SA NCS:Economy
Introducing the Subject
DEFINITION
Economics is the study of how individuals, businesses, governments and other organisations within our society
choose to use scarce resources to satisfy their numerous needs and wants in a manner that is efficient and
equitable.
PURPOSE
Economics equips learners with knowledge, skills, values and attitudes that will enable them to participate in,
contribute to, adapt to and survive in a complex economic society. It will enable them to demonstrate a critical
awareness of the benefits of responsible and sensitive resource utilisation.
Learners will be able to:
- acquire an advanced Economics vocabulary that will allow them to debate and communicate the essentials of this subject;
- apply, in a responsible and accountable manner, principles that underlie basic economic processes and practices;
- explore a variety of methods and strategies to analyse and explain the dynamics of markets;
- collect, analyse and interpret production, consumption and exchange data as well as other information in
order to solve problems and make informed decisions;
- understand human rights concerns, reflect on the wealth creation process, and engage in poverty alleviation; and
- analyse and assess the impact of local and global institutions on the South African economy.
SCOPE
The subject Economics studies the activities of production, consumption and exchange viewed from macro-
economic and micro-economic perspectives. These activities are informed by individual and societal
preferences. In an historical context, they focus successively on the primary, secondary and tertiary sectors.
Priorities include the significant contemporary economic issues of poverty, redistribution of income and wealth,
growth and development, globalisation, respect for the environment and human rights.
This scope embraces the following four features:
- principles, processes and practices of the economy (macro-economics): This feature deals with the concept
of the efficient use of resources to satisfy the competing needs and wants of individuals and of society. It
includes monetary and real flows in an open economy within the confines of production, consumption and
exchange. In addition, the goals of the Constitution and the sustainability of the environment are
acknowledged.
- dynamics of markets (micro-economics): This feature develops skills to apply demand and supply, and cost
and revenue analyses to explain prices and production levels. Market failure, leading to imperfect markets,
may result in the misallocation of resources and hence wastage, in turn aggravating unemployment and
poverty.
- economic pursuits: This feature emphasises the importance of reconstruction, growth and development, as
well as a critical approach to initiatives for a fair distribution of income and wealth, human rights, and
responsibilities.
- significant contemporary economic issues: This feature develops an understanding and critical awareness of
national and global issues of importance and of initiatives to solve them.
EDUCATIONAL AND CAREER LINKS
The broad and general principles, concepts and skills developed in the General Education and Training band
articulate outcomes related to entrepreneurship and business, the economy, management and administration,
and finance. Relevant elements pertaining to Economics are further extended in the Further Education and
Training band.
The Economics Learning Outcomes in the Further Education and Training band correspond with current
learning in Higher Education and Training institutions, and will enable learners to further their studies in, inter
alia, education, macro-economics and micro-economics, economic development, international economics,
public sector economics, environmental economics, economic history, monetary economics, econometrics,
business cycles and forecasting, journalism, transport economics, economic doctrines and systems, and related
social studies.
A study of Economics will enable learners to enter different careers, such as finance, manufacturing, commerce
and tourism, or to apply their entrepreneurial talents and acquired skills to create employment for themselves
and for others.
LEARNING OUTCOMES
Learning Outcome 1: Macro-economics
The learner is able to demonstrate knowledge, critical understanding and application of the principles, processes and practices of the economy.
Learners are exposed to the fundamental concepts and understanding that choice and sacrifice impact on the
destiny of resources in the production process. This should not be in conflict with the priorities of the
Constitution, nor should it impair the sustainability of the environment.
This Learning Outcome deals with monetary and real flows in an open economy. The participants include
consumers, enterprises, the public sector and the foreign sector. Learners are made aware of the rights and
responsibilities of the participants, and are taught to guard against the exclusion and marginalisation of the
economically and socially disadvantaged.
The interdependence of economic and other activities is emphasised in this Learning Outcome. This includes
the relationships between the economic, physical, social, technological, political and legal environments.
Learners are exposed to the importance of issues such as conservation, human rights and social
responsibilities.
By the end of Grade 10, learners who have achieved the minimum competences for this Learning Outcome
are able to demonstrate knowledge, comprehension and application of basic Economics concepts, the
circular flow model, and an introduction to business cycles.
By the end of Grade 11, learners who have achieved the minimum competences for this Learning Outcome
are able to demonstrate comprehension, analysis and evaluation of an elaboration on topics relevant to the
circular flow model and an assessment of socio-economic service delivery by the South African
government.
By the end of Grade 12, learners who have achieved the minimum competences for this Learning Outcome
are able to demonstrate application, synthesis and evaluation of the circular flow model, national account
aggregates, business cycle forecasting, and the public and foreign sectors.
Learning Outcome 2: Micro-economics
The learner is able to demonstrate knowledge, understanding and the appropriate skills in analysing the dynamics of markets.
Learners should be able to construct from raw or hypothetical data demand and supply and cost and revenue
curves, and illustrate and explain their interactions in the processes of establishing prices and levels of
production.
Perfect markets do exist, but are the exception because of market failures. Imperfect and perfect markets do not
always render a desirable distribution of resources, and necessitate government intervention. Therefore,
knowledge of the principles of cost-benefit analysis is useful.
By the end of Grade 10, learners who have achieved the minimum competences for this Learning Outcome
are able to demonstrate knowledge, comprehension and application of market phenomena, production
possibility curves and the effects of government's intervention and involvement in the market on prices and
quantities.
By the end of Grade 11, learners who have achieved the minimum competences for this Learning Outcome
are able to demonstrate knowledge, comprehension, application and analysis of the relationships between
markets, deriving prices and quantities by means of cost and revenue curves, and price elasticities.
By the end of Grade 12, learners who have achieved the minimum competences for this Learning Outcome
are able to demonstrate comprehension, application and analysis of the dynamics of perfect and imperfect
markets, market failure and cost-benefit analysis.
Learning Outcome 3: Economic Pursuits
The learner is able to demonstrate knowledge, understanding and critical awareness of the policies and practices underpinning the improvement of the standard of living.
All learners should understand the need for reconstruction, growth and development in South Africa. The
inequalities of the past, specifically issues relating to wealth and poverty, are essential in understanding policies
and actions that improve the welfare of all South Africans. Learners should identify and critically analyse the
practices, values and attitudes that promote or impede the achievement of these goals.
This Learning Outcome focuses on actions, processes and structures that advance sustainable reconstruction
and development of the national economy, while taking into account the dynamics of the global economy.
By the end of Grade 10, learners who have achieved the minimum competences for this Learning Outcome
are able to demonstrate knowledge and understanding of development in general and in South Africa,
money and banking in an historical context, and the composition of the South African population and
labour force.
By the end of Grade 11, learners who have achieved the minimum competences for this Learning Outcome
are able to demonstrate knowledge, comprehension and synthesis of the wealth creation process,
characteristics of developing countries, the South African monetary system and South Africa's role in
Africa.
By the end of Grade 12, learners who have achieved the minimum competences for this Learning Outcome
are able to demonstrate comprehension, analysis and evaluation of South Africa's growth, development and
international trade policies, as well as economic and social performance indicators.
Learning Outcome 4: Contemporary Economic Issues
The learner is able to demonstrate knowledge, understanding and critical awareness, and apply a range of skills in dealing with contemporary economic issues.
This Learning Outcome deals with national and global issues such as labour, post-apartheid redress, poverty,
globalisation, environmental deterioration, resource exploitation, inflation, international agreements and the
economics of tourism.
By the end of Grade 10, learners who have achieved the minimum competences for this Learning Outcome
are able to demonstrate knowledge and comprehension of the contemporary issues of unemployment,
labour relations and redress.
By the end of Grade 11, learners who have achieved the minimum competences for this Learning Outcome
are able to demonstrate knowledge, comprehension, and analysis of the contemporary issues of poverty,
globalisation and environmental deterioration.
By the end of Grade 12, learners who have achieved the minimum competences for this Learning Outcome
are able to demonstrate analysis and evaluation of the contemporary issues of inflation, tourism and
environmental sustainability.
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