# Economics Grade 10 Paper 1 Gauteng June 2024 Memo (English)

> Grade 10 Economics Paper 1 memorandum from the Gauteng June Exam 2024 (English), 17 pages. Read online or download the free PDF.

- Page: https://www.hlayiso.com/library/gr-10-economics-p1-english-june-2024-possible-answers/c23085d5-738d-46b4-b878-072af26bc958
- Updated: 2026-09-27
- Subject: Economics
- Grade: Grade 10
- Language: English
- Document type: Memorandum
- Year: 2024
- Exam period: Gauteng June Exam
- Paper: 1
- Curriculum: CAPS
- Pages: 17

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Economics · Grade 10 · Gauteng June Exam · 2024 · English. Memorandum, 17 pages. Read online or download the PDF.

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           PROVINCIAL EXAMINATION
                  JUNE 2024
            MARKING GUIDELINES

                   GRADE 10

                ECONOMICS (PAPER 1)

17 pages

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                                                             ECONOMICS
                                 MARKING GUIDELINES
                                                             (PAPER 1)            GRADE 10

SECTION A (COMPULSORY)

QUESTION 1

1.1 MULTIPLE-CHOICE

   1.1.1   A – limited means 

   1.1.2   C – applying statistics in economics 

   1.1.3   D – households 

   1.1.4   C – scarcity 

   1.1.5   B – Recovery                                                     (5 x 2)   (10)

1.2 MATCHING ITEMS

   1.2.1   F – an optimal allocation of resources to maximise welfare 

   1.2.2   C – assumes free markets have no self-balancing mechanisms 

   1.2.3   A – a place where final goods and services are bought and sold 

   1.2.4   E – alternating periods of expansion and contraction 

   1.2.5   G – the physical surroundings and conditions that affect people’s lives 

   1.2.6   B – changes simultaneously with the shifts in economic activity 
                                                                             (6 x 1)     (6)

1.3 GIVE A TERM

   1.3.1   Microeconomics 

   1.3.2   Savings 

   1.3.3   Free goods 

   1.3.4   Exogenous/External factors                                        (4 x 1)    (4)

                                                               TOTAL SECTION A:          20

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                                                             ECONOMICS
                                   MARKING GUIDELINES
                                                             (PAPER 1)            GRADE 10

SECTION B

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

QUESTION 2: MACROECONOMICS

2.1 Answer the following questions.

     2.1.1   Name any TWO career opportunities in the economic field of study.
             •    Statistician 
             •    Economist 
             •    Mathematician 
             •    Lawyer 
             •    Sociologist 
             •    Information Technology 
             •    Financial Analyst 
             •    Policy Analyst 
             •    Market Research Analyst 
             •    Actuary 
             •    Financial Planner/Advisor 
             •    Data Analyst/Data Scientist 
             •    Corporate Strategist 
             •    Teaching and Academia 
             •    International Development Specialist 
             (Accept any other correct relevant response.)                  (2 x 1)      (2)

     2.1.2   What is the benefit of using economic models?
             •    It explains the relationship between economic aspects. 
             •    It can predict what will happen when something changes. 
             •    It can be used to develop economic policy. 
             (Accept any other correct relevant response.)                     (1 x 2)   (2)

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                                                             ECONOMICS
                                 MARKING GUIDELINES
                                                             (PAPER 1)             GRADE 10

2.2 DATA RESPONSE

   2.2.1   Name the economic system that is associated with Fidel Castro?
           •    Socialist system /Communistic system 
           (Also accept communist system.)                              (1 x 1)           (1)

   2.2.2   What economic field of study would be the most appropriate for
           governmental leaders to study?
           •    Public Finance 
           •    Macroeconomics 
           •    Development Economics 
           •    International Economics
           •    International Trade 
           •    Behavioural Economics 
           •    Environmental Economics 
           •    Health Economics 
           •    Labour Economics 
           (Accept any other correct relevant response.)                                  (1)

   2.2.3   Briefly explain the term economic system.
           •    An economic system is a system of production, resource allocation
                and distribution of goods and services within a society. 
           (Accept any other correct relevant response.)                                  (2)

   2.2.4   Why is economics considered the “study of choices”?
           • Economics focuses on how individuals, businesses, and societies
              make decisions regarding the allocation of limited resources that have
              alternative uses. 
           • Economics explores how people make decisions in various situations
              where resources are limited, and choices need to be made. 
           (Accept any other correct relevant response.)                        (1 x 2)   (2)

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                                                                ECONOMICS
                                   MARKING GUIDELINES
                                                                (PAPER 1)               GRADE 10

    2.2.5   How can economics be used to solve income inequality?
            •    Economics helps identify the factors contributing to income
                 inequality. 
            •    Economists analyse policies aimed at reducing inequality. 
            •    This includes progressive taxation, social welfare programmes and
                 minimum wage policies. 
            •    Economics evaluates the effectiveness of redistributive policies that
                 aim to transfer income from wealthier individuals or groups to those
                 with lower incomes. 
            •    This can be through taxation and social welfare programmes like
                 income support, healthcare, education subsidies, and housing
                 assistance. 
            •    By applying economic principles and analysis, policymakers can
                 develop strategies and policies to mitigate income inequality. 
            (Accept any other correct relevant responses.)                                     (4)

2.3 Data Response

    2.3.1   Name the absent participant in a closed economy.
            The foreign sector.                                                               (1)

    2.3.2   Identify one of the main flows in the circular flow model?
            Monetary Flow 
            Real Flow 
            (Accept any other correct relevant response.)                            (1 x 1)   (1)

    2.3.3   Briefly explain the term circular flow.
            •     It is the diagram indicating the flow of income, production, and
                  expenditure in the economy. 
            (Accept any other correct relevant response.)                                      (2)

    2.3.4   Why is the foreign sector important for economic growth?
            •    When local firms export goods and services to foreign markets,
                 injections are made to the local economy. 
            •    The foreign sector is crucial for economic growth as it opens up
                 opportunities for trade, innovation, diversification, and the exchange
                 of resources and ideas. 
            (Accept any other correct relevant response.)                          (1 x 2)     (2)

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                                                               ECONOMICS
                                  MARKING GUIDELINES
                                                               (PAPER 1)             GRADE 10

    2.3.5   How will an increase in household spending impact the circular flow?
            •    An increase in household spending leads to higher levels of
                 consumption expenditure. 
            •    Higher demand for goods and services produced by firms will lead
                 firms to produce more to meet the consumer demand. 
            •    Firms can experience increased revenues from selling more goods
                 and services. 
            •    When firms increase production due to a higher demand for goods
                 and services, it can result in increased income for factors of
                 production, such as labour (wages), capital (interest), land (rent), and
                 entrepreneurship (profits). 
            •    The increase in household spending, leading to higher consumption
                 and production, can contribute to economic growth. 
            •    The increase in household spending represents an injection into the
                 circular flow. 
            (Accept any other correct and relevant response.)                               (4)

2.4 Distinguish between a positive and a normative statements in economics.

    Positive Statements
    •     Positive statements are descriptive statements based on facts, data, and
          empirical evidence. ✓✓
    •     They are objective statements that can be tested or verified using
          observation, measurement, or scientific analysis. ✓✓
    •     They aim to describe how the economy works, what is currently happening,
          or what has happened in the past. ✓✓
    •     They are free from personal opinions, value judgments, or beliefs. ✓✓
    •     Positive statements are based on verifiable data and can be confirmed or
          refuted through empirical evidence. ✓✓
    •     Example: “The unemployment rate in the country is 5%.” ✓             (Max. 4)

    Normative Statements
    •    Normative statements are subjective statements that involve opinions, value
         judgments, or statements about what should be or ought to be. ✓✓
    •    They are based on personal beliefs, preferences, or ethical
         considerations. ✓✓
    •    They express subjective viewpoints or arguments about what is desirable or
         morally right/wrong in the economy. ✓✓
    •    Normative statements cannot be proven or disproven purely through
         empirical evidence because they involve judgments and opinions. ✓✓
    •    Example: "A higher minimum wage is necessary for ensuring a living wage
         for all workers." ✓                                                 (Max. 4)
    (Accept any other correct relevant response.)                               (4 x 2)     (8)

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                                                               ECONOMICS
                                   MARKING GUIDELINES
                                                               (PAPER 1)             GRADE 10

2.5 How is economics and mathematics related?
    •    Mathematics is an essential tool in economics because it provides the
         framework for modelling, analysing, and interpreting economic data and
         relationships. ✓✓
    •    Mathematics is used to calculate totals in the economy, for example the
         gross domestic product (GDP) and the gross domestic income (GDP). 
    •    Economists use this calculation to calculate the growth rate of the economy
         for a certain period of time, usually one year. 
    •    Economics and mathematics share links due to the logical nature of
         economic theory and the quantitative tools used to model, analyse, and
         understand economic trends. 
    •    Mathematics provides a framework for economists to create models that
         represent economic relationships between various economic variables. 
    •    Mathematical functions, equations, and models are used to describe
         economic concepts like demand, supply, production, consumption, and
         investment. 
    •    Economists use mathematical optimisation techniques to maximize utility,
         profit, or efficiency. 
    •    Mathematics, specifically statistics and econometrics, is employed
         extensively in economics to study practical data, estimate relationships
         between variables, test hypotheses, and make predictions. 
    •    Techniques like regression analysis, time series analysis, and probability
         theory are integral in empirical economic research. 
    •    In essence, mathematics provides the language and analytical tools that
         enable economists to formalise economic theories, model complex
         relationships, analyse data, and derive conclusions. 
    (Accept any other correct and relevant response.)                             (4 x 2)    (8)
                                                                                            [40]

QUESTION 3: MACROECONOMICS

3.1 Answer the following questions.

     3.1.1   Name any TWO examples of capital goods.
             • Tools 
             • Machinery 
             (Any other relevant response.)                                                  (2)

     3.1.2   Why is the GDP of South Africa traditionally higher than the GNP?
             • Any country in which residents pay more factor income to foreigners
                 than they receive from foreigners will have a Gross Domestic Product
                 that exceeds its Gross National Product. 
             (Any other relevant response.)                                                  (2)

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                                                               ECONOMICS
                                  MARKING GUIDELINES
                                                               (PAPER 1)             GRADE 10

3.2 Data Response

    3.2.1   Identify the section of the South African economy most affected by the
            Ukraine war?
            •    Export Sector 
            •    Energy Sector 
            •    Commodity Sector 
            •    Financial Markets 
            •    Investment Sector 
            •    Foreign Sector 
            (Accept any other correct relevant response.)                  (1 x 1)          (1)

    3.2.2   How did commodity prices change as result of the war?
            Commodity prices increased                                                     (1)

    3.2.3   Briefly explain the term foreign trade.
            The exchange of goods, services, and capital across national borders
            between countries 
            (Accept any other correct relevant response.)                                   (2)

    3.2.4   Why was South African industries also disrupted due to the conflict
            in the Ukraine?
            • Industries relying on imports of raw materials or components from
                 Russia or Ukraine faced shortages. 
            (Accept any other correct relevant response.)                                   (2)

    3.2.5   In which way can South Africa benefit from the ban on trade with
            Russia?
            • South African commodities can serve as a substitute product for
                previously imported goods from Russia, increasing the SA export
                ban. 
            • This could lead to the expansion of South African industries and
                increased revenue from new markets. 
            • A ban on trade with Russia might prompt South African businesses to
                diversify their export destinations. 
            • This could reduce the reliance on a single trading partner (Russia) and
                expose South African products to new markets, enhancing export
                diversification. 
            • South Africa is a significant exporter of commodities like minerals (e.g.,
                platinum, gold), agricultural products, and metals. South Africa could
                benefit from increased demand and higher prices for its exports. 
            (Accept any other correct relevant response.)                         (2 x 2)   (4)

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                                                              ECONOMICS
                                  MARKING GUIDELINES
                                                              (PAPER 1)             GRADE 10

3.3 Data Response

    3.3.1   Identify the type of pollution depicted in the picture above.
            • Air Pollution                                                               (1)

    3.3.2   What tax is levied on pollution-intensive goods?
            • Environmental taxes /Green taxes                                 (1 x 2)   (1)

    3.3.3   Briefly explain the term environmental sustainability.
            • Environmental sustainability is the ability of the environment to survive
                its use for economic activity. 
            (Accept any other correct relevant response.)                                  (2)

    3.3.4   Why do developed countries contribute more to global pollution than
            developing countries?
            • Developed countries generally have higher levels of industrialisation,
                advanced technology, and larger consumption patterns, leading to
                significant pollution levels.
            (Accept any other correct relevant response.)                                  (2)
         ●
    3.3.5 How can education help lower pollution levels?
           • Education increases awareness about environmental issues, such as
               air and water pollution. 
           • If people are aware of their environment, they are more likely to take
               action to reduce pollution. 
           • Education encourages individuals to adopt eco-friendly habits in their
               daily lives. 
           • This includes, for example, reducing energy consumption, recycling,
               conserving water, using public transportation, and making informed
               consumer decisions. 
           (Accept any other correct relevant response.)                        (2 x 2)    (4)

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                                                                  ECONOMICS
                                    MARKING GUIDELINES
                                                                  (PAPER 1)              GRADE 10

3.4 Describe the differences between absolute and relative scarcity.

     Absolute Scarcity:
     •    Absolute scarcity refers to an inherent, universal shortage of a resource. 
     •    Absolute scarcity occurs when the available quantity of a resource is
          inadequate to meet the all human wants and needs. 
     •    The quantity of the resource is limited and cannot be increased to meet the
          demands of everyone. 
     •    For example, the available quantity of fossil fuels is finite and cannot be
          replenished.                                                           (Max. 4)

     Relative Scarcity:
     •     Relative scarcity occurs when goods and services are available, but you do
           not have the resources to acquire it. 
     •     Relative scarcity occurs due to a difference in the available quantity of a
           resource and the demand for that resource, in a certain situation. 
     •     A resource might be relatively scarce for a particular instance, even though it
           is generally available in abundance. 
     •     For example, a luxury item might be relatively scarce for a lower-income
           household, even though it's readily available in the market.           (Max. 4)
     (Accept any other relevant responses.)                                           (4 x 2)   (8)

3.5 How does the government protect consumer rights.
    •   Governments enact and enforce laws specifically designed to protect
        consumers from unfair, deceptive, or fraudulent practices by businesses. 
    •   These laws cover aspects such as product safety, labeling, advertising,
        pricing, warranties, and fair business practices. 
    •   Governments often establish regulatory bodies or agencies tasked with
        overseeing consumer protection. 
    •   These agencies monitor businesses' compliance with consumer protection
        laws, investigate consumer complaints, and take enforcement actions against
        violators. 
    •   Governments set standards and regulations to ensure the safety and quality
        of products sold in the market. 
    •   These regulations may include mandatory testing, labeling requirements, and
        safety standards to protect consumers from harmful or defective
        products. 
    •   Governments provide information and educational resources to empower
        consumers to make informed choices. 
    •   This includes educating consumers about their rights, responsibilities,
        available remedies, and how to recognise and report fraudulent or deceptive
        practices. 

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                                                           ECONOMICS
                              MARKING GUIDELINES
                                                           (PAPER 1)             GRADE 10

•    Governments establish mechanisms for consumers to seek redress when
     they have been harmed or treated unfairly by businesses. 
•    This may involve avenues for lodging complaints, dispute resolution services,
     or access to courts for legal recourse. 
•    Governments often support and collaborate with consumer advocacy
     organisations that work to promote and protect consumer interests. 
•    These groups advocate for policy changes, conduct research, and raise
     awareness about consumer rights and issues. 
•    Governments regularly monitor markets to identify potential violations of
     consumer rights. 
•    They enforce laws and regulations by imposing fines, penalties, or legal
     actions against businesses found to engage in unfair or deceptive
     practices. 
•    Governments create legislation against monopolistic practices, anti-
     competitive behavior, price fixing, or any actions that limit consumer choices
     or artificially inflate prices. 
(Accept any other correct relevant response.)                                 (4 x 2)    (8)
                                                                                        [40]

                                                             TOTAL SECTION B:            80

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                                                                ECONOMICS
                                   MARKING GUIDELINES
                                                                (PAPER 1)             GRADE 10

SECTION C

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

Your answer will be assessed as follows:

                                                                                MARK
                        STRUCTURE OF ESSAY
                                                                             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 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
  discuss/Analyse/Compare/Evaluate/Distinguish/Differentiate/Explain/          Max. 26
  Draw a graph and explain/Use the graph given and explain/Complete
  the given graph/Assess/Debate
  A maximum of 8 marks may be allocated for headings/examples.

  Additional part: Additional part: Critically discuss/Evaluate/Critically
  evaluate/Debate/Deduce/Compare/Distinguish/Interpret/How?/
                                                                               Max. 10
  Suggest
  A maximum of 2 marks may be allocated for mere listing of facts.
  Conclusion

  Any higher-order conclusion should include:
   • A brief summary of what has been discussed without repeating
     facts already mentioned
                                                                               Max. 2
   • 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

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                                                                ECONOMICS
                                   MARKING GUIDELINES
                                                                (PAPER 1)            GRADE 10

QUESTION 5: MACROECONOMICS                                  40 MARKS – 40 MINUTES

•   Discuss in detail the participants in the circular flow.                (26 marks)
•   Examine the importance of an open economy to South Africa.              (10 marks)

Introduction
• The circular-flow model of an open economy shows the workings of an economy
    that is open to foreign trade 
(Accept any other correct relevant introduction.)                        (Max. 2)

Body

MAIN PART

Households 
• Consist of an individual, a family or a group of people that live(s) in a home. 
• Are basic decision-making units in the economy because they determine what
   should be produced. 
• Households are owners of factors of production. 
• They sell factors of production to the factor market to earn income. 
• The income that households receive is used to buy goods to satisfy their
   needs.                                                                      (Max 8)

Businesses 
• Businesses combine and transform the factors of production to produce goods and
   services. 
• Basic productive sector in the economy. 
• They buy factors of production on the factor market. 
• They sell the final goods and services on the product market. 
• The aim of the business is to maximise profit. 
• Business enterprise strives to keep their income as high as possible and their
   expenses low.                                                            (Max 8)

Government 
• Consist of the local, provincial and national government. 
• Supply public goods that are not provided sufficiently by the public sector. 
• Takes care of public resources. 
• The goals of the government are economic growth, full employment, economic
   equity, price stability and BoP and exchange rate stability. 
• Government provides the framework within which the economy operates. 
                                                                                (Max 8)

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                                                                   ECONOMICS
                                     MARKING GUIDELINES
                                                                   (PAPER 1)             GRADE 10

Foreign sector 
• International trade that take place across the borders of a country. 
• No country can exist in isolation. 
• Countries trade because they have a shortage of natural resources.  
• They export goods and services. 
• The foreign sector exists so that countries can trade. .
(Accept any other correct relevant response.)                             (Maks. 8)
                                                                          (Max. 26)

ADDITIONAL PART
• Being an open economy allows South Africa to engage in international trade, both
    importing and exporting goods and services. This provides access to a broader
    market for South African products and opportunities for diversification. 
• International trade can stimulate economic growth by increasing market size and
    demand for South African products. Export-led growth can lead to increased
    production, job creation, and income generation. 
• An open economy attracts foreign direct investment (FDI) and portfolio investment.
    Foreign companies invest in South Africa, bringing capital, technology, and
    expertise, which can boost economic development. 
• South Africa can access resources that are not readily available domestically
    through international trade. This includes essential raw materials and energy
    resources required for industrial and manufacturing processes. 
• Openness to the global economy facilitates the exchange of ideas and technology.
    South Africa can adopt and adapt innovations from other countries, fostering
    technological advancements. 
• By participating in international markets, South Africa reduces its dependency on
    the domestic market. This diversification helps mitigate economic risks associated
    with domestic economic fluctuations. 
• Exports generate foreign exchange earnings, which can be used to pay for
    imports, service external debt, and build foreign exchange reserves. A stable
    foreign exchange position is crucial for economic stability. 
• Openness to international trade promotes cultural exchange and cross-cultural
    understanding, enriching South African society and promoting tolerance and
    diversity. 
(Accept any other correct relevant response.)                                  (Max. 10)

Conclusion
While circular flow is a simplification of reality, understanding the real flows and money
flows that occur in such a situation is an important foundation for understanding more
complex economies. 
(Accept any other correct relevant response.)                                       (Max. 2)   [40]

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                                                               ECONOMICS
                                   MARKING GUIDELINES
                                                               (PAPER 1)             GRADE 10

QUESTION 6: MACROECONOMICS                                  40 PUNTE – 40 MINUTES

•   Discuss in detail the effects of business cycles on the following:
    -   aggregate supply and aggregate demand
    -   employment
    -   exchange rates
    -   the economically vulnerable                                         (26 marks)
•   How do external factors influence economic fluctuations?                (10 marks)    [40]

Introduction

•   Business cycles refer to the phenomenon of successive periods of increasing and
    decreasing economic activity. 
(Accept any other correct relevant introduction.)                           (Max. 2)

MAIN PART

Changes in the aggregate demand and aggregate supply
• During the expansion phase of a business cycle, aggregate demand tends to
   increase as consumer confidence rises, leading to higher spending on goods and
   services. 
• Firms respond to increased demand by increasing production, which can lead to
   an upward shift in aggregate supply due to increased output and productivity
   gains. Prices might begin to rise moderately due to higher demand. 
• In a recession or contraction phase, aggregate demand declines as consumer
   spending decreases due to economic uncertainty, job losses, or reduced business
   investment. 
• This reduction in demand leads to a decrease in production and a leftward shift in
   aggregate supply. Unemployment rises, and businesses cut back on production,
   leading to a decrease in overall output and a potential decline in prices due to
   decreased demand.                                                          (Max 8)

Changes in employment
• During economic expansions, businesses experience a higher demand for goods
   and services, leading to increased production. 
• This often results in increased hiring to meet the rising demand, leading to lower
   unemployment rates as businesses expand their workforce. 
• Conversely, during economic contractions or recessions, businesses face reduced
   demand, leading to decreased production. 
• This may result in layoffs, reduced working hours, and higher unemployment rates
   as companies adjust to lower demand and try to cut costs.                  (Max 8)

                                              15

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                                                                 ECONOMICS
                                    MARKING GUIDELINES
                                                                 (PAPER 1)             GRADE 10

Changes in exchange rates
• In an economic expansion, a country's strong economic performance may lead to
   increased investor confidence, potentially attracting foreign investment. 
• This could strengthen the country's currency relative to other currencies. 
• During a recession, a country's currency might weaken as investors seek safer
   investments in more stable economies. 
• Reduced economic performance and lower interest rates can lead to a
   depreciation of the currency relative to others.                           (Max 8)

Impact on the economically vulnerable
• Economic expansions may lead to increased job opportunities, income growth, and
    improved living standards for the economically vulnerable. 
• Policies implemented during expansions might focus on social welfare, education,
    and employment, benefiting vulnerable populations. 
• The economically vulnerable, such as low-income households, might face higher
    unemployment, reduced access to social services, and increased financial strain
    during recessions. 
• Government assistance programmes may experience higher demand while facing
    budget constraints.                                                    (Max 8)
(Accept any relevant response.)                                            (Max. 26)

ADDITIONAL PART
• External factors play a significant role in influencing economic fluctuations by
   impacting various aspects of an economy. These factors can contribute to changes
   in economic growth, business cycles, and overall stability. 
• The performance of the global economy, including trends in major economies,
   international trade patterns, and global demand for goods and services, can
   significantly influence an individual country's economic conditions. 
• Changes in global economic growth rates, trade policies, or financial market trends
   can affect a nation's exports, imports, and overall economic activity.
• Geopolitical tensions, wars, trade disputes, or political instability in different parts
   of the world can impact economic stability. 
• Uncertainty stemming from geopolitical events can affect investor confidence,
   disrupt trade relationships, and lead to changes in market conditions, influencing
   economic fluctuations. 
• Events in financial markets, such as stock market crashes, banking crises,
   fluctuations in exchange rates, or disruptions in credit markets, can have
   widespread effects on an economy. 
• Financial market volatility can affect consumer and investor confidence, leading to
   changes in spending, investment behaviour, and overall economic
   performance. 
• Natural disasters like earthquakes, hurricanes, floods, or extreme weather events
   can cause widespread destruction, disrupting economic activities, infrastructure,
   and supply chains. 
• The economic repercussions of such events can lead to short-term disruptions and
   long-term effects on affected regions or entire economies. 

                                                16

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                                                                ECONOMICS
                                   MARKING GUIDELINES
                                                                (PAPER 1)            GRADE 10

•   Rapid advancements in technology and innovations can have profound effects on
    economies. 
• They can influence productivity, production methods, labour markets, and market
    structures, leading to structural changes and affecting economic fluctuations. 
• Changes in international policies, trade agreements, fiscal policies, monetary
    policies, or regulations imposed by international organisations or agreements can
    impact economic conditions. 
• Policy shifts in major economies can have spill-over effects on other countries,
    affecting trade, investment, and economic growth. 
• Health crises, pandemics (such as COVID-19), or outbreaks of diseases can have
    significant economic implications. 
• Measures taken to control the spread of diseases, including lockdowns, travel
    restrictions, and changes in consumer behaviour, can disrupt economic activities
    and global supply chains, influencing economic fluctuations. 
(Accept any relevant response.)                                               (Max. 10)

Conclusion
• External factors interact in complex ways and can amplify or mitigate economic
    fluctuations within a country. Policymakers, economists, and businesses closely
    monitor these external factors to understand their potential impact on the economy
    and implement measures to manage risks and navigate through economic
    fluctuations. 
(Accept any relevant response.)                                                 (Max. 2)

                                                                  TOTAL SECTION C:          40
                                                                               TOTAL:      100

                                               17

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