Wat is Ekonomie?What is Economics?

Mohr & Fourie: Chapter 1 / Hoofstuk 1

SG – 1.1

Economics is the art of making the most out of life

– GB Shaw

Outcomes Uitkomstes

• Explain▫ Economics

• Define▫ economics▫ opportunity cost (OC)▫ other NB concepts

• Distinguish between▫ micro, macro▫ positive, normative▫ general mistakes▫ reasons to differ

• PPC

• Verduidelik▫ Ekonomie

• Definieer▫ ekonomie▫ geleentheidskoste (OC)▫ ander NB konsepte

• Onderskei tussen▫ mikro, makro▫ positief, normatief▫ algemene foute▫ Redes om te verskil

• PMK

EKONOMIE VANDAG ECONOMICS TODAY

1.1 Introduction 1.1 Inleiding

• The perception of economics

• Die persepsie van ekonomie

1.1 Introduction 1.1 Inleiding•Decisions

•How does ECON relate to you ?

•Bestuur ... Besluite

•Hoe raak ECON jou?

Study

Work

Gap Year

What? Where? Money?

What? Where? How do I get there?

Aupair? Where? Family and Friends?

On a Saturday, do I watch the rugby or do I study for Monday’s test?

Save my salary or buy a flat screen?

Loose some of your friends or gain life experience

ECONOMICS

Exercise Oefening

• Build a 1-sentence definition of economics

• Look at Box 1-1

• What concepts are included?

• Bou ‘n 1-sin definisie van ekonomie

• Kyk Raam 1-1

• Watter konsepte word bespreek?

Exercise - Definition Oefening - Definisie

• Does your definition include 4 NB concepts?

• Unlimited wants• Scarcity ... of resources• Choices ... • Opportunity cost ...

• Answer ...

• Sluit jou definisie 4 NB konsepte in?

• Oneindige begeertes• Skaarsheid ...

hulpbronne• Keuses ... • Geleentheidskoste ...

• Antwoord ...

Ekonomie gaan oor die optimale aanwending en verkryging van skaars middele/hulpbronne om sodoende behoeftes wat

onbeperk is te bevredig. / Economics is applying scarce resources in order to satisfy our

unlimited wants

Ekonomie / Economics

1.1 Scarcity, choice, OC 1.1 Skaarsheid, keuse, OC

•Differentiate ...▫ Want▫ Need▫ Demand

• Onderskei tussen ...▫ Begeerte▫ Behoefte▫ Vraag

1.1 Opportunity Cost 1.1 Geleentheidskoste

• The opportunity cost of a choice:▫ is the value to the

decision maker ▫of the best alternative

that could have been chosen but was not chosen.

• Die geleentheidskoste van ‘n keuse:▫is die waarde▫Van die beste

geleentheid / alternatief wat verbeur moes word.

Opportunity Cost Geleentheidskoste

Opportunity Cost Geleentheidskoste

Study

Work

What? Where? Money?

What? Where? How do I get there?

On a Saturday, do I watch the rugby or do I study for Monday’s test?

Save my salary or buy a flat screen?

1.2 Science 1.2 Wetenskap• Solve problems

• How?• Patterns

▫ Explain▫ Predict

• Why?▫ Prevent▫ Correct

• Policy

• Los probleme op

• Hoe?• Patrone

▫ Verduidelik / Verklaar▫ Voorspel

• Waarom?▫ Verhoed▫ Korrigeer

• Beleid

Differentiate Onderskei• Social science• Natural science

• Sosiale wetenskap• Natuur wetenskap

Differentiate Onderskei• Micro/Mikro • Macro/Makro

Differentiate Onderskei• Positive statements /

Positiewe stellings• Normative statements /

Normatiewe stellings

Common mistakes Algemene foute

• Oogklap

• Opteldenkfout(Drogrede)

▫ Geheel = + ind

• Post hoc ergo propter hoc

▫ = twee gebeure na mekaar nie agv 1

• Korrelasie en oorsaaklikheid

▫ 2 gebeure na mekaar of gelyktydig, een

is nie noodwendig die gevolg van ʼn

ander

▫ Korrelasie nie gelyk aan oorsaaklikheid

nie.

Vereenvoudige "ekonomie"

Slegs twee produkte word geproduseer

Beperkte hulpbronne

Moontlike kombinasies

Keuses moet uitgeoefen word

PPC PMK

• Simplified economy

• 2 products are being produced

• Limited recourses

• Possible combinations

• You have a choice

• Vereenvoudigde ‘ekonomie’

• 2 produkte word produseer

• beperkte hulpbronne word

geallokeer

• moontlike kombinasies van

produkte

• keuse van hoeveel van elk,

of net een

PPC PMK

PPC PMK

PPC PMK

A 0 100

B 1 95

C 2 85

D 3 70

E 4 40

F 5 0

PPC PMK

PPC PMK

PPC PMK

By producing 4 baskets of fish you have to give up 60kg of Potatoes.

By producing 40kg of Potatoes you have give up one basket of fish.

PPC PMK

Kan nie met beskikbare hulpbronne verkry word nie / Can not be achieved with the available resources.

PPC PMK

PPC PMK

PPC PMK

Next Week Volgende Week

• Monday▫ Homework (See eFundi)▫ Chapter 2

• Maandag▫ Huiswerk (Sien eFundi)▫ Hoofstuk 2