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Economic and management sciences

Grade 9

Sustainable growth and development

Module 10

Savings and investment

If the savings of individual people and of investors are made available for the expansion of the production capacity, the idea is to produce more goods and services. This also has the effect that people are employed, which, in turn, leads to improvement in the standard of living of the population. The savings are used for INVESTMENT in capital goods (like buildings, equipment and machinery for production).

When the volume of investments increases, the potential for further investment expands and this eventually increases the economy’s capacity for growth in terms of an increase in goods and services. This can help to improve the standard of living, provide more job opportunities and greater prosperity, which is indicative of improved economic growth.

When the volume of investments DEcreases, the potential for further investment decreases and this means that fewer goods and services will be available for satisfying needs, which will result in the eventual shrinking of possibilities for economic growth. Communities in which this happens will eventually become poorer and the possibility of further savings might be eliminated, with catastrophic results for investment and any capacity for economic growth, increasing poverty, unemployment, etc.

The above makes it clear that economic growth is a process by which a country’s capacity to provide goods and services increases in such a manner that there will be an increase in real compensation/remuneration. (Real compensation/remuneration signifies the compensation after changes in price rises have been calculated.) The increase signifies that the physical compensation or wealth of the population has improved, with an accompanying improvement in the standard of living and improved economic growth.

While ECONOMIC GROWTH has to do with an increase in the production capacity of the economy (i.e. the possibility to deliver more goods and services), ECONOMIC DEVELOPMENT signifies an increase in economic growth accompanying an improvement in the quality of life which relates to improved access to education, housing, and other basic infrastructure. Economic development therefore is a more comprehensive concept that includes economic growth.

Activity 1: economic growth and development

Provide your own explanation of the following:

  • SAVING is:
  • ECONOMIC GROWTH is achieved when:
  • ECONOMIC DEVELOPMENT therefore has to do with:
  • Assessment
Learning outcomes (Los)
LO 2
SUSTAINABLE GROWTH AND DEVELOPMENT The learner will be able to demonstrate an understanding of sustainable growth, reconstruction and development, and to reflect on related processes.
Assessment standards (ASs)
We know this when the learner:
2.1 discusses how the national budget, regional and international agreements can be used to facilitate sustainable growth and development;
2.2 investigates and debates the successes and shortcomings of the RDP;
2.3 explains the role of savings and investments in economic prosperity and growth;
2.4 discusses productivity and growth and its effects on economic prosperity, growth and global competition.



The learner has to complete the following (in her or his own words):

SAVING is the postponement of satisfying personal needs.

INVESTMENT is capital that is invested to make production possible.

ECONOMIC GROWTH is achieved when the increase in the production of a country is larger than the increase in population, which means that the increase in the amount of available goods has created wealth.

ECONOMIC DEVELOPMENT therefore has to do with the fact that the greater prosperity made possible by economic growth has also improved the general quality of the lives of the population, which involves improved access to education, water, housing, etc.

Questions & Answers

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Solve for the first variable in one of the equations, then substitute the result into the other equation. Point For: (6111,4111,−411)(6111,4111,-411) Equation Form: x=6111,y=4111,z=−411x=6111,y=4111,z=-411
x=61/11 y=41/11 z=−4/11 x=61/11 y=41/11 z=-4/11
Need help solving this problem (2/7)^-2
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An investment account was opened with an initial deposit of $9,600 and earns 7.4% interest, compounded continuously. How much will the account be worth after 15 years?
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lim x to infinity e^1-e^-1/log(1+x)
given eccentricity and a point find the equiation
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A soccer field is a rectangle 130 meters wide and 110 meters long. The coach asks players to run from one corner to the other corner diagonally across. What is that distance, to the nearest tenths place.
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Jeannette has $5 and $10 bills in her wallet. The number of fives is three more than six times the number of tens. Let t represent the number of tens. Write an expression for the number of fives.
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Need to simplify the expresin. 3/7 (x+y)-1/7 (x-1)=
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. After 3 months on a diet, Lisa had lost 12% of her original weight. She lost 21 pounds. What was Lisa's original weight?
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Source:  OpenStax, Economic and management sciences grade 9. OpenStax CNX. Sep 15, 2009 Download for free at http://cnx.org/content/col11074/1.1
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