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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:
  • INVESTMENT 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.

Memorandum

ACTIVITY 1: ECONOMIC GROWTH AND DEVELOPMENT

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

how do I set up the problem?
Harshika Reply
what is a solution set?
Harshika
find the subring of gaussian integers?
Rofiqul
hello, I am happy to help!
Shirley Reply
please can go further on polynomials quadratic
Abdullahi
hi mam
Mark
I need quadratic equation link to Alpa Beta
Abdullahi Reply
find the value of 2x=32
Felix Reply
divide by 2 on each side of the equal sign to solve for x
corri
X=16
Michael
Want to review on complex number 1.What are complex number 2.How to solve complex number problems.
Beyan
yes i wantt to review
Mark
use the y -intercept and slope to sketch the graph of the equation y=6x
Only Reply
how do we prove the quadratic formular
Seidu Reply
please help me prove quadratic formula
Darius
hello, if you have a question about Algebra 2. I may be able to help. I am an Algebra 2 Teacher
Shirley Reply
thank you help me with how to prove the quadratic equation
Seidu
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Opoku
what is math number
Tric Reply
4
Trista
x-2y+3z=-3 2x-y+z=7 -x+3y-z=6
Sidiki Reply
can you teacch how to solve that🙏
Mark
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
Brenna
(61/11,41/11,−4/11)
Brenna
x=61/11 y=41/11 z=−4/11 x=61/11 y=41/11 z=-4/11
Brenna
Need help solving this problem (2/7)^-2
Simone Reply
x+2y-z=7
Sidiki
what is the coefficient of -4×
Mehri Reply
-1
Shedrak
the operation * is x * y =x + y/ 1+(x × y) show if the operation is commutative if x × y is not equal to -1
Alfred Reply
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?
Kala Reply
lim x to infinity e^1-e^-1/log(1+x)
given eccentricity and a point find the equiation
Moses Reply
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.
Kimberly Reply
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.
August Reply
What is the expressiin for seven less than four times the number of nickels
Leonardo Reply
How do i figure this problem out.
how do you translate this in Algebraic Expressions
linda Reply
why surface tension is zero at critical temperature
Shanjida
I think if critical temperature denote high temperature then a liquid stats boils that time the water stats to evaporate so some moles of h2o to up and due to high temp the bonding break they have low density so it can be a reason
s.
Need to simplify the expresin. 3/7 (x+y)-1/7 (x-1)=
Crystal Reply
. After 3 months on a diet, Lisa had lost 12% of her original weight. She lost 21 pounds. What was Lisa's original weight?
Chris Reply
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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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