Economics Grade 11 P1 November Mock 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 The reward (remuneration) for labour as a factor of production is … A rent. B interest. C wages. D profit. 1.1.2 An economic system in which the state owns and controls most of the factors of production is a … economy. A market B mixed C traditional D centrally planned 1.1.3 The total value of all final goods and services produced within the borders of a country during a given period is the … A gross national product. B gross domestic product. C gross national income. D gross domestic expenditure. 1.1.4 Agriculture, forestry, fishing and mining are found in the … sector. A secondary B tertiary C informal D primary 1.1.5 The South African policy introduced in 1994 that focused on meeting basic needs such as housing, water and electricity was the … A Growth, Employment and Redistribution strategy (GEAR). B Accelerated and Shared Growth Initiative for South Africa (AsgiSA). C Reconstruction and Development Programme (RDP). D National Development Plan (NDP). 1.1.6 A Gini coefficient of zero (0) indicates … A perfect inequality. B perfect equality. C a high level of poverty. D a low rate of economic growth. Copyright reserved Please turn over

Economics/P1 4 Hlayiso/Mock 2026 NSC Mock 1.1.7 The process through which commercial banks increase the money supply by lending out a part of their deposits is called … A credit creation. B moral suasion. C bank failure. D the cash reserve requirement. 1.1.8 Knowledge that is unique to a particular culture or community and is passed down from generation to generation is known as … A intellectual property. B formal education. C indigenous knowledge. D human capital. (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 Economic rent A the interest rate at which the South African Reserve Bank lends money to commercial banks 1.2.2 Capital deepening B goods that are used as inputs in the production of other goods 1.2.3 Market economy C the basic physical structures, such as roads, power lines and water networks, that an economy needs to function 1.2.4 Intermediate goods D the payment to a factor of production in excess of the minimum needed to keep it in its present use 1.2.5 Land restitution E a decrease in the value of the rand against other currencies 1.2.6 Repo rate F an increase in the amount of capital per worker 1.2.7 Economic G the return of land, or compensation, to development people who lost their land because of racially discriminatory laws 1.2.8 Infrastructure H a system in which households and firms decide what to produce through the price mechanism I a sustained improvement in the standard of living and well-being of the population (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 The output produced per worker per unit of time 1.3.2 The value of fixed capital that is used up (worn out) in the production process during a period 1.3.3 Bank deposits that can be withdrawn immediately without giving notice 1.3.4 Payments by the government to households, such as social grants, for which nothing is produced in return 1.3.5 A situation in which a person’s income is too low to afford basic needs such as food, clothing and shelter 1.3.6 An economic system that combines features of the market economy and the centrally planned economy (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 characteristics of labour as a factor of production. (2 x 1) (2) 2.1.2 Why is entrepreneurship regarded as the most important factor of production? (1 x 2) (2) 2.2 Study the table below and answer the questions that follow. NATIONAL ACCOUNTS OF COUNTRY T AT CURRENT PRICES Item R billion Final consumption expenditure by households 4 620 Final consumption expenditure by general government 1 410 Gross fixed capital formation 1 080 Change in inventories 35 Gross domestic expenditure 7 145 Exports of goods and services 2 110 Imports of goods and services 2 050 Gross domestic product at market prices B [Fictitious data compiled by the examiner] 2.2.1 Identify the component of spending with the highest value in the table above. (1) 2.2.2 Name the method used to calculate GDP in the table above. (1) 2.2.3 Briefly describe the term gross fixed capital formation. (2) 2.2.4 Explain why imports are subtracted when GDP is calculated. (2) 2.2.5 Calculate the gross domestic product at market 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. THE STATE AND THE MARKET IN SOUTH AFRICA In South Africa most goods and services are produced by privately owned businesses that compete for customers and set their prices in markets. However, the state also plays an important role: it owns enterprises such as Eskom and Transnet, regulates markets, sets minimum wages in some sectors and provides free basic education and health care to millions of people. Economists continue to debate how large the role of the state should be. Some argue that more competition would lower prices, while others call for more state support to reduce poverty and inequality. [Summary compiled by the examiner] 2.3.1 Identify ONE state-owned enterprise mentioned in the extract above. (1) 2.3.2 Name ONE characteristic of a centrally planned economy. (1) 2.3.3 Briefly describe the term mixed economy. (2) 2.3.4 Explain the role of the price mechanism in a market economy. (2) 2.3.5 How can government intervention in a mixed economy benefit poor households? (2 x 2) (4) 2.4 Briefly discuss natural resources and entrepreneurship as factors of production. (2 x 4) (8) 2.5 How can the government improve the quality of labour in South Africa? (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 methods used by the South African government to redistribute income. (2 x 1) (2) 3.1.2 Why is economic growth not always accompanied by economic development? (1 x 2) (2) 3.2 Study the graph below and answer the questions that follow. LORENZ CURVE OF COUNTRY V 100 80 Cumulative % of income 60 y A 40 lit ua eq of line 20 B 12 Lorenz curve 0 20 40 60 80 100 Cumulative % of population Area A = 2 280 units Area B = 2 720 units [Fictitious data compiled by the examiner] 3.2.1 Identify the percentage of income earned by the poorest 40% of the population in the graph above. (1) 3.2.2 Name ONE cause of income inequality in South Africa. (1) 3.2.3 Briefly describe the term Lorenz curve. (2) 3.2.4 Explain what will happen to the Lorenz curve if income becomes more equally distributed. (2) 3.2.5 Use the information above to calculate the Gini coefficient of Country V. 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. SOUTH AFRICA’S NATIONAL DEVELOPMENT PLAN (NDP) The National Development Plan, also called Vision 2030, was adopted by government in 2012. Its main aims are to eliminate poverty and to reduce inequality by 2030. The plan identifies the creation of jobs, a better-quality education system, reliable infrastructure and a capable state as key priorities. More than ten years after its adoption, progress has been mixed. Access to basic services has improved, but slow economic growth and high unemployment, especially among young people, have made it difficult to reach the targets of the plan. [Summary compiled by the examiner] 3.3.1 Identify the year in which the NDP was adopted. (1) 3.3.2 Name ONE South African development policy that was implemented before the NDP. (1) 3.3.3 Briefly describe the term economic growth. (2) 3.3.4 Explain why high unemployment makes it difficult to reduce poverty. (2) 3.3.5 How can investment in education help South Africa to achieve the goals of the NDP? (2 x 2) (4) 3.4 Briefly discuss income per capita and the Human Development Index (HDI) as indicators of economic development. (2 x 4) (8) 3.5 Examine the importance of indigenous knowledge systems for economic development in rural communities. (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 social services provided by the South African government. (2 x 1) (2) 4.1.2 How does an increase in the repo rate help the South African Reserve Bank to fight inflation? (1 x 2) (2) 4.2 Study the graph below and answer the questions that follow. CONTRIBUTION OF INDUSTRIES TO GROSS VALUE ADDED (GVA) OF COUNTRY M Personal services 5 General government services 17 Finance, real estate & business 24 Transport & communication 9 Trade & accommodation 15 Construction 3 Electricity, gas & water 3 Manufacturing 13 Mining & quarrying 8 Agriculture, forestry & fishing 3 0 5 10 15 20 25 Percentage (%) of GVA [Fictitious data compiled by the examiner] 4.2.1 Identify the industry that made the largest contribution to GVA in Country M. (1) 4.2.2 Name the sector to which manufacturing belongs. (1) 4.2.3 Briefly describe the term tertiary sector. (2) 4.2.4 Explain why the share of the primary sector in GVA usually decreases as a country develops. (2) 4.2.5 How can growth in the secondary sector contribute to job creation? (2 x 2) (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. TRAPPED IN DEBT A survey commissioned by a consumer organisation in a North West town found that four out of every ten borrowers use more than half of their monthly income to repay debt. Many of them borrow from unregistered money lenders (mashonisas) who charge very high interest and often keep borrowers’ bank cards and identity documents. In terms of the National Credit Act, all credit providers must be registered, must check whether a client can afford a loan and may not charge interest above the legal maximum. [Examiner’s own – fictitious survey for assessment purposes] 4.3.1 Identify, in the extract above, ONE unfair practice of unregistered money lenders. (1) 4.3.2 Name the institution that registers and regulates credit providers in South Africa. (1) 4.3.3 Briefly describe the term credit. (2) 4.3.4 Explain why the South African Reserve Bank is called the lender of last resort. (2) 4.3.5 How can consumers protect themselves against over-indebtedness? (2 x 2) (4) 4.4 Briefly discuss the South African Reserve Bank as banker to the government and as custodian of gold and foreign exchange reserves. (2 x 4) (8) 4.5 How can improved transport infrastructure promote economic growth in rural areas? (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 capital as a factor of production. (26 marks) • How can the government encourage capital formation in South Africa? (10 marks) [40] 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 Broad-Based Black Economic Empowerment (B-BBEE) in reducing economic inequality in South Africa. (10 marks) [40] TOTAL SECTION C: 40 GRAND TOTAL: 150 Copyright reserved