SIPHEPHILE

SECONDARY
SCHOOL
ECONOMICS
GRADE 11
CASE STUDY
2023
MARKS: 50
DURATION: 1 HOUR
QUESTION 1.DISTRIBUTION OF INCOME AND WEALTH marks: 18

SOUTH AFRICA MOST UNEQUAL COUNTRY IN THE WORLD: REPORT

South Africa is the most unequal country in the world, with race playing a determining factor in
society where 10 % of the population owns more than 80% of the wealth, a World Bank Report said.

When race is coincided as a factor in income disparities, the report added “its contribution to income
inequality amounts to 41 %, while contribution of education is reduced to 30 %

1.1.1 Name the curve used to illustrate the distribution of income in South Africa (1)
1.1.2 State the percentage of the population which earns 80% of the wealth in South Africa (1)
1.1.3 Briefly describe income inequality (2)
1.1.4 What effect will an increase in the income tax have on the inequality gap between the rich and the
poor (2)
1.1.5 Explain how individuals create wealth (4)
1.1.6 how is the Lorenz Curve related to the Gini Coefficient ? (8)

QUESTION 2: METHODS OF DEVELOPMENT Marks: 14

South Africa’s HDI value for 2021 is 0.713 which puts the country in the high human development
category poisoning it at 109th out of 191 countries and territories

2.1.1 Which institution calculates the above index in South Africa ? (1)
2.1.2 List ONE dimension used to calculate the HDI (1)
2.1.3 What is the HDI used for? (2)
2.1.4 Briefly describe the term economic development (2)
2.1.5 How can investment in social (human) capital improve economic development in South Africa (8)
QUESTION 3. SOUTH AFRICAN ENDEVOURS marks: 18
Read the extract and answer the questions that follow
The National Development Plan is obviously the best ever development statement it will surely benefit
the South African Economy

Through the NDP, just like GEAR, NSDS, NGP, which outlines a plan to address issues in SA, is not
perfect, it provides a road map to where the government would like us to be in 2030. The NDP provides
an opportunity for South Africa to work together to confront our challenges and build a better future for
ourselves and future generations.

[adapted from NDP and Mail & Guardian, Mar 2020]

3.1.1 Identify ONE previous strategy in the information above (1)

3.1.2 List ONE characteristic of developing countries (1)
3.1.3 Briefly describe economic development (2)
3.1.4 What negative impact will the implementation of the NDP have on taxpayers (2)
3.1.5 How successful will the implementation of the NDP be in the South African economy (4)
3.1.6 Discuss low levels of productivity as one of the characteristics of developing countries (8)