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Here are the slides used in the contact sessions and voice-over PPT lecture video's. Watch the video on YouTube and then use your textbook to supplement the slides to make your own set of notes. …

Here are the slides used in the contact sessions and voice-over PPT lecture video's. Watch the video on YouTube and then use your textbook to supplement the slides to make your own set of notes.
The second part of Chapter 2 deals with the question of HOW to produce.

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Transcript

  • 1. ECONOMICS FOR SOUTH AFRICAN STUDENTS CHAPTER 2: THE ECONOMIC PROBLEM PART 2: HOW TO PRODUCE? ECON-1
  • 2. ECONOMIC PROBLEM? When you consider the economic problem: • Scarcity • Choice • Opportunity cost It leads to 3 important questions: • WHAT to produce? • HOW to produce? • For WHOM to produce? Economic systems determine how society will answer these questions.
  • 3. HOW TO PRODUCE… Use the factors of production CLNE – Capital, Labour, Natural resources, Entrepreneurship Can be classified in different ways: • Primary vs secondary factors of production • Human resources vs. non-human
  • 4. HOW TO PRODUCE… LABOUR Description Quantity Quality  Box 2-1: Division of labour and specialisation NATURAL RESOURCES Examples Finite, non-renewable Quality is also NB. CAPITAL Manufactured resources Association with finance? ENTREPRENEURSHIP Combines the factors More than a manager
  • 5. HOW TO PRODUCE… Technology • When new knowledge is applied in the production process. • Part of capital and entrepreneurship. Why isn't money a factor of production? • Money can be used in exchange for goods and services, it does not make goods and services!
  • 6. HOW TO PRODUCE… The choice of method: • Labour intensive • Capital intensive
  • 7. DID WE ACHIEVE THE OUTCOMES? Can you name and describe the four factors of production? Can you describe the division of labour and specialisation? Can you explain the role of technology? Can you explain why money is not a factor of production? Can you decsribe two types of production methods and say when which one should be used? Chapter 2 in Mohr & Fourie eFundi Answer the questions on Quiz Follow @ekonoom