Economics Grade 10 P1 November Mock Exam 2 2026 Memo (Eng)

Mock hlayiso mock exams Practice Series: Grade 10 Exam Preparation WWW.HLAYISO.COM NATIONAL SENIOR CERTIFICATE GRADE 10 ECONOMICS P1 NOVEMBER EXAMINATION 2026 (MOCK) MARKING GUIDELINES MARKS: 150 These marking guidelines consist of 19 pages. Copyright reserved Please turn over

Economics/P1 2 Hlayiso/Mock 2026 NSC – Marking Guidelines PRINCIPLES FOR MARKING ECONOMICS (HLAYISO MOCK 2026) • Mark ALL responses in the candidate’s script, whether correct or incorrect. • Where a candidate gives more responses than required: in Section A mark the FIRST response only; in 2.1.1, 3.1.1 and 4.1.1 mark the first TWO responses only; in Sections B and C (choice questions) mark only the required number of questions and write EXTRA on any additional question. • Use ONE tick (✓) for each mark awarded, placed at the fact being credited. In the 2 x 4 distinguish/differentiate questions headings are not credited (max. 4 per concept). Use a neat cross for incorrect responses. • One-word answers are acceptable for: list, name, state, identify. FULL sentences are required for: describe, explain, evaluate, analyse, suggest, differentiate, distinguish, define, discuss, why, how. The words provide, what, tabulate, identify and give are read in context. • Calculations: 3 marks for the method/workings and 1 mark for the correct final answer. If the final answer is correct without any workings, award 2 marks only. • Accept responses that are correct and relevant but expressed differently. Spelling errors are not penalised if the meaning is clear. • In multiple-choice questions, accept the correct answer written in words instead of the letter. • Record the sub-total of each sub-question in the right margin and transfer question totals to the cover of the answer book. Copyright reserved Please turn over

Economics/P1 3 Hlayiso/Mock 2026 NSC – Marking Guidelines SECTION A (COMPULSORY) QUESTION 1 30 MARKS – 20 MINUTES 1.1 MULTIPLE-CHOICE QUESTIONS 1.1.1 B – positive ✓✓ 1.1.2 D – non-durable ✓✓ 1.1.3 C – expenditure ✓✓ 1.1.4 B – trend line ✓✓ 1.1.5 D – foreign sector ✓✓ 1.1.6 A – infant mortality rate ✓✓ 1.1.7 B – Industrial Revolution ✓✓ 1.1.8 D – profit ✓✓ (8 x 2) (16) 1.2 MATCHING ITEMS 1.2.1 C – a statement that is based on an opinion or value judgement and cannot be tested ✓ 1.2.2 F – goods and services produced in the country and sold to buyers in other countries ✓ 1.2.3 E – the phase of the business cycle in which economic activity increases ✓ 1.2.4 G – the average number of years that a newborn baby is expected to live ✓ 1.2.5 A – people who flee their own country because of war, violence or persecution ✓ 1.2.6 H – producing only enough food for the needs of the farmer’s own family ✓ 1.2.7 D – registered businesses that pay taxes and are regulated by labour laws ✓ 1.2.8 B – farming on a large scale with the aim of selling the produce at a profit ✓ (8 x 1) (8) 1.3 GIVE THE TERM 1.3.1 Real gross domestic product/GDP at constant prices ✓ 1.3.2 Non-renewable (natural) resources ✓ 1.3.3 Transfer payments ✓ 1.3.4 Leading (economic) indicators ✓ 1.3.5 Informal settlements/Squatter camps ✓ 1.3.6 Guilds ✓ (6 x 1) (6) [30] TOTAL SECTION A: 30 Copyright reserved Please turn over

Economics/P1 4 Hlayiso/Mock 2026 NSC – Marking Guidelines SECTION B QUESTION 2: MACROECONOMICS 40 MARKS – 30 MINUTES 2.1.1 Name any TWO subjects that are related to Economics. • Mathematics/Statistics ✓ • Accounting/Business Studies ✓ • History ✓ • Geography ✓ • Political Science/Law ✓ • Psychology/Sociology ✓ • Computer Science/Information Technology ✓ (Accept any other correct relevant response) (2 x 1) (2) 2.1.2 Why do economists make use of economic models? Models are simplified representations of reality that help economists to explain how the economy works, to analyse the relationships between variables and to forecast the outcomes of changes or policies ✓✓ (Accept any other correct relevant response) (1 x 2) (2) 2.2.1 Identify the participant that is NOT part of a closed economy. Foreign sector (rest of the world) ✓ (1) 2.2.2 Name the flow labelled B. Payments for exports/Export earnings/Export revenue ✓ (1) 2.2.3 Briefly describe the term injection. Money (spending) that enters the circular flow from outside the household–firm flow, e.g. investment, government spending and exports, which increases the flow of income ✓✓ (Accept any other correct relevant response) (2) 2.2.4 Explain why spending on imports is regarded as a leakage. Money spent on imports flows out of the domestic economy to producers in other countries, so it is no longer available to be spent on locally produced goods and does not create income and jobs locally ✓✓ (Accept any other correct relevant response) (2) Copyright reserved Please turn over

Economics/P1 5 Hlayiso/Mock 2026 NSC – Marking Guidelines 2.2.5 How does South Africa benefit from trading with other countries? • Exports earn foreign exchange that can be used to pay for imports ✓✓ • Local firms gain access to larger markets, so they can produce more and benefit from economies of scale ✓✓ • Consumers can buy goods that are not produced locally, e.g. certain electronic goods and medicines, and have a wider choice ✓✓ • Imports of capital goods and technology improve the productivity of local firms ✓✓ • Increased exports create jobs and income and increase economic growth (GDP) ✓✓ • Competition from imports encourages local firms to become more efficient and to lower prices ✓✓ • Trade agreements, e.g. through BRICS and the AfCFTA, attract investment and strengthen relations with other countries ✓✓ (Accept any other correct relevant response) (2 x 2) (4) 2.3.1 Identify the method used to calculate GDP. Production method/Value-added method ✓ (1) 2.3.2 Name the sector that made the largest contribution. Tertiary sector ✓ (1) 2.3.3 Briefly describe the term gross domestic product (GDP). The total value of all final goods and services produced within the borders (geographical boundaries) of a country during a specific period, usually one year ✓✓ (Accept any other correct relevant response) (2) 2.3.4 Explain why subsidies on products are subtracted. Subsidies lower the price that buyers pay below the value of the goods at basic prices; to calculate GDP at market prices (the prices that buyers actually pay) the subsidies must therefore be subtracted (while taxes on products, which raise prices, are added) ✓✓ (Accept any other correct relevant response) (2) 2.3.5 Calculate the gross domestic product at market prices (B). GVA at basic prices (A) = 420 + 980 + 2 600 = R4 000 billion ✓ GDP at market prices = GVA at basic prices + taxes on products – subsidies on products = 4 000 + 520 – 20 ✓ ✓ = R4 500 billion ✓ (Accept: 420 + 980 + 2 600 + 520 – 20 = R4 500 billion: 3 marks for workings, 1 mark for the answer) (4) Copyright reserved Please turn over

Economics/P1 6 Hlayiso/Mock 2026 NSC – Marking Guidelines 2.4 Distinguish between free goods and economic goods. Free goods • Free goods are available in unlimited quantities to satisfy everyone’s wants, e.g. air and sunlight ✓✓ • They have no price because no factors of production are used to produce them ✓✓ • There is no opportunity cost involved when they are used ✓✓ • They are not scarce, so no choices have to be made about their use ✓✓ • Some free goods may become economic goods when they become scarce, e.g. clean water in a drought ✓✓ (Max. 4) Economic goods • Economic goods are scarce, i.e. limited in relation to people’s wants, e.g. food, clothing and cars ✓✓ • They have a price because factors of production are used to produce them ✓✓ • Their use involves an opportunity cost because the resources could have been used to produce something else ✓✓ • Choices must be made about what, how and for whom to produce them ✓✓ • They can be consumer goods or capital goods ✓✓ (Max. 4) (Accept any other correct relevant response) (A maximum of 4 marks may be allocated for mere listing of facts/examples) (2 x 4) (8) Copyright reserved Please turn over

Economics/P1 7 Hlayiso/Mock 2026 NSC – Marking Guidelines 2.5 How does scarcity force households, businesses and the government to make choices? • Households have limited incomes and unlimited wants, so they must decide which needs and wants to satisfy first, e.g. food and rent before luxuries ✓✓ • Households must choose between spending their income now and saving for the future ✓✓ • Businesses have limited resources, so they must decide what to produce, how much to produce and which production methods to use ✓✓ • Businesses must choose between labour-intensive and capital-intensive methods, depending on the cost and availability of labour and capital ✓✓ • The government has a limited budget (tax revenue), so it must prioritise spending, e.g. between education, health, social grants and infrastructure ✓✓ • The government must decide whether to raise taxes or borrow to finance more spending, which affects other participants ✓✓ • Every choice involves an opportunity cost, so all participants must compare the benefits of the alternatives before deciding ✓✓ (Accept any other correct relevant response) (A maximum of 2 marks may be allocated for mere listing of facts/examples) (4 x 2) (8) [40] Copyright reserved Please turn over

Economics/P1 8 Hlayiso/Mock 2026 NSC – Marking Guidelines QUESTION 3: ECONOMIC PURSUITS 40 MARKS – 30 MINUTES 3.1.1 Name any TWO trade unions or federations in South Africa. • Congress of South African Trade Unions (COSATU) ✓ • Federation of Unions of South Africa (FEDUSA) ✓ • National Council of Trade Unions (NACTU) ✓ • South African Federation of Trade Unions (SAFTU) ✓ • National Union of Mineworkers (NUM) ✓ • South African Democratic Teachers Union (SADTU) ✓ • National Education, Health and Allied Workers’ Union (NEHAWU) ✓ • Solidarity/UASA/NUMSA/AMCU/DENOSA/POPCRU ✓ (Accept any other correct South African union or federation; acronyms are acceptable here) (2 x 1) (2) 3.1.2 Why does a decrease in the infant mortality rate increase life expectancy? Life expectancy at birth is the average number of years that newborn babies are expected to live; when fewer babies die before their first birthday, more people live to older ages, so the average (life expectancy) increases ✓✓ (Accept any other correct relevant response) (1 x 2) (2) 3.2.1 Identify the infant mortality rate in 2025. 27 per 1 000 live births ✓ (1) 3.2.2 Name ONE reason why the death rate decreased. • Better health care/access to clinics and hospitals ✓ • Vaccinations/immunisation programmes ✓ • Access to antiretroviral (ARV) treatment ✓ • Clean water and better sanitation ✓ • Better nutrition/food supply ✓ • Better education about health and hygiene ✓ (Accept any other correct relevant response) (1) 3.2.3 Briefly describe the term birth rate. The number of live births per 1 000 of the population in a year ✓✓ (Accept any other correct relevant response) (2) 3.2.4 Explain why the government needs to know the population growth rate. It enables the government to plan and budget for the future needs of the population, e.g. how many schools, clinics, houses, jobs and how much infrastructure will be needed ✓✓ (Accept any other correct relevant response) (2) Copyright reserved Please turn over

Economics/P1 9 Hlayiso/Mock 2026 NSC – Marking Guidelines 3.2.5 Calculate the natural population growth rate of Country N in 2025. Natural growth rate = birth rate – death rate = 21 – 9 = 12 per 1 000 of the population ✓ ✓ 12 100 As a percentage: × ✓ 1 000 1 = 1,2% ✓ (If the answer is given only as 12 per 1 000 with correct workings, award 3 marks) (4) 3.3.1 Identify ONE profession from the extract. • Nurses ✓ • Doctors ✓ • Engineers ✓ • Teachers ✓ (1) 3.3.2 Name the term for the loss of highly skilled people to other countries. Brain drain ✓ (1) 3.3.3 Briefly describe the term emigration. The movement of people out of their own country to settle (live and work) permanently in another country ✓✓ (Accept any other correct relevant response) (2) 3.3.4 Explain ONE push factor that causes skilled workers to leave South Africa. • High crime rates make people feel unsafe, so they leave to live in safer countries ✓✓ • Salaries are lower than in other countries, so professionals leave to earn more ✓✓ • Poor working conditions, e.g. overcrowded hospitals and a shortage of equipment, make work stressful ✓✓ • Uncertainty about the economy, e.g. slow growth and loadshedding, reduces career opportunities ✓✓ (Accept any other correct relevant response) (Accept a factor from the extract only if it is stated as a condition in South Africa, e.g. low salaries in SA; a destination advantage quoted directly, e.g. “higher salaries in the UK” = 0) (2) Copyright reserved Please turn over

Economics/P1 10 Hlayiso/Mock 2026 NSC – Marking Guidelines 3.3.5 How does the emigration of skilled workers negatively affect the economy? • Shortages of skilled workers in hospitals, schools and municipalities lower the quality of services ✓✓ • Employers must pay higher salaries or recruit expensive foreign workers to replace them, which increases costs ✓✓ • The money that the government spent on educating and training these workers is lost to the country ✓✓ • Productivity and economic growth fall because there are fewer skilled workers ✓✓ • The government loses income tax revenue from high-income earners ✓✓ • Fewer skilled people are available to start businesses and to train new workers ✓✓ (Accept any other correct relevant response) (2 x 2) (4) 3.4 Differentiate between economic growth and economic development. Economic growth • Economic growth is an increase in the production of goods and services in a country over time, measured as an increase in real GDP ✓✓ • It is a quantitative concept that can be measured with numbers, e.g. the real GDP growth rate ✓✓ • It can take place in a short period of time ✓✓ • Growth does not necessarily improve the lives of all people, e.g. if income is unequally distributed ✓✓ (Max. 4) Economic development • Economic development is an improvement in the standard of living and well-being of the population ✓✓ • It is a qualitative concept that includes better health care, education, housing and less poverty ✓✓ • It is measured with indicators such as life expectancy, literacy rates and the Human Development Index (HDI) ✓✓ • It is a long-term process that usually requires economic growth ✓✓ (Max. 4) (Accept any other correct relevant response) (A maximum of 4 marks may be allocated for mere listing of facts/examples) (2 x 4) (8) Copyright reserved Please turn over

Economics/P1 11 Hlayiso/Mock 2026 NSC – Marking Guidelines 3.5 Evaluate the impact of HIV and AIDS on the South African economy. • Many workers in the economically active age group become ill or die, which reduces the size of the labour force ✓✓ • Productivity falls because of absenteeism and illness, which lowers production and economic growth ✓✓ • Businesses face higher costs for medical aid, sick leave, and recruiting and training replacement workers ✓✓ • The government must spend more on health care and antiretroviral treatment, leaving less money for other services, e.g. infrastructure ✓✓ • Households lose income when breadwinners become ill or die, which increases poverty and the number of child-headed households ✓✓ • Spending and savings decrease, which reduces investment in the economy ✓✓ • Life expectancy has fallen and the dependency ratio has increased ✓✓ • However, the large ARV treatment programme has reduced deaths, increased life expectancy and allowed many people to keep working, so the negative impact is smaller than before ✓✓ (Accept any other correct relevant response) (A maximum of 2 marks may be allocated for mere listing of facts/examples) (4 x 2) (8) [40] Copyright reserved Please turn over

Economics/P1 12 Hlayiso/Mock 2026 NSC – Marking Guidelines QUESTION 4: MACROECONOMICS AND ECONOMIC PURSUITS 40 MARKS – 30 MINUTES 4.1.1 Name any TWO examples of renewable natural resources. • Sunlight/solar energy ✓ • Wind ✓ • Water ✓ • Forests/trees ✓ • Fish ✓ • Soil ✓ (Accept any other correct relevant response) (2 x 1) (2) 4.1.2 Why is the GDP of South Africa usually higher than its GNI? Foreigners own many factors of production (e.g. shares and investments) in South Africa, so the primary income (dividends, interest and profits) paid to the rest of the world is greater than the primary income that South Africans receive from abroad ✓✓ (Accept any other correct relevant response) (1 x 2) (2) 4.2.1 Identify the phase labelled X. Downswing/Contraction/Recession ✓ (1) 4.2.2 Name the turning point labelled P. Peak/Boom ✓ (1) 4.2.3 Briefly describe the term length of a business cycle. The time it takes to complete one full business cycle, measured from one peak to the next peak (or from one trough to the next trough) ✓✓ (Accept any other correct relevant response) (2) 4.2.4 Explain why the stock (inventories) of firms increases in the phase labelled X. When the economy moves into a downswing, households and businesses spend less, so firms sell fewer goods than they planned; the unsold goods pile up in their stores/warehouses, so inventories increase (until firms cut production) ✓✓ (Accept any other correct relevant response) (2) Copyright reserved Please turn over

Economics/P1 13 Hlayiso/Mock 2026 NSC – Marking Guidelines 4.2.5 Describe the characteristics of the upswing phase labelled Y. • Real GDP (production/output) increases and the economy grows ✓✓ • Firms employ more workers, so employment increases and unemployment decreases ✓✓ • Household incomes and consumer spending increase ✓✓ • Business confidence improves, so firms invest more in capital goods and use more of their production capacity ✓✓ • Sales and profits of businesses increase ✓✓ • Government tax revenue increases ✓✓ • Prices (inflation) and interest rates may start to rise as the economy approaches the peak ✓✓ (Accept any other correct relevant response) (2 x 2) (4) 4.3.1 Identify the trend in the rural population. Decreasing/declining (from 21 million to 18 million) ✓ (1) 4.3.2 Name ONE economic sector that provides most of the jobs in cities. • Tertiary sector (services, e.g. trade, finance and government) ✓ • Secondary sector (manufacturing and construction) ✓ (Accept any other correct relevant response) (1) 4.3.3 Briefly describe the term rural-urban migration. The movement of people from rural areas (the countryside) to live and work in towns and cities (urban areas) ✓✓ (Accept any other correct relevant response) (2) 4.3.4 Explain why the level of urbanisation of Country P is likely to keep rising after 2025. The urban population increased every period (26,0 to 42,0 million) while the rural population declined (21,0 to 18,0 million); people keep moving to the cities for jobs and better services (pull factors) and the urban population also grows naturally, so the urban share of the population is likely to keep rising ✓✓ (Accept any other correct relevant response) (2) 4.3.5 Calculate the level of urbanisation of Country P in 2025. urban population 100 Level of urbanisation = × total population 1 42, 0 100 = × ✓✓✓ 60, 0 1 = 70% ✓ (4) Copyright reserved Please turn over

Economics/P1 14 Hlayiso/Mock 2026 NSC – Marking Guidelines 4.4 Distinguish between a barter economy and a money economy. Barter economy • Goods and services are exchanged directly for other goods and services without using money ✓✓ • A double coincidence of wants is needed: each person must want what the other person offers ✓✓ • It is difficult to compare the value of different goods because there is no common measure of value ✓✓ • Many goods are perishable or cannot be divided, so it is difficult to store wealth or make small exchanges ✓✓ • It was common in early (traditional) societies with little specialisation and small surpluses ✓✓ (Max. 4) Money economy • Money is used as a medium of exchange, so goods and services are bought and sold for money ✓✓ • Money serves as a measure of value, so prices make it easy to compare the value of goods ✓✓ • Money is a store of value, so people can save part of their income for the future ✓✓ • Money is a standard of deferred payment, which makes credit and borrowing possible ✓✓ • It encourages specialisation, trade and the growth of markets, financial institutions and the economy ✓✓ (Max. 4) (Accept any other correct relevant response) (A maximum of 4 marks may be allocated for mere listing of facts/examples) (2 x 4) (8) Copyright reserved Please turn over

Economics/P1 15 Hlayiso/Mock 2026 NSC – Marking Guidelines 4.5 How can the government reduce the damage that production causes to the environment? • By passing and enforcing environmental laws, e.g. limits on emissions and the dumping of waste ✓✓ • By taxing polluters, e.g. a carbon tax or environmental levies on plastic bags, so that firms pollute less ✓✓ • By paying subsidies or giving tax incentives to firms that use cleaner technology and renewable energy ✓✓ • By issuing a limited number of pollution permits/licences to producers ✓✓ • By investing in renewable energy, e.g. solar and wind power, to reduce the use of coal ✓✓ • By promoting recycling programmes and educating people about protecting the environment ✓✓ • By protecting natural areas through national parks and conservation projects ✓✓ • By working with other countries in international agreements on climate change ✓✓ (Accept any other correct relevant response) (A maximum of 2 marks may be allocated for mere listing of facts/examples) (4 x 2) (8) [40] TOTAL SECTION B: 80 Copyright reserved Please turn over

Economics/P1 16 Hlayiso/Mock 2026 NSC – Marking Guidelines SECTION C QUESTION 5: MACROECONOMICS 40 MARKS – 40 MINUTES Discuss in detail the effects of business cycles on the following participants in the economy: households; businesses (firms); the government. (26 marks) Evaluate the view that business cycles are caused mainly by factors outside the market system (exogenous factors). (10 marks) INTRODUCTION Business cycles are the recurring periods of expansion (increasing economic activity) and contraction (decreasing economic activity) that an economy experiences over time. ✓✓ (Accept any other correct relevant introduction) (Max. 2) BODY: MAIN PART Households ✓ • During an upswing (expansion) more jobs are created, so more household members are employed and household incomes increase ✓✓ • Higher incomes allow households to spend more on goods and services and to improve their standard of living ✓✓ • Households borrow more during an upswing because they are confident about the future, which may increase household debt ✓✓ • During a downswing (recession) many workers are retrenched or work shorter hours, so household incomes fall ✓✓ • Households reduce spending, especially on durable and luxury goods, and some struggle to repay debt ✓✓ • Poor and vulnerable households, e.g. low-skilled workers, are affected most and depend more on social grants ✓✓ • Inflation that often rises during a boom reduces the purchasing power of household incomes ✓✓ Businesses (firms) ✓ • During an upswing sales and profits increase, so firms increase production and use more of their capacity ✓✓ • Firms invest in new capital goods and expand their businesses, and new businesses are started ✓✓ • Firms employ more workers and may have to pay higher wages when skilled workers become scarce ✓✓ • During a downswing demand falls, so firms have unsold stock (inventories) and reduce production ✓✓ • Profits fall and firms postpone investment, retrench workers and some businesses close down (liquidations increase) ✓✓ • Small businesses are often affected the most because they have fewer reserves ✓✓ The government ✓ • During an upswing tax revenue increases because incomes, profits and spending increase ✓✓ • Government spending on unemployment benefits and support programmes decreases, so the budget deficit becomes smaller ✓✓ • The government may reduce spending or increase taxes to prevent the economy from Copyright reserved Please turn over

Economics/P1 17 Hlayiso/Mock 2026 NSC – Marking Guidelines overheating ✓✓ • During a downswing tax revenue falls while spending on social grants and job-creation programmes increases ✓✓ • The budget deficit and government debt increase because the government must borrow more ✓✓ • The government uses expansionary policy, e.g. spending on infrastructure, and the Reserve Bank may lower interest rates to stimulate the economy ✓✓ (Accept any other correct relevant response) (A maximum of 8 marks may be allocated for headings/examples) (Max. 26) ADDITIONAL PART Agree (exogenous view, e.g. monetarists): • Monetarists believe that the market system is inherently stable and that cycles are caused mainly by shocks from outside the market ✓✓ • Natural factors such as droughts and floods reduce agricultural output and can push the economy into a downswing ✓✓ • Pandemics, e.g. COVID-19 in 2020, and wars disrupt production and trade ✓✓ • Sharp changes in oil prices increase production and transport costs ✓✓ • New technology (innovations) can start new periods of rapid growth ✓✓ • Monetarists argue that unexpected changes in the money supply/government policy (e.g. poor monetary policy) cause instability ✓✓ Disagree (endogenous view, e.g. Keynesians): • Keynesians believe that cycles are caused mainly by changes in spending within the market system ✓✓ • Changes in consumer and business confidence change consumption and investment spending, which leads to upswings and downswings ✓✓ • Changes in inventories (stock levels) and the multiplier effect make the fluctuations larger ✓✓ • In practice, both exogenous and endogenous factors cause business cycles, so the view is only partly correct ✓✓ (Accept any other correct relevant response) (A maximum of 2 marks may be allocated for mere listing of facts/examples) (Max. 10) CONCLUSION Business cycles affect all participants in the economy, so it is important that the government and the Reserve Bank use fiscal and monetary policy to smooth out the fluctuations and protect vulnerable households. ✓✓ (Accept any other correct relevant higher-order conclusion) (Max. 2) [40] Copyright reserved Please turn over

Economics/P1 18 Hlayiso/Mock 2026 NSC – Marking Guidelines QUESTION 6: ECONOMIC PURSUITS 40 MARKS – 40 MINUTES Discuss in detail the South African labour force under the following headings: composition (age, gender and skills); employment and unemployment; geographic distribution. (26 marks) Evaluate the effects of immigration on the South African labour market. (10 marks) INTRODUCTION The labour force (economically active population) consists of all people of working age (15–64 years) who are either employed or unemployed but actively looking for work. ✓✓ (Accept any other correct relevant introduction) (Max. 2) BODY: MAIN PART Composition (age, gender and skills) ✓ • The working-age population includes people from 15 to 64 years; South Africa has a young population with a large share of young people ✓✓ • Many young people are still studying (not economically active), and young people (15–34) make up a large share of the unemployed ✓✓ • Men have historically had a higher labour force participation rate than women, although the participation of women has increased ✓✓ • Women are still more likely to be unemployed or to work in lower-paid jobs and in the informal sector ✓✓ • There is a shortage of skilled workers, e.g. engineers, artisans and health professionals, and a surplus of unskilled workers ✓✓ • Low levels of education and poor-quality schooling limit the skills and productivity of many workers ✓✓ • The legacy of apartheid education still affects the skills distribution between population groups ✓✓ Employment and unemployment ✓ • Employed people work in the formal sector (registered firms and the government) or in the informal sector (e.g. street vendors and spaza shops) ✓✓ • The tertiary (services) sector, e.g. trade, finance and community services, employs the most people ✓✓ • Employment in mining and agriculture has decreased because of mechanisation and structural changes ✓✓ • South Africa has a very high official (narrow) unemployment rate, above 30% in recent years, and the expanded rate is even higher ✓✓ • The expanded definition also includes discouraged work seekers who want to work but have stopped looking ✓✓ • Unemployment is highest among the youth, women and people with low levels of education ✓✓ • Statistics South Africa measures employment and unemployment every quarter in the Quarterly Labour Force Survey (QLFS) ✓✓ Geographic distribution ✓ • The labour force is unevenly distributed across the provinces ✓✓ • Gauteng has the largest labour force because it is the economic hub with the most job opportunities ✓✓ • The Western Cape and KwaZulu-Natal also have large labour forces because of their large cities and ports ✓✓ Copyright reserved Please turn over

Economics/P1 19 Hlayiso/Mock 2026 NSC – Marking Guidelines • Mainly rural provinces, e.g. Limpopo, the Eastern Cape and the Northern Cape, have smaller labour forces and higher unemployment ✓✓ • Many workers migrate from rural to urban areas and between provinces in search of work ✓✓ • Urban areas have more formal-sector jobs, while rural areas rely more on agriculture and informal work ✓✓ (Accept any other correct relevant response) (A maximum of 8 marks may be allocated for headings/examples) (Max. 26) ADDITIONAL PART Positive effects • Skilled immigrants fill scarce-skill positions, e.g. doctors, engineers and IT specialists, which increases productivity ✓✓ • Immigrant entrepreneurs start businesses that create jobs and pay taxes ✓✓ • Immigrants increase the demand for goods and services, which can create more jobs ✓✓ • They bring new skills, ideas and technology that can be transferred to local workers ✓✓ Negative effects • An increase in the supply of unskilled labour increases competition for jobs with local job seekers, which may increase unemployment among locals ✓✓ • Some employers pay undocumented immigrants low wages, which may push down wages and working conditions for all workers ✓✓ • Undocumented workers often work in the informal sector, so they do not pay income tax and are not protected by labour laws ✓✓ • Competition for jobs can lead to social tension and xenophobic violence, which harms the economy and the country’s image ✓✓ Evaluation: Immigration benefits the labour market when it brings scarce skills and is well managed, but large numbers of undocumented unskilled workers can add to the pressure on an economy with high unemployment ✓✓ (Accept any other correct relevant response) (A maximum of 2 marks may be allocated for mere listing of facts/examples) (Max. 10) CONCLUSION South Africa has a large but young and mostly low-skilled labour force; improving education and skills development is essential to reduce unemployment and to use the labour force productively. ✓✓ (Accept any other correct relevant higher-order conclusion) (Max. 2) [40] TOTAL SECTION C: 40 GRAND TOTAL: 150 Copyright reserved