Grade 11 Term 4 Economics Core Notes

These flashcards cover key concepts related to poverty, inflation, and environmental sustainability as outlined in the lecture notes for Grade 11 Economics.

What is poverty?

A state or condition in which a person or community lacks the financial resources and essentials for a minimum standard of living.

What is the poverty line income?

The minimum income needed in a specific country to have an adequate standard of living and to cover all the basic needs.

What is absolute poverty?

A condition where a person or community cannot meet the basic needs for survival.

What is relative poverty?

A condition where a person or community lacks the minimum income needed to maintain the average standard of living in the society.

List three causes of poverty in South Africa.

1. Apartheid and Colonial Legacy, 2. High Unemployment, 3. Economic Inequality.

What are the consequences of poverty on health?

Impoverished communities face malnutrition, inadequate healthcare, and lack of clean water, leading to increased disease prevalence.

What is the cycle of poverty?

A structural cycle where poverty is passed down through generations due to lack of resources and opportunities.

Name one strategy to alleviate poverty.

Improve Education and Training to increase employment prospects.

What is consumer inflation?

An increase in prices over time that affects the purchasing power of consumers.

What is demand-pull inflation?

Inflation that occurs when demand for goods and services exceeds supply.

What is cost-push inflation?

Inflation that results from an increase in the cost of production, leading to higher prices.

Define hyperinflation.

An extremely high and typically accelerating inflation, often exceeding 50% per month.

What is stagflation?

A situation in which inflation and unemployment rates rise simultaneously.

State one major factor influencing inflation in South Africa.

Global Price Environment.

What is conservation?

The sustainable use and management of natural resources to ensure they are available for future generations.

What is preservation?

Methods taken to ensure that certain non-renewable resources are not threatened to extinction.

What is global warming?

The gradual and continual increase in the earth’s average temperature caused mainly by CO2 and pollutants trapped inside the atmosphere.