ECONOMICS 1/2
GRADE 10
TASK 7.1
NOVEMBER EXAMINATION 2021
MEMORANDUM
Page 1 of 13
© Impaq
November Examination Memorandum 2021
G10 ~ Economics P1/2
ECONOMICS
NOVEMBER EXAMINATION 2021
PAPER 1/2
GRADE 10
MEMORANDUM
TOTAL: 150
SECTION A
QUESTION 1
1.1.1
1.1.2
1.1.3
1.1.4
1.1.5
1.1.6
1.1.7
1.1.8
A 
B 
B 
D 
C 
B 
D 
A 
(8 x 2) = (16)
1.2.1
1.2.2
1.2.3
1.2.4
1.2.5
1.2.6
1.2.7
1.2.8
G
J
E
I
C
H
A
F
(8 x 1) = (8)
1.3.1
1.3.2
1.3.3
1.3.4
1.3.5
1.3.6
Macroeconomics 
Free goods 
Census 
Tourism 
Production 
Self-sufficient 
(6 x 1) = (6)
[30]
TOTAL SECTION A: 30
Page 2 of 13
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November Examination Memorandum 2021
G10 ~ Economics P1/2
SECTION B
NOTE: The learner must have answered TWO of the three questions.
QUESTION 2
2.1.1
VAT 

Excise duties 

Levies 
(Any two)

(2 x 1) = (2)
2.1.2
Stagflation is the simultaneous existence of
growth. 
2.2.1
Agriculture 
(1)
2.2.2
Tertiary sector 
(1)
2.2.3
Food security and natural resources 
(2)
2.2.4
Government acts to satisfy the needs and wants for those goods that cannot be satisfied
by individuals or businesses. All the functions of the public sector are reflected in the
budget. 
(2)
(Accept other correct relevant responses)
2.2.5
The four main functions of the public sector:

Protection services 

Social services 

Economic services 

General (government) 
(4)
2.3.1
Import 
(1)
2.3.2
Expenditure method 
(1)
2.3.3
The total value of all final goods and services produced within the borders of a country in
a particular period, usually one year. 
(2)
2.3.4
GDP measures production and production articulates economic growth. GNI measures
income and income articulates the standard of living.  
(2)
2.3.5
Leakages represent the withdrawing (flow from) of money from the economy,  and
injection represents the injections (flow into) of money into the economy.  (2 x 2) = (4)
Page 3 of 13
inflation, unemployment, and no
(2 x 1) = (2)
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November Examination Memorandum 2021
G10 ~ Economics P1/2
2.4
Absolute scarcity

Absolute scarcity is nature’s inability to provide enough resources to provide in our
daily needs. 

People have the resources to buy a product but there is no stock available. 

For example, a drought can cause scarcity of water and so scarcity in agricultural
products. 
Relative scarcity

Relative scarcity occurs when the supply of goods and services are more than the
demand. 

It occurs when goods and services are available, but people do not have the
resources to acquire them. 

For example, there can be more than enough Nike shoes, but the consumer does
not have enough money to buy the shoes.
(Accept other correct relevant example)
(4 x 2) = (8)
2.5








There is a flow of money, goods, and services between consumers and businesses.
Consumers are the owners of the factors of production and sell their factors of
production to businesses in the factor market. 
Consumers earn income in the form of wages, interest, rent and profits when they
sell their production factors to businesses. 
Businesses buy services of factors of production from consumers. 
The consumers receive income and spend their income when selling their services
of factors of production to producers.
Businesses receive income from the sale of goods and services.
(Accept other correct relevant responses)
(4 x 2) = (8)
[40]
AND/OR
QUESTION 3
3.1.1
The traditional system 

Manorialism 

Mercantilism
(Any two)
(2 x 1) = (2)
3.1.2
Guilds practiced product specialisation.  
(1 x 2) = (2)
3.2.1
15–64 years 
3.2.2

3.2.3

(1)
The unemployment rate in terms of the expanded definition. 

The unemployment rate in terms of the strict definition. 
(Any one of the above)
(1)
The proportion of the EAP that finds work in the formal sector of the economy.
(2)
Page 4 of 13
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November Examination Memorandum 2021
G10 ~ Economics P1/2
3.2.4
Better job opportunities 

Better living conditions 

Better economic opportunities 

Better climate. 
(Any two relevant answers)

(2)
3.2.5

3.3.1
Mass production or surplus production 
(1)
3.3.2
Specialisation
(1)
3.3.3
Globalisation is the worldwide interfacing and interaction of economies with trade as a key
element and communication technology (ICT) making it possible. 
(2)
3.3.4
Mass consumption exceeds the capacity of the earth’s renewable resources, and
non-renewable resources are being exploited to extinction. 

Massive pollution causes damage to the atmosphere, which, in turn, results in
changes to weather patterns that will lead to more hardship for developing countries
rather than developed countries. 
(Accept other correct relevant responses)
(2)
3.3.5
South African citizens are free to emigrate. Due to globalisation and standardisation, it is
easier for workers to move around between countries. 
People who emigrate are usually professionals or people with skills.  The loss is
known as ‘brain drain’. This is detrimental to the economy, as it contributes to a shortage
of highly skilled workers. 
(Accept other correct relevant response)
(2 x 2) = (4)
3.4
Urbanisation contributed to the rapid increase in demand for food and other goods
and services. 

The increased demand stimulated the growth of a variety of markets. 

The increased demand for food led to the commercialisation and later
mechanisation of farming. 
(Accept other correct relevant responses)
(2 x 2) = (4)

Traditional borders between nations and groups of indigenous people were
disregarded and new ones imposed. 

The social and economic way of life of the local inhabitants were ignored and even
deliberately broken down. 

Indigenous people were denied the opportunity of becoming part of the mainstream
political and economic processes. 

Colonies were established for the material advantage of the colonising countries.

(Accept other correct relevant response)
(4 x 2) = (8)

Page 5 of 13
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G10 ~ Economics P1/2
3.5
HIV/Aids have a severe impact on the standard of living of affected households. 

They lose income earners and experience an increase in medical expenses. 

They spend less on food and other essentials, and this impairs the health of other
members of the household. 

Many children and elderly people lose their economic support structures. 
(Accept other correct relevant responses)
(4 x 2) = (8)
[40]

AND/OR
QUESTION 4
4.1.1
Leading indicators 

Lagging indicators 

Coincident indicators 
(Any two)

(2)
4.1.2
The classical economists believed that market economies were inherently stable. They
believed the market always corrects itself, almost as if by an invisible hand.  They saw
fluctuations in economic activity as temporary phenomena that could be attributed to
exogenous factors (factors that arose outside the market system). 
(1 x 2) = (2)
4.2.1
Primary sector 
(1)
4.2.2
Air pollution or global warming 
(1)
4.2.3
Capital goods are called producer or intermediate goods because they are needed to
produce other goods. 
(2)
4.2.4
Wind energy 

Sun energy 
(Accept other correct relevant responses)

(2)
4.2.5

Pollution 
o
Widespread pollution occurs mainly due to carbon dioxide emissions in the air
from the extensive use of fossil fuels, such as coal and oil. 

Excessive consumption 
o
Humans’ consumption of the renewable resources of the earth, such as fish,
grasslands and forests, is extensive. 
(Accept other correct relevant responses)
(4)
4.3.1
Deposit money 
(1)
4.3.2

Money is available immediately 

Safer than cash 

Convenient and transactions can be done at any time or place 

Better record of transactions 
(Accept other correct relevant responses)
(2)
Page 6 of 13
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November Examination Memorandum 2021
G10 ~ Economics P1/2
4.3.3
Electronic banking is easy, cheap, and safe. Major banks offer this service to individuals
and businesses. Most clients do their banking online, such as transferring money between
accounts and paying accounts, and they mostly use home or office computers or their
phone. 
(2)
4.3.4
They accept money on deposits  and make loans. 
4.3.5

4.4

A personal loan is for a fixed amount over a fixed time. It is repayable in equal
instalments. 

Hire purchase is like a personal loan, but the goods purchased act as security. 

Mortgage loans are like hire purchase loans but they are used to buy fixed property.
The period of repayment is much longer, and the property purchased acts as
security. 

Overdrafts are granted where a loan is repeatedly required for short periods. In most
instances, collateral is required. 
(Any two)
(Accept other correct relevant responses)
(4)



4.5
(2)

Durable consumer goods  – goods that can be used over and over for several
years. 
Semi-durable consumer goods  – goods that last long and can be used over and
over for a limited time and must then be replaced. 
Non-durable consumer goods  – goods that can be used only once because they
are destroyed once used. 
Services  – non-tangible items used to satisfy needs and wants. 
(4 x 2) = (8)
Individual consumption expenditure 
Expenditure on goods and services provided to individual consumers, for example,
health services and educational services. 
Use of services by one consumer excludes use by other consumers. 

Collective consumption expenditure
Expenditure on services provided simultaneously to all members of society, for
example, street lighting, protection, safety and security, the judiciary and
environmental safety. 
The use of services by one consumer does not exclude use by another. 
(Accept other correct relevant responses)
(2 x 4) = (8)
[40]
TOTAL SECTION B: 80
Page 7 of 13
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G10 ~ Economics P1/2
SECTION C
NOTE: The learner had to answer ONE of the two questions.
MARK ALLOCATION FOR ESSAYS
STRUCTURE OF ESSAY
Introduction
Body (content)
 Main part
 Additional part
E.g., discuss/distinguish/differentiate/explain/
analyse/evaluate/assess.
E.g., draw a chart or diagram/deduce/outline/briefly
explain/expand/your own opinion/support.
Conclusion
Any higher-order conclusion should include:
 A summary of what has been discussed, without repeating facts already mentioned
in the body.
 Any opinion or value judgement of the facts discussed.
 Additional supporting information to strengthen the discussion/analysis.
 A contradictory viewpoint with motivation, if required.
 Recommendations
TOTAL
MARK
ALLOCATION
Max 2
Max 26
Max 10
Max 2
40
QUESTION 5
INTRODUCTION
Business cycles can be described as consecutive periods of increasing or decreasing economic
activity. 
(Any relevant introduction)
(Max 2)
Main section
i.
The prosperity phase. 
o
Optimism encourages entrepreneurs to borrow money and to buy new machinery
and equipment. 
o
More people are employed and production increases. 
o
Prices, wages, interest rates and profits increase. 
o
Factories work overtime and skilled labourers become extremely scarce. 
o
The boom starts, and everything seems to veer to the extreme. Interest rates,
salaries and wages go to even higher levels, and, together with a much higher
demand for raw materials, the cost of businesses increase almost beyond control.

o
Inflation accelerates beyond previous high levels. 
o
Some businesses realise the prosperity phase cannot last forever. But there are no
disturbances yet. 
(Sub max 7)
ii.
The recession phase 
o
Businesses try to prepare for bad times by producing less and trying to settle the
largest parts of their loans and they selectively lay off workers. 
Page 8 of 13
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G10 ~ Economics P1/2
o
o
o
o
o
o
Spending by households and profits by businesses begin to decrease. 
Inflation is high and the central banks reduce the quantity of money and credit in the
economy and raise interest rates. 
The central banks apply stricter monetary policies.
Households find it difficult to buy goods on credit and pay bonds, and banks insist
that businesses repay the loans granted during the boom. 
Spending on durable consumer goods and capital equipment is greatly reduced and
unemployment increases. 
Some businesses begin to show losses and summonses for extended credit
increase. 
(Sub max 7)
iii.
The depression phase 
o
This phase is characterised by general pessimism from households and
businesses.
o
The spending in all sectors of the economy decreases drastically and consists
mainly of expenditure on consumer goods. 
o
Businesses show poor profits, many make losses, and some go bankrupt. 
o
Households that cannot pay their debts have their furniture, vehicles and even their
houses repossessed. 
o
Many people lose their jobs and household incomes are very low. Many people find
work in the informal sector. 
o
The main aim of households is to provide for their basic wants (food, shelter, and
clothing). 
o
Due to the reduction in demand, inflation also decreases, and interest rates fall. 
o
At a certain stage, businesses begin to realise conditions are going to improve
and they take the first steps to recovery. 
(Sub max 7)
iv.
The recovery phase 
o
Businesses realise conditions are going to improve and begin to service their
machinery and improve their equipment. They increase their production slightly to
provide stock for the possible increase in demand. 
o
They make better use of their labour and even employ new workers. 
o
Because businesses purchase more goods and services and employ a greater
number of people, there is an increase in income and spending in the economy. 
o
Because of the low-interest rates, households’ bond repayments and other
instalments are lower, so households have more money to spend. 
o
Loans are available, but households and businesses are not keen to borrow. 
o
As soon as sales improve, business profits increase. Entrepreneurs become more
optimistic. 
o
Disturbances that existed are gradually phased out so the economy is in a relative
equilibrium during the prosperity phase once again. 
(Sub max 7)
(Max. 26)
Page 9 of 13
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November Examination Memorandum 2021
G10 ~ Economics P1/2
ADDITIONAL SECTION

Money supply
o
Modern adherents of classical economic theories, such as the monetarists, explain
that the main cause of economic fluctuations is inappropriate government policies,
which cause undesirable increases and decreases in the money supply. 
o
In the most extreme case, governments can instruct their central banks to simply
print more banknotes and make the new money available to the government through
loans. 
o
When these governments then make payments, these notes are put into circulation.
This disturbs the equilibrium and inflation follows. 
(Sub max 5)

Structural changes
o
Structural changes cause economic resources in one sector to become redundant
and shift to another sector. 
o
For example, there may be a surplus of labour in the agricultural sector, but at the
same time a shortage of labour in another sector, such as electronics. These
surpluses and deficits are so significant that they cause disturbances that affect the
entire economy. 
o
Similarly, the development of technology abroad, for example, computers and other
electronic goods, forced South Africa to import, produce and use this type of goods.

o
When one sector’s output changes in the economy, it affects production,
employment, imports and exports, savings and investment, and taxes and
government spending. 
o
A change, therefore, unleashes expansions and contractions at different times in
economic activities. 
(Sub max 5)
(Max. 10)
CONCLUSION
Business cycles can be very unpredictable and irregular during each phase. There are many
external factors that do not only influence a country’s economy; some events can affect global
economies. 
(Any other relevant conclusion)
(Max. 2)
[40]
OR
QUESTION 6
INTRODUCTION
Economic development is the movement of an economy from agricultural activities and using
simple technologies to the production of industrial products and services using modern
technology.
(Any relevant introduction)
(Max. 2)
Page 10 of 13
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G10 ~ Economics P1/2
Main section


Contributing factors.
o
Shipping 
i.
Shipbuilding and trade with the colonies were expanded during the 1800s. 
ii.
The demand from the mother countries for raw materials and agricultural
products stimulated the economies of the colonies, and in South Africa. 
o
Trade 
i.
After the second British occupation in 1806, more freedom of trade and the
free marketing of products were allowed. 
ii.
The levy on the importation of wheat in 1826 contributed towards encouraging
the production of local wheat. 
iii.
The production of wine and timber also increased. 
o
Infrastructure 
i.
The building of roads, bridges and mountain passes began in 1844. 
ii.
A postal system was introduced in the Cape in 1860, and the development of
railway lines started in 1859. 
iii.
These were important requirements for economic progress. 
(Sub max 10)

Hampering factors. 
o
The colonial authorities applied a mercantilist policy. 
i.
The policy was aimed at exploiting the colony to the advantage of the mother
country. 
ii.
The DEIC (VOC), therefore, viewed the Cape merely as a refreshment station
from which they could take what they wanted at the expense of the local
people. 
iii.
Taxes were used to pay officials higher salaries rather than to develop
infrastructure. 
o
The hostile environment held back development. 
i.
Factors such as infertile soil, unfavourable climatic conditions, primitive tools,
and traditional agricultural methods held back development. 
ii.
Transport was difficult as there were high mountain ranges that isolated the
interior from the Cape and because there were few navigable rivers. 
(Sub max 9)

Economic consequences.
o
The development of markets 
i.
The British rule after 1795 encouraged private initiative and the development
of markets. Domestic markets were encouraged by allowing local producers to
export their produce tax-free to some of the British colonies. 
o
The development of transport. 
i.
The British administration in the Cape after 1806 realised the importance of
proper roads and started a road-building programme. 
ii.
Transport riding became a well-paid occupation. 
o
The development of communication 
i.
In 1864 telegraph lines were built in the Cape. 
ii.
An official postal system was introduced in the Cape in 1860. 
iii.
Overseas communication happened through letters transported on ships. 
Page 11 of 13
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November Examination Memorandum 2021
G10 ~ Economics P1/2
iv.
The development of steamships improved communication with countries
abroad. 
(Sub max 9)
(Max 26)
ADDITIONAL SECTION





Phase 1
o
During this phase both birth and death rates are high. 
Phase 2
o
Birth control and family planning are not being done so birth rates are high. 
Phase 3
o
The income and living standards of a large part of the population are increasing. 
o
Birth rates decrease faster than the natural death rate and so the natural growth rate
decreases. 
Phase 4
o
The birth rate declines at a higher rate. 
Phase 5
o
The natural growth rate is very low and begins to stabilise. 
(Sub max 10)
CONCLUSION
Economic development increases as technology improves, causing living standards, health
services and conditions, and availability to improve. This in turn harms the natural growth rate of
population groups.
(Any other relevant conclusion)
(Max. 2)
[40]
TOTAL SECTION C: 40
GRAND TOTAL: 150
Page 12 of 13
© Impaq
Q1/
V1
Q2/
V2
Q3/
V3
Q4/
V4
Q5/
V5
Q6/
V6
TOTAL/
38
TOTAAL
% –
QP/
VS
4
4
9
2
2
4
3
2
2
1
4
9
29% (67/230)
1
1
2
2
2
6
1
1
2
2
2
2
60
8
18
26
2
26
12
8
4
2
26
12
18
44% (101/230)
Page 13 of 13
26
30
10
10
10
Direct, Produce/ Vervaardig, Produseer
Plan/Beplan
Devise/Deurdink
Make/Maak
EVALUATE/
EVALUEER
LEVEL/VLAK 3: 30%
(HIGH/HOOG)
Invent/Uitvind
Construct/Struktureer
Design/Ontwerp
Validate/Bekragtig
Reflect/Weerspieël
Review/Hersien
Critique/Kritiseer
Experiment/Eksperimenteer
ANALYSE/
ANALISEER
Test/Toets
Hypothesise/Veronderstell
Check, Judge/Nagaan, Oordeel
Mind-mapping/Breinkaarte
Analyse/Analiseer
Structure/Strukturering
APPLY/
TOEPAS
Organise/Organiseer
Attribute/Gekenmerk
30
Compare/Vergelyk
Use/Toepas
Carry out/Uitvoer
Implement/Implementeer
UNDERSTAND/
BEGRIP
LEVEL/VLAK 2 : 40%
(MIDDLE/MIDDEL)
Differentiate/Differensieer
6
Exemplify/Voorbeelde
Explain/Verduidelik
Draw/Illustreer
Factorise/Faktoriseer
Discuss/Bespreek
Problem-solving/Probleemoplossing
REMEMBER/
ONTHOU
LEVEL/VLAK 1: 30%
(LOW/LAAG)
Paraphrase/Parafraseer
Classify/Klassifiseer
Interpret/Interpreteer
Infer/Lei
Define/Definieer
State/Stel
Name/Noem
Describe/Beskryf
List information/Lys Inligting
Identify/Identifiseer
November Examination Memorandum 2021
G10 ~ Economics P1/2
Cognitive levels
CREATE/
SKEP
2
2
4
27% (62/230)
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