Gr 8-Economic and Management Sciences-Study Guide by Impaq

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ECONOMIC AND MANAGEMENT SCIENCES STUDY GUIDE Grade 8

A member of the FUTURELEARN group

Economic and Management Sciences Study guide

1808-E-EMS-SG01

Í2(È-E-EMS-SG01FÎ

Grade 8

CAPS aligned

S Loots B Pretorius

Study Guide G08 ~ Economic and Management Sciences

CONTENTS LESSON ELEMENTS ................................................................................................ 5 PREFACE .................................................................................................................. 7 YEAR PLAN .............................................................................................................. 9 UNIT 1 ...................................................................................................................... 11 Lesson 1: Revision ................................................................................................... 11 ACTIVITY 1.1 .................................................................................................... 15 Lesson 2: The Economy – Government ................................................................... 16 ACTIVITY 2.1 .................................................................................................... 18 ACTIVITY 2.2 .................................................................................................... 20 Lesson 3: The economy – National Budget.............................................................. 23 ACTIVITY 3.1 .................................................................................................... 26 ACTIVITY 3.2 .................................................................................................... 28 Lesson 4: The economy – Standard of living ........................................................... 32 ACTIVITY 4.1 .................................................................................................... 34 ACTIVITY 4.2 .................................................................................................... 35 ACTIVITY 4.3 .................................................................................................... 38 ACTIVITY 4.4 .................................................................................................... 40 ACTIVITY 4.5 .................................................................................................... 42 ACTIVITY 4.6 .................................................................................................... 44 Lesson 5: Financial Literacy – Accounting concepts ................................................ 44 ACTIVITY 5.1 .................................................................................................... 50 ACTIVITY 5.2 .................................................................................................... 50 ACTIVITY 5.3 .................................................................................................... 51 ACTIVITY 5.4 .................................................................................................... 52 ACTIVITY 5.5 .................................................................................................... 53 ACTIVITY 5.6 .................................................................................................... 54 ACTIVITY 5.7 .................................................................................................... 60 ACTIVITY 5.8 .................................................................................................... 60 Lesson 6: Financial literacy – Source documents .................................................... 62 ACTIVITY 6.1 .................................................................................................... 71 ACTIVITY 6.2 .................................................................................................... 74 ACTIVITY 6.3 .................................................................................................... 75 ACTIVITY 6.4 .................................................................................................... 76 EXERCISE 1 ..................................................................................................... 77

Study Guide G08 ~ Economic and Management Sciences

UNIT 2 ...................................................................................................................... 81 Lesson 7: Revision ................................................................................................... 81 ACTIVITY 7 ....................................................................................................... 84 Lesson 8: Financial literacy – Overview of the Accounting cycle ............................. 85 ACTIVITY 8.1 .................................................................................................... 88 Lesson 9: Financial literacy – Cash Receipt Journal (services) ............................... 88 ACTIVITY 9.1 .................................................................................................... 94 ACTIVITY 9.2 .................................................................................................... 94 ACTIVITY 9.3 .................................................................................................... 95 ACTIVITY 9.4 .................................................................................................... 96 ACTIVITY 9.5 .................................................................................................... 97 Lesson 10: Entrepreneurship – Factors of production .............................................. 99 ACTIVITY 10.1................................................................................................. 101 ACTIVITY 10.2................................................................................................. 104 ACTIVITY 10.3................................................................................................. 109 Lesson 11: The economy – Markets ...................................................................... 109 ACTIVITY 11.1................................................................................................. 112 EXERCISE 2 ................................................................................................... 112 Lesson 12: Revision for the June examination ....................................................... 114 UNIT 3 .................................................................................................................... 119 Lesson 13: Revision ............................................................................................... 119 ACTIVITY 13 ................................................................................................... 121 Lesson 14: Financial literacy – Cash Receipt Journal ........................................... 122 ACTIVITY 14.1................................................................................................. 123 ACTIVITY 14.2................................................................................................. 123 Lesson 15: Financial literacy – Cash Payment Journal .......................................... 125 ACTIVITY 15.1................................................................................................. 129 ACTIVITY 15.2................................................................................................. 129 ACTIVITY 15.3................................................................................................. 130 ACTIVITY 15.4................................................................................................. 131 ACTIVITY 15.5................................................................................................. 131 ACTIVITY 15.6................................................................................................. 132 ACTIVITY 15.7................................................................................................. 133 Lesson 16: Entrepreneurship – Forms of ownership .............................................. 134 ACTIVITY 16.1................................................................................................. 139 ACTIVITY 16.2................................................................................................. 143

Study Guide G08 ~ Economic and Management Sciences

EXERCISE 3 .................................................................................................. 147 UNIT 4 .................................................................................................................... 149 Lesson 17: Revision ............................................................................................... 149 ACTIVITY 17 ................................................................................................... 151 Lesson 18: Entrepreneurship – Levels and functions of management ................... 152 ACTIVITY 18.1................................................................................................. 157 ACTIVITY 18.2................................................................................................. 159 Lesson 19: Financial literacy – General Ledger and Trial Balance ........................ 160 ACTIVITY 19.1................................................................................................. 165 ACTIVITY 19.2................................................................................................. 171 ACTIVITY 19.3................................................................................................. 171 ACTIVITY 19.4................................................................................................. 174 ACTIVITY 19.5................................................................................................. 174 ACTIVITY 19.6................................................................................................. 174 ACTIVITY 19.7................................................................................................. 174 ACTIVITY 19.8................................................................................................. 177 ACTIVITY 19.9................................................................................................. 178 ACTIVITY 19.10............................................................................................... 180 ACTIVITY 19.11............................................................................................... 180 EXERCISE 4 ................................................................................................... 181 Lesson 20: Preparing for the examination .............................................................. 183 GLOSSARY ........................................................................................................... 191 BIBLIOGRAPHY AND REFERENCES.................................................................. 195

Study Guide G08 ~ Economic and Management Sciences

YEAR PLAN UNIT 1

TOPIC

STARTING DATE

1 Revision 2 The economy: Government 3 The economy: National Budget 4 The economy: Standard of living 5 Financial literacy: Accounting concepts 6 Financial literacy: Source documents

7 Revision 8 Financial literacy: Accounting cycle 9 Financial literacy: Cash Receipts Journal (service) 10 Entrepreneurship: Factors of production 11 The economy: Markets

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COMPLETION DATE

Study Guide G08 ~ Economic and Management Sciences

12 June examination 3

13 Revision 14 Financial literacy: Cash Receipts Journal (service) 15 Financial literacy: Cash Payments Journal (service) 16 Entrepreneurship: Forms of ownership

17 Revision 18 Entrepreneurship: Levels and functions of management 19 Financial literacy: General Ledger and Trial Balance (service) 20 Examination preparation 21 November examination

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Study Guide G08 ~ Economic and Management Sciences

Unit

UNIT 1 Lesson 1: Revision STUDY/REVISION: Read through the following segment to refresh your memory on what was discussed during Economic and Management Sciences in Grade 7. 1.1.1 The Economy The history of money: Money is so interwoven into our entire existence that one cannot imagine society without it. But there was a time when there was no money. Can you imagine what it must have been like living without money? There was a time when people applied trade, which meant that they exchanged goods instead

Source: www.pbs.org

of money. Trading has given way to payment methods because all commodities did not have the same value. The first forms of payment were coins and kauri shells. Needs and desires: 

Needs: Essential goods which we cannot survive without e.g.: food, water, shelter, etc.



Desires: Goods and services we can survive without e.g.: cellphones, expensive clothes and shoes. Source: www.123rf.com

Study Guide G08 ~ Economic and Management Sciences

Unit

Needs and desires affect the way societies work, live and spend money. People's needs and desires are unlimited but the resources needed to satisfy these needs and desires are limited. Goods and services: There are mainly four factors of production: labour, capital, natural resources and entrepreneurship. 

Labour: Refers to the work that people do.



Capital: Refers to money, as well as equipment, buildings and land that we call capital goods.



Natural resources: Resources that come from nature e.g.; water, soil, oil, etc.



Entrepreneurship: This is the entrepreneur's ability to combine and successfully use all three of the other factors of production in order to produce a final product or service for consumers.

Inequality and poverty: Poverty means that people do not have enough money to meet their basic needs. Factors that contribute to poverty are: 

Inequalities of the past.



Illiteracy and lack of education.



Economic conditions in the country.

The production proses: Productivity refers to the amount of goods and services that can be produced in a certain amount of time. 

The primary sector produces raw materials.

Study Guide G08 ~ Economic and Management Sciences

Unit



The secondary sector raw materials to produce goods.



The tertiary sector to provide the goods and services sold to consumers.

Goods and services are produced and supplied by suppliers for consumers. Consumers then buy and use these goods and services. 1.1.2 Entrepreneurship Businesses Businesses are the institutions that trade in goods or services and then supply it to consumers. There are three main forms of businesses, namely: 

Formal business – The business must register with government departments.



Informal businesses – No need to register with government departments.



Trading enterprise – Refers to the sale and purchase of goods and services.

Formal and informal businesses can be both producers and consumers in the economy. The entrepreneur An entrepreneur is a person who has the ability to turn an idea into a profitable business. An entrepreneur must have certain characteristics to be successful, namely: 

Expert in his/her field.



Motivated.



Risk taker.



Dedicated.

Source: www.graphicsfactory.com

Study Guide G08 ~ Economic and Management Sciences

Unit

Entrepreneur’s day An entrepreneur’s day needs a lot of planning, marketing and the effective use of your budget. Before you can start planning your entrepreneur’s day, you should prepare a detailed budget to calculate your expected income and expenses. A Statement of Income and Expenses – This is a document that shows the difference between the income received and the costs paid for the Entrepreneur’s day. 1.1.3 Financial literacy Accounting terms 

Capital



Assets and liabilities



Income and expenses



Profit and loss



Budgets



Savings



Banking



Financial records



Transactions

Source: http://northwestchicagoland.northwestquarterly.com

Income and expenses Personal income is an individual's total annual income from all sources such as wages, investments, dividends, rents, profits and interest. Personal expenses are all the costs of daily living.

Study Guide G08 ~ Economic and Management Sciences

Unit

Budgets An individualâ&#x20AC;&#x2DC;s planned incomes and expenses. Savings It is a portion of the money that a person earns, that he or she puts away for future use.

ACTIVITY 1.1: Revision State whether the following statements are true or false. 1.1.1

Before the advent of money, there was a time when people applied trading.

1.1.2

There are only three production factors namely labour, natural resources and raw materials.

1.1.3

A formal business must register with government departments.

1.1.4

When saving a portion of your money, you put it away for later use.

1.1.5

A budget is your planned income and expenditure for a month or year.

1.1.6

An entrepreneur is a person who turns a profitable idea into a business.

1.1.7

Entrepreneurship requires no planning.

1.1.8

A business refers to the purchase of goods and services.

1.1.9

The primary sector produces raw materials.

1.1.10 Formal and informal businesses can be both producers and consumers in the economy.

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Study Guide G08 ~ Economic and Management Sciences

Unit

Lesson 2: The Economy – Government LEARNING AIMS After you complete this unit, you should be able to:

 Understand the meaning of the government.  Know the different levels of the government and the roles of the different levels of government.  Know the different levels of government in respect of households in the use of resources and services. INTRODUCTION In 1994, for the first time in South Africa, a democratic election was held where all citizens obtained the right to vote. This resulted in bringing an end to apartheid and meant that South Africa entered a new era in its social and economic development and growth. The chapter will therefore deal with the government, the purpose of government, different levels of government, as well as how the government works. Source: www.ezakwantu.com

IMPORTANT TERMINOLOGY Democracy National election Infrastructure

Study Guide G08 ~ Economic and Management Sciences

Unit

1.2.1 Meaning of government DEFINE

Democracy: This is a form of government where the leaders and representatives of the country are elected by the population of the country. National election: An event in which the overall leaders and representatives of the country is elected by the citizens. Infrastructure: Physical facilities such as roads, bridges and buildings that the country's economy needs to function and grow. It also includes services such as electricity, water and sewage services.

The government is an organisation that has to manage and control the country. They therefore need to maintain order and ensure that there is enough money and that infrastructure and services are provided to the country's citizens. The government's members are elected through a democratic election system. Residents of the country participate in the national election, that takes place every four years, and then vote for who they want as leaders. To manage the country and its inhabitants is a very big task. The government is responsible for: 

The management and control of citizens.



The provision of services and infrastructure required for economic growth.



To generate revenue and to spend it in such a way that economic objectives can be achieved to ensure residents' basic needs.



Protecting citizens.

Although there are many different duties that the government must meet, the abovementioned responsibilities can be seen as the most important tasks.

Study Guide G08 ~ Economic and Management Sciences

Unit

ACTIVITY 2.1 1.1.1 Make a list of ten questions which you would like to ask to the president of the country. 1.1.2 Would you want to be the countryâ&#x20AC;&#x2122;s president? Give two reasons for your answer.

Source: www.rnw.nl.com

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Study Guide G08 ~ Economic and Management Sciences

Unit

1.2.2 Different levels of government Due to the fact that it is an enormous task to control and manage the country, the government is divided into different levels, namely: 

National government



Provincial government



Local government

The diagram below gives an explanation on how the various levels of government come together and function: The South African Government Responsible for the general management of the country and its citizens

National government

Provincial government

They deal with issues that need to be handled on a local level within towns and cities.

Local government

The country has nine provinces, of which each has its own objectives that need to be reached in order to better the province and in turn, the country.

Study Guide G08 ~ Economic and Management Sciences

Unit

The government has three main tasks to perform, namely: 

Legislative – It deals with the creation and implementation of various laws.



Executive – Leading the country and its business.



Judicial – Ensure that justice is implemented and upheld.

All three levels of government in turn play an important and contributing role in performing these tasks. A good example of this is that laws are created at national level, but are implemented and maintained on provincial and local levels. ACTIVITY 2.2 2.2.1. Name the three levels of government. 2.2.2. Name the three main tasks of the government. 2.2.3. Mention and discuss one function of each of the different levels of government.

Study Guide G08 ~ Economic and Management Sciences

Unit

1.2.3 Roles of the different levels of government in respect of households in the use of resources and services One of government's responsibilities is to provide basic services to the residents of the country. Each level of government plays a role and has to relate to households. For the government to meet the basic needs such as health care, water, electricity, housing and police services, it needs money to achieve it. The government generates money through businesses and households. Let's look at the way the government makes money.

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