KWAMFUNDO SENIOR SECONDARY SCHOOL
GRADE 11 ECONOMICS
CONTROLL TEST 1 2021
TIME
:
MARKS
1H30
:
100
EXAMINER
:
MR L. SAKATI
INTERNAL MODERATOR
:
MR M. NYANGIWE
N.B. This question paper consists of 09 pages
1
ECONOMICS
MARCH CONTROLLED
TEST
2023
GRADE 11
Total marks: 100
MARK
ALLOCATION: 90MINUTES
BASED ON
ASSESSMENT
STANDARDS:
 Macroeconomics
INSTRUCTIONS
1.
Answer FOUR of the questions as follows:

SECTION A: COMPULSORY. Use the answer sheet provided.

SECTION B: Answer ONE QUESTION from this section.

SECTION C: Answer any ONE of the questions.
2.
Write down the numbers of the questions at the top of each question.
3.
Number the answers according to the system used in this examination paper.
4.
Read through the questions carefully and start each question on a new page.
5.
Answer in full sentences where required and ensure that the format and contents of
your feedback correspond with the allocation of marks for each question.
6.
Only answer the required number of questions. Additional or unnecessary answers
will not be marked.
7.
Use only black or blue ink pens. Answers in pencil will not be marked. Please ensure
that your writing is legible and neat.
8.
A non-programmable calculator may be used.
2
SECTION A
1.1
COMPULSORY
Four possible options are provided as answers to the following questions. Each
question only has ONE correct answer. Choose the correct answer and write
down the letter (A – D) next to the appropriate number 1.1.1 - 1.1.8)
1.1.1 Peoples disposable incomes tend to … during periods of inflation
A. Remain constant
B. Decrease
C. Increase
D. Durable
(1)
1.1.2 The central Bank of South Africa is the …
A. South African Development Bank
B. Standard Bank of South Africa
C. South African Reserve Bank
D. ABSA
(1)
1.1.3 The remuneration or payment made for the use of factors of production which are
limited in supply is called…
A. Economic rent
B. Rent
C. Commercial rent
D. Interest
(1)
1.1.3 Nominal wages is the…
A. Amount of money that labourer receives
B. Number of hours that labourer work
C. Conditions under which labourer work
D. Prosperity of labour
(1)
1.1.4 The remuneration or payment made for the skill to combine natural resources, labour
and capital is called
A. Economic rent
B. Profit
C. Wages
D. Salary
(1)
1.1.5 Money invested in machines and equipment that will be used in the production process
A. Wages
B. Capital goods
C. Costs
D. Capital
(1)
1.1.6 Individuals that use factors of production to start and manage a business
A. Capital
B. Entrepreneur
C. Consumers
3
D. Households
(1)
1.1.7 The flow of money from the financial sector into the economy is called a/an….
A. Provision of services or intangibles
B. Expense
C. Injection
D. Leakage
(1)
1.1.8 In a centrally planned economy, all the economic decisions are taken be the …
A. Government
B. Individuals
C. Business
D. Household
(1)
(1x8=8)
1.2
Choose a description from COLUMN B that matches a description in COLUMN A.
Write only the letter (A – I) next to the corresponding question number (1.2.1 –
1.2.8) in the answer book. (For example 1.2.9. H)
COLUMN A
COLUMN B
1.2.1. Capitalism
A. The vertical distance from peak to trough
1.2.2. Extrapolation
B. Free Market Economy
1.2.3. Amplitude
C. goods that are not ready for human consumption
1.2.4. Intermediate
D. Used to smooth out business cycle
goods
1.2.5. Primary sector
E. People with urgent needs that are not addressed
by the government
1.2.6. Peak
F. May cease to exist if used up repeatedly
1.2.7 Marginalised
G. The upper turning point of the business cycle
people
1.2.8. Non-renewable
H. Deals with the extraction of raw material from
resources
nature
I. The lower turning point of the business cycle
{1x8}
4
1.3
Give ONE term for each of the following descriptions. Write only the term
next to the question number by choosing (1.3.1 – 1.3.4) in the ANSWER
SHEET.
1.3.1 Wages and rent are exchanged for...in the circular flow
1.3.2 Free gifts of nature
1.3.3 Price or reward paid for the use of the factors of production
1.3.4 They take initiative to establish enterprises
1x4 =4
[20]
SECTION B (ANSWER ANY ONE QUESTIONS FROM THIS SECTION)
QUESTION 2
2.1
Answer the following questions
2.1.1 Name any TWO examples of durable goods.
(2)
2.1.2 How will contraction phase of a business cycle influence the economy through
interest rates?
2.2
(2)
Study the diagram below and answer the questions that follow.
5
2.2.1 Which racial group dominates the participation in the economy according to the
information above?
2.2.2 Where do you find our race in the chart?
(1)
(1)
2.2.3 Mention 1 programme introduced by the government to help economically
marginalised in South Africa.
(2)
2.2.4 Which role can education and training play in empowering the marginalised in
South Africa?
(2)
2.2.5 What measures can be put in place to help economically marginalised group to
participate in the economy of this country?
2.3
(4)
Study the following diagram and answer questions that follow.
2.3.1 Name ONE turning point in the business cycle.
(1)
2.3.2 What is indicated by the trend?
(1)
2.3.3 Give any other injection besides investment.
(2)
2.3.4 Identify AB in the diagram above.
(2)
6
2.3.5 What impact, do you think, will a huge investment, such as Gautrain project have
on the business cycle?
2.4
Explain the interaction between households and the state as participants in the
economic circular flow.
2.5
(4)
Discuss the monetarists approach as a cause of business cycle.
(8)
(8)
[40]
QUESTION 3
3.1
Answer the following questions
3.1.1 Name any two participants in a closed economy.
(2)
3.1.2 What would be the impact on economic development if population increased
without the increase in the real gross domestic product?
(2)
3.2
Study the extract given below and answer the questions that follow
3.2.1 The diagram below is an example of a/an............ economy.
3.2.2 What market is represented by point A?
(1)
(1)
7
3.2.3 If the solid line represents the movement of goods, the dotted line
represents.....flow.
(2)
3.2.4 The leakage that is caused by government is called......
(2)
3.2.5 Defferentiate between Leakages and Injections
(4)
[10]
3.2
Study the following cartoon and answer the questions that follow.
3.3.1 Which factor of production is represented by the above comic?
(1)
3.3.2 What is the remuneration paid to this factor above?
(1)
3.3.3 Name any ONE characteristic of this factor of production named in 3.3.1.
(2)
3.3.4 What is given as remuneration for this factor of production (labour) when it s used in the
production process?
(2)
3.3.5 Why does this factor of production play such a large role in the South African
economy?
(4)
(10)
8
3.4
3.5
Briefly explain characteristics of labour.
How do consumers spend most of their income?
(8)
(8)
[40]
QUESTION 4


Discuss natural resource as a factor of production, in your answer refer to the
definition, characteristics and functions of natural resources.
(26)
Conclude your answer by explaining the importance of natural resources.
(10)
[40]
QUESTION 5
The circular flow model shows how the economy works via the various markets.

Discuss the role of the various markets in the circular flow without the use of
diagram.
(26)
9

Fully elaborate on the difference between leakages and injections.
(10)
[40]
10