Grade 10 · CAPS

Grade 10 Basic Concepts

Economics practice questions and a worked example

Grade 10 Economics starts with the language of the subject itself: what economics actually studies, how it splits into microeconomics and macroeconomics, and the difference between a positive statement (what is) and a normative one (what ought to be). Practice questions here work from real past-paper items -- naming the elements of economics, matching definitions to terms, and explaining why economics draws on the scientific method the same way the natural sciences do.

Worked example

1.2 Choose a description from COLUMN B that matches the item in COLUMN A. Write only the letter (A–F) next to the question number (1.2.1–1.2.5) in the ANSWER BOOK.

Column A

  1. 1.2.1
    Macroeconomics
  2. 1.2.2
    Normative statement
  3. 1.2.3
    Public sector
  4. 1.2.4
    Econometrics
  5. 1.2.5
    Economic growth

Column B

  1. A.
    The enterprises that are owned and controlled by the government
  2. B.
    The application of statistical methods in Economics
  3. C.
    It deals with large decisions that impact on the total economy as a whole
  4. D.
    A statement based on facts
  5. E.
    A decrease in the amount of goods and services produced by a country
  6. F.
    Describes how something should be (on what ought to be)
  7. G.
    An increase in the amount of goods and services produced by a country

Answer & explanation

C, F, A, B, G
1.2.1 Macroeconomics: The correct answer is C. Macroeconomics deals with large-scale economic factors and decisions that impact the entire economy. 1.2.2 Normative statement: The correct answer is F. A normative statement describes how things should be, based on opinions or values, rather than facts. 1.2.3 Public sector: The correct answer is A. The public sector consists of enterprises owned and controlled by the government. 1.2.4 Econometrics: The correct answer is B. Econometrics involves the application of statistical methods to economic data to give empirical content to economic relationships. 1.2.5 Economic growth: The correct answer is G. Economic growth refers to an increase in the amount of goods and services produced by a country over time.

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Basic Concepts

Question 1 of 3

1.1.1 Which subject would you study if you wanted to solve the problem of scarcity and unemployment?
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More practice questions

Explore additional Grade 10 Basic Concepts questions.

  • 2
    1.3 Give one term for the following descriptions. Write only the term next to the question number (1.3.1-1.3.5) in the ANSWER BOOK. 1.3.1 A study of the economic behaviour of individual consumers and producers, the interaction between them, and the factors that influence their choices. 1.3.2 Making of goods and services that consumers use to satisfy their unlimited wants. 1.3.3 The lower turning point in the business cycle. 1.3.4 Average value of products produced per person in a country. 1.3.5 Flow of goods and services, and money, in opposite directions between households and firms.
  • 3
    2.1.1 Name any TWO elements of Economics.
  • 4
    2.1.2 Why is economics related to other sciences?
  • 5
    1.1.1 Normative economics... Choose the answer and write only the letter (A – C) next to the question number (1.1.1 – 1.1.5) in the ANSWER BOOK.

Common mistakes

  • Mixing up 'positive' and 'normative' -- a positive statement is a factual claim that can be tested ("unemployment rose last year"), a normative one is an opinion about what should happen ("government should raise the minimum wage"). Learners also often confuse microeconomics (individual consumers and firms) with macroeconomics (the economy as a whole) when a question describes a specific industry.

More Grade 10 Economics topics

Aligned to CAPS Grade 10 Economics — Basic Concepts. Curriculum source: CAPS for the FET Phase, Department of Basic Education.

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