GR 10 Economics P2 (English) 2023 Possible Answers
GR 10 Economics P2 (English) 2023 Possible Answers
GR 10 Economics P2 (English) 2023 Possible Answers
JUNE 2023
PROVINCIAL EXAMINATION
NOVEMBER 2023
GRADE 10
MARKING GUIDELINES
ECONOMICS (PAPER 2)
17 pages
1
ECONOMICS
MARKING GUIDELINES
(PAPER 2) GRADE 10
SECTION A: COMPULSORY
QUESTION 1
1.1 MULTIPLE-CHOICE QUESTIONS
1.1.1 A – global ✓✓
1.1.5 D – skilled ✓✓
1.1.6 C – Majorification ✓✓
1.2.2 H ✓
1.2.3 E ✓
1.2.4 A ✓
1.2.5 G ✓
1.2.6 D✓
1.2.7 F✓
1.2.8 I ✓ (8 x 1) (8
1.3 GIVE THE TERM
1.3.1 Substitute product/substitutes ✓
1.3.2 Monopoly ✓
1.3.4 Retrenchment ✓
SECTION B
Answer any TWO of the three questions from this section in the ANSWER BOOK.
QUESTION 2: MICROECONOMICS
• Central government ✓
• Provincial government ✓
• Local government ✓ (2 x 1) (2)
• Oligopoly ✓ (1)
2.2.2 Name ONE other competitor in the cellular service provider industry
that does not appear in the image above.
• Cell C ✓
• Telkom ✓
(Accept any other correct response.) (1)
2.2.4 What advantage is there for consumers if more service providers join
the South African cellular market?
• Lower prices ✓✓
• Increased economic growth ✓✓
• Higher employment ✓✓
• More choices for consumers ✓✓
(Accept any other correct response.) (2)
3
ECONOMICS
MARKING GUIDELINES
(PAPER 2) GRADE 10
2.3.2 Name the point where we will not be able to produce due to a
shortage of resources.
• Point F ✓ (1)
4
ECONOMICS
MARKING GUIDELINES
(PAPER 2) GRADE 10
Mark allocation
Max. 4 marks
✓ ✓
Milk
5
ECONOMICS
MARKING GUIDELINES
(PAPER 2) GRADE 10
Productive inefficiency
• The production possibility curve above shows a combination of goods that can
be produced using all the available resources. ✓✓
• Any point on the curve shows a combination of goods where resources will be
used efficiently. ✓✓
• Therefore, any point on the curve indicates productive efficiency✓✓
• Any point within the curve shows combinations of goods where resources are
used inefficiently (D). ✓✓
• Any point outside the curve shows combinations of goods which we cannot
produce because of a shortage of a resources. ✓✓
(Max. 4 marks) (8)
[40]
QUESTION 3: CONTEMPORARY ECONOMIC ISSUES
3.1.1 Name any TWO SETAs created by the National Skills Authority.
• BANKSETA ✓
• CHISETA ✓
• ETDPSETA ✓
• ESETA ✓
• HWSETA ✓
• INSETA ✓
• SERVICESETA ✓ (2 x 1) (2)
3.2.1 Who are most likely to be employed through the Expanded Works
Programme?
3.2.2 Mention the economic policy implemented in 1994 with the aim of
addressing the imbalances of the past.
6
ECONOMICS
MARKING GUIDELINES
(PAPER 2) GRADE 10
7
ECONOMICS
MARKING GUIDELINES
(PAPER 2) GRADE 10
• Productive inefficiency ✓
• Allocative inefficiency ✓ (2 x 1) (2)
• Company Tax ✓
• Vat ✓
• Sin tax ✓ (1)
9
ECONOMICS
MARKING GUIDELINES
(PAPER 2) GRADE 10
4.2.5 Using a graph, illustrate how a raise in income tax will affect the
demand for goods.
D1 ✓✓ D ✓✓
disposable income
New demand curve (D1)
P/Q 2 marks
Quantity
(4)
4.3 DATA RESPONSE
4.3.1 Identify ONE requirement from the cartoon item above for the man to
apply for the job advertised.
• Skills ✓ (1)
4.3.2 Which institution provides statistical information for unemployment in
South Africa?
• Statistics South Africa/StatsSA/Department of Labour ✓ (1)
4.3.3 Briefly explain the term unemployment.
• This is where members of the labour force are without work, are available
or suitable for work and are seeking work, but are unable to find
employment. ✓✓ (2)
4.3.4 Why should the government be concerned with the high
unemployment rate in our country?
• The more people are unemployed, the more people that will depend on
the government for financial assistance. ✓✓
• The high rate of unemployment leads to a low economic growth rate. ✓✓
(Accept any other relevant correct response.) (2)
4.3.5 How can the government intervene to ensure participation of the
marginalised groups in the economy of the country?
11
ECONOMICS
MARKING GUIDELINES
(PAPER 2) GRADE 10
SECTION C
Answer ONE of the two questions from this section in the ANSWER BOOK.
Conclusion
Any relevant higher order conclusion that should include:
• A brief summary of what has been discussed/analysed without repeating
facts already mentioned in the body
Max. 2
• An opinion or valued 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: MICROECONOMICS
• How does an increase in the price of the petrol affect producers and
consumers? (10 marks) [40]
12
ECONOMICS
MARKING GUIDELINES
(PAPER 2) GRADE 10
INTRODUCTION
The concept of demand and supply are important to economists as they help them to
understand how prices are determined in the market. Therefore, the best place for a market
to operate is where the quantity demanded by the households is equal to the quantity
supplied by the firms. ✓✓
(Accept any other relevant introduction) (Max. 2 marks)
P1
Market
Equilibrium
• Equilibrium point is where the demand curve equals the supply curve and is
labelled as ‘market equilibrium’ on the graph above. ✓✓
• Equilibrium price (P1 market price) is the price at which demand and supply are the
same. ✓✓
• Equilibrium quantity (Q1) is the quantity of goods that are produced and sold at a
particular price (P1) in order to completely satisfy the household demand and where
there will be no left-over goods or services. ✓✓
• That is the same point as equilibrium point where quantity supplied is equal to quantity
demanded and there are no forces acting to change the price. ✓✓
Graph = 4 marks
Explanation = 8 marks
(Max. 12 marks)
The effects on markets when there is both a decrease in demand and supply.
13
ECONOMICS
MARKING GUIDELINES
(PAPER 2) GRADE 10
S2
s1
Price
e2
P2 e
P1 Mark allocation for graph
Labelling of the x-axis = 1
e1
Labelling of the y-axis = 1
New supply curve S1 = 1
New demand curve D1 = 1
Original equilibrium point e = 1
D1
New equilibrium point e1 = 1
D2 New equilibrium point e2 = 1
Q2 Q1 Quantity Max 4
• Equilibrium point (e) is where the original demand curve (D) equals the original supply
curve (S) and is labelled as ‘point e’ on the graph above. ✓✓
• Market price will be at ‘P1’ and quantity offered on the market will be at ‘Q1’. ✓✓
• When the demand of a product decreases then the original demand curve (D) will shift
inward and to the left labelled as D1. ✓✓
• Equilibrium point will now shift from point ‘e’ to point ‘e1’ and the price of the product will
decrease. ✓✓
• Market price and quantity will decrease to the equilibrium at e1. ✓✓
• Due to demand decreasing supply should now also decrease, thus the supply curve will
move inwards to the left into position S1. ✓✓
• The new equilibrium point (e2) will now be where D1 and S1 intersects at point ‘e2’,
thus at a lower market price. ✓✓
• The market price will now again settle on P1 from P2. Quantity will decrease from Q1 to
Q2. ✓✓
Graph = 4 marks
Explanation = 10 marks
(Max. 14 marks)
(26 marks)
ADDITIONAL PART
How does an increase in the price of the petrol affect producers and consumers?
• Increases the cost of transporting goods and services ✓✓
• Producers transfer the costs to consumers by increasing the price. ✓✓
• Supply tends to decrease because of a decrease in demand. ✓✓
• Consumers tend to demand less because of an increase in price. ✓✓
• Less demand of goods may lead to a decline in economic activities and economic
growth. ✓✓
(Accept any other relevant answer.) (Max. 10 marks)
14
ECONOMICS
MARKING GUIDELINES
(PAPER 2) GRADE 10
CONCLUSION
Price formation is a dynamic occurrence with any change in either supply or demand
affecting the market price of goods and services.
It is important to ensure that all the resources are used efficiently in order for the economy
to function at optimal capacity and growth can take place. ✓✓
(Accept any other relevant higher order response.) (Max. 2 marks)
- Causes of unemployment
- Effects of unemployment (26 marks)
• How can the government solve unemployment through monetary and fiscal
policy? (10 marks) [40]
INTRODUCTION
Unemployment is a situation in which members of the labour force are without work, are
available or suitable for work and are seeking work, but are unable to find
employment. ✓✓
(Accept any other relevant answer.) (Max. 2 marks)
Causes of unemployment:
Frictional unemployment ✓
• While some businesses and industries expand, others get smaller. ✓✓
• This means that people often move from one job to another. ✓✓
• They will go to different job interviews. ✓✓
• While people are looking for new jobs, they are said to be frictionally unemployed. ✓✓
Seasonal unemployment ✓
• Some businesses and industries have very busy periods, during which they need lots
of workers, and very slow periods during which they need fewer or no workers. ✓✓
• The farming and tourism industries are examples of seasonal unemployment. ✓✓
• The workers are unemployed during the slow period and re-employed during the busy
season. ✓✓
Cyclical unemployment ✓
• Cyclical unemployment varies according to the business cycle. ✓✓
• When the demand for goods and services drops some people may lose their jobs. ✓✓
• When economic activity increases, and the demand increases, people are re-
employed. ✓✓
15
ECONOMICS
MARKING GUIDELINES
(PAPER 2) GRADE 10
Effects of unemployment
16
ECONOMICS
MARKING GUIDELINES
(PAPER 2) GRADE 10
ADDITIONAL PART
Monetary policy:
• Government can reduce interest rates which makes credit cheaper. ✓✓
• Thus consumers and producers can borrow more and spend more. ✓✓
• Interest costs on previous borrowing e.g. home loans and hire-purchases fall when
interest rates are reduced, they will have more money available to spend. ✓✓
• Aggregate demand increases, leading to an increase in demand for labour/
workers. ✓✓
• An increase in demand and production will result in an increase in employment
rate. ✓✓
Fiscal policy:
• The government can budget for a deficit, and decrease taxation which will leave
consumers and businesses with more money to spend. ✓✓
• As a result, aggregate demand, production and employment will increase. ✓✓
CONCLUSION:
Apart from the monetary and fiscal policies to solve unemployment, the government can
use the supply-side approach which aims at reducing the costs of doing business and
improve efficiency of inputs of the market. ✓✓
(Accept any other relevant higher-order response.) (Max. 2 marks)
TOTAL SECTION C: 40
TOTAL: 150
17