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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 math number
Tric Reply
x-2y+3z=-3 2x-y+z=7 -x+3y-z=6
Sidiki Reply
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
12, 17, 22.... 25th term
Alexandra Reply
12, 17, 22.... 25th term
Akash
College algebra is really hard?
Shirleen Reply
Absolutely, for me. My problems with math started in First grade...involving a nun Sister Anastasia, bad vision, talking & getting expelled from Catholic school. When it comes to math I just can't focus and all I can hear is our family silverware banging and clanging on the pink Formica table.
Carole
I'm 13 and I understand it great
AJ
I am 1 year old but I can do it! 1+1=2 proof very hard for me though.
Atone
hi
Adu
Not really they are just easy concepts which can be understood if you have great basics. I am 14 I understood them easily.
Vedant
find the 15th term of the geometric sequince whose first is 18 and last term of 387
Jerwin Reply
I know this work
salma
The given of f(x=x-2. then what is the value of this f(3) 5f(x+1)
virgelyn Reply
hmm well what is the answer
Abhi
If f(x) = x-2 then, f(3) when 5f(x+1) 5((3-2)+1) 5(1+1) 5(2) 10
Augustine
how do they get the third part x = (32)5/4
kinnecy Reply
make 5/4 into a mixed number, make that a decimal, and then multiply 32 by the decimal 5/4 turns out to be
AJ
how
Sheref
can someone help me with some logarithmic and exponential equations.
Jeffrey Reply
sure. what is your question?
ninjadapaul
20/(×-6^2)
Salomon
okay, so you have 6 raised to the power of 2. what is that part of your answer
ninjadapaul
I don't understand what the A with approx sign and the boxed x mean
ninjadapaul
it think it's written 20/(X-6)^2 so it's 20 divided by X-6 squared
Salomon
I'm not sure why it wrote it the other way
Salomon
I got X =-6
Salomon
ok. so take the square root of both sides, now you have plus or minus the square root of 20= x-6
ninjadapaul
oops. ignore that.
ninjadapaul
so you not have an equal sign anywhere in the original equation?
ninjadapaul
hmm
Abhi
is it a question of log
Abhi
🤔.
Abhi
I rally confuse this number And equations too I need exactly help
salma
But this is not salma it's Faiza live in lousvile Ky I garbage this so I am going collage with JCTC that the of the collage thank you my friends
salma
Commplementary angles
Idrissa Reply
hello
Sherica
im all ears I need to learn
Sherica
right! what he said ⤴⤴⤴
Tamia
hii
Uday
hi
salma
hi
Ayuba
Hello
opoku
hi
Ali
greetings from Iran
Ali
salut. from Algeria
Bach
hi
Nharnhar
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 8. OpenStax CNX. Sep 11, 2009 Download for free at http://cnx.org/content/col11040/1.1
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