# Economics Grade 12 P1 NSC November Mock 2026 QP (Eng) > Grade 12 Economics Paper 1 question paper from the NSC November Mock Exam 2026 (English), 12 pages. Read online or download the free PDF. - Page: https://www.hlayiso.com/library/grade-12-economics-2026-nsc-november-mock-exam-question-paper-paper-1/023ba3f5-4bf7-4f43-a8b7-ce5afdd06704 - Updated: 2026-10-29 - Subject: Economics - Grade: Grade 12 - Language: English - Document type: Question paper - Year: 2026 - Exam period: NSC November Mock Exam - Paper: 1 - Publisher: Hlayiso - Curriculum: CAPS - Pages: 12 Breadcrumbs: [Home](https://www.hlayiso.com/) › [Library](https://www.hlayiso.com/library) › [Grade 12](https://www.hlayiso.com/library/grade-12) › [Economics](https://www.hlayiso.com/library/grade-12/economics) › [Economics Grade 12 P1 NSC November Mock 2026 QP (Eng)](https://www.hlayiso.com/library/grade-12-economics-2026-nsc-november-mock-exam-question-paper-paper-1/023ba3f5-4bf7-4f43-a8b7-ce5afdd06704) ## About this document Economics · Grade 12 · NSC November Mock Exam · 2026 · English. Question paper, 12 pages. Read online or download the PDF. Read it free online on the page above; download the PDF from there. ## Document text Text extracted from the PDF. Layout, diagrams and tables may not survive extraction. ### Page 1 Mock hlayiso mock exams Practice Series: Grade 12 NSC Preparation WWW.HLAYISO.COM NATIONAL SENIOR CERTIFICATE GRADE 12 ECONOMICS P1 MOCK EXAMINATION 2026 MARKS: 150 TIME: 2 hours This question paper consists of 12 pages. Copyright reserved Please turn over ### Page 2 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 ### Page 3 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 turning point at which economic activity reaches its lowest level in a business cycle is called the … A peak. B expansion. C trough. D boom. 1.1.2 The total value of all final goods and services produced by the permanent residents of a country, whether inside or outside its borders, is called … A gross national product. B gross domestic product. C gross value added. D net domestic product. 1.1.3 A tax system in which the tax rate decreases as income increases is called a … tax. A progressive B proportional C direct D regressive 1.1.4 The size of the multiplier will increase when the marginal propensity to … increases. A save B consume C import D pay tax 1.1.5 The exports and imports of goods and services are recorded in the … of the balance of payments. A financial account B capital transfer account C current account D unrecorded transactions 1.1.6 A depreciation of the rand will make South African exports … A more expensive. B less competitive. C unaffordable. D cheaper. Copyright reserved Please turn over ### Page 4 Economics/P1 4 Hlayiso/Mock 2026 NSC Mock 1.1.7 The South African plan that aims to eliminate poverty and reduce inequality by 2030 is the … A National Development Plan. B Reconstruction and Development Programme. C Growth, Employment and Redistribution strategy. D Accelerated and Shared Growth Initiative. 1.1.8 Countries with high levels of income per capita and a well-developed industrial base are classified as … countries. A developing B developed C emerging D least developed (8 x 2) (16) Copyright reserved Please turn over ### Page 5 Economics/P1 5 Hlayiso/Mock 2026 NSC Mock 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 Amplitude A a technique used to smooth out short-term fluctuations in time-series data 1.2.2 Injections B geographically designated areas that offer incentives to attract investment in targeted industries 1.2.3 Moving average C spending that is added to the circular flow, such as investment and exports 1.2.4 Terms of trade D the ratio of the prices of exports to the prices of imports 1.2.5 Special economic E a tax levied on goods imported into a zones country 1.2.6 Dumping F the distance between the trend line and a peak or a trough of a business cycle 1.2.7 Human Development G a composite indicator of life Index expectancy, education and income 1.2.8 Fiscal policy H the use of government spending and taxation to influence economic activity I selling goods in a foreign market at a price below the cost of production (8 x 1) (8) 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 time it takes for a business cycle to move from one peak to the next peak 1.3.2 Taxes that are levied on goods and services rather than on income and wealth 1.3.3 A situation in which government expenditure exceeds government revenue 1.3.4 A physical limit placed by the government on the quantity of a product that may be imported 1.3.5 International trade that takes place without any restrictions imposed by governments 1.3.6 The number of babies who die before their first birthday per 1 000 live births (6 x 1) (6) TOTAL SECTION A: 30 Copyright reserved Please turn over ### Page 6 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 components of aggregate expenditure. (2 x 1) (2) 2.1.2 How can a decrease in interest rates affect investment spending by businesses? (1 x 2) (2) 2.2 Study the graph below and answer the questions that follow. BUSINESS CYCLE Real GDP A trend line C B 0 Time [Examiner’s own] 2.2.1 Identify the turning point labelled A in the graph above. (1) 2.2.2 Name the measurement of the business cycle labelled C. (1) 2.2.3 Briefly describe the term recession. (2) 2.2.4 Explain the importance of the trend line in forecasting business cycles. (2) 2.2.5 How can the government use fiscal policy to stimulate the economy during a recession? (2 x 2) (4) Copyright reserved Please turn over ### Page 7 Economics/P1 7 Hlayiso/Mock 2026 NSC Mock 2.3 Study the table below and answer the questions that follow. GROSS DOMESTIC PRODUCT OF COUNTRY K (PRODUCTION METHOD) Item R billion Primary sector 680 Secondary sector 1 210 Tertiary sector 4 450 Gross value added at basic prices 6 340 Taxes on products 790 Subsidies on products 60 Gross domestic product at market prices A [Fictitious data compiled by the examiner] 2.3.1 Identify the sector that made the largest contribution to production in Country K. (1) 2.3.2 Name ONE other method that can be used to calculate gross domestic product. (1) 2.3.3 Briefly describe the term gross value added. (2) 2.3.4 Explain why subsidies on products are subtracted when GDP at market prices is calculated. (2) 2.3.5 Use the information in the table above to calculate the GDP at market prices (A). Show ALL calculations. (4) 2.4 Briefly discuss the Keynesian and the monetarist explanations of business cycles. (2 x 4) (8) 2.5 How can a depreciation of the rand impact the South African economy? (4 x 2) (8) [40] Copyright reserved Please turn over ### Page 8 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 economic indicators used to measure the performance of an economy. (2 x 1) (2) 3.1.2 How can special economic zones (SEZs) promote industrial development? (1 x 2) (2) 3.2 Study the graph below and answer the questions that follow. HUMAN DEVELOPMENT INDEX (HDI) OF FOUR COUNTRIES – 2025 1,0 0,91 0,79 0,8 0,63 HDI value 0,6 0,48 0,4 0,2 0,0 Country P Country Q Country R Country S [Fictitious data compiled by the examiner] 3.2.1 Identify the country with the lowest level of human development in the graph above. (1) 3.2.2 Name the international organisation that publishes the Human Development Index each year. (1) 3.2.3 Briefly describe the term Human Development Index. (2) 3.2.4 Explain why the HDI is a better measure of development than GDP per capita. (2) 3.2.5 How can the government improve the HDI of a country? (2 x 2) (4) 3.3 Study the extract below and answer the questions that follow. REVITALISING INDUSTRIAL PARKS Government continues to revitalise state-owned industrial parks in townships and rural areas through its Industrial Parks Revitalisation Programme. Upgrades include security fencing, lighting, roads, and electricity and water infrastructure. At one rural industrial park, the occupancy of factory buildings rose from 54% to 81% within two years of the upgrades. About 1 200 new jobs were created, mainly in clothing, food processing and furniture manufacturing. [Summary compiled by the examiner; figures are fictitious] Copyright reserved Please turn over ### Page 9 Economics/P1 9 Hlayiso/Mock 2026 NSC Mock 3.3.1 Identify, in the extract above, ONE type of infrastructure that was upgraded. (1) 3.3.2 Name the government department responsible for industrial policy in South Africa. (1) 3.3.3 Briefly describe the term industrial development. (2) 3.3.4 Explain how revitalising industrial parks in rural areas can slow down urbanisation. (2) 3.3.5 How can small businesses benefit from operating in industrial parks? (2 x 2) (4) 3.4 Briefly discuss special economic zones (SEZs) and development corridors as South African regional development initiatives. (2 x 4) (8) 3.5 Evaluate the success of South Africa’s growth and development policies in reducing unemployment. (4 x 2) (8) [40] Copyright reserved Please turn over ### Page 10 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 macroeconomic objectives of the government. (2 x 1) (2) 4.1.2 How can the government reduce a budget deficit? (1 x 2) (2) 4.2 Study the graph below and answer the questions that follow. PHILLIPS CURVE Inflation rate (%) 12 10 PC 8 A 6 4 B 2 0 2 4 6 8 10 12 14 Unemployment rate (%) [Examiner’s own] 4.2.1 Identify the inflation rate at point A in the graph above. (1) 4.2.2 Name the economist after whom the curve in the graph above is named. (1) 4.2.3 Briefly describe the term stagflation. (2) 4.2.4 Explain the effect on inflation and unemployment if the economy moves from point B to point A. (2) 4.2.5 How can supply-side policies help to reduce both inflation and unemployment? (2 x 2) (4) Copyright reserved Please turn over ### Page 11 Economics/P1 11 Hlayiso/Mock 2026 NSC Mock 4.3 Study the cartoon below and answer the questions that follow. DAY SIX WITHOUT WATER And still we Don’t worry, we pay our rates have a plan to every month… draw up a plan! WATER OUTAGE – DAY 6 – Pipe repairs: budget approved in 2024. [Examiner’s own cartoon] 4.3.1 Identify ONE problem of public sector provisioning illustrated in the cartoon above. (1) 4.3.2 Name the principle of taxation according to which people pay for government services in proportion to the benefit they receive. (1) 4.3.3 Briefly describe the term parastatal. (2) 4.3.4 Explain how poor service delivery by municipalities can affect economic growth. (2) 4.3.5 How can the government improve the efficiency of public service delivery? (2 x 2) (4) 4.4 With the aid of a correctly labelled Laffer curve, explain the relationship between tax rates and tax revenue. (8) 4.5 How can regional trade agreements, such as the African Continental Free Trade Area (AfCFTA), benefit South Africa? (4 x 2) (8) [40] TOTAL SECTION B: 80 Copyright reserved Please turn over ### Page 12 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 main components of the balance of payments. (26 marks) • How can South Africa reduce a deficit on the current account of the balance of payments? (10 marks) [40] QUESTION 6: ECONOMIC PURSUITS 40 MARKS – 40 MINUTES • Discuss in detail the arguments in favour of protectionism. (26 marks) • How can import tariffs negatively affect South African consumers and businesses? 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