Lesson Notes By Weeks and Term v5 - Grade 7

Lesson Video

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Performance objectives

• Define needs, wants, goods, and services with examples.
• Differentiate between needs and wants.
• Classify items as goods or services.
• Explain how resources are used to produce goods and services.
• Understand the relationship between these concepts and South Africa's economy.

Lesson summary

Welcome to Economic and Management Sciences! This year, we will explore how our economy works and how it affects our daily lives. This week, we'll start with the basics: understanding the difference between needs, wants, goods, and services. Learning about these concepts will help you understand why people make the choices they do, from buying groceries to starting a business. Understanding these economic fundamentals is crucial for making informed decisions about your own money and for participating effectively in South Africa's economy. Being able to differentiate between needs and wants will help you to become a responsible consumer.

Lesson notes

Needs: Needs are essential things we must have to survive. These are things like food, water, shelter, and clothing. Without these, our health and well-being are at risk.

Think of it this way: you need to eat to stay alive.

Wants: Wants are things we would like to have, but they are not essential for survival. These are things like the latest cellphone, designer clothes, a fancy car, or going to the movies every week. They make life more comfortable or enjoyable, but we can live without them. You might want to have the newest PlayStation game, but you don't need it to survive.

Goods: Goods are tangible (physical) items that satisfy our needs or wants. You can touch, see, and hold them.

Examples include: Food: Bread, mielie meal, vegetables, meat Clothing: School uniform, shoes, jacket Shelter: A house or flat Technology: A laptop, cellphone (although the use of the cellphone is often a service)

Services: Services are intangible activities that satisfy our needs or wants. They are performed by someone for someone else. You can't physically hold a service.

Examples include: Education: Teaching provided by a teacher at school.

Healthcare: A doctor examining a patient and providing medical advice.

Transportation: A bus driver taking passengers to their destination.

Haircutting: A hairdresser cutting and styling hair.

Banking: A bank teller assisting with deposits and withdrawals. Needs vs.

Wants: Prioritization It's crucial to understand the difference between needs and wants because resources are limited. We don't have unlimited money, time, or materials.

Therefore, we must prioritize our needs first. If you spend all your money on wants, you might not have enough money to cover your needs, like food or school fees.

Example 1: The Mthembu Family The Mthembu family earns R5,000 per month.

Their needs include: Rent: R1,500 Food: R2,000 Transport: R500 School Fees: R500 This totals R4,

5

0

0. They only have R500 left.

Their wants might include: New clothes Eating out at a restaurant Buying the latest DVD They need to decide how to spend the remaining R

5

0

0. They may choose to buy some new clothes (need, if current clothes are worn out) or save it for a special occasion. Understanding the difference between needs and wants helps the Mthembu family budget effectively.

Example 2: Goods and Services in a School Goods: Textbooks, desks, computers, pencils, paper, school buildings.

Services: Teaching (provided by teachers), cleaning (provided by cleaners), security (provided by security guards), administration (provided by school administrators). The Relationship Between Needs, Wants, Goods, and Services Needs and wants drive the economy. People need and want things, and businesses produce goods and provide services to satisfy those needs and wants. The interaction of needs, wants, goods, and services creates economic activity.

For example: Need: People need food.

Want: People might want a specific type of food, like a delicious pizza.

Good: A pizza is a good that satisfies the want.

Service: A pizza chef provides the service of making the pizza. This activity creates jobs (pizza chef, delivery driver), uses resources (ingredients, oven), and generates income for the business. Guided Practice (With Solutions)

Question 1: Identify whether the following are needs or wants: a) Air to breathe b) A smartphone c) A warm jacket in winter d)

A trip to Disney World e)

Water Solution: a)

Need: Air is essential for survival. b)

Want: A smartphone is not essential for survival, although it can be useful. c)

Need: A warm jacket provides necessary protection from the cold in winter. d)

Want: A trip to Disney World is a luxury and not essential for survival. e)

Need: Water is essential for survival.

Question 2: Classify the following as either goods or services: a) A haircut b) A loaf of bread c) A bus ride d)

A textbook e)

A dental check-up Solution: a)

Service: A haircut is an activity performed by a hairdresser. b)

Good: A loaf of bread is a tangible item you can hold and eat. c)

Service: A bus ride is a transportation service provided by a bus company. d)

Good: A textbook is a tangible item you can read and learn from. e)

Service: A dental check-up is a medical service provided by a dentist.

Question 3: Give one example of a need and one example of a want related to education. Then, provide an example of a good and a service that helps satisfy those need and want.

Solution: Need (related to education): Access to learning materials to learn to read Good (satisfying the need): Textbooks Service (satisfying the need): Teaching from a teacher Want (related to education): To have a personal laptop with the latest software to learn coding Good (satisfying the want): A laptop with coding software Service (satisfying the want): Online coding tutoring services Independent Practice (Questions Only) Explain the difference between a need and a want in your own words. Give three examples of each.

Consider the following scenario: You have R200.