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.
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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)
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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]
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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]
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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]
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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: https://www.news24.com
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]
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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]
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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
