Grade 10 Economics: Term 2

Identify the four participants in the South African economy (households, firms, government, foreign sector) and describe the role of each.

Draw and label a simple two-sector circular flow diagram (households and firms), showing the real and money flows.

Distinguish between the factor market, goods/services market, and financial market within the circular flow.

Extend the two-sector model to a four-sector model by adding the government and foreign sector, illustrating key injections and leakages.

Define the law of demand and explain the difference between a change in quantity demanded (movement along the curve) and a change in demand (shift of the curve).

List and explain the key non-price factors that cause the demand curve to shift.

Define the law of supply and explain the difference between a change in quantity supplied (movement along the curve) and a change in supply (shift of the curve).

List and explain the key non-price factors that cause the supply curve to shift.

Determine the equilibrium price and quantity by combining demand and supply schedules and graphs.

Illustrate and explain how market forces correct surpluses (excess supply) and shortages (excess demand) to restore equilibrium.

Analyze the impact of a specified shift in either the demand or supply curve on the equilibrium price and quantity.

Identify and describe the four phases of the business cycle (trough, recovery, peak, recession) on a labelled diagram.

Explain how the South African government uses fiscal policy (changes in government spending and taxes) to influence the economy.

Explain how the South African Reserve Bank uses monetary policy (changes in the interest rate) to influence the economy.