Resume
EKN120 Summary Notes (Ch11 - Ch15)
- Cours
- Établissement
An in depth and detailed summary of the relevant chapters and content covered in EKN120.
[Montrer plus]
Vendeur
S'abonner
MrMahan
Aperçu du contenu
EKN 120 - NotesChapter 11 - The South African economy, Circular flows and economic
limitations
Role players in the economy
Households - a household may consist of a single person a family or a group of people who live
together, depend on a common income and, within the limits of that income, exercise their choices with
a view to meeting their economic objectives.
The business population
The business population constitutes the second major component of the private sector.
Functional distribution of income - the manner in which national income is divided among the functions
performed to earn it (or the kinds of resources provided to earn it); the division of national income into
wages and salaries, proprietors' income, corporate profits, interest and rent.
Personal consumption expenditure
Durable-good- a consumer good with an expected life of three or more years.
Semi-durable goods- semi durable goods include goods such as clothing, footwear with a longer lifespan
than non-durable goods.
Non-durable good- a consumer good with an expected life of less than three years.
Distinction between firm plant and industry
• Plant- physical establishment
• Firm- business organisations that own plants
• Industry- a group of firms
Legal forms of business
1- a sole proprietorship
2- a partnership
3- a private or public company
Advantages of companies:
- limited liability
- unlimited continuity
The principal-agent problem:
A conflict of interest that occurs when agents (workers or managers) pursue their own objectives to the
detriment of the principals’ (stockholders’) goals.
,EKN 120 - Notes
The government's role:
• Provide legal structure
• Public goods and services
• Private goods (rivalry and excludability)
• Public goods (non-rivalry and non-excludability)
• Quasi-public goods (e.g. education)
• the reallocation process through taxation
role of the foreign sector
• Include all role players
• Open economy
• International trade
Circular flow of the economy
,EKN 120 - Notes
Society's economising problem
Society has a limited or scarce economic resources, meaning all natural, human, and manufactured
resources that go into the production of goods and services.
Resource categories (factors of production):
- Land
- Labour
- Capital
- Entrepreneurial ability
The importance of entrepreneurs:
• Entrepreneurs take the initiative in combining resources to produce a good or service
• Entrepreneurs make the strategic business decisions that set the course of an enterprise
• Entrepreneurs innovate
• Entrepreneurs bear risk
Production possibilities model assumptions:
• Full employment
• Fixed resources
• Fix technology
• two goods
Production possibilities table: Production possibilities graph:
, EKN 120 - Notes
Optimal Allocation of resources (MB = MC):
Chapter 12 – Measuring Domestic Output and National Income
national income accounting - The techniques used to measure the overall production of the economy
and other related variables for the nation as a whole.
Purpose of National Income Accounting:
• Assess the health of the economy by comparing levels of production at regular intervals.
• Track the long-run course of the economy to see whether it has grown, been constant, or
declined.
• Formulate policies that will safeguard and improve the economy’s health.
Gross Domestic Product (GDP) - The total market value of all final goods and services produced in a
given year within the borders of the country (Citizen-supplied or foreign-supplied resources employed
WITHIN the country).
Gross National Income (GNI) - The total market value of all final goods and services produced in a given
year by the residents or registered business from a particular country anywhere in the world.
It is ownership-based and includes also what is earned abroad and repatriated by residents.
Les avantages d'acheter des résumés chez Stuvia:
Qualité garantie par les avis des clients
Les clients de Stuvia ont évalués plus de 700 000 résumés. C'est comme ça que vous savez que vous achetez les meilleurs documents.
L’achat facile et rapide
Vous pouvez payer rapidement avec iDeal, carte de crédit ou Stuvia-crédit pour les résumés. Il n'y a pas d'adhésion nécessaire.
Focus sur l’essentiel
Vos camarades écrivent eux-mêmes les notes d’étude, c’est pourquoi les documents sont toujours fiables et à jour. Cela garantit que vous arrivez rapidement au coeur du matériel.
Foire aux questions
Qu'est-ce que j'obtiens en achetant ce document ?
Vous obtenez un PDF, disponible immédiatement après votre achat. Le document acheté est accessible à tout moment, n'importe où et indéfiniment via votre profil.
Garantie de remboursement : comment ça marche ?
Notre garantie de satisfaction garantit que vous trouverez toujours un document d'étude qui vous convient. Vous remplissez un formulaire et notre équipe du service client s'occupe du reste.
Auprès de qui est-ce que j'achète ce résumé ?
Stuvia est une place de marché. Alors, vous n'achetez donc pas ce document chez nous, mais auprès du vendeur MrMahan. Stuvia facilite les paiements au vendeur.
Est-ce que j'aurai un abonnement?
Non, vous n'achetez ce résumé que pour €5,34. Vous n'êtes lié à rien après votre achat.
Peut-on faire confiance à Stuvia ?
4.6 étoiles sur Google & Trustpilot (+1000 avis)
77858 résumés ont été vendus ces 30 derniers jours
Fondée en 2010, la référence pour acheter des résumés depuis déjà 14 ans