# Accounting Grade 11 P2 Gauteng November 2023 Memo (English)

> Grade 11 Accounting Paper 2 memorandum from the Gauteng November Exam 2023 (English), 20 pages. Read online or download the free PDF.

- Page: https://www.hlayiso.com/library/gr-11-accounting-p2-english-2023-possible-answers/53a6d2b9-6d3d-4b2e-baad-b064b8a631d6
- Updated: 2026-09-27
- Subject: Accounting
- Grade: Grade 11
- Language: English
- Document type: Memorandum
- Year: 2023
- Exam period: Gauteng November Exam
- Paper: 2
- Curriculum: CAPS
- Pages: 20

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                  PROVINCIAL EXAMINATION
                        JUNE 2023

           PROVINCIAL EXAMINATION
                NOVEMBER 2023
                    GRADE 11
             MARKING GUIDELINES

                 ECONOMICS (PAPER 2)

20 pages

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                                                             ECONOMICS
                                MARKING GUIDELINES
                                                             (PAPER 2)         GRADE 11

SECTION A (COMPULSORY)
QUESTION 1
1.1 MULTIPLE-CHOICE QUESTIONS

   1.1.1   B – Less innovation ✓✓

   1.1.2   C – fixed ✓✓

   1.1.3   A – the cost per unit decreases and the output increase ✓✓

   1.1.4   D – Infinite ✓✓

   1.1.5   A – A common external tariff with the rest of the world ✓✓

   1.1.6   D – capital ✓✓

   1.1.7   C – greenhouse ✓✓

   1.1.8   B – environmentally friendly production activities ✓✓              (8 x 2)   (16)
1.2 MATCHING COLUMNS

   1.2.1   G – The difference between the business’s total income from the sale of
               products and explicit costs ✓

   1.2.2   D – Usually, they operate in an oligopoly market structure ✓

   1.2.3   F – Long enough for all factor inputs to be varied ✓

   1.2.4   A – Demand increases when income increases ✓

   1.2.5   C – Firms that produce goods and services in several countries ✓

   1.2.6   H – Purchasing financial assets that can easily be converted into cash ✓

   1.2.7   E – international agreements aimed at reducing greenhouse gases ✓

   1.2.8   B – The variety of plant and animal life in a specific area ✓      (8 x 1)    (8)
1.3 GIVE A TERM

   1.3.1   Relative prices ✓

   1.3.2   Average revenue ✓

   1.3.3   Elasticity of supply ✓

   1.3.4   Comparative advantage ✓

   1.3.5   Subsidies ✓

   1.3.6   Recycling ✓                                                        (4 x 1)    (4)
                                                                   TOTAL SECTION A:      30

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                                                              ECONOMICS
                                  MARKING GUIDELINES
                                                              (PAPER 2)            GRADE 11

SECTION B

Answer any TWO of the three questions in this section in the ANSWER BOOK.

QUESTION 2: MICROECONOMICS

2.1   Answer the following questions.

      2.1.1   Name any TWO examples of variable costs.

              • Water and electricity ✓
              • Raw materials ✓
              • Wages ✓
              • Delivery costs ✓
              (Accept any other correct relevant response.)                        (2 x 1)   (2)

      2.1.2   Why are the AR and MR curves equal in the perfect market?

              •   The AR and MR is the same because the firm is selling at the market
                  price. ✓✓
              • The firm is a price-taker, the price is determined on the market. ✓✓
              • The firm does not have any influence on the setting of the price. ✓✓
              (Accept any other correct relevant response.)                        (1 x 2)   (2)

2.2   DATA RESPONSE

      2.2.1   Identify an example found in a product market from the information
              above

              •   Vehicles ✓                                                                 (1)

      2.2.2   Name ONE factor of production missing from the above information

              •   Entrepreneurship ✓                                                         (1)

      2.2.3   Briefly describe the term market.

              • A mechanism that brings together demand and sellers ✓✓
              (Accept any other correct relevant response.)                                  (2)

      2.2.4   Explain the positive impact of competition on the markets

              •   Competition results in markets being innovative because innovation is
                  crucial to success. ✓✓
              • Innovation leads to new products and new production technologies
                  being developed. ✓✓
              • Competition leads to consumer choice in markets. ✓✓
              • Competition leads to fair and possibly lower prices in markets. ✓✓
              (Accept any other correct relevant response.)                                  (2)

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                                                               ECONOMICS
                                  MARKING GUIDELINES
                                                               (PAPER 2)             GRADE 11

      2.2.5   How do natural disasters impact the supply of factors of production
              in the market?

              •   Fewer products will be available in the market and firms will receive
                  less income. ✓✓
              • Selling of inferior products or selling of products on the black market
                  will occur as the market does not have enough products to supply to
                  the product market. ✓✓
              (Accept any other correct relevant response.)                         (2 x 2)   (4)

2.3   DATA RESPONSE

      2.3.1   In the graph above, at which price does allocative efficiency occur?

              •   A✓                                                                          (1)

      2.3.2   Which letter indicates the profit maximisation of the firm above?

              •   C✓                                                                          (1)

      2.3.3   Briefly describe the term imperfect market.

              •   It is a market in which perfect competition does not exist ✓✓
              (Accept any other correct relevant response.)                                   (2)

      2.3.4   What is likely to happen to the demand for this firm’s output in the
              long run?

              •   The short-run profit position will encourage other firms to enter the
                  market, and the demand curve will shift to the left. ✓✓
              (Accept any other correct relevant response.)                                   (2)

      2.3.5   Explain the pattern of the MC curve.

              •   The marginal cost curve first slopes downwards sharply, then gradually
                  slopes upwards, because it is a change in total cost. ✓✓
              •   Under perfectly competitive markets, the MC curve is the same as the
                  firm's supply curve. ✓✓
              •   The curve begins at the same place as the AVC curve. ✓✓
              (Accept any other correct relevant response.)                       (2 x 2)     (4)

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                                                                ECONOMICS
                                   MARKING GUIDELINES
                                                                (PAPER 2)             GRADE 11

2.4   Briefly discuss the SMART principle in designing the objectives of
      businesses.

      Specific: ✓
      • The idea must be identified and understood, ✓✓ e.g. the business must
          become the most profitable in the country. ✓
      Measurable: ✓
      • It must be possible to test or measure whether the goal has been reached. ✓✓
          e.g. In order for a business to reach its goal it must make a profit of R5 000 a
          month ✓
      Attainable: ✓
      • All stakeholders must agree to the set goal. ✓✓
      Realistic: ✓
      • The goal must be within reach for the business. e.g. The business must be
          capable of reaching the required profit ✓✓
      Time specific: ✓
      • There must be a time limit on achieving a goal. e.g. the business must be the
          most profitable within a period of five years. ✓✓
      (Accept any other correct relevant response.)                                   (4 x 2)    (8)

2.5   How will a firm's objective in an oligopolistic market differ from the objective
      of a firm in a perfectly competitive market?

      •   Perfect competition assumes profit maximising. ✓✓
      •   Oligopoly usually assumes collusion and a less volatile price. It still can
          assume profit maximising. ✓✓
      •   However, with collusion the profit maximising output/price can be for the
          industry and each firm is given an output quota which is not necessarily the
          profit maximising output for that firm. ✓✓
      •   A firm can compete by non-price competition or break the agreement. ✓✓
      (Accept any other correct relevant response.)                                              (8)
                                                                                                [40]

QUESTION 3: CONTEMPORARY ECONOMIC ISSUES

3.1   Answer the following questions.

      3.1.1   Name any TWO modes of transport involved globally.

              •   Air ✓
              •   Road ✓
              •   Sea ✓
              •   Rail ✓                                                              (2 x 1)    (2)

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                                                               ECONOMICS
                                   MARKING GUIDELINES
                                                               (PAPER 2)             GRADE 11

      3.1.2   How can the government successfully use command and control
              measures to ensure environmental sustainability?

              •  Setting maximum permitted levels for resources e.g. emission (carbon
                 dioxide), resource use (tons of fish) or minimum acceptable levels of
                 environmental quality (in plantations). ✓✓
              • Setting quantity standards: these methods focus on amounts or
                 quantities of pollution caused, irrespective of the environmental impact,
                 e.g. motorcar gas emissions. ✓✓
              (Accept any other correct relevant response.)                          (1 x 2)   (2)

3.2   DATA RESPONSE

      3.2.1   Identify ONE consequence of globalisation from the information
              above.

              •   Ecological destruction ✓
              •   Climate change ✓
              •   Resource depletion ✓                                                         (1)

      3.2.2   Which global institution assists countries in financial crisis?

              •   The IMF ✓
              •   The World bank ✓                                                             (2)

      3.2.3   Briefly describe the term globalisation.

              •  Refers to the increasing interconnectedness and interdependence of the
                 world's economies, societies and cultures ✓✓
              (Accept any other correct relevant response.)                                    (2)

      3.2.4   What are the effects of globalisation on developing countries?

              •  Increased economic growth and investment, as well as access to new
                 technologies and markets ✓✓
              • Increased competition for jobs, loss of cultural identity, and increased
                 inequality. ✓✓
              • Local firms have to compete with multinational firms for business. ✓✓
              (Accept any other correct relevant response.)                      Any (2 x 1)   (2)

      3.2.5   Explain the effects of economic integration within the globe.
                                                                                               (2)
              •  Helps developing nations take advantage of economies of scale by
                 integrating with developed nations. ✓✓
              • Expands production capacity and creates new opportunities. ✓✓
              • Leads to the development of new products with quality output. ✓✓
              • Increases bargaining power, efficiency, and productivity levels of small
                 countries. ✓✓
              (Accept any other correct relevant response.)                    Any (2 x 2)     (4)

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                                                               ECONOMICS
                                  MARKING GUIDELINES
                                                               (PAPER 2)             GRADE 11

3.3   DATA RESPONSE

      3.3.1   Identify the brown environmental issue illustrated above.

              •   Waste pollution/Land pollution ✓                                            (1)

      3.3.2   Which areas are often highly polluted in a country?

              •   Metropolitan areas ✓                                                        (1)

      3.3.3   Briefly describe 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   Explain environmental taxes as a means to sustain the environment.

              •   Environmental tax is imposed on the output or consumption of a good
                  wherever external environmental costs are generated. ✓✓
              • Are also known as green tax and are charged on items such as
                  tyres. ✓✓
              • The good already has a price and the tax has the effect of increasing
                  the price. ✓✓
              • To achieve a socially efficient output, the rate of the tax should be
                  equal to the marginal external cost. ✓✓
              (Accept any other correct relevant response.)                     Any (2 x 1)   (2)
      3.3.5   Why are industries often blamed for contributing to environmental
              and air pollution?

              •   They do not stick or comply with the production levels that is minimised
                  according to the law. ✓✓
               • They always consider their side of bargaining for more profitability than
                  complying with the set minimum production levels. ✓✓
               • There is little if any investment in the restoration and renewal of the
                  environment they use for their production means. ✓✓
              (Accept any other correct relevant response.)                     Any (2 x 2)   (4)

3.4   Explain the main objectives of the Millennium Development Goals (MDGs).

      Concerns over environmental sustainability have the following aims:
      • Integrating the principles of environmentally sustainable development into
          countries’ policies and programs to reverse the loss of environmental
          resources ✓✓
      • Reducing the rate of biodiversity loss significantly by 2010 ✓✓
      • Reducing half the proportion of people without sustainable access to safe
          drinking water and basic sanitation ✓✓
      • Achieving significant improvements in the lives of at least 100 million slum
          dwellers by 2020 ✓✓
      (Accept any other correct relevant response.)                                (4 x 2)    (8)

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                                                                ECONOMICS
                                   MARKING GUIDELINES
                                                                (PAPER 2)             GRADE 11

3.5   How can floods negatively affect the economy?

      •   The disruption to business and consumer activity due to the destruction of both
          public and private infrastructure. ✓✓
      • Disrupt the flow of food and consumer goods within the economy. ✓✓
      • Increased local production costs which result in the increase in the market
          prices of goods and services. ✓✓
      • Increased prices lead to an increase in inflation. ✓✓
      • Importing food from other countries at higher prices. ✓✓
      (Accept any other correct relevant response.)                                              (8)
                                                                                                [40]

QUESTION 4: MICROECONOMICS AND CONTEMPORARY ECONOMIC ISSUES

4.1   Answer the following questions.

      4.1.1   Name any TWO barriers to entry in a monopoly market.

              •    Patent ✓
              •    Licensing ✓
              •    Copyrights ✓
              •    Economies of scale ✓
              •    Exclusive ownership of resources ✓                            Any (2 x 1)     (2)

      4.1.2   How will the removal of South Africa from the free trade zone impact
              the country’s economy?

              •   It would cause job losses and decrease production in certain industries
                  such as wine industry and tourism industry. ✓✓
              •   High tariffs will be charged to South Africa as it will no longer a
                  beneficial to the union. ✓✓
              (Accept any other correct relevant response.)                           (1 x 2)    (2)

4.2   DATA RESPONSE

      4.2.1   Identify the constraint faced by businesses in the extract above.

              •   Loadshedding ✓
              •   Power outages ✓
              •   High start-up costs ✓                                                          (1)

      4.2.2   Name any ONE example of explicit costs incurred by businesses.

              •   Water and electricity ✓
              •   Payments for wages and salaries ✓                                              (1)

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                                                                ECONOMICS
                                   MARKING GUIDELINES
                                                                (PAPER 2)             GRADE 11

      4.2.3   Briefly describe the term revenue.

              •  The income earned by a business from the sale of goods and
                 services ✓✓
              (Accept any other correct relevant response.)                                     (2)

      4.2.4   What should the business look at when deciding on a level of output?

              •  The business should look at its MC and MR, where the two meet, it
                 should be the output. ✓✓
              (Accept any other correct relevant response.)                                     (2)

      4.2.5   Analyse the role of profit in a business.

              •  Profit is the amount that a business ultimately earns, after subtracting
                 expenses, such as operating costs from gross revenue. ✓✓
              • Earning a healthy profit is essential to the healthy operation of any
                 business. ✓✓
              • Profit provides business with the money to pay expenses, and pay off
                 debts and invest in growing business. ✓✓
              (Accept any other correct relevant response.)                           (2 x 2)   (4)

4.3   DATA RESPONSE

      4.3.1   Identify the type of economy in which the primary sector will
              contribute the most to GDP
                                                                                                (1)
              •   Slowly developing ✓

      4.3.2   Name any ONE fast developing country in Africa.

              • Rwanda ✓
              • Côte d'Ivoire/Ivory Coast ✓
              • Benin ✓
              • Ethiopia ✓
              • Tanzania ✓                                                                      (1)
      4.3.3   Briefly describe the term North/South divide.

              •   The difference in wealth between the rich countries of the world in the
                  North and the poor countries in the South ✓✓                                  (2)

      4.3.4   How does access to safe drinking water influence life expectancy?

              • More clean water allows people to experience a cleaner, more sanitary
                life. This cleanliness can reduce exposure to diseases caused by
                unclean water or poor hygienic conditions. ✓✓
              (Accept any other correct relevant response.)                                     (2)

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                                                                 ECONOMICS
                                    MARKING GUIDELINES
                                                                 (PAPER 2)              GRADE 11

      4.3.5   Compare the characteristics of rich (North) and poor (South)
              countries

                       NORTH                                         SOUTH
      •   Highly developed infrastructure ✓✓ •        Lack of and/or weak infrastructure ✓✓
      •   High level of consumption and        •      Low levels of production and
          production ✓✓                               consumption ✓✓
      •   Industrialised countries             •      Non-industrialised
      •   Average incomes are very high. ✓✓ •         Average income is very low. ✓✓
      •   Developed countries                  •      Developing or emerging economies ✓✓
                                      (Max. 2)                                        (Max. 2)
                                                                                   Any (2 x 2) (4)

4.4   Briefly explain using the graphs below, how prices are determined for an
      individual producer in a perfect market.

      • The market forces of demand and supply determines the price. ✓✓
      • The sellers are insignificant to influence the market price, hence they are price
         takers. ✓✓
      • Each individual producer is forced to sell at the market price. Thus, the demand
         curve is flat/horizontal/perfectly elastic (curve DD). ✓✓
      • The individual producer will not increase his price because he would not be able
         to sell any products, nor lower his price because he will be able to sell all his
         products at market price. ✓✓
      (Accept any other correct relevant response.)                                     (4 x 2)    (8)

4.5   What are the advantages of promoting globalisation?

      • Provides businesses with access to new markets and customers, which can
        help them expand their operations and increase their profits. ✓✓
      • Improves efficiency by allowing countries to specialise in the production of
        goods and services that they are most efficient at producing, and to trade with
        other countries for goods and services that they are less efficient at
        producing. ✓✓
      • Globalization can facilitate greater cooperation between countries on issues
        such as trade, security, and the environment. ✓✓
      • Increases economic growth by increasing trade, investment, and the flow of
        capital between countries. ✓✓
      • This can lead to increased productivity and higher living standards. ✓✓
      (Accept any other correct relevant response.)                             Any (4 x 2)        (8)
                                                                                                  [40]

                                                                        TOTAL SECTION B:           80

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                                                              ECONOMICS
                                  MARKING GUIDELINES
                                                              (PAPER 2)            GRADE 11

SECTION C

Answer ONE of the two questions in 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.                                        Max. 2
•   A good starting point would be to define the main concept related to the
    question topic.
•   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/       Max. 26
Analyse/Compare/Evaluate/Distinguish/Differentiate/Explain/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.                       Max. 10
Additional part: Critically discuss/Evaluate/Critically evaluate/Debate/
Deduce/Compare/Distinguish/Interpret/How? /Suggest
A maximum of 2 marks may be allocated for mere listing facts.
Conclusion
Any higher-order conclusion should include:                                        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 5: MICROECONOMICS                                   40 MARKS – 40 MINUTES

• Discuss, in detail, the price elasticity of demand (PED) without the aid of
  graphs.                                                                 (26 marks)

• How can government increase the price elasticity of supply of essential goods?
                                                                      (10 marks)            [40]

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                                                               ECONOMICS
                                  MARKING GUIDELINES
                                                               (PAPER 2)             GRADE 11

INTRODUCTION

The price elasticity of demand can be defined as the percentage change in quantity
demanded if the price of a product changes or price elasticity is a measure of how
responsive demand is to a change in price. ✓✓
(Accept any other correct relevant lower-order introduction.)                    (Max. 2)

BODY: MAIN PART

Unitary elasticity ✓

•   Unitary elasticity occurs when a specific change in price causes the same change in
    quantity demanded. ✓✓
•   For example, when price increases by 20%, the quantity demanded will decrease by
    20%. ✓✓
•   Price elasticity of demand is equal to one (PED = 1). ✓✓
•   When producers face a unit elastic demand curve, there is no reason for them to
    change the price of their product. ✓✓
•   Their sales income will remain constant as the quantity will decrease by exactly the
    same percentage as the increase in the price of the product. ✓✓

Relative inelastic demand

•   Relative inelastic demand occurs when a change in price will cause a smaller
    percentage change in quantity demanded. ✓✓
•   Basic, necessary foodstuff that have no close substitutes, such as maize meal is an
    example of a product that tends to be inelastic. ✓✓
•   Other examples include goods and services which require a small portion of the
    consumer’s income such as matches, salt etc. and habit-forming products such as
    cigarettes and alcohol. ✓✓
•   Price elasticity of demand will be less than one (PED < 1). ✓✓
•   A relatively inelastic demand encourages producers to increase the price of their
    products as they will be able to increase their sales income. ✓✓
•   A relative inelastic demand curve can be represented by a steep curve. ✓✓
                                                                         Max. (2 x 2) (4)

Perfectly inelastic demand

•   A perfectly inelastic demand refers to a demand that shows no response at all to
    price changes. ✓✓
•   The price elasticity of demand in this situation is zero (PED = 0). ✓✓
•   It implies that a change in price will cause no change in the quantity that consumers
    demand. ✓✓
•   The demand curve will be a vertical line, parallel to the price axis. The graph shows
    that consumers plan to buy a fixed quantity of the product at a specific price. ✓✓
•   Producers can increase their income by increasing the price of their product as the
    quantity demanded will not change.

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                                                                ECONOMICS
                                   MARKING GUIDELINES
                                                                (PAPER 2)              GRADE 11

Relative inelastic demand

•   Relative elastic demand occurs when a change in price will cause a greater
    percentage in quantity demanded. ✓✓
•   The smallest change in price will cause a large change in quantity demanded.
•   This happens to products which have close substitutes. ✓✓
•   A price increase will cause most consumers not to buy the original product, but
    rather buy the substitute e.g. hot dogs and hamburgers. ✓✓
•   The price elasticity will be greater than one (PED > 1). ✓✓
•   Producers will be encouraged to decrease the prices of their products as the
    decrease in the price will lead to a larger than proportionate increase in the quantity
    demanded of the product. ✓✓
•   A relatively elastic demand curve can be illustrated by a relatively flat demand
    curve. ✓✓

Perfectly elastic demand ✓

  • The smallest change in price will cause an infinitely large change in quantity
    demanded. ✓✓
  • The quantity demanded will drop to zero. PED = ∞. ✓✓
  • A perfectly elastic demand curve can be shown with a horizontal straight line. ✓✓
  • The curve illustrates that consumers are willing to buy any quantity of a product at a
    certain price level. ✓✓
  • However, if the price increases only fractionally, there will be no demand for the
    product. ✓✓
(A maximum of 8 marks for headings/examples.)
(Accept any other correct relevant response.)                                    (Max. 26)

ADDITIONAL PART

How can government increase the price elasticity of supply of essential goods?

•   Governments might attempt to increase the elasticity of the supply of a product, for
    example training programmes to increase the availability of labour with appropriate
    skills, providing loans for capital investment, etc. ✓✓
•   By investing in infrastructure such as roads, ports, and power supply, governments
    can reduce the cost of production and transportation, making it easier and more
    affordable for suppliers to bring essential goods to the market. ✓✓
•   Governments can reduce trade barriers such as tariffs and quotas, which can
    increase competition and encourage suppliers to provide more essential goods at
    lower prices. ✓✓
•   Governments can encourage innovation in the production and distribution of
    essential goods by providing funding for research and development or offering tax
    incentives to companies that invest in new technologies. ✓✓

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                                                                ECONOMICS
                                   MARKING GUIDELINES
                                                                (PAPER 2)             GRADE 11

•   Governments can encourage competition among suppliers of essential goods by
    promoting market entry and preventing monopolies from forming, which can
    increase the price elasticity of supply. ✓✓
• Governments can provide subsidies to producers of essential goods to reduce their
    costs of production, which can encourage them to increase their supply of these
    goods. ✓✓
(A maximum of 2 marks may be allocated for mere listing of facts.)
(Accept any other correct relevant response.)                                  (Max. 10)

CONCLUSION

Price elasticity of demand helps economists, producers and the government to make
valuable predictions about what will happen when the price of a product increases or
decreases. ✓✓
(Accept any other relevant correct higher-order conclusion.)                    (Max. 2)

QUESTION 6: CONTEMPORARY ECONOMIC ISSUES                       40 MARKS – 40 MINUTES

•   Examine, in detail, the problems threatening the environment.              (26 marks)

•   Evaluate the implementation of the goals of the World Summit on Sustainable
    Development in South Africa.                                      (10 marks)              [40]

INTRODUCTION

Environment refers to the physical surroundings and physical conditions that affect
people’s lives. It includes land, sea, and the atmosphere. As such it provides a flow of
goods and services such as: materials e.g. soil, water, minerals and timber and energy
fossil fuels, tides and winds. ✓✓
(Accept any other correct relevant lower-order introduction.)                      (Max. 2)

BODY : MAIN PART

Natural environmental degradation ✓

• Natural environment degradation refers to the destruction and loss of native species
  and natural processes such that only certain components of the original biodiversity
  and ecological functions persist, often with significantly altered natural
  communities. ✓✓
• It includes situations that arise from local influences such as extreme weather, local
  infections etc. ✓✓
• It is estimated that in South Africa, water erosion affects 6.1 million hectares of
  cultivated soil. ✓✓
• Wind erosion has a more severe effect on cultivated soil, estimated at 10.9 million
  that is currently selected. ✓✓
• Humans alter the natural environment in three major ways:
  - Transforming the land and the sea, through land clearing, forestry, grazing,
      urbanisation, mining, trawling, dredging, and so on (activities often called
      "development"). ✓✓
  - Adding or removing species and genetically distinct populations via habitat
      alteration or loss, hunting, fishing, and introductions and invasions of species;
      and ✓✓
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                                                                ECONOMICS
                                   MARKING GUIDELINES
                                                                (PAPER 2)             GRADE 11

  - Altering the major biogeochemical cycles of carbon, nitrogen, water and synthetic
     chemicals. ✓✓
• Most degradation of natural resources results from the cumulative activities of
  farmers, households and industries, all trying to improve their socio-economic well-
  being. ✓✓

Human-induced environmental degradation. ✓

• The excessive claims of humans on nature, has an impact in three areas, namely:
  non-renewable resources, renewable resources and economic waste. ✓✓

Economic waste ✓

• Waste occurs in the economy because of a simple natural law: the total mass of
  inputs to a transformation process equal to the total mass of outputs. If inputs do not
  emerge as desired products, they must therefore appear as unwanted by-products or
  waste. ✓✓
• Economic waste causes pollution and occurs in two forms, namely solid waste and
  gas waste. ✓✓

Pollution

Pollution is the emission of residual waste on the environment which is harmful to the
plants, humans and animals. Therefore, pollution is also the inability of the environment
to absorb the waste that is continuously dumped. ✓✓

Solid waste ✓

• In solid form, waste presents itself as chemical liquids and concrete things, e.g. used
  tyres and plastic bags. These are synthetic things which do not occur in nature and
  nature does not have a way to decompose them which causes land or environmental
  pollution. ✓✓

• Land pollution or environmental pollution: ✓ This refers to the deterioration in the
  quality of land and fertility of soil. The causes of land pollution are poor agricultural
  practices, increased mineral exploitation, industrial waste dumping and indiscriminate
  disposal of urban wastes. Land pollution can also result from the use of chemicals in
  weed-killers and pesticides. ✓✓
• Some harmful chemical particles are so small that they are carried in gasses, for
  example the acid in acid rain which causes air pollution. ✓✓
• Residual waste is created in consumption, for example, household waste, scrapped
  consumer durables and litter. ✓✓

Other forms of pollution

• Water pollution: ✓ Takes place when water from the rivers and oceans is
  contaminated by sewage, oil spillage, release of chemicals into the rivers and
  oceans, mining activities etc. Water pollution harms animals, fish, humans and plants.
  It causes illnesses and leads to poor hygiene and health risks.✓✓

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                                                              ECONOMICS
                                  MARKING GUIDELINES
                                                              (PAPER 2)             GRADE 11

• Food pollution: Takes place during the production of food either through the use of
  dangerous pesticides by farmers, modified food or contamination of food during the
  production process. ✓✓
• Noise pollution: ✓ It is caused by industries that use machines which release too
  much noise, noise from cars and aeroplanes and loud music. Too much noise can
  damage the eardrums and affect hearing (partial or total loss of hearing). ✓✓

Poverty and environmental degradation ✓

• Difficulty in meeting community needs often leads to pressure on land, over-
  exploitation of soils and deforestation. ✓✓
• Poverty often causes people to put relatively more pressure on the environment
  which results in larger families (due to high death rates and insecurity), improper
  human waste disposal leading to unhealthy living conditions, more pressure on fragile
  land to meet their needs, overexploitation of natural resources and more
  deforestation. ✓✓
• Insufficient knowledge about agricultural practices can also lead to a decline in crop
  yield and productivity. ✓✓
• Environmental problems cause more suffering in the community as environmental
  damage increases the impact of floods and other environmental catastrophes. Soil
  erosion, land degradation and deforestation lead to a decline in food production, and
  this, along with a shortage of wood for fuel, contributes to inflation. ✓✓
• All economic activities are directly, indirectly or remotely based on natural resources
  and any pressure on natural resources can cause environmental stress.
  Environmental damage can prevent people, especially the poor, from having good
  and hygienic living standards. ✓✓
• Lack of education and improper implementation of poverty eradication policies at the
  grass-root level have increased poverty and environmental degradation. Due to a lack
  of sufficient resources and improper knowledge, poverty-stricken people tend to
  overuse every resource available to them when their survival is at stake. ✓✓

Agricultural development and deforestation ✓

• South Africa’s agricultural sector is one of the world’s most diverse, consisting of
  corporate and private intensive and extensive crop farming systems, including
  vegetable, fruit, nuts, and grain production. ✓✓
• The well-developed commercial farming sector in South Africa is the backbone of the
  country’s agricultural economy and in 2020 showed the best growth rate of all
  economic sectors, coming in at 13,1 percent. ✓✓
• Many farming practices – such as burning fields and using gasoline-powered
  machinery – are significant contributors to the buildup of greenhouse gases in the
  atmosphere. ✓✓
• The agricultural sector consumes about 69 percent of the planet's fresh water.
  Without creative conservation measures in place, agricultural production consumes
  excessive water and degrades water quality. This adversely impacts freshwater
  systems throughout the country. ✓✓

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                                                                 ECONOMICS
                                    MARKING GUIDELINES
                                                                 (PAPER 2)             GRADE 11

• Agriculture is the leading source of pollution in many countries. Pesticides, fertilizers
  and other toxic farm chemicals can poison fresh water, marine ecosystems, air and
  soil. They also can remain in the environment for generations. Many pesticides are
  suspected of disrupting the hormonal systems of people and wildlife. Fertiliser run-off
  impacts waterways and coral reefs. ✓✓
• From 2001 to 2021, South Africa lost 1,53 Mha of tree cover, equivalent to a 26%
  decrease in tree cover since 2000, and 945 Mt of CO₂e emissions. ✓✓
• One of the main causes is agriculture. Farms needs many acres of land, especially
  commercial farming. It is bad enough cutting down forests, but farmers also use
  pesticides to kill off species that eat their crops. Some of this pesticides end up in
  rivers, killing inhabitants near the area. ✓✓
• Deforestation has the following effects:

   •   It reduces the habitats of plant and animal species. ✓✓
   •   It influences rainfall patterns. ✓✓
   •   It decreases rain formation. ✓✓

Land degradation ✓

• Land degradation is a mismatch between land quality, land usage and land
  productivity. ✓✓
• Land degradation caused by woody encroachment is a major bio-social issue for the
  rangelands of South Africa, exacerbated by intersecting factors including climate
  change, historical land tenure policies and post-apartheid reforms. ✓✓
• Land degradation is a negative trend in land conditions, caused by direct or indirect
  human-induced processes including anthropogenic climate change, expressed as
  long-term reduction or loss of biological productivity, ecological integrity or value to
  humans. ✓✓
• Communal land degradation in South Africa has been especially characterized by
  woody plant encroachment. This phenomenon involves an increase in tree or shrub
  densities in savannas, altering ecosystem functions and services, by reducing water
  availability and total productivity of the vegetation, altering fire regimes, carrying
  capacity, biodiversity and carbon storage capacity. ✓✓
• Land consumption means that increasing numbers of ecosystems are destroyed to
  create space for urban, industrial and farming developments. Some productive land is
  consumed by more roads and railway lines. The biodiversity (animals, plants and
  water) that is destroyed by these developments can never be reclaimed. ✓✓
• Soil erosion: There is no known way that we can replace our soil. In South Africa
  annual soil losses are estimated at 300 – 400 million tons, nearly three tons per
  hectare. If the world’s soil resources are being so rapidly depleted, the ability of the
  world to feed itself is also being affected. ✓✓

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                                                                ECONOMICS
                                   MARKING GUIDELINES
                                                                (PAPER 2)             GRADE 11

Industrial development, mining, and environmental degradation ✓

• Pollution from mining activities is a direct cause of groundwater pollution in South
  Africa. ✓✓
• Mining exploration has a negative impact on nature removal of vegetation for survey
  lines, vegetation damage and soil erosion from vehicle tracks, abandoned equipment
  and supplies. ✓✓
• When some of the abandoned pits in South Africa become filled with stagnant water
  they become infested with mosquitos and become a breeding site for malaria and
  other diseases. This has a major impact on the sustainability of animals and on
  people, as the diseases are very deadly. ✓✓
• The risks from unrehabilitated mines extend far beyond the people who access the
  sites – they risk polluting the water of millions of South Africans. ✓✓
• Coal across South Africa is found predominantly in ores with sulfur-bearing minerals.
  When these ores come into contact with water and air, sulfuric acid is created, which
  can lead to further leaching of heavy metals from ores. This reaction poses significant
  risks to water and agricultural land in many parts of South Africa, including
  Mpumalanga.✓✓
• Residual coal deposits in Mpumalanga are also accessed by artisanal miners, known
  as zama zamas [an isiZulu term meaning “to try and try again”]. Artisanal miners may
  eke out a living, but at high risk: they have little protective equipment and enjoy no
  labour or health and safety protections while working in dangerous underground mine
  shafts. ✓✓
• Chlorofluorocarbon (CFCs): These are gases that once were used as propellants in
  aerosol cans and as coolants in air conditioners and refrigerators. They appear to
  have destroyed some of the ozone layer of the atmosphere. Ozone is vital to the
  sustainability of humans and animals. Reducing the ozone (ozone depletion) causes,
  among others, increasing ill health such as respiratory problems, pneumonia, heart
  diseases and skin cancer in humans and animals. ✓✓
• Carbon dioxide: enormous quantities of fossil fuels – coal, oil, and gas, have been
  burned by industries. When they burn, they produce carbon dioxide. Carbon dioxide
  is absorbed into the oceans and used by plants in photosynthesis. If too much carbon
  dioxide and other gases are emitted in the atmosphere, this will create the
  greenhouse effect, trapping radiation arriving at the earth and produced on the earth,
  leading to global warming. ✓✓

Human settlement, urbanisation, and environmental degradation ✓

• According to Statistics South Africa's General Household Survey of 2021, slightly
  more than eight-tenths (83,6%) of South African households lived in formal dwellings
  in 2021, followed by 11,7% in informal dwellings, and 4,2% in traditional
  dwellings. ✓✓
• South Africa is urbanising rapidly: 63% of South Africans are already living in urban
  areas and the statistics will rise to 71% by 2030. ✓✓
• The most important reasons behind rapid urbanising in South Africa are rural-urban
  migration and natural population growth that result in the proliferation of informal
  settlements. It is estimated that at least 1.2 million households reside in shacks in at
  least 2 700 shack areas nationwide. ✓✓

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                                                               ECONOMICS
                                   MARKING GUIDELINES
                                                               (PAPER 2)             GRADE 11

• Rural-urban migration helps reduce pressure on the rural environment but puts
   pressure on the urban environment such as demand for land and services. ✓✓
• Unplanned informal settlements are one of the consequences of large-scale rural
   urban migration. ✓✓
• The government struggles to meet the community needs. Run-off from storm water is
   a common problem in unplanned settlements due to the lack of proper sewage and
   drainage systems. ✓✓
• Unplanned settlements with no sanitation may lead to waterborne diseases such as
   typhoid fever, diphtheria and cholera. ✓✓
(A maximum of 8 marks for headings/examples)
(Accept any other correct relevant response.)                                (Max. 26)

ADDITIONAL PART

The goals of the WSSD were not successfully implemented in South Africa, because:
• Poverty eradication – the WSSD has not been that successful as more than half of
  the people in South Africa are living in harsh poverty / surviving on less than one US
  dollar per day. ✓✓
• Unemployment is on the increase and also increases the poverty level. ✓✓
• Water and sanitation – South Africa is in extreme drought in certain parts, and many
  communities still lack sanitation facilities. ✓✓
• Energy – South Africa still does not make sufficient use of renewable energy sources
  for sustainable development. ✓✓
• Chemical usage – South Africa is not achieving the objectives of reducing pollution
  levels and greenhouse gases. ✓✓
• Eskom, as the major polluter in South Africa, is still using coal as the primary source
  of electricity. ✓✓
• Environmental management – South Africa is not largely successful in terms of
  improving water quality/biodiversity/forestry destruction, etc. ✓✓

The goals of the WSSD were partially successful, because:

• Environmental management – South Africa is gradually phasing in environmentally
   friendly energy resources. ✓✓
• Solar farms are increasingly feeding the national power grid as the number of solar
   farms is increasing. ✓✓
• Many houses were fitted/supplied with solar geysers to reduce the dependency on
   the national power grid. ✓✓
• Eskom is using new technology in its coal-fired generators that reduces air pollution.
• Informal settlements were also supplied with electricity to reduce the burning of coal,
   thus reducing air pollution. ✓✓
• The government has made the provision of water a priority through the RDP and
   many communities have access to water, compared to previous governments. ✓✓
(A maximum of 2 marks may be allocated for mere listing of facts.)
(Accept any other correct relevant response.)                                   (Max. 10)

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                                                                  ECONOMICS
                                    MARKING GUIDELINES
                                                                  (PAPER 2)             GRADE 11

CONCLUSION

Environment is important for the continuation of life therefore it is important for the
present generation to make sure that it is used without compromising the needs of the
future generation. ✓✓
(Accept any other relevant correct higher-order conclusion.)                          (Max. 2)   [40]

                                                                       TOTAL SECTION C:           40

                                                                                     TOTAL:      150

                                                 20

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