Grade 7 · CAPS

Grade 7 Economy

Economic and Management Sciences practice questions with answers

Grade 7 Economy is part of the CAPS Economic and Management Sciences curriculum, covering key concepts such as socio-economic challenges, self-sufficiency, and the factors of production. Learners will explore the importance of recycling and resource conservation, as well as the reasons behind saving money. These skills are essential for understanding economic systems and personal finance. Practice questions below are drawn from ReClass's own question bank.

Worked example

3.2 Explain the differences between a Developed and Developing Country. Give two very clear differences.

Answer & explanation

Developed country: advanced industrialisation, high standard of living, high average income, work is mostly in big businesses (any 2). Developing country: very little industrialisation, low standard of living, low average income, a large percentage of the workforce is in small business (any 2).

You'll also practise

  • 5.3.3 The selling of surplus goods is an important step in economic development. Explain why?
  • 1.1 Fill in the missing word. (6) a. ___________________________ goods are goods that will last for a long time. b. ___________________________ goods are goods that are used to produce other goods. c. ____________________________ goods are used to manufacture other goods.
  • 1.2 Name and explain the two types of services. (4)
  • 1.3 Explain the difference between Producers and Consumers. (4)
  • 1.4 List two benefits of Recycling. (2)
  • 1.5 Explain the difference between Inequality and Poverty. (4)
  • 1.6 Name and explain the 5 reasons for the difference in income amongst people. (10)
  • 6.1 Name and explain the three stages of Production.
  • 6.2 What are the four factors of Production?
  • 6.3 List 3 advantages and 3 disadvantages regarding the use of technology.
  • 6.4 List 3 socio-economic challenges for each of the areas listed below.
  • 6.5 Name three strategies that can be used to create employment.
  • 7.1 Traditional societies were self-sufficient.
  • 7.2 A promissory note is a written and signed promise to pay a sum of money.
  • 7.3 Free goods are those goods that have a limited supply.
  • 7.4 Primary sector businesses use raw materials to manufacture goods.
  • 7.5 If we recycle, we use less of the resources (raw materials) we get from earth.
  • 8.1 Name the four groups of factors of production.
  • 8.2 Give two reasons why people save money.
  • 8.3 Name and explain the three stages of production.
  • 8.4 What is technology?
  • 8.5 List two advantages of using technology in the production process.

Common mistakes

  • Confusing free goods with goods that are simply low-cost.
  • Misunderstanding self-sufficiency as complete independence from external resources.
  • Mixing up socio-economic challenges with general economic terms.
  • Assuming recycling has no economic impact.

Aligned to CAPS Grade 7 Economic and Management Sciences — Economy.

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