Hoofstuk+3.1 3.4 chapter+3.1-3.4

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Mohr & Fourie: Chapter / Hoofstuk 3 Economics is the art of making the most out of life – GB Shaw

Transcript of Hoofstuk+3.1 3.4 chapter+3.1-3.4

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Mohr & Fourie: Chapter / Hoofstuk 3

Economics is the art of making the most out of life

– GB Shaw

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Outcomes of 3.1-3.4

Explain and illustrate the 3 flows in the economy Differentiate between stock and flow

variables Differentiate between firms and

households How are their activities linked (illustrate

and explain)? Define 2 types of markets Describe government sector and

interaction between government, households and firms (illustrate and explain) Budget

Explain and illustrate the interaction between foreign sector and domestic economy

Uitkomstes van 3.1-3.4

Verduidelik en illustreer 3 vloeie in die ekonomie Onderskei tussen voorraad- en

vloeiveranderlikes Onderskei tussen firmas en

huishoudings Hoe is hulle aktiwiteite verbind (illustreer

en verduidelik)? Definieer 2 tipes markte Beskryf owerheidsektor, en

wisselwerking tussen owerheid, huishoudings en firmas (illustreer en verduidelik) Begroting

Verduidelik en illustreer wisselwerking tussen buitelandse sektor en binnelandse ekonomie

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Introduction Main participants:FirmsHouseholdsGovernmentForeign sectorFinancial sector

Inleiding

Hoofdeelnemers:FirmasHuishoudingsOwerheidBuitelandse sektorFinansiële sektor

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Introduction

Markets:Goods and servicesFactors of production

Interdependence

Inleiding

Markte:Goedere en diensteProduksiefaktore

Onderlinge afhanklikheid

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3.1ProductionFirms produce goods creates

income to PFIncome Income is spent it on goods &

servicesExpenditureExpenditure on goods and

services → income for firms, which can produce goods again

3.1ProduksieFirmas produseer goedere en

skep inkome vir PFInkome Inkome word bestee op

goedere & diensteBestedingBesteding op goedere en

dienste → inkomste vir firmas, wat dan goedere kan produseer

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3 main flows 3 hoofvloeie

Die 3 vloeie verbind ekonomiese aktiwiteit.

TP = TB = TI

These 3 combine economic activity.

TP = TE = TI

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3.1There are 3 main flows that

link economic activity, what are flows?

Flow – measured over time period Example?

Stock – measured on moment Example?

3.1

Daar is 3 hoofvloeie wat ekonomiese aktiwiteit verbind, maar wat is vloeie?

Vloei – oor tydperk gemeet Voorbeeld?

Voorraad – op tydstip gemeet Voorbeeld?

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3.1

Apart from production, income and expenditure, the other economic activity that links the various sectors is exchange

Exchange occurs in 2 markets:Goods market Definition?

Factor market Definition?

3.2 → interdependence of participants

3.1

Buiten produksie, inkome en besteding, is ruil die ander ekonomiese aktiwiteit wat sektore aan mekaar verbind

Ruil vind plaas in 2 markte:Goederemark Definisie?

Faktormark Definisie?

3.2 → onderlinge afhanklikheid van deelnemers

2.4… Wat is ‘n mark?

Mark vir G+D

Mark vir Produksiefaktor

e

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3.2Households Definition?

Consumers

What is the role of a household in the economy? Income Expenditure

Summary p. 44 Abbreviation: C

TB = C + I + G + X - Z

3.2

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3.1FirmsDefinition? Producers

What is the role of firms in the economy? Income Expenditure

Summary p. 46Abbreviation: I

TB = C + I + G + X - Z

3.2

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3.2

2 markets?Combine firms, households

and 2 markets = interaction Goods and services circular

flowStart with households...

Income and expenditure circular flow Start with firms, opposite

direction!

3.2

2 markte?Kombineer firmas,

huishoudings en 2 markte = wisselwerking Goedere-en-

dienstekringloopBegin by huishoudings...

Inkome- en-bestedingskringloop Begin by firmas,

teenoorgestelde rigting!

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3.3GovernmentDefinition

Primary function?

What is the role of government in the economy?

Income (T) Expenditure (G) Transfer payments

3.3OwerheidDefinisie

Primêre funksie?

Wat is die rol van die owerheid in die ekonomie?

Inkomste (T) Besteding (G) Oordragbetalings

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3.3

Government Leakage Withdrawal from the income flow T

Injection Adds in the income flow G

Abbreviation: G

TB = C + I + G + X - Z

3.3

Owerheid Lekkasie Ontrekking uit inkome kringloop T

Inspuiting Toevoeging in inkome kringloop G

Afkorting: G

TB = C + I + G + X - Z

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3.4

Foreign sectorDefinition?SA is an open economyTransactions recorded in the

balance of paymentsBox 3-4 Classifications

Developed (industrialised) and developing countries

World Bank income groups

3.4

Buitelandse sektorDefinisie?SA is ʼn oop ekonomieTransaksies aangeteken in

betalingsbalansRaam 3-4 Klassifikasies

Ontwikkelde (nywerheidslande) en ontwikkelende lande

Wêreldbank inkomstegroepe

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High income (blue); Upper-middle income (green); Lower-middle income (purple); Low income (red)

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3.4

Foreign sectorHow does the foreign sector

take part in the circular flow? Export (X) and Import (Z)

Leakage? Withdrawal from the income flow Z

Injection? Adds to the income flow X

Abbreviation: X – ZY = C + I + G + X - Z

3.4

Buitelandse sektorHoe neem die buitelandse

sektor aan die kringloop deel? Uitvoer (X) en Invoer (Z)

Lekkasie? Ontrekking uit inkome kringloop Z

Inspuiting? Toevoeging in inkome kringloop X

Afkorting: X – ZY = C + I + G + X - Z

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Homework

Draw the income and spending circular flow AND the goods and services circular flow in ONE illustration Clearly show the direction of the

flows. Question 1, 2 & 4 in textbook

Huiswerk

Teken die inkomste-en-bestedingskringloop EN die goedere-en-dienstekringloop in EEN illustrasie Dui duidelik die rigting van die vloeie

aan. Vraag 1, 2 & 4 in handboek

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Next session

Sections 3.5 and 3.6

REMEMBER TO SUMMARISE YOUR WORK USING THE

TEXT BOOK!

Volgende sessie

Afdelings 3.5 en 3.6

ONTHOU OM JOU WERK VANUIT DIE HANDBOEK OP

TE SOM!

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Budget 2012

Who is our Minister of Finance?Highlights from the budget: Economic growth Focus on employment creation Individuals Alcohol, cigarettes... Petrol levy Infrastructure

Roads, public transport Protection of the environment

Begroting 2012

Wie is ons Minister van Finansies?

Hoogtepunte vanuit die begroting: Ekonomiese groei Fokus op werkskepping Individue Drank, sigarette... Brandstofheffing Infrastruktuur

Paaie, openbare vervoer Omgewingsbeskerming

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