Economics Grade 11 P1 November Mock Exam 2 2026 QP (Eng)

Mock hlayiso mock exams Practice Series: Grade 11 Exam Preparation WWW.HLAYISO.COM NATIONAL SENIOR CERTIFICATE GRADE 11 ECONOMICS P1 NOVEMBER EXAMINATION 2026 (MOCK) MARKS: 150 TIME: 2 hours This question paper consists of 12 pages. Copyright reserved Please turn over

Economics/P1 2 Hlayiso/Mock 2026 NSC Mock INSTRUCTIONS AND INFORMATION 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. Answer only the required number of questions. Answers in excess of the required number will NOT be marked. 3. Number the answers correctly according to the numbering system used in this question paper. 4. Write the question number above each answer. 5. Read the questions carefully. 6. Start EACH question on a NEW page. 7. Leave 2–3 lines between subsections of questions. 8. 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. 9. Use only black or blue ink. 10. You may use a non-programmable pocket calculator. 11. Write neatly and legibly. Copyright reserved Please turn over

Economics/P1 3 Hlayiso/Mock 2026 NSC Mock SECTION A (COMPULSORY) QUESTION 1 30 MARKS – 20 MINUTES 1.1 Various options are provided as possible answers to the following questions. Choose the answer and write only the letter (A–D) next to the question numbers (1.1.1 to 1.1.8) in the ANSWER BOOK, e.g. 1.1.9 D. 1.1.1 Goods that are available in unlimited quantities and have no price, such as air and sunlight, are called … A economic goods. B free goods. C capital goods. D public goods. 1.1.2 GDP plus primary income received from the rest of the world minus primary income paid to the rest of the world is equal to … A gross domestic expenditure. B gross value added. C gross national income. D gross capital formation. 1.1.3 Savings, taxes and imports are examples of … in the circular flow. A injections B leakages C real flows D transfer payments 1.1.4 The state-owned enterprise responsible for building and maintaining national roads in South Africa is … A Transnet. B Eskom. C SANRAL. D PRASA. 1.1.5 The South African development strategy launched in 2006 with the aim of halving poverty and unemployment by 2014 was the … A Reconstruction and Development Programme (RDP). B Growth, Employment and Redistribution strategy (GEAR). C Accelerated and Shared Growth Initiative for South Africa (AsgiSA). D National Development Plan (NDP). 1.1.6 The Human Development Index (HDI) is calculated and published by the … A World Bank. B International Monetary Fund. C United Nations Development Programme. D South African Reserve Bank. Copyright reserved Please turn over

Economics/P1 4 Hlayiso/Mock 2026 NSC Mock 1.1.7 The function of the South African Reserve Bank of having the sole right to issue banknotes and coins is known as … A bankers’ bank. B bank of issue. C lender of last resort. D custodian of gold reserves. 1.1.8 Furniture, motor vehicles and refrigerators, which last for many years, are examples of … goods. A non-durable B semi-durable C durable D intermediate (8 x 2) (16) 1.2 Choose a description from COLUMN B that matches the item in COLUMN A. Write only the letter (A–I) next to the question numbers (1.2.1 to 1.2.8) in the ANSWER BOOK, e.g. 1.2.9 J. COLUMN A COLUMN B 1.2.1 Entrepreneur A the direct exchange of goods and services for other goods and services without the use of money 1.2.2 Real flow B money that must, by law, be accepted as a means of payment 1.2.3 Gross value added C the person who combines the other factors of production and takes the risk of starting a business 1.2.4 Procurement D the percentage of adults in a country who can read and write 1.2.5 Legal tender E the flow of goods, services and factors of production between the participants in the economy 1.2.6 Literacy rate F the selling of state-owned enterprises or assets to the private sector 1.2.7 Barter G the value of total output minus the value of the intermediate goods used to produce it 1.2.8 Privatisation H the buying of goods and services by the state, often used to favour previously disadvantaged suppliers I a sustained increase in the general price level (8 x 1) (8) Copyright reserved Please turn over

Economics/P1 5 Hlayiso/Mock 2026 NSC Mock 1.3 Give ONE term for each of the following descriptions. Write only the term next to the question numbers (1.3.1 to 1.3.6) in the ANSWER BOOK. Abbreviations, acronyms and examples will NOT be accepted. 1.3.1 A plan of the expected income and expenditure of the government for the coming financial year 1.3.2 People who are excluded from fully taking part in the economy, e.g. because of poverty, disability, gender or where they live 1.3.3 The knowledge, skills and experience of workers that increase their productivity 1.3.4 The interest rate that commercial banks charge their most creditworthy (lowest-risk) clients 1.3.5 A period of at least two consecutive quarters of negative growth in real GDP 1.3.6 The reward (remuneration) for entrepreneurship as a factor of production (6 x 1) (6) TOTAL SECTION A: 30 Copyright reserved Please turn over

Economics/P1 6 Hlayiso/Mock 2026 NSC Mock 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 factors that influence the price of natural resources. (2 x 1) (2) 2.1.2 Why is self-interest regarded as an advantage of a market economy? (1 x 2) (2) 2.2 Study the table below and answer the questions that follow. NATIONAL ACCOUNTS OF COUNTRY R (CURRENT PRICES) Item R billion Compensation of employees 2 140 Net operating surplus 1 210 Consumption of fixed capital 610 Other taxes on production 95 Other subsidies on production 40 Gross value added at basic prices B [Fictitious data compiled by the examiner] 2.2.1 Identify the item in the table above that represents the payment to workers. (1) 2.2.2 Apart from the method used in the table above, name ONE other method of calculating GDP. (1) 2.2.3 Briefly describe the term factor cost. (2) 2.2.4 Explain why other subsidies on production are subtracted when GVA at basic prices is calculated. (2) 2.2.5 Calculate the gross value added at basic prices (B). Show ALL calculations. (4) Copyright reserved Please turn over

Economics/P1 7 Hlayiso/Mock 2026 NSC Mock 2.3 Study the extract below and answer the questions that follow. KEEPING THE LIGHTS ON IN MOLOTO MUNICIPALITY For years, businesses in the fictitious Moloto Municipality lost production every time the national grid could not meet demand. A local bakery estimated that it threw away almost a quarter of its dough during power cuts, and two small furniture factories moved some of their work to another province. In 2025 the municipality signed agreements with independent power producers to buy electricity from a new solar farm and a wind farm. Households and firms were also offered rebates for installing rooftop solar panels. Business owners say production has become more reliable, but they warn that electricity tariffs are still rising faster than their income. [Examiner’s own – fictitious case for assessment purposes] 2.3.1 Identify, in the extract above, ONE renewable source of energy. (1) 2.3.2 Name the state-owned enterprise that generates most of South Africa’s electricity. (1) 2.3.3 Briefly describe the term economic infrastructure. (2) 2.3.4 Explain how an unreliable electricity supply affects the secondary sector. (2) 2.3.5 How can the government improve the supply of electricity in South Africa? (2 x 2) (4) 2.4 Briefly discuss the role of households and the business sector (firms) in the circular flow of an open economy. (2 x 4) (8) 2.5 Evaluate the efficiency of the South African government in delivering social services to communities. (4 x 2) (8) [40] Copyright reserved Please turn over

Economics/P1 8 Hlayiso/Mock 2026 NSC Mock QUESTION 3: ECONOMIC PURSUITS 40 MARKS – 30 MINUTES 3.1 Answer the following questions. 3.1.1 Name any TWO functions of money. (2 x 1) (2) 3.1.2 Why is wealth regarded as a better indicator of economic security than income? (1 x 2) (2) 3.2 Study the graph and the information below and answer the questions that follow. ANNUAL REAL GDP GROWTH RATE OF COUNTRY K (%) 6,0 4,3 4,0 Real GDP growth (%) 2,1 2,0 1,5 0,4 0,8 0,6 0,0 -2,0 -4,0 -6,0 -5,8 2019 2020 2021 2022 2023 2024 2025 Real GDP of Country K (constant 2015 prices) R billion 2024 4 860 2025 4 933 In 2020 the government of Country K closed most businesses for several months to stop the spread of a pandemic. [Fictitious data compiled by the examiner] 3.2.1 Identify the year in which Country K experienced negative economic growth. (1) 3.2.2 Name the institution that publishes official GDP figures in South Africa. (1) 3.2.3 Briefly describe the term real GDP. (2) 3.2.4 Explain how the closing of businesses in 2020 resulted in negative economic growth. (2) 3.2.5 Use the information in the table above to calculate the economic growth rate of Country K for 2025. Show ALL calculations. (4) Copyright reserved Please turn over

Economics/P1 9 Hlayiso/Mock 2026 NSC Mock 3.3 Study the extract below and answer the questions that follow. THE COLLAPSE OF ITHEMBA MUTUAL BANK Ithemba Mutual Bank, a small (fictitious) bank in Mpumalanga, collapsed after it granted large loans to businesses that could not repay them. An investigation also found that two directors had transferred depositors’ money to companies that they secretly owned. When rumours spread, hundreds of depositors queued to withdraw their savings on the same day and the bank ran out of cash. On the recommendation of the Prudential Authority of the South African Reserve Bank, the bank was placed under curatorship. Depositors with balances of up to R100 000 were repaid through the deposit insurance scheme, but some stokvels and small businesses lost part of their savings. [Examiner’s own – fictitious case for assessment purposes] 3.3.1 Identify, in the extract above, ONE reason why Ithemba Mutual Bank failed. (1) 3.3.2 Name ONE other cause of bank failures. (1) 3.3.3 Briefly describe the term bank failure. (2) 3.3.4 Explain how the failure of one bank can reduce confidence in the whole banking system. (2) 3.3.5 How can the South African Reserve Bank prevent bank failures? (2 x 2) (4) 3.4 Differentiate between economic growth and economic development in a country. (2 x 4) (8) 3.5 Analyse the factors that constrain (limit) economic growth in South Africa. (4 x 2) (8) [40] Copyright reserved Please turn over

Economics/P1 10 Hlayiso/Mock 2026 NSC Mock QUESTION 4: MACROECONOMICS AND ECONOMIC PURSUITS 40 MARKS – 30 MINUTES 4.1 Answer the following questions. 4.1.1 Name any TWO functions of commercial banks. (2 x 1) (2) 4.1.2 How can local communities benefit from indigenous knowledge systems? (1 x 2) (2) 4.2 Study the table below and answer the questions that follow. DISTRIBUTION OF INCOME IN COUNTRY D Population group Share of income Cumulative share (households) (%) of income (%) Poorest 20% 2 2 Second 20% 4 6 Third 20% 7 13 Fourth 20% 15 28 Richest 20% 72 100 [Fictitious data compiled by the examiner] 4.2.1 Identify the percentage of income earned by the richest 20% of households in Country D. (1) 4.2.2 Name ONE social grant paid by the South African government that helps to reduce income inequality. (1) 4.2.3 Briefly describe the term Gini coefficient. (2) 4.2.4 Explain whether the Gini coefficient of Country D will be closer to 0 or closer to 1. (2) 4.2.5 Use the cumulative data in the table above to draw a fully labelled Lorenz curve for Country D on a 10 cm × 10 cm square in your ANSWER BOOK. (4) Copyright reserved Please turn over

Economics/P1 11 Hlayiso/Mock 2026 NSC Mock 4.3 Study the extract below and answer the questions that follow. GOING CASHLESS AT THE TAXI RANK At a busy taxi rank in Polokwane, a growing number of vendors now accept payment by debit card and by instant electronic transfer from a cellphone. A fruit seller says that she keeps less cash in her stall, which makes her feel safer, and that the money goes straight into her bank account. Some customers still prefer to pay with banknotes and coins, because they do not have a bank account or worry about bank charges. The South African Reserve Bank remains the only institution allowed to issue banknotes and coins. [Examiner’s own – fictitious case for assessment purposes] 4.3.1 Identify, in the extract above, ONE method of payment that does not use cash. (1) 4.3.2 Name the currency of South Africa. (1) 4.3.3 Briefly describe the term financial inclusion. (2) 4.3.4 Explain ONE advantage for a consumer of paying with a debit card rather than with a credit card. (2) 4.3.5 How can the increased use of electronic payments benefit the South African economy? (2 x 2) (4) 4.4 Briefly discuss low life expectancy and high population growth as characteristics of developing countries. (2 x 4) (8) 4.5 Examine the importance of the primary sector for the South African economy. (4 x 2) (8) [40] TOTAL SECTION B: 80 Copyright reserved Please turn over

Economics/P1 12 Hlayiso/Mock 2026 NSC Mock SECTION C Answer any ONE of the two questions in this section in the ANSWER BOOK. Your answer will be assessed as follows: STRUCTURE OF ESSAY MARK ALLOCATION Introduction Max. 2 The introduction is a lower-order response. • A good starting point will be to define the main concept related to the question topic. • DO NOT include any part of the question in your introduction. • DO NOT repeat any part of the introduction in the body. • Avoid mentioning in the introduction what you are going to discuss in the body. Body Max. 26 Main part: Discuss in detail/Discuss in detail with the aid of graphs/In-depth discussion/ Examine/Critically discuss/Analyse/Compare/Evaluate/Distinguish/ Differentiate/Explain/Assess/Debate A maximum of 8 marks may be allocated for headings/examples. Additional part: Critically discuss/Evaluate/Critically evaluate/Deduce/ Max. 10 Compare/Distinguish/Suggest/Interpret/Debate/How A maximum of 2 marks may be allocated for mere listing of facts. Conclusion Max. 2 Any higher-order conclusion should include: • A brief summary of what has been discussed without repeating facts already mentioned • Any opinion or value judgement on the facts discussed • Additional support information to strengthen the discussion/analysis • A contradictory viewpoint with motivation, if required • Recommendations TOTAL 40 QUESTION 5: MACROECONOMICS 40 MARKS – 40 MINUTES • Discuss in detail the characteristics of the South African mixed economy and show how they differ from those of a centrally planned economy. (26 marks) • Evaluate the role of state-owned enterprises in South Africa’s economy. (10 marks) [40] QUESTION 6: ECONOMIC PURSUITS 40 MARKS – 40 MINUTES • Discuss in detail the functions of the South African Reserve Bank as the central bank. (26 marks) • How can the SARB use monetary policy to slow down an overheating economy? (10 marks) [40] TOTAL SECTION C: 40 GRAND TOTAL: 150 Copyright reserved