# Economics Grade 11 Paper 1 Gauteng June 2018 Memo

> Grade 11 Economics Paper 1 memorandum from the Gauteng June 2018, 17 pages. Read online or get the free PDF download, question paper linked when available.

- Page: https://www.hlayiso.com/library/gr11-ecn-p1-june-2018-possible-answers/e69fb215-dd9d-4c1d-b0d2-7dc481798478
- Updated: 2026-09-27
- Subject: Economics
- Grade: Grade 11
- Document type: Memorandum
- Year: 2018
- Exam period: Gauteng June
- Paper: 1
- Curriculum: CAPS
- Pages: 17

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Economics · Grade 11 · Gauteng June · 2018. Memorandum, 17 pages. Read online or download the PDF.

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           GAUTENG DEPARTMENT OF EDUCATION
                PROVINCIAL EXAMINATION
                     JUNE 2018
                      GRADE 11

                     ECONOMICS
                      PAPER 1

                 MARKING GUIDELINE

17 pages

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                                                   ECONOMICS
                             MEMORANDUM            (Paper 1)                GRADE 11

                    GAUTENG DEPARTMENT OF EDUCATION
                           PROVINCIAL EXAMINATION

                                                              ECONOMICS
                                                              (Paper 1)

SECTION A (COMPULSORY)

QUESTION 1

1.1   MULTIPLE-CHOICE QUESTIONS

      1.1.1   A – amount of money that a labourer receives 
      1.1.2   C – the production of the country 
      1.1.3   B – entrepreneurship 
      1.1.4   C – GDP at constant prices 
      1.1.5   D – national 
      1.1.6   B – Sasol
      1.1.7   D – a public and a private sector 
      1.1.8   A – coal                                              (8x2) (16)   (16)

1.2   MATCHING ITEMS

      1.2.1   F – Old-age pensions are an example of this 
      1.2.2   A – Expressed by the real GDP per capita, life expectancy and
                  level of literacy 
      1.2.3   G – The flow of goods and services 
      1.2.4   E – Secondary economic activity 
      1.2.5   H – Products sold within South Africa 
      1.2.6   D – Taxation and government income 
      1.2.7   C – Cars, buildings and roads 
      1.2.8   B – Ages between 15 and 64 years                            (8x1)   (8)

1.3   GIVE ONE TERM

      1.3.1   Factors of production 
      1.3.2   Macroeconomics 
      1.3.3   Infrastructure 
      1.3.4   Productivity 
      1.3.5   Expenditure method 
      1.3.6   Per capita income                                          (6x1)    (6)

                                                           TOTAL SECTION A:        30

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                                                         ECONOMICS
                                  MEMORANDUM             (Paper 1)                  GRADE 11

SECTION B

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

QUESTION 2

2.1     2.1.1     List any TWO categories of final consumption expenditure by
                  households.

                     durable goods 
                     semi-durable goods 
                     non-durable goods 
                     services                                                    (2x1)   (2)

        2.1.2     Why is capital formation so important for the economy of
                  South Africa?

                     It increases production of goods and services 
                     Economic growth depends on the rate at which capital
                      formation takes place 
                     The higher the rate of capital formation, the higher will be the
                      rate of economic growth 
                      (Accept any other correct relevant answer)                   (1x2)   (2)

2.2     Data Response

        2.2.1     Identify the tertiary activity in Gauteng which contributes the
                  most to South Africa’s economy?

                     Construction                                                        (1)

        2.2.2     Give a reason for the economic activity that contributes the
                  highest percentage to the tertiary sector.

                     Infrastructure development is taking place in South Africa e.g.
                      building of stadiums, roads, bridges, dams, houses, buildings
                      etc. 
                      (Accept any other correct relevant response)                         (1)

        2.2.3     Briefly explain the term tertiary economic activities.

                     The tertiary sector involves the services that support the
                      economy, such as selling and distributing those items
                      produced in the secondary industries 
                      (Accept any other correct relevant response)                         (2)

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                                                     ECONOMICS
                              MEMORANDUM             (Paper 1)                     GRADE 11

      2.2.4   Why is it preferable for a country to have a stronger tertiary
              sector than a primary sector?

                 The tertiary sector is the largest generator of jobs.  / the
                  tertiary sector employed more people and skills than the
                  primary sector.
                  (Accept any other correct relevant response)                          (2)

      2.2.5   What is the role of transport in strengthening the tertiary
              sector in Gauteng?

                 Commuting workers to and from their workplace on a regular
                  basis 
                 Transporting goods from the factories to the markets /
                  distributors 
                  (Accept any other correct relevant response)           (2x2)          (4)

2.3   DATA RESPONSE

      2.3.1   Identify a possible reason for the decrease in
              entrepreneurship in SA?
                Drop in funding / decrease in funding                                 (1)

      2.3.2   List ONE main reason why respondents started their own
              businesses.
               They identified an opportunity 
               They wanted to be their own boss                                       (1)

      2.3.3   Briefly describe the concept entrepreneurship.

                 Entrepreneurship is an agent who combines all factors of
                  production into useful goods and services. 
                  (Accept any other correct relevant response)                          (2)

      2.3.4   Explain any factor which influences the profits of an
              entrepreneur.

                 The skills of the entrepreneur
                  -    Entrepreneurs must do intensive market research and
                       analyse competitors. 
                 The demand for the product
                  -    If the demand for the product is high, sales are likely to
                       be high. 
                 The production processes and techniques
                  -    Producers must decide on aspects such as mass
                       production.                                                    (2)

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                                                       ECONOMICS
                                MEMORANDUM             (Paper 1)                 GRADE 11

      2.3.5     What is the importance of entrepreneurship in the South
                African economy?

                Entrepreneurs play a very important role in contributing to:

                   Economic growth and progress in any economy 
                   Combines the factors of production to produce goods and
                    services to satisfy the needs and wants of consumer 
                   Take the initiative to start businesses to make a profits and
                    carry all the losses if the business goes bankrupt 
                   Make decisions on what to produce, where to set up the
                    business and who to produce for 
                    (Accept any other correct relevant response)                (2x2)   (4)

2.4   Differentiate between renewable and non-renewable resources
      Renewable resources
       Are those that are replaced by natural processes 
       Reproduce and replenish naturally without intervention within a
         short/medium time span 
       e.g. weather (sunlight, rain), plants and animals      (MAX 4 MARKS)
      Non renewable resources
       Such as minerals, fossil fuels and soil have to be used carefully because
         they do not have an annual cycle of growth, but take millions of years to
         form 
       Cannot replenish itself or takes a very, very long time 
         e.g. coal, oil, minerals, gas                      (MAX 4 MARKS) (2x4)        (8)
         (Accept any other correct relevant response)
         (Allocate a maximum of 4 marks for mere listing of facts / examples)

2.5   How can the development of small businesses benefit the marginalised
      groups in South Africa?
      Small businesses can benefit the marginalised by:
         Providing guidance to create employment for structurally unemployed
          people that might lead towards a more inclusive economy 
         Promoting entrepreneurial development among women and the youth in
          rural areas where unemployment is very high 
         Helping in the diversification of the economy by promoting the upliftment
          of a variety of skills 
         Enhancing competition most needed to benefit the consumer pricewise
         Reduce poverty in poor rural areas by means of an income 
          (Accept any other correct relevant response)
          (Allocate a maximum of 2 marks for mere listing of facts / examples)          (8)
                                                                                        [40]
s

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                                                    ECONOMICS
                              MEMORANDUM            (Paper 1)                  GRADE 11

QUESTION 3: MACROECONOMICS                            40 MARKS – 30 MINUTES

3.1   3.1.1   List any TWO examples of primary energy sources used in
              South Africa.

                 Coal 
                 Uranium 
                 Solar 
                 Hydro 
                 Wind
                 Wood                                                       (2x1)   (2)

      3.1.2   Why are resources so important in the production process?

                 Resources are used as inputs in the process of production to
                  manufacture goods and services                         (1x2)      (2)
                  (Accept any other correct relevant response)

3.2   DATA RESPONSE

      3.2.1   Identify the method used to calculate the GDP in the table
              above.
               Income method / GDP(I)                                              (2)

      3.2.2   Briefly describe the term gross domestic product.

                 Value of all final goods and services produced within the
                  borders of a country for a certain period of time                 (2)
                  (Accept any other correct relevant response)

      3.2.3   What is the main purpose of subsidies on production?

                 To reduce cost of production  / to encourage the production
                  for exports / subsidies will benefit the consumer (pay lower
                  prices)  / increase the production of certain goods             (2)
                  (Accept any other correct relevant response)

      3.2.4   Calculate the consumption of fixed capital as a percentage of
              the GVA at factor cost. Show ALL calculations.

              (Consumption of fixed capital/GVA at factor cost X 100)
               R560 397 / R3518 318 x 100
                 = 15,9 %  OR 16 %
                 (If only the answer is given, allocate 2 marks)                      (4)

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                                                        ECONOMICS
                                 MEMORANDUM             (Paper 1)                 GRADE 11

3.3   DATA RESPONSE

      3.3.1     Identify the economic concept illustrated by the extract.

                    Unemployment                                                       (1)

      3.3.2     Provide a reason for the economic concept displayed on
                almost every street corner?

                    Unemployment increase every year                                   (1)

      3.3.3     Briefly explain TWO social reasons for the high
                unemployment rate in South Africa.

                    Lack of education  / high adult illiteracy levels 
                    Lack of skills  / lack of skilled labour supply        (2x2)    (4)
                     (Accept any other correct relevant response)

      3.3.4.    How can the informal sector impact on reducing the
                unemployment rate?

                    People can start their own businesses 
                    People don’t need high start up capital 
                    People don’t need skills and education 
                    People will receive an income and that will help to satisfy most
                     basic needs                                               (2x2)   (4)
                     (Accept any other correct relevant answer)

3.4   Distinguish between real investment and financial investment.

          Real investment or gross fixed capital formation is spending on additions
           to the capital stock e.g. machinery, structures and inventories 
       It is undertaken with the aim of making profits in the future  (Max. 4
           marks)
       Financial investment is investment in shares and other financial
           instruments 
       It is an asset that you put money into with the hope that it will grow or        (8)
           appreciate into a larger sum of money  (Max. 4 marks)               (2x4)
      (Accept any other correct relevant response)
      (Allocate a maximum of 4 marks for mere listing of facts / examples)

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                                                      ECONOMICS
                                MEMORANDUM            (Paper 1)                GRADE 11

3.5   How can government solve the issue of land distribution in South
      Africa?

      Land Restitution Programme 
         The purpose of the programme is to assess the validity of claims, restore
          land or pay financial compensation to the claimants 
         People who were dispossessed of their land as a result of racially
          discriminatory laws and practices 

      Land Redistribution Programme 
         The purpose to provide previously disadvantaged South Africans with
          access to agricultural land. 
         The government originally aimed to redistribute 30 % of South Africa’s
          agricultural land by 2025. 
         The emphasis has shifted from faster redistribution of land to more         (8)
          support for settled beneficiaries.
          (Accept any other correct relevant response)
          (Allocate a maximum of 2 marks for mere listing of facts / examples)
                                                                                      [40]

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                                                     ECONOMICS
                              MEMORANDUM             (Paper 1)                  GRADE 11

QUESTION 4: MACROECONOMICS                             40 MARKS – 30 MINUTES
4.1   Answer the following questions:
4.1   4.1.1    List any TWO types of communication infrastructure used in
               South Africa.

                  Postal services 
                  Telecommunications 
                  Internet and e-mail / Social media 
                  Radio
                  Television 
                  Print media e.g. newspapers and magazines                  (2x1)   (2)
                   (Accept any other correct relevant response)

      4.1.2    How can taxation be used to reverse the downward trend in
               the economy?

                  Taxes should be decreased 
                  Decreased taxation will increase the disposable income of
                   consumers 
                  This will lead to an increase in the demand of goods and
                   services, which in turn will lead to an increase in the supply
                   (production) of goods and services 
                  Economic activities will increase and the economy will
                   grow 
                   (Accept any other correct relevant response)                 (1x2) (2)

4.2   DATA RESPONSE

      4.2.1    Identify a reason why Eskom implemented load-shedding?

                  There is a greater demand than supply in the provision of
                   electricity                                                        (1)
                   (Accept any other correct relevant response)

      4.2.2    List the percentage of electricity used by the primary sector in
               South Africa?

               (Agriculture + mining percentages)(1,4% + 0,03%)
                1.43 %                                                               (1)

      4.2.3    Briefly explain the term load-shedding in terms of electricity.
                Interruption of an electricity supply to avoid an overload on the
                   generating plant.
                   (Accept any other correct relevant response)                        (2)

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                                                    ECONOMICS
                             MEMORANDUM             (Paper 1)                  GRADE 11

      4.2.4   Why do domestic consumers use the greatest amount of
              electricity?

                 The domestic consumers are growing in numbers / population
                  increase 
                 Increasing in housing developments, e.g. RDP / complex
                  developments                                                    (2)
                  (Accept any other correct relevant response)

      4.2.5   How will the South African economy be influenced by load-
              shedding?

                 Exports will decline and will cause lower foreign exchange 
                 Workers will earn less income and spend less on goods and
                  services 
                 Prices will increase because of shortage or lower
                  production 
                 Importing of products because of short supply 
                 Service delivery will decline 
                 Low production will lead to low economic growth or low GDP
                 Less state revenue, such as less taxes received.          (2x2)   (4)
                  (Accept any other correct relevant response)

4.3   DATA RESPONSE

      4.3.1   Identify a country using the mentioned economic system.

              * USA / America                                                      (1)

      4.3.2   List ONE advantage of a free market economy.

                 Individuals make their own decisions 
                 The freedom of choice 
                 No government intervention 
                 Factors of production are controlled and owned privately         (1)
                  (Accept any other correct relevant response)

      4.3.3   Briefly explain the term free market economy.

                 The market economy (free market) resolves the basic
                  economic problems of “what”, “how” and “for whom” to
                  produce through the market mechanism. 

                 The interactions of consumers and business enterprises
                  determines the prices of goods and services freely with limited
                  state intervention.                                             (2)
                  (Accept any other correct relevant response)

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                                                       ECONOMICS
                                MEMORANDUM             (Paper 1)                GRADE 11

      4.3.4     How is the market economy “self-regulating”? Motivate.

                   The price mechanism co-ordinates the economic activities. 
                   Consumers and producers come together to respond to each
                    other’s needs. 
                   Consumer’s freedom of choice directs the types and quantities
                    of goods.                                                        (2)

      4.3.5     Why is capitalism not beneficial to all countries and
                consmers?

                   Resources are under-utilised or not used efficiently
                    - A duplication of economic activities often occurs, which
                        could result in market failures 
                   Unequal distribution of income
                    - The creation of wealth involves those people with capital,
                        while the sick and homeless suffer.
                   Economic instability
                    - The fluctuations in business cycles result in inflation and
                        unemployment. 
                   The poor are excluded from markets
                    - The freedom of choice are often not suitable for the poor,
                        such as the benefits obtained from advertising 
                   The formation of pressure groups
                    - The freedom of enterprises can create monopolies and
                        cartels, which influence the economy negatively. 
                    (Accept any other correct relevant response)               (2x2)   (4)

4.4   Explain the role of the factor market in the circular flow.

         The households own the factors of production and sell the factors on the
          input market (factor market) to the producers 
         They receive an income (wages, rent, interest and profit) in return 
         They use the income and buy goods and services 
         Businesses purchase the factors of production from the households in the
          factor market 
         They use the factors of production to produce goods and services 
         These goods and services are sold to the households                (4x2)   (8)
          (Accept any other correct relevant response)
          (Allocate a maximum of 4 marks for mere listing of facts / examples)

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                                                      ECONOMICS
                                MEMORANDUM            (Paper 1)                GRADE 11

4.5   How is Black Economic Empowerment ensuring community
      participation in South Africa?

         Broad-Based Black Economic Empowerment (BBBEE) is a form of
          economic empowerment introduced by the South African government
          aiming to distribute wealth as wide as possible throughout
          communities.
         According to the Broad-Based Black Empowerment Act, the previously
          disadvantaged groups are black people, coloured people and
          women. 
         Broad-Based Black Economic Empowerment Act provides the small and
          medium enterprises some access to the markets.
         Involves black owners of businesses and public enterprises, as well as
          large businesses, so that they are included in all decision-making.
         Support for black businesses so that black people can play a larger role
          in the economy.
         Access and entrance to the stock exchange for black owners /               (8)
          people. 
          (Accept any other correct relevant response)
          (Allocate a maximum of 2 marks for mere listing of facts / examples)

                                                              TOTAL SECTION B:        80

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                                                         ECONOMICS
                                  MEMORANDUM             (Paper 1)                GRADE 11

SECTION C

Answer any ONE of the two questions from this section in the ANSWER
BOOK
Your answer will be assessed as follows:

                        STRUCTURE OF ESSAY                                MARK
                                                                       ALLOCATION
     Introduction                                                         Max.2

     Body:
     Main part: Discuss in detail / in-depth discussion / Examine
     Discuss / Analyse / Compare / Evaluate / Distinguish / Explain      Max. 26
     Assess / Debate.

     Additional part: Give own opinion / Critically discuss /
     Evaluate / Critically evaluate / Draw a graph and explain / Use     Max. 10
     the graph given and explain / Complete the given graph /
     Calculate / Deduce / Compare / Explain / Distinguish /
     Interpret / Briefly debate
     Conclusion:                                                         Max. 2
     Any relevant higher order conclusion that should include:
     *A brief summary of what has been discussed / analysed
     without repeating facts already mentioned in the body.
     *An opinion or value judgement on the facts discussed.
     *Additional support information to strengthen the discussion /
     analysis.
     *A contradictory viewpoint with motivation, if so required.
     *Recommendations

                                  Total                                    40

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                                                          ECONOMICS
                                   MEMORANDUM             (Paper 1)              GRADE 11

QUESTION 5: MACROECONOMICS                                 40 MARKS – 40 MINUTES
   Discuss the delivery of social services in South Africa.            (26 marks)
   What can the South African government do to improve the delivery of social
    services to its citizens?                                           (10 marks)

INTRODUCTION

Government’s socio-economic programmes to improve the economic
problems in South Africa such as housing, education, economic growth, high
unemployment, medical services and the delivery of basic services like water
and electricity, are evaluated every year. 
(Accept any other correct relevant introduction)                             (Max. 2)

MAIN BODY

SOCIAL SERVICES IN SOUTH AFRICA

Education and training 
 Education is the single largest item of expenditure in the budget 
 It includes basic education in schools, FET colleges and universities, to
   increase literacy 
 The government sees education as an important empowering method.
 The emphasis is on Early Childhood Development (ECD) 
 The percentage of persons with no formal education, as well as the level
   of illiteracy also decreased. 
 A huge concern is the large number of dropouts from school and tertiary
   institutions. 

Healthcare 
 To provide basic health services to the community as a whole 
 Demand for healthcare is likely to increase as more patients have to
   receive treatment for HIV/Aids and TB 
 The health of a population is very important, as it ensures productivity in
   the workplace. 
 Healthy people have an incentive to invest in education, as their
   extended lifespan will earn them larger returns. 
 The public healthcare focuses on providing primary healthcare at clinics
   and mobile visiting points. 

Housing 
 Includes the provision of housing for the needy 
 The National Housing Finance Corporation (NHFC) is the public sector
   enterprise responsible for servicing the low-income housing sector. 
 The government also provides the housing subsidy scheme, which
   provides funding to eligible individuals earning low incomes. 

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                                                            ECONOMICS
                                    MEMORANDUM              (Paper 1)                 GRADE 11

Social security 
 Tries to meet the basic needs of some individuals 
 It also protects and promotes the rights of vulnerable groups such as children,
   older persons, women and people with disabilities 
 The Department of Social Development in South Africa also manages a poverty
   relief programme (food) in all the nine provinces.

Public order and safety 
 Physical protection includes the defence, police, criminal justice system and prison
   services 
 They are collective services 
 The quality and efficiency of these services make societies and individuals feel
   safe or unsafe, secure or insecure 
   (Accept any other relevant correct response)
   (Allocate a max of 8 marks for headings / subheadings / examples) (Max 26)

ADDITIONAL PART

   What can the South African government do to improve the delivery
    of social services to its citizens?

The South African government can:

   Provide free health services of quality at the provincial hospitals and clinics,
    because everyone is not able to pay for these services privately 
   Develop more major road infrastructure leading into economic hubs to
    accommodate more traffic 
   Extend school feeding schemes to more primary schools in the country where
    major unemployment is experienced in communities 
   Improve the provision of clean water to communities, especially when droughts are
    experienced 
   Increase free housing services and grants to the needy                      (MAX 10)
    (Accept any other correct relevant response)

CONCLUSION

Despite huge increases in spending, the delivery of social services in South Africa is in
crisis and many demonstrations occur to complain about the poor level of service
delivery.                                                                      (Max. 2)
(Accept any other correct relevant response)                                                 [40]

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                                                              ECONOMICS
                                      MEMORANDUM              (Paper 1)                  GRADE 11

QUESTION 6: MACROECONOMICS                                      40 MARKS: 40 MINUTES

   Discuss the economic importance of the primary sector in the economy
                                                                            (26)
   How can the establishment of more labour-intensive industries benefit South
    Africa?                                                                 (10)               [40]

INTRODUCTION

The primary sector (primary industry) consists of economic activities that are based on
natural resources that come from the earth, e.g. mining, farming, forestry and
fishing. 
(Accept any other correct relevant response)                                    (Max. 2)

MAIN BODY

Importance of the primary sector

Provides food and minerals 
 Some agricultural products are imported 
 South Africa is almost self-reliant in minerals besides crude oil and other oil
   products that need to be imported 
 Earns foreign exchange by exports, which in turn pays for the imports of other
   products 

Trains workers and creates job opportunities 
 Workers need to be trained to use the machinery 
 Job opportunities are created in the mining industry 
 Agriculture is an important employer for rural people, although the numbers have
    declined in recent years 

Provision of raw material for secondary industries
 Fishing, mining and forestry play a vital role in the expansion and establishment of
   the secondary industries in South Africa 

Contribution to GDP 
 Due to the fall in the contribution of the primary sector to the GDP, it is vital that its
   role of job creation still exists 
 South Africa is still one of the largest producers of most minerals in the world.

Source of capital formation 
 The primary sector needs large amounts of capital to produce goods 
 Foreign investment plays a vital role in the expansion of these industries.

Stimulation of research and development 
 In the primary sector there are research institutions that conduct research into
    methods of boosting productivity and quality 

                                                  16

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                                                              ECONOMICS
                                      MEMORANDUM              (Paper 1)                  GRADE 11

Source of state income 
 In this sector the SARS receives taxes from all industries
 Gold mining companies pay extra taxes, which form an important source of state
   revenue 

Positive influence on infrastructure 
 The development of agricultural regions and the discovery of minerals plays an
   important part in the country 
   (Accept any other correct relevant response)
   (Allocate a maximum of 8 marks of headings / sub headings / examples)
                                                                          (Max. 26)
ADDITIONAL PART

How can the establishment of more labour-intensive industries benefit South
Africa?

Establishment of more labour intensive industries will benefit South Africa by:

   providing more job opportunities 
   improving the utilisation of available resources 
   e.g. mining, agriculture and manufacturing industries 
   transferring a greater variety of knowledge and skills to the workers 
   using artisans, technicians and engineers that will lead to better economic
    growth 
   improving the standard of living of the citizens 
   generating more revenue for the state via income tax 
    (Accept any other correct relevant response)
    (Allocate a maximum of 8 marks for headings / sub headings / examples)
                                                                              (Max. 10)

CONCLUSION

Despite the decline in the contribution of the agricultural sector to the GDP, it still plays
an important role in providing job opportunities                                 (Max. 2)
(Accept any other correct relevant response)

                                                                       TOTAL SECTION C:         40

                                                                                    TOTAL:      150

                                                  17

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