CAPRICORN SOUTH DISTRICT

NATIONAL SENIOR
CERTIFICATE

GRADE 11

ECONOMICS 2023
SEPTEMBER CONTROLLED TEST

Task 6

ECONOMIC PURSUITS

DATE: 18 SEPTEMBER 2023

MARKS: 100

TIME: 1H30

This question paper consists of 11 pages

Economics/Gr 11/Task 6 NSC Capricorn South/2023
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INSTRUCTIONS AND INFORMATION

1. Answer THREE questions as follows:

SECTION A: COMPULSORY

SECTION B: Answer any 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. Read the questions carefully and start each question on a new page.

4. Number the answers correctly according to the numbering system used in this
question paper.

5. Answer in full sentences

6. Leave 2–3 lines between subsections of questions.

7. Use only black or blue ink. No pencil

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

9. Write neatly and legibly

Economics/Gr 11/Task 6 NSC Capricorn South/2023
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SECTION A (Compulsory)

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 to
1.1.5) in your answer books. Eg 1.1.6 D

1.1.1 ... refers to the welfare of all people and their ability to maintain an acceptable
existence.

A. Poverty

B. Productivity

C. Standard of living

D. Economic growth

1.1.2 A graph that shows how uneven the distribution of income is between households
is called the ...

A .Laffer curve

B .Philips curve

C. Circular flow

D. Lorenz curve

1.1.3 The value of the Gini coefficient ranges between …

A .0 and 1

B .10 and 100

C. 1 and 10

D. 100 and 1000

Economics/Gr 11/Task 6 NSC Capricorn South/2023
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1.1.4. The nationwide government intervention plan to create employment for the poor
and vulnerable is called the ...

A. Industrial Policy Action Plan

B. Affirmative Action

C. Expanded Public Works Programme

D. Black Economic Empowerment (BEE)

1.1.5. The … is a mechanism by which a government provides money (cash) in a

country’s economy.

A. MPC

B. monetary system

C. fiscal system

D. cash in transit (5×2) (10)

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1.2 Choose a description in COLUMN B that matches an item in COLUMN A.

Write only the letter (A–G) next to the question number (1.2.1–1.2.6). Eg. 1.1.7 B

COLUMN B
COLUMN A
1.2.1 Prime lending rates A. This expresses the number of year a new born infant will
live if the prevailing patterns of mortality remain the same
throughout this person’s life
1.2.2 BRICS
B. A statistical measure used to express the inequality of
income distribution
1.2.3 Indigenous
knowledge C. The rate at which commercial banks are charged by
Reserve Bank when they borrow money.

1.2.4 Life expectancy D. The rate at which banks charges the general public when
money is borrowed by the public.

1.2.5 Gini coefficient E. A trade agreement between a group of emerging

markets

1.2.6 Repo rate F. The average income per head of the population.

G. Unique practices of locals in a given culture or society

(6×1) 6

1.3 Give ONE term for each of the following descriptions. Write only the term next to the
question number (1.3.1–1.3.4)

1.3.1 The study of how individuals, businesses and other organizations make choices
about how to produce goods and services from scarce resources

1.3.2 Government services provided for the benefit of the community.

1.3.3 The level of wealth, comfort, material goods and necessities available to a certain
socioeconomic class in a certain geographic area.

1.3.4 A statistic used to rank countries by level of human development in terms of set
criteria. (4×1) 4

TOTAL SECTION A: 20
Economics/Gr 11/Task 6 NSC Capricorn South/2023
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SECTION B

Answer any ONE of the TWO questions from this section

QUESTION 2

2.1 Answer the following questions:

2.1.1. Name any TWO functions of the central bank. (2×1) (2)

2.1.2 Why is money used as a unit of account? (1 × 2) (2)

2.2. Study the graph below and answer the questions that follow

0% Cumulative Population share (%) 100%

2.2.1 Which economic concept is depicted in the graph above? (1)

2.2.2. What does a Gini coefficient of zero mean? (1)

2.2.3 Briefly describe the term Lorenz curve. (2)

2.2.4. What factors contribute to income inequality (2)

2.2.5 Explain the relationship between the Gini coefficient and the Lorenz curve.

(4)
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2.3. Study the article below and answer the questions that follow

South Africa micro-lender plans to launch digital bank

South Africa micro-lender, Barko, wants to launch a digital banking offering with Swiss
banking software company Temenos.
Temenos announced on Wednesday (27 October) that it will enter the local banking
industry through Barko, by integrating its banking platform.
Barko loans already operates as a micro-finance institution in South Africa, with 188
branches across the country. The group offers small loans and funeral cover, but has
now applied for a mutual banking license to operate as a full service digital bank

Source:businesstech.co.za/news/banking

2.3.1 Identify another service that is rendered by Barko Lending besides money
lending. (1)

2.3.2. Which foreign institution is this local business intending to partner with? (1)

2.3.3. Briefly describe the term micro- finance. (2)

2.3.4. How does the South Africa Reserve bank deal with bank failures? (2)

2.3.5. What are the basic principles of credit creation by banks? (4)

2.4. Discuss any TWO factors of production as methods of growing the economy. (8)

2.5. Discuss money as a medium of exchange and a store of value. (2x4) (8)

[40]
Economics/Gr 11/Task 6 NSC Capricorn South/2023
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QUESTION 3:

3.1. Answer the following questions.

3.1.1 Name TWO methods to achieve economic growth. (2 x 1) (2)

3.1.2. How the government uses minimum wage to redistribute income? (2)

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

WHAT’S DRIVING HUNGER IN GAUTENG, SOUTH AFRICA’S ECONOMIC POWER

HOUSE?

In Gauteng about 35% of the population is lacking food insecure. They have (at the very
least) skipped a meal because there was insufficient money for food

Food services as one of the critical needs a person requires for daily survival. In South
Africa it’s recognised as a fundamental human right under the country constitution.

Approximately 11% (6.5 million) of South Africa’s population is hungry and food
insecure. Conflicts and insecurity, climate change, poverty, and population growth are
primary drivers of human hunger and food insecurity
(ewn.co.za)

3.2.1. Identify the basic need that is mentioned in the extract? (1)

3.2.2. What is the percentage of people living in hunger in South Africa? (1)

3.2.3. Briefly describe the term poverty. (2)

3.2.4. How should higher education inequalities be addressed to improve the

standard of living of South Africa? (2)

3.2.5. Distinguish between economic growth and economic development. (4)

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3.3. Study the extract below and answer the question that follow:

PROTECTING INDIGENOUS KNOWLEDGE SYSTEM

Female traditional leaders in South Africa implement a strategy aimed at improving the
lives of rural communities through the management of indigenous knowledge systems
and sustainable use of natural resources with nutritional and medicinal value.

Urban dwellers are already flocking to rural areas to look for herbs with medicinal and
nutritional properties that may suppress the impact of HIV/AIDS related illnesses. The
over- harvesting of the African potato serves as a prime example of the threat of
indigenous plants. Wild plants are used to treat many problems, including coughs,
headaches, and to heal wounds

[ Source.www.africahistory.net]

3.3.1. Why do female traditional healers implement a strategy for management of

indigenous knowledge systems? (1)

3.3.2. Name a health-related problem that can be cured by extracts of wild

plants. (1)

3.3.3. Describe the term indigenous knowledge system (IKS). (2)

3.3.4. Why is indigenous knowledge system(IKS) important? (2)

3.3.5. Why does the government implement policies to protect and promote

indigenous knowledge systems? (4)

3.4. Explain low life expectancy and lack of education as the characteristics of
developing country. (8)

3.5. How successful will the implementation of the NDP be in the South African
economy? (8)

[40]

TOTAL SECTION B: 40
Economics/Gr 11/Task 6 NSC Capricorn South/2023
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SECTION C

Answer any ONE of the two questions in this section in the. Ensure that your answer
follows the structure indicated below in order to obtain maximum marks:

STRUCTUTURE OF ESSAY MARK

ALLOCATION
Introduction
The introduction is a lower order-response
● A good starting point would be to define the main concept related to
the question topic. Max 2
● Do not include any part of the question in your introduction.
● Do not include any part of the introduction in your body.
● Avoid saying 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.
Additional part: Give own opinion/ Critically discuss/ Evaluate/
Critically evaluate/ Draw a graph and explain/ Use the graph given and Max 10
explain/ Complete the given graph/ Calculate/ Deduce/ Compare/
Explain/ Distinguish/ Interpret/ Briefly debate/ How/ Suggest

Conclusion
Any high-order conclusion should include:
● A brief summary of what has been discussed without repeating facts
already mentioned. Max 2
● Any opinion or value judgment on the facts discussed.
● Additional support information to strengthen the discussion/ analysis.
● A contradictory viewpoint with motivation, if required.
● Recommendations.
TOTAL 40
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QUESTION 4

 Discuss in detail the different methods used to redistribute income and wealth.
(26 marks)
 How can human and natural resources be used to ensure economic
development? (10marks)

[40]

QUESTION 5

 Discuss the functions of the South African Reserve Bank under the following
headings:
o Government’s banker (8)
o Bank of issue (8)
o Bankers’ bank (10) (26 marks)
 How will the Governor of the Reserve Bank use monetary policy to influence the
quantity of money of the country? (10 marks)

[40]

TOTAL SECTION C:40

GRAND TOTAL: 100