ILINGELETHU SECONDARY SCHOOL
ECONOMICS
ECONOMIC PURSUITS & CONTEMPORALY
ISSUES
GRADE 11
SEPT CONTROLLED TEST 2019
Please read all instructions and information on the following page.
Marks:
100
Time:
1 Hour
Date:
September 2019
Examiner:
Mr Banayi (Subject Head)
Moderator:
Ms Tyokwana (Head of Department)
This question paper consists of 9 Pages.
INSTRUCTIONS AND INFORMATION
Read the following instructions carefully before answering the questions.
1.
This question paper consists of THREE sections.
Section A:
Compulsory
Section B:
Consists of TWO independent questions.
Answer ONE question from this section.
Section C:
Consists of TWO questions.
Answer ONE question from this section.
2.
Read the instructions for each question carefully and answer only what is required.
3.
Number the answers correctly according to the numbering system used in this question paper.
4.
Except where other instructions are given, answers must be in full sentences.
5.
Read the questions carefully. Neatness and systematic presentation of facts are required.
6.
Start the answer to each question on a NEW page, for example QUESTION 1 – NEW page,
QUESTION 2 – NEW page, et cetera.
7.
Use the table below as a guideline for marks and time allocation for each question.
SECTION
A:
B:
C:
Short Questions:
COMPULSORY
Direct Questions:
Two direct questions
Answer ONE question.
Essay Questions:
Answer ONE question.
QUESTION
MARKS
TIME
1
2
20
40
10 min.
25 min.
3
40
25 min.
4
40
25 min.
5
40
25 min.
100
1 hour
TOTAL
8.
Non-programmable calculators may be used.
9.
Write neatly and legibly.
2|P a g e
SECTION A (COMPULSORY)
Question 1
1.1.
Choose the most correct answer and only write (A,B or C) next to the corresponding question
number (1.1.1 – 1.1.5) in the ANSWER BOOK, for example 1.1.6 C.
The distribution of income or wealth in a country is represented by
1.1.1 the ...
curve.
A. Phillips
B. Laffer
C. Lorenz
This programme was implemented in 1994 to address the socio1.1.2 economic
problems brought about by the policies of the previous government.
A. HDI
B. RDP
C. Jipsa
The minimum level of income needed to ensure a basic standard of
1.1.3 living is
called ...
A. The poverty line
B. The relative poverty
C. The chronic poverty
1.1.4 The Central Bank of South Africa is the ...
A. Southern African Development Bank
B. Standard Bank of South Africa
C. South African Reserve Bank
1.1.5 The effect of inflation on GDP is taken off by applying the ...
A. Implicit inflator
B. Explicit deflator
C. Implicit deflator
(2)
(2)
(2)
(2)
(2)
(5x2) [10]
3|P a g e
1.2.
Choose a description from COLUMN B that matches a concept in COLUMN A. Only write the
correct letter (A-H) next to the corresponding question number (1.2.1-1.2.6) in the ANSWER
BOOK, for example 1.2.7 I
COLUMN A
1.2.1 Marginalised people
COLUMN B
A. Shows the extent of change in money supply
1.2.2 Indigenous Knowledge B. It is less than money itself
System
C. Financial assistance that need not be repaid
D. People with urgent needs that are not addressed by
the government.
1.2.3 Poverty rate
E. Traditional healing and medicine
1.2.4 Gini coefficient
1.2.5 Cash reserves
1.2.6
F. Percentage of total population living in poverty
G. A statistical measure used to express the
inequality of
income distribution
Grants
H. The amount of a bank assets that is kept in the form of
cash to meet day-to-day withdrawals by its
customers
and financial commitments
(6x1) [6]
1.3
Give ONE term for EACH of the following description. Write only next to the question number
(1.3.1 to 1.3.4) in the ANSWER BOOK. Abbreviations, acronyms and examples will NOT be
accepted.
1.3.1 The index that is used to calculate real GDP
1.3.2 The process of accumulating Physical and financial assets
1.3.3 A condition where one is poor compared to others.
1.3.4 Act as go between borrowers and lenders
4x1
TOTAL SECTION A
4|P a g e
(4)
[20]
SECTION B
ANSWER ONE QUESTION
QUESTION 2: ECONOMIC PURSUIT
2.1
2.2
Answer the following questions:
2.1.1
Name TWO sources of measuring inequality.
(2 × 1)
(2)
2.1.2
Why is money used as a unit of account?
(1 × 2)
(2)
Study the graph below and answer the questions that follow.
2.2.1
Name the curve that represents the Lorenz curve.
(1)
2.2.2
What other method used to measure exact degree of inequality.
(1)
2.2.3
Explain the term Lorenz curve.
(2)
2.2.4
What happens when the Lorenz curve is away from the line of
equality?
Why is income and wealth in a country such as South Africa so
unequally distributed?
2.2.5
5|P a g e
40 MARKS – 20 MINUTES
(2)
(4)
2.2
DATA RESPONSE
Study the table given below and answer the questions that follow.
Province
Western Cape
Eastern Cape
Free State
North West
Gauteng
22.1
Headcount rate
20,73%
47,09%
29,79%
38,18%
18,33%
Poverty gap ratio
7,04%
19,65%
10,93%
15,15%
5,61%
According to the table, what is the percentage of people living
in poverty in the Eastern Cape?
(1)
2.2.2 Name one type of poverty
(1)
2.2.3 Define the term ‘poverty headcount rate’.
(2)
2.2.4 According to the table, which province has the lowest number
of poor people?
(2)
2.2.5 Differentiate between ‘absolute poverty’ and ‘relative poverty’
(4)
2.3
Differentiate between economic growth and economic development.
(8)
2.4
Discuss Unit of account and Medium of exchange as functions of money. (8)
[40]
6|P a g e
Question 3:
3.1
7|P a g e
Answer the following questions.
3.1.1 Name TWO reasons for bank failures relate typically to banking risks.
(2)
3.1.2 Briefly describe the concept Indigenous knowledge system.
(2)
3.2
DATA RESPONSE
Study the extract given below and answer the questions that follow.
3.2.1
According to the extract, what is the repo rate cut
(1)
3.2.2
Name the rate at which commercial banks borrow money from the
South African Reserve Bank
(1)
Define the term ‘repo rate’.
(2)
3.2.3
3.2.4
3.2.5
According to the extract, what are the reasons for the cut in the
repo rate?
Briefly explain the concept of ‘Mzansi accounts’.
(2)
(4)
3.3
DATA RESPONSE
Study the bar graph below and answer the questions that follow.
3.4
3.5
8|P a g e
3.3.1 Which organisation is responsible for values in graph above
(1)
3.3.2 Name the institution that uses CPI to measure headline inflation.
(1)
3.3.3 Explain the term Consumer Price Index (CPI)
(2)
3.3.4 According to the table, when is the CPI published?
(2)
3.3.5 Briefly explain how CPI is calculated
(4)
Describe how interest rate changes and open market transactions
influence the interest rates and supply of money(credit) in the economy
(8)
briefly discuss gini-coefficient as a measure of income inequality
(8)
[40]
TOTAL SECTION B:
[40]
SECTION C – Essay Response
Choose ANY ONE of the two questions in the ANSWER BOOK.
Your response will be assessed as follows:
Question 4
Contemporary Economic Issues
(40) MARKS
A great percentage of our population still lives under adverse conditions of poverty.

Elaborate on the causes of poverty.

Highlight the various strides/measures that the government has undertaken to
(26)
resolve poverty problems between the years 1994-2014.
(10)
Question 5
Economic Pursuits
(40)
Money has evolved or developed substantially over time. It is hardly recognised in its
traditional form.

Discuss all the money-associated instruments.

How effective is the SARB control over the activities of commercial
(26)
banks in South Africa
(10)
TOTAL SECTION C: 40
GRAND TOTAL: 100
9|P a g e
10 | P a g e
11 | P a g e