E111 2.2 2.5

The Economic ProblemDie ekonomiese probleem

Chapter 2 / Hoofstuk 2 Continue... 2.4 – 2.5

3 Questions 3 Vrae?

•What?

•How?

•For who?

•Wat?

•Hoe?

•Vir wie?

3 Questions 3 Vrae?

HOW? HOE?

• Production Factors (PFs)▫ Natural resources▫ Labour▫ Capital▫ Entrepreneurship

• Produksie faktore (PFe)▫ Natuurlike hulpbronne▫ Arbeid▫ Kapitaal▫ Ondernemerskap

Labour (Box 2.1) Arbeid (Raam 2.1)

• 3 NB Economic activities

▫Produksie

▫Verbruik

▫Handel

• Box 2-1

▫ Specialisation

▫ Division

▫ Benefits?

• 3 NB ekonomiese

aktiwiteite

▫Production

▫Consumption

▫Trade

• Raam 2-1

▫Spesialisasie

▫Verdeling

▫Voordele?

Arbeidsverdeling RAAM 2-1

Labour Arbeid

Voordele / Pros Nadele / Cons

Spaar tyd / Saves time Eentonig / Boring

Toewysing / Allocation Afhanklik / Dependent

Vaardigheid / Dev.skills

Meganisasie / Mechanisation

Kwaliteit / Quality

Produktiwiteit / Productivity

Labour Arbeid

• Technology

▫5th PF

▫Knowledge...more

G&S

▫Invention

▫Innovation

• Money...

▫ NB!! But is it a PF?

▫ What is money?

• Tegnologie

▫5de PF

▫Kennis...meer G&D...

▫Uitvinding

▫Innovasie

• Geld...

▫NB!! Maar is dit ‘n PF?

▫Wat is Geld?

For Who? Vir Wie?

• Who will receive the goods and services that are produced?

• Wie sal die goedere en dienste wat in die ekonomie geproduseer word, ontvang?

PF “Income / Inkome”Natural Resources / Natuurlike Hulpbronne

Rent / Huur

Labour / Arbeid Wages & Salaries / Lone & Salarisse

Capital / Kapitaal Interest / Rente

Entrepreneurship / Ondernemerskap

Revenue / Wins

Functional distribution of income / Funksionele verdeling van inkome

Personal Distribution of Wealth? Persoonlike verdeling van Inkome?

WHO produces WHAT? WIE produseer WAT?

•Primary sector

•Secondary sector

•Tertiary sector

•Primêre sektor

•Sekondêre sektor

•Tersiêre sektor

So... Up to now So... Tot nou

• What is the economic problem?

• Types of goods?

• Production Factors?• PF = Income?

• Wat is die ekonomiese probleem?

• Soorte Goedere?

• Produksie Faktore?• PF = Inkome?

Economic Systems Ekonomiese Stelsels

• System?

• The objective for an

economic system?

• Economic systems:

• Tradition

• Command

• Market

• Mixed

•Stelsel?

•Wat is die doel van ‘n

ekonomiese stelsel?

•Ekonomiese stelsels:

▫Tradisionele

▫Bevel

▫Mark

▫Gemeng

Traditional Tradisiolele

- Tradition- Same goods and Services- Rigid system

- Tradisioneel- Selfde goedere en dienste- Onbuigsame stelsel

Command Bevel

• Production Factors• 70’s and 80’s• North Korea• Socialist

• Produksie faktore• 70’s en 80’s• Noord Korea• Sosialisties(PF =

STAATbehalwe A)

Market / Mark?????

• Any contact / communication between potential buyers and potential sellers of a good or service.

• ‘n Mark is engie kontak of kommunikasie tussen potensiele kopers en potensiele verkopers van ‘n produk of diens.

Market / Mark

• Voorwaardes???• Conditions???

Markstelsel

Dit is 'n stelsel waarin besluite en voorkeure deur die markmeganisme gekommunikeer en

gekoordineer word. Die NB element is markpryse.

Market / Mark

• Kapitalisties• Bepaalde vorm van

eienaarskap oor PF.• Privaatbesit• Markkapitalisme (individualisme,

persloonlike vryheid, private eiendom, eiendomsreg)

• Eiebelang = dryfkrag• Adam Smith

• Capitalism• Particular type of

ownership of PF.• Private ownership• Market capitalism• Adam Smith

Mixed Gemeng

• Produksiefaktore word privaat besit, maar die owerheid voorsien openbare goedere en dienste.

• Mark stuur prysseine, maar die owerheid beinvloed dit deur belasting en subsidies.

SA??

• Production factors are owned privately but the government provides public goods and services

• Market send out price signals but the government intervene with taxes and subsidies.

• SA??

Mixed Gemeng

• Somige ondernemings wat deur die staat besit word?

• Privatisering??• Nasionalisering??

• Some enterprises that are owned by the state?

• Privatisation??• Nationalisation??

Call me Smith… Adam Smith

VIDEO

FACTS ABOUT SMITH

Claim to fame: The wealth of nations, 1776

View Points:Division of labour, free trade and limit the role of government.Invisible hand theory.

Call me Marx…

Karl Marx

FACTS ABOUT MARX

Claim to fame: Das Kapital, 1867

View Points:

Labour – NBs / Arbeid = bron van alle waardeTechnology unemploymentPolitics

FACTS ABOUT KEYNES

Claim to fame: The general theory, 1936

View Points:

MixedThe Level of total economic activity will depend on total demand.Grondslag vir Makro

VIDEO

Something extra and

interesting…

16e eeu: 1501-1600• Mense: / People

▫ Da Vinci▫ Koning Henry VIII ▫ Koningin Elizabeth I▫ Vasco Da Gama...▫ Shakespeare▫ Nostradamus

• Uitvindings: / Inventions▫ Draaiwiel vir die maak van tekstiele /

Spinning wheel for textile production▫ Draagbare horlosie / Portable watch▫ Termometer / Thermometer▫ Spoel toilet / Flush toilet

17e eeu: 1601-1700• Mense: / People

▫ Galileo Galilei▫ Rembrandt van Rijn▫ Pascal▫ Bach▫ Isaac Newton▫ Jan van Riebeeck

• Uitvindings: / Inventions▫ Roomys / Ice cream▫ Sentrale Bank / Central Bank

(John Law)▫ Musket / Musket▫ Bakterieë / Bacteria▫ Calculus

18e eeu: 1701-1800• Mense: / People

▫ George Washington▫ Casanova▫ Mozart▫ Marie Antoinette▫ Vivaldi

• Uitvindings: / Inventions▫ Stoom enjin / steam engine▫ Klavier / Piano▫ Rubber ▫ Staal / Iron▫ Inenting teen waterpokkies /

Inoculation against chicken pocks

20e eeu: 1901-2000• Mense: / People

▫ Hitler▫ Einstein (TIME person of the century)▫ Elvis Presley▫ Niel Amstrong▫ Martin Luther King Jr.▫ Coco Chanel▫ Prinses Diana▫ Koningin Elizabeth II▫ Ghandi

• Uitvindings: / Inventions▫ Motors... / Cars▫ Rekenaars... / Computers▫ Internet...▫ Televisie / Television▫ Radio▫ Teorie van relatiwiteit / Theory of relativity▫ Atoom-bomme / Atom bombs▫ Selfone... / Cell phones▫ Antibiotika / Antibiotics