Economics Grade 11 Term 3 Week 4 - 2020
Economics Grade 11 Term 3 Week 4 - 2020
Economics Grade 11 Term 3 Week 4 - 2020
CONCEPTS AND SKILLS TO MASTER THE TOPIC OF ECONOMIC GROWTH YOU MUST DO THE FOLLOWING:
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WEEK 4
ECONOMIC GROWTH
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LIMITATIONS TO ACHIEVE ECONOMIC GROWTH
1. Low savings and Savings are needed to finance investments.
investment levels A. Savings
● Household savings are too low to achieve an annual growth rate.
● Household savings are low because those with a low income make up the bulk of the population and do not have enough income to save.
B. Investment
● South Africa's fixed investment rate is too low to create economic growth, mostly due to our low savings rate.
2. Insufficiently Highly skilled workers are in demand in SA, but are not available. This is because of the following:
qualified labor A. School education
● The number of candidates who qualify for university admission is too low.
● School literacy and numeracy rates are low.
B. Apprenticeships
● Too few candidates pass the apprenticeship test.
● The number that qualifies is too low to meet the needs of the economy.
3. HIV / AIDS South Africa is one of the highest HIV-infected populations in the world.
A. Working-age population
● The economically active population has a high infection rate.
● Once people become infected, they become less productive and when they die, their knowledge and experience are lost.
B. Medical expenses
● The government must spend money on health care to treat infected people, so there is less money available for economic growth policies.
● This has a negative impact on savings, taxes and profits.
SOUTH AFRICA'S recent economic growth experience
● South Africa's economic growth rate was 0.8% in 2018 and -2.1% in 2019. It is too low to reach a better standard of living of people.
● A sustained economic growth rate of 6% has been identified, as a minimum, to significantly reduce unemployment
STANDARD OF LIVING
● Economic growth is desirable because it enables society to consume more goods and services, which means that people's quality of life is higher.
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ACTIVITY 3
ACTIVITY 1
6. Discuss the factors that determine the standard of living of people. (2x2) (4)
3.1 What is represented by the graph above? (1)
3.2 What was South Africa's GDP growth rate in Quarter 2 of 2019? (1)
ACTIVITY 2
3.3 Give ONE possible reason why the South African growth rate was 0.8% in Quarter 3
ESSAY QUESTION of 2019. (2)
Discuss fully the constraints on economic growth. (26) 3.4 Briefly describe the concept 'Gross Domestic Product'. (2)
In your opinion, how can economic growth be promoted? (10)
3.5 Distinguish between monetary and fiscal policy. (2x2) (4)
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