A complete summary of the content of Economic and Management Science Grade 9, which meets the requirements as set out in the CAPS / CAPS curriculum. Colorful side notes have been added to enhance the learning experience.
, ECONOMIC SYSTEMS
WHAT IS ECONOMICS? ECONOMIC PROBLEM
social science that examines how individuals, households, and firms satisfy SCARCITY PROBLEM
their unlimited needs and desires with limited and scarce resources >
environment in which consumers and producers seek to solve the to satisfy the unlimited wants and needs of society with the use of
economic problem limited resources
→ People only have a limited amount of money BUT many needs and
desires to satisfy
→ The government also has a limited amount of money and cannot
NEEDS WANTS satisfy all its desires
= goods and services ESSENTIAL for = human desires for goods and services
basic survival ECONOMIC SYSTEM [3 CENTRAL QUESTIONS]
Z fancy technology
Z Housing & Safety Z trendy clothes/attire 1. OUTPUT QUESTION
Z Food Z Treats (food and gifts)
Z Water → WHAT GOODS AND SERVICES WILL BE PRODUCED
AND IN WHAT QUANTITIES?
WHAT IS AN ECONOMIC
DEMAND SYSTEM/SYSTEM? 2. INPUT/INPUT QUESTION
= occurs when consumers are able and willing system used by the government of a
→ HOW will each of the goods and services be
to buy a product at a certain price country to solve the country's economic produced?
problem → HOW MANY of the scarce resources will be used in
= desires become real demand
determine : -PUBLIC AND PRIVATE BUSINESSES the production of each good
BUSINESS→STATE OWNED GOVERNMENT → NOT ACTIVELY INVOLVED
STATE→ GET PROFIT & PROVIDE SERVICES GOVERNMENT → GOODS AND SERVICES
(GOVERNMENT CONTROLLED ECONOMY) (ECONOMIC DECISION IS MADE BY INDIVIDUALS)
Features of centrally planned economy: -an economic system in which economic decisions are made by private
individuals who own the factors of production
→ Government controls the factors of production (STATE)
Features of market economy:
→ Government decides what goods and services are produced
→ Private individuals own and control the factors of production
→ Government decides how these goods and services are produced
→ Entrepreneurs decide what to produce
→ Government decides who will be the consumers of these goods and
services → Entrepreneurs decide how the production will take place
→ Individuals decide what goods and services will be used.
, MIXED ECONOMY [SOUTH AFRICA] GLOBALISATION
Trend towards greater economic integration and cooperation between
= mixture of private and state control over the economy different countries
Features of the mixed economy:
GLOBAL ECONOMY
→ Capital derived from banks, shares, and government [expended tax
revenue]
GLOBALISATION OF PRODUCTION MARKETS,
→ Entrepreneurs decide WHAT to produce
FINANCE, COMMUNICATIONS AND THE WORK
→ Government spends money on public services
→ Government implements legislation to control economic activity FORCES
[e.g., Affirmative action in SA]
(ECONOMY OF THE WORLD)
Features of global economy:
→ Free Trade in Goods and Services
ADVANTAGES DISADVANTAGES → Free movement of labour
→ Combination of state and → Limiting economic growth
→ Free movement of capital
private enterprises = good → Major GOVERNMENT involvement
economic growth in the economy [government
→ Government = promote bureaucratic and susceptible to
equilibrium growth of the
economy [income more equally
corruption]
ADVANTAGES DISADVANTAGES
than in market economy] FREE TRADE = EXPORTS AND IMPORTS ↑ WHICH CAUSES: → Unfair competition and more
→ Private businesses are urged to → Competition between producers ↑ + prices for consumers ↓. beneficial for developed countries
→ greater range of goods and services → Exploitation of workers due to
contribute to the welfare of
→ Expanding export markets for domestic manufacturers = being able to sell more goods +
citizens earning more revenue
investors paying low wages
→ Competition is promoted [+ THE FREE MOVEMENT OF LABOUR: → Outflow of skills due to skilled
protect citizens] → opportunity to increase income + standard of living ↑ > best jobs t labour leaving the country in
→ ↓ unemployment figure in underdeveloped areas + distribution of skills and knowledge search of high wages
between countries.
THE FREE MOVEMENT OF CAPITAL
→ Stimulate investment in poor countries
→ Lead to job creation and economic growth
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller notedx19. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.15. You're not tied to anything after your purchase.
