy. By focusing on these areas, it seeks to boost long-term economic sustainability, improve job creation, and reduce inequality, which are crucial for South Africa's development .

Inflation reduces the purchasing power of money, meaning consumers can buy fewer goods and services with the same amount of money. As costs rise, consumers may cut back on non-essential spending, postpone major purchases, and seek cheaper alternatives, affecting overall economic demand and potentially slowing economic growth .

The Lorenz curve graphically represents income distribution by plotting the cumulative percentage of income against the cumulative percentage of households, from poorest to richest. The Gini coefficient quantifies inequality by measuring the area between the Lorenz curve and the line of perfect equality, divided by the total area under the line of perfect equality. A larger area indicates greater inequality, thus a higher Gini coefficient .

Microfinance provides financial services to individuals and small businesses lacking access to conventional banking services. It can empower entrepreneurs, promote small-scale businesses, and foster economic development by creating jobs and increasing income levels. In developing countries, this can reduce poverty, enhance investment in education and health, and contribute to economic stability .

An increase in the repo rate, which is the rate at which the central bank lends to commercial banks, leads to a higher cost of funds for banks. This typically results in an increase in the prime lending rate, making borrowing more expensive for consumers and businesses. Consequently, higher borrowing costs can slow economic growth by reducing consumer spending and investment .

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