# Economics Grade 10 P1 Gauteng November 2018 Memo (English) > Grade 10 Economics Paper 1 memorandum from the Gauteng November 2018 (English), 17 pages. Read online or download the free PDF. - Page: https://www.hlayiso.com/library/gr10-ecn-p1-english-november-2018-possible-answers/25ca2d96-001f-4d8d-93ba-3f3e92cca513 - Updated: 2026-09-27 - Subject: Economics - Grade: Grade 10 - Language: English - Document type: Memorandum - Year: 2018 - Exam period: Gauteng November - Paper: 1 - Curriculum: CAPS - Pages: 17 Breadcrumbs: [Home](https://www.hlayiso.com/) › [Library](https://www.hlayiso.com/library) › [Grade 10](https://www.hlayiso.com/library/grade-10) › [Economics](https://www.hlayiso.com/library/grade-10/economics) › [Economics Grade 10 P1 Gauteng November 2018 Memo (English)](https://www.hlayiso.com/library/gr10-ecn-p1-english-november-2018-possible-answers/25ca2d96-001f-4d8d-93ba-3f3e92cca513) ## About this document Economics · Grade 10 · Gauteng November · 2018 · English. Memorandum, 17 pages. Read online or download the PDF. Read it free online on the page above; download the PDF from there. ## Matching paper and memo - [Gr10 ECN P1 (English) November 2018 Question Paper](https://www.hlayiso.com/library/gr10-ecn-p1-english-november-2018-question-paper/14fd24ce-66b3-4572-b5ff-29d4b8e10663) — QP · 2018 · Eng ## Document text Text extracted from the PDF. Layout, diagrams and tables may not survive extraction. ### Page 1 Downloaded from hlayiso.com GAUTENG DEPARTMENT OF EDUCATION PROVINCIAL EXAMINATION NOVEMBER 2018 GRADE 10 ECONOMICS PAPER 1 MARKING GUIDELINES 17 pages ### Page 2 Downloaded from hlayiso.com ECONOMICS MARKING GUIDELINES (Paper 1) GRADE 10 GAUTENG DEPARTMENT OF EDUCATION PROVINCIAL EXAMINATION ECONOMICS (Paper 1) SECTION: (COMPULSORY) QUESTION 1 1.1 MULTIPLE-CHOICE QUESTIONS 1.1.1 B limited means 1.1.2 A scarcity of resources 1.1.3 D households 1.1.4 C lagging indicator 1.1.5 B modern money 1.1.6 D skilled labour 1.1.7 C manageable 1.1.8 A immigration (8 x 1) (8) 1.2 MATCHING ITEMS 1.2.1 E Exists because we have limited resources with which to satisfy unlimited needs and wants 1.2.2 F A group of people that live together and make economic decisions 1.2.3 A All people have a basic human right to be free from poverty, ignorance and ownership by another 1.2.4 G A period in which there is a decline in economic activity with rising unemployment 1.2.5 D The use of tools and advanced methods to produce goods and services in the economy 1.2.6 C The combination of two different goods that could be produced when using all available resources to the full and efficiently 2 ### Page 3 Downloaded from hlayiso.com ECONOMICS MARKING GUIDELINES (Paper 1) GRADE 10 1.2.7 I Is the amount of money offered or asked for something that is bought or sold 1.2.8 B The movement of people across international boundaries from one country to the other (8 x 2) (16) 1.3 GIVE ONE TERM 1.3.1 Public Sector Economics 1.3.2 Savings 1.3.3 Barter 1.3.4 Communal property 1.3.5 Banks 1.3.6 Unemployed (6 x 1) (6) TOTAL FOR SECTION A: 30 3 ### Page 4 Downloaded from hlayiso.com ECONOMICS MARKING GUIDELINES (Paper 1) GRADE 10 SECTION B Answer any TWO of the three questions in this section in the ANSWER BOOK. QUESTION 2: MACROECONOMICS 2.1 Answer the following questions. 2.1.1 Name any TWO factors of production.  Land   Labour  Capital  Entrepreneurship (Any 2 x 1) (2) 2.1.2 Why do consumers have to make choices about what they buy?  They have scarce resources so they have to choose how to use these resources to gain maximum satisfaction (Accept any other correct relevant response.) (1 x 2) (2) 2.2 DATA RESPONSE 2.2.1 Give examples of real flow from the diagram above.  Goods and services  Factors of production (2 x 1) (2) 2.2.2 Briefly describe the term circular flow.  The movement of goods and services, factors of production, and money (income and expenditure) in an economy (2) 2.2.3 Describe the role of the factor market in the circular flow.  Factor market or resource market is where the services of the factors of production are traded.  For example labour is hired, capital is borrowed, property is rented and entrepreneurs offer their services  These factors of production earn wages, interest, rent and profits. (Accept any other correct relevant response.) (2) 4 ### Page 5 Downloaded from hlayiso.com ECONOMICS MARKING GUIDELINES (Paper 1) GRADE 10 2.2.4 What are the problems with international comparisons?  Some figures need to be estimated because they may be unavailable  Social wages may be high in some countries compared to others leading to higher GDP figures in those countries  Climate conditions are different from country to country and that makes it difficult to compare outputs of countries with different climates  Unreliability of exchange rates may affect the GDP figures (Accept any other correct relevant response.) (4) 2.3 DATA RESPONSE 2.3.1 Provide the above diagram with an appropriate heading.  Business cycle (1) 2.3.2 Name the lowest point, C, in the diagram above.  Trough  (1) 2.3.3 Briefly describe the term trend line.  This is a line showing the general direction of economic activity (Accept any other correct relevant response.) (2) 2.3.4 Describe the effect of a depression on employment levels.  During a depression many companies scale down on their production and ultimately many workers are retrenched causing massive unemployment (Accept any other correct relevant response.) (2) 2.3.5 How is the economy affected during the prosperity phase? The economy is affected due to:  This is a time of general optimism and consumer spending  Output and economic activity increase and entrepreneurs expand their businesses  Employ more people and buy equipment.  Profits increase as well as wages and prices  Consumer demand rises which stimulates greater production (Accept any other correct relevant response.) (2 x 2) (4) 5 ### Page 6 Downloaded from hlayiso.com ECONOMICS MARKING GUIDELINES (Paper 1) GRADE 10 2.4 Differentiate between economic goods and free goods. Economic goods Free goods  They are scarce in relation to their  They are not scarce, available demand without limit  People are prepared to pay for  People are not prepared to pay for them, they have a price them, they have no price  They can be sold on markets and  They cannot be counted as accumulated as wealth wealth (Accept any other correct relevant response) (2 x 4) (8) 2.5 How does the state contribute towards the growth of the economy? The state contributes towards the growth of the economy because:  The state manages the economy through various policies   Public goods, which consumers do not want to pay for, are provided to households by the state  Basic infrastructure like roads, electricity supply and bridges necessary for the growth of the economy is provided by the government   The government provides rules and regulations to protect businesses and also to protect consumers from unfair practices  National laws that influence the economy such as the national budget are the responsibility of the state (Accept any other correct relevant response.) (8) [40] QUESTION 3: ECONOMIC PURSUITS 3.1 Answer the following questions. 3.1.1 Give any TWO types of taxes paid to the government.  Value added tax (VAT)  Income tax  Company tax  Wealth tax  Capitalgains-tax (Any 2 x 1) (2) 3.1.2 How does economic growth lead to economic development?  A country that produces more goods and services has a population that has a better standard of living because they use those goods to improve their lifestyle (Accept any other correct relevant response.) (1 x 2) (2) 6 ### Page 7 Downloaded from hlayiso.com ECONOMICS MARKING GUIDELINES (Paper 1) GRADE 10 3.2 DATA RESPONSE 3.2.1 Which of the African countries in the table had the lowest level of urbanisation in 2010?  Uganda (13%) (1) 3.2.2 Who is responsible for the publication of the above information?  The World Factbook  (1) 3.2.3 Briefly explain the term urbanisation.  This is the gradual increase in the number of people staying in urban areas, leading to the growth of towns and cities (2) 3.2.4 What is the relationship between poverty and migration?  When people are poor they are more likely to move to areas where poverty is low so that they can find ways of reducing their poverty (Accept any other correct relevant response.) (2) 3.2.5 Why is urbanisation a problem especially to government?  Problem of infrastructure, Migration leads to densely populated informal settlements or slums necessitating a massive demand for housing and infrastructure such as land, roads, health clinics problem of service delivery, problem of electricity  Cities are now unable to absorb labour especially the unskilled ones  Unemployment is rife in towns and cities leading to crimes, such as violence, robbery, theft etc  Government is faced with an uncontrollable influx of people leading to housing, water problems etc.  (Accept any other correct relevant response.) (Any 2 x 2) (4) 7 ### Page 8 Downloaded from hlayiso.com ECONOMICS MARKING GUIDELINES (Paper 1) GRADE 10 3.3 DATA RESPONSE 3.3.1 To which part of the labour force does this extract refer?  Unemployed youth  (1) 3.3.2 To what proportion of the population does this extract refer?  80%  (1) 3.3.3 Briefly explain the term labour force.  The labour force of the country is made up of the economically active population  Economically active population consists of people between the ages of 15 and 64 years of age who are unemployed or working for themselves (2) 3.3.4 Describe any social effect of unemployment.  Unemployed youth can cause possible riots / violence.  The largest group 80% is youth that can cause or engage in crime as a result of frustration  Youth may become the leaders of violent public protests as they are still full of energy (Accept any other correct relevant response.) (1 x 2) (2) 3.3.5 Suggest possible solutions to unemployment.  The solution is to create jobs and training particularly for those who have fewer than 12 years of schooling  Apprenticeships, learnerships, mentorships, skills development and training should be offered to the unemployed youths  The government can be involved in job creation programmes like Expanded Public Works Programmes (Accept any other correct relevant response.) (2 x 2) (4) 8 ### Page 9 Downloaded from hlayiso.com ECONOMICS MARKING GUIDELINES (Paper 1) GRADE 10 3.4 Discuss the main characteristics of money as a means of payment.  Generally accepted by all as a means of payment Source currencies have more value than the others e.g. US dollar is accepted internationally rather than the Zimbabwean dollar   Must be durable and not easily counterfeited or easily rust or decay over time also cannot be easily counterfeited  Money must be scarce and valuable that is why money must not be printed in large amounts because it will lose value (scarcity) by becoming too plentiful, thus becoming worthless  Money must be manageable in that it must be easy to carry it around because of its size and weight  Must be the sameand easy to get change when different payments are made (Accept any other correct relevant response.) (4 x 2) (8) 3.5 How did industrialisation lead to the development of transport and communication? Transport  Railway lines are built to facilitate transportation of bulk products  Roads were improved  Bulk volumes of goods could be transported and delivered in shorter times  Harbours were built for sea transportation  Imports and exports possible  Development of shipping (max 4) Communication  Improved communication networks led to improved distribution of information  Business and consumers easily contacted for sales  Exports and imports businesses flourished as a result of easy contacts with international counterparts  Money transfers became easy through internet banking  Insurance and investments improved (Accept any other correct relevant response.) (max 4) (2 x 4) (8) [40] 9 ### Page 10 Downloaded from hlayiso.com ECONOMICS MARKING GUIDELINES (Paper 1) GRADE 10 QUESTION 4: MACROECONOMICS AND ECONOMIC PURSUITS 4.1 Answer the following questions. 4.1.1 Name any TWO approaches to studying Economics.  Microeconomics  Macroeconomics (2 x 1) (2) 4.1.2 How were nomadic societies organised?  Societies were organised in small familiy groups, moving from one area to the other as resources were depleted  (1 x 2) (2) 4.2 DATA RESPONSE 4.2.1 Identify the sector that contributed most to the GDP.  Tertiary sector  (1) 4.2.2 Comment on the trend of the contribution of the tertiary sector.  The tertiary sector contributes more income to the middle and higher income earners (1) 4.2.3 Briefly describe the term primary sector.  The sector is involved in the extraction of raw materials, for example agriculture, mining and fishing (Accept any other correct relevant response.) (2) 4.2.4 What could be the cause for the decline in the contribution of the primary sector?  Many South Africans prefer to work in other sectors like the service sector rather than in the primary sector since more are now skilled and their skills are not needed much in the primary sector (Accept any other correct relevant response.) (2) 10 ### Page 11 Downloaded from hlayiso.com ECONOMICS MARKING GUIDELINES (Paper 1) GRADE 10 4.2.5 How can economic human rights be addressed in South Africa?  The government has a responsibility to protect consumers from exploitation by producers  The state could impose heavy penalties on those producers and businesses who infringe on human rights  Has a responsibility to ensure that consumer rights are enforced  It can be achieved through educating consumers about their rights and referral to the organisations set up to deal with these issues  Investigate consumer complaints and consumer rights violations (Accept any other correct relevant response.) (Any 2 x 2) (4) 4.3 DATA RESPONSE 4.3.1 Identify which food items are being produced in the picture above.  Maize   Milk  (2 x 1) (2) 4.3.2 Which stage of economic development is depicted in the above picture? Provide a reason for your response?  Animal husbandry and agriculture commercial crop farming and dairy farming is evident (2) 4.3.3 Briefly describe the term Secondary Sector.  Manufacturing or processing of raw material from Primary Sector   Deals with the changing of raw material into finished goods and resources  (Accept any other correct relevant response.) (2) 4.3.4 Which factors promoted the development of mining activities in South Africa?  Foreign investment in the mining activities increased  Relatively cheap labour was available from neighboring countries  Transport in the country improved  Demand for gold as an international means of payment was high (Accept any other correct relevant response.) (2 x 2) (4) 11 ### Page 12 Downloaded from hlayiso.com ECONOMICS MARKING GUIDELINES (Paper 1) GRADE 10 4.4 Differentiate between Gross Domestic Product and Gross National Income. Gross Domestic Product Gross National Income  Is a good measure of how well  Is a good measure of the material the economy is doing standard of living enjoyed by the people of a country  Figures can be used to compare  Figures can be used to compare the one country with another at a material standard of living of citizens in particular point in time different countries  Determine which economies have  Also provides economic activities over produced the most output time  GDP figures are also used to  To measure GNI two adjustments must construct the business cycle be made to the value of GDP  (max 4) (max 4) (Accept any other correct relevant response.) (8) 4.5 How do stokvels contribute towards a better form of saving for members? Stokvels contribute towards a better form of saving because:  Stokvels are sociable, members have common values and understand one another  They impose self-discipline and commitment on people  No one wants to let their friends down when it comes to paying  There is social prestige in belonging to a stokvel  You must be invited to join (Accept any other correct relevant response.) (8) TOTAL FOR SECTION B: 40 12 ### Page 13 Downloaded from hlayiso.com ECONOMICS MARKING GUIDELINES (Paper 1) GRADE 10 SECTION C Answer any ONE of the two questions in this section in the ANSWER BOOK. QUESTION 5: MACROECONOMICS  Discuss in detail the FOUR participants in an economy and the inter- relationships between them. (26 marks)  Briefly describe the methods used to determine Gross Domestic Product. (10 marks) [40] INTRODUCTION  There are four main participants in an open economy, namely the households, businesses, the government and the foreign sector that are interlinked and therefore have a relationship with each other.  The decisions that they take and their interactions with each other.  The influence this has on individuals in the community and the influence on the level of economic activities.  (Accept any other correct relevant response.) (Max 2) BODY: MAIN PART Households  They are also known as consumers because they use goods and services  Households are the primary economic participants because they own, directly and indirectly, the factors of production (land, labour, capital and entrepreneurship)  Consumers have needs which are satisfied through the consumption of goods and services which they purchase from the firms  Consumers demand for goods and services stimulate economic activity by encouraging firms and the state to produce goods and services  Consumers sell their factors of production to firms in return for remuneration (wages, rent, interest and profit) 13 ### Page 14 Downloaded from hlayiso.com ECONOMICS MARKING GUIDELINES (Paper 1) GRADE 10 Firms  They are also known as businesses or producers  They purchase the factors of production from the households in the factor market  They use the factors of production to produce goods and services, which they then sell on the goods market to households  Firms are motivated to produce goods and services by the profit motive Government  Governments act to provide goods and services, which cannot be provided by firms  The state also has certain functions and roles to play in the economy. For example, protection services, social services and economic services  Governments receive revenue from firms and households in the form of taxes and revenue from state-owned property and state-owned enterprises Foreign sector  The foreign sector supplies goods and services that are imported by households and businesses and buys goods and services that are exported  The foreign sector pays for the exports and receives money for the imports our country makes with the rest of the world  The foreign sector also supplies factors of production that are imported and buys factors of production that are exported  They receive remuneration for factors that they import to us and pay for the factors that we export to them (Accept any other correct relevant response.) (Max 26) 14 ### Page 15 Downloaded from hlayiso.com ECONOMICS MARKING GUIDELINES (Paper 1) GRADE 10 ADDITIONAL PART Briefly describe the methods used to determine Gross Domestic Product.  There are three different ways in which Gross Domestic Product can be determined. Each way is an indication of the composition of the Gross Domestic Product  Production method  Using this method, GDP is determined by calculating the sum of the value added at each stage of the production process (primary, secondary and tertiary stages)  This method yields GDP at basic prices Income method  Using this method, GDP is determined by calculating the income earned by the factors of production within the borders of the country  This method yields GDP at factor cost Expenditure method  Using this method, GDP is determined by calculating the total expenditure on all final goods and services produced within the borders of the country (C + I + G + X – M)  This method yields GDP at market prices (Accept any other correct relevant response.) (Max 10) CONCLUSION  The economic participants are reliant on each other. An economy cannot function if one participant does not contribute fully. (Accept any other correct relevant higher-order response.) (Max 2) OR  Efficient utilisation of factors of production by producers is important so that there is an increase in the value of goods and services produced in an economy. (Accept any other correct relevant higher-order response.) (Max 2) [40] 15 ### Page 16 Downloaded from hlayiso.com ECONOMICS MARKING GUIDELINES (Paper 1) GRADE 10 QUESTION 6: ECONOMIC PURSUITS  Discuss the roles and functions of Commercial Banks in the development of the economy of South Africa (26 marks)  Critically evaluate the South African Reserve Bank (SARB) as the monetary authority, controlling all money-related issues of the country. (10 marks) [40] INTRODUCTION  Modern banking is characterized by the constant improvements in its functions  Banks brought about the present economic development throughout the world  Highly economically developed countries are where they are because of a well developed banking infrastructure  Banks are the link to all economic activity  (Accept any other correct relevant response.) (Max 2) BODY: MAIN PART  Banks are the intermediary, bringing together lenders (depositors) and borrowers of money  Banks are the safe keepers of money  Provide facilities where people can store money in the safe place  Banks accept and store deposits on which interest is paid  They keep foreign currency reserves  Fees can be transferred from one account to the other  Lend money in the form of loans and overdrafts at the risk of the banks  Banks charge interest for loanable funds  Banks make profit from two sources namely: earning interest on loans and overdrafts  They charge service fees for the services rendered  Banks contribute to the growth of the economy through efficient allocation of resources  Help with new business ventures by loaning money  They lend money to business who want to expand their businesses  Improves the standard of living of the people by providing loans to the individuals who want to buy assets such as houses  Address the socio-economic issues of the public by providing financial education  Banks also grant study loans and enable people to acquire further education and training  Increase the possibility for better opportunities through bursaries and loans  Banks are involved in community development projects e.g. sport, art etc.  (Accept any other correct relevant response.) (Max 26) 16 ### Page 17 Downloaded from hlayiso.com ECONOMICS MARKING GUIDELINES (Paper 1) GRADE 10 ADDITIONAL PART  The South African Reserve Bank is a central bank that controls other banks  It was established in 1920  It has the sole right to issue bank notes and coins  South African Reserve Bank is the bank to other banks, they borrow money from it  It is also a government bank hence it applies the monetary policies  It is responsible for formulating the monetary policies  The South African Reserve Bank is the custodian of gold and foreign reserves  It oversees the activities of commercial banks  The Financial Service Board oversees the other financial institutions such as insurance and investment companies (Accept any other correct relevant response.) (Max 10) CONCLUSION  Without banking, there would have been no economic development as it is today  Through activities such as internet banking we have access to globalisation  Countries trade internationally because of the banks bringing together the buyer and the seller (Accept any other correct relevant higher order response.) 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