Economics

• Economics is the study of production, distribution, and consumption of goods and services.
• scarce resources is when there are not enough resources to satisfy all needs and wants.
• the reason for scarcity is because the demand for a natural products is higher than the supply.
• scarcity is the basic economic problem
• the government needs to make choices as resources are scarce and a choice needs to e made on who receives the resource
• choices are made at two points of view this is

  
  

  -Consumers point of view

  
  

  -Producer point of view
• comsumers point of view is when the consumer is the one who is buying the product and is the one who is going to use it
• producers point of view is that the environment is a resource that can be used to produce goods and services
• wants are things individuals desire to have but do not need to survive
• Needs are essential for survival
• Maslow's Hierarchy of needs

  
• government: the group of people with the authority to govern a country or state; a particular ministry in office
• national government - the government of a country that is voted for every 4 years
• ministers oversee, saftey and security, agriculture, education, health, justice, and transportation
• provincial government - the provincial government is the government of a province
• provincial government takes care of the provincial government and the provincial legislature, which is the provincial assembly
• local government - the government of a city, county, or other local area
• local governments duties are too: collect taxes, manage local services, manage local planning, manage local infrastructure, manage local environment
• provincial governments duties are to protect the environment, provide public services, and promote economic development
• national governments duties are to protect the environment, promote sustainable development, and protect human rights
• the nine provinces of South Africa are: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, North West ,Northern Cape ,Western Cape.
• national budget is responsible for the government's spending and taxation
• surplus: an amount of something left over when requirements have been met; an excess of production or supply
• deficit: the amount by which something, especially a sum of money, is too small.
• Taxes is the money that the government takes from the people to fund the government.
• direct taxes are taxes that are imposed on individuals or businesses.
• indirect taxes are taxes that are imposed on the final consumer, not the producer
• government spending is the amount of money the government spends on goods and services
• the government spend money on education, healthcare and welfare to help the poor
• The government also spends money on defence and infrastructure such as roads and bridges