1. Mohr & Fourie: Chapter / Hoofstuk 3
Economics is the art of making the most out of life
– GB Shaw
2. Outcomes of 3.1-3.4 Uitkomstes van 3.1-3.4
Explain and illustrate the 3 flows in the Verduidelik en illustreer 3 vloeie in die
economy ekonomie
Differentiate between stock and flow Onderskei tussen voorraad- en
vloeiveranderlikes
variables
Onderskei tussen firmas en
Differentiate between firms and
huishoudings
households Hoe is hulle aktiwiteite verbind (illustreer
How are their activities linked (illustrate en verduidelik)?
and explain)? Definieer 2 tipes markte
Define 2 types of markets Beskryf owerheidsektor, en
Describe government sector and wisselwerking tussen owerheid,
interaction between government, huishoudings en firmas (illustreer en
households and firms (illustrate and verduidelik)
explain) Begroting
Budget Verduidelik en illustreer wisselwerking
tussen buitelandse sektor en
Explain and illustrate the interaction
binnelandse ekonomie
between foreign sector and domestic
economy
4. Introduction Inleiding
Markets: Markte:
Goods and services Goedere en dienste
Factors of production Produksiefaktore
Interdependence Onderlinge
afhanklikheid
5. 3.1 3.1
Production Produksie
Firms produce goods creates Firmas produseer goedere en
income to PF skep inkome vir PF
Income Inkome
Income is spent it on goods & Inkome word bestee op
services goedere & dienste
Expenditure Besteding
Expenditure on goods and Besteding op goedere en
services → income for firms, dienste → inkomste vir firmas,
which can produce goods again wat dan goedere kan produseer
6. 3 main flows 3 hoofvloeie
These 3 combine Die 3 vloeie verbind
economic activity. ekonomiese aktiwiteit.
TP = TE = TI TP = TB = TI
7. 3.1 3.1
There are 3 main flows that Daar is 3 hoofvloeie wat
link economic activity, what ekonomiese aktiwiteit
are flows? verbind, maar wat is vloeie?
Flow – measured over time Vloei – oor tydperk gemeet
Voorbeeld?
period
Example?
Voorraad – op tydstip gemeet
Stock – measured on moment Voorbeeld?
Example?
8. 3.1 3.1
Apart from production, income Buiten produksie, Wat en
2.4… inkome
and expenditure, the other besteding, is‘n mark?
is ruil die ander
Mark vir
economic activity that links the ekonomiese aktiwiteit wat
G+D
various sectors is exchange sektore aan mekaar verbind
Exchange vir
Mark occurs in 2 markets:
Ruil vind plaas in 2 markte:
Goods market
Produksiefaktor Goederemark
e
Definition? Definisie?
Factor market Faktormark
Definition? Definisie?
3.2 → interdependence of 3.2 → onderlinge afhanklikheid
participants van deelnemers
9. 3.2 3.2
Households
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
10. 3.1 3.2
Firms
Definition?
Producers
What is the role of firms in the
economy?
Income
Expenditure
Summary p. 46
Abbreviation: I
TB = C + I + G + X - Z
11. 3.2 3.2
2 markets? 2 markte?
Combine firms, households Kombineer firmas,
and 2 markets = interaction huishoudings en 2 markte =
Goods and services circular wisselwerking
flow Goedere-en-
Start with households... dienstekringloop
Income and expenditure Begin by huishoudings...
circular flow Inkome- en-
Start with firms, opposite bestedingskringloop
direction! Begin by firmas,
teenoorgestelde rigting!
12.
13.
14. 3.3 3.3
Government Owerheid
Definition Definisie
Primary function? Primêre funksie?
What is the role of government Wat is die rol van die owerheid
in the economy? in die ekonomie?
Income (T) Inkomste (T)
Expenditure (G) Besteding (G)
Transfer payments Oordragbetalings
15. 3.3 3.3
Government Owerheid
Leakage Lekkasie
Withdrawal from the income flow Ontrekking uit inkome kringloop
T T
Injection Inspuiting
Adds in the income flow Toevoeging in inkome kringloop
G G
Abbreviation: G Afkorting: G
TB = C + I + G + X - Z TB = C + I + G + X - Z
16.
17. 3.4 3.4
Foreign sector Buitelandse sektor
Definition? Definisie?
SA is an open economy SA is ʼn oop ekonomie
Transactions recorded in the Transaksies aangeteken in
balance of payments betalingsbalans
Box 3-4 Raam 3-4
Classifications Klassifikasies
Developed (industrialised) and Ontwikkelde (nywerheidslande) en
developing countries ontwikkelende lande
World Bank income groups Wêreldbank inkomstegroepe
18. High income (blue); Upper-middle income (green);
Lower-middle income (purple); Low income (red)
19. 3.4 3.4
Foreign sector Buitelandse sektor
How does the foreign sector Hoe neem die buitelandse
take part in the circular flow? sektor aan die kringloop deel?
Export (X) and Import (Z) Uitvoer (X) en Invoer (Z)
Leakage? Lekkasie?
Withdrawal from the income flow Ontrekking uit inkome kringloop
Z Z
Injection? Inspuiting?
Adds to the income flow Toevoeging in inkome kringloop
X X
Abbreviation: X – Z Afkorting: X – Z
Y=C+I+G+X-Z Y=C+I+G+X-Z
20.
21.
22. Homework Huiswerk
Draw the income and spending Teken die inkomste-en-
circular flow AND the goods and bestedingskringloop EN die
services circular flow in ONE goedere-en-dienstekringloop in
illustration EEN illustrasie
Clearly show the direction of the Dui duidelik die rigting van die vloeie
flows. aan.
Question 1, 2 & 4 in textbook Vraag 1, 2 & 4 in handboek
23. Next session Volgende sessie
Sections 3.5 and 3.6 Afdelings 3.5 en 3.6
REMEMBER TO SUMMARISE ONTHOU OM JOU WERK
YOUR WORK USING THE VANUIT DIE HANDBOEK OP
TEXT BOOK! TE SOM!
24. Budget 2012 Begroting 2012
Who is our Minister of Finance? Wie is ons Minister van
Highlights from the budget: Finansies?
Economic growth Hoogtepunte vanuit die
Focus on employment creation begroting:
Individuals Ekonomiese groei
Alcohol, cigarettes... Fokus op werkskepping
Petrol levy Individue
Infrastructure Drank, sigarette...
Roads, public transport Brandstofheffing
Protection of the environment Infrastruktuur
Paaie, openbare vervoer
Omgewingsbeskerming