ECONOMICS

EXAMINATION GUIDELINES

GRADE 11
2023

This document consists of 33 pages

Economics GR.11 Examination Guidelines

TABLE OF CONTENTS

1. INTRODUCTION ............................................................................................................... 3

2.1 CLASSIFICATION OF TOPICS FOR THE GRADE 11 ECONOMICS QUESTION PAPERS ............. 4

2.2 DETAILS OF QUESTION PAPERS ...................................................................................... 5

2.3. COGNITIVE LEVEL GRID ................................................................................................. 8

2.4 A GUIDELINE TO MARKING............................................................................................. 9

2.5 COMMAND VERB DETAIL ............................................................................................. 13

2.6 HIGHER-ORDER QUESTIONS ......................................................................................... 15

3. CONTENT ...................................................................................................................... 17

4. CONCLUSION................................................................................................................. 33

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Economics GR.11 Examination Guidelines

1. INTRODUCTION

The Curriculum and Assessment Policy Statement (CAPS) for Economics outlines the nature and
purpose of the subject Economics. This guides the philosophy underlying the teaching and
assessment of the subject in Grade 11.

The purpose of these Examination Guidelines is to:

• Provide clarity on the depth and scope of the content to be taught and assessed in the Grade 11
Examination in Economics.
• Assist teachers to adequately prepare learners for the examinations.

This document deals with the entire content in grade 11. It does not deal in any depth with the School-
Based Assessment (SBA).

These Examination Guidelines should be read in conjunction with:

• The National Curriculum Statement (NCS) Curriculum and Assessment Policy Statement (CAPS):
Economics
• The National Protocol of Assessment: An addendum to the policy document, the National Senior
Certificate: A qualification at Level 4 on the National Qualifications Framework (NQF), regarding
the National Protocol for Assessment (Grades R–12)
• The national policy pertaining to the programme and promotion requirements of the
National Curriculum Statement, Grades R–12

NOTE: All topics where 'discuss in detail/examine in detail/compare and

contrast in detail' appear, should be regarded as essay topics.

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Economics GR.11 Examination Guidelines

2. ASSESSMENT IN GRADE 11

2.1 CLASSIFICATION OF TOPICS FOR THE GRADE 11 ECONOMICS QUESTION PAPERS

MID-YEAR EXAMINATION PAPERS

ECONOMICS GR.11

PAPER 1 PAPER 2
150 MARKS - 2 HOURS 150 MARKS - 2 HOURS

MAIN TOPIC: MAIN TOPIC:

MACROECONOMICS MICROECONOMICS
SUBTOPICS: SUBTOPICS:
 Factors of production and its  Relationships between markets
remuneration  Effects of cost & revenue
 Circular flow & quantitative elements:  Price elasticity
Economic goods and services
 Economic systems
 South Africa’s economic structures

FINAL EXAMINATION PAPERS

ECONOMICS GR.11

PAPER 1 PAPER 2
150 MARKS - 2 HOURS 150 MARKS - 2 HOURS

MAIN TOPIC: MAIN TOPIC:

MACROECONOMICS MICROECONOMICS
SUBTOPICS: SUBTOPICS:
 Factors of production and its remuneration  Relationships between markets
 Circular flow & quantitative elements:  Effects of cost & revenue
Economic goods and services  Price elasticity
 Economic systems
 South Africa’s economic structures

MAIN TOPIC MAIN TOPIC

ECONOMIC PURSUITS CONTEMPORARY ECONOMIC ISSUES
SUBTOPICS: SUBTOPICS:
 Economic growth
 Economic development  Globalisation
 Money & banking  Environmental deterioration

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Economics GR.11 Examination Guidelines

2.2 Details of question papers

 Each paper carries 150 marks.
 The duration of each paper is 2 HOURS.
 Each paper comprises six questions divided into three sections.
 Of the six questions only four must be answered as follows:
O Section A: question 1 is compulsory.
O Section B: consists of three questions: questions 2–4 of which the candidate must
choose only two
O Section C: consists of two questions: questions 5–6 of which the candidate must choose
only one
 The above papers must not be written on the same day.
 The detailed requirements of each section (per question paper) are indicated below.

SECTION A (COMPULSORY) TOTAL: 30

QUESTION 1

1.1 MULTIPLE-CHOICE ITEMS (lower order)

WITH 4 POSSIBLE Options Per Main Topic = 8 ITEMS (2 Marks Per Item) (8 X 2) (16)

1.2 MATCHING ITEMS (COLUMN A AND B) (lower order)

FOUR ITEMS per main topic = 8 ITEMS (1 MARK PER ITEM) (8 X 1) (8)

1.3 GIVE THE TERM (lower order)

THREE ITEMS per main topic = 6 ITEMS (1 mark per item) (6 X 1) (6)
ABBREVIATIONS, ACRONYMS AND EXAMPLES ARE NOT ACCEPTABLE.

Although the questions are regarded as lower order, they may be classified as easy (e.g. open economy),
moderate (e.g. real flow) or difficult (e.g. methods of calculating GDP-).

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Economics GR.11 Examination Guidelines

SECTION B (ANSWER TWO QUESTIONS IN THIS SECTION) TOTAL: 80

QUESTIONS 2–4 (THREE QUESTIONS)

One question per main topic and one combination question between the 2 MAIN TOPICS. (50%/50%)

2.1 SHORT ITEMS

2.1.1 Lower order (2 Items) Name TWO. (2 X 1) (2)

2.1.2 middle order (1 item), e.g. how, why and what (an application type of question).
(1 X 2) (2)

2.2–2.3 TWO DATA RESPONSE QUESTIONS (MIDDLE ORDER), E.G. STUDY THE FOLLOWING GRAPH/
CARTOON/ TABLE/ EXTRACT/ REAL DATA AND ANSWER THE QUESTIONS THAT FOLLOW.
(10 X 2) (20)

 Items in the data response questions must be 'scaffolded' from easy to difficult:
2 marks easy, 4 marks moderate and 4 marks difficult

 The answers to the first 2 questions (1 mark each) may appear in the data, but will be one of
application

 Data response questions give a context on what aspects to be assessed, and answers would not
necessarily appear in the data

2.4 ONE single question (middle order), e.g. explain, discuss, distinguish or differentiate between,
draw a correctly labelled graph/draw a correctly labelled graph and explain//use the given graph
and explain. (8)

2.5 ONE single question (higher order), e.g. how, why, analyse or evaluate. (8)
Higher order questions are grounded in the content. these types of questions test critical
thinking, where candidates should be able to apply their knowledge, through logical reasoning
and also have an awareness of their current economic climate. content (covered by discuss/
examine/ describe/ analyse/ explain/ evaluate/ compare /assess/ justify/ construct/ calculate)
can be assessed as higher-order questions. answers will not necessarily be found in textbooks.

With regard to what, how and why questions, learners must be guided by the mark allocation
when answering the question. e.g. why (2 marks) will require one discussion point and why (8
marks) will require three to four discussion points depending on examples given.

Responses must give effect to the contextual demands of the question! [40]

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Economics GR.11 Examination Guidelines

SECTION C (ANSWER ONE QUESTION FROM THIS SECTION) TOTAL: 40

QUESTIONS 5-6 (TWO ESSAY QUESTIONS) - ONE question per MAIN TOPIC

MARK
STRUCTURE OF ESSAY
ALLOCATION
INTRODUCTION
The introduction is a lower order response.
 A good starting point would be to define the main concept related to the
question MAX. 2
 Do not include any part of the question in the introduction
 Do not repeat any part of the introduction in the body
 Avoid mentioning what you are going to discuss in the body

BODY
MAIN PART: Discuss in detail /In-depth discussion/ Examine/ critically
discuss/ Analyse/ Compare/ Evaluate/ Distinguish/ Differentiate/ Explain / MAX. 26
Draw a graph and explain / Use the graph given and explain/ Complete the
given graph
A maximum of 8 marks may be allocated for headings/ examples.
MAX. 10
ADDITIONAL PART: Critically discuss/ Evaluate/ Critically evaluate/ Calculate/
Debate/ Deduce/ Compare/ Distinguish/ Interpret/ How?/ Suggest /
construct graph (price elasticity of demand)
A maximum of 2 marks may be allocated for mere listing of facts.
CONCLUSION
Any higher order conclusion that should include:
 A brief summary of what has been discussed /analysed without
repeating facts already mentioned
 An opinion or valued judgement on the facts discussed MAX. 2
 Additional support information to strengthen the discussion / analysis
 A contradictory viewpoint with motivation, if required
 Recommendations

TOTAL 40

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Economics GR.11 Examination Guidelines

2.3. COGNITIVE LEVEL GRID

Section A Section B Section C

Multiple Identify the Data

MAIN TOPICS Matching Short items Single Questions Essay Questions
choice Column A&B concept response

Lower Lower Lower Lower Middle Middle Middle Higher Lower Higher

Macroeconomics 4x2 = 8 4x1 = 4 3x1 = 3 2x1 = 2 1x2 = 2 2x10 = 20 8 8 10 30

Economic Pursuits 4x2 = 8 4x1 = 4 3x1 = 3 2x1 = 2 1x2 = 2 2x10 = 20 8 8 10 30

PAPER 1
Macro & Pursuits 2x1 = 2 1x2 = 2 2x10 = 20 8 8

TOTAL 16 8 6 4 4 40 16 16 10 30

Microeconomics 4x2 = 8 4x1 = 4 3x1 = 3 2x1 = 2 1x2 = 2 2x10 = 20 8 8 10 30

Contemporary Economics 4x2 = 8 4x1 = 4 3x1 = 3 2x1 = 2 1x2 = 2 2x10 = 20 8 8 10 30

PAPER 2
Micro & Contemporary 2x1 = 2 1x2 = 2 2x10 = 20 8 8

TOTAL 16 8 6 4 4 40 16 16 10 30

COGNITIVE LEVELS MARKS %

PAPER 1
Lower Order (Levels 1 & 2) 44 29.3
& PAPER 2
Middle Order(Levels 3 & 4) 60 40.0
Higher Order(Levels 5 & 6) 46 30.7
NOTE: Cognitive-level deviations not to exceed 2,67%.

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Economics GR.11 Examination Guidelines

2.4 A GUIDELINE TO MARKING

Mark allocation depends on the cognitive level of the question, as follows:
SECTION A
Multiple choice items: 2 marks per item (8 x 2) 16

E.g. Oligopolies that collude in a formal manner are called …

A. cartels. 
(Items from this section are easy lower order questions, and requires only recall the candidate must only
identify a particular economic concept from a description given)

Matching column A and B items : 1 mark per item (8 x 1) ( 8)

E.g. Inflation
Sustained increase in the general price level 
(Items from this section are easy lower order questions, and requires only recall the candidate must only
identify a particular economic concept from a description given)

Give one word/concept for Description : 1 mark per item (6 x 1) (6)

E.g. The system of processing waste material into new products.

Recycling 
(Items from this section are moderate lower order questions and requires recall the candidate must be
able to recall a particular economic concept from a given Description)
NOTE: In these items the answers are not provided.

SECTION B
List TWO 1 mark per item (2 x 1) (2)

E.g. List TWO reasons for market failure.

Externalities
Missing markets 
Imperfect competition 
(This is an easy lower order question and requires recall, it is therefore expected that the candidate shall
provide the correct facts according to the approved textbooks)

What? Why? How? and Show 2 marks for a correct answer (1 x 2) (2)

E.g. What effect will a weak currency have on exports?

It will lead to an increase in exports.
(This is a easy to moderate middle order question and requires understanding, it is therefore expected that
the candidate shall provide the correct reasoning / understanding of the particular concept or fact)

TWO data response questions (2 X 10) (20)

Items on a: Cartoon, Extract, Graph, Table, Pictures, or a mix

(This is an easy to difficult middle order question and requires insight and understanding of the particular
topic) Questions range from easy to difficult.

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Economics GR.11 Examination Guidelines

E.g. GRAPH

SMC
Costs and Revenues SAC

Marginal revenue

a AR
P2
d
MR
S
c
b c

0
Q1
Quantity 1u

2.1 Which market structure is shown above?

Perfect market  (1)

2.2 What is being depicted in the by the shaded area in the graph above?
Economic Profit  (1)

2.3 Briefly describe the term economic profit.

When average revenue is greater than average cost a firm makes economic profit. 
The profit that is made in addition to normal profit.  (2)
(When the question requires a description, the candidate must provide a complete
description. If the Description is partially correct, part marks may be awarded.
Where the question requires an explanation, the candidate must provide an appropriate
explanation of the concept / fact, highlighted by an appropriate example.)

2.4 Which point on the graph illustrates profit maximisation? Why?

Point a, where MR = MC  (2)

2.5 Explain why this equilibrium position will not remain fixed?
Profits will attract more entrants into the market which will lead to an increase in supply. 
There is easy entry into the perfect market 
This will drive prices down towards average costs and profits will decrease. 
The new equilibrium position will be a normal profit.  (4)

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Economics GR.11 Examination Guidelines

Paragraph question (4 x 2) or (2 x 4) (8)

(This is a middle order moderate to difficult question and requires insight and understanding of the
particular topic, candidates must be able to recall, reason facts from approved textbooks and then
substantiate / demonstrate the facts with appropriate examples)

Allocation of marks: TWO marks will be allocated per fact. Listing of examples will only count
ONE mark. If an example is appropriately explained, TWO marks will be allocated. If facts are
only listed, a maximum of FOUR marks will be allocated.

Paragraph question (4 x 2) or (2 x 4) (8)

(This is a higher-order question and requires deeper insight and understanding of the particular topic.
Candidates must be able to give their own opinion and then substantiate / demonstrate arguments
against / in favour of or to recommend solutions on certain issues. Application of knowledge).

Candidates must be able to:

 give their own opinion and then substantiate / demonstrate arguments against or in
favour
 evaluate and critique certain actions/values… in the economy
 analyse certain aspects … in the economy by unpacking and critique
 use economic models e.g. graph and diagram to explain certain aspects of economics.

SECTION C
Essay question (40)

Introduction (2)

(The introduction is a moderate to difficult lower order response, a candidate can use a accepted
Description or an appropriate explanation of the topic under discussion as an introduction)

Allocation of marks: TWO marks will be given if a candidate can provide a correct Description or an
appropriate explanation of the topic under discussion.

Body: Main Part (26)

(The main part is a higher order response which contains some lower order elements. E.g. The listing of
headings can be regarded as a lower order response)

Example: If the question reads;

‘Discuss how fiscal policy can be used to smooth out business cycles’.
 The answer must relate to the issue surrounding taxes and government expenditure by showing
how they are used in the smoothing of cycles.

 If a learner only discussed fiscal policy without clearly showing the relationship in smoothing of
cycles, the learner cannot obtain maximum marks.

 Guard against accepting information under a particular heading just because it appears in the text.
Sometimes the information does not relate to the question asked.

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Economics GR.11 Examination Guidelines

 Keep in mind that textbooks give more or less information about a topic than is required by the
examination guidelines. In terms of the examination guidelines, more than one question can be
asked on a particular topic. The learner must be able to select/ extracts the relevant information
and then relate it to the question.

Allocation of marks:
 ONE mark will be given for a fact that is not written in context / listed / not fully explained.
 TWO marks will be given for a fact that is fully explained and relates to the question.

E.g. If the candidate refers to price leadership in his response, and the candidate writes;
‘price leader’, (a single concept without any further detail) the candidate will only get ONE mark.

If the candidate writes; ‘the price leader is usually the largest or dominant business in the industry’.
The candidate will get TWO marks.

Body: Additional part (10)

(This is a moderate to difficult higher order question and requires deeper insight and understanding of the
particular topic. Candidates must be able to:
 Give their own opinion and then substantiate / demonstrate arguments against or in favour
 Evaluate and critique certain actions/values… in the economy
 Analyse certain aspects in the economy by unpacking and critiquing
 Use economic models e.g. graphs and diagrams to explain certain aspects of economics

Allocation of marks:
 Guard against accepting information under a particular heading just because it appears in the text.
Sometimes the information does not relate to the question asked.
 It must be remembered that textbooks give more/less information about a topic than is required
by the examination guidelines. In terms of the exam guideline more than one question can be
asked on the topic. The learner must be able to select the relevant information and relate it to the
question.
 ONE mark will be given to a fact that is not in context / not fully explained.
 TWO marks will be given for fact that is fully explained and is within the context of what is been
asked in the question.

Conclusion (2)

(The conclusion is a moderate to difficult lower order response, the candidate can use any appropriate
final / finishing remark on the topic under discussion)

Allocation of marks: TWO marks will be given if a candidate can provide an appropriate finishing/ final
remark on the topic under discussion)

NOTE: To develop critical thinking within the subject economics teachers must comply with the
prescribed way of marking, it should start at Gr.10 level.

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 Economics GR.11 Examination Guidelines

2.5 Command verb detail

The following list of command verbs, among others, gives an indication of the scope and depth of
examinable content:

COMMAND VERB LINK TO EXAMINATION PAPERS

Discuss in detail/In-depth discussion/ Examine/
Critically discuss/ Analyse/ Compare/ Main part in essay question
Evaluate/Distinguish/ Differentiate / Explain /Assess/  Higher order 20 marks (level 5 and 6)
Debate/ Draw a graph and explain/Use the graph given  Lower Order 10 marks (level 1 and 2)
and explain/Complete the graph

Give own opinion/ Critically discuss/ Evaluate/ Critically

evaluate/ Construct a graph/ Calculate/ Deduce/ Additional part in essay question
Compare/ Distinguish /Interpret/ Justify/ Debate/ ● Higher order 10 marks (levels 5 and 6)
Propose

Give own opinion/Critically discuss/ Evaluate/ Critically Single Questions

evaluate/ Draw a graph and explain/ Use the graph ● One 8 marks middle-order question (levels 3
given and explain/ Complete the graph/ Calculate/
and 4)
Deduce/ Compare/ Show/ Distinguish/ Interpret/
● One 8 marks higher-order question (levels 5
Briefly discuss/ Explain/ Justify/ Briefly debate
and 6)

Use the: graph/ table/ diagram/ cartoon/ extract/ data Data Response Questions
/information/ text and …/ Calculate/ Deduce/ ● Middle-order questions
Compare/ Distinguish/ Interpret/ Briefly discuss/ Briefly
● Levels 3 and 4
explain/ Define/ Give a broad outline /Briefly debate/
● 10 marks each,
What?/ How?/ Why?/ Show/ Give own opinion
● Items will range from easy to difficult

Choose the correct answer (multiple- choice Short and Objective items
items)/Match Columns A and B/ Give one concept ● Lower-order items
for/List/ What?/ How?/ Why?/ Show ● 1 and 2
● Items vary from easy to difficult
● 1 or 2 marks each

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 Economics GR.11 Examination Guidelines

THE FOLLOWING ILUSTRATES THE TYPES OF LEARNER

RESPONSES IN THE DIFFERENT COGNITIVE LEVELS
LEVEL 6: CREATING

Can the learner create new opinions or points of view?

● Propose alternative solutions.
● Develop new unique structures, systems, models, approaches, ideas and creative thinking.
● Develop plans or procedures, design solutions, integrate methods, resources, ideas, or new approaches,
and write protocols or contingencies.
HIGHER ORDER

● Develop, plan, create, organise, revise, formulate, propose, establish, integrate and rearrange.
LEVEL 5: EVALUATION

Can the learner justify a stand or decision?

● Evaluate scenarios; make judgments with evidence and state conclusions appropriately.
● Assess effectiveness of whole concepts, in relation to values, outputs, efficacy, viability; critical thinking,
strategic comparison and review; judgement relating to external criteria
● Review strategic options or plans in terms of efficacy, return on investment or cost effectiveness,
practicability; assess sustainability; perform a SWOT analysis in relation to alternatives; produce a
financial justification for a proposition or venture, calculate the effects of a plan or strategy; perform a
detailed and cost benefit analysis with recommendations and justifications
LEVEL 4: ANALYSES

Can the learner distinguish between the different parts?

● Collect process and analyse information from various sources to evaluate problems and issues.
● Interpret elements and principles
MIDDLE ORDER

● Identify constituent parts and functions of a process or concept

● Break down ideas into simpler parts
LEVEL 3: APPLY KNOWLEDGE

Can learners use/apply knowledge in a new way?

● Use or Apply knowledge (e.g. terms, concepts, theories and methods) and skills
(e.g. communication, critical thinking) to discuss problems and issues.
● Put theory into practice, generate solutions for economic issues
● Apply knowledge to actual situations
LEVEL 2: COMPREHENSION / UNDERSTANDING

Can the learners explain ideas or concepts?

● Understand meaning, re-state data in one's own words, explain or interpret meaning from a given
LOWER ORDER

scenario or statement, suggest treatment, reaction or solution to given problem, create examples or
metaphors
● Demonstrate an understanding of the fact(s)
LEVEL 1: KNOWLEDGE/REMEMBERING

Can the learner recall, remember or recognize the information, ideas and principles in the approximate
form in which they were learnt?
● Demonstrate knowledge (remembering) of the specified content (e.g. key words or concepts or
terminologies).

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Economics GR.11 Examination Guidelines

NOTE:
Take cognisance of the following:
 'Research the world over tells us: that in many instances the only reason why learners can perform with a
degree of competency on their final exams, is that the questions on the exams are nearly carbon copies of
questions they have seen before; the learners are not being asked to think'.

2.6 Higher-order questions

Higher-order questions place advanced cognitive demand on learners. It encourages learners
to think beyond literal questions. Higher-order questions promote critical thinking skills
because these types of questions expect learners to apply, analyse, synthesize, and evaluate
information instead of simply recalling facts. Issues from the real world can be used to either
support or refute a point of view.

Higher-order questions require one to make inferences, draw relevant and insightful
conclusions and use their knowledge in new situations. It also requires one to relate their
thinking to other situations and to their own background knowledge.

Teachers need to realise that there are many more ways to teach than by rote learning. There
is teaching for understanding, decision making, problem solving, and connecting a part to a
whole, detail to concept, and concept to concept. There also is inference, prediction, analysis
for bias, and learning for transfer. Each of these processes requires some form of critical
thinking.

Opportunities for learners to develop critical thinking processes are not found in classrooms
dominated by the regurgitation of factual content. They are found in classrooms where active
learning is an essential component.

Features of higher-order questions:

o Require learners to engage with unrehearsed or unfamiliar contexts.
o Ask for deep thinking.
Grounded in CAPS curriculum content.

Types of higher-order-thinking questions: (What? How? Why?)

Analysis: These questions ask learners to dissect key information and analyse essential
concepts, themes and processes. For example:

o How is x related to y?
o What are the major reasons for?
o What is the impact of b on c?
o What is the problem faced by …?
o What is the main idea? Theme? What are some of the problems of …?
o How is … similar to/different from …?
o Why did … changes occur?

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Economics GR.11 Examination Guidelines

Evaluation: These questions require learners to formulate and justify judgements and criticisms
based upon clearly-articulated evaluative criteria. For example:
o Provide a better solution for …?
o What are the consequences of …?
o What are the pros and cons of …?
o What are the alternatives for …?
o How effective are…?

Creativity/Synthesis: These questions require learners to formulate a holistic summary of

key ideas; provide an integrated, cohesive, sustained response, make inferences;
reformulate, reconstruct or create scenarios. Own voice is critical.

For example:

o Based on these facts, what predictions would you make?

o Propose a solution to this problem.
o How can the errors be fixed?
o What alternative will you suggest …?

*POINTS TO CONSIDER WHEN MARKING HIGHER COGNITIVE QUESTIONS

USING A MARKING GUIDELINE
 It is important to note that a marking guideline essentially gives the marker direction
about what answers are acceptable. The learner does NOT have to present answers
exactly as in the marking guideline (except objective-type questions). In terms of other
questions (SECTION A, SECTION B, list, define, etc.) the essence of what the learners say
must be covered by the marking guideline.
 When marking a particular question, e.g. 8 marks, it is important that the learner
presents his/her answer in such a way that it answers the question.
 If a learner gives an example only, then 1 mark may be awarded. An explanation of the
example can earn further marks.
 In an 8-mark question the maximum marks a learner can earn for examples and
explanations should be 4 marks. The marker must check at all times whether the
explanation given, answers the question. In higher-order short questions, a maximum of
2 marks (25%) will be allocated for merely listing of facts and examples.
 We need to guard against accepting information under a particular heading because it
appears in the text. Sometimes the information does not relate to the question asked.
 It must be remembered that textbooks give more/less information about a topic than is
required by the examination guidelines. In terms of the examination guidelines more
than one question can be asked on a particular topic. The learner must be able to
select/extract the relevant information and relate to it in the question.
 Sometimes textbooks have information under a heading that seems abstract when
compared to the exam requirement. The important aspect to bear in mind is that not all
information in the text may be relevant to the question.

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 Economics GR.11 Examination Guidelines

3. CONTENT
MAIN TOPIC: MACROECONOMICS

TOPIC 1: FACTORS OF PRODUCTION CONTENT DETAILS FOR TEACHING, LEARNING AND

ASSESSMENT PURPOSES
Principles, processes and practices of
economy

 Analysis of the factors of production

 Briefly describe and explain the relevant concepts
and their remuneration
 Distinguish between economic and free goods
- Natural resources
 Description  Distinguish between non-renewable and renewable resources
 characteristics  Discuss the characteristics of natural resources
 importance  Discuss the importance of natural resources
 remuneration (economic rent  Discuss remuneration of natural resources under the following
and royalties) headings:
 factors that influence the price - The concept ‘rent’
of natural resources: - Economic rent & Royalties
o supply and demand - Factors that influence rent
o climate Discuss natural resources as a factor of production (characteristics,
o location importance, factors affecting rent)
o quality of resources
o technology

- Labour  Briefly describe and explain the relevant concepts

 Description  Classify labour in the three broad categories
 classification  Discuss the characteristics,
 characteristics  Discuss the importance of labour
 importance  Discuss the and remuneration of labour
 remuneration  Distinguish between nominal and real wages

- Capital  Briefly describe and explain the relevant concepts

 Description  Distinguish between money and real capital
 characteristics
 Discuss the characteristics of capital
 importance
 Discuss the functions of capital
 remuneration
 Discuss the importance of capital
 Discuss the remuneration of capital

- Entrepreneurial skills
 Description  Briefly describe and explain the relevant concepts
 characteristics  Discuss the importance of entrepreneurship
 importance  Discuss the remuneration of entrepreneurship
 remuneration  Distinguish between gross and net profit

Discuss in detail entrepreneurial skills as factor of production

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 Economics GR.11 Examination Guidelines

 Investigation of community
participation in local economic  Suitable for SBA tasks
planning and activities.

 Economically marginalized groups:

- Description  Briefly discuss 4 reasons/causes why people are marginalized
- Causes / reasons for
marginalization
 Briefly explain the accessibility of the economically marginalized
 Accessibility of economically
group through empowerment
marginalized groups through
- Empowerment  Briefly explain the accessibility of the economically marginalized
- Procurement group through procurement

TOPIC 2: CIRCULAR FLOW and QUANTITATIVE CONTENT DETAILS FOR TEACHING, LEARNING AND
ELEMENTS: ECONOMIC GOODS AND SERVICES ASSESSMENT PURPOSES

Analysis of the uses of economic goods and services

in relation to the Gross Domestic Product (GDP)
GDP/GNI
 Circular flow and quantitative elements
 Study the model of circular flow and identify the
different participants and explain each participant’s
CAUTION: Revise the four-sector open contribution to the economy
economy circular flow model as discussed in  Identify the different flows
Gr.10, but focus is on quantitative elements

 Briefly describe and explain relevant concepts

 Final consumption expenditure (C)  Classify final consumption expenditure by households (C)
- Description  Briefly discuss the importance of final consumption
- Classification expenditure by households (C )
- Importance

 Consumption expenditure by Government (G)  Briefly describe and explain relevant concepts
- Description  Classify final consumption expenditure by government
- Classification (G)
- Importance  Briefly discuss the importance of final consumption
expenditure by government (G)

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 Economics GR.11 Examination Guidelines

 Gross fixed capital formation (I)

- Description  Briefly describe gross fixed capital formation
- Classification  Discuss the classification of gross fixed capital (I)
- Importance  Briefly discuss the importance of gross fixed capital
formation(I)

 The main aggregates  Explain the role of the main aggregates

- Gross Value Added (GVA)  Briefly describe and explain the main aggregates
- Gross National Expenditure (GNE)
- Gross National income (GNI)  Briefly discuss gross value added (GVA) as a main
aggregate
 Briefly discuss gross national expenditure (GNE) as a
main aggregate
 Briefly discuss gross national income (GNI) as main
aggregate

 Brief explanation of the following components :

GDP = C + G + I + (X-M);
GDE = C + G + I
GDI =wages + profit + interest

THE ABOVE TOPIC HAS NO ESSAYS

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 Economics GR.11 Examination Guidelines

CONTENT DETAILS FOR TEACHING, LEARNING AND

TOPIC 3: ECONOMIC SYSTEMS: THE MIXED ECONOMY ASSESSMENT PURPOSES

Explanation of the characteristics and foundations of

South Africa’s mixed economy, and assessing its
efficiency in terms of socio-economic services

 Economic systems
 Briefly describe and explain the relevant concepts
- Market economy  Briefly discuss the efficiency in delivering socio economic
 economic characteristics- services
 advantages  Discuss the economic characteristics, advantages
 disadvantages disadvantages of a market economy

 Discuss the economic characteristics, advantages

- Centrally planned economy disadvantages of a centrally planned economy
 economic characteristics-
 advantages
 disadvantages

- Mixed economy  Discuss the economic characteristics, advantages

 economic characteristics- disadvantages of a mixed economy.
 advantages
 disadvantages Compare and contrast the South African mixed economy with a
centrally planned economic system

Evaluate South Africa’s current position in social service delivery

 Efficiency in delivering socioeconomic services
focussing on the provisioning of social and economic services

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 Economics GR.11 Examination Guidelines

TOPIC 4: ECONOMIC STRUCTURE

CONTENT DETAILS FOR TEACHING, LEARNING AND
OF SOUTH AFRICA
ASSESSMENT PURPOSES

Analysis of the economic structure of South

Africa

 Primary Sector  Briefly describe and explain the relevant concepts

 Distinguish between the TWO different operations in the primary
- Descriptions
sector
- Composition
 Distinguish between the THREE different industries in the primary
- Importance
sector
 Discuss the economic importance of the primary sector

 Secondary Sector
 Briefly describe and explain the relevant concepts
- Descriptions  Discuss the composition of the secondary sector
- Composition  Discuss the economic importance of the secondary sector
- Importance

 Tertiary Sector
 Briefly describe and explain the relevant concepts
- Descriptions  Discuss the composition of the tertiary sector
- Composition  Discuss the economic importance of the tertiary sector
- Importance  Discussion in detail the economic importance of the tertiary sector

 South Africa’s infrastructure

- Description  Briefly discuss communication as part of SA infrastructure
- Communication  Briefly discuss transport as part of SA infrastructure
- Transport  Briefly discuss energy as part of SA infrastructure
- Energy  Briefly discuss exclusion as part of SA infrastructure
- Exclusion  Discuss South Africa’s infrastructure

Note: Infuse in the analysis:  Discuss in detail South Africa’s infrastructure and its economic
importance
Exclusion and discrimination in service
provision and access to economic
opportunity

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 Economics GR.11 Examination Guidelines

MAIN TOPIC: MICROECONOMICS

CONTENT DETAILS FOR TEACHING, LEARNING AND
TOPIC 5: RELATIONSHIP BETWEEN MARKETS ASSESSMENT PURPOSES

Analysis of the relationships between markets

illuminates them with the aid of graphs

 Relative prices
 Briefly explain relative prices
 Demand and supply relationships
- substitutes  Briefly discuss the relationships between product and
- compliments factor markets

Relationships between product and factor  Discuss in detail the demand and supply relationships
markets with the aid of graphs (substitutes and compliments)

 Market structure - perfect and imperfect  Discuss the four basic market structures with
markets: the aid of graphs

 Four basic market structure models  Discuss in detail the characteristics of perfect markets
 Characteristics and differences between and monopoly
the basic market structure models
 Number of businesses
 Nature of product
 Entrance
 Control over prices
 Information
 Examples
 Demand curve
 Classification of market structure models  Tabulate differences between any two market structures
into perfect and imperfect markets.

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 Economics GR.11 Examination Guidelines

CONTENT DETAILS FOR TEACHING, LEARNING AND

TOPIC 6: EFFECTS OF COST & REVENUE ASSESSMENT PURPOSES

Explain and illustrate by means of graphs the

effects of cost and revenue on prices and the
levels of production.

 Objectives of businesses  Briefly discuss the objectives of a business. Use the SMART
- SMART principle
 Specific
 Measurable
 Acceptable
 Realistic
 Time specific

 Distinguish between the different types of objectives in

- Different objectives
 Survival business
 Profit maximizing
 Revenue maximizing
 Sales maximizing

 Short-run costs:  Describe the concepts

 FC, VC, TC, AC, MC  Explain the trend or pattern of the MC curve
 formulae  Determine the missing values from the table
 cost schedules / tables  With the aid of graphs, explain the short-run cost of a
 curves business
 Costs
 Long-run costs
 LAC/ LMC  Describe the concepts
 Revenue calculations  Discuss the economies and diseconomies of scale

 TR/ AR/ MR

 changes in revenue
 With the aid of graphs explain how a firm can determine its profit
 profits and losses maximisation level with the use of TR-TC & MR-MC approach
(Profit / Losses; Short-run / Long-  Calculate the profit or loss of a business using:
run; Cost and Revenue analysis Profit or loss = TR - TC
OR
(Graphical illustrations)
Profit or loss = AR – AC
Note: Application of revenue and costs
analysis should include production and the THE ABOVE TOPIC HAS NO ESSAYS
pricing of factors.

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 Economics GR.11 Examination Guidelines

TOPIC 7: PRICE ELASTICITY CONTENT DETAILS FOR TEACHING, LEARNING AND

ASSESSMENT PURPOSES

Explanation of price elasticity’s and calculating

their values. Use graphs in presentation for
illustration.

 Price elasticity of demand (PED)  Discuss in detail the price elasticity of demand (PED)
- Description (with / without the aid of graphs)
- Formula
- Types of PED
- Factors determining PED

 Factors determining the elasticity of  Examine the factors determining elasticity of demand
demand

 Briefly explain the types/degrees of price elasticity of supply

 Price elasticity of supply (PES)
(PES)
- Description
- Formula
- Types/degrees of PES

MAIN TOPIC: ECONOMIC PURSUITS

CONTENT DETAILS FOR TEACHING, LEARNING AND
TOPIC 8: ECONOMIC GROWTH ASSESSMENT PURPOSES

Wealth creation process and patterns of

distribution

 Wealth creation process

 Briefly describe and explain the relevant concepts
- Description of wealth
 Differentiate between wealth and income
- Difference between wealth and income
- The sources of wealth  Briefly explain the different sources of wealth
- Methods to create wealth (Focus on the  Explain the methods to create wealth through savings
wealth creation through saving)

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 Economics GR.11 Examination Guidelines

 Distribution
 Briefly describe the relevant concepts
- Income distribution
 Briefly explain income distribution
- Wealth distribution
 Briefly explain wealth distribution
- How much inequality?
 Briefly explain the use of the Gini Coefficient to measure
- The uses of the Gini Coefficient and the
income inequalities
Lorenz Curve
 Discuss the different methods uses to redistribute income and
wealth
 With the aid of the Lorenz-curve discuss the unequal
distribution of income in South Africa

 Redistribution methods
Domestic & International Measures:  Discuss in detail the different methods used to redistribute
 Taxes income and wealth
 Cash grants
 Natura benefits/ benefits in kind
 Labour market policy
 Macroeconomic policy

South African approach:

 Affirmative action  Evaluate the South African government’s efforts to redress
 Broad based black economic economic inequality
empowerment Act. (BBBEE)
 Land restitution and land
redistribution
 Property subsidies

 Economic growth
 Briefly describe the relevant concepts
- Meaning and calculation  Discuss Economic growth
- Importance  Explain the importance of economic growth figures
- Methods  Evaluate South Africa’s economic growth performance
- Constraints on growth
- South Africa’s recent growth experience

 Standard of living
- Description  Briefly describe the relevant concepts
- Population size  Briefly discuss the standard of living
- Per Capita income (show calculations)  Discuss per capita income, with the aid of calculations

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 Economics GR.11 Examination Guidelines

CONTENT DETAILS FOR TEACHING, LEARNING AND

TOPIC 9 : ECONOMIC DEVELOPMENT ASSESSMENT PURPOSES

Economic development.

 Briefly describe the relevant concepts

 Compare: Economic growth and
Economic Development  Compare economic growth and economic development
 Briefly discuss the strategies to increase economic development
 Methods of development  Discuss the characteristics of developing countries

 Common characteristics of developing Discuss in detail the characteristics of developing countries

countries:

- Low standard of living

- Low levels of productivity
- High population growth and
dependency burdens
- High levels of unemployment
- Dependence on the primary sector
- Deficient infrastructure

 Developing strategies
 Identify some of South Africa’s strategies to development

 South Africa’s endeavours

- Reconstruction and development (RDP)
 Evaluate South Africa’s endeavours
- Growth, Employment and Redistribution
programme (GEAR)
- The joint initiative on priority skills
acquisition (JIPSA)
- The accelerated and shared growth
initiative for South Africa (AsgiSA)
- National Skills Development Strategy
(NSDS)
- Financing Entrepreneurship Promotion
Programmes

 Briefly discuss the importance of indigenous knowledge systems

 Indigenous knowledge systems

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 Economics GR.11 Examination Guidelines

CONTENT DETAILS FOR TEACHING, LEARNING AND

TOPIC 10: MONEY AND BANKING ASSESSMENT PURPOSES

The composition of South Africa’s money and its

Banking

 Money

- Technical functions of money

 Briefly describe the relevant concept
- Modern money
 Briefly explain the technical functions of money
- Money-associated instruments
 Briefly discuss modern money
- The monetary system
 Briefly discuss money related instruments
- The value of money
 Briefly discuss the value of money
- Stabilising the value of money
 Briefly discuss the stabilising of the value of money

 Banking

- The basic principles of credit creation

- Interest rates  Briefly discuss credit creation
 Discuss factors that determine the interest rates

 Micro-lending activities
 Briefly discuss micro-lending activities

 Central banking

- Basic functions

 Bank of issue
 Act as banker to the government  Briefly discuss the aims of monetary policy
 Custodian of foreign reserves  Briefly discuss the monetary policy instruments
 Act as bankers’ bank

- Monetary policy
 Discuss in detail the functions of the South Africa’s
 Description Reserve Bank as a Central bank
 Aims
 Monetary policy instruments:
 Interest rates
 Cash reserve requirements
 Explain the aim of the SARB monetary policy
 Open market transactions
 Moral suasion
 Examine the central bank monetary policy by focusing
on the instruments used by the SARB
 Evaluate the inflation targeting policy of the SARB

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 Economics GR.11 Examination Guidelines

 Bank failures and consequences

 Briefly discuss reasons for bank failures
Reasons
 Explain the consequences of bank failures
 Foreign exchange risks

 Too much exposure to real estate

 Poor credit evaluation

 Huge operating costs

 Fraudulent operations

 Poor management

 Inadequate reserve requirements

Consequences

 Lack of confidence in the banking sector

 Depositors may lose their deposits

 Banking panic

 Banking run

 Negative perception

 Unemployment

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 Economics GR.11 Examination Guidelines

MAIN TOPIC: CONTEMPORARY ECONOMIC ISSUES

CONTENT DETAILS FOR TEACHING, LEARNING AND
TOPIC 11: GLOBALISATION
ASSESSMENT PURPOSES
Examination and debating of globalisation, its
relevance to the North/South divide, and its effects
(negative and positive) on South Africa.

 Briefly describe the relevant concepts

 Meaning
- Description
 Discuss the World Trade Organisation (WTO) under the
- Structures e.g. MNE’s, IMF, World Bank and following headings:
WTO - Description
- Objectives
 Briefly explain the main objectives with the Millennium
 Causes Development Goals (MDGs)
Changes in communication technology and  Briefly describe a free trade zone (FTZ)
global information systems
 Briefly debate the effects of economic integration, use
- Development of technology
examples to motivate your arguments
- Trade liberalization
- Capital liberalization
- Multi-national Enterprises
 Examine in detail the causes and consequences of
- Standardisation
- Foreign Direct Investment globalisation
- Free Trade Zone

 Consequences
- Structural changes
- Economic growth
- Change in trade patens
- Change in employment conditions
- Environmental deterioration  Analyse the consequences of globalisation
- Cultural changes
 Debate the positive and negative consequences of
- International cooperation has increased
- Increase in interdependence between globalisation
countries

- North/South divide Compare in terms of the

following characteristics

- Standard of living / Development

- Globalisation inequalities  Compare the characteristics of rich (North) and poor
- Environment (South) countries
- Sustainable development

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 Economics GR.11 Examination Guidelines

CONTENT DETAILS FOR TEACHING, LEARNING AND

TOPIC 12: ENVIRONMENTAL DETERIORATION ASSESSMENT PURPOSES

The environment
 Briefly describe the relevant concepts
 Description
 Relationship between environment and the  Evaluate the impact of the economy on the environment
economy

 The problem
- Description
- Causes  Examine in detail the state of environment / problems
 Natural environmental degradation threatening the environment
 Human-induced environmental
degradation
 Poverty and environmental
degradation
 Agricultural development and
deforestation
 Land degradation
 Industrial development, mining and
environmental degradation
 Human settlement, urbanization and
environmental degradation

 Protecting the environment  Explain the importance of protecting the environment

 Analyse the measures / methods used to protect the

- The importance of protection
- Methods of protection: environment

 Price based method

 Market based method
 Use of laws and regulations  What is sustainable development?

 Approaches to sustainability
- Description of sustainable development
- Approaches / measures to ensure sustainable
development:

 Public sector intervention by granting  Discuss public sector interventions as measures to ensure
property rights, charging for the use of the
sustainable development
environment, environmental taxes,
environmental subsidies and marketable
permits

 Public sector control through command  Discuss public sector control as measure to ensure
and control, voluntary agreements and sustainable development
education.

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 Economics GR.11 Examination Guidelines

Other Approaches
 Discuss measures to ensure sustainable development
- Environmental management
- National Framework for sustainable
development (NFSD)
- Environmental impact assessment (EIA)
- World summit on Sustainable development
(WSSD)
- Conserving biodiversity
- Greening the Nation Programme
- Working for wetlands
- Green taxes

 The global and local impact on South Africa

 Distinguish between GREEN and BROWN environmental
- GREEN ISSUES
issues
 Climate change
 What does the term Genetically Modified Organisms (GMO)
 Mining
mean?
 Biodiversity
 Explain the forces driving environmental change in South
 Water management
Africa (National + International)

- BROWN ISSUES
 Waste pollution
 Water and sanitation
 Air pollution

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Economics GR.11 Examination Guidelines

TOPICS COVERED ACROSS THE GRADES

TOPICS : CAPS PAPERS GR.10-12

GR.10 GR.11 GR.12
PAPER 1 PAPER 2 PAPER 1 PAPER 2 PAPER 1 PAPER 2
MACROECONOMICS MICROECONOMICS MACROECONOMICS MICROECONOMICS MACROECONOMICS MICROECONOMICS

 Factors of production  Relationships between  Circular flow

 Basic concepts  Dynamics of  Perfect markets
and its remuneration markets
 Basic economic problem markets  Circular flow &  Business cycles
(Price formation)   Imperfect markets
 Circular flow & quantitative elements: Effects of cost & revenue
 Public sector
Economic goods and on price and quantities
Quantitative elements:  Production  Market failures
services  Foreign exchange markets
 Business cycles possibility curve  Price elasticity
 Economic systems
 South Africa’s
 Public sector
economic structures
intervention

ONLY THE ABOVE TOPICS ARE APPLICABLE FOR THE MID-YEAR EXAMINATION
ECONOMIC PURSUITS ECONOMIC ISSUES ECONOMIC PURSUITS ECONOMIC ISSUES ECONOMIC PURSUITS ECONOMIC ISSUES

 Economic growth  Globalisation  Protectionism and Free Trade  Inflation

 Economic growth and  Unemployment
 Economic development  Growth & Development  Tourism
development and
 Labour relations  Environmental
deterioration  Industrial development
globalisation  Money & banking  Environmental
 Population & labour  Economic redress policies
sustainability
 Economic and social
force
performance indicators

ALL TOPICS MENTIONED ARE APPLICABLE FOR THE FINAL EXAMINATION

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Economics GR.11 Examination Guidelines

4. CONCLUSION

This Examination Guidelines document is meant to articulate the assessment aspirations espoused in the
CAPS document. It is therefore not a substitute for the CAPS document which educators should teach to.

Qualitative curriculum coverage as enunciated in the CAPS cannot be over-emphasised.

NOTE: The structure of the NSC Economics question papers

(pp. 4–7) replaces the ANNEXURE included in the CAPS (pp. 45-46)

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