# Economics Grade 11 P1 Gauteng November 2018 Question Paper

> Grade 11 Economics Paper 1 question paper from the Gauteng November 2018, 12 pages. Read online or get the free PDF download, memo linked when available.

- Page: https://www.hlayiso.com/library/gr11-ecn-p1-november-2018-question-paper/331d5247-21d3-416e-aaac-c6a1474392d1
- Updated: 2026-09-27
- Subject: Economics
- Grade: Grade 11
- Document type: Question paper
- Year: 2018
- Exam period: Gauteng November
- Paper: 1
- Curriculum: CAPS
- Pages: 12

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## About this document

Economics · Grade 11 · Gauteng November · 2018. Question paper, 12 pages. Read online or download the PDF.

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           GAUTENG DEPARTMENT OF EDUCATION
                     PROVINCIAL EXAMINATION
                         NOVEMBER 2018
                           GRADE 11

                           ECONOMICS

                            PAPER 1

TIME:      2 hours

MARKS:     150

12 pages

                                               P.T.O.

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                                         ECONOMICS
                                         (Paper 1)                    GRADE 11       2

                      GAUTENG DEPARTMENT OF EDUCATION
                                PROVINCIAL EXAMINATION

                                                    ECONOMICS
                                                    (Paper 1)

                                                    TIME: 2 hours

                                                    MARKS: 150

INSTRUCTIONS AND INFORMATION

Read the following carefully before answering the questions.

1.   Answer FOUR questions as follows in the ANSWER BOOK:

      SECTION A: COMPULSORY
      SECTION B: Answer TWO of the THREE questions
      SECTION C: Answer ONE of the TWO questions

2.   Number the answers correctly according to the numbering system used in this
     question paper.

3.   Write the number of the question above each answer.

4.   Read the questions carefully.

5.   Start each question on a NEW page.

6.   Leave 2 – 3 lines between sub-sections of questions.

7.   Answer the questions in full sentences and ensure that the format, content and
     context of your responses comply with the cognitive requirements of the questions.

8.   Answer only the required number of questions. Answers in excess of the required
     number will NOT be marked.

9.   Use only black or blue ink.

10. Non-programmable pocket calculators may be used.

11. Write neatly and legibly.

                                                                                   P.T.O.

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                                        ECONOMICS
                                        (Paper 1)                         GRADE 11     3

SECTION A (COMPULSORY)

QUESTION 1: MULTIPLE-CHOICE QUESTIONS                 30 MARKS – 20 MINUTES

1.1   Various options are provided as possible answers to the following
      questions. Choose the correct answer and write only the letter (A – D) next
      to the question number (1.1.1 – 1.1.8) in the ANSWER BOOK.

      1.1.1   The size of the sectors of an economy is measured in terms of their
              contribution to the …

              A   GDP.
              B   GNI.
              C   GNP.
              D   GPS.

      1.1.2   Decision-making within the market economy is ...

              A   concentrated.
              B   decentralised.
              C   autocratic.
              D   centralised.

      1.1.3   The rate at which capital formation takes place indicates
              economic ...

              A   transformation.
              B   democratisation.
              C   development.
              D   equity.

      1.1.4   The telecommunications regulatory authority of South Africa is
              known as ...

              A   IDASA.
              B   ICASA.
              C   SABC.
              D   NAPTOSA.

      1.1.5   The Reserve Bank uses the ... policy to influence aggregate money
              supply.

              A   fiscal
              B   budgetary
              C   demand and supply
              D   monetary

                                                                                     P.T.O.

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                                            ECONOMICS
                                            (Paper 1)                    GRADE 11       4

      1.1.6   The standard of living of a population is best described by the ...

              A   per capita income.
              B   low economic growth.
              C   a decrease in expenditure.
              D   secondary education.

      1.1.7   The nationwide government intervention plan to create
              employment for the poor and vulnerable is called the ...

              A   Industrial Policy Action Plan.
              B   Affirmative Action.
              C   Expanded Public Works Programme.
              D   Black Economic Empowerment (BEE).

      1.1.8   The primary objective of NEPAD is to ...

              A   stop wars.
              B   vote in elections.
              C   eradicate poverty.
              D   support protests.                                           (8 x 2) (16)

1.2   Choose a description from COLUMN B that matches an item in COLUMN A. Write
      only the letter (A – I) next to the question number (1.2.1 – 1.2.8) in the ANSWER
      BOOK.

              COLUMN A                                   COLUMN B
      1.2.1 Factors of production       A     trade agreement between a group of
                                              emerging markets
      1.2.2 Macroeconomics
                                        B     education and health
      1.2.3 Market economy
                                        C     reflects the demographic and gender
      1.2.4 Transport infrastructure          composition of a country

      1.2.5 BRICS                       D     economic aggregates

      1.2.6 Employment equity           E     the economic system used in South
                                              Africa
      1.2.7 Privatisation
                                        F     robots & train rails
      1.2.8 Social indicators
                                        G     inputs into the production process

                                        H     selling of state-owned enterprises to
                                              private owners

                                        I     resolves basic economic problems
                                              through market forces
                                                                            (8 x 1)   (8)

                                                                                      P.T.O.

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                                        ECONOMICS
                                        (Paper 1)                        GRADE 11     5

1.3   Identify the concept described in each of the following statements. Write
      only the term next to the question number (1.3.1 – 1.3.6) in the ANSWER
      BOOK.
      Abbreviations and acronyms will NOT be accepted.

      1.3.1   The sum total of expenditure on goods and services by residents
              of a country

      1.3.2   The owners of the factors of production

      1.3.3   The sector that contributes the most to the GDP in South Africa
              and creates many jobs

      1.3.4   The knowledge that is unique to a given culture or community

      1.3.5   The index that measures the inequality of income

      1.3.6   The price a borrower has to pay for purchasing on credit      (6 x 1) (6)

                                                                    SECTION A: [30]

                                                                                    P.T.O.

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                                           ECONOMICS
                                           (Paper 1)                       GRADE 11            6

SECTION B

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

QUESTION 2: MACROECONOMICS                               40 MARKS – 30 MINUTES

2.1   Answer the following questions.

      2.1.1   Name any TWO examples of Parastatals (SOEs).                      (2 x 1) (2)

      2.1.2   What impact will an increase in interest rates have on the poor?
                                                                             (1 x 2) (2)

2.2   Study the information below and answer the questions that follow.

               EXODUS OF COMMERCIAL FARMERS A THREAT
                   TO SOUTH AFRICA’S FOOD SECURITY

       Agricultural experts are warning that the farming sector in South Africa is in
       trouble and have appealed to the government to act and to prevent commercial
       farmers from leaving. Currently one dairy farmer is leaving the industry every
       week, because they are not making money. They have become high-cost
       producers.

       South Africa as a country is beginning to import more and more. The long-term
       effect is that food will be more expensive. The poor will suffer as they spend
       40 – 50% of their income on food. At a time when food security is a big issue
       in the world, it is certainly a problem that South Africa’s farmers are leaving the
       country.

                                                 [Adapted from Sunday Times (Sipho Masondo)]

      2.2.1   Give ONE example of input-costs to dairy farmers in South Africa.          (1)

      2.2.2   What negative effect will the exodus of farmers have on the
              consumer?                                                                  (1)

      2.2.3   Briefly explain the concept commercial farming.                            (2)

      2.2.4   Briefly describe the primary sector.                                       (2)

      2.2.5   Why is the exodus of commercial farmers a threat to South Africa’s
              economy?                                                     (2 x 2) (4)

                                                                                          P.T.O.

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                                          ECONOMICS
                                          (Paper 1)                       GRADE 11             7

2.3   Study the table below and answer the questions that follow:

       GROSS VALUE ADDED (GVA) ACCORDING TO THE TYPE OF ECONOMIC
                                ACTIVITY

          At current prices                At constant 2010 prices
                                   2016                                          2016
                 (Rm)                                 (Rm)
       Primary sector              398 770 Primary sector                         291 143
       Secondary sector            815 816 Secondary sector                       556 935
       Tertiary sector           2 654 870 Tertiary sector                      1 945 596

       GVA @ basic prices        3 869 456 GVA @ basic prices                   2 793 674
                                               [Source: SARB Quarterly Bulletin, March 2017]

      2.3.1   Which method was used in the calculation of the gross value added
              (GVA) above?                                                                (1)

      2.3.2   Which year is currently used as the base year by the SARB?                  (1)

      2.3.3   Briefly explain the concept Gross Value Added.                              (2)

      2.3.4   Briefly describe the term Gross National Product (GNP).                     (2)

      2.3.5   Distinguish between GDP at current prices and GDP at constant
              prices.                                                    (2 x 2) (4)

2.4   Differentiate between money capital and real capital.                     (2 x 4) (8)

2.5   Why do many countries prefer to use the mixed economic system?                      (8)
                                                                                          [40]

QUESTION 3: ECONOMIC PURSUITS                           40 MARKS – 30 MINUTES

3.1   Answer the following questions.

      3.1.1   List TWO economic indicators used to compare South Africa with
              the rest of Africa.                                        (2 x 1) (2)

      3.1.2   How can technology accelerate economic development in South
              Africa?                                                  (1 x 2) (2)

                                                                                         P.T.O.

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                                           ECONOMICS
                                           (Paper 1)                        GRADE 11           8

3.2   Study the information below and answer the questions that follow.

                       LIFE EXPECTANCY TRENDS IN AFRICA

        Africa Month – our continent celebrates from Ras ben Sakka in Tunisia to
                             Cape Agulhas in South Africa

      Life expectancy surged by over 20 percent in many countries between 2000
      and 2016, according to World Bank figures. Much of this is due to more
      affordable medication and the availability of antiretroviral drugs.

                                  LIFE EXPECTANCY              LIFE EXPECTANCY
               YEAR               AT BIRTH WITHOUT             AT BIRTH WITH HIV
                                         HIV
                2014                     65,5                           52,1
                2015                     66,3                           56,0
                2016                     67,9                           58,7
                2017                     67,1                           61,2

                              [Source: www.statssa.gov.za/Public Sector Manager – May 2017]

      3.2.1   Name the type of indicator under which life expectancy is classified.           (1)

      3.2.2   Give ONE reason for low life expectancy levels in Africa.                       (1)

      3.2.3   Explain the term life expectancy.                                               (2)

      3.2.4   What impact will HIV / AIDS have on productivity levels?                        (2)

      3.2.5   Evaluate the factors which brought about the improvement in life
              expectancy from 52,1 years to 61,2 years?                      (2 x 2) (4)

                                                                                          P.T.O.

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                                            ECONOMICS
                                            (Paper 1)                       GRADE 11           9

3.3   Study the information below and answer the questions that follow.

                       RURAL-URBAN MIGRATION
                 THE RESULT OF PULL AND PUSH FACTORS

       The process of urbanisation is connected to levels of development in a
       country in terms of housing, size of families and how people live. Although it
       is believed that urbanisation leads to better living conditions, it is not always
       the case. In many instances, it is easier for rural dwellers to meet
       subsistence needs.
                                                                [Source: Google images.com]

       3.3.1   List ONE positive effect of rural-urban migration.                             (1)

       3.3.2   Name ONE word for rural-urban migration.                                       (1)

       3.3.3   Which push factor causes Xenophobia in big cities?                             (2)

       3.3.4   Why is it not always the case that urbanisation leads to better living
               conditions?                                                                    (2)

       3.3.5   What can the South African government do to prevent rural-urban
               migration?                                                   (2 x 2) (4)

3.4    Discuss money as a medium of exchange and a store of value.                (2 x 4) (8)

3.5    Evaluate the effectiveness of education in terms of service delivery.                  (8)
                                                                                              [40]

                                                                                           P.T.O.

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                                           ECONOMICS
                                           (Paper 1)                      GRADE 11          10

QUESTION 4: MACROECONOMICS & ECONOMIC PURSUITS
                                        40 MARKS– 30 MINUTES

4.1   Answer the following questions.

      4.1.1   Name TWO methods used to calculate national income aggregates.
                                                                       (2 x 1) (2)

      4.1.2   What is the use of the Gini-coefficient?                           (1 x 2) (2)

4.2   Study the information below and answer the questions that follow.

                          SA has an appetite for fast-food

       Forget German cars and luxury watches, as fast-food consumption could be
       the most reliable indicator of prosperity for the middle class in South Africa.

       Investec chief economist, Annabel Bishop, said recently that real incomes per
       person are contracting. The Gross National Income has declined, not because
       of inflation, but because economic activity is grinding slower. Business
       confidence is low and unemployment remains in the region of 25 %. Why then,
       is fast-food consumption still climbing?

       According to Insight Survey, one of the reasons is an increase in the number of
       women in the labour force. This means more double-income homes and more
       disposable cash overall. According to BMI, South Africa is also typified by
       “high meat consumption” and a “strong eat-out culture”, both of which are
       driving factors for fast-food companies.
                                                                  [Source: mg.co.za/business]

      4.2.1   List ONE example of non-durable goods in the fast-food industry.           (1)

      4.2.2   What is contributing to the growth in fast-food consumption in South
              Africa?                                                                    (1)

      4.2.3   What impact will more disposable income have on production?                (2)

      4.2.4   Explain briefly the concept GNI (Gross National Income).                   (2)

      4.2.5   Explain TWO economic activities that are happening during a
              contracting phase of the economy.                           (2 x 2)        (4)

                                                                                         P.T.O.

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                                           ECONOMICS
                                           (Paper 1)                        GRADE 11        11

4.3   Study the information below and answer the questions that follow.

              Land Reform – a pillar of radical economic transformation

       Maleshoane Mokhochane-Moeti, a cattle and crop farmer from
       Wesselsbron in the Free State, said Operation Phakisa (Hurry up in
       Sesotho) is the answer towards growing the agricultural economy. She
       acquired land through the land redistribution programme in 2005 and
       this was when she fell in love with agriculture. She said that, as a black
       African woman, it was an honour to be part of the launch.

       During the launch, South Africa’s Department of Agriculture, Forestry
       and Fisheries signed a protocol agreement with China . “The agreement
       will give effect to the export of South African beef to China and unlock
       opportunities for our black smallholder farmers to access the Chinese
       market.”

                                             [Source: Public Sector Manager – May 2017]

      4.3.1    Give ONE example of crop farming.                                          (1)

      4.3.2    Which trade agreement does South Africa and China form part of?            (1)

      4.3.3    How could the poor benefit from land reform?                               (2)

      4.3.4    Briefly explain the main focus area of Operation Phakisa.                  (2)

      4.3.5    Differentiate between land redistribution and land restitution.    (2 x 2) (4)

4.4   Explain the methods used to create wealth through savings.                  (4 x 2) (8)

4.5   How can procurement benefit the marginalised people in South Africa?                (8)
                                                                                          [40]

                                                                          SECTION B: [80]

                                                                                          P.T.O.

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                                                 ECONOMICS
                                                 (Paper 1)                      GRADE 11        12

SECTION C

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

Your answer will be assessed as follows:

                                                                               MARK
                         STRUCTURE OF ESSAY
                                                                            ALLOCATION
     Introduction                                                              Max.2
     Body:
     Main part: Discuss in detail / in-depth discussion / Examine
                                                                               Max. 26
     Discuss / Analyse / Compare / Evaluate / Distinguish / Explain
     Assess / Debate

     Additional part: Give own opinion / Critically discuss / Evaluate /
     Critically evaluate / Draw a graph and explain / Use the graph
     given and explain / Complete the given graph / Calculate /                Max. 10
     Deduce / Compare / Explain / Distinguish / Interpret / briefly
     debate
     Conclusion:
     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 valued judgement on the facts discussed
                                                                                Max. 2
          Additional support information to strengthen the discussion
             / analysis
          A contradictory viewpoint with motivation, if so required
          Recommendations

     TOTAL                                                                       40

QUESTION 5: MACROECONOMICS                                 40 MARKS – 40 MINUTES

   Discuss the economic importance of infrastructure in South Africa.                   (26)

   How can we solve the water crisis in South Africa?                                   (10)

QUESTION 6: ECONOMIC PURSUITS                              40 MARKS – 40 MINUTES

   Discuss in detail the characteristics of developing countries.                       (26)

   Evaluate income inequality with the aid of a graph.                                  (10)

                                                                           SECTION C: [40]

                                                                              TOTAL: 150

                                               END

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