Economics Grade 11 Paper 1 November Mock 2026 Memo (English)

hlayiso mock exams Practice Series: Grade 11 Exam Preparation WWW.HLAYISO.COM NATIONAL SENIOR CERTIFICATE GRADE 11 ECONOMICS P1 NOVEMBER EXAMINATION 2026 (MOCK) MARKING GUIDELINES MARKS: 150 These marking guidelines consist of 16 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. 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. • 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 C – wages ✓✓ 1.1.2 D – centrally planned ✓✓ 1.1.3 B – gross domestic product ✓✓ 1.1.4 D – primary ✓✓ 1.1.5 C – Reconstruction and Development Programme ✓✓ 1.1.6 B – perfect equality ✓✓ 1.1.7 A – credit creation ✓✓ 1.1.8 C – indigenous knowledge ✓✓ (8 x 2) (16) 1.2 MATCHING ITEMS 1.2.1 D – the payment to a factor of production in excess of the minimum needed to keep it in its present use ✓ 1.2.2 F – an increase in the amount of capital per worker ✓ 1.2.3 H – a system in which households and firms decide what to produce through the price mechanism ✓ 1.2.4 B – goods that are used as inputs in the production of other goods ✓ 1.2.5 G – the return of land, or compensation, to people who lost their land because of racially discriminatory laws ✓ 1.2.6 A – the interest rate at which the South African Reserve Bank lends money to commercial banks ✓ 1.2.7 I – a sustained improvement in the standard of living and well-being of the population ✓ 1.2.8 C – the basic physical structures, such as roads, power lines and water networks, that an economy needs to function ✓ (8 x 1) (8) 1.3 GIVE THE TERM 1.3.1 Labour productivity ✓ 1.3.2 Depreciation/Consumption of fixed capital ✓ 1.3.3 Demand deposits ✓ 1.3.4 Transfer payments ✓ 1.3.5 Absolute poverty ✓ 1.3.6 Mixed economy ✓ (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 characteristics of labour as a factor of production. • Labour is a human resource / it cannot be separated from the worker ✓ • Labour is a primary (original) factor of production ✓ • Labour cannot be stored ✓ • Labour differs in quality (skills, education, experience) ✓ • Labour is not perfectly mobile ✓ • The supply of labour depends on the size of the population and the labour force participation rate ✓ (Accept any other correct relevant response) (2 x 1) (2) 2.1.2 Why is entrepreneurship regarded as the most important factor of production? Without an entrepreneur the other factors of production (natural resources, labour and capital) would not be combined and organised to produce goods and services ✓✓ (Accept any other correct relevant response) (1 x 2) (2) 2.2.1 Identify the component of spending with the highest value. Final consumption expenditure by households ✓ (1) 2.2.2 Name the method used to calculate GDP in the table. Expenditure method ✓ (1) 2.2.3 Briefly describe the term gross fixed capital formation. Spending by businesses, government and households on new capital goods such as buildings, machinery and equipment during a period, before depreciation is subtracted ✓✓ (Accept any other correct relevant response) (2) 2.2.4 Explain why imports are subtracted when GDP is calculated. Imports are goods and services produced in other countries; they are included in domestic spending (GDE) and must therefore be subtracted so that GDP measures only what is produced within the country ✓✓ (Accept any other correct relevant response) (2) 2.2.5 Calculate the GDP at market prices (B). GDP at market prices = GDE + exports – imports = R7 145 bn + R2 110 bn – R2 050 bn ✓ ✓ ✓ = R7 205 billion ✓ (Accept: C + G + I (GFCF + change in inventories) + (X – M) = 4 620 + 1 410 + 1 080 + 35 + 2 110 – 2 050 = R7 205 bn) (4) Copyright reserved Please turn over

Economics/P1 5 Hlayiso/Mock 2026 NSC – Marking Guidelines 2.3.1 Identify ONE state-owned enterprise mentioned in the extract. • Eskom ✓ • Transnet ✓ (1) 2.3.2 Name ONE characteristic of a centrally planned economy. • The state owns and controls most of the factors of production ✓ • Central planning by the state decides what, how and for whom to produce ✓ • Prices are set by the state, not by market forces ✓ • There is little or no consumer sovereignty/freedom of choice ✓ • Collective (common) economic goals ✓ (Accept any other correct relevant response) (1) 2.3.3 Briefly describe the term mixed economy. An economic system in which both the private sector (through markets) and the state (through public ownership and regulation) take part in deciding what, how and for whom to produce ✓✓ (Accept any other correct relevant response) (2) 2.3.4 Explain the role of the price mechanism in a market economy. Prices, determined by the interaction of demand and supply, signal to producers what to produce and to consumers what to buy, so that scarce resources are allocated to their most valued uses ✓✓ (Accept any other correct relevant response) (2) 2.3.5 How can government intervention in a mixed economy benefit poor households? • Free basic services, e.g. free education, primary health care and free basic water, reduce the cost of living of poor households ✓✓ • Social grants (e.g. child support grants) increase the disposable income of poor households ✓✓ • Minimum wage laws protect vulnerable workers against exploitation ✓✓ • Subsidised housing and electricity improve the standard of living of the poor ✓✓ • Regulation of markets (e.g. competition policy) prevents firms from charging excessive prices ✓✓ (Accept any other correct relevant response) (2 x 2) (4) Copyright reserved Please turn over

Economics/P1 6 Hlayiso/Mock 2026 NSC – Marking Guidelines 2.4 Briefly discuss natural resources and entrepreneurship as factors of production. Natural resources ✓ • Natural resources are all the gifts of nature that are used in production, e.g. land, minerals, water, forests and fish ✓✓ • They are a primary factor of production and are limited in supply (fixed/scarce) ✓✓ • They may be renewable (e.g. forests, fish) or non-renewable (e.g. coal, gold) ✓✓ • Their quality differs, e.g. the fertility of soil and the grade of mineral ores ✓✓ • The remuneration (reward) for natural resources is rent ✓✓ (Max. 4) Entrepreneurship ✓ • Entrepreneurs combine natural resources, labour and capital to produce goods and services ✓✓ • They take the risk of starting and running a business ✓✓ • They are innovative and identify new opportunities, products and methods of production ✓✓ • Entrepreneurs create jobs and contribute to economic growth ✓✓ • The remuneration (reward) for entrepreneurship is profit ✓✓ (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) 2.5 How can the government improve the quality of labour in South Africa? • By increasing spending on education to improve the quality of schooling, especially in mathematics and science ✓✓ • By funding Technical and Vocational Education and Training (TVET) colleges to develop technical and artisan skills ✓✓ • By providing bursaries and student funding (e.g. NSFAS) so that more young people obtain tertiary qualifications ✓✓ • Through SETAs and learnerships that provide on-the-job training linked to the needs of industries ✓✓ • By improving health care and nutrition, so that workers are healthier and more productive ✓✓ • By encouraging the immigration of people with scarce skills ✓✓ • By offering tax incentives to businesses that train their 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] Copyright reserved Please turn over

Economics/P1 7 Hlayiso/Mock 2026 NSC – Marking Guidelines QUESTION 3: ECONOMIC PURSUITS 40 MARKS – 30 MINUTES 3.1.1 Name any TWO methods used by the South African government to redistribute income. • Progressive income tax ✓ • Cash benefits/social grants ✓ • Benefits in kind, e.g. free health care and education ✓ • Minimum wages ✓ • Subsidies, e.g. on housing ✓ • Public works programmes (e.g. EPWP) ✓ (Accept any other correct relevant response) (2 x 1) (2) 3.1.2 Why is economic growth not always accompanied by economic development? Growth may benefit only a small part of the population (unequal distribution), so the standard of living of most people, e.g. their access to health care, education and jobs, does not improve ✓✓ (Accept any other correct relevant response) (1 x 2) (2) 3.2.1 Identify the percentage of income earned by the poorest 40%. 12% ✓ (1) 3.2.2 Name ONE cause of income inequality in South Africa. • High unemployment ✓ • Unequal access to (quality) education and skills ✓ • The legacy of apartheid ✓ • Unequal ownership of wealth/assets, e.g. land ✓ • Large differences in wages between skilled and unskilled workers ✓ (Accept any other correct relevant response) (1) 3.2.3 Briefly describe the term Lorenz curve. A graph that shows the cumulative percentage of income received by cumulative percentages of the population, which illustrates the degree of income inequality ✓✓ (Accept any other correct relevant response) (2) 3.2.4 Explain what will happen to the Lorenz curve if income becomes more equally distributed. The Lorenz curve will move closer to (shift towards) the line of equality, so that the area between the curve and the line of equality (area A) becomes smaller ✓✓ (Accept any other correct relevant response) (2) Copyright reserved Please turn over

Economics/P1 8 Hlayiso/Mock 2026 NSC – Marking Guidelines 3.2.5 Calculate the Gini coefficient of Country V. Area A Gini coefficient = Area A + Area B 2 280 2 280 = ✓ ✓= ✓ 2 280 + 2 720 5 000 = 0,46 (0,456) ✓ (4) 3.3.1 Identify the year in which the NDP was adopted. 2012 ✓ (1) 3.3.2 Name ONE South African development policy implemented before the NDP. • Reconstruction and Development Programme (RDP) ✓ • Growth, Employment and Redistribution strategy (GEAR) ✓ • Accelerated and Shared Growth Initiative for South Africa (AsgiSA) ✓ • Joint Initiative on Priority Skills Acquisition (JIPSA) ✓ • New Growth Path (NGP) ✓ (1) 3.3.3 Briefly describe the term economic growth. An increase in the production of goods and services in a country over a period, measured by the percentage increase in real GDP ✓✓ (Accept any other correct relevant response) (2) 3.3.4 Explain why high unemployment makes it difficult to reduce poverty. Unemployed people do not earn an income from work, so they cannot afford basic needs and depend on grants or family support, which keeps households in poverty ✓✓ (Accept any other correct relevant response) (2) 3.3.5 How can investment in education help South Africa to achieve the goals of the NDP? • Better-educated workers are more productive and employable, which reduces unemployment ✓✓ • Skilled people earn higher incomes, which reduces poverty and inequality ✓✓ • An educated population can start businesses and create jobs (entrepreneurship) ✓✓ • Education improves the capacity of the state, e.g. skilled public servants deliver better services ✓✓ • Higher skills attract investment, which increases economic growth ✓✓ (Accept any other correct relevant response) (2 x 2) (4) Copyright reserved Please turn over

Economics/P1 9 Hlayiso/Mock 2026 NSC – Marking Guidelines 3.4 Briefly discuss income per capita and the HDI as indicators of economic development. Income per capita ✓ • Income per capita is the total income (GNI/GDP) of a country divided by its population ✓✓ • It shows the average income per person and is used to compare standards of living between countries ✓✓ • The World Bank uses GNI per capita to classify countries as low-, middle- or high-income countries ✓✓ • However, it is an average that does not show how income is distributed or the quality of life ✓✓ (Max. 4) Human Development Index (HDI) ✓ • The HDI is a composite index published by the United Nations Development Programme (UNDP) ✓✓ • It combines life expectancy (health), education (years of schooling) and income per capita (standard of living) ✓✓ • Its value lies between 0 and 1; the closer the value is to 1, the higher the level of development ✓✓ • It gives a broader picture of well-being than income alone ✓✓ (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) 3.5 Examine the importance of indigenous knowledge systems for economic development in rural communities. • Traditional farming methods (e.g. crop rotation, drought-resistant seeds) improve food security in rural areas ✓✓ • Traditional medicine provides affordable health care and may lead to the development of new medicines ✓✓ • Indigenous crafts, art and music create self-employment and income through sales to tourists ✓✓ • Indigenous knowledge supports cultural tourism, which brings income into rural communities ✓✓ • Knowledge of local plants and natural resources promotes the sustainable use of the environment ✓✓ • It can be protected and commercialised (e.g. rooibos, hoodia) so that communities share in the benefits ✓✓ (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 10 Hlayiso/Mock 2026 NSC – Marking Guidelines QUESTION 4: MACROECONOMICS AND ECONOMIC PURSUITS 40 MARKS – 30 MINUTES 4.1.1 Name any TWO social services provided by the government. • Education ✓ • Health care ✓ • Housing ✓ • Social security/social grants ✓ • Water and sanitation ✓ • Electricity (free basic services) ✓ (Accept any other correct relevant response) (2 x 1) (2) 4.1.2 How does an increase in the repo rate help the SARB to fight inflation? A higher repo rate makes borrowing more expensive, so households and businesses borrow and spend less, which reduces demand and the pressure on prices ✓✓ (Accept any other correct relevant response) (1 x 2) (2) 4.2.1 Identify the industry with the largest contribution to GVA. Finance, real estate and business services ✓ (1) 4.2.2 Name the sector to which manufacturing belongs. Secondary sector ✓ (1) 4.2.3 Briefly describe the term tertiary sector. The sector of the economy that provides services, e.g. trade, transport, finance and government services ✓✓ (Accept any other correct relevant response) (2) 4.2.4 Explain why the share of the primary sector usually decreases as a country develops. As incomes rise, people spend a larger share of their income on manufactured goods and services, and production shifts from agriculture and mining to the secondary and tertiary sectors ✓✓ (Accept any other correct relevant response) (2) Copyright reserved Please turn over

Economics/P1 11 Hlayiso/Mock 2026 NSC – Marking Guidelines 4.2.5 How can growth in the secondary sector contribute to job creation? • New and expanding factories employ more workers, including semi-skilled workers ✓✓ • Processing raw materials locally (beneficiation) creates jobs that would otherwise be created abroad ✓✓ • Factories buy inputs from the primary sector and use services (transport, finance), which creates jobs in other sectors (backward and forward linkages) ✓✓ • Construction of new plants and infrastructure creates jobs in the construction industry ✓✓ • Higher incomes of factory workers increase spending, which creates more jobs (multiplier effect) ✓✓ (Accept any other correct relevant response) (2 x 2) (4) 4.3.1 Identify ONE unfair practice of unregistered money lenders. • They charge very high interest ✓ • They keep borrowers’ bank cards ✓ • They keep borrowers’ identity documents ✓ (1) 4.3.2 Name the institution that registers and regulates credit providers. National Credit Regulator (NCR) ✓ (1) 4.3.3 Briefly describe the term credit. An arrangement in which a borrower receives money, goods or services now and agrees to repay the amount later, usually with interest ✓✓ (Accept any other correct relevant response) (2) 4.3.4 Explain why the SARB is called the lender of last resort. When commercial banks experience a shortage of cash (liquidity) and cannot borrow elsewhere, the SARB lends them money (at the repo rate) to prevent bank failures ✓✓ (Accept any other correct relevant response) (2) 4.3.5 How can consumers protect themselves against over-indebtedness? • Draw up a budget and limit debt repayments to an affordable part of income ✓✓ • Borrow only from registered credit providers ✓✓ • Avoid buying luxury goods on credit and save before buying ✓✓ • Read and understand credit agreements, including the interest rate and fees, before signing ✓✓ • Apply for debt counselling/debt review when they cannot meet their repayments ✓✓ (Accept any other correct relevant response) (2 x 2) (4) Copyright reserved Please turn over

Economics/P1 12 Hlayiso/Mock 2026 NSC – Marking Guidelines 4.4 Briefly discuss the SARB as banker to the government and as custodian of gold and foreign exchange reserves. Banker to the government ✓ • The SARB keeps the main account of the government (the Exchequer Account) ✓✓ • It receives government revenue and makes payments on behalf of the government ✓✓ • It manages government debt, e.g. issuing government bonds on behalf of National Treasury ✓✓ • It advises the government on financial and economic matters ✓✓ (Max. 4) Custodian of gold and foreign exchange reserves ✓ • The SARB keeps (manages) the country’s official gold and foreign exchange reserves ✓✓ • The reserves are used to pay for imports and foreign debt and to finance balance of payments deficits ✓✓ • The SARB may buy or sell foreign currency to reduce large fluctuations in the exchange rate of the rand ✓✓ • Adequate reserves build the confidence of foreign investors in 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) 4.5 How can improved transport infrastructure promote economic growth in rural areas? • Better roads reduce the cost and time of transporting farm products to markets, which increases farmers’ income ✓✓ • Businesses are attracted to rural areas when goods can be moved easily, which increases investment and jobs ✓✓ • Workers can travel to jobs in nearby towns, which increases household income ✓✓ • Access to schools, clinics and services improves, which increases productivity ✓✓ • Tourism to rural areas increases when they are easy to reach ✓✓ • The construction and maintenance of roads and rail lines create jobs locally ✓✓ (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 13 Hlayiso/Mock 2026 NSC – Marking Guidelines SECTION C QUESTION 5: MACROECONOMICS 40 MARKS – 40 MINUTES Discuss in detail capital as a factor of production. (26 marks) How can the government encourage capital formation in South Africa? (10 marks) INTRODUCTION Capital refers to man-made goods, such as machinery, equipment, tools and buildings, that are used to produce other goods and services. ✓✓ (Accept any other correct relevant introduction) (Max. 2) BODY: MAIN PART Nature and characteristics of capital ✓ • Capital is a secondary (derived) factor of production, because it is produced by combining natural resources and labour ✓✓ • Capital goods are not wanted for their own sake but to increase the production of other goods (indirect production) ✓✓ • Capital increases the productivity of labour ✓✓ • Capital depreciates (wears out) over time and must be replaced ✓✓ • The use of capital requires savings, because consumption must be given up now to produce capital goods ✓✓ Classification of capital ✓ • Fixed capital: durable goods that are used repeatedly over a long period, e.g. buildings, machines and vehicles ✓✓ • Circulating (working) capital: goods that are used up in a single production process, e.g. raw materials and fuel ✓✓ • Private capital: capital owned by individuals and businesses, e.g. factories ✓✓ • Social (public) capital: capital owned by the state for the use of the community, e.g. roads, schools and hospitals ✓✓ • Human capital: the skills, knowledge and experience of workers that increase their productivity ✓✓ • Financial capital: money that is used to buy real capital goods ✓✓ Capital formation ✓ • Capital formation is the process of increasing the stock of real capital in a country over a period ✓✓ • It requires saving, financial institutions that channel savings to investors, and entrepreneurs who are willing to invest ✓✓ • Gross capital formation includes replacement of worn-out capital; net capital formation is gross capital formation minus depreciation ✓✓ • Capital deepening: the amount of capital per worker increases, which raises labour productivity ✓✓ • Capital widening: the stock of capital increases at the same rate as the labour force, so capital per worker stays the same ✓✓ Remuneration and importance of capital ✓ • The remuneration (reward) for capital is interest ✓✓ • Capital makes it possible to produce larger quantities of better-quality goods at lower cost per unit ✓✓ Copyright reserved Please turn over

Economics/P1 14 Hlayiso/Mock 2026 NSC – Marking Guidelines • Investment in capital creates jobs and promotes economic growth ✓✓ • Social capital (infrastructure) supports the production of all businesses ✓✓ (Accept any other correct relevant response) (A maximum of 8 marks may be allocated for headings/examples) (Max. 26) ADDITIONAL PART • Encourage saving through tax-free savings accounts and tax incentives on retirement savings, which provides funds for investment ✓✓ • Keep interest rates stable and inflation low, which lowers the cost of borrowing for investment ✓✓ • Offer tax incentives, e.g. accelerated depreciation allowances, to businesses that buy new machinery ✓✓ • Increase public investment in infrastructure (energy, transport, water), which encourages private investment ✓✓ • Create special economic zones and industrial parks with incentives that attract investors ✓✓ • Provide policy certainty and reduce red tape, which builds investor confidence ✓✓ • Provide finance to small businesses through development finance institutions, e.g. the IDC ✓✓ (Accept any other correct relevant response) (A maximum of 2 marks may be allocated for mere listing of facts/examples) (Max. 10) CONCLUSION Capital is essential for higher productivity and long-term economic growth; South Africa should raise domestic savings and investor confidence so that the rate of capital formation can increase. ✓✓ (Accept any other correct relevant higher-order conclusion) (Max. 2) [40] Copyright reserved Please turn over

Economics/P1 15 Hlayiso/Mock 2026 NSC – Marking Guidelines QUESTION 6: ECONOMIC PURSUITS 40 MARKS – 40 MINUTES Discuss in detail the methods used by the South African government to redistribute income and wealth. (26 marks) Evaluate the success of B-BBEE in reducing economic inequality in South Africa. (10 marks) INTRODUCTION Redistribution of income and wealth refers to government measures that transfer income and assets from richer groups to poorer groups in order to reduce inequality. ✓✓ (Accept any other correct relevant introduction) (Max. 2) BODY: MAIN PART Progressive income tax ✓ • Higher-income earners pay a higher percentage of their income in tax than lower-income earners ✓✓ • People who earn below the tax threshold pay no income tax ✓✓ • The revenue is used to finance services and grants for the poor ✓✓ Cash benefits (social grants) ✓ • The state pays grants to vulnerable people, e.g. the child support grant, old-age grant and disability grant ✓✓ • Grants are paid through the South African Social Security Agency (SASSA) and increase the disposable income of poor households ✓✓ Benefits in kind ✓ • Free or subsidised services such as no-fee schools, free primary health care and school nutrition programmes ✓✓ • Free basic water and electricity for poor households ✓✓ • Subsidised (RDP) housing increases the wealth of poor households ✓✓ Minimum wages and labour market policies ✓ • The national minimum wage protects low-paid workers against exploitation and increases their income ✓✓ • Employment equity legislation promotes fair access to jobs and promotions for previously disadvantaged groups ✓✓ Redistribution of wealth ✓ • Land restitution: land, or compensation, is given to people who lost land through racially discriminatory laws after 1913 ✓✓ • Land redistribution: the state buys land and transfers it to previously disadvantaged people for farming and housing ✓✓ • Land tenure reform: secures the rights of people who live on land they do not formally own ✓✓ • Broad-Based Black Economic Empowerment: increases black ownership and control of businesses ✓✓ • Taxes on wealth, e.g. capital gains tax, estate duty and donations tax ✓✓ Public works and job creation ✓ • Programmes such as the Expanded Public Works Programme (EPWP) provide temporary jobs and income to unemployed people ✓✓ (Accept any other correct relevant response) Copyright reserved Please turn over

Economics/P1 16 Hlayiso/Mock 2026 NSC – Marking Guidelines (A maximum of 8 marks may be allocated for headings/examples) (Max. 26) ADDITIONAL PART Successes • B-BBEE has increased the number of black people in senior management and ownership positions ✓✓ • Preferential procurement has helped many black-owned small businesses to obtain government contracts ✓✓ • Enterprise and supplier development has provided finance and support to emerging black businesses ✓✓ • Skills development elements have increased training for black employees ✓✓ Shortcomings • Benefits have often gone to a small, politically connected elite rather than the broad population ✓✓ • “Fronting” (using black people as owners in name only) undermines the purpose of the policy ✓✓ • It has done little for the unemployed and the very poor, so income inequality remains very high ✓✓ • Compliance costs and uncertainty may discourage some investment ✓✓ (Accept any other correct relevant response) (A maximum of 2 marks may be allocated for mere listing of facts/examples) (Max. 10) CONCLUSION Redistribution through taxes, grants and asset reform has reduced poverty, but inequality remains among the highest in the world; sustainable redistribution requires faster economic growth and job creation. ✓✓ (Accept any other correct relevant higher-order conclusion) (Max. 2) [40] TOTAL SECTION C: 40 GRAND TOTAL: 150 Copyright reserved