GRADE 11 ECONOMICS TERM 03
LESSON PREPARATION
CAPS TOPIC: ECONOMIC GROWTH
Key concepts that learners need to understand at the end of the lesson:
Economic Growth
Economic Growth Policy
Growth, employment and
Redistribution (Gear)
National Growth Path
Wealth Distribution
Income distribution
Land Redistribution
Land Restitution
Gini Coefficient
Lorenz Curve
Standard of living
South African Reserve
Bank (SARB)
Learners must know the difference between Economic Growth and
Economic Development
Learners must know the measurement of Economic Growth (GDP,GNP)
Types of Economic Growth (Sustainable, Unsustainable and Negative
Growth)
Factors influencing Growth (Technological progress, institutional factors,
human capital, and physical capital).
Sources of economic growth
Some fundamental causes of low economic growth
ECONOMIC GROWTH
Definition of Economic Growth [2 marks question]:
An increase in the productive capacity of an Economy over time. It is a
change in the real GDP.
It is an increase in the total production of Final goods and services within the
borders of a country within a specific period usually a year.
Key concepts relating to Economic Growth: (Multiple choice, True or false, Matching Items,
Give one Term [2 marks each concept])
a) Economic growth Policy: A policy that helps to increase the annual total
production or income in the economy.
b) Growth, Employment and Redistribution: A strategy to promote economic
growth, increase employment and redistribute income.
c) National Growth Path (NDP): Initiatives to stimulate economic growth.
d) Wealth Distribution:
e) Income Distribution:
f) Land Redistribution: A policy aimed to increase the ownership of agricultural
land of black people in the economy.
g) Land Restitution: Returning land to its original owners or communities, often
after historical injustices or forced displacement (e.g. colonialism,
apartheid).
h) Gini Coefficient: A numerical measure derived from the Lorenz Curve.
i) Lorenz Curve: A graph showing the distribution of income (or wealth) within
an economy.
j) Standard of living: Refers to the level of economic well-being and comfort
experienced by individuals or households, measured by their access to
essential goods and services.
k) South African Reserve Bank (SARB): Central bank of South Africa with the
main goal to maintain price stability, thereby promoting balanced and
sustainable growth.
The difference between Economic Growth and Economic Development [8 marks Question]:
ECONOMIC GROWTH ECONOMIC DEVELOPMENT
A policy that helps to increase It is an improvement in the
the annual total production or standard of living of the people of
income in the economy. a country.
Is measured as a percentage Deals with issues such as
change in Real GDP. Education literacy, healthcare,
Concerned with total goods and employment and environmental
services. sustainability.
Is necessary input for economic Concerned with people and
development. human development.
Growth should lead to
development.
HOW TO MEASURE ECONOMIC GROWTH: [4 marks question]
First, the production or income should be measured in real terms, that is, the
effects of inflation should be eliminated.
Second, the figures should also be adjusted for population growth. In other
words, they should be expressed on a per capita basis.
Positive economic growth actually occurs only when total real production or
income is growing at a faster rate than the population.
In practice, however, economic growth is usually simply measured by
determining the annual growth in real production or income.
Total real production is commonly represented by real gross domestic product
(real GDP). Recall that real GDP means that the measurement is at
constant prices. However, we need to look at a few problems associated
with GDP as a measure of total production or income in the country.
FACTORS INFLUENCING ECONOMIC GROWTH: [8 MARKS QUESTION]
i.
