Directorate: Curriculum FET

SUBJECT AND GRADE: ECONOMICS GRADE 10

TERM 1: Week 1
TOPIC: Macro Economics
LESSON: Basic concepts; Branches of economics; Methods of economics
PURPOSE OF LESSON: I must be able to understand the following:
• The basic economic concepts;
• The different branches of economics;
• The different approaches to Economics
• The methods used in economics.

INTRODUCTION: This section requires knowledge covered in:

Gr. 7,8 and 9 EMS - Basic economic concepts.

KEY CONCEPTS:
CONCEPTS DESCRIPTION
Make flash cards. 1. Economics Economics is a social science.
Write the concept It studies how individuals, governments, firms and nations make
on the one side choices on allocating scarce resources to satisfy their unlimited
and the wants.
explaination on 2. Needs Needs are necessities. We need it to survive.
the other
E.g. food, water, clothing and shelter
side.Read
through it on a 3. Wants Wants are luxury goods that bring pleasure.
daily basis E.g. television, iPhone, gold earrings
4. Resources Land, capital, labour and entrepreneurship which is needed as
inputs to produce goods and services.

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 SKILLS: At the end of this lesson, I must be able to answer questions on:
1. The basic economic concepts;
2. The branches of economics;
3. The different approaches to Economics
4. The method of economics.

NOTES: 1. Branches of economics: • Environmental economics

• Macroeconomics How the health of the natural environment
Macroeconomics studies the whole economy. influences the development of the economy and is
Examples: especially concerned with major environmental
✓ Economic growth problems such as climate change.
✓ The consumer price index.
✓ Unemployment figure • Labour economics
✓ Inflation Is a study of the demand and supply of labour on
the labour markets. It also looks at the training of
• Microeconomics workers and their employment conditions.
Carefully read Microeconomics studies the individual parts of the
through the notes. economy. • Public sector economics
Examples: Involves the role that the state plays in the
Re-write it in your ✓ The price of a single product economy in providing the infrastructure and
workbooks ✓ The interaction between buyers and sellers. passing laws to influence the development of the
✓ How the price of a product is determined economy.
Read through it on
a daily basis 2. Other branches of economics: • International economics
• Business economics Is the study of world trade and includes the
Involves the different management functions within a international agreements that control trade.
business and how to run a business enterprise efficiently.
• Economic history
How economies were managed in the past.

• Development economics 3. Approaches of economics

Is a branch of economics which deals with economic • Classical approach
aspects of the development process in low-income Believe that markets function very well, and they
countries. will react very quickly to any changes in
equilibrium.
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 • Monetary economics • Keynesian approach
Is concerned with the policies of central banks and other Believe that markets react very slowly to
financial institutions such as general (commercial) and equilibrium.
investment banks.
• Normative statements
4. Methods of economics A normative statement involves an opinion or
• Positive statements value judgement. It cannot be proved or
A positive statement is an objective statement of fact. disproved.
It does not have to be correct, but it must be able to prove Examples of statements:
or disproved it. ✓ The government should give social grants
Examples of statements: to people.
✓ The payment of social grants to people increase ✓ The Monetary policy committee should
government expenditure. decrease the interest rates by 1%.
✓ The national budget is tabled in February each
year.

ADDITIONAL Econ Gr.10 Core Notes

RESOURCES: Econ Gr. 10 Answer Series
Any other CAPS approved Econ Gr.10 Textbook

1. Write only the correct letter (A – D) next to the question number.

CONSOLIDATION
ACTIVITIES: 1.1 Economics is a social science that studies how people satisfy their unlimited needs and wants using
…
A. limited means.
B. unlimited means.
C. limited satisfaction.
D. unlimited satisfaction.

1.2 A study of how increases in the corporate tax rate will affect the national unemployment rate is an
example of…
A. Macroeconomics
B. Microeconomics
C. Normative economics
D. Positive economics
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 1.3 This is the branch of Economics that looks at the behaviour of the economy as a whole for example,
national income.
CONSOLIDATION A. Microeconomics
ACTIVITIES B. Monetary economics
C. Macroeconomics
D. Econometrics (3 x 2) (6)

2. Give the correct term for each of the following descriptions.

2.1 This is the branch of Economics that looks at the behaviour of the individual units of an economy
such as firms, households and individual consumers.

2.2 A social science that studies the daily choices people make and how to satisfy their unlimited needs
and wants with limited means.

2.3 This is the branch of Economics that studies the behaviour of the individual units of an economy such
as firms, households and individual consumers. (3 x 1) (3)

3. Name any TWO fields of study that are related to Economics. (2 x 1) (2)

4. What will you study in International Economics? (1 × 2) (2)

5. Differentiate between Micro-economics and Macro-economics. (2 x 2) (8)

6. Explain the difference between a positive and normative statements

and provide an example of each. (4 x 2) (8)

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