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Economic and management sciences

Grade 8

The economic cycle

Module 2

Trade and the economic problem

Assessment standard 1.2:

Trade and the economic problem

When you have completed this MODULE, YOU WILL BE ABLE TO INDICATE HOW TRADE (IMPORTS AND EXPORTS) ADDRESSES THE ECONOMIC PROBLEM (OF CHOICE AND OPPORTUNITY COST), AS WELL AS THE ROLE OF BANKS IN ENCOURAGING INVESTMENT IN THE ECONOMY.

THE CENTRAL PROBLEM OF THE ECONOMY:

The most basic feature of human existence is the MULTIPLICITY OF HUMAN NEEDS and the contrasting SHORTAGE OF MEANS to satisfy these needs. In spite of enormous technological and scientific progress over a number of decades, which has led to considerable increases in production, the NEEDS of people remain GREATER than the MEANS to satisfy those needs. As there will always be needs that remain unsatisfied, people will always have to EXERCISE CHOICES with regard to the needs that have to be satisfied and those that will have to remain unsatisfied. Compare your own situation regarding pocket money: your pocket money definitely does not allow you to buy everything that you want. Therefore you continually have to CHOOSE between satisfying your needs or your desires (wants).

In the same way, the businessman, government and every private individual have to exercise a multiplicity of choices every day to ensure that THE GREATEST DEGREE OF SATISFACTION is achieved.

Activity 1

NEEDS

SELF:

Compile a list of things that you experience as a need at present and that you will also experience as such in the future:

Activity 2

CLASSIFICATION OF NEEDS

GROUP:

Compare the lists of needs of the different learners in the group and classify them under the following headings:

Natural

Essential

Luxury

Protection

Cultural

Spiritual

GROUP:

Identify the FOUR/FIVE most basic needs of people from the above – i.e. things without which people would not be able to exist (provide examples of each):

It is evident from the above that people / enterprises are unable to satisfy all their needs. If one need is satisfied, it means that another need might have to remain unsatisfied or be sacrificed. The SACRIFICE THAT IS MADE illustrates the principle of OPPORTUNITY COST. It reflects the sacrifice that you had to make to satisfy your greatest need; the usefulness in comparison with the satisfaction that you would have had if you had chosen to satisfy the other need. In economic terms, the satisfaction of need/usefulness that is derived from a product, is know as the utility that is derived from the particular product that was selected. The utility (or cost) of the satisfaction of your need is therefore equal to the utility (or cost) of the product that you have sacrificed. This is known as OPPORTUNITY COST.

Activity 3

OPPORTUNITY COST

SELF:

Indicate which of the products listed below you as a learner would choose if you were given a single opportunity to select one of them in each instance. (This means that you have to

decide which of the products you would choose and which you would manage without at this particular time in your life with your current needs.)

Questions & Answers

what is variations in raman spectra for nanomaterials
Jyoti Reply
I only see partial conversation and what's the question here!
Crow Reply
what about nanotechnology for water purification
RAW Reply
please someone correct me if I'm wrong but I think one can use nanoparticles, specially silver nanoparticles for water treatment.
Damian
yes that's correct
Professor
I think
Professor
what is the stm
Brian Reply
is there industrial application of fullrenes. What is the method to prepare fullrene on large scale.?
Rafiq
industrial application...? mmm I think on the medical side as drug carrier, but you should go deeper on your research, I may be wrong
Damian
How we are making nano material?
LITNING Reply
what is a peer
LITNING Reply
What is meant by 'nano scale'?
LITNING Reply
What is STMs full form?
LITNING
scanning tunneling microscope
Sahil
how nano science is used for hydrophobicity
Santosh
Do u think that Graphene and Fullrene fiber can be used to make Air Plane body structure the lightest and strongest. Rafiq
Rafiq
what is differents between GO and RGO?
Mahi
what is simplest way to understand the applications of nano robots used to detect the cancer affected cell of human body.? How this robot is carried to required site of body cell.? what will be the carrier material and how can be detected that correct delivery of drug is done Rafiq
Rafiq
if virus is killing to make ARTIFICIAL DNA OF GRAPHENE FOR KILLED THE VIRUS .THIS IS OUR ASSUMPTION
Anam
analytical skills graphene is prepared to kill any type viruses .
Anam
what is Nano technology ?
Bob Reply
write examples of Nano molecule?
Bob
The nanotechnology is as new science, to scale nanometric
brayan
nanotechnology is the study, desing, synthesis, manipulation and application of materials and functional systems through control of matter at nanoscale
Damian
Is there any normative that regulates the use of silver nanoparticles?
Damian Reply
what king of growth are you checking .?
Renato
What fields keep nano created devices from performing or assimulating ? Magnetic fields ? Are do they assimilate ?
Stoney Reply
why we need to study biomolecules, molecular biology in nanotechnology?
Adin Reply
?
Kyle
yes I'm doing my masters in nanotechnology, we are being studying all these domains as well..
Adin
why?
Adin
what school?
Kyle
biomolecules are e building blocks of every organics and inorganic materials.
Joe
anyone know any internet site where one can find nanotechnology papers?
Damian Reply
research.net
kanaga
sciencedirect big data base
Ernesto
Introduction about quantum dots in nanotechnology
Praveena Reply
what does nano mean?
Anassong Reply
nano basically means 10^(-9). nanometer is a unit to measure length.
Bharti
do you think it's worthwhile in the long term to study the effects and possibilities of nanotechnology on viral treatment?
Damian Reply
absolutely yes
Daniel
how did you get the value of 2000N.What calculations are needed to arrive at it
Smarajit Reply
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Source:  OpenStax, Economic and management sciences grade 8. OpenStax CNX. Sep 11, 2009 Download for free at http://cnx.org/content/col11040/1.1
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