The perfect summary to learn for your grade 9 Business studies exam at the end of the year. Covers the themes: Economic Systems, The Economic Cycle, Micro Economics, Trade Unions, Economic Sectors, Business Functions and Business Plans
The Economic System
- How decisions are made with regard - What are the three economic issues:
to:
• WHAT is being produced?
• How Factors Of Production are
• HOW is production taking place?
organised in order to produce and
distribute goods and services • For WHO is it being produced?
- What are the Factors of Production:
• Capital
• Land
• Labour
• Entrepreneurship
Three Basic Economic Systems:
• Planned Economic Systems
• Mixed Market System
• Free Market System
- Planned Economic Systems
• Economic activities organised by - WHO? Government decides who
the Government receives products/services
• Focus on what the government • Advantages:
needs
- Theoretically no unemployment
• Three economic issues: (government employs all citizens)
- WHAT? Only what the - Ensures all citizens have access
government approves to essential services
- HOW? Government decides
quantity needed or services
provided
1
, • Disadvantages: • Eg: North Korea & Cuba
- Consumers (citizens) very low on
list of priorities
- Limited choices of products
- Low drive to preserve resources
as they are owned by
government not people
- Prices are controlled/set by
government
- Free Market Systems
• Economic activities depend on • Disadvantages:
supply and demand
- Unfair distribution of wealth (rich
• No government intervention get richer concept)
• Economic issues: - Monopolies formed often (one
supplier of everything) = higher
- WHAT? All produces required
prices and no drive to improve
- HOW? Competing businesses quality
decide on amount and quality
- Little motivation for public
- WHO? For people who are able services
to a ord it - Job loss due to bankruptcy of
• Advantages: businesses
- Opportunity to work hard and
become successful
- Entrepreneurship is strong and
ensure competition
- Competition = lowered prices
with maintained quality
- Variety of products
- Resources are privately owned
(therefore looked after)
- Mixed Market System
• Combination of planned and free • Some control by supply and
systems demand and some control by
government
2
ff
, • Most countries (eg. South Africa) • Advantages:
• Economic issues: - Social services provided by
government
- WHAT? Combination of what
people want and what - Government creates jobs
government thinks they need
- Combo of advantages from
- HOW? Government and planned and free systems
entrepreneurs decide
• Disadvantages:
- WHO? Government and private
- Public sector is bureaucratic =
sectors taken into account
poor service delivery
- Combo of disadvantages from
planned and free
The Global Economy of Globalisation
• International trade of goods and services
• Advantages of globalisation:
- Businesses compete internationally
- Wider variety of goods and services
- Freedom to work in other parts of the world
- Capital can move between countries
• Rich countries (1st world) get richer & poor countries (3rd world) get poorer
• Advantages for First world countries:
- Develop products from raw materials from Third World countries
- Sell back to Third World countries at higher prices
- Governments can a ord to subsidise industries = manufacture products at
lower cost
- Unemployment in Third World countries = limited productivity
3
ff
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller tayla. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.40. You're not tied to anything after your purchase.
