Economics Grade 10 P2 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 P2 NOVEMBER EXAMINATION 2026 (MOCK) MARKING GUIDELINES MARKS: 150 These marking guidelines consist of 18 pages. Copyright reserved Please turn over

Economics/P2 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. 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, unless the memo shows a different split. • Graphs: marks are awarded for correctly labelled axes, curves, shifts and equilibrium points as indicated. • 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. Copyright reserved Please turn over

Economics/P2 3 Hlayiso/Mock 2026 NSC – Marking Guidelines SECTION A (COMPULSORY) QUESTION 1 30 MARKS – 20 MINUTES 1.1 MULTIPLE-CHOICE QUESTIONS 1.1.1 C – equal to zero ✓✓ 1.1.2 B – diminishing marginal rate of substitution ✓✓ 1.1.3 A – allocative ✓✓ 1.1.4 C – indirect ✓✓ 1.1.5 D – shift parallel to the right ✓✓ 1.1.6 B – seasonal ✓✓ 1.1.7 A – Broad-Based Black Economic Empowerment ✓✓ 1.1.8 C – Labour Court ✓✓ (8 x 2) (16) 1.2 MATCHING ITEMS 1.2.1 E – the satisfaction that a consumer gets from consuming a good or service ✓ 1.2.2 B – the extra satisfaction gained from consuming one more unit of a good ✓ 1.2.3 A – a line that shows all the combinations of two goods that a consumer can buy with a given income ✓ 1.2.4 C – a situation in which no one can be made better off without making someone else worse off ✓ 1.2.5 G – a firm that cannot influence the market price of its product ✓ 1.2.6 F – a body of elected workers that is consulted by the employer on workplace matters ✓ 1.2.7 H – a law that compensates workers who are injured or become ill because of their work ✓ 1.2.8 D – people who are excluded from taking full part in the economy, e.g. people in remote rural areas ✓ (8 x 1) (8) 1.3 GIVE THE TERM 1.3.1 Excise duty (sin tax) ✓ 1.3.2 Opportunity cost ✓ 1.3.3 Mechanisation ✓ 1.3.4 Learnership ✓ 1.3.5 Bargaining council ✓ 1.3.6 Derived demand ✓ (6 x 1) (6) [30] TOTAL SECTION A: 30 Copyright reserved Please turn over

Economics/P2 4 Hlayiso/Mock 2026 NSC – Marking Guidelines SECTION B QUESTION 2: MICROECONOMICS 40 MARKS – 30 MINUTES 2.1.1 Name any TWO characteristics of utility. • Utility is subjective (it differs from person to person) ✓ • It cannot be measured objectively/accurately ✓ • It is not the same as usefulness (harmful goods can also give utility) ✓ • It differs according to time and place (circumstances) ✓ • It cannot be compared between different people ✓ • Utility can be measured only in relative/ordinal terms (utils are an imaginary unit) ✓ (Accept any other correct relevant response) (2 x 1) (2) 2.1.2 How will an increase in the price of coffee affect the demand for tea? Coffee and tea are substitutes, so when the price of coffee rises consumers switch to tea and the demand for tea increases (the demand curve for tea shifts to the right) ✓✓ (Accept any other correct relevant response) (1 x 2) (2) 2.2.1 Identify the marginal utility of the fourth glass. 12 utils ✓ (1) 2.2.2 At which glass does marginal utility become zero? The sixth glass ✓ (1) 2.2.3 Briefly describe the term law of diminishing marginal utility. As a consumer consumes more units of a good during a given period, the extra satisfaction (marginal utility) from each additional unit decreases, ceteris paribus ✓✓ (Accept any other correct relevant response) (2) 2.2.4 Explain why a rational learner will not buy a seventh glass. The sixth glass already adds no satisfaction (MU = 0), so a seventh glass would add no utility or even negative utility, while the learner still has to pay for it ✓✓ (Accept any other correct relevant response) (2) 2.2.5 Calculate the values of A and B. A = TU of 2 glasses + MU of the 3rd glass = 54 + 18 ✓ = 72 utils ✓ B = TU of 2 glasses – TU of 1 glass = 54 – 30 ✓ = 24 utils ✓ (Correct answers only: award full marks) (4) Copyright reserved Please turn over

Economics/P2 5 Hlayiso/Mock 2026 NSC – Marking Guidelines 2.3.1 Identify the optimum point. E ✓ (1) 2.3.2 Name the line KL. Budget line (consumption possibility line/budget constraint) ✓ (1) 2.3.3 Briefly describe the term indifference curve. A curve that shows all the combinations of two goods that give a consumer the same level of satisfaction (utility), so the consumer is indifferent between them ✓✓ (Accept any other correct relevant response) (2) 2.3.4 Explain why the consumer cannot buy the combination at point F. Point F lies outside (to the right of) the budget line, so it costs more than the consumer’s income allows; the combination is unaffordable/unattainable ✓✓ (Accept any other correct relevant response) (2) 2.3.5 Calculate the price of one litre of milk. Income (budget) = 10 loaves × R12 ✓ = R120 ✓ Price of milk = R120 ÷ 6 litres ✓ = R20 per litre ✓ (Alternative: at point E, 5 × R12 = R60 is spent on bread, so R60 ÷ 3 = R20 per litre) (4) Copyright reserved Please turn over

Economics/P2 6 Hlayiso/Mock 2026 NSC – Marking Guidelines 2.4 Distinguish between productive efficiency and allocative efficiency. Productive efficiency ✓ • It is achieved when goods are produced at the lowest possible cost per unit ✓✓ • All resources are fully employed and none are wasted, i.e. more of one good cannot be produced without producing less of another ✓✓ • It is shown by any point ON the production possibility curve ✓✓ • Firms use the best available technology and methods of production ✓✓ (Max. 4) Allocative efficiency ✓ • It is achieved when resources are used to produce the combination of goods and services that consumers want most ✓✓ • It is achieved when no one can be made better off without making someone else worse off (Pareto efficiency) ✓✓ • It is shown by only ONE point on the PPC, i.e. the point that matches the preferences of society ✓✓ • In a market it occurs where the price consumers pay reflects the cost of producing the last unit ✓✓ (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/P2 7 Hlayiso/Mock 2026 NSC – Marking Guidelines 2.5 How does competition among firms benefit consumers and the economy? Consumers • Competition forces firms to keep prices low, so consumers pay less ✓✓ • Consumers have more choice of products and suppliers ✓✓ • Firms improve the quality of products and services to attract customers ✓✓ • Consumers are protected from exploitation by a single dominant firm ✓✓ Economy • Firms must use resources efficiently and reduce waste to survive, which improves productive efficiency ✓✓ • Competition encourages innovation and new technology ✓✓ • New firms that enter the market create jobs ✓✓ • Local firms become more competitive in international markets, which increases exports and economic growth ✓✓ (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/P2 8 Hlayiso/Mock 2026 NSC – Marking Guidelines QUESTION 3: CONTEMPORARY ECONOMIC ISSUES 40 MARKS – 30 MINUTES 3.1.1 Name any TWO economically marginalised groups in South Africa. • Women ✓ • The youth ✓ • People with disabilities ✓ • People in rural areas/informal settlements ✓ • The unemployed and the poor ✓ • Small-scale farmers and informal traders ✓ (Accept any other correct relevant response) (2 x 1) (2) 3.1.2 Why is the UIF important to workers? It provides workers who lose their jobs (or who are on maternity or illness leave) with a temporary income, so they can meet basic needs while they look for work ✓✓ (Accept any other correct relevant response) (1 x 2) (2) 3.2.1 Identify the number of discouraged work seekers. 3 200 thousand / 3 200 000 ✓(accept 3 200) (1) 3.2.2 Name the survey used by Stats SA. Quarterly Labour Force Survey (QLFS) ✓ (1) 3.2.3 Briefly describe the term labour force. All the people of working age (15–64 years) who are employed or unemployed but actively looking for work, i.e. the economically active population ✓✓ (Accept any other correct relevant response) (2) 3.2.4 Explain why discouraged work seekers are not counted as unemployed (official definition). The official (narrow) definition counts only people who actively looked for work in the four weeks before the survey; discouraged work seekers want to work but have stopped looking, so they are classified as not economically active ✓✓ (Accept any other correct relevant response) (2) 3.2.5 Calculate the official unemployment rate. Labour force = 16 800 + 7 200 = 24 000 (thousand) ✓ unemployed 100 Unemployment rate = × labour force 1 7 200 100 = × ✓✓ 24 000 1 = 30% ✓ (Candidates who use 40 000 as the denominator (18%) score a maximum of 1 mark for the formula.) (4) Copyright reserved Please turn over

Economics/P2 9 Hlayiso/Mock 2026 NSC – Marking Guidelines 3.3.1 Identify the percentage of shares transferred. 25% ✓ (1) 3.3.2 Name ONE other pillar of B-BBEE besides ownership. • Management control ✓ • Skills development ✓ • Enterprise and supplier development ✓ • Preferential procurement ✓ • Employment equity ✓ • Socio-economic development ✓ (Accept any other correct relevant response) (1) 3.3.3 Briefly describe the term black economic empowerment. A government programme to redress the inequalities of apartheid by giving black people (Africans, Coloureds and Indians) greater ownership, management, skills and participation in the economy ✓✓ (Accept any other correct relevant response) (2) 3.3.4 Explain why a better B-BBEE score helps the company to win government contracts. The government uses B-BBEE scores when it awards tenders (preferential procurement), so companies with higher scores earn more points and are more likely to be chosen as suppliers ✓✓ (Accept any other correct relevant response) (2) 3.3.5 How can share schemes benefit the workers and the company? Workers • Workers earn dividends, which add to their income and help to reduce poverty ✓✓ • Workers build up wealth (assets) and gain a say in decisions through trustees on the board ✓✓ • The surrounding community benefits from projects funded by the trust ✓✓ Company • Workers who are owners are more motivated and productive, which increases profits ✓✓ • Labour relations improve, so there are fewer strikes ✓✓ • The company wins more government contracts because of its higher B-BBEE score ✓✓ (Accept any other correct relevant response) (2 x 2) (4) Copyright reserved Please turn over

Economics/P2 10 Hlayiso/Mock 2026 NSC – Marking Guidelines 3.4 Distinguish between conciliation and arbitration. Conciliation ✓ • A process in which an independent third party (commissioner) helps the parties to reach their own agreement ✓✓ • The conciliator cannot force a decision on the parties; the outcome is voluntary ✓✓ • It is usually the first step in resolving a dispute at the CCMA or a bargaining council ✓✓ • If conciliation fails, a certificate of non-resolution is issued and the dispute may go to arbitration, the Labour Court or a protected strike ✓✓ (Max. 4) Arbitration ✓ • A process in which an independent arbitrator listens to both sides and then makes a decision (award) ✓✓ • The award is final and legally binding on both parties ✓✓ • It is used when conciliation has failed, e.g. in unfair dismissal disputes ✓✓ • An arbitration award can be reviewed only by the Labour Court ✓✓ (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/P2 11 Hlayiso/Mock 2026 NSC – Marking Guidelines 3.5 How can the government improve the economic position of marginalised groups? • By enforcing the Employment Equity Act and affirmative action so that women, black people and people with disabilities get fair access to jobs ✓✓ • By implementing B-BBEE to increase their ownership and management of businesses ✓✓ • By improving access to quality education, bursaries (e.g. NSFAS) and skills training ✓✓ • By supporting small businesses and co-operatives with finance and training, e.g. through SEDA/SEFA and the NYDA ✓✓ • By providing social grants to the poorest households ✓✓ • By building infrastructure (roads, electricity, water, internet) in rural areas and townships ✓✓ • By land reform that gives poor people access to land for farming and housing ✓✓ • By creating jobs through public works programmes such as the EPWP ✓✓ (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/P2 12 Hlayiso/Mock 2026 NSC – Marking Guidelines QUESTION 4: MICROECONOMICS AND CONTEMPORARY ECONOMIC ISSUES 40 MARKS – 30 MINUTES 4.1.1 Name any TWO levels of government in South Africa. • National government ✓ • Provincial government ✓ • Local government (municipalities) ✓ (2 x 1) (2) 4.1.2 Why does the government provide free basic services to poor households? • To reduce poverty and improve the standard of living of poor households who cannot afford to pay ✓✓ • To redistribute income from the rich to the poor and reduce inequality ✓✓ • Basic services such as clean water and electricity are merit goods that improve health and welfare, so the market would under-provide them to the poor ✓✓ • It is a constitutional duty of (local) government to provide basic services ✓✓ (Accept any other correct relevant response) (1 x 2) (2) 4.2.1 Identify the point unattainable on PPC1 but attainable on PPC2 . Y ✓ (1) 4.2.2 Name ONE factor that could have caused the shift. • Improved technology ✓ • An increase in the quantity of resources, e.g. labour or capital ✓ • Discovery of new natural resources ✓ • Better education and skills (higher productivity of labour) ✓ • More investment in capital goods ✓ (Accept any other correct relevant response) (1) 4.2.3 Briefly describe the term economic growth. An increase in the production capacity of the economy, i.e. an increase in the quantity of goods and services produced (real GDP) over time, shown by an outward shift of the PPC ✓✓ (Accept any other correct relevant response) (2) 4.2.4 Explain why Country T cannot produce more capital goods at Z without producing fewer consumer goods. Point Z lies on PPC1 , so all available resources are fully and efficiently employed; to produce more capital goods resources must be moved away from consumer goods, so fewer consumer goods are produced (opportunity cost) ✓✓ (Accept any other correct relevant response) (2) Copyright reserved Please turn over

Economics/P2 13 Hlayiso/Mock 2026 NSC – Marking Guidelines 4.2.5 Why can producing more capital goods today lead to more consumer goods in the future? • Capital goods, e.g. machines and factories, increase the productive capacity of the economy, so the PPC shifts outwards in future ✓✓ • Machines make workers more productive, so more consumer goods can be produced with the same labour ✓✓ • New capital often includes better technology that lowers the cost of producing consumer goods ✓✓ • Consumers give up some consumer goods now (opportunity cost) in exchange for higher output and living standards later ✓✓ (Accept any other correct relevant response) (2 x 2) (4) 4.3.1 Identify the equilibrium wage. R200 per day ✓ (1) 4.3.2 What will the surplus of labour be at the minimum wage of R280? 40 000 workers (70 000 – 30 000) ✓ (1) 4.3.3 Briefly describe the term minimum wage. The lowest wage that employers may legally pay workers, set by the government above the equilibrium wage ✓✓ (Accept any other correct relevant response) (2) 4.3.4 Explain why the demand curve for labour slopes downwards. At lower wages labour becomes cheaper, so employers are willing to employ more workers (and use labour instead of machines); at higher wages they employ fewer workers ✓✓ (Accept any other correct relevant response) (2) 4.3.5 How can a minimum wage benefit workers and the economy? • Workers who keep their jobs earn a higher income, which improves their standard of living ✓✓ • It protects vulnerable workers, e.g. farm and domestic workers, against exploitation ✓✓ • It reduces poverty and income inequality ✓✓ • Higher incomes increase consumer spending, which increases demand and production in the economy ✓✓ • Better-paid workers are more motivated and productive ✓✓ • The government may spend less on social grants as more households earn enough income ✓✓ (Accept any other correct relevant response) (2 x 2) (4) Copyright reserved Please turn over

Economics/P2 14 Hlayiso/Mock 2026 NSC – Marking Guidelines 4.4 Briefly discuss the factors that determine the demand for labour. • Demand for the product: the demand for labour is a derived demand; if the demand for the goods that workers produce increases, firms employ more workers ✓✓ • Wage rate: at higher wages employers demand fewer workers, and at lower wages they demand more workers ✓✓ • Productivity of labour: more productive (skilled) workers are in greater demand because they add more to output ✓✓ • Price and availability of other factors (capital): if machines become cheaper, firms replace workers with machines (mechanisation) and the demand for labour falls ✓✓ • Technology: new technology can reduce the demand for unskilled workers but increase the demand for skilled workers ✓✓ • Labour legislation and costs of employment: strict labour laws and high non-wage costs, e.g. UIF and skills levies, can reduce the demand for labour ✓✓ • State of the economy: during an economic upswing firms employ more workers ✓✓ (Accept any other correct relevant response) (A maximum of 2 marks may be allocated for mere listing of facts/examples) (4 x 2) (8) 4.5 How has the government tried to redress past inequalities through education and skills development since 1994? • It created a single, non-racial education system and spends the largest share of the budget on education ✓✓ • It introduced no-fee schools and the school nutrition programme in poor communities ✓✓ • It provides bursaries and loans to poor students through NSFAS ✓✓ • It passed the Skills Development Act, which set up SETAs that provide learnerships and apprenticeships ✓✓ • Employers pay a skills development levy (1% of the payroll) that funds training ✓✓ • It expanded TVET colleges and community colleges to provide technical skills ✓✓ • Adult basic education and training (ABET) gives adults who missed out on schooling a second chance ✓✓ • B-BBEE and the Employment Equity Act reward employers for training and promoting previously disadvantaged workers ✓✓ (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/P2 15 Hlayiso/Mock 2026 NSC – Marking Guidelines SECTION C QUESTION 5: MICROECONOMICS 40 MARKS – 40 MINUTES Discuss in detail, with the aid of graphs, indirect taxes and subsidies as methods that the government uses to intervene in markets. (26 marks) With the aid of a correctly labelled graph, evaluate the impact of a minimum price that the government sets above the equilibrium price of a product. (10 marks) INTRODUCTION Government (public sector) intervention is action taken by the government to change the outcome of the market, e.g. the price or quantity of a product, in order to correct market failure or to achieve social goals. ✓✓ (Accept any other correct relevant introduction) (Max. 2) BODY: MAIN PART Price Price S1 S S S1 P1 P P P1 D D 0 Q1 Q 0 Q Q1 Quantity Quantity Indirect tax Subsidy Indirect taxes ✓ • Indirect taxes are taxes on goods and services that are paid to the government by producers but are passed on to consumers in higher prices, e.g. VAT (15%), excise duties and fuel levies ✓✓ • The tax increases the cost of production, so the supply curve shifts to the left/upwards from S to S1 ✓✓ • The market price increases from P to P1 and the quantity bought and sold decreases from Q to Q1 ✓✓ • The price rises by less than the tax, so the tax burden is shared between consumers (higher price) and producers (lower net price received) ✓✓ • The government uses them to discourage the consumption of harmful (demerit) goods, e.g. tobacco, alcohol and sugary drinks ✓✓ • They raise revenue that the government can use to provide goods and services ✓✓ Subsidies ✓ • A subsidy is a payment by the government to producers (or consumers) to lower the cost of production or the price of a good ✓✓ • A production subsidy lowers costs, so the supply curve shifts to the right/downwards from S to S1 ✓✓ • The market price falls from P to P1 and the quantity increases from Q to Q1 ✓✓ • Subsidies are used to make basic goods, e.g. public transport and electricity for the poor, more affordable ✓✓ • They protect and support strategic or infant industries and local producers against imports, Copyright reserved Please turn over

Economics/P2 16 Hlayiso/Mock 2026 NSC – Marking Guidelines and save jobs ✓✓ • Subsidies to agriculture help to increase food production and food security ✓✓ • Subsidies are a cost to taxpayers and can protect inefficient producers ✓✓ Marks for graphs (max. 8): correctly labelled axes and curves, original equilibrium, shift of supply in the correct direction, new price and quantity, for each graph. (Accept any other correct relevant response) (A maximum of 8 marks may be allocated for headings/examples/graphs) (Max. 26) ADDITIONAL PART Price S Surplus P1 Minimum price Pe e D 0 Qd Qe Qs Quantity Marks for the graph (max. 4): • Correctly labelled axes, demand and supply curves ✓ • Equilibrium e at Pe and Qe ✓ • Minimum price P1 drawn above the equilibrium price ✓ • Quantity demanded Qd less than quantity supplied Qs , with the surplus shown ✓ Evaluation (max. 6): • Positive: producers receive a higher, stable price, which protects their income and keeps them in business, e.g. farmers ✓✓ • Production and employment in the protected industry can be maintained ✓✓ • Negative: consumers pay a higher price (P1 ) and buy less (Qd ), so their welfare decreases ✓✓ • A surplus (Qs – Qd ) develops; the government must buy, store, destroy or export it, which wastes resources and taxpayers’ money ✓✓ • Inefficient producers are protected, so resources are not allocated efficiently ✓✓ • Producers may sell the surplus illegally below the minimum price ✓✓ (Accept any other correct relevant response) (A maximum of 2 marks may be allocated for mere listing of facts/examples) (Max. 10) CONCLUSION Government intervention can correct market failures and protect consumers, producers and workers, but taxes and subsidies change prices and quantities and a minimum price creates a surplus, so intervention should be targeted, used carefully and reviewed regularly. ✓✓ (Accept any other correct relevant higher-order conclusion) (Max. 2) [40] Copyright reserved Please turn over

Economics/P2 17 Hlayiso/Mock 2026 NSC – Marking Guidelines QUESTION 6: CONTEMPORARY ECONOMIC ISSUES 40 MARKS – 40 MINUTES Discuss in detail the causes of unemployment in South Africa. (26 marks) Evaluate the consequences (effects) of high unemployment on individuals and on the economy. (10 marks) INTRODUCTION Unemployment is a situation in which people of working age (15–64 years) who are willing and able to work cannot find jobs. ✓✓ (Accept any other correct relevant introduction) (Max. 2) BODY: MAIN PART Causes of unemployment • Low economic growth: when the economy grows slowly, businesses do not expand and few new jobs are created ✓✓ • Recessions (cyclical causes): during a downswing demand falls, firms cut production and retrench workers ✓✓ • Skills mismatch (structural causes): many job seekers lack the skills that employers need, while there is a shortage of skilled workers ✓✓ • Poor quality of education: many learners leave school without a matric or with weak mathematics and language skills, which makes them hard to employ ✓✓ • Rapid population growth: the labour force grows faster than the number of new jobs ✓✓ • Mechanisation and technology: firms replace workers with machines and computers, especially in mining, agriculture and manufacturing ✓✓ • High labour costs and rigid labour laws: wages above productivity levels and strict hiring and firing rules discourage employers from employing more workers ✓✓ • Seasonal factors: workers in agriculture, tourism and construction are unemployed in the off-season ✓✓ • Frictional causes: people are temporarily unemployed while they move between jobs or enter the labour market for the first time ✓✓ • Globalisation and cheap imports: local factories close because they cannot compete with cheaper imported goods, e.g. clothing and textiles ✓✓ • Electricity shortages (load shedding) and poor infrastructure: these raise costs and reduce production and investment ✓✓ • Legacy of apartheid: unequal education, the migrant labour system and the location of townships far from work opportunities still limit employment ✓✓ • Lack of entrepreneurship: too few people start businesses, and small businesses struggle to get finance ✓✓ • Low investment: crime, corruption and policy uncertainty discourage local and foreign investment ✓✓ (Accept any other correct relevant response) (A maximum of 8 marks may be allocated for headings/examples) (Max. 26) ADDITIONAL PART Individuals • Unemployed people lose their income and fall into poverty; they struggle to pay for food, housing and education ✓✓ • Long periods of unemployment lead to stress, depression, loss of self-esteem and family Copyright reserved Please turn over

Economics/P2 18 Hlayiso/Mock 2026 NSC – Marking Guidelines problems ✓✓ • Skills are lost over time, making it even harder to find a job (long-term unemployment) ✓✓ Economy • Production (GDP) is lower than it could be, because resources (labour) are unused; the economy operates inside its PPC ✓✓ • Tax revenue decreases while government spending on social grants and the UIF increases ✓✓ • Consumer spending falls, which reduces demand and leads to further job losses ✓✓ • Crime and social unrest (protests) increase, which discourages investment ✓✓ • Income inequality increases ✓✓ Evaluation: unemployment is South Africa’s most serious economic problem, because it causes poverty and inequality and slows growth; the costs are greater than the short-term benefits (e.g. lower wage pressure) ✓✓ (Accept any other correct relevant response) (A maximum of 2 marks may be allocated for mere listing of facts/examples) (Max. 10) CONCLUSION Unemployment in South Africa has many structural and cyclical causes, so faster economic growth must be combined with better education and skills, support for small businesses and labour-intensive investment to create jobs. ✓✓ (Accept any other correct relevant higher-order conclusion) (Max. 2) [40] TOTAL SECTION C: 40 GRAND TOTAL: 150 Copyright reserved