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Economic and management sciences

Grade 8

Sustainable growth and development

Module 8

Savings and investment

SAVINGS AND INVESTMENT

When you have completed this section, you will be able to discuss the importance of savings and investment opportunities.

What is the meaning of SAVINGS in regard to economics?

SAVINGS can be regarded as that portion of your income that is not used to satisfy your needs . This means that it is the portion of your income (or pocket money) that you “put away”. The “surplus” might be kept in a piggy bank (where it earns no interest) or it can be deposited in a savings account with in a financial institution (where it will earn interest) as an investment.

Activity1:

Personal savings

SELF:

Provide reasons for why you might decide to put away pocket money rather than use it immediately.

Note : You may decide for yourself where you are going to “put it away”.

Submit a written account of your decisions (one page).

The implication for the PRIVATE INDIVIDUAL is that he or she, by saving, refrains from spending the money on consumer goods and services, or the postponement of satisfying needs to a later occasion. As explained above, such a surplus may be “hoarded” or deposited with a financial institution.

Activity 2:

Savings and the private individual

SELF:

Provide possible reasons why private individuals may decide to postpone satisfying of needs to a later date:

for the PRODUCER, saving implies the portion of his production that is not made available for consumption, or the production surplus that is not consumed.

Activity 3:

Saving and the producer

SELF:

Why would a producer decide against making all of his production available? Suggest reasons:

In the simplest form, SAVINGS can be represented as:

SAVINGS = INCOME - CONSUMPTION

The portion of income that is not spent on consumer goods (i.e. savings) and is deposited with financial institutions is made available to clients (or enterprises) who wish to utilize the funds for further production. The money is also made available to producers or industrialists who want to extend their production capacity, i.e. who want to INVEST in capital goods such as buildings, machinery, etc.

please note: Capital goods include all goods that are used to produce consumer goods, and, possibly, capital goods as well.

Activity 4:

Consumer and capital goods

SELF:

Explain the difference between consumer goods and capital goods. Make use of examples.

Give examples of consumer goods that are capitol goods as well.

Activity 5:

Capital goods and investment

Group:

Select an enterprise or enterprises from your immediate environment and describe all the capital goods that have been acquired as an INVESTMENT to make production viable.

Provide a report for presentation to the class.

LO 2.3

Assessment

Learning outcomes(LOs
LO 2
SUSTAINABLE GROWTH AND DEVELOPMENTThe learner will be able to demonstrate an understanding of sustainable growth, reconstruction and development, and to reflect critically on related processes.
Assessment standards(ASs)
We know this when the learner :
2.1 investigates and describes how the national budget is used to influence growth and redress economic inequalities;
2.2 investigates how the RDP could have been used to stimulate economic growth and restructuring (e.g. capacity building jobs);
2.3 discusses the importance of savings for investments;
2.4 investigates and reports on how technology can improve productivity, economic growth, living standards, etc.

Memorandum

Synopsis of module

Assessment standard 2.3:savings and investment

ACTIVITY1: PERSONAL SAVINGS

SELF:

  • Learners are required to provide reasons for their own inclinations to save

ACTIVITY2: SAVINGS AND THE PRIVATE INDIVIDUAL

SELF:

  • learners are required to provide possible reasons for savings by private individuals.

ACTIVITY 3: SAVING AND THE PRODUCER

SELF:

  • learners are required to provide possible reasons for saving with regard to the producer.

ACTIVITY4: CONSUMER AND CAPITAL GOODS

SELF:

  • CONSUMER GOODS:

food, clothing, car, house, furniture, etc.

  • CAPITAL GOODS:

machinery in factories

refrigerators in butcheries

furnaces at ISCOR

trucks belonging to Pickfords

cement mixers of building contractors

  • Examples of consumer goods that are capital goods as well;

company car that is used for private excursions on Sundays, but for promoting sales during the week (by a representative of the company)

cell phone that is used for private as well as for company calls.

ACTIVITY 5: CAPITAL GOODS AND INVESTMENT

GROUP:

  • form groups and provide assistance with identifying appropriate enterprises from the immediate environment. Facilitating awareness of the differences between consumer and capital goods and recognizing the differences as important in this activity.

Questions & Answers

what does nano mean?
Anassong Reply
nano basically means 10^(-9). nanometer is a unit to measure length.
Bharti
do you think it's worthwhile in the long term to study the effects and possibilities of nanotechnology on viral treatment?
Damian Reply
absolutely yes
Daniel
how to know photocatalytic properties of tio2 nanoparticles...what to do now
Akash Reply
it is a goid question and i want to know the answer as well
Maciej
characteristics of micro business
Abigail
for teaching engĺish at school how nano technology help us
Anassong
Do somebody tell me a best nano engineering book for beginners?
s. Reply
what is fullerene does it is used to make bukky balls
Devang Reply
are you nano engineer ?
s.
fullerene is a bucky ball aka Carbon 60 molecule. It was name by the architect Fuller. He design the geodesic dome. it resembles a soccer ball.
Tarell
what is the actual application of fullerenes nowadays?
Damian
That is a great question Damian. best way to answer that question is to Google it. there are hundreds of applications for buck minister fullerenes, from medical to aerospace. you can also find plenty of research papers that will give you great detail on the potential applications of fullerenes.
Tarell
what is the Synthesis, properties,and applications of carbon nano chemistry
Abhijith Reply
Mostly, they use nano carbon for electronics and for materials to be strengthened.
Virgil
is Bucky paper clear?
CYNTHIA
so some one know about replacing silicon atom with phosphorous in semiconductors device?
s. Reply
Yeah, it is a pain to say the least. You basically have to heat the substarte up to around 1000 degrees celcius then pass phosphene gas over top of it, which is explosive and toxic by the way, under very low pressure.
Harper
Do you know which machine is used to that process?
s.
how to fabricate graphene ink ?
SUYASH Reply
for screen printed electrodes ?
SUYASH
What is lattice structure?
s. Reply
of graphene you mean?
Ebrahim
or in general
Ebrahim
in general
s.
Graphene has a hexagonal structure
tahir
On having this app for quite a bit time, Haven't realised there's a chat room in it.
Cied
what is biological synthesis of nanoparticles
Sanket Reply
what's the easiest and fastest way to the synthesize AgNP?
Damian Reply
China
Cied
types of nano material
abeetha Reply
I start with an easy one. carbon nanotubes woven into a long filament like a string
Porter
many many of nanotubes
Porter
what is the k.e before it land
Yasmin
what is the function of carbon nanotubes?
Cesar
I'm interested in nanotube
Uday
what is nanomaterials​ and their applications of sensors.
Ramkumar Reply
what is nano technology
Sravani Reply
what is system testing?
AMJAD
preparation of nanomaterial
Victor Reply
how to synthesize TiO2 nanoparticles by chemical methods
Zubear
what's the program
Jordan
?
Jordan
what chemical
Jordan
how did you get the value of 2000N.What calculations are needed to arrive at it
Smarajit Reply
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Source:  OpenStax, Economic and management sciences grade 8. OpenStax CNX. Sep 11, 2009 Download for free at http://cnx.org/content/col11040/1.1
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