Lecture on Economics: Overview of Mind the Gap Study Guide

Publishing Details

• Title: Economics Grade 12 Study Guide
• Published by: Department of Basic Education, 2014
• License: Creative Commons Attribution NonCommercial Sharealike
• Contact: Dr Patricia Watson

Foreword by Minister Matsie Angelina Motshekga

• Second edition of Mind the Gap series for Grade 12 is aligned with CAPS 2014.
• Aimed at improving performance in National Senior Certificate (NSC) exam.
• Study guides provide explanations of key terminology and exam question types.
• Emphasizes on no learner being left behind.

Study Guide Contents

• Chapters cover topics such as Circular Flow Model, Business Cycles, Public Sector Role, Foreign Exchange, Protectionism, Market Dynamics, Market Failures, Economic Growth, Industrial Policies, Economic Indicators, Inflation, Tourism, and Environmental Sustainability.
• Study Skills include study tips, mobile notes, mnemonics, and mind maps.
• Exam Preparation: Format of the exam, key verbs, and checklist provided.

Detailed Chapter Overview

Chapter 1: Circular Flow Model

• Concepts: Circular flow model, national account aggregates, multiplier.
• Equilibrium: Economic balance when leakages equal injections.

Chapter 2: Business Cycles

• Focus: Composition, features, government policy interventions.
• Forecasting: Indicators like leading, coincident, and lagging indicators.

Chapter 3: Role of the Public Sector

• Necessity: Public goods, conserving resources, economic management.
• Challenges: Accountability, efficiency, pricing, and privatization issues.

Chapter 4: Foreign Exchange Market

• Trade: Reasons for international trade, balance of payments.
• Exchange Rates: Systems and market interventions.

Chapter 5: Protectionism and Free Trade

• Evaluation: South Africa's trade policies, export promotion, import substitution.

Chapter 6: Perfect Markets

• Characteristics: Large number of participants, no price control, economic profit.

Chapter 7: Imperfect Markets

• Types: Monopolies, oligopolies, monopolistic competition.

Chapter 8: Market Failures

• Causes: Externalities, public goods, lack of info.
• Consequences: Inefficiencies, government interventions.

Chapter 9: Economic Growth and Development

• Approaches: Demand-side vs supply-side policies.
• Policies: RDP, GEAR, ASGISA, and NGP.

Chapter 10: Industrial Policies

• Strategies: NIPF, IPAP, regional development.

Exam Preparation

• Format: Two 1-hour papers, compulsory question, and choice questions.
• Skills: Emphasis on understanding, applying, and analyzing concepts.
• Advice: Regular revision and practice with past papers.

Additional Resources

• Mind Maps: Visual aids included for complex concepts.
• Mobile Notes: Tips for efficient study habits.

This study guide is designed to bridge the gap in understanding of key concepts for Grade 12 Economics students in preparation for their final examinations.