This document provides an overview of key concepts in economics. It discusses how economics examines how people make use of limited resources to obtain what they want. It also outlines the main participants in an economy - households, businesses, government, and other countries. It then describes the main objects of economic study - consumer goods, capital goods, and factors of production. The document emphasizes that the most important thing to learn is how people enhance their lives through economic interactions and trade. Students will gain knowledge and values by participating in simulated economic activities and projects.

1. Assessment: milestone 02
1. Summary
Economics looks at how people try to make use of limited resources to get what they
want. Resources include money, time, and things (like shoes, clothes, toys, etc.). People
want different resources than the ones they have, so they will trade resources for other
resources. Most resources are limited. This is called scarcity. Because things are scarce,
people have to make choices about how to spend their resources on the different
resources they want. The study of this behavior can quickly become very complicated
because there are many people, and each person's choices affect the choices that other
people make.
The subjects in economic study are households, business companies, the government (the
state), and foreign countries. Households offer their "factors of production" to companies.
This includes work, land, capital (machines, buildings) and information. They get income
which they use to buy or 'consume' goods. Business companies produce and sell goods
and buy factors of production from households and from other companies. The state
includes institutions and organisations. The state takes some of the earnings from the
business companies and households, and uses it to pay for "public goods" like streets or
university education, to be available for everyone. The last subject is foreign countries this
includes all households, business companies and state institutions, which are not based in
one's own country, they demand and supply goods from abroad.
The objects in economic study are consumer goods, capital goods, and factors of
production. Consumer goods are classified as "usage goods" (for example, toilet paper), as
"purpose goods" (for example, a car), and as "services" (for example, the work of a
cleaning lady). Capital goods are goods which are necessary for producing other goods.
Examples of these are buildings, equipment, and machines. Factors of production are
work, ground, capital, information, and environment.
The most important part to learn here is how people enhance their lives in the economic
world. The skills and values to be learnt is the mutual understanding of one another for
example, people manufacture goods and sell them and get money for survival. In other
words, we are learning about economic cycle. Learners will gain knowledge and values by
means of interacting in this economic cycle. For example, they might be given a project to
do, by means of selling small items. In this instance they will learn to trade, on how the
business world works. The negative attitude might be removes because of gaining

2. something from doing the project. Some learners may react because this might be tiring
and stressing, however, they need to be motivated to do the project, some might choose
to do marketing products like Tupperware, Avon, MTN, etc
2. Worksheet
2.1 Give one word from the statements bellow
A) The study of the role of the state in an economy
B) The major problem in economics
C) Building houses
D) Taxes, savings, and imports of a country
E) The money invest in a plant or machinery
(5)
2.2. Fill in the missing words
A) The statement in which an economist has given his/her opinion or value judgment, is
a…………………..
B) Mass production …………………..the cost of production.
C) The exclusive right to control and issue bank notes has been awarded to the
……………………
D) When goods are available but resources are not enough, this known as …………………….
E) The satisfaction that a consumer derives from the consumption of goods is known
as……………..
(5)
2.3 Name and discuss five branches of economic
(10)
TOTAL (20)