100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Summary EKN120 Cht 11 - South African Economy: Circular flows and Limitations CA$5.60   Add to cart
Quickly navigate to
Preview
  2.  
  3. University Of Pretoria (UP)
  4.  
  5. EKN 120 (EKN120)

Summary

Summary EKN120 Cht 11 - South African Economy: Circular flows and Limitations
 118 views  3 purchases
  • Course
  • EKN 120 (EKN120)
  • Institution
  • University Of Pretoria (UP)
  • Book
  • EBOOK: Economics: A Southern African Context, 3e

Content covered: - Role players in economy. - Circular flow diagram. - Societies economizing problem. - Production possibilities curve.

Preview 2 out of 6  pages

Document information

  • No
  • Chapter 11
  • August 21, 2022
  • 6
  • 2022/2023
  • Summary

Subjects

  • sa economy
  • ekn120
  • chapter 11
  • circular flows
  • households
  • government
  • firms
  • foreign sector
  • societies economizing problem
  • production possibilities curve

Connected book

book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:

More summaries for

  • Economics 110 Chapters 1,2,3,4,5,7,8,9
  • EKN120 Summary Notes (Ch16 - Ch20)
  • EKN110 Summary Notes (Ch4 - Ch7)
All for this textbook (41)

Written for

  • University of Pretoria (UP)
  • EKN 120 (EKN120)
All documents for this subject (36)

Seller

avatar-seller
amywallace

Reviews received

Content preview

South African Economy - Circular
Flows & Limitations
Chapter 11
S.A. Land Area &
Population (%)
South African land area covers
1 219 090 km2.
▪ Northern Cape = 30% of total area
but only 2% of population.
▪ Gauteng = 1.4% of total area but
26% of population.
Population (2019): 58.8 million Inequalities
▪ African + 80% of total. Richest 10% spend 7.9 more than the
▪ White around 8% of total. Bottom 40% in 2015. (read p 123)
▪ Coloured around 9% of total. Personal distribution of income:
▪ Indian/Asian just below 3 % of manner which eco’s personal/
total. disposable income = divided among diff
▪ 51% of total = female. income classes /households/families.
Role Players in Eco Households as Spenders
1. Households How households dispose income?
The rest to personal consumption
Households as Income Receivers
expenditures:
16.2 mil. households in South Africa:
▪ 1/+ persons occupying housing unit.
▪ Ultimate suppliers of all economic
resources (production factors ect
land, labour capital & entre).
▪ Major spenders in eco.
Functional distribution of income:
▪ Indicates how households’ earned
income = apportioned among income
from work & related categories &
income from other sources such as
grants.
Types G/S
▪ Wages = paid 2 labour; rents &
Durable good: cons good w/ expected
interest 2 owners of property
life of 3/+ yrs.
resources; profits = paid 2 owners
Semi-durable goods: incl clothing,
of corporations & unincorporated
footwear ect w/ longer life span than
businesses.
non-durable goods.
Non-durable good: cons good w/
expected life of less than 3 yrs.

, 2. Business Population Private goods:
Produce g/s, & combine FOP. Persues ▪ Characteristics: rivalry &
profit. Constitutes 2nd major excludability.
component of private sector. Public goods:
Distinction btw firm, plant & industry: ▪ Characteristics: non-rivalry (1
▪ Plant = physical establishment. person’s benefit from certain good
▪ Firm = buss org that owns plants. not reduce benefit available 2
▪ Industry = group of firms. other) & non-excludability
Complex & varied structure. (inability 2 keep non-payers (free-
▪ Multiplant firm organised riders) from obtaining benefits
horizontally (several plans same from certain good).
function). ▪ Free-rider problem.
▪ Vertically integrated: plants perf Quasi-public goods, e.g. education.
diff functions in various stages of Reallocation process thro taxation.
production. Takes care of market failures:
Generally take following legal forms: 1. Produces wrong amt g/s.
1. Sole Proprietors: 2. Fails allocate resc 2 production of
unincorporated firm owned & g/s who output is eco justified.
Read p123
operated by 1 person.
2. Partnerships: unincorporated firm
4. Role of Foreign Sector
owned & operated by 2/+ persons. Include all role players (large # indiv
3. Closed Corporations. states w/own govt, cons & buss).
4. Companies (private/public): legal Open Economy – sensitive 2 changing
entity (‘person’) distinct & world events.
separate from indivs who own it. International Trade.
Advantages of Companies Circular Flow Diagram
▪ Unique Corporate instruments Flows are equal.
(effective raise money 2 expand) & Illustration showing:
equity & debt financing. ▪ flow of resources from
▪ Limited liability to owners (only households 2 firms &
risk what paid 4 stock). ▪ of prods from firms 2 households.
▪ Hiring of specialists, amongst These flows are accompanied by
other factors (expand). reverse flows of money from firms 2
▪ Lifetime not constrained 2 owners. households & from households 2 firms.
Principal-Agent Problem
Conflict of interest occurs w/e agents
(workers/managers) pursue own
objectives 2detriment of principals’
(stockholders’) goals. Read p123
3. Government’s Role
Provide Legal structure (fair comp).
Public g/s, e.g. national defence.
transfer payment: money (/g/s) by
govt 2 household/firm which payer
receives no g/s directly in return.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

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

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

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 amywallace. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for CA$5.60. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

77764 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
CA$5.60  3x  sold
  • (0)
  Add to cart