Lesson Notes By Weeks and Term v5 - Grade 7

Lesson Video

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Performance objectives

• Define key EMS terms like needs, wants, goods, and services.
• Explain the difference between needs and wants with South African examples.
• Construct a simple personal budget.
• Describe the three types of economic resources.
• Differentiate between profit and loss and perform simple calculations.

Lesson summary

This week in Economic and Management Sciences, we will be revising and consolidating all the major topics we've covered so far this year. This is important because EMS helps you understand how the economy works, how businesses operate, and how you can manage your own money effectively. Understanding these concepts is vital in South Africa, where financial literacy is crucial for navigating our diverse economy, starting businesses, and contributing to the country's growth. It prepares you for future careers, responsible citizenship, and informed decision-making. We will particularly focus on how different economic activities impact our local communities.

Lesson notes

2.1 Needs vs.

Wants: Needs: These are things you must have to survive. Examples include food, water, shelter, and clothing. Think of basic food like pap and vleis, or a safe place to sleep like a home in your community.

Wants: These are things you would like to have, but you don't need them to survive. Examples include the latest cell phone, designer clothes, going to the movies every week, or a fancy car. It's important to distinguish between needs and wants because you have limited resources (like money). You need to prioritize your needs before you can spend on your wants.

Example: A learner needs a school uniform and stationery for education. They want the newest brand of sneakers to wear to school. 2.2 Goods and Services: Goods: These are physical objects that can be touched and used. Examples include bread, books, cars, and computers. In South Africa, goods include mielie meal, biltong, and school uniforms.

Services: These are actions that someone performs for you. Examples include a doctor's visit, a haircut, transport (like a taxi ride), and education.

Example: Buying a loaf of bread (goods). Getting a haircut at a salon (service). 2.3 Economic Resources (Factors of Production): These are the resources used to produce goods and services.

There are three main types: Natural Resources: These are resources that come from nature. Examples include land, water, minerals (like gold and diamonds in South Africa), forests, and oil.

Example in South Africa:* Coal is a natural resource used to generate electricity.

Human Resources (Labour): This refers to the skills, knowledge, and effort that people contribute to production. Examples include teachers, doctors, factory workers, and entrepreneurs.

Example in South Africa:* A farmer using their skills to grow crops.

Capital Resources: These are man-made goods used to produce other goods and services. Examples include tools, machinery, buildings, and equipment.

Example in South Africa:* A tractor used on a farm, or computers in an office. 2.4 Income and Expenses: Income: Money earned from various sources. This could be from a job (salary), a business (profit), or investments (interest).

Example:* Pocket money from parents, salary from a part-time job.

Expenses: Money spent on goods and services.

Example:* Buying snacks, paying for transport, school fees. 2.5 Budgets: A budget is a plan for how you will spend your money. It helps you track your income and expenses, and make sure you are not spending more than you earn.

Example: Let's say Sindi gets R100 pocket money per month (income). She spends R40 on snacks, R30 on airtime, and saves R

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0. This is her budget.

Creating a Budget: Identify your income: List all sources of money you receive.

List your expenses: Categorize your spending (e.g., food, transport, entertainment).

Calculate total income and total expenses: Add up all income and all expenses. Determine if you have a surplus (savings) or deficit: If income is greater than expenses, you have a surplus (you are saving money). If expenses are greater than income, you have a deficit (you are spending more than you earn). 2.6 Profit and Loss: These terms are used in a business context.

Profit: The money a business makes after paying all its expenses. Profit = Revenue (Total sales) - Total Costs Loss: When a business spends more money than it earns. Loss = Total Costs - Revenue (Total Sales)

Example: A spaza shop sells sweets for R500 (revenue) and spent R300 on buying the sweets (cost). The profit is R500 - R300 = R

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0. If they only sold sweets for R200, the loss would be R300 - R200 = R

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0. Guided Practice (With Solutions)

Question 1: Identify whether each of the following is a need or a want: a) A school textbook b) A PlayStation 5 c)

Food d)

A smartphone Solution: a) Need b) Want c) Need d) Could be either. A basic phone for communication could be considered a need. A smartphone with advanced features is generally a want.

Commentary: Understand the difference between essential and non-essential.

Question 2: Nomusa earns R200 per month from her part-time job.

Her expenses are: R80 on airtime, R50 on snacks, and R40 on transport. a) Create a budget for Nomusa. b) Does Nomusa have a surplus or a deficit? How much is it?

Solution: a)

Nomusa's Budget: Income: R200 Expenses: Airtime: R80 Snacks: R50 Transport: R40 Total Expenses: R80 + R50 + R40 = R170 b)

Surplus/Deficit: Nomusa has a surplus because her income (R200) is greater than her expenses (R170). The surplus is R200 - R170 = R

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0. Commentary: This shows how to create a simple budget and calculate surplus/deficit.

Question 3: A farmer sells vegetables for R

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0. His costs (seeds, fertilizer, labour) are R

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0. Calculate the farmer's profit or loss.

Solution: Profit = Revenue - Costs Profit = R5000 - R3000 Profit = R2000 The farmer made a profit of R

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0. Commentary: Clear calculation showing profit calculation.