CURRICULUM FET

ECONOMICS

LEARNER MANUAL
TERM 2 - 2024

BACK ONTRACK PROGRAMME

GRADE 10

1
SESSION ONE

TOPIC: DYNAMICS OF MARKETS

SECTION A
1.1 Various options are provided as possible answers to the
following questions. Choose the answer and CIRCLE only the
letter (A -D) next to the question numbers (1.1.1 – 1.1.8) in the
ANSWER BOOK, e.g., 1.1.9 D

1.1.1 A demand curve shows the relationship between a producer’s price

and …
A. cost of production
B. the quantity of the product
C. the income of the consumer
D. population changes

1.1.2 A monopoly is an example of …

A. an imperfect market
B. a perfectly competitive market
C. a monopolistic competitive market
D. a cartel

1.1.3 Firms that determine their own prices are called price …
A. takers
B. makers
C. negotiators
D. searches

1.1.4 World markets are also known as …

A. collective
B. money
C. global
D. perfect

1.1.5 A characteristic of an imperfect market: .

A. There is one supplier or a few large suppliers.
B. Products are homogenous.
C. There are no barriers to entry.
D. No participant has the power to influence the market price.

1.1.6 Which of the following is NOT an example of businesses in an

oligopoly market?
A. Audi, BMW, Hyundai
B. FNB, ABSA and Standard Bank
C. Engen, Caltex and Sasol
D. KFC, Nandos and Hungry Lion

1.1.7 When the quantity supplied of a specific good is greater than the
demand for that specific good.
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 A. Market equilibrium
B. Market failure
C. Market surplus
D. Market shortage

1.1.8 The amount of money that consumers are willing to sacrifice for a
good or a service is known as ...

A. satisfaction
B. value
C. price
D. a market (8 x 2)
(16)

1.2 Choose a description from COLUMN B that matches an item in

COLUMN A. Write only the letter (A – I) next to the question
number (1.2.1 – 1.2.8) in the ANSWER BOOK.

COLUMN A Answer COLUMN B

1.2. Perfect A. Products that are used instead
1 market of other products
1.2. Supply B. Products that are used
2 together with other products.
1.2. World markets C. Agriculture sector
3
1.2. Monopoly D. Goods offer for sale at a given
4 price.

1.2. Oligopoly E. The absence of neither excess

5 demand nor shortage.

1.2. Substitutes F. Single supplier for a good or

6 service in the market.

1.2. Equilibrium G. Examples of this type of

7 market is Vodacom, Cell C and
MTN.
1.2. Complements H. Customers are spread
8 throughout the world.

I. A marketplace of for factor of

production.
(8x1) (8)

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1.3 Give ONE term for each of the following descriptions. Write
only the term next to the question numbers (1.3.1 – 1.2.6) in
the ANSWER BOOK. Abbreviations, acronyms and examples
will NOT be accepted.

1.3.1 A law that states there is an inverse relationship between price

and quantity.

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1.3.2 The satisfaction gained from consuming a product.

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1.3.3 Additional satisfaction gained from consuming one extra unit of

a good and service in a given period.

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1.3.4 A curve that has a positive slope.

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1.3.5 Caused by an excess demand for a product.

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1.3.6 The assumption that all other things will remain the same.

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(6x1) (6)

SECTION B
QUESTION 2
2.1 Answer the following questions:

2.1.1 Name any TWO characteristics of value. (2 x (2)

1)

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2.1.2 Why does the demand curve slope downwards? (2 (2)

x 1)

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2.2 Study the table below and answer the questions that follows:

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 Price Quantity Quantity
(R) demanded supplied

1 500 100
2 400 200
3 300 300
4 200 400
5 100 500

2.2.1 What is the relationship between the price and the quantity (1)
supplied?

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2.2.2 Identify the equilibrium price. (1)

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2.2.3 Briefly describe the term demand. (2)

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2.2.4 How will an increase in income affect the demand curve? (2)

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2.2.5 Use the information in the above table to draw a fully labelled graph
to establish a market price. (4)

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2.3 Study the cartoon below and answer the questions that follow:

While Unit One

was out on planned
maintenance, Unit
Two unfortunately
also burst out into
flames…

2.3.1 Name the market structure that is illustrated in the cartoon. (1)

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2.3.2 Identify the problem from the speech bubble that is currently a
challenge for ESKOM. (1)

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2.3.3 Briefly describe the term monopoly. (2)

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2.3.4 Explain price control as a characteristic of a monopoly. (2)

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2.3.5 How does load shedding affect the producer? (4)

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2.4 With the aid of a well-labelled graph explain the impact of severe
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 floods on the supply of potatoes (8)

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2.5 How does technology impact on world markets? (4 x (8)

2)

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SECTION C

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 ● Discuss in detail the imperfect market.
● How does the presence of market power in imperfect markets
influence consumer welfare and pricing decisions?

INTRODUCTION (short description of a market)

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BODY

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________________________________________________ (heading)
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ADDITIONAL PART
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CONCLUSION
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SESSION TWO
TOPIC: PRODUCTION POSSIBILITY CURVE

SECTION A
QUESTION 1
1.1 Various options are provided as possible answers to the
following questions. Choose the answer and CIRCLE only the
letter (A -D) next to the question numbers (1.1.1 – 1.1.8) in the
9
ANSWER BOOK, e.g., 1.1.9 D.
1.1.1 In economics, the situation that exists because we have
insufficient resources to satisfy our need and want is known as …
A. opportunity cost
B. making choice
C. scarcity problem
D. insufficiency

1.1.2 A situation in which the current combination of goods and service

does not give the maximum satisfaction.
A. Utility
B. Allocative inefficiency
C. Productive efficiency
D. Budget line

1.1.3 When it is not possible to make someone better off without

making someone worse off.
A. Inefficiency
B. Market failure
C. Scarcity
D. Pareto efficiency

1.1.4 The combination of goods produced reflects the maximum utility

of the consumer.
A. Allocative efficiency
B. Productive efficiency
C. Pareto efficiency
D. Combined efficiency

1.1.5 …. means that all the economy’s resources are being used and
there is no waste of resources.
A. Allocation
B. Choice
C. Inefficiency
D. Efficiency

1.1.6 The curve that shows the different combinations of two products
which will provide consumers with equal levels of satisfaction.
A. Budget
B. Indifference
C. Supply
D. Production possibility curve
1.1.7 A situation where an economy is able to produce goods and
services at the lowest possible unit cost.

A. Production inefficiency
B. Production efficiency
C. Allocative inefficiency
D. Allocative efficiency

1.1.8 …… is an external factor that determines the position of the PPC.

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 A. Improved technology
B. Improved production techniques
C. Improved infrastructure
D. Improved productivity of workers
(8 x 2) (16)

1.2 Choose a description from COLUMN B that matches an item in

COLUMN A. Write only the letter (A – I) next to the question number
(1.2.1 – 1.2.8) in the ANSWER BOOK.
COLUMN A Answer COLUMN B
1.2.1 Productive A. Show the combinations of any two goods
inefficiency or services that can be produced or
offered when the available resources are
working fully and efficiently.
1.2.2 Production B. When it is impossible to increase the
Possibility wealth of one person without harming
Curve the wealth of another person.

1.2.3 Opportunity C. A situation where an economy is able to

cost produce goods and services at the
lowest possible unit cost.
1.2.4 Allocative D. The producer does not produce at the
efficiency lowest possible unit cost.
1.2.5 Pareto E. The product mix (supplied goods) does
efficiency not reflect the consumers/community's
needs.
1.2.6 Productive F. The loss of one alternative when another
efficiency alternative is chosen.
1.2.7 Allocative G. When the market does not produce the
inefficiency maximum output with the minimum
input.
1.2.8 Market failure H. A situation where enterprises use the
available resources to produce the
output most demanded by
consumers/society.
I. When all resources are used effectively
and productively to achieve highest
output at lowest cost.
(8x1) (8)

1.3 Give ONE term for each of the following descriptions. Write only the
term next to the question numbers (1.3.1 – 1.3.6) in the ANSWER
BOOK. Abbreviations, acronyms, and examples will NOT be
accepted.

1.3.1 Show the combinations of any two goods or services that can be
produced or offered when the available resources are working fully
and efficiently.

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1.3.2 When it is impossible to increase the wealth of one person without
harming the wealth of another person.

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1.3.3 The value of the next best alternative forgone when making a choice
or decision.

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1.3.4 Leads to wasting of resources, time and effort.

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1.3.5 A situation in which the current combination of goods and service

does not give the maximum satisfaction.

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1.3.6 A situation where an economy is able to produce goods and services

at the lowest possible unit cost.

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(6x1) (6)

SECTION B

QUESTION 2
2.1 Answer the following questions:
2.1.1 Name any TWO types of inefficiencies. (2)
(2 x 1)

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2.1.2 Why is it not possible for the producer to produce outside the PPC? (1 (2)
x 2)

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2.2 Study the information below and answer the questions that follows:

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2.2.1 Identify the unattainable point of production. (1)

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2.2.2 How many apples will be produced at point M? (1)

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2.2.3 Briefly describe the term productive inefficiency. (2)

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2.2.4 Why is point W regarded as inefficient? (2)

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2.2.5 Calculate the opportunity cost when 450 oranges are produced. Show
ALL calculations. (4)

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2.3 Study the extract below and answer the questions that follows:
The PPC shows the maximum possible
output combinations of smartphones and
bicycles that can be produced given the
available resources and technology.
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2.3.1 What does a point inside the PPC indicate? (1)

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2.3.2 Identify one factor that can cause the PPC to shift outward. (1)

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2.3.3 Briefly describe the term opportunity cost. (2)

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2.3.3 How can a country move from a point inside the PPC to a point on the
PPC? (2)

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2.3.4 Illustrate on a well-labelled graph an increase in the available factors

of production and an increase in the production of smartphones. (4)

2.4 Discuss the external factors that affect the positioning of a production
possibility curve. (8)
(4 x 2)

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2.5 Analyse the impact of inefficiencies on the economy. (4 (8)

x 2)

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SESSION THREE

TOPIC: GOVERNMENT INTERVENTION

Section A questions – concepts and descriptions are examined by means of

Multiple choice, Column A and B and Give one term type questions:

1.1 Various options are provided as possible answers to the following

questions.
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 Choose the answer and write the letter (A – D) next to the question
numbers
(1.1.1 to 1.1.8) in the ANSWER BOOK, e.g. 1.1.9 D.

1.1.1 Tax levied on consumption of products which are harmful to human health.
A Ad valorem
B Excise duty
C Import duties
D Personal income tax

1.1.2 The highest price for which a good or service can be sold.
A Minimum price
B Demand price
C Minimum wage
D Maximum price

1.1.3 The maximum price for which a good or service can be sold.
A Value
B Price floor
C Price ceiling
D Opportunity cost

1.1.4 A tax levied as a percentage of the product.

A Ad valorem
B Specific
C Excise duty
D Green tax

1.1.5 Compulsory payments made by the people and businesses to the state.
A Subsidy
B Tax
C Minimum payment
D Maximum payment

1.1.6 … are a form of financial assistance by government to influence the

production and consumption of goods and services.
A Subsidy
B Tax
C Minimum payment
D Maximum payment

1.1.7 The price the government sets at a point above the market price.
A Subsidy
B Tax
C Minimum price
D Maximum price

1.1.8 The government sets a price below the market price to make goods more
affordable.
A Subsidy
B Tax
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 C Minimum price
D Maximum price (8 x 2) (16)

1.2 Choose a description from COLUMN B that matches the item in

COLUMN A. Write only the letter (A–I) next to the question number
(1.2.1 to 1.2.8) in the ANSWER BOOK, for example 1.2.9 J.

Column A Answe Column B

r
1.2.1 Black market A taxes levied on imported goods.
1.2.2 Consumer B the goods that are beneficial to the
subsidies society, but they are undersupplied by the
markets.
1.2.3 Customs duties C subsidisation of persons through
government transfer payments to allow
them to enjoy some minimum standard of
living
1.2.4 Merit goods D an illegal market in which illegal goods are
traded and illegal prices are charged
1.2.5 Income subsidies E taxes levied on selected products such as
tobacco and alcohol
1.2.6 Excise duties F encourage business to create more job
opportunities by means of wage subsidies
and to reduce unemployment
1.2.7 Producer subsidy G the financial incentives provided by the
government to the consumer in order to
reduce the price of the product
1.2.8 Employment H a payment to the firm with the aim of
subsidy decreasing the price of a product to make
it more affordable to the public
I taxes levied on income of individuals or
firms
(8 x 1) (8)

1.3 Give ONE term for each of the following descriptions. Write only the
term next to the question number (1.3.1 to 1.3.6) in the ANSWER
BOOK. Abbreviations, acronyms and examples will NOT be accepted.

1.3.1 Compulsory payment by citizens and businesses to the government

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1.3.2 Levied on the consumption of products that are harmful to human health

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1.3.3 Where the price set above the equilibrium price

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1.3.4 The highest price for which a good or service can be sold which sits below the
equilibrium point

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1.3.5 Taxes on the income of individuals and profits of businesses

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1.3.6 The lowest wage an employer is allowed to pay an employee, which sits above
the equilibrium point.

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(6 x 1) (6)

SECTION B

2.1 Answer the following questions.

2.1.1 Name any TWO types of subsidies. (2 x 1)

(2)

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2.1.2 Why did the South African government introduce a minimum wage? (1 x 2)
(2)

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Data response questions

2.2 Study the graph below and answer the questions that follow.

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2.2.1 Identify the equilibrium price in the graph above.
(1)

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2.2.2 Which price is regarded as the maximum price on the graph?

(1)

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2.2.3 Briefly describe the term price ceiling. (2)

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2.2.4 What will happen if there is a shortage of goods when a price ceiling is
implemented on a certain product? (2)

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2.2.5 How do price ceilings influence the economy? (2 x 2) (4)

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2.3 Study the extract below and answer the questions that follow:

National Minimum Wage

The Department of Employment and Labour has also published the

new National Minimum Wage for South Africa. The minimum wage of
R23,19 per hour will increase to R25,42 per hour (an increase of
approximately 9,6%), with effect 1 March 2023.

Farm workers will earn a minimum in line with the rate, as will
domestic workers. However, workers employed in expanded public
works programmes will be entitled to a lower rate at R13.97 per hour.
The national minimum wage applies to all workers i.e., any person
who works for another person and who receives or is entitled to
receive any payment for that work.
(Source: https://www.ccma.org.za)

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2.3.1 What is the current minimum wage amount per hour?
(1)

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2.3.2 Identify one group of workers, in the extract, that will receive a lower
minimum wage per hour.
(1)

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2.3.3 Briefly describe the term minimum wage. (2)

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2.3.4 Why is the minimum wage implemented? (2)

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2.3.5 How has the implementation of minimum wages advantaged the

workers
in South Africa? (2
x 2)(4)

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2.4 Distinguish clearly between price ceilings and price floors. (2 x 4) (8)

Price ceilings (maximum prices)

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 Price floors (minimum prices)

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2.5 Analyse the impact of minimum wages on unemployment. (4 x 2)(8)

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Question 3

3.1 Answer the following questions.

3.1.1 List any TWO types of workers who qualify to receive minimum wage in
South Africa. (2 x 1) (2)

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3.1.2 What is the impact of maximum price on the consumers? (1 x 2) (2)

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3.2 Study the graph below and answer the questions.

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3.2.1 Identify the maximum price in the graph above.
(1)

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3.2.2 What quantity will be demanded when the maximum price is set? (1)

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3.2.3 Briefly describe the term maximum price?

(2)

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3.2.4 Why will the government become involved in the production of goods and
services? (2)

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3.2.5 How will setting a maximum price affect the economy? (2 x 2)

(4)

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3.3 Study the extract below and answer the questions that follow.

SUBSIDIES
Government subsidies are used to promote specific industries or
social programs. Every government in the world aims to
alleviate poverty and provide a better life for its citizens.

Through the subsidies given by the South African government, it

stands strong to build a strong economy and create a peaceful
and prosperous society. Hence, you can leverage any of these
subsidies to live a more comfortable life as a South African
citizen.

(Source: https://briefly.co.za)

3.3.1 Name the government monetary assistance mentioned in the extract above.
(1)

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3.2.2 Name ONE type of consumer subsidy. (1)

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3.2.3 Briefly describe the term subsidies. (2)

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3.2.4 Why are export subsidies paid to businesses? (2)

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3.2.5 How do employment subsidies impact unemployment? (2 x 2)

(4)

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3.4 Discuss production and welfare as government intervention in the economy.
(2 x 4) (8)

Production

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Welfare

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3.5 How effective is the government’s use of maximum prices and minimum
prices
to help consumers and producers? (4 x 2) (8)

Positives:

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Negatives:

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Section C: Essay question – as per the DBE Grade 10 examination guideline

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Question 4

Discuss in detail the methods government uses to intervene in the

economy.

INTRODUCTION
(Write only ONE definition or description of government intervention for 2
marks)

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BODY: MAIN PART (26 marks)

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Graph

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Explanation of graph

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Graph

Explanation of graph

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Additional part (Maximum 10 marks)

Why are government involvement and intervention necessary?

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Conclusion: (Maximum 2 marks)

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