Ecos StudyGuide1 Unisa

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ECS1601/1/2011-2013
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ECS1601/1/20102012 iii
Page
INTRODUCTION vii
STUDY UNIT 1 3
Interdependence of the major sectors, markets and flows in a mixed
economy 5
STUDY UNIT 2 15
The monetary sector 17
STUDY UNIT 3 31
The public sector 33
STUDY UNIT 4 47
The foreign sector 49
STUDY UNIT 5 61
Measuring the performance of the economy 63
STUDY UNIT 6 77
Income determination in a simple Keynesian macroeconomic model 79
STUDY UNIT 7 103
Keynesian models including the government and the foreign sector 105
STUDY UNIT 8 129
More on macroeconomic theory and policy 131
STUDY UNIT 9 143
Inflation 145
STUDY UNIT 10 155
Unemployment and the Phillips curve 157
STUDY UNIT 11 165
Economic growth 167
SELF-EVALUATION EXERCISES 177
SOLUTIONS TO SELF-EVALUATION EXERCISES 182
GLOSSARY 185
CONTENTS
iv Economics 1B
BANK
In this introduction we would like to explain the
purpose of the module. Information on the
prescribed book is given and we tell you how the
study guide is structured and how it should be used.
HOUSEHOLDS
FOREIGN SECTOR GOVERNMENT
FIRMS
FINANCIAL SECTOR
INTRODUCTION
1. The purpose of the module
2. Module outcomes
3. Critical cross field outcomes
4. The prescribed book
5. The study guide
6. How to use the study guide
7. Important verbs
8. Using diagrams
ECS1601/1 vii
Welcome to the second part of your introduction to economics. We hope that you will
find this module mentally stimulating and worthwhile.
The purpose of the module is to gain insight into macroeconomic theory and variables
such as total production and income of a country, economic growth, unemployment,
inflation, and the balance of payments.
After you have studied this module, you should be able to:
explain the functioning of the economy as a whole
assess the performance of the economy
As a student enrolled for a tertiary qualification, you will be exposed to a formative
learning experience that should not only educate you in the chosen discipline but also
form your character.
The formative nature of the qualification is described in the critical cross-field outcomes
that all tertiary qualifications aim to achieve. Critical cross-field outcomes refer to broad
generic outcomes encompassing various areas, which all qualifications and standards
should aim to promote.
After you have completed this tertiary qualification, you should be able to:
identify and solve problems in such a way that you display responsible decision
making using critical and creative thinking
work effectively with others as a member of a team, group, organisation or com-
munity
organise and manage yourself and your activities responsibly and effectively
collect, analyse, organise and critically evaluate information
communicate effectively using visual, mathematical and/or language skills in the
modes of oral and/or written persuasion
use science and technology effectively and critically, showing responsibility
towards the environment and health of others
demonstrate an understanding of the world as a set of related systems by
recognising that problem solving does not happen in isolation
In order to contribute to your full personal development as a student (and to that of
every other student) as well as the social and economic development of society as a
INTRODUCTION
PURPOSE OF THE MODULE
MODULE OUTCOMES
CRITICAL CROSS-FIELD OUTCOMES
viii Economics 1B
whole, any programme of learning should have the underlying intention of making an
individual aware of the importance of:
reflecting on and exploring a variety of strategies to learn more effectively
participating as responsible citizens in the life of local, national and global
communities
being culturally and aesthetically sensitive across a range of social contexts
exploring education and career opportunities
developing entrepreneurial opportunities
The following book is prescribed for this module:
The main requirements for the study of economics are a willingness to think and an
active approach to learning. Economics is not a subject that can simply be memorised
it has to be understood. This means that you will always have to think about what you
are studying and that you must try to understand the work. The solution is to study
actively. Use a pen and paper to work out each argument by drawing diagrams, doing
calculations, and writing down the logic of the argument. It is not sufficient simply to
read the prescribed book and underline or highlight the key concepts.
Do not skip any of the chapters prescribed. These chapters follow a logical pattern. If
you skip some chapters, you will not be able to follow or understand the reasoning in
the study guide as a whole.
The study guide has been designed in such a way as to guide you through the prescribed
book in a systematic and informative way and to help you get to know the economists
analytical toolkit. Therefore, you cannot study the prescribed book without consulting
the study guide. We have tried as far as possible not to duplicate any of the prescribed
book material in the study guide.
You will be required to study only some parts of the prescribed book. The prescribed
sections are clearly indicated in this study guide. Those sections of the prescribed book,
which are not referred to in this study guide, do not form part of the prescribed material.
We will provide you with some guiding remarks or activities (questions) to ensure that
you have grasped the content of the passages you have read. We may also provide you
with additional material or explanations.
Mohr, P, Fourie, L & Associates. 2004. Economics for South African students. 3rd
edition. Pretoria: Van Schaik.
or
Mohr, P, Fourie, L & Associates. 2008. Economics for South African students. 4th
edition. Pretoria: Van Schaik.
THE PRESCRIBED BOOK
THE STUDY GUIDE
ECS1601/1 ix
The study guide has three basic functions:
It outlines the contents of the module, in other words, it indicates which parts of
the prescribed book are compulsory for the examination.
It indicates how you should approach each chapter and shows the most important
topics and diagrams (figures) you have to master.
It provides a series of questions you must answer to assess your progress and to
prepare for the examination.
The study guide is divided into 11 study units that cover the compulsory chapters of
the prescribed book.
Each study unit comprises the following sections:
Economics in action
In this section, we indicate how economics influences our everyday lives. Under this
heading, we introduce you to relevant issues in our field of study as we encounter them
in newspapers, in discussions on the bus or in the taxi, or in debates with friends, for
example, on the latest change in the petrol price. The idea of this section is therefore to
stimulate some critical and creative thinking! In this way, you should try to contextualise
the topic(s) covered in the study unit. Sometimes this section may present you with a
clear problem statement of the topic under consideration. It concludes with a number of
outcomes you should have mastered after you have studied the study unit.
Contents
The contents section guides you through the study material. Each subsection has a
heading and study instruction. If the study instruction tells you to study a section, you
need to make sure that you know the particular section well because your knowledge and
understanding of the topic covered in the subsection will be tested in the examination.
Some of us learn by memorising definitions or formulas. However, only by actually doing
something, you will realise that you can describe or define it! Therefore, after each
section or subsection we will introduce you to activities to help you practise your newly
acquired knowledge, skills and values. At the end of each study unit we will provide
answers to some of the questions (marked with an asterisk*) to guide you to the most
appropriate answer.
To be successful in economics, it is essential that you take responsibility for your learning
and practise your newly acquired skills.
Economics in action (looking back)
In this section, we refer you back to the introductory or Economics in action section.
We want to find out whether your views on the topic under consideration have changed
now that you have studied the prescribed material.
Further reading
If you want more information on the topic dealt with in the study unit, you can consult
the further reading material. This section does not form part of the prescribed study
material.
x Economics 1B
Solutions
Take care to work through the solutions. You should then get an idea of whether you
have mastered the particular sections.
Checklist
The checklist is based on the study unit outcomes listed in the study guide. In other
words, it indicates the things you should be able to do. The outcomes are divided into
different categories: Concepts, Explanations, Diagrams and Calculations. These should
give you a good indication of the kind of questions you can expect from each study unit.
Next to the items in the checklist are a number of check boxes: Well, Satisfactory,
Must redo and Need help. If you think you are able to do something really well,
for instance, explaining the monetary transmission mechanism, mark the Well box. If
you think you are able to explain it but are unsure about certain aspects or find it a bit
difficult, mark Satisfactory. If you are a bit lost but know something about the topic
and will benefit from spending more time on it, mark Must redo. If you really do not
know what is going on, mark the Need help box. In so doing you will get an indication
of what you know well, what you are coping with, on which of the sections you need
to spend more time, and with what you need help. Do not hesitate to contact one of
the lecturers should you need help. See Tutorial Letter 101 for the contact details of the
lecturers. (Do not leave this until the evening before the examination.)
We suggest the following steps in using the study guide:
Before starting to work on a study unit, first find and mark all the compulsory
material in your prescribed book, as indicated in the different sections on that
study unit.
Read the outcomes stated in the introductory Economics in action.
Read and/or study the introductory remarks and explanations about the prescribed
section in the study guide.
Study the compulsory section in the prescribed book.
Do the activities at the end of each section.
Once you have studied a section, return to the study guide and repeat the process
by progressing to the next prescribed section. Follow this procedure until you
reach the section Economics in action (looking back).
Complete the checklist. Repeat the activities where necessary or contact your
lecturer(s) if you need help.
Repeat the procedure for each of the other study units.
HOW TO USE THE STUDY GUIDE
ECS1601/1 xi
As a student you should know exactly what is expected when certain verbs are
mentioned in an activity or examination question. The verbs generally used in economics
are as follows:
Verb Description
compare Identify the similarities or differences between facts, viewpoints,
concepts or ideas
contrast/distin-
guish/what is
the difference
be-tween?
Point out the differences between certain objects or concepts
define Give a short and concise description of a subject or topic
describe Name the characteristics of an object or topic
discuss Discuss a topic by examining its various aspects
explain Explain and clarify to ensure that the reader clearly understands
you
explain with the
aid of (a) dia-
gram(s)
Draw a fully annotated diagram. Make sure all the axes and
curves are labelled. Then explain the diagram in such a manner
that the reader can follow and understand it, in other words, tell
the reader what is happening in the diagram
give/identify/list/
name
Give only the facts without any discussion
illustrate (Usually) explain your answer with the aid of a diagram (or figure)
summarise State the main points in a brief account
To be able to use a diagram (or figure) correctly, you must learn to read, to draw and to
explain a diagram:
Read: This means you have to understand the determinants (or factors) of each curve
and how they affect the specific curve.
Draw: Each diagram, and all its axes and curves, must be labelled. The initial point
of equilibrium must be indicated. If it changes, this must also be noted on the
diagram.
Explain: You should be able to explain the diagram in words.
IMPORTANT VERBS
USING DIAGRAMS
xii Economics 1B
Module outcomes Study unit
Outcome 1:
Explain the functioning of the
economy as a whole
1: Interdependence of the major sectors,
markets and flows in a mixed economy
2: The monetary sector
6: Income determination in a simple Key-
nesian macroeconomic model
7: Keynesian models including the govern-
ment and the foreign sector
8: More on macroeconomic theory and
policy
3: The public sector
4: The foreign sector
Outcome 2:
Assess the performance of the
economy
9: Inflation
5: Measuring the performance of the
economy
10: Unemployment and the Phillips curve
11: Economic growth
LAYOUT OF THE MODULE
In this part of the module we sketch a complete
picture of the circular flow of income and spending in
the economy.
HOUSEHOLDS
FOREIGN SECTOR
GOVERNMENT
FIRMS
FINANCIAL SECTOR
PART 1
The macroeconomic environment
Study unit 1:
Interdependence of the major sectors, markets
and flows in a mixed economy
Study unit 2:
The monetary sector
Study unit 3:
The public sector
Study unit 4:
The foreign sector
Study unit 5:
BANK BANK
ECS1601/1/20112013 3
STUDY UNIT 1
The macroeconomic
environment
Outcome 1: Explain
the functioning of the
economy as a whole
Interdependence of the
major sectors, markets
and flows
The monetary sector
The public sector
The foreign sector
Measuring the
performance of the
economy
Production, income and
spending
Interdependence of
households and firms
Introducing the
government
Introducing the foreign
sector
Introducing the financial
sector
Total production,
income and spending
4 Economics 1B
ECS1601/1 5
Read the following newspaper excerpt:
Optimism and hard facts
To complement enthusiasm over next years soccer World Cup, 2010 has
been branded a year of economic recovery. Economists and politicians have
high expectations that SA and the world will recover from the effects of the
financial crisis that tipped the world into a frightening recession.
Local optimism is more evident than it has been for months, even years, and
has received a boost from improved manufacturing output figures. Retail sales
figures, which disappointed in October, are also closer to stabilisation. Reserve
Bank data out last week showed that the current account deficit dropped to
3,2% of GDP, from 3,4% previously.
But this year has been characterised by rising unemployment, low imports
and exports, and contracting economic activity and none of that will change
quickly. There are also concerns about inherent weaknesses in the state of
the economy.
Business Unity SA (Busa) deputy CEO Raymond Parsons says 2010 will still
be a challenging year for business. Though there are clear signs of a recovery,
there are time lags, so when the actual turning point will occur is uncertain.
Busa has raised concerns that Eskoms 35% electricity tariff increase application
will be a setback for recovery in 2010. The economy could do without this
shock, says Parsons. Eskoms application could be modified beyond what
it has already been, and we may see this as the application process unfolds.
Another concern is the Reserve Banks figures on gross fixed capital formation,
a measure of investment, which has dropped by 4,1%, after a 0,9% decline
in the second quarter. That is the sharpest fall since the second quarter of
1999, when it dived 15%, and comes in spite of governments extensive
infrastructure programme. Investment activity partly linked to the soccer
World Cup has been a significant buoy for the economy during the recession.
The dip is largely a result of halted or postponed private-sector investment,
which fell 14,1%. But of equal concern is the slower investment by state-
owned enterprises. Eskom, for example, has had to postpone some of its
extensive capex spending because of expected financial constraints.
The construction sector has felt the pinch. Group Five CEO Mike Upton says:
Government has displayed its commitment to infrastructure, even if that
means it has to increase its debt. But we havent seen that increase translate
into new contracts yet.
The lag in activity puts severe pressure on jobs.
ECONOMICS IN ACTION
major sectors, markets and
flows in the mixed economy
6 Economics 1B
It has been said, In economics, everything is related to everything else, often in more
than one way. But what does it mean? The newspaper article above gives us pointers
to the complexity and interrelationships that exist in the economy.
In this study unit, we use circular flow models to introduce the different participants in
the economy. The major flows in the economy and the high degree of interdependence
form the basis of our understanding of macroeconomics.
After you have worked through this study unit, you should be able to
identify the three major flows in the economy
distinguish between a flow and a stock
explain the interdependence of households and firms
explain the interaction of households and firms by means of the circular flow of
goods and services and the circular flow of income and spending
identify the various economic participants
identify the various injections into and leakages from the circular flow of income
and spending
explain the interaction of the different sectors in the economy by means of the
circular flow of income and spending
There are other inhibiting factors. The strong rand has affected SAs manu-
facturing sector, particularly exports. It has also hit the bottom lines of SA
companies with international operations. Debates about government or
Reserve Bank intervention to stabilise the volatile currency rage on.
Looking beyond the recession, Parsons makes a valuable point. In 2007, the
economy was already heading for a soft landing. The global crisis converted
that dip into a hard landing.
He says the constraints on growth that led to 2007s economic easing
whether derived from macroeconomics, industrial development, labour
markets or trade policy still exist today.
Labour-absorption strategies, for example, have still not been implemented to
curb SAs high unemployment rate. The need to boost manufactured exports,
which grew as little as 2,7% even when the rand was weak, has also been
emphasised. And growing rates of savings and investment should also be high
on the agenda.
For stronger and sustainable growth, SA has to re-examine its strategies to
sort out these weaknesses.
They are the same constraints that were identified almost three years ago
by the Harvard group of economists, the OECD and the Commission on
Growth & Development, headed by Michael Spence, says Parsons. Until these
inherent weaknesses are addressed, he believes SAs economy will continue
to grow at far less than its potential. By Razina Munshi. Published on the web
by Business Day on December 18, 2009.
ECS1601/1 7
1.1 Production, income and spending
The three basic macroeconomic flows are introduced in this section. The magnitudes of
these flows are discussed in study unit 2 under the heading Three methods to calculate
the GDP. The three methods to measure the GDP (spending, income and production)
actually involve measuring the same flow, but they are calculated at different points in
the circular flow. You should know what the difference between a stock and a flow is.
Indicate whether the following statements are true (T) or false (F):
Note: Answers are provided at the end of this study unit.
T F
(1) The three major flows in the economy as a whole are total
production, total income and total spending.
(2) The two basic sets of participants in any economy are house-
holds and firms.
(3) Production is a stock and income is a flow.
(4) The balance on your savings account on a particular day is a
stock variable.
(5) Consumption is a flow variable.
(6) Investment is a stock variable.
(7) Capital is a stock variable.
Short questions
(a) What is the difference between production and income? (4)
(b) Name the three major flows in the economy as a whole and explain how they are
related. (6)
(c) What is the difference between a stock variable and a flow variable? Give one
example of each. (4)
CONTENTS
STUDY
Section 3.1 of the prescribed book
Box 3-1 of the prescribed book
ACTIVITY 1.1
8 Economics 1B
1.2 Interdependence of households and firms
Study this section to ensure that you know how households and firms, the two basic
sectors in a market economy, are interrelated the circular flow of goods and services
and the circular flow of income and spending.
ACTIVITY 1.2
T F
(1) Members of households are called consumers.
(2) Consumers are rational, in other words, they will always
try to maximise their satisfaction given the means at their
disposal.
(3) Households are responsible for the spending on consumer
goods.
(4) Capital goods are purchased by firms.
(5) Firms are mainly involved in consumption while households
are mainly involved in production.
(6) There are two sets of markets in the economy: goods mar-
kets (for example, the market for tomatoes) and factor mar-
kets (for example, the labour market).
(7) Firms purchase in the factor markets and sell in the goods
markets.
(8) Households sell in the factor markets and purchase in the
goods markets.
Short questions
(a) What are the two basic sets of markets in the economy? (4)
(b) Explain the goods and services circular flow by means of a figure. (4)
(c) Explain the income and spending circular flow by means of a figure. (4)
STUDY
ACTIVITY 1.2
ECS1601/1 9
1.3 Introducing the government
This section introduces you to the government. Make sure that you know what the
government sector entails and how it is related to households and firms. Note that
government spending is an injection into the circular flow of income and spending, while
taxes are a withdrawal from it.
T F
(1) The major flows associated with government are government
spending, taxes and transfer payments.
(2) Taxes are a leakage (or withdrawal) from the circular flow of
income and spending.
(3) Government spending is an injection into the circular flow of
income.
Short question
(a) Illustrate the linkages between government, households and firms using the
circular flow model of income and spending. (6)
1.4 Introducing the foreign sector
In this section, the foreign sector is added to the model, which means that exports and
imports have to be included too. It is important to note that exports are an injection
into the circular flow of income and spending, while imports are a withdrawal from it.
STUDY
STUDY
ACTIVITY 1.3
10 Economics 1B
T F
(1) An open economy is an economy in which no government
intervention exists.
(2) The foreign sector is linked to the domestic flow of income
and spending through imports and exports.
(3) Exports are a leakage (or withdrawal) from the circular flow
of income and spending.
(4) Imports are an injection into the circular flow of income.
Short question
(a) Illustrate the linkages between the foreign sector and government, households
and firms using the circular flow model of income and spending. (8)
1.5 Introducing the financial sector
The last sector to be added to our circular flow model is the financial sector, which
serves as a link between those who save and those who require finance for investment
spending.
ACTIVIY 1.5
T F
(1) Investment is a leakage (or withdrawal) from the circular
flow of income and spending.
(2) Saving is an injection into the circular flow of income.
ACTIVITY 1.4
ACTIVITY 1.5
STUDY
ECS1601/1 11
Short question
(a) Illustrate how the financial sector fits into the circular flow of income and
spending. (10)
1.6 Total production, income and spending: A summary
This section summarises the components of total spending in the economy. Make sure
that you know what the symbols C, I, X, G, Z, T and S represent.
(a) List
(i) three important injections into the basic circular flow of income and
spending
(ii) three important leakages or withdrawals from this flow (6)
(b) List the components of the total spending on goods and services produced in the
economy and summarise them by using an equation. (6)
Now that you have worked through this study unit and have gained a better understanding
of how the macroeconomy can be simplified with the aid of a circular flow model, has
your picture changed of how the different sectors in the economy interact?
As stated in the introduction to this study guide, this section is not for examination
purposes.
Read the following newspaper excerpt. Do you think the advisers take too narrow a
view of the different interrelationships in the economy?
ACTIVITY 1.6
STUDY
ECONOMICS IN ACTION
(LOOKING BACK)
FURTHER READING
12 Economics 1B
ACTIVITY 1.1
TRUE/FALSE STATEMENTS
(1) T
(2) T
(3) F
(4) T
(5) T
Readers tips to Pravin
Fin24.com readers were quick to respond to the treasurys Budget tips
invitation, dishing out suggestions on how incentives may work towards
solving national issues.
Eskoms power supply woes were on numerous readers minds, including
Mohamed Loonat, who said the power utilitys rebate system for solar geyser
is ineffective.
Why not make it mandatory for short-term insurers to replace all geysers
as and when they burst with solar geysers of an acceptable quality? asked
Loonat. That way, Eskom saves money being paid out of its finances, and the
solar geyser roll-out is done on a mass scale, in an orderly fashion and with
minimal red tape or delays.
It also means no additional cost to customers, and the insurance company
bears the cost it would have anyway for replacing the burst geysers.
Hermann Botha, claiming to speak for retired individuals, said government
should do more to encourage working South Africans to save.
Please increase the [tax] limit which a person can deduct for making
investments. The [low] interest rate is hitting our pockets badly and we need
help. I am sure this is also one way to encourage people to save.
Similarly, a reader said tax deductions on savings aimed at education costs
should be tax deductable.
I think that if this were the case there would be a big drive by parents to
invest in their childrens education, the reader said. This will lessen the
burden on government and ensure that our children do not get into debt
traps via student loans even before they have started their working careers.
Ashraf Khan had the following suggestion for ensuring the stadiums are full
during the 2010 Fifa World Cup: Good day Pravin, greetings from Doha. Can
you please issue a ruling that all money paid for World Cup tickets will be tax
deductible? he asked.
Charlie Nicolls said government can save a lot of money by cutting on
duplication. For example, he said having to fork out on provincial governments
is unnecessary. Surely the simpler route is to have a national government that
has its ear close to what the public want, he said. Why do we need all this
duplication and enormous cost?
Finance Minister Pravin Gordhan will deliver the National Budget in parliament
on Wednesday. By Nicole Rego. Published on the web by Fin24.com on
February 16, 2010.
SOLUTIONS
ECS1601/1 13
(6) F
(7) T
ACTIVITY 1.2
(1) T
(2) T
(3) T
(4) T
(5) F
(6) T
(7) T
(8) T
ACTIVITY 1.3
(1) T
(2) T
(3) T
ACTIVITY 1.4
(1) F
(2) T
(3) F
(4) F
ACTIVITY 1.5
(1) F
(2) F
14 Economics 1B
Well Satis-
factory
Must
redo
Need
help
Concepts
I am able to
identify the three major flows in the
economy
distinguish between a flow and a
stock
identify the two basic sets of markets
in the economy
identify the various economic partici-
pants/list the components of total
spending
identify the various injections into
and leakages from the circular flow
of income and spending
Diagrams
I am able to show the following
with the aid of a diagram
the interaction of households and
firms by means of the circular flow of
goods and services and the circular
flow of income and spending
figures 3-2 and 3-3
the interaction of the different
sectors in the economy by means
of the circular flow of income and
spending figures 3-4 to 3-7
CHECKLIST
ECS1601/1/20112013 15
STUDY UNIT 2
The macroeconomic
environment
Outcome 1: Explain
economy as a whole
and flows
The monetary sector
The public sector
The foreign sector
Measuring the
performance of the
economy
Functions of money
Different kinds of
money
Money in South Africa
Financial intermediaries
The South African
Reserve Bank
The supply of money
The demand for money
Equilibrium in the
money market
Instruments of
monetary policy
16 Economics 1B
ECS1601/1 17
Inflation figures add weight to case for further rate cut
Further job losses in the third quarter and news that inflation remained safely
below the Reserve Banks 3 percent to 6 percent target range for the second
month in a row have strengthened the case for a rate cut.
However, despite the two sets of data released on Tuesday by Statistics SA,
the market is not expecting a further cut in the repo rate when the banks
monetary policy committee meets next month.
Forward rate agreements contracts which run for three months starting at
some point in the future show market players see little chance of any change
in the repo rate from 7 percent in the first half of next year, according to Ian
Cruickshanks, Nedbank Capitals head of strategic research.
The bank cut its repo rate by 5 percentage points over the past year, restoring
it to the level it was at before the series of rate hikes began in June 2006.
New bank governor Gill Marcus left the repo rate unchanged last month and
economists are divided on whether there should be another cut.
Azar Jammine, the chief economist at Econometrix, and Annabel Bishop, the
Investec group economist, argued that a high base effect in coming months
would push inflation back through the ceiling for some time.
Bishop said: The situation will be exacerbated when Eskom institutes its still
hefty tariff hike in the middle of next year, should the 35 percent be approved.
On the need to stimulate growth, she argued that the global recovery
seemingly under way should drive growth with the demand side and job
creation lagging.
But Brait economist Colen Garrow said the bank should look through the
noise, including the price spikes which are likely to occur during the 2010
World Cup, and cut rates again to stimulate growth.
He said: There will be a lot of pressure on policymakers next year to do
things differently. He was referring to demands from Cosatu to extend the
banks mandate to include economic growth, rather than its single mandate
to preserve the rands value by targeting inflation. The union federation has
called for the repo rate to be cut as low as 3 percent.
Though they disagree on the need for a further rate cut, both Jammine and
Garrow argue that the target range should be raised temporarily to 7 percent,
to allow for the impact of Eskoms electricity price hikes. The utility has asked
for a 35 percent hike in each of the next three years. Bishop supports this
view.
ECONOMICS IN ACTION
The monetary sector
18 Economics 1B
A rate cut? The repo rate? Monetary policy? Yes, the time has arrived to have a closer
look at the financial sector.
explain what money is and explain its functions
define M1, M2 and M3
discuss the functions of the SARB
explain and illustrate with the aid of a diagram the interaction between the interest
rate and the demand for money
discuss the instruments of monetary policy
2.1 Functions of money
We start our investigation of the monetary sector with a closer look at money. Study the
functions of money in detail.
But Cruickshanks argued against the option, which would put the ceiling at
more than twice the inflation rate expected in major trading partner countries.
And he said that to change the target would compromise its credibility.
Meanwhile, the strong rand still has a benign effect on the inflation outlook.
Bishop said: Its trade-weighted strength has contributed to the inflation
target being attained.
She predicts the rand will average R7.20 a dollar in the first quarter of next
year, from R7.40 this quarter, which will push the consumer price index back
within target in March.
Ironically there is pressure from Cosatu and others to weaken the currency,
a measure which would stoke inflation and reduce the scope for relaxing
monetary policy. By Ethel Hazelhurst. Published on the web by Business
Report on December 16, 2009.
CONTENTS
STUDY
ACTIVITY 2.1
ECS1601/1 19
T F
(1) An economy in which goods are traded for other goods is
called a barter economy.
(2) The use of money eliminates the need for a double coin-
cidence of wants associated with a barter economy.
(3) The essential function of money is that it serves as a medium
of exchange (or means of payment).
(4) When inflation is experienced, money loses some of its use-
fulness as a store of value.
(5) Individuals can hold their wealth in the form of money only,
in other words money is the only possible store of value.
(6) Money is a financial asset.
(7) During inflation it is often more advantageous to keep
certain assets other than only money.
(8) Wealthy people generally keep most of their assets in the
form of money.
Short questions
(a) What is the difference between a monetary economy and a barter economy?
(2)
(b) List the three basic functions of money and explain briefly what each one means.
(6)
(c) Define money. (3)
(d) Differentiate between money, income and wealth. (3)
2.2 Different kinds of money
This section deals with the different kinds of money. It is important to note that originally
the intrinsic value and exchange value of money were the same (for example, a gold
coin). At present, the intrinsic value of money is nothing (the paper value of a note is
nothing), but the exchange value is high (think about a R200 note). In other words, its
value is based on confidence.
STUDY
20 Economics 1B

T F
(1) The South African money supply is fully backed by the
amount of gold in the vaults of the SARB.
(2) Demand deposits can be withdrawn immediately by writing
out a cheque (which is generally accepted as payment) and
therefore demand (or cheque) deposits form part of the
quantity of money.
Short questions
(a) List four properties a commodity must have in order to serve as money. (4)
(b) Why are credit cards not seen as money? (2)
2.3 Money in South Africa
The different measures of the quantity of money used by the SARB are introduced in
this section. You must be able to define M1, M2 and M3. Note that demand deposits are
greater than coins and banknotes in equation 15-1.
T F
(1) The quantity of money in South Africa consists largely of
coins and banknotes.
(2) In South Africa, there are at least three different measures of
the quantity of money: M1, M2 and M3.
(3) M1 is the narrowest measure of money and consists of coins,
notes and demand deposits.
(4) M1 relates to the function of money as a medium of exchange.
ACTIVITY 2.3
ACTIVITY 2.2
STUDY
ECS1601/1 21
Short question
(a) What is the main difference between M1, M2 and M3? (2)
2.4 Financial intermediaries
The place of the financial sector in the economy, as introduced in section 3.5 of the
prescribed book, is revisited in this section. Take note of the main function of financial
intermediaries (to act as an intermediary between the surplus units and deficit units in
the economy).
T F
(1) The major function of a financial intermediary such as a bank
is to act as a link between the surplus units in the economy
and the deficit units.
(2) Interest is the amount that a borrower has to pay a lender
for the use of the funds concerned.
Short questions
(a) Distinguish between real and financial transactions. (2)
(b) Explain the basic function of a financial intermediary. (3)
2.5 The South African Reserve Bank
The functions of the South African Reserve Bank (SARB) are explained in this section.
The central bank plays an important role in the South African economy and you must
know what its main functions are.
STUDY
STUDY
ACTIVITY 2.4
22 Economics 1B
Short questions
(a) List four of the functions of the SARB. (4)
(b) Explain what is meant by a clearing bank. (2)
(c) Explain the term lender of last resort. (3)
2.6 The supply of money
The various factors that can influence the supply of money are discussed in this section.
You must take note of how banks can create money. Though you will not be asked to do
calculations using equations 15-2 and 15-3, you must be able to explain the role of the
credit multiplier in the money creation process. The conclusion reached in this section,
that the supply of money in South Africa is essentially a function of the demand for
money, will be revisited when we discuss the money market.
T F
(1) The cash reserve requirement of any South African bank is
held in a non-interest-bearing account with the SARB.
(2) The money creation process is based on the ability of banks
to lend part of the deposits they receive to other customers.
(3) Banks can create demand deposits by granting credit to their
clients in the form of overdraft facilities.
(4) When a person deposits cash in a cheque account there is no
immediate change in the quantity of money.
(5) The greater the monetary base, the more opportunities
there are for creating money.
(6) Transactions with foreign countries do not influence the
domestic money supply.
ACTIVITY 2.5
ACTIVITY 2.6
STUDY
ECS1601/1 23
T F
(7) Payments for imports have a negative impact on the quantity
of money.
(8) When a countrys foreign reserves increase, its money
supply generally decreases.
(9) Government transactions can influence the money supply.
Short questions
Note: The solution to the question marked with an asterisk (*) is provided at the end
of this study unit.
(a) *Briefly explain how money can be created through the granting of credit (in the
form of overdraft facilities). (5)
(b) What is the main determinant of the credit multiplier? (2)
2.7 The demand for money
The various aspects of the demand for money are summarised in table 15-2 and figure
15-1. Study this section in detail.
T F
(1) The opportunity cost of holding money is the interest that
could have been earned by holding interest-bearing assets
(for example, bonds) instead.
(2) The demand for money arises from the functions of money
as a medium of exchange and as a store of value.
(3) The quantity of money demanded for transaction purposes
is related to the function of money as a medium of exchange.
(4) The demand for money for speculative purposes arises from
the function of money as a store of value.
STUDY
Table 15-2 The demand for money (or liquidity preference): a summary
ACTIVITY 2.7
24 Economics 1B
T F
(5) There is a positive relationship between the quantity of
money demanded for speculative purposes and the level of
income.
(6) Since money is the most liquid of all assets, the demand for
it is also called liquidity preference.
(7) The quantity of money demanded for transactions and
precautionary purposes is also called the demand for active
balances and is related to the level of income in the economy.
(8) If the interest rate is high, the quantity of money demanded
for speculative purposes will also be high.
(9) The demand for passive balances refers to the precautionary
demand for money.
(10) There is an inverse relationship between the interest rate
and the quantity of money demanded for speculative pur-
poses.
(11) The total quantity of money demanded depends on the level
of income and the interest rate.
(12) An increase in income will result in an increase in the
quantity of money demanded at each interest rate, which
can be illustrated by a rightward shift of the money demand
curve.
Short questions
of this study unit.
(a) What is the opportunity cost of holding money? (2)
(b) Define the demand for money. (2)
(c) Name the three motives for holding money distinguished by John Maynard
Keynes. (3)
(d) What is the main determinant of
(i) the quantity of money demanded for transaction purposes?
(ii) the quantity of money demanded for precautionary purposes?
(iii) the quantity of money demanded for speculative purposes? (3)
(e) Distinguish between active balances and passive balances and name the main
determinant of the quantity demanded of each type. (5)
(f) *Use diagrams to illustrate how the total demand for money (or liquidity
preference) in the economy is made up. (6)
ECS1601/1 25
2.8 Equilibrium in the money market
In the previous section, we established that the demand for money is a function of both
income and the rate of interest. We also saw that the money supply (or quantity of
money) depends largely on the cost of credit (that is, the interest rate). In this section,
the money market is derived. Study it carefully.
Short questions
(a) Explain a demand-determined money supply. (6)
(b) Using a diagram, explain equilibrium in the money market. (6)
2.9 Instruments of monetary policy
Monetary policy can be defined as the measures that monetary authorities take to
influence the quantity of money or the rate of interest with a view to achieving stable
prices, full employment and economic growth. In South Africa, the SARB formulates and
implements monetary policy.
You should be able to define monetary policy, distinguish between direct or non-market-
oriented measures and market-oriented measures, and provide examples of each type.
Pay particular attention to accommodation policy and open-market policy.
STUDY
STUDY
ACTIVITY 2.8
Section 15.9 of the prescribed book is not prescribed for this module
26 Economics 1B
T F
(1) In South Africa, monetary policy is formulated and imple-
mented by the SARB which is the countrys monetary
authority.
(2) The use of open-market policy and accommodation policy
are classified as market-oriented monetary policy measures.
(3) An increase in the rate of value-added tax from 14 to 15 per
cent can be classified as a market-oriented monetary policy
measure.
(4) The rate at which the SARB grants accommodation to the
banks is called the repo rate.
(5) Changes in the repo rate are part of the SARBs accommo-
dation policy.
(6) If the SARB wishes to apply a contractionary monetary
policy, it can raise the repo rate.
(7) When the price of bonds increases, the market rate of
interest also increases.
(8) There is an inverse relationship between the price of bonds
and the market interest rate.
(9) An increase in the supply of bonds will raise the price of
bonds and lower the interest rate.
Short questions
(a) Define monetary policy and name any three instruments of monetary policy. (5)
(b) List three market-oriented instruments of monetary policy in South Africa. (3)
(c) Identify two direct or non-market-oriented instruments of monetary policy. (2)
(d) Define the repo rate and explain how it can be used as an instrument of a contra-
ctionary monetary policy. (6)
(e) Define accommodation policy and explain how it should be applied if the central
bank wishes to stimulate economic activity. (6)
(f) Explain what open-market policy means. (3)
(g) Explain briefly how open-market policy can be used to stimulate economic activity
in the economy. (3)
ACTIVITY 2.9
ECS1601/1 27
of what money and the monetary sector are all about, do you still think the issues raised
at the start of this study unit are so confusing?
Remember that this section is not for examination purposes.
Read section 15.9, The monetary policy framework in South Africa, of the prescribed
book. Do you think that the SARB is going to achieve its ultimate objective of balanced
and sustainable economic growth?
ACTIVITY 2.1
(1) T
(2) T
(3) T
(4) T
(5) F
(6) T
(7) T
(8) F
ACTIVITY 2.2
(1) F
(2) T
ACTIVITY 2.3
(1) F
(2) T
(3) T
(4) T
Section 15.11 of the prescribed book is not prescribed for this module.
ECONOMICS IN ACTION
(LOOKING BACK)
FURTHER READING
SOLUTIONS
28 Economics 1B
ACTIVITY 2.4
(1) T
(2) T
ACTIVITY 2.6
(1) T
(2) T
(3) T
(4) T
(5) T
(6) F
(7) T
(8) F
(9) T
SHORT QUESTIONS
(a) Start by explaining that money consists of notes and coins (C) and demand
deposits (D). Demand deposits can be activated by writing out cheques and are
very convenient ways of holding money. A major feature of the financial system
is that banks can create demand deposits by granting credit to their customers
(in the form of overdraft facilities). They can do this because they only have to
keep a fraction of customers deposits in the form of cash reserves. Therefore,
if customer A deposits R1 000 at a bank and the required cash reserve ratio is
20%, the bank only has to keep R200 and can lend the remaining R800 to other
customers. In this way, banks can create credit to the amount of a multiple of
their cash reserves.
ACTIVITY 2.7
(1) T
(2) T
(3) T
(4) T
(5) F
(6) T
(7) T
(8) F
(9) F
(10) T
(11) T
(12) T
SHORT QUESTIONS
(f) All that is required here is a reproduction of figure 15-1 in the prescribed book
accompanied by a short written explanation. You should mention that the total
ECS1601/1 29
demand for money consists of the demand for active balances, which depends
on the income level (not the interest rate), and the demand for passive balances,
which is inversely related to the interest rate. Proceed by providing two fully
annotated diagrams (as in figure 15-1).
ACTIVITY 2.9
(1) T
(2) T
(3) F
(4) T
(5) T
(6) T
(7) F
(8) T
(9) F
Well Satis-
factory
Must
redo
Need
help
Concepts
I am able to
list the functions of money
define money
list the properties of money
list the functions of the SARB
define the demand for money
identify the motives for holding
money and the main determinant of
each
define monetary policy
list the market-oriented monetary
policy instruments
list the non-market-oriented mon-
etary policy instruments
define the repo rate
Explanations
I am able to
explain the difference between M1,
M2 and M3
CHECKLIST
30 Economics 1B
Well Satis-
factory
Must
redo
Need
help
differentiate between money, in-
come and wealth
explain why credit cards are not seen
as money
explain the basic function of a finan-
cial intermediary
explain a demand-determinant money
supply
Diagrams
I am able to
(i) show on a diagram
(ii) explain with or without the
aid of a diagram
the demand for money figure 15-1
the effect of a change in income on
the demand for money figure 15-1
the effect of a change in the interest
rate on the demand for money
figure 15-1
money market equilibrium figure
15-2
the effect of a change in income on
money market equilibrium figure
15-2
the effect of a change in interest
rate on money market equilibrium
figure 15-2
ECS1601/1/20112013 31
STUDY UNIT 3
The macroeconomic
environment
Outcome 1: Explain
economy as a whole
and flows
The monetary sector
The public sector
The foreign sector
Measuring the
performance of the
economy
Role of government in
the economy
How does government
intervene?
Government failure
Nationalisation and
privatisation
Fiscal policy and the
budget
Government spending
Financing of
government spending
Taxation
Taxation in South Africa
Tax incidence
32 Economics 1B
ECS1601/1 33
Taxes. Yes, what a dreadful word. But we can hardly discuss the role of government in
the economy without raising the question of taxes. Why do we have to pay taxes? Surely,
government can find alternative ways to finance the promised free education, housing
and basic services? In this study unit, we will investigate the different aspects of the public
or government sectors role in the economy, particularly the level and composition of
government spending, the financing of government spending, taxation and fiscal policy.
explain briefly why government is involved in economic activity
explain how government intervenes in the economy
discuss government failure
discuss nationalisation and privatisation
explain how government spending can be financed
Sin tax hike no deterrent for some
Drinkers and smokers seemed unconcerned by the increase in the cost of
their tipple and puff.
Beer drinkers will pay 6.5c more for a 340ml bottle, wine will increase by 12c
per 750ml, spirits by R2.22 per 750ml and a packet of 20 cigarettes will go up
by R1.24.
Why do they try to discourage people from drinking and smoking? Why cant
people make up their own minds? was the response from draftsman Ziyaad
van Greenen, who was enjoying a R2 loose cigarette and a R12 draught at
a Joburg CBD bar.
Its all a scheme. I dont know what the motive is, but its a scheme by the
government, he said of the plot to target sin taxes.
Steven Setsiphane said the continued increase in the price of cigarettes had
forced him to smoke fake cigarettes. I rather buy the fong kong. Its bad, but
its what I can afford, he said.
The National Council Against Smoking, however, bemoaned the meagre
increase and a policy which keeps tobacco taxes low and so favours the
tobacco companies at the expense of public health and government revenues.
It criticised the fact that in South Africa tax amounted to only 50 percent of the
cost of cigarettes compared to countries like Ireland, where tax constituted 79
percent of a packet - which cost the equivalent of R93 there. By Beauregard
Tromp. Published on the web by Business Report on February 18, 2010
ECONOMICS IN ACTION
The public sector
34 Economics 1B
explain the criteria for a good tax
discuss the various types of taxes
explain what has happened to the tax burden in South Africa
explain what is meant by the term tax incidence
explain the impact of an excise tax (with and without the use of a diagram)
define and explain fiscal policy
3.1 Role of government in the economy: An overview
In chapter 2 of the prescribed book, we suggested that nowadays all economies can be
classified as mixed economies in which the government, the private sector and market
forces all play an important role. The appropriate mix of markets and government
intervention is investigated in this section.
The role of government in the economy can be summarised by distinguishing between
three broad functions of government:
the allocative function, which refers to the role of government in correcting
market failure and achieving a more efficient allocation of resources
the distribution function, which refers to the steps government takes to achieve a
more equitable or socially acceptable distribution of income than that generated
by market forces
the stabilisation function, which refers to the measures government takes to
promote macroeconomic stability (for example, full employment, price stability
and balance-of-payments stability)
T F
(1) General government consists of central, provincial and local
government.
(2) Adam Smith argued for extensive government intervention
in the economy because of market failure.
CONTENTS
STUDY
ACTIVITY 3.1
ECS1601/1 35
T F
(3) The existence of externalities prevents the attainment of a
socially efficient allocation of resources in the economy.
(4) Market systems tend to generate unequal distributions of
personal income.
(5) The allocation function of government refers to actions by
government to promote an efficient allocation of resources
in the economy.
(6) The stabilisation function of government refers to measures
taken to promote political stability in the country.
Short question
(a) Give two reasons for government intervention in the economy. (2)
3.2 How does government intervene?
Having had a look at the reasons for government intervention in the economy, we now
turn to the question of how government intervenes. You should be able to discuss the
different options available to government.
Short question
(a) Discuss the instruments available to government to achieve its objectives. (10)
3.3 Government failure
Contrary to popular belief, government can also fail. In this section, we examine some
of the forms of government failure.
STUDY
STUDY
Sections 16.2 and 16.3 of the prescribed book are not prescribed for this
module.
ACTIVITY 3.2
36 Economics 1B
Indicate whether the following statement is true (T) or false (F):
Note: The answer is provided at the end of this study unit.
T F
(1) Government failure arises when politicians, bureaucrats and
other interest groups put their own interests before those
of society as a whole.
Short question
(a) Discuss the different forms of government failure. (8)
3.4 Nationalisation and privatisation
In this section, the desirability of nationalisation compared to privatisation is investigated.
Ensure that you are familiar with the arguments for and against each.
T F
(1) Privatisation could improve efficiency, but it might have an
adverse impact on employment.
Short questions
(a) Distinguish between nationalisation and privatisation, and give a practical example
of each. (4)
(b) Briefly discuss the arguments for and against nationalisation and privatisation. (8)
ACTIVITY 3.4
ACTIVITY 3.3
STUDY
ECS1601/1 37
3.5 Fiscal policy and the budget
This section introduces fiscal policy, one of the most important types of economic
policy, which is analysed in part IV of the prescribed book. You should be able to define
fiscal policy and distinguish between fiscal policy and monetary policy. Note also the
meaning of demand management, expansionary (or stimulatory) policy and restrictive
(or contractionary) policy.
T F
(1) The annual budget sets out the joint fiscal and monetary
policy of the government and the SARB for the coming
financial year.
(2) Changes in taxes and government expenditure represent
fiscal policy decisions.
(3) Government could use the budget to try to influence vari-
ables such as total production, income and employment and
to redistribute income in the economy.
(4) Government should implement restrictive fiscal policy
measures during a recession.
Short questions
(a) Define fiscal policy and list the major instruments of fiscal policy. (5)
(b) Distinguish clearly between fiscal policy and monetary policy. (4)
(c) Suppose the government wishes to stimulate economic activity by applying
expansionary monetary and fiscal policy. Name one monetary policy step and one
fiscal policy step which can be taken. (2)
STUDY
ACTIVITY 3.5
38 Economics 1B
3.6 Government spending
Note how government spending has increased in South Africa. You should be able to
explain the causes of this trend. Also, note the changes in the composition of government
spending.
T F
(1) Government spending in South Africa consists largely of
spending on capital goods (that is, investment spending).
(2) Changes in the level and composition of government spend-
ing sometimes reflect changes in social priorities but could
also be the result of the influence of powerful special interest
groups.
(3) Political shocks and other major disturbances could exert
strong upward pressure on government spending.
(4) Excessive or unrealistic expectations about what government
can deliver (for example, in the form of improved education,
health and housing) could exert upward pressure on real
government spending.
(5) Both a rapidly growing population and a high rate of
urbanisation tend to exert upward pressure on government
spending.
Short question
(a) Give four reasons for the growth in government spending in South Africa since
1960. (4)
ACTIVITY 3.6
STUDY
ECS1601/1 39
3.7 Financing of government spending
Study the different ways in which government spending can be financed. Note how public
debt and the interest on public debt have increased (the latter to a point where almost
20 cents out of each rand of tax revenue are used to finance the interest payments).
T F
(1) The budget deficit (or surplus) is the difference between
government spending and current revenue (mainly taxes).
(2) The budget deficit is usually financed through taxation.
(3) If government finances part of its spending by borrowing
from the central bank, this is called inflationary financing.
(4) A budget surplus occurs when government purchases of
goods and services exceed the tax revenue it has received.
Short questions
(a) Identify the three broad ways in which government spending can be financed. (3)
(b) Define the budget deficit. (2)
3.8 Taxation
Criteria for a good tax
Study the three criteria for a good tax.
Different types of tax
You should be able to distinguish between direct taxes and indirect taxes and give examples
of each. You should also be able to distinguish between progressive, proportional and
regressive taxes and provide examples of each.
STUDY
ACTIVITY 3.7
STUDY
40 Economics 1B
T F
(1) Taxes that distort relative prices inhibit the functioning of
the market mechanism and are not neutral.
(2) Taxes should always be aimed at changing the economic
behaviour of taxpayers.
(3) An admission fee at a public swimming pool is an example of
user charging.
(4) Tax avoidance refers to the practice of using illegal ways of
avoiding taxes.
(5) Tax evasion is illegal.
(6) Direct taxes are levied directly on goods and services.
(7) A tax is progressive if lower income groups pay a smaller
percentage of their taxable income in the form of tax than
higher income groups pay.
(8) A tax is regressive if it takes a greater percentage of the tax-
able income of lower income groups than of higher income
groups.
Short questions
(a) List the three basic criteria for a good tax. (3)
(b) Explain the difference between direct taxes and indirect taxes, and give an
(c) Explain the difference between progressive and regressive taxes, and give an
3.9 Taxation in South Africa
You must be able to distinguish between marginal and average tax rates. Note how the
overall tax burden and the personal income tax burden have increased in South Africa in
recent decades. Please note that the tables are provided to illustrate certain trends. You
are not expected to study the data (figures) contained in these tables!
STUDY
ACTIVITY 3.8
ECS1601/1 41
T F
(1) The South African government raises most of its tax revenue
through personal income tax and value-added tax.
(2) Company tax is the most important source of tax revenue in
South Africa.
(3) The marginal tax rate is the rate at which every additional
rand is taxed (for example, in the case of personal income
tax).
(4) Personal income tax in South Africa is a progressive tax.
(5) Company tax in South Africa is an example of a proportional
tax.
(6) Value-added tax is a regressive tax.
Short question
(a) Explain the difference between a marginal tax rate and an average tax rate (in
respect of personal income tax). (2)
3.10 Tax incidence: Who really pays taxes?
This section contains an analysis of the incidence of an excise tax. This application of
demand-and-supply analysis should be studied in detail.
T F
(1) Government can always specify precisely who will ultimately
bear the burden of a tax.
STUDY
Section 16.12 of the prescribed book except the subsection on the welfare implications
of a specific excise tax
ACTIVITY 3.9
ACTIVITY 3.10
42 Economics 1B
T F
(2) The statutory or legal incidence of a tax often differs from its
effective incidence.
(3) It is always easy to identify the effective incidence of a
tax since the person who pays the Receiver of Revenue is
actually the one who bears the burden of the tax.
(4) The degree to which the burden of a tax can be shifted
depends on the price elasticities of the demand and supply
of the goods and services in question.
(5) An increase in the excise tax on beer will affect only the
consumers and producers of beer.
(6) An increase in the excise tax on wine could affect workers in
the wine industry.
Short questions
of this study unit.
(a) Explain the difference between the statutory (or legal) incidence of a tax and the
effective incidence thereof. (4)
(b) *Use a diagram to explain the incidence of a specific excise tax on a good. Name
the three parties who have to share the burden of the tax and clearly indicate the
impact on each party. (10)
Having worked through this study unit, do you also get the feeling that the Minister of
Finance must be an ex-Unisa student? We are sure that you will listen to and watch the
delivery of the next budget speech with great interest (and with comments to spare).
Read section 16.2, Market failure (as justification for government intervention, of the
prescribed book. Do you agree with the reasons given to justify government involvement
in the economy? If not, how do you think the problems raised in this section can be
overcome?
ECONOMICS IN ACTION
(LOOKING BACK)
FURTHER READING
ECS1601/1 43
ACTIVITY 3.1
(1) T
(2) F
(3) T
(4) T
(5) T
(6) F
ACTIVITY 3.3
(1) T
ACTIVITY 3.4
(1) T
ACTIVITY 3.5
(1) F
(2) T
(3) T
(4) F
ACTIVITY 3.6
(1) F
(2) T
(3) T
(4) T
(5) T
ACTIVITY 3.7
(1) T
(2) F
(3) T
(4) F
SOLUTIONS
44 Economics 1B
ACTIVITY 3.8
(1) T
(2) F
(3) T
(4) F
(5) T
(6) F
(7) T
(8) T
ACTIVITY 3.9
(1) T
(2) F
(3) T
(4) T
(5) T
(6) T
ACTIVITY 3.10
(1) F
(2) T
(3) F
(4) T
(5) F
(6) T
SHORT QUESTIONS
(b) Here you have to provide a diagram similar to the one in figure 16-3 in the
prescribed book. Remember to label the axes and curves and to distinguish
clearly between the original supply curve (before the imposition of the tax) and
the new supply curve (after the imposition of the tax). Mention that the burden
will be shared by the consumers of the product, the owners or shareholders of
the firms in the industry and the workers employed in the industry, and indicate
the distribution in your particular diagram. Again, the marks will be divided
roughly equally between the diagram and the accompanying explanation.
ECS1601/1 45
Well Satis-
factory
Must
redo
Need
help
Concepts
I am able to
define fiscal policy
name the instruments of fiscal policy
Explanations
I am able to
explain briefly why government is
involved in economic activity
explain how government intervenes
in the economy
explain government failure
explain nationalisation and privati-
sation
explain how government spending
can be financed
explain the criteria for a goods tax
explain the difference between
direct and indirect taxes
progressive, proportional and
regressive taxes
explain what is meant by the term
tax incidence
explain the difference between the
legal and the effective incidence of
an excise tax
Diagrams
I am able to show and explain
the following with the aid of a
diagram
the impact of an excise tax figure
16-3
CHECKLIST
46 Economics 1B
NOTES
ECS1601/1/20112013 47
STUDY UNIT 4
The macroeconomic
environment
Outcome 1: Explain
economy as a whole
and flows
The monetary sector
The public sector
The foreign sector
Measuring the
performance of the
economy
Why countries trade
Trade policy
The balance of
payments
Exchange rates
Terms of trade
48 Economics 1B
ECS1601/1 49
Rand volatility remains a concern treasury official
The volatility of the exchange rate remains a concern, Lesetja Kganyago,
Director General of the National Treasury said on Tuesday.
The volatility of the rand made it difficult for small and medium sized exporters
to invest in production capacity or for importers to plan for the costs of capital
goods or consumption goods, he told a forum on the exchange rate and the
economy in Pretoria.
Larger firms, and those involved in both importing and exporting, were less
concerned about the exchange rate, he said.
This points to the need for more targeted intervention in helping firms
manage the overall costs of hedging -- this would be a more fruitful strategy
than attempting to balance the costs and benefits of a larger macro approach.
Kganyago said ways of moderating volatility needed to be found over suitable
timeframes, primarily by supplying sufficient financing for foreign reserve
purchases by the SA Reserve Bank.
Financial policy must also facilitate the development of hedging instruments
and the deepening for foreign exchange and financial markets more
generally, while gradual accumulation of additional foreign reserves enhances
the markets assessment of South Africas creditworthiness and the central
banks ability to smooth excesses in rand volatility.
Kganyago said while some commentators had proposed a fixed exchange
rate regime as the solution for South Africa, this would be very hard to
implement and carried a range of economic costs.
Such a regime would require South Africa to give up its monetary sovereignty
and adopt the same monetary policy stance to the country whose exchange
rate is being targeted, even if it is not appropriate for domestic economic
conditions, he said.
Moreover, the exchange rate would no longer be a shock absorber for changes
in the terms of trade.
If we had had a fixed rate regime at the time of rising imported food prices,
our domestic inflation rate would have been much higher and South Africans
much poorer.
Kganyago said the Greek experience clearly showed that bad economic
management and lack of productivity magnified the eventual crisis caused by
inappropriate fixed exchange rate regimes. Sapa. Published on the web by
Business Report on March 23, 2010.
ECONOMICS IN ACTION
The foreign sector
50 Economics 1B
In 2002, the Myburgh Commission was set up to investigate the reasons for the sharp
decline in the value of the rand. Needless to say, the Commission could not pinpoint the
reasons for the decline in the value of the rand. Recently, with the strengthening of the
rand, cries are going up from various sectors in the economy that the foreign exchange
market should be stabilised. Do you have any suggestions? In this study unit, we will
investigate the interaction between the foreign sector and the domestic economy. We
will focus on the reasons for international trade, the main components of the balance of
payments, and the exchange rate.
explain the concepts of absolute advantage and relative advantage
explain the economic impact of an import tariff
compare the arguments for and against the use of trade barriers
distinguish between the current account and the financial account of the balance
of payments
explain the meaning and significance of South Africas gold and other foreign
reserves
explain the exchange rate between the United States dollar and the South African
rand as well as any changes that might occur
explain an appreciation or depreciation of the rand against the dollar (and vice
versa)
4.1 Why countries trade
In this section, we will investigate the reasons for trade between countries. Study the
three advantages of trade distinguished: absolute advantage, comparative advantage and
equal advantage. Also, note the sources of comparative advantage.
T F
(1) The more open a countrys economy is, the more vulnerable
it is to changes in economic conditions in other countries.
CONTENTS
STUDY
ACTIVITY 4.1
ECS1601/1 51
T F
(2) A country is said to have an open economy if a significant
percentage of GDP is exported and a significant part of
domestic spending is on imported goods and services.
(3) Adam Smith argued that countries should try to be as self-
sufficient as possible.
(4) One of the basic reasons for international trade is that not all
countries have the same factors of production (for example,
natural resources).
(5) South African citizens would be better off economically if
the country did not engage in international trade at all.
(6) The law of relative (or comparative) advantage states that
two countries will benefit from trade if the opportunity
costs of production (or relative prices) differ between the
two countries.
(7) Absolute advantage is a prerequisite for trade.
(8) Equal advantage is a prerequisite for trade.
(9) Comparative (or relative) advantage is a prerequisite for
trade.
Statements (10) to (15) are based on the following information: Susan can knit four
jerseys or sew eight dresses per week, while Jackie can knit three jerseys or sew four
dresses per week.
(10) Susan has an absolute advantage in knitting jerseys.
(11) Susan has an absolute advantage in sewing dresses.
(12) Susan has a relative (or comparative) advantage in knitting
jerseys.
(13) Susan has a relative (or comparative) advantage in sewing
dresses.
(14) Jackie has a relative (or comparative) advantage in knitting
jerseys.
(15) Jackie should specialise in knitting jerseys while Susan should
specialise in sewing dresses.
(16) If country A can produce 2 400 tractors or 3 million tons of
maize per year and country B can produce 1 500 tractors or
3 million tons of maize per year, then A should specialise in
producing tractors, while B should specialise in producing
maize.
52 Economics 1B
Short questions
(a) Use the following information to illustrate the law of comparative advantage:
Guns Roses
Country A 20 80
Country B 10 20
(6)
(b) List the main sources of comparative advantage. (3)
4.2 Trade policy
The subsection on import tariffs contains another application of microeconomic theory,
namely an analysis of the imposition of an import tariff. You should note the difference
between specific tariffs and ad valorem tariffs. Also, note that the subsection on the
welfare effects of an import tariff is not prescribed for this module. You have to be able
to argue for and against the use of trade barriers.
T F
(1) A specific import tariff is a fixed amount levied on each unit
of an imported good.
(2) An ad valorem import tariff is a percentage levied on the
price of an imported good.
(3) Import tariffs benefit domestic consumers.
(4) An import tariff can be used to protect a domestic industry
against foreign competition.
Short questions
of this study unit.
(a) Distinguish between a specific tariff and an ad valorem tariff. (2)
ACTIVITY 4.2
STUDY
Section 17.2 of the prescribed book except the subsection on the welfare effects of
an import tariff
ECS1601/1 53
(b) *Use a diagram to explain the impact of the imposition of a specific import tariff
on domestic production and imports. Clearly indicate the position
(i) before international trade
(ii) after international trade but without a tariff
(iii) after the imposition of the tariff (10)
(c) What are the arguments for and against the use of trade barriers? (10)
4.3 The balance of payments
These sections provide more information on the balance of payments. You have to be
able to distinguish between the current account and the financial account of the balance
of payments. Study the subsection on the balance of payments and economic activity in
South Africa.
T F
(1) All economic activities taking place within the borders of a
country are recorded in the balance of payments.
(2) The balance of payments is a summary record of a countrys
transactions with the rest of the world during a particular
period.
(3) The flow of goods between South Africa and the rest of
the world is recorded in the current account of the South
African balance of payments, while the flow of services is
recorded in the financial account.
(4) A deficit on the current account of the balance of payments
indicates that the country exported more than it imported
during the period in question.
(5) When a German company invests in a vehicle manufacturing
operation in South Africa, the amount concerned is entered
as an inflow in the financial account of the South African
balance of payments.
(6) If exports exceed imports, then domestic production (GDP)
is greater than domestic spending (GDE).
STUDY
ACTIVITY 4.3
54 Economics 1B
T F
(7) A country can afford to run current account deficits as long
as they are matched by financial account surpluses.
(8) The SARB holds a portion of South Africas gold production
as part of the countrys foreign reserves.
Short questions
(a) Define the balance of payments. (2)
(b) What are the two main sub-accounts of the balance of payments and what type
of transaction is recorded in each sub-account? (4)
(c) What is the difference between the current account and the financial account of
the balance of payments? (2)
(d) List three measures that can be taken to promote exports. (3)
4.4 Exchange rates
This section, which explains exchange rates, must be studied in detail. Note that
an exchange rate is a price like the price of any other commodity and that the
determination of exchange rates is simply an application of the microeconomic theory
of demand and supply, explained in chapters 7 and 8. You should be able to explain the
exchange rate between the United States dollar and the South African rand, as well as
possible changes in this exchange rate. You should also be able to distinguish between
an appreciation and a depreciation of the rand against the dollar. Note that the SARBs
ability to intervene in the foreign exchange market depends on the availability of foreign
exchange reserves.
T F
(1) Exports create a supply of foreign exchange, while imports
constitute a demand for foreign exchange.
ACTIVITY 4.4
STUDY
Table 17-4: Changes in supply and demand: A summary
Table 17-5: Impact of changes in rand/dollar exchange rate for South Africa
ECS1601/1 55
T F
(2) An exchange rate is the price of one currency in terms of
another currency.
(3) An increase in South African imports from the United States
will give rise to an appreciation of the rand against the US
dollar.
(4) A fall in the value of the rand against the Japanese yen is
described as a depreciation of the rand against the yen.
(5) One possible source of the demand for dollars in the South
African foreign exchange market is American investors
wishing to invest in South Africa.
(6) If American importers purchase more South African goods,
the supply of dollars in the South African foreign exchange
market increases.
(7) An increase in the supply of dollars in the South African
foreign exchange market will result in an appreciation of the
rand against the dollar.
(8) A depreciation of the rand against the US dollar will reduce
the competitiveness of American goods and services in
South Africa.
(9) If the demand for US dollars in the South African foreign
exchange market falls, the rand will depreciate against the
US dollar.
(10) If the rand appreciates against other currencies, South
African exports will become more competitive.
(11) A depreciation of the rand against other currencies can be
useful in the fight against inflation.
(12) A depreciation of the rand against other currencies will raise
the prices of imported capital goods.
(13) If the SARB had the necessary foreign exchange reserves, it
could intervene in the foreign exchange market to prevent
sharp fluctuations in the exchange rates between the rand
and other currencies.
Short questions
Note: Solutions to the questions marked with an asterisk (*) are provided at the end
of this study unit.
(a) *Use a diagram to explain what would happen to the exchange rate between the
rand and the US dollar if South African exports to the United States increased,
ceteris paribus. (8)
(b) *With the aid of a diagram, explain what will happen to the exchange rate between
the rand and the dollar when the demand for dollars increases. (6)
56 Economics 1B
(c) Name two possible sources of
(i) the demand for dollars in South Africa
(ii) the supply of dollars in South Africa (4)
(d) Use a numerical example to distinguish between an appreciation and a depreciation
of the rand against the dollar. (4)
(e) Explain the policy options available to stabilise a currency under a floating
exchange rate system. (6)
4.5 Terms of trade
You should understand and be able to define what is meant by terms of trade.
of the external sector, do you see the observations Lesetja Kganyago made differently?
Read Box 17-4 in the prescribed book. Given that South Africa is a member of the WTO,
why would different sections within the South African economy still argue for the use of
trade barriers?
ACTIVITY 4.1
(1) T
(2) T
(3) F
(4) T
(5) F
(6) T
(7) F
(8) F
(9) T
STUDY
ECONOMICS IN ACTION
(LOOKING BACK)
FURTHER READING
SOLUTIONS
ECS1601/1 57
Statements 10 to 15:
Susan has an absolute advantage in the knitting of jerseys and in the sewing of dresses.
She can knit four jerseys per week compared to the three Jackie can knit, or sew eight
dresses compared to Jackies four. With absolute advantage, the question to ask is simply
who can produce more?.
However, with relative advantage, one would want to establish the opportunity cost of
specialising in the production of a particular product. To knit one jersey per week Susan
has to sacrifice two dresses, whereas Jackie sacrifices 1 dresses in order to produce
one jersey. Jackie can knit jerseys cheaper and will specialise in the knitting of jerseys.
Jackie has a relative advantage in the knitting of jerseys. On the other hand, to sew one
dress Susan has to sacrifice a jersey, while Jackie must sacrifice of a jersey. Susan can
sew dresses cheaper and will specialise in the sewing of dresses. Susan has a relative
advantage in the sewing of dresses.
(10) T
(11) T
(12) F
(13) T
(14) T
(15) T
(16) T To produce one unit of maize country A must sacrifice 800 (that is 2 400
3) tractors, while country B must sacrifice 500 (1 500 3) tractors. Country
B can produce maize cheaper and will specialise in the production of
maize. Country B has a relative advantage in the production of maize
To produce one tractor, Country A has to sacrifice 3 2 400 (in other
words 3 2 400) units of maize whereas Country B must sacrifice
3 1 500 (that is 3 1 500) units of maize in order to produce a tractor.
Country A can produce tractors cheaper and will specialise in the pro-
duction of tractors. Country A has a relative advantage in the production
of tractors.
ACTIVITY 4.2
(1) T
(2) T
(3) F
(4) T
SHORT QUESTIONS
(b) Here you have to provide a diagram similar to the one in figure 17-1 and an
accompanying explanation, similar to the one included in the figure. The important
requirement is to provide a systematic analysis, differentiating clearly between
the three positions mentioned in the question.
58 Economics 1B
ACTIVITY 4.3
(1) F
(2) T
(3) F
(4) F
(5) T
(6) T
(7) T
(8) T
ACTIVITY 4.4
(1) T
(2) T
(3) F
(4) T
(5) F
(6) T
(7) T
(8) T
(9) F
(10) F
(11) F
(12) T
(13) T
SHORT QUESTIONS
(a) You must start with a diagram similar to the one in figure 17-4 in the prescribed
book. Make sure that you label the axes and curves correctly and show the
equilibrium exchange rate. An increase in South African exports to the USA will
result in an increase in the supply of dollars. This is illustrated by a rightward
shift of the supply curve in the diagram. Obtain a new equilibrium exchange
rate that will be at a lower dollar price than before. This means that the dollar
has depreciated against the rand or that the rand has appreciated against the
dollar. The marks will again be split between the diagram and the accompanying
explanation. In a question like this, the important requirements are (i) a correct
initial diagram with correct labels, (ii) the correct shifting of the appropriate curve
and (iii) correct conclusions drawn from the analysis. Make sure that you can
use diagrams to obtain all the results summarised in table 17-4 in the prescribed
book.
(b) This question is similar to the previous one but a little easier, since you are
informed that the demand for dollars has increased. This increase is illustrated by a
rightward shift of the demand curve. The equilibrium price of the dollar increases,
indicating an appreciation of the dollar against the rand (or a depreciation of the
rand against the dollar).
ECS1601/1 59
Well Satis-
factory
Must
redo
Need
help
Concepts
I am able to
define absolute advantage
define comparative advantage
list the main sources of comparative
advantage
distinguish between a specific tariff
and an ad valorem tariff
distinguish between the current
account and the financial account of
the balance of payments
define the exchange rate
list the sources for the demand for
dollar in South Africa
list the sources for the supply of
dollar in South Africa
define the terms of trade
Explanations
I am able to
explain the law of comparative
advantage
argue for and against the use of trade
barriers
explain the exchange rate between
the United States dollar and the
South African rand
explain an appreciation or depre-
ciation of the rand against the dollar
explain the impact of changes in the
rand/dollar exchange rate table
17-5
CHECKLIST
60 Economics 1B
Well Satis-
factory
Must
redo
Need
help
Diagrams
I am able to
aid of a diagram
the impact of the imposition of a
specific import tariff on domestic
production and imports figure 17-1
the impact of changes in the demand
or supply of dollars on the South
African forex market table 17-4;
figure 17-4
Calculations
I am able to
determine comparative advantage
by calculating opportunity cost
calculate the level of local production,
quantity demanded and the level of
imports, given an import tariff
use an numerical example to distin-
guish between an appreciation and
depreciation of the rand against the
dollar
ECS1601/1/20112013 61
STUDY UNIT 5
The macroeconomic
environment
Outcome 1: Explain
economy as a whole
and flows
The monetary sector
The public sector
The foreign sector
Measuring the
performance of the
economy
Macroeconomic
objectives
Measuring the level of
economic activity
Other measures of
production
Measuring employment
and unemployment
Measuring prices
Measuring the links with
the rest of the world
Measuring inequality
62 Economics 1B
ECS1601/1 63
Two decades after Mandelas release, South Africa struggles
Twenty years after Nelson Mandela was freed from prison, South Africa is a
vibrant democracy but the millions still living in poverty are now looking for
leadership that can tackle its economic problems.
Mandelas release on February 11, 1990, after 27 years in apartheid-era jails,
set in motion the countrys transformation to democracy which culminated
in historic all-race elections in 1994 and his inauguration as the countrys first
black leader.
Some critics say Mandelas legacy has been blighted by his successor Thabo
Mbekis sacking as president by the ruling ANC and the latest sexual scandal
involving current President Jacob Zuma which has damaged the partys image.
South Africas change to democracy has been heralded as a miracle. Mandelas
reconciliation drive won over hardline white conservatives, previously
segregated communities are integrated and most blacks and whites now treat
each other with respect.
But two decades on, many black South Africans still live in grinding poverty
in squalid shantytowns, official unemployment is just under 25 percent and
analysts say actual joblessness is much higher. The challenges are identical. If
there are three categories of things, it will be unemployment, inequality with
a racial overlay and poverty. The changes between 1990 and 2010 are not
profound, said independent political analyst Nic Borain.
Crime is rife and South Africa has one of the worlds highest rates of violent
crime. The country also has to deal with one of the heaviest global HIV/AIDS
caseloads.
RICH POOR GAP
Income inequality between different race groups has increased from 1995 and
the World Bank describes South Africa as a country with extreme differences
in incomes and wealth.
At least 34 percent of South Africas estimated 50 million people live on less
than two dollars per day, according to the World Bank.
The economy under the African National Congress, which has been ruling
since the end of apartheid in 1994, saw its longest spurt of growth on record
until the fallout from the global financial crisis pushed it into recession at the
start of 2009.
ECONOMICS IN ACTION
Measuring the performance
of the economy
64 Economics 1B
Every four years soccer teams from all over the world gather to determine the best
soccer team. Every nation wants to boast that their soccer team is the winner of the
World Cup, in other words, the best soccer team in the world. But how does one
compare the performances of the economies of the world? What criteria should be
used? In this study unit, we are going to take a closer look at how the performance of an
economy can be measured.
explain the standard macroeconomic objectives
explain the various criteria, concepts and techniques which are used to assess the
performance of an economy
5.1 Macroeconomic objectives
Five macroeconomic objectives are discussed in this section. These objectives serve as
criteria for assessing the performance of the economy. Study the section to ensure that
you know what each objective or criterion means.
CONTENTS
STUDY
Although Africas biggest economy emerged from recession in the third
quarter of 2009, analysts said its growth prospects lagged other emerging
market peers a situation which can only be changed through significant
restructuring to address infrastructure and labour market constraints.
Two decades after Mandelas release, South Africa needed to put in place
real change to address economic structural problems and the low potential
growth rate, said Peter Attard Montalto, emerging markets economist at
Nomura International.
There is currently no one to lead South Africa to this consensus. We need to
hunt for the next Mandela, not the nation builder, the economic revolutionary,
Attard Montalto added.
Despite the obvious problems facing South Africa, much has changed since
Mandela was released.
A strong black middle-class has emerged, a whole generation of schoolchildren
born after 1994 known as the born frees have grown up in an multi-
racial society and basic services like water and electricity have been extended
to millions.
The only black people you interacted with (prior to 1990) as a normal kind of
person were servants and deeply poverty-stricken people. That is no longer
the case and there is a general deracialism of wealth at least, political analyst
Borain said. Reuters. Published on the web by Business Report on February
9, 2010.
ECS1601/1 65
T F
(1) The five macroeconomic objectives serve as criteria for
judging the performance of the economy.
(2) One of the macroeconomic objectives is that no price in the
economy will increase.
(3) The objective of price stability means that the inflation rate
should be kept as low as possible.
Short question
(a) List the five macroeconomic objectives which serve as criteria for measuring
the performance of the economy and explain briefly what each objective
means. (10)
5.2 Measuring the level of economic activity: Gross domestic
product
GDP, which serves as the basis for calculating economic growth, is one of the central
concepts in economics. Study the section, and pay particular attention to the components
of the GDP definition and the three methods for calculating GDP. Also, make sure that
you understand the difference between valuation at factor cost, basic prices and market
prices, and that you can distinguish between current prices and constant prices (or
nominal values and real values). Economic growth is usually measured as the percentage
change in GDP at constant prices (that is, real GDP).
T F
(1) The basic information about the performance of the
economy is recorded in the national accounts.
ACTIVITY 5.1
STUDY
ACTIVITY 5.2
66 Economics 1B
T F
(2) The central concept in the national accounts is the gross
domestic product (GDP).
(3) The owner of a hardware shop purchases 20 axes from a
wholesaler. The axes sold by the wholesaler are not classified
as final goods.
(4) Peter Modise purchases an axe from a hardware store to
chop down a tree in his garden. The axe sold by the hard-
ware store is classified as a final good.
(5) Anna Gumbu spends R10,00 on the ingredients required
to bake a chocolate cake. She bakes the cake and sells it
for R20,00 at a morning market. The value added in this
example amounts to R10,00.
(6) The flour used in a bakery to bake bread and the flour used
by Helen Rantho to bake bread for her family are both
classified as intermediate goods.
(7) The compilers of the national accounts can avoid double
counting by recording only every second transaction in the
economy.
(8) To avoid double counting in the national accounts, only sales
of final goods and services (expenditure method) or the
value added during different stages of the production pro-
cess (production method) should be taken into account.
(9) According to the income method, GDP is estimated by
adding up the income earned by the various factors of
production.
(10) The GDP in a particular country in a particular year is a stock
concept.
(11) The value of computers manufactured in South Africa by a
Japanese firm does not form part of the South African GDP.
(12) The wages earned by a citizen of Lesotho working at a South
African gold mine form part of the South African GDP.
(13) A farmer buys his neighbours tractor. The value of this
transaction is included in GDP.
(14) GDP at factor cost includes value-added tax (VAT).
(15) As a result of VAT and other taxes on products being greater
than subsidies on products, GDP at market prices is greater
than GDP at basic prices in South Africa.
(16) GDP at current prices is synonymous with real GDP.
(17) To measure real economic growth, GDP at current prices
has to be transformed into GDP at constant prices.
(18) During inflationary periods, the growth in real GDP is always
higher than the growth in nominal GDP.
ECS1601/1 67
Short questions
Note: The solutions to the questions marked with an asterisk (*) are provided at the
end of this study unit.
(a) Define the gross domestic product (GDP) and explain the meaning of the various
elements of the definition. (6)
(b) Explain how double counting can be avoided when GDP is estimated. (4)
(c) Use examples to explain the difference between final goods and intermediate
goods. (4)
(d) Name the three methods used to estimate GDP. (3)
(e) Is GDP a stock or a flow? Explain. (3)
(f) Explain the difference between measurement at market prices, basic prices and
factor cost. (4)
(g) Explain the difference between measurement at current prices and measurement
at constant prices. (4)
(h) Explain the difference between nominal GDP and real GDP. (2)
(i) *The table below shows the GDP at current prices of country A for years 1
and 2.
Year GDP at current prices
1 100
2 110
Given the information in the table, explain why it is impossible to tell whether the
10% increase in GDP from year 1 to year 2 represents economic growth. (6)
(j) *Use the information in the following table to calculate the increase in real GDP
between 2001 and 2003.
Year Nominal GDP Real GDP
2001 280 280
2002 315 260
2003 305 300
(2)
68 Economics 1B
5.3 Other measures of production, income and expenditure
This section contains definitions and explanations of a number of other national account-
ing concepts. You must be able to distinguish between gross national income (GNI),
GDP and gross domestic expenditure (GDE).
T F
(1) Income earned by Zimbabwean citizens working in South
Africa forms part of the South African GDP and the
Zimbabwean GNP.
(2) In South Africa, GDP has always been smaller than GNI.
(3) Part of consumption spending (C) in South Africa is on
imported goods.
(4) Part of government spending (G) in South Africa is on
imported goods.
(5) Imports are included in GDE.
(6) Imports are included in GDP.
(7) Exports are not included in GDE.
Short questions
(a) Explain the difference between GDP and GNI. (3)
(b) Explain the difference between gross product and net product. (2)
(c) What is gross domestic expenditure (GDE) and how does it differ from
expenditure on GDP? (4)
ACTIVITY 5.3
STUDY
ECS1601/1 69
5.4 Measuring employment and unemployment
This is a short section on the measurement of employment and unemployment. Note
that employment and unemployment are quite difficult to measure in practice. We will
revisit this section when we deal with various aspects of employment and unemployment
in greater detail in study unit 10.
Short question
(a) Define the unemployment rate. (2)
5.5 Measuring prices: The consumer price index
This section deals with the measurement of inflation. Inflation is usually measured by
calculating the rate of change in the consumer price index (CPI). You must be able to
define the CPI and to use it in order to calculate changes in the purchasing power of
money.
T F
(1) The consumer price index (CPI) and the inflation rate are
the same thing.
(2) The CPI is an index of the cost of a representative basket of
goods and services, and serves as a basis for calculating the
inflation rate.
(3) The CPI is an index of the cost of living.
ACTIVITY 5.4
ACTIVITY 5.5
STUDY
STUDY
70 Economics 1B
Short questions
(a) Differentiate between nominal and real values. (2)
(b) Describe the CPI. (3)
(c) What are the main elements of the CPI? (4)
5.6 Measuring the links with the rest of the world: Balance
of payments
This section deals with the balance of payments, which you have dealt with in study unit
4.
Short questions
(a) What is the balance of payments? (2)
(b) Distinguish between the current account and the financial account of the balance
of payments. (4)
5.7 Measuring inequality: Distribution of income
This section deals with the measurement of inequality. Note the three measures that are
used to measure inequality.
Short question
(a) Name the three measures that are used to measure inequality. (3)
STUDY
STUDY
ACTIVITY 5.6
ACTIVITY 5.7
ECS1601/1 71
of the different criteria that can be used to measure the performance of an economy,
what do you think of the performance of the South African economy?
Read the following excerpt from the The Business Report. Do you think the assessment
of the performance of the South African economy is valid?
ECONOMICS IN ACTION
(LOOKING BACK)
FURTHER READING
South Africa is recovering reasonably rapidly Marcus
South Africa is coming out of its first recession in almost two decades
reasonably quickly, Reserve Bank Governor Gill Marcus said on Tuesday, as
data showed the economy growing late last year.
Official figures showed South Africas GDP expanded by 3.2 percent in the
fourth quarter of 2009 on a seasonally-adjusted and annualised basis.
Various short-term indicators also show South Africa coming out of the
recession reasonably rapidly, central bank chief Marcus told a parliamentary
commitee.
Africas biggest economy exited its first recession in 17 years in the third
quarter of 2009 and Reserve Bank chief economist Monde Mnyande told the
committee indications were the economy continued to improve in the first
quarter of the year.
This onset of recovery should confirm the Banks and National Treasurys
growth forecast for the year at around 2 to 2.3 percent, Mnyande added.
Marcus said monetary policy remains directed towards containing inflation.
The central bank has cut rates by 500 basis points since December 2008, and
left the repo rate flat at 7.0 percent at its last four meetings.
Its very clear that, when you have an explicit inflation target or a mandate
that is explicit, the role of the central bank is to cut inflation, and what this is
doing is saying to you we dont expect you to act in an extreme manner but
you act in the best interests of the economy, Marcus said.
She also said it was not the job of the Reserve Bank to create jobs.
Finance Minister Pravin Gordhan said last week he had written to the Reserve
bank stressing the need for it to be flexible in its approach.
Trade union federation Cosatu and the South African Communisty Party are
calling for inflation-targeting to be scrappe, arguing that efforts to contain
inflation kept interest rates too high which added to job losses during the
recession. Reuters. Published on the web by Business Report on February
23, 2010.
72 Economics 1B

ACTIVITY 5.1
(1) T
(2) F
(3) T
ACTIVITY 5.2
(1) T
(2) T
(3) T
(4) T
(5) T
(6) F
(7) F
(8) T
(9) T
(10) F
(11) F
(12) T
(13) F
(14) F
(15) T
(16) F
(17) T
(18) F
SHORT QUESTIONS
(i) When we measure economic growth, we want to establish whether more goods
and services were produced. An increase in GDP at current prices could be a
result of increases in the general price level, without any increase in production,
for example the following:
Year General price
level
Number of
goods produced
Nominal GDP
L (P Q)
1 10 10 100
2 11 10 110
Alternatively, an increase in GDP at current prices could be the result of an
increase in production:
Year General price
level
Number of
goods produced
Nominal GDP
(P Q)
1 10 10 100
2 11 11 110
SOLUTIONS
ECS1601/1 73
A combination of changes in the general price level and changes in the production
level can also lead to an increase in the GDP at current prices:
Year General price
level
Number of
goods produced
Nominal GDP
(P Q)
1 10 10 100
2 22 5 110
(j)
% in GDP
280
300 280
1
100
280
20
1
100
7,14%
#
#
O =
-
=
=
ACTIVITY 5.3
(1) T
(2) F
(3) T
(4) T
(5) T
(6) F
(7) T
ACTIVITY 5.5
(1) F
(2) T
(3) T
74 Economics 1B
Well Satis-
factory
Must
redo
Need
help
Concepts
I am able to
list the five macroeconomic objec-
tives
define the GDP
name the three methods to estimate
GDP
define the unemployment rate
define the CPI
define the balance of payments
name the three measures that are
used to measure income inequality
Explanations
I am able to explain the difference
between
nominal and real values
market prices, basic prices
and factor cost
current prices, nominal prices
and constant prices
gross product and net product
GDP and GDE
Calculations
I am able to calculate
Diagrams
the change in real and nominal
GDP
the change in purchasing
power
CHECKLIST
BANK
PART 2
In part 2 we develop models or theories about
the functioning of the economy as a whole.
Macroeconomic theory
HOUSEHOLDS
FOREIGN SECTOR GOVERNMENT
FIRMS
FINANCIAL SECTOR
Study unit 6:
Income determination in a simple
Keynesian macroeconomic model
Study unit 7:
Keynesian models including the
government and the foreign sector
Study unit 8:
More on macroeconomic theory and
policy
ECS1601/1/20112013 77
STUDY UNIT 6
Macroeconomic
theory
Outcome 1: Explain
economy as a whole
Income determination
in a simple Keynesian
macroeconomic model
Keynesian models
including the
government and the
foreign sector
More on macro-
economic theory and
policy
Production, income and
spending
Basic assumptions of
the model
Consumption spending
Investment spending
Simple Keynesian
model
Algebraic version of the
simple Keynesian model
The multiplier
The simple Keynesian
model: A summary
78 Economics 1B
ECS1601/1 79
Disposable income is a spend-or-save poser
Im never very sure if, in the sort of recessionary conditions we are facing, I
have a patriotic duty to spend or save. The Reserve Bank governors decision
not to reduce interest rates pushes me towards the dont spend option.
If the governor is so concerned about inflation that he wants to keep a lid on
consumption, then I feel I should do my bit and continue to avoid shops.
But then theres the Keynes school of economics that, simplistically put,
would have me consume in order to support economic activity in the face of
recessionary conditions. That force is pushing me ever closer to the shopping
spree option.
For the past year this has been an entirely theoretical dilemma for me. But
as of today I am back at full-time work, which means I will be receiving an
income that is considerably above the average in this country even for a
journalist working for a management obsessed with cost cutting.
This in turn means that I will be getting more money than I need to cover my
basic requirements, so there is scope for some discretionary spending. (This, I
think, should be our secret; I would prefer if it was not shared with my boss.)
Last year I took 12 months leave to study company law at UCTs law school.
This seemed like an appropriate move, given the pending introduction of the
new Companies Act.
As it happened, it was an excellent move; the course was fascinating and drew
on wonderful literature. It gave me a completely new perspective on issues
around company law. I will be returning next year and would urge anyone
who can to sign up as well.
But I digress. During the 12 months in keeping with my primary status as a
student - my income was a fraction of what it had been and was dependent
on my considerably reduced ability, time wise, to file copy to Business Report.
The two major challenges in this lifestyle change were coping with the
comparative poverty and figuring out how to do exams.
I eventually managed to work out the exam challenge, but the comparative
poverty proved not to be a challenge at all. In fact, at the risk of sounding a
little corny, there was a delightful sense of empowerment in knowing that I
could happily live with considerably less than I had done previously. Delightful
because one of my great fears relates to the lifestyle damage employees and
savers face as a result of a combination of defined contribution pension funds
and investment-market collapse.
ECONOMICS IN ACTION
macroeconomic model
80 Economics 1B
But now comes the burden of having to decide what to do with some discretionary
income spend it la Keynes or save it la the governor? What does this statement
mean? The time has arrived for us to apply what we have learnt so far.
In study unit 1, we saw how the different role players in the economy are related. In study
unit 4, the importance of economic growth and unemployment was emphasised. But
how can the different role players in the economy work together to increase economic
growth? In this study unit, we will build a model of the economy. In so doing, we will use
the views of Keynes to explain how the equilibrium level of income is determined in an
economy without a government and a foreign sector. The important role played by the
multiplier (which indicates by how much the equilibrium level of income will change if
investment spending changes) will also be examined.
explain the relationship between the three central macroeconomic flows
list the basic assumptions of the Keynesian macroeconomic model
explain (with or without the aid of a diagram) the three important characteristics
of the consumption function
explain the relationship between consumption and saving
explain, with the aid of a diagram, the equilibrium level of income
read from a given diagram the level of autonomous spending, the marginal
propensity to consume and the equilibrium level of income
calculate
- private consumption expenditure
- the level of autonomous spending
- the multiplier
- the equilibrium level of income
After 12 months in Cape Town I realised that post-employment life need not
be as bad as the defined contribution pensions and the investment industry
would have it.
There were, however, a number of critically important factors that determined
the success of my student project. One is that the decision to become poorer
was entirely mine, and it was for a specified period. There is absolutely nothing
empowering about losing your job or a fortune in a financial meltdown.
It certainly helped to have a few really good, generous friends who are happy
to buy you the odd meal; and generous welcoming family and friends who will
host you on your dollar-a-day trips overseas.
Also crucial was the Cape Town location; the place is so beautiful that with
just enough rands to pay for petrol and a cup of coffee, you can feel utterly
spoilt.
Skype, public transport when petrol was ridiculously expensive, restaurants
offering winter specials and avoiding shopping malls also helped.
But now comes the burden of having to decide what to do with some
discretionary income spend it la Keynes or save it la the governor? By
Ann Crotty. Published on the web by Business Report on July 1, 2009
ECS1601/1 81
This chapter in the prescribed book lays the foundation for macroeconomic analysis
and is the most important chapter in this module. The first part of the chapter (sections
18.1 to 18.4) explains the basic elements of macroeconomic theory and in the second
part (sections 18.5 to 18.8), the various elements are combined to construct a simple
Keynesian model of income determination in a closed economy without a government.
6.1 Production, income and spending
This section is concerned with the three central flows in the economy (production,
income and spending) which were introduced in study unit 1. Note the distinction
between the national accounts, which are concerned with the measurement of total
production, income and spending in the economy, and macroeconomic theory, which
is concerned with the explanation of these flows. Pay particular attention to the
equilibrium condition. Make sure that you understand the three possible relationships
between spending, production and income. Also, note the difference between the
Keynesian approach, which focuses on aggregate spending, and Says law, according to
which supply creates its own demand.
You need to take note of the synonyms for total production, total income and total
spending in the economy as discussed in box 18-1 otherwise you might be confused
when they are used.
T F
(1) In macroeconomics, we use the symbol Y to denote total
income and production in the economy, while the symbol A
denotes total spending in the economy.
(2) In macroeconomic theory, the symbol Y is the theoretical
equivalent of national accounts aggregates such as GDP and
GNI.
(3) In macroeconomic theory, spending is always equal to pro-
duction or income.
STUDY
ACTIVITY 6.1
CONTENTS
82 Economics 1B
T F
(4) Macroeconomic theory uses the information of the national
accounts; hence, production, income and spending must, as
in the national accounts, always be equal in macroeconomic
theory as well.
(5) According to John Maynard Keynes, total spending (or aggre-
gate demand) determines total production and income in
the economy.
(6) According to Says law, goods and services will only be pro-
duced if there is a demand for them.
(7) According to Say, aggregate (total) demand in the economy
can never be insufficient because supply creates its own
demand.
(8) The full-employment level of production (or income) is the
level of production (or income) at which all the factors of
production are fully employed.
(9) In the Keynesian model, there will always be an automatic
tendency towards full employment if the economy is
operating at a level of production or income below the full-
employment level.
Short questions
(a) Indicate how the relationships between the three main flows in the economy in
macro-economic theory differ from those in the national accounts. (7)
(b) What is the basic difference between the national accounts and macroeconomic
theory? (4)
(c) Contrast the views of Jean-Baptiste Say and John Maynard Keynes on the relation-
ship between total income and total spending in the economy. (4)
6.2 The basic assumptions of the model
The basic assumptions of the Keynesian model are explained in this section. Study this
section carefully, including box 18-2. We start with a simple model of an economy that
does not include a government sector or a foreign sector. The reason is that we can then
focus on certain important concepts without being confused by too many details. Once
the foundation has been laid, the simplifying assumptions can be relaxed.
STUDY
ECS1601/1 83
T F
(1) In the Keynesian macroeconomic model of this chapter,
prices, wages and interest rates are regarded as exogenous
variables, in other words, assumed to be given.
(2) In macroeconomic theory, the symbol I is used to indicate
the total flow of funds through financial institutions.
(3) Macroeconomic theory deals with events that occurred in
the past.
Short question
(a) Give four of the basic assumptions of the Keynesian macroeconomic model of an
economy without a government and a foreign sector. (4)
6.3 Consumption spending
Aggregate spending on goods and services A (or the aggregate demand for goods and
services) is the driving force in the Keynesian model. The largest component of aggregate
spending is consumption spending by households C, which is introduced in this section.
The important points to note are as follows:
the direct (or positive) relationship between consumption spending C and
income Y
the difference between autonomous consumption C and induced consumption cY
the meaning of the marginal propensity to consume c
Make sure that you can express the consumption function both graphically and as an
equation, and that you know what the different elements of the graph and the equation
signify. Box 18-4 introduces saving S and explains how S is related to Y (and C).
ACTIVITY 6.2
STUDY
84 Economics 1B
T F
(1) The marginal propensity to consume is indicated by c and
equals C/Y, which indicates the slope of the consumption
function.
(2) Induced consumption refers to the fixed part of consumption
spending which does not change as the level of income
changes.
(3) The intercept of the consumption function reflects the
influence of the non-income determinants of consumption
spending.
(4) Consumption spending can exceed income because house-
holds can use savings from a previous period to finance such
spending.
(5) If the marginal propensity to consume is 3/4, then at an
income level (Y) of 100, the level of induced consumption is
75.
(6) If C = 80 and c = 4/5, then C = 880 at an income level of
1 000.
(7) If C = 100 + 0,7Y, then S = 100 0,7Y.
Short questions
(a) Explain, with the aid of a diagram, the economic significance of the intercept and
the slope of the consumption function. (3)
(b) Explain, with the aid of a diagram, the three important characteristics of the
consumption function. (6)
(c) Explain, with the aid of a diagram, the difference between autonomous consump-
tion and induced consumption. Refer to the meaning of the marginal propensity
to consume. (6)
(d) Use diagrams or equations to explain the relationship between consumption and
saving. (4)
ACTIVITY 6.3
ECS1601/1 85
6.4 Investment spending
This section introduces investment spending I which is related to capital goods (not to
financial assets). Make sure that you know what investment (also called capital formation)
means. Note that investment is not related to changes in total production or income Y
(that is, it is regarded as autonomous with respect to Y).
T F
(1) Investment is negatively (inversely) related to the interest
rate.
(2) Investment spending is less volatile than consumption spend-
ing because it takes a long time to implement investment
projects.
(3) If investment is independent of the income level, it is
regarded as autonomous. It is illustrated graphically by a
horizontal line.
(4) Income is the most important determinant of the level of
investment.
Short question
Note: The solution to the question is provided at the end of this study unit.
(a) Use two diagrams to illustrate the relationship between
(i) investment spending and the interest rate
(ii) investment and the level of income in the economy (Y) (4)
ACTIVITY 6.4
STUDY
86 Economics 1B
6.5 The simple Keynesian model of a closed economy
without a government
Consumption spending C and investment spending I are combined with the 45 line
to establish the equilibrium level of production and income in the economy. Study the
subsection on the 45 line and make sure that you understand why this line represents all
the possible equilibrium points where aggregate spending A is equal to total production
or income Y. Also, make sure that you understand why any other combination of A and Y
represents either excess demand or excess supply. The essential elements of the model
are explained in words, symbols (or equations), numbers (or schedules) and graphs.
Study this section carefully.
T F
(1) The 45 line shows all the possible equilibrium points in the
Keynesian model.
(2) At any level of income below the equilibrium level Y
0
there
is an excess supply of goods and services in the economy.
(3) If income exceeds spending, firms inventories will decrease.
(4) If firms inventories increase, they will cut back on production.
(5) The slope of the consumption function is an important
determinant of the equilibrium level of income in Keynesian
macroeconomic models.
(6) In an economy without a government and a foreign sector,
the slope of the total spending (A) curve = the slope of the
consumption function = C/Y = c = marginal propensity
to consume.
Short questions
(a) Explain, with the aid of a diagram, the significance of the 45 line in the
Keynesian macroeconomic model. What do points above and below the 45 line
represent? (5)
ACTIVITY 6.5
STUDY
ECS1601/1 87
(b) Explain, with the aid of a diagram, the equilibrium level of income in a Keynesian
model without a government or a foreign sector. Clearly indicate the equilibrium
level of income as well as the areas of excess demand and excess supply. (8)
6.6 Algebraic version of the simple Keynesian model of a
closed economy without a government
This section contains a more detailed algebraic version of the Keynesian model. You
should try to master it, but if you cannot follow the argument, then concentrate on the
results (that is, equations 18-6 and 18-6a). You will not be required to derive the results
in the examination.
Box 18-7 contains a numerical example of the determination of the equilibrium level of
income. Concentrate on the short method. You should be able to do the calculations.
T F
(1) If C = R26 billion, the slope of the C curve = 4/5 and I =
R10 billion, the equilibrium level of income (Y
0
) in a closed
economy without a government will be R180 billion.
(2) If C = R10 billion, I = R30 billion and c = 3/4, then the
equilibrium level of income (assuming that there is no
government or foreign sector) will be R160 billion.
(3) If C = 50, I = 100 and c = 6/7, then the equilibrium level of
income is 1 050.
Short question
(a) Calculate the equilibrium level of income in an economy without a government
and a foreign sector if
(i) C = R100 million, c = 7/8 and I = R150 million
(ii) C = R10 million, c = 3/4 and I = R40 million (3 marks each)
STUDY
ACTIVITY 6.6
88 Economics 1B
6.7 The multiplier
The multiplier, one of the central concepts in macroeconomics, is introduced in this
section. The fact that it is quite a long section does not imply that the multiplier is a
difficult concept. Because the multiplier is so important, it is explained in a number of
different ways, again using words, symbols, numbers and graphs. You do not have to
study all the derivations of the multiplier in detail with a view to reproducing them in
the examination.
You should only make sure that you understand
what the multiplier means
how it can be calculated from the formula
why its size depends on the marginal propensity to consume
how it can be represented graphically
T F
(1) The multiplier indicates how much a change in autonomous
spending will change the equilibrium level of income.
(2) If the marginal propensity to consume shows an increase,
the equilibrium level of income will also increase.
(3) In an economy without a government and a foreign sector,
the size of the multiplier is determined by the marginal
propensity to consume.
(4) In an economy without a government and a foreign sector, a
marginal propensity to consume of 4/5 will yield a multiplier
of 5/4.
(5) If c = 4/5, then an increase of 200 in investment spending
will increase the equilibrium level of income by 1 000.
(6) The equilibrium level of income can be obtained by multi-
plying the autonomous components of aggregate spending
by the multiplier.
STUDY
ACTIVITY 6.7
ECS1601/1 89
Short questions
of this study unit.
(a) Define the multiplier (in words) and give the equation for the multiplier in a
Keynesian model of an economy without a government and a foreign sector. (4)
(b) Explain (in one sentence) the relationship between the equilibrium level of
income, total autonomous spending and the multiplier. (2)
(c) *Use a diagram to explain how a decrease in investment spending will affect
the equilibrium level of income in a Keynesian model of an economy without a
government and a foreign sector. Comment on the relationship between the size
of the change in investment spending and the size of the change in the equilibrium
level of income. (8)
(d) *Calculate the multiplier in an economy without a government and a foreign
sector if the marginal propensity to consume is (i) 3/4, (ii) 8/10, (iii) 7/8, (iv) 2/3,
(v) , (vi) 6/7, (vii) 8/9. (2 marks each)
(e) *Suppose that autonomous consumption expenditure is R200 million, the
marginal propensity to consume is 5/6 and autonomous investment spending is
R400 million. Calculate the following:
(i) the multiplier
(ii) the equilibrium level of income
Show all your calculations. (4)
(f) *Calculate the impact of an increase in investment spending of R100 million in an
economy without a government and a foreign sector if the marginal propensity to
consume is (i) 3/4, (ii) 2/3, (iii) 6/7. (3 marks each)
6.8 The simple Keynesian model: A brief summary
The main elements of the simple Keynesian model introduced in this chapter are
summarised in this section.
Short question
(a) Let autonomous consumption (C) = 10. At equilibrium, consumption spending =
70 and investment spending = 20. Calculate
(i) the slope of the aggregate spending curve
STUDY
ACTIVITY 6.8
90 Economics 1B
(ii) the marginal propensity to consume
(iii) the multiplier
(Hint: Draw a diagram using the basic facts at your disposal.) (10)
of how a model of the economy can be constructed, are you able to explain the economic
multiplier effects of the convention centre?
Read section 6.1, Theory and reality, of the prescribed book. Is the methodology that
has been followed in the construction of the simple Keynesian model in line with the
suggestions in section 6.1 of the prescribed book?
ACTIVITY 6.1
(1) T
(2) T
(3) F
(4) F
(5) T
(6) F
(7) T
(8) T
(9) F
ACTIVITY 6.2
(1) T
(2) F
(3) F
ECONOMICS IN ACTION
(LOOKING BACK)
FURTHER READING
SOLUTIONS
ECS1601/1 91
ACTIVITY 6.3
(1) T
(2) F
(3) T
(4) T
(5) T
4
3
1
100
75 # =
(6) T
80 4/5(1 000)
80
5
4
1
1000
80 800
880
C C cY = +
= +
= +
= +
=
#
(7) F If C = 100 + 0,7Y
then S = 100 + (1 0,7)Y
= 100 + 0,3Y
ACTIVITY 6.4
(1) T
(2) F
(3) T
(4) F
SHORT QUESTION
(a) (i) There is an inverse relation between the interest rate and the level of
investment.
i
i
1
i
0
0
I
1
I
I
d
I
0
92 Economics 1B
(ii) Investment spending is independent of the level of income.
ACTIVITY 6.5
(1) T
(2) F
(3) F
(4) T
(5) T
(6) T
ACTIVITY 6.6
(1) (T) C is R26 billion and the slope of the C curve is 4/5, thus the consumption
function:
C = R26 billion + 4/5Y (remember the marginal propensity to con-
sume is represented by the slope of the C
curve)
I = R10 billion
At equilibrium:

26 4/5 10
36 4/5
4/5 36
1/5 36
5
1
1
5
1
36
1
5
R180 billion
Y
Y Y
Y
Y Y
Y
Y
Y
Y A
C I `
`
`
`
` # #
`
=
= +
= + +
= +
- =
=
=
=
I
I
I
0
Y
ECS1601/1 93
Alternatively, you may use the following formula:
Equilibrium, or Y
0
= A
where = the multiplier (see the next section)
and A = autonomous spending
Firstly, calculate the value of the multiplier:

1 c
1
Where c is the marginal propensity to consume
1
5
4
1
substitute c with
5
4
and subtract from 1
5
1
1
1
5
1
1
1
5
5
' #
=
-
=
-
= =
=
a
Autonomous spending:
A = 36 (= C + I)
Equilibrium Y
0
= 5 36 = R180 billion
(2) (W) C = R10 billion + 3/4Y
I = R30 billion
At equilibrium:

10 3/4 30
40 3/4
3/4 40
1/4 40
4
1
1
4
1
40
1
4
R160 billion
Y
Y Y
Y
Y Y
Y
Y
Y
Y A
C I `
`
`
`
` # #
`
=
= +
= + +
= +
- =
=
=
=
Equilibrium, or Y
0
= A,
1 c
1
1
4
3
1
substitute c with
4
3
and subtract from 1
4
1
1
1
5
1
1
1
4
4
' #
=
-
=
-
= =
=
a
94 Economics 1B
A = 40 (= C + I)
Equilibrium Y
0
= 4 40 = R160 billion
(3) (W) C = 50 + 6/7
I = 100
At equilibrium:
Equilibrium, or Y
0
= A,

1 c
1
1
7
6
1
substitute c with
7
6
and subtract from 1
7
1
1
1
7
1
1
1
7
7
' #
=
-
=
-
= =
=
a
A = 150 (= C + I)
Equilibrium Y
0
= 7 150 = 1 050
SHORT QUESTION
(a) (i) C = R100 million + 7/8Y
I = R150 million
50 6/7 100
150 6/7
6/7 150
1/7 150
7
1
1
7
1
150
1
7
1050
Y
Y
Y Y
Y
Y Y
Y
Y
Y
A
C I `
`
`
`
` # #
`
=
= +
= + +
= +
- =
=
=
=
ECS1601/1 95
At equilibrium:

100 7/8 150
250 7/8
7/8 250
1/8 250
8
1
1
8
1
250
1
8
R2 000m
Y
Y
Y Y
Y
Y Y
Y
Y
Y
A
C I `
`
`
`
` # #
`
=
= +
= + +
= +
- =
=
=
=
Equilibrium, or Y
0
= A,

1 c
1
1
8
7
1
substitute c with
8
7
and subtract from 1
8
1
1
1
8
1
1
1
8
8
' #
=
-
=
-
= =
=
a
A = R250 million (= C + I)
Equilibrium Y
0
= 8 R250 million = R2 000 million
(ii) C = R10 million + 3/4Y
I =R40 million
At equilibrium:

10 3/4 40
50 3/4
3/4 50
1/4 50
4
1
1
4
1
50
1
4
R200m
Y
Y Y
Y
Y Y
Y
Y
Y
Y A
C I `
`
`
`
` # #
`
=
= +
= + +
= +
- =
=
=
=
96 Economics 1B
Alternatively:
Y
0
= A
The multiplier:

1 c
1
1
4
3
1
substitute c with
4
3
and subtract from 1
4
1
1
1
4
1
1
1
4
4
' #
=
-
=
-
= =
=
a
A = R50 million (= C + I)
Equilibrium Y
0
= 4 R50 million = R200 million
ACTIVITY 6.7
(1) T
(2) T
(3) T
(4) F
1 c
1
1
5
4
1
substitute c with
5
4
and subtract from 1
5
1
1
1
5
1
1
1
5
5
' #
=
-
=
-
= =
=
a
(5) T The change in income will be equal to the multiplier five times (calculated
above) the change in investment spending 200, that is, 5 200 = 1 000
(6) T
SHORT QUESTIONS
(c) Here you must provide a diagram that will look similar to the one in figure 18-10,
but in which the order of things is reversed. Start with a basic equilibrium diagram
like the one on the next page:
ECS1601/1 97

With a decrease in investment spending, the level of aggregate demand will fall
at each level of income. This is illustrated by a parallel downward shift of the
aggregate demand curve (for example, a shift from A
2
to A
1
in figure 18-10). The
result is a fall in the equilibrium level of income. Why? Because, with aggregate
spending (A) at each level of income (Y) being at a level lower than before, it
stands to reason that point E in the diagram will no longer be an equilibrium point.
There will now be excess supply at point E. Firms will experience an unplanned
increase in inventories and will cut back on production. Thus, the equilibrium
level of income will fall. Moreover, the decrease in income will be greater than the
decrease in investment spending because of the multiplier effect (which works in
reverse in this case).
(d) In each case, the formula for the simple multiplier has to be applied:
(i)
1 c
1
1
4
3
1
substitute c with
4
3
and subtract from 1
4
1
1
1
4
1
1
1
4
4
' #
=
-
=
-
= =
=
a
(ii)
1 c
1
1
10
8
1
substitute c with
10
8
and subtract from 1
10
2
1
1
10
2
1
2
10
5
' #
=
-
=
-
= =
=
a
In the same way, the following answers can be obtained:
(iii) 8; (iv) 3; (v) 2; (vi) 7; (vii) 9.
A
A
0
45
Y
0
Y
A = A + cY
A = Y

E
98 Economics 1B
Note how the size of the multiplier is directly related to the size of the marginal
propensity to consume.
(e) C = R200m + 5/6Y
I = R400m
The multiplier ()

1 c
1
1
6
5
1
6
1
1
6
=
-
=
-
=
=
a
Autonomous spending (A) = R200m + R400m = R600m
Thus Y
0
= A = 6 R600m = R3 600m
Alternatively, you could have started by stating that there is equilibrium where:

200 5/6 400
600 5/6
5/6 600
1/6 600
6
1
1
6
1
600
1
6
R3 600m
Y
Y Y
Y
Y Y
Y
Y
Y
Y A
C I `
`
`
`
` # #
`
=
= +
= + +
= +
- =
=
=
=
(f) To calculate the impact of a change in investment spending on total production
or income in the economy, the change in I must be multiplied by the multiplier.
Using the formula for the multiplier, as explained in the solution to question (d),
the following multipliers are obtained: (i) 4; (ii) 3; (iii) 7. Multiplying each of these
multipliers by the increase in I of R100 million yields the following increases in
total production or income in the economy: (i) R400 million; (ii) R300 million; (iii)
R700 million.
ACTIVITY 6.8
(a) As indicated in the question, it is useful to draw a diagram containing the basic
information provided.
ECS1601/1 99
With C and I both given, the intercept of the aggregate spending curve (A) can be
calculated as 30 (= C + I = 10 + 20). We can calculate the equilibrium level of
income as follows:
Y = A
= C + I
= 70 + 20
= 90
(i) The problem is to calculate the slope of the aggregate spending curve (that
is, the marginal propensity to consume). If Y = 0, then A = 30. If Y = 90,
then A = 90. Thus, if Y changes by 90, then A changes by 60. The slope of
the A curve (that is, c) is thus:

90 0
90 30
90
60
3
2
Y
A
O
O
=
-
-
= =
(ii) In this case, the marginal propensity to consume is, of course, the same as
the slope of the aggregate spending curve = 2/3.
(iii)
1 c
1
1
3
2
1
3
1
1
3
=
-
=
-
=
=
a
A
90
A = 30
I = 20
C = 10
45
90
60
90
A = 30 + cY
A = Y
0
Y
100 Economics 1B
Well Satis-
factory
Must
redo
Need
help
Concepts
I am able to
define Says law
list the basic assumptions of the
Keynesian macroeconomic model
define the multiplier
Explanations
I am able to
explain the relationship between the
three central macroeconomic flows
explain the implications of the
assumptions of the Keynesian macro-
economic model
explain the relationship between
consumption and saving
Diagram
I am able to
aid of a diagram
the three characteristics of the con-
sumption function figure 18-1
the relationship between con-
sumption and income figure 18-2
the relationship between investment
and the interest rate figure 18-3
the relationship between investment
and income figure 18-4
the equilibrium level of income
figure 18-7
the level of autonomous spending,
the marginal propensity to consume
and the equilibrium level of income
figure 18-8
the multiplier figure 18-10
CHECKLIST
ECS1601/1 101
Well Satis-
factory
Must
redo
Need
help
Calculations
private consumption expendi-
ture
the level of autonomous
spending
the marginal propensity to
consume
the multiplier
the equilibrium level of in-
come
102 Economics 1B
NOTES
ECS1601/1/20112013 103
STUDY UNIT 7
Macroeconomic
theory
Outcome 1: Explain
economy as a whole
macroeconomic model
Keynesian models
including the
government and the
foreign sector
More on macro-
economic theory and
policy
model with a
government
model of an open
economy
Impact of the
government and the
foreign sector
104 Economics 1B
ECS1601/1 105
Gordhans Budget gets warm welcome
South African Finances Minister Pravin Gordhans maiden national budget
has been warmly received, with the markets giving the minister a resounding
thumbs up.
The rand firmed up to 10c against the US dollar at one stage, and bond yields
moved 10 basis points stronger at their best level.
Opposition politicians also gave the Minister a warm reaction, saying he stuck
with the strategy that has carried us this far.
Economists, too were singing the ministers praises, welcoming in particular
that no changes were announced to South Africas inflation targets.
Cees Bruggemans, Chief Economist of First National Bank said the Minister
may have been accommodative, and the economy in recovery, but for many
the times will remain tough, particularly the working and middle classes that
form the backbone of our modern economy.
All in all, an impressive maiden budget speech in which the Minister had to
take into account widely varying interests and views of many groupings in
society against a terrible global backdrop, but doing so with great finesse from
a position of financial strength.
Peter Attard Montalto, emerging markets economist at Nomura International,
said the Budget coming in broadly as expected with no major changes to tax
or exchange policy, no mandate change.
Overall reaction nothing too dramatic save for mining royalties. The
industrial policy announcement tomorrow may well be more interesting.
Annabel Bishop, Economist at Investec said the budget was wholly lacking in
surprises and instead provided a very balanced approach to dealing with an
economy newly emerged from severe recession.
She noted that despite a lot of noise to the contrary, there was no increase in
taxes, besides fuel and sin taxes, and instead income tax relief of R6.5 billion
was provided, largely to counter the effects of rising inflation causing bracket
creep.
Governments spending commitments remain substantial, rising slightly to
R907 billion for 2010/11 from the previously estimated R905 billion.
ECONOMICS IN ACTION
Keynesian models
including the government
and the foreign sector
106 Economics 1B
What do you think? Can the government do more to stimulate the economy? In this
study unit, we will extend the model introduced in the previous study unit. We will
now include the government and the foreign sector. In so doing we will examine the
impact of government spending, taxes, exports and imports on aggregate spending, the
multiplier and the equilibrium level of income. The inclusion of the government allows
us to introduce fiscal policy.
explain the impact of the introduction of government spending on aggregate
spending, the multiplier and the equilibrium level of income
explain the difference between income and disposable income
explain the impact of the introduction of a proportional income tax on
- private consumption expenditure
- autonomous spending
- the multiplier
explain, using a diagram, the impact of a change in government spending or a
change in the tax rate on the equilibrium level of income
calculate
- the level of autonomous spending
- the multiplier
- the required change in government spending to reach full employment
explain the impact of changes in autonomous exports and induced imports on the
equilibrium level of income
Although the chapter in the prescribed book is fairly long, only a few new concepts are
introduced and incorporated into the macroeconomic model of chapter 18. Much of the
chapter consists of a detailed explanation of how government spending (G), taxes (T),
With a shortfall in revenue of R70 billion estimated to date, the budget deficit
for 2009/10 is expected at 7.3 percent and 6.2 percent in 2010/11, falling to
4.0 percent in 2011/12 and the Minister specifically recognised the need for
lower budget deficits and fiscal health in the achievement of a competitive real
exchange rate.
He added that lower wage-inflation, higher reserves and a more flexible and
dynamic economy were needed to assist the currencys competitiveness, but
made no mention of any plans to peg the rand, instead rightly asserting that
there is no silver bullet in increasing the competitiveness of SA (and South
African products).
There were no announced changes either to exchange controls or to the
inflation targeting framework and Minister Gordhan is steering a very steady
ship following on from the successes of his predecessor, Bishop concluded.
I-Net Bridge. Published on the web by Business Report on February 18, 2010
CONTENTS
ECS1601/1 107
exports (X) and imports (Z) affect aggregate spending (A), the multiplier (), and the
equilibrium level of income (Y
0
), as well as numerical examples of these effects.
7.1 The simple Keynesian model of a closed economy with
a government
Government spending
This section starts by introducing government spending (G). Make sure you understand
why G is regarded as autonomous, how it affects aggregate spending and the equilibrium
level of income, and why it does not affect the multiplier.
T F
(1) In the simple Keynesian model of an economy with a govern-
ment sector, prices, wages and interest rates are regarded as
given.
(2) The introduction of the government into the Keynesian
model makes it possible to analyse the impact of monetary
policy.
(3) Government spending increases as total income Y increases.
(4) Government spending is essentially a political issue, and the
level of government spending is therefore not related sys-
tematically to any economic variable.
(5) The introduction of government spending increases the size
of the multiplier.
(6) The introduction of government spending leaves the multi-
plier unchanged.
(7) The introduction of government spending increases the
level of aggregate spending in the economy.
(8) Increases in government spending could be used to raise the
level of total production and income in the economy.
(9) Government spending forms part of total autonomous
spending A.
STUDY
Boxes 19-1 to 19-3 and 19-5 of the prescribed book
ACTIVITY 7.1
108 Economics 1B
Short questions
of this study unit.
(a) Why is government spending classified as part of autonomous spending in the
Keynesian model? (2)
(b) How does government spending affect
(i) aggregate spending
(ii) the multiplier in the Keynesian model? (2)
(c) *Use a diagram to illustrate the impact of an increase in government spending
in a Keynesian model of an economy without a foreign sector, and comment on
the size of the change in the equilibrium level of income relative to the change in
government spending. (8)
Taxes
The next variable included in the model is taxes. Make sure that you understand what
a proportional tax is (explained in chapter 16) and why we have to distinguish between
income and disposable income once taxes are included in the model. Also, study the
impact of taxes on aggregate spending, the multiplier and the equilibrium level of income.
T F
(1) When taxes are introduced in the Keynesian model, we have
to distinguish between total income and disposable income.
(2) The introduction of a proportional income tax in the
Keynesian model reduces the slope of both the consumption
function and the total spending curve; as a result, the
multiplier also becomes smaller.
(3) Taxes form part of autonomous spending in the economy.
(4) If c = 6/7 and t = 1/8, the value of the multiplier is 8.
(5) If the marginal propensity to consume = 4/7 and the tax rate
= 1/8, then the multiplier will be 2.
ACTIVITY 7.2
ECS1601/1 109
Short questions
of this study unit.
(a) Explain the difference between income Y and disposable income Y
d
. (2)
(b) Explain how a proportional income tax affects
(i) autonomous spending
(ii) aggregate spending
(iii) the multiplier in the Keynesian model (5)
(c) *Calculate the multiplier if
(i) c = 5/6; t = 1/10
(ii) c = 3/4; t = 1/9
(iii) c = 5/8; t = 1/5 (2 marks each)
The equilibrium level of income in an economy with a government sector
This subsection deals with the combined effect of government spending and taxes on
the equilibrium level of income. Study it and work through the numerical example in box
19-3 to ensure that you can work with a Keynesian model that includes the government
sector.
T F
(1) If autonomous consumption = 100, the marginal propensity
to consume = 5/6, investment = 200, government spending
= 200 and the tax rate = 1/5, then the equilibrium level of
income in a Keynesian model of a closed economy with a
government = 1 500.
Short question
(a) *Calculate the equilibrium level of income in an economy without a foreign sector
if
(i) C = R100 million; I = R200 million; G = R280 million; c = 4/5; t = 1/6
(ii) C = R50 million; I = R250 million; G = R300 million; c = 9/11; t = 1/12
(iii) C = R30 million; I = R200 million; G = R400 million; c = 3/4; t = 1/9
(3 marks each)
ACTIVITY 7.3
110 Economics 1B
Fiscal policy
The introduction of government spending and taxation means that we can now analyse
the impact of fiscal policy (which was originally defined in chapter 16).
Boxes 19-1 to 19-3 contain numerical examples of the impact of government spending
and a proportional income tax on aggregate spending, the multiplier and the equilibrium
level of income. You should be able to do the type of calculations illustrated in the
examples. The examination paper will usually include questions involving similar calcu-
lations. Box 19-5 contains a numerical example of the impact of fiscal policy on aggregate
spending and the equilibrium level of income. Again, you should be able to do the type
of calculations illustrated in the example.
T F
(1) Government can use fiscal policy (that is, a change in
government spending and/or taxes) to change the equilibrium
level of income.
(2) If government wishes to reduce the equilibrium level of
income, it can reduce government spending or increase the
tax rate.
(3) If the equilibrium level of income Y
0
is below the full-
employment level of income Y
f
, government spending
should be increased by the required increase in income to
close the gap.
(4) If the marginal propensity to consume = 2/3, the tax rate
= 1/4 and the equilibrium level of income = 2 500, then
government spending must be increased by 500 to raise the
equilibrium level of income to 3 000.
(5) If Y
f
= R240 billion, A = R60 billion, c = 3/4 and t = 1/9, then
government spending must increase by R20 billion to wipe
out the gap between the equilibrium level of income and the
full-employment level of income.
Short questions
Note: Solutions to the questions are provided at the end of this study unit.
(a) Define fiscal policy and explain how the equilibrium level of income can be raised
through fiscal policy in a Keynesian model. (8)
(b) Suppose the marginal propensity to consume = 5/6 and the tax rate = 1/10.
Government wants to increase the equilibrium level of income by R40 billion.
Calculate by how much government spending needs to be increased to raise the
equilibrium level of income by this amount. (4)
ACTIVITY 7.4
ECS1601/1 111
(c) If C = R40 million, I = R260 million, G = R200 million, c = 7/8, t = 1/7 and
Y
f
= R2 400 million, by how much must government spending increase to bring
the economy to full employment? Show all your calculations. (6)
(d) Suppose the equilibrium level of income is below the full-employment level of
income and that government wants to eliminate the gap. Explain, with the aid of a
diagram, how this can be achieved by changing the level of government spending.
Also, comment on the size of the change in government spending which is
required relative to the desired change in the level of income. (10)
7.2 The simple Keynesian model of an open economy with
a foreign sector
The model is now extended to include the foreign sector. South Africa has an open,
developing economy. It is important to take note of the impact of the foreign sector on
the level of production and income in the economy.
Exports
Exports are seen as autonomous, as there is no systematic relationship between income
and exports. Exports depend mainly on economic conditions in the rest of the world,
a countrys international competitiveness and exchange rates. Exports are just added
to the other expenditure components and they do not affect the size of the multiplier.
Autonomous imports
If we assume to keep matters simple that imports do not depend on income, we
are able to treat autonomous imports like any autonomous expenditure component.
The only difference is that, seeing that imports are a leakage from the circular flow of
income and spending, it is subtracted from total expenditure. The size of the multiplier
is not affected, however. The more realistic approach is to recognise that a positive
relationship exists between imports and income.
Induced imports
When the level of income in the domestic economy increases, it almost automatically
leads to an increase in imports. Though the algebraic treatment of induced imports looks
complicated, it is not the case. It is treated in the same way as the private consumption
function. Induced imports consist of an autonomous component, Z, and an induced
component, mY. The extent to which imports increase for a given increase in income
depends on the marginal propensity to import, m. A smaller portion of any increase in
income is spent locally; consequently, the size of the multiplier decreases.
STUDY
Boxes 19-7 and 19-8 of the prescribed book
112 Economics 1B
Box 19-8 contains a numerical example of the impact of the external sector on aggregate
spending, the multiplier and the equilibrium level of income. You should be able to do
the type of calculations illustrated in the example.
Note: Except when otherwise stated, we will treat imports as a function of income in
this module in other words, all questions in the assignments and examination will refer
to induced imports (including the impact of the marginal propensity to import on the
multiplier).
T F
(1) Exports X represent a withdrawal from the circular flow of
income and spending in the domestic economy, since the
goods concerned flow out of the country.
(2) Imports Z represent an injection into the circular flow of
income and spending in the domestic economy since the
goods flow into the country.
(3) Exports depend mainly on economic conditions in the rest
of the world, a countrys international competitiveness and
exchange rates.
(4) There is no systematic relationship between the level of
exports X and the level of domestic income Y; exports are
therefore assumed to be autonomous with respect to total
income Y.
(5) Exports do not affect the size of the multiplier.
(6) Imports have a negative sign in the equation for aggregate
spending because they represent leakages or withdrawals
from the circular flow of income and spending in the
domestic economy.
(7) Imports, like taxes, are a leakage from the flow of income
and spending, and therefore reduce the equilibrium level of
income.
(8) Total production and income in the economy can be raised
by increasing imports and decreasing exports.
(9) If net exports are negative, aggregate spending A will be
lower at each level of income than before the introduction
of the foreign sector.
ACTIVITY 7.5
ECS1601/1 113
Short questions
of this study unit.
(a) State three possible determinants of the demand for South African exports
and explain why exports are classified as part of autonomous spending in the
Keynesian model. (5)
(b) *Use a diagram to illustrate the impact of an increase in exports on the equilibrium
level of income in a Keynesian model of an economy with a government sector
and a foreign sector, and comment on the size of the change in income relative to
the size of the change in exports. (8)
(c) *Calculate the multiplier if
(i) c = 5/6; t = 1/10; m = 1/4
(ii) c = 3/4; t = 1/9; m = 1/6
(iii) c = 5/8; t = 1/5; m = 1/8 (2 marks each)
(d) *Suppose that the marginal propensity to consume = 9/10, the tax rate = 1/6
and the marginal propensity to import = 1/12. Calculate the effect of a reduction
of R5 billion in autonomous net exports on the equilibrium level of income in a
Keynesian model of an economy with a foreign sector. (4)
7.3 Impact of the government and the foreign sector: A
brief summary
Study the summary of the impact of the government and the foreign sector as provided
in this section.
T F
(1) In an economy with a government and a foreign sector,
aggregate spending A = C + I + G + X Z. In the above
equation, I, G, X and Z are autonomous with relation to Y.
STUDY
ACTIVITY 7.6
114 Economics 1B
Short question
(a) Given the following information:
autonomous consumption = R100m
investment spending = R200m
government spending = R150m
autonomous net exports = R50m
marginal propensity to consume = 8/9
proportional tax rate = 1/4
marginal propensity to import = 1/6
full-employment level of income = R1 600m
Calculate
(i) autonomous spending
(ii) the multiplier
(iii) the equilibrium level of income
(iv) the change in government spending required to attain full employment
Show all your calculations. (8)
We would like to draw your attention to three variants of the simple Keynesian model
presented in chapters 18 and 19. The first is a model of a closed economy without a
government sector in which there are only households and firms. The second is a model
of a closed economy with a government. In this model, there are households, firms and a
government. The last is a model of an open economy with a , in other words, the foreign
sector is also included. The three variants may be summarised as follows:
(1) The simple Keynesian model of a closed economy without a government:
A = C + I
(that is, total spending consists of spending by households C and spending by firms
on capital goods I)
The multiplier:

1 c
1
-
= a
(2) The simple Keynesian model of a closed economy with a government:
A = C + I + G
(that is, total spending now also includes spending by government G)
The multiplier:

1 c (1 t)
1
- -
= a
AN IMPORTANT NOTE
ECS1601/1 115
(3) The simple Keynesian model of an open economy with a government:
A = C + I + G + (X Z)
(The addition of the foreign sector means that autonomous exports X and induced
imports Z also have to be taken into account.)
The multiplier:

1 c (1 )
1
t m - -
= a
+
Remember that a closed economy means that the foreign sector is excluded
(that is, X and Z are excluded), while an open economy means that the foreign
sector is included.
of the role of government in the economy, do you still feel that the South African govern-
ment can do more in terms of spending and taxes to stimulate the economy?
In the subsection on further reading in the previous study unit, we took a closer look
at the use of models to convey economic principles. Having had a look at the extended
Keynesian model, do you think it can be useful in the South African context?
ACTIVITY 7.1
(1) T
(2) F
(3) F
(4) T
(5) F
(6) T
(7) T
(8) T
(9) T
ECONOMICS IN ACTION
(LOOKING BACK)
FURTHER READING
SOLUTIONS
116 Economics 1B
SHORT QUESTIONS
(c) What is required here is a fully annotated diagram like the one in figure 19-6,
along with a written explanation. The increase in income will be greater than the
increase in government spending because of the multiplier effect. Note that you
are required to present a model of a closed economy, which means that there
are no exports or imports. In this case, you will be penalised by a mark or two if
you do include exports and imports in your diagram.
ACTIVITY 7.2
(1) T
(2) T
(3) F
(4) F
(5) T
1 c (1 t)
1
1
7
6
1
8
1
1
substitute c with
7
6
and t with
8
1
1
7
6
8
7
1
first calculate the impact of the tax 1
8
1
8
7
1
4
3
1
7
6
8
7
4
3
4
1
1
1
4
1
1
1
4
1
4
4
#
' #
=
- -
=
- -
=
-
- =
=
-
=
= =
=
=
a
`
`
` `
j
j
j j
1 c (1 t)
1
1
7
4
1
8
1
1
substitute c with
7
4
and t with
8
1
1
7
4
8
7
1
8
1
8
7
1
2
1
1
7
4
8
7
2
1
2
1
1
1
2
1
1
1
2
1
2
2
#
' #
=
- -
=
- -
=
-
- =
=
-
=
= =
=
=
a
`
`
` `
j
j
j j
ECS1601/1 117
SHORT QUESTIONS
(c) The multiplier can be calculated by substituting the given values into the equation:
(i)
(ii)
(iii)
1 c (1 t)
1
1
6
5
1
10
1
1
substitute c with
6
5
and t with
10
1
1
6
5
10
9
1
10
1
10
9
1
4
3
1
6
5
10
9
4
3
60
45
4
3
4
1
1
1
4
1
1
1
4
1
4
4
#
' #
=
- -
=
- -
=
-
- =
=
-
= =
= =
=
=
a
`
`
` `
`
j
j
j j
j
1 c (1 t)
1
1
4
3
1
9
1
1
substitute c with
4
3
and t with
9
1
1
4
3
9
8
1
9
1
9
8
1
3
2
1
4
3
9
8
3
2
36
24
3
2
3
1
1
1
3
1
1
1
3
1
3
3
#
' #
=
- -
=
- -
=
-
- =
=
-
= =
= =
=
=
a
`
`
` `
`
j
j
j j
j
1 c (1 t)
1
1
8
5
1
5
1
1
substitute c with
8
5
and t with
5
1
1
8
5
5
4
1
5
1
5
4
1
2
1
1
8
5
5
4
2
1
40
20
2
1
2
1
1
1
2
1
1
1
2
1
2
2
#
' #
=
- -
=
- -
=
-
- =
=
-
= =
= =
=
=
a
`
`
` `
`
j
j
j j
j
118 Economics 1B
ACTIVITY 7.3
TRUE/FALSE STATEMENT
(1) T Y
0
= A
The multiplier:

A = C + I + G = R(100 + 200 + 200) million
= R500 million
Equilibrium level of income:
Y
0
= A
= 3 R500 million
= R1 500 million
SHORT QUESTIONS
(a) (i) Y
0
= A
The multiplier:

1 c (1 t)
1
1
5
4
1
6
1
1
1
5
4
6
5
1
1
3
2
1
3
1
1
1
3
3
=
- -
=
- -
=
-
=
-
=
=
=
a
`
`
j
j
1 c (1 t)
1
1
6
5
1
5
1
1
1
6
5
5
4
1
1
3
2
1
3
1
1
1
3
3
=
- -
=
- -
=
-
=
-
=
=
=
a
`
`
j
j
ECS1601/1 119
A = C + I + G = R(100 + 200 + 280) million
= R580 million
Y
0
= A
= 3 R580 million
= R1 740 million
(ii) Y
0
= A
The multiplier:

1 c (1 t)
1
1
11
9
1
12
1
1
1
11
9
12
11
1
1
4
3
1
4
1
1
1
4
4
=
- -
=
- -
=
-
=
-
=
=
=
a
`
`
j
j
A = C + I + G = R(50 + 250 + 300) million
= R600 million
Y
0
= A
= 4 R600 million
= R2 400 million
(iii) Y
0
= A
The multiplier:

1 c (1 t)
1
1
4
3
1
9
1
1
1
4
3
9
8
1
1
3
2
1
3
1
1
1
3
3
=
- -
=
- -
=
-
=
-
=
=
=
a
`
`
j
j
120 Economics 1B
A = C + I + G = R(30 + 200 + 400) million
= R630 million
Y
0
= A
= 3 R630 million
= R1 890 million
ACTIVITY 7.4
(1) T
(2) T
(3) F
(4) F Equilibrium income must increase from 2 500 to 3 000, that is, with 500.
We know that an increase in government spending will put the multiplier
process in motion. This means that the required increase in government
spending is less than 500. To determine the amount by which government
spending has to increase, the 500 has to be divided by the multiplier.
Therefore, you first have to calculate the multiplier.
The multiplier:

1 c (1 t)
1
1
3
2
1
4
1
1
1
3
2
4
3
1
1
2
1
1
2
1
1
1
2
2
=
- -
=
- -
=
-
=
-
=
=
=
a
`
`
j
j
The required change in government spending is as follows:
G
Y
2
3 000 2 500
2
500
250
O
O
=
=
-
=
=
a
ECS1601/1 121
(5) T This statement differs from the previous one in that we first have to
calculate the equilibrium level of income.
The equilibrium level of income:
Y
0
= A
The multiplier:

1 c (1 t)
1
1
4
3
1
9
1
1
1
4
3
9
8
1
1
3
2
1
3
1
1
1
3
3
=
- -
=
- -
=
-
=
-
=
=
=
a
`
`
j
j
A = R60 billion (given)
Thus, equilibrium is
Y
0
= A = 3 R60 billion
= R180 billion
The required change in government spending is therefore the following:

G
Y
3
240 180
3
60
R20 billion
O
O
=
=
-
=
=
a
SHORT QUESTIONS
(a) Fiscal policy refers to the use of variables such as government spending (G) and
taxes (T) to influence important macroeconomic variables such as total production
or income in the economy. The rest of the question can be answered in words
only or with the aid of diagrams. If possible, use diagrams. In this case, figure
19-6 is again applicable since an increase in government spending is one of
the instruments of fiscal policy which can be used to raise the equilibrium level of
income. Another possibility is to lower the tax rate. This will increase the level
of disposable income at each level of income and therefore raise consumption
spending at each level of income. A lower tax rate implies a larger multiplier. This
can be illustrated by an increase in the slope of the aggregate spending curve:
122 Economics 1B
Y
0
= original equilibrium level of income
Y
1
= new equilibrium level of income after the the tax rate has been lowered
(b)
1 c (1 t)
1
1
6
5
1
10
1
1
1
6
5
10
9
1
1
4
3
1
4
1
1
1
4
4
=
- -
=
- -
=
-
=
-
=
=
=
a
`
`
j
j
The income gap to be filled is R40 billion. To obtain the required increase in
government spending, this gap has to be divided by the multiplier. The answer is
thus R40 billion 4 = R10 billion.
A
A
0
E
1
A = Y
Y
A
0
= A
0
+c (1 t
0
)Y
A
1
= A
0
+c (1 t
0
)Y
0
45
E
0
Y
0
Y
1
ECS1601/1 123
(c) First, you have to calculate the equilibrium level of income:

1 c (1 t)
1
1
8
7
1
7
1
1
1
8
7
7
6
1
1
4
3
1
4
1
1
1
4
4
=
- -
=
- -
=
-
=
-
=
=
=
a
`
`
j
j
A = R(40 + 260 + 200) million = R500 million
Y
0
= A = 4 x R500 million = R2 000 million
With the full-employment level of income (Y
f
) at R2 400 million, a gap of R400
million has to be filled. To determine the amount by which government spending
has to increase in order to close this gap the R400 million has to be divided by
the multiplier (that is, 4).
The required increase in government spending is therefore R100 million.
You can always check your answer by using the new level of G (that is, R200
million + R100 million) to calculate the new equilibrium level of income. The
increase in government spending means that total autonomous spending A now
becomes R600 million. Multiplying A by the multiplier (4) yields R2 400 million,
which is equal to the full-employment level of income.
(d) To answer this question you have to provide a diagram such as the one in figure
19-6 along with a written explanation. As explained in the solution to question (c),
the required increase in government spending will be equal to the gap between
the equilibrium level of income (Y
0
) and the full-employment level of income (Y
f
)
divided by the multiplier.
ACTIVITY 7.5
(1) F
(2) F
(3) T
(4) T
(5) T
(6) T
(7) T
(8) F
(9) T
124 Economics 1B
SHORT QUESTIONS
(b) The answer to this question is similar to the answer to activity 7.1(c). The only
difference is that aggregate spending (A) now includes net exports (X Z). You
can use a figure that is similar to figure 19-6, but A
0
will now be C + I + G + (X
Z)
0
and A
1
will be C + I + G + (X Z)
1
, to indicate that the increase in aggregate
spending (illustrated by an upward shift of the aggregate spending curve) is the
result of an increase in exports (X Z). Again, the resultant increase in the
equilibrium level of income will be equal to the increase in exports multiplied by
the multiplier.
(c) The multiplier can be calculated by substituting the given values into the equation:
(i)
(ii)
1 c(1 t)
1
1
6
5
1
10
1
4
1
1
substitute with
6
5
, with
10
1
and with
4
1
1
6
5
10
9
4
1
1
first calculate the tax 1
10
1
10
9
1
4
3
4
1
1
simplify
6
5
10
9
4
3
4
1
4
3
4
1
1
1
4
4
thus
4
4
4
3
4
1
4
2
2
1
2
1
1
2
c t m
m
#
=
- - +
=
- - +
=
- +
- =
=
- +
=
=
- +
= - + = =
=
=
a
`
`
` `
j
j
j j
and
1 c(1 t)
1
1
4
3
1
9
1
6
1
1
substitute with
4
3
, with
9
1
and with
6
1
1
4
3
9
8
6
1
1
9
1
9
8
1
3
2
6
1
1
simplify
4
3
9
8
3
2
6
6
6
4
6
1
1
1
6
6
and
3
2
6
4
6
6
6
4
6
1
6
3
2
1
2
1
1
2
m
c t m
#
=
- - +
=
- - +
=
- +
- =
=
- +
=
=
- +
= = - + = =
=
=
a
`
`
` `
j
j
j j
ECS1601/1 125
(iii)
(d)
1 c(1 t)
1
1
10
9
1
6
1
12
1
1
1
10
9
6
5
12
1
1
1
4
3
12
1
1
12
12
12
9
12
1
1
3
1
1
3
m
=
- - +
=
- - +
=
- +
=
- +
=
- +
=
=
a
`
`
j
j
A reduction of R5 billion in autonomous net exports will therefore reduce the
equilibrium level of income by R(5 3) billion, that is, by R15 billion.
ACTIVITY 7.6
(1) F
SHORT QUESTIONS
(a) (i) A = C + I + G + (X Z) = R(100 + 200 + 150 + 50) million
= R500 million
thus
1 c(1 t)
1
1
8
5
1
5
1
8
1
1
substitute with
8
5
, with
5
1
and with
8
1
1
8
5
5
4
8
1
1
5
1
5
4
1
2
1
8
1
1
simplify
8
5
5
4
2
1
8
8
8
4
8
1
1
1
8
8
and
2
1
8
4
8
8
8
4
8
1
8
5
8
5
1
5
8
or 1
5
3
m
c t m
#
=
- - +
=
- - +
=
- +
- =
=
- +
=
=
- +
= = - + =
=
=
a
`
`
` `
j
j
j j
126 Economics 1B
(ii)
(iii) Y
0
= A = 2 R500 million = R1 000 million
(iv) Y
f
= R1 600 million (given)
Y
0
= R1 000 million (calculated)
= 2 (calculated)

2
1600 1000
2
600
300
Y
O
O
=
=
-
=
=
a
A
The required increase in G is therefore R300 million.
Well Satis-
factory
Must
redo
Need
help
Concepts
I am able to
define fiscal policy
Explanations
I am able to
explain the impact of the introduction
of government spending on aggre-
gate spending, the multiplier and the
equilibrium level of income
explain the impact of the introduction
of a proportional income tax on
1 c(1 t)
1
1
9
8
1
4
1
6
1
1
1
9
8
4
3
6
1
1
1
3
2
6
1
1
6
6
6
4
6
1
1
6
3
1
3
6
2
m
=
- - +
=
- - +
=
- +
=
- +
=
- +
=
= =
a
`
`
j
j
CHECKLIST
ECS1601/1 127
Well Satis-
factory
Must
redo
Need
help
private consumption expendi-
ture
autonomous spending
the multiplier
come
explain the difference between in-
come and disposable income
Diagram
I am able to
aid of a diagram
the impact of the introduction of a
proportional income tax on private
consumption expenditure figure
19-4
the impact of a change in government
spending or of a change in the tax rate
on the equilibrium level of income
figures 19-5 and 19-6
the impact of fiscal policy on the
equilibrium level of income figures
19-5 and 19-6
the impact of changes in exports and
imports on the equilibrium level of
income figure 19-8
Calculations
autonomous spending
the multiplier
come
the required change in govern-
ment spending to achieve full
employment
128 Economics 1B
NOTES
ECS1601/1/20112013 129
STUDY UNIT 8
Macroeconomic
theory
Outcome 1: Explain
economy as a whole
macroeconomic model
Keynesian models
including the
government and the
foreign sector
More on macro-
economic theory and
policy
The AD-AS model
The monetary
transmission
mechanism
Monetary and fiscal
policy in the AD-AS
framework
130 Economics 1B
ECS1601/1 131
Central bank comments at South Africa rates meeting
Below are comments central bank Governor Gill Marcus made at the
announcement of South Africas central bank monetary policy committee
decision to cut its repo rate by 50 basis points to 6.5 percent, and quotes
from a central bank statement.
RATE DECISION
The assessment of the Monetary Policy Committee is that despite clear signs
that the economy has emerged from the recession, the pace of recovery is
expected to remain slow.
The improved inflation environment has provided some space for an
additional monetary stimulus to reinforce the sustainability of the upswing
without jeopardising the achievement of the inflation target.
The MPC has therefore decided to reduce the repurchase rate by 50 basis
points to 6.5 percent per annum with effect from 26 March 2010.
RAND
While an appreciated rand exchange rate is a positive factor in the inflation
outlook, an excessively strong exchange rate is a cause for concern from the
perspective of overall macroeconomic balance.
It is difficult to determine with precision an appropriate level of the exchange
rate, but at recent levels the exchange rate may contribute to constraints in
the recovery of export and import-competing sectors of the economy.
INFLATION
We are seeing moderate improvement to the economy...the risk to inflation
has moderated somehow. The CPI forecast for the bank has also improved
especially for 2010. Improvement in the forecast is due to favourable food
prices.
Inflation expectations are reasonably well anchored due to inflation outcome,
the credibility of policy and the purposefulness that we have in achieving our
goals. Inflation expectations have improved but are still above the upper end
of the target range.
Inflation is expected to average 5.3 per cent and 5.4 per cent in 2010 and
2011 respectively, and to reach a low point at an average of 4.9 per cent
during the third quarter of 2010.
Despite the reduced uncertainty associated with the electricity tariff
increases, electricity and other administered price increases remain a threat
to the inflation outlook.
ECONOMICS IN ACTION
More on macroeconomic
theory and policy
132 Economics 1B
In chapter 15 of the prescribed book, we introduced monetary policy. However, we did
not examine whether monetary variables influence economic activity. In this study unit,
we will show how aggregate demand and aggregate supply curves can be used to analyse
the linkage between the monetary and real sectors of the economy.
use aggregate demand (AD) and aggregate supply (AS) curves to analyse monetary
and fiscal policies and supply shocks
explain the monetary transmission mechanism
explain the policy dilemma in an open economy
8.1 The aggregate demand-aggregate supply model
This is an important section which shows how aggregate demand (AD) and aggregate
supply (AS) can be combined to analyse a variety of macroeconomic issues. This section
should be studied in detail. Take note of the definition of the AD curve and the difference
between the AD curve and a microeconomic demand curve (that is, a demand curve for
a specific good or service). Note the factors that can cause a shift of the AD curve. The
definition of the AS curve, the difference between an AS curve and a microeconomic
INFLATION TARGETING
Absolutely inflation targeting is our constitutional mandate, its something
that enables us to be accountable on a regular basis. There is no change to
inflation targeting.
DEMAND
If we looked at the demand side of the economy its still improving, but very
slow, it poses no upside risk to the inflation outlook as far as we see.
There are clear signs that the economy has come out of recession, but the
pace of recovery is likely to remain slow.
Demand will be constrained by the following factors, household indebtedness
which has increased somewhat to 79.8 percent of disposable income in the
fourth quarter, by access to credit and by employment trends. Reuters.
Published on the web by Business Report on March 25, 2010.
STUDY
Table 20-1: Impact of key changes on the aggregate demand curve
Table 20-2: Impact of key changes on the aggregate supply curve
CONTENTS
ECS1601/1 133
supply curve, and the factors which can cause a shift of the AS curve are also important.
The subsections on shifts in aggregate demand and shifts in aggregate supply require
careful attention. You should be able to use the AD-AS model to explain the impact on
the price level and total production (or income) in the economy of (a) expansionary and
contractionary monetary and fiscal policies and (b) a change in aggregate supply (for
example, a supply shock).
T F
(1) The introduction of the AD-AS model means that the
assumption of a fixed price level (as in the simple Keynesian
models) has been dropped.
(2) The AD-AS model can be used to analyse changes in the
price level.
(3) The AD curve illustrates the levels of total expenditure in the
economy at various price levels.
(4) When government spending increases, the aggregate
demand curve shifts to the right.
(5) If the interest rate increases, the aggregate demand curve
will shift to the left.
(6) The AS curve illustrates the levels of output in the economy,
which will be supplied at different price levels.
(7) An increase in the cost of production (for example, the cost
of labour) will result in an upward (or leftward) shift of the
aggregate supply curve.
(8) An unfavourable supply shock (for example, an increase in
the price of oil) will result in an increase in the domestic cost
of production of each level of output.
(9) An increase in aggregate demand is usually accompanied by
a fall in the equilibrium level of income.
(10) A contractionary fiscal policy will shift the aggregate demand
curve to the left.
(11) An increase in aggregate supply and a fall in aggregate
demand, which happen simultaneously, will lead to a
decrease in the price level.
(12) Stagflation is a term used to describe high unemployment
accompanied by a high inflation rate.
ACTIVITY 8.1
134 Economics 1B
T F
(13) When the AS curve is very steep, an increase in aggregate
demand leads to an increase in production with little or no
increase in the price level.
(14) A decrease in aggregate supply, illustrated by a leftward or
upward shift of the AS curve, will haves an adverse effect
on both the price level and the level of production in the
economy.
Short questions
of this study unit.
(a) Define stagflation. (2)
(b) *Use aggregate demand (AD) and aggregate supply (AS) curves to analyse the
impact of an expansionary fiscal policy on prices and production in the economy
when income is below the full-employment level. (8)
(c) *Use aggregate demand (AD) and aggregate supply (AS) curves to analyse the
impact of a supply shock on prices and production in the economy. (8)
(d) *Explain, with the aid of a diagram, why policy makers cannot solve the stagflation
dilemma using only demand management (that is, monetary and fiscal policies).
(8)
8.2 The monetary transmission mechanism
In the macroeconomic model developed in chapters 18 and 19, it was assumed that the
money supply and the interest rate are fixed. By assuming a fixed money supply and a
fixed interest rate we have actually eliminated the impact of money and monetary policy.
In the AD-AS model introduced in the previous section, we dropped these assumptions
and allowed for the impact of a variable interest rate on aggregate demand. We said that
a fall in the interest rate would increase aggregate demand (illustrated by a rightward
shift of the AD curve) and that an increase in the interest rate would reduce aggregate
demand (illustrated by a leftward shift of the AD curve). We now need to examine
these links more closely, that is, examine how changes in interest rates will affect total
spending, production, income and prices in the economy. The way in which changes in
the monetary sector are transmitted to the rest of the economy is called the monetary
transmission mechanism. This section must be studied in detail. Note that the subsection
on other links between interest rates and the rest of the economy is not prescribed for
this module.
STUDY
Section 20.2 of the prescribed book except for the subsection on other links between
interest rates and the rest of the economy
ECS1601/1 135
T F
(1) The monetary transmission mechanism is the process
through which changes in the interest rate give rise to
changes in variables such as spending and production.
(2) The link between the interest rate and investment spending
plays no role in the monetary transmission mechanism.
Short questions
Note: Solutions to the questions marked with an asterisk (*) are provided at the end of
this study unit.
(a) Define a monetary transmission mechanism. (2)
(b) Explain why the link between the interest rate and investment spending is
important in the monetary transmission mechanism. (2)
(c) *Use the AD-AS model and explain, with the aid of diagrams, how an increase
in the interest rate will affect the level of prices, production and income in the
economy. (10)
(d) *Summarise your explanation in (c) using symbols. (5)
(e) *The following statement is made in the prescribed book: To summarise: The
smaller the interest elasticity of investment demand, and also the steeper the
AS curve, the less effective an expansionary monetary policy will be as a means
of stimulating the economy. Do you agree? Use diagrams to substantiate your
answer. (10)
8.3 Monetary and fiscal policy in the AD-AS framework
In this section, we will summarise some of the earlier discussions and add a few further
topics with regard to monetary and fiscal policy. You should be able to define and
distinguish between fiscal and monetary policy. You must know the meanings of demand
management, expansionary (or stimulatory) policy and restrictive (or contractionary)
policy. You must be able to define and discuss the different lags associated with fiscal
and monetary policy. Pay special attention to the subsection on the policy dilemma in an
open economy.
ACTIVITY 8.2
STUDY
136 Economics 1B
T F
(1) Restrictive monetary and fiscal policies are normally applied
during recessions.
(2) Monetary policy entails the manipulation of government
spending (G) and taxation (T).
(3) The recognition lag would be shortened if economic data
were available more timeously.
(4) The impact lag could be reduced by tackling bureaucracy
and inefficiency of the government.
Short questions
(a) Distinguish between fiscal and monetary policy. (6)
(b) Discuss the four lags associated with the implementation of fisal and monetary
policy. (10)
(c) Discuss, with the aid of a diagram, the policy dilemma in an open economy. (10)
of the AD-AS model and of the monetary transmission mechanism, do you still hold the
same views of the role the SARB plays in the South African economy?
Read the subsection, Other links between interest rates and the rest of the economy,
in section 20.2 of the prescribed book. As you can see, the closer we come to the real
world, the more complex our models become. What do you think the emphasis of
interest rate policy should be? Should the SARB concentrate on the internal value of the
rand, or should the external value of the rand take preference?
ACTIVITY 8.3
ECONOMICS IN ACTION
(LOOKING BACK)
FURTHER READING
ECS1601/1 137
ACTIVITY 8.1
(1) T
(2) T
(3) T
(4) T
(5) T
(6) T
(7) T
(8) T
(9) F
(10) T
(11) T
(12) T
(13) F
(14) T
SHORT QUESTIONS
(b) Here you have to start by providing a diagram of the AD-AS model showing the
equilibrium price level (P) and the equilibrium level of production or income (Y).
Also, clearly indicate that the full-employment level of income is greater than the
equilibrium level of income.
An expansionary fiscal policy can take the form of an increase in government
spending and/or a lowering of tax rates. In both cases, the aggregate demand for
goods and services will increase, illustrated by a rightward shift of the AD curve.
This would result in an increase in total production (Y), but would occur at the
expense of an increase in the price level. See figure 20-3.
(c) To answer this question you have to provide a diagram similar to the one in figure
20-4 as well as the accompanying explanation. The essential elements of the
answer are a decrease in supply illustrated by a leftward (upward) shift of the
AS curve an increase in the price level, and a decrease in the level of production
(which implies an increase in unemployment).
(d) Start with a diagram illustrating a supply shock that results in an increase in both
unemployment and the price level (that is, the same diagram as for question (c)).
Both monetary policy and fiscal policy impact on the aggregate demand in the
economy (illustrated by the AD curve). That is why the use of monetary and
fiscal policies is called demand management. The increase in the price level can
be counteracted by contractionary monetary and fiscal policies (for example, an
increase in the interest rate, an increase in tax rates or a decrease in government
spending), but this would result in a further reduction in production, income and
employment. This can be illustrated by a leftward (downward) shift of the AD
curve. Alternatively, the decrease in production, income and employment can be
counteracted by applying expansionary monetary and fiscal policies (for example,
a decrease in the interest rate, an increase in government spending or a decrease
SOLUTIONS
138 Economics 1B
in tax rates), which would result in a further increase in the price level, however.
This can be illustrated by a rightward (upward) shift of the aggregate demand
curve. Demand management can thus be used to combat either the stagnation
element or the inflation element of stagflation, but not both at the same time.
ACTIVITY 8.2
(1) T
(2) F
SHORT QUESTIONS
(c) Start by drawing diagrams similar to those in figure 20-6(a) and figure 20-6(c).
An increase in the interest rate will lead to a decrease in investment. Spending
decreases, leading to a decrease in aggregate demand (the AD curve shifts to the
left), while prices, production and income will also decrease.
(d) i I A AD P and Y
(e) Though we are going to use diagrams similar to those in figure 20-6(a) and figure
20-6(c), we need to draw
(i) a steeper investment demand curve (reflecting a smaller interest elasticity
of investment demand)
(ii) a steeper AS curve
A decrease in the interest rate will result in a small increase in investment spending.
Spending and aggregate demand in the economy will increase by a small margin.
The shift to the right of the AD curve will thus be small and the effect on income
will be minimal.
ACTIVITY 8.3
(1) F
(2) F
(3) T
(4) F
ECS1601/1 139
Well Satis-
factory
Must
redo
Need
help
Concepts
I am able to
list the basic assumptions of the AD-
AS model
define
the AD curve
the AS curve
stagflation
a supply shock
demand management
contractionary fiscal/mon-
etary policy
expansionary fiscal/monetary
policy
the trade-off principle
the transmission mechanism
Explanations
I am able to
explain the implications of the
assumptions of the AD-AS model
distinguish between fiscal and mon-
etary policy
discuss the four lags associated with
fiscal and monetary policy
Diagrams
I am able to
aid of a diagram
the impact of key changes on the AD
curve table 20-1 and figure 20-3
the impact of key changes on the AS
curve table 20-2 and figures 20-4
and 20-5
CHECKLIST
140 Economics 1B
Well Satis-
factory
Must
redo
Need
help
contractionary fiscal/monetary policy
figure 20-3
expansionary fiscal/monetary policy
figure 20-3
the transmission mechanism figure
20-6
the policy dilemma in an open
economy figure 20-9
In part 3 we are going to investigate some of the
issues that face all macroeconomic policymakers:
combating inflation and unemployment and
improving economic growth.
BANK
HOUSEHOLDS
FOREIGN SECTOR
GOVERNMENT
FIRMS
FINANCIAL SECTOR
PART 3
Macroeconomic issues
Study unit 9:
Inflation
Study unit 10:
Unemployment and the Phillips curve
Study unit 11:
Economic growth
ECS1601/1/20112013 143
STUDY UNIT 9
Macroeconomic
issues
Outcome 2: Assess
the performance of the
economy
Inflation
Unemployment
Economic growth
Definition of inflation
Measurement of
inflation
Effects of inflation
Causes of inflation
144 Economics 1B
ECS1601/1 145
Inflation to fall below 6%
South Africas consumer price inflation is expected to fall below 6% from
February 2010, the Bureau of Economic Research (BER) said on Monday.
It was releasing its economic prospects report for the first quarter of 2010.
After showing some stickiness to ease meaningfully in the early part of
2009, SA consumer prices (CPI) moderated to below the upper limit of the
SA Reserve Banks (Sarb) three to six percent target range in October and
November 2009, BER economist Hugo Pienaar said.
In December 2009, the low base established at the end of 2008 when the
petrol price declined by R1.61c per litre, resulted in a move back above six
percent to 6.4% year-on-year, he said.
The reacceleration of price pressures is set to be temporary with a renewed
- and importantly sustained - fall below 6% expected from February 2010.
Pienaar said weak domestic consumer demand, the sustained rand strength,
lower wage increases and subdued global inflation were some of the key
factors that should keep South African inflation at bay. The uncertainty about
the extent of Eskoms electricity tariff hikes, due to be announced on 24
February, provide the most important upside inflation risk, he said.
The BERs inflation model incorporated electricity price increases of 30% for
2010 and 2011.
Taking all of the above into consideration, the BERs updated inflation forecast
sees CPI easing to an average of 5.3% in 2010 from 7.1% during 2009, before
accelerating to 5.9% in 2011.
Pienaar said producer prices, which were more sensitive to commodity price
trends, were projected to move in the opposite direction, averaging 5.3% in
2010 after emerging from deflation in December 2009 and remaining flat for
2009 as a whole.
Prices at the farm gate are expected to rise further to an average of 7.5%
during 2011, he said.
Pienaar said that for some time, the BER had been of the opinion that South
Africa would not see further interest rate cuts.
Recent data showing a return of (mild) job growth in fourth quarter of 2009
and positive manufacturing production figures had reinforced its interest rate
call.
The repo rate was projected to remain on hold through 2010 with mild (100
basis points in total) rate hikes forecast in the first half of 2011, Pienaar said.
ECONOMICS IN ACTION
Inflation
146 Economics 1B
Inflation has often been described as public enemy number one. But what is inflation?
How is it measured? Why is it a problem? What causes inflation and how can it be
combated? In this study unit, we take a closer look at inflation, focusing on the definition,
effects and different types of inflation.
define inflation
define the consumer price index (CPI)
use CPI data to calculate inflation rates
explain the reasons for calculating the core inflation rate
define the production price index (PPI)
discuss the differences between the CPI and PPI
define the implicit GDP deflator
compare the different measures of inflation
explain why policy makers regard inflation as a problem
explain the difference between demand-pull and cost-push inflation using diagrams
9.1 Definition of inflation
Study the definition of inflation in detail (noting the four aspects of the definition).
T F
(1) An increase in the price of vegetables is a good example of
inflation.
However, a scenario where the tariff hikes granted to Eskom are in line with
the Sarbs 25% assumption and 2009 fourth quarter GDP growth (especially
if it is driven by consumer demand weakness) surprises on the downside,
could result in a further 50 basis points rate cut in March, he said.
The National Energy Regulator of SAs tariff decision, as well as the fourth
quarter GDP numbers would be available at the time of the next Monetary
Policy Meeting of the Sarb on March 25 2010. Sapa. Published on the web by
Fin24.com on February 15, 2010.
CONTENTS
STUDY
ACTIVITY 9.1
ECS1601/1 147
T F
(2) Inflation involves a continuous and considerable increase in
the general level of prices.
(3) A once-off increase in prices cannot be classified as inflation
inflation is a continuous process of increasing prices.
(4) If prices increase at a constant rate, there is no inflation.
Short questions
(a) Define inflation. (3)
(b) List the main elements of the definition of inflation. (4)
9.2 Measurement of inflation
This section picks up from our discussion of the CPI in study unit 2. It begins with an
explanation of how a set of CPI data can be used to calculate the inflation rate. Note
the purpose and meaning of the core inflation rate. Ignore the paragraph on the CPIX
because Statistics South Africa discontinued the calculation of the CPIX during 2008.
The production price index (PPI), a measure of the cost of production, is introduced.
You must be able to differentiate between the implicit GDP deflator, the CPI and the
PPI. Note how the implicit GDP deflator is used to calculate the economic growth rate.
T F
(1) The CPI is an inflation rate.
(2) The rate of change in the CPI is one of the possible measures
of inflation.
(3) The CPI is an index of the cost of living.
(4) The calculation of a core inflation rate is an attempt to meas-
ure the underlying inflationary pressures in the economy.
(5) The basket used to calculate the core inflation rate excludes
fresh and frozen meat, fish, vegetables and fruit.
(6) The prices used to calculate the core inflation rate exclude
VAT.
ACTIVITY 9.2
STUDY
148 Economics 1B
T F
(7) The consumer price index measures the cost of living, while
the production price index measures the cost of production.
(8) The PPI excludes the prices of imported goods.
(9) The PPI excludes the prices of services only goods are
included in the PPI basket.
(10) The PPI includes the prices of capital goods.
(11) Consumers are generally more interested in the rate of
change in the implicit GDP deflator than in the rate of change
in the CPI.
Short questions
(a) Describe the CPI. (3)
(b) Distinguish between the CPI and core inflation. (3)
(c) Describe the PPI. (3)
(d) Differentiate between the CPI and the PPI. (4)
9.3 Effects of inflation
Study the distribution effects, economic effects, social and political effects of inflation (to
understand why combating inflation is such a serious matter to policy makers).
T F
(1) Inflation tends to benefit debtors at the expense of creditors.
(2) Inflation reduces the real value (or purchasing power) of
money.
(3) Inflation tends to benefit government at the expense of the
private sector.
(4) Inflation tends to redistribute income and wealth of elderly
people with relatively fixed nominal incomes to younger
people whose nominal incomes are keeping pace with
inflation.
STUDY
ACTIVITY 9.3
ECS1601/1 149
T F
(5) The fact that taxpayers are taxed on their nominal incomes,
irrespective of what happens to their real incomes, could
give rise to bracket creep (as in South Africa).
(6) High inflation tends to stimulate speculative activity at the
expense of productive activity.
(7) Real interest rate is the rate at which banks are prepared to
lend money, while the nominal interest rate is the rate that
can be earned on savings deposits at banks.
(8) Inflation can cause balance of payments problems, particularly
when a countrys inflation rate is consistently higher than the
inflation rates in the economies of its major trading partners
and international competitors.
Short questions
of this study unit.
(a) *Explain why policy makers regard inflation as a problem. (10)
(b) Distinguish three main types of costs of inflation, and give examples of each. (9)
9.4 Causes of inflation
The distinction between demand-pull inflation and cost-push inflation is one of the most
basic elements of the theory of inflation and must be studied in detail. Note that the fight
against demand-pull inflation results in a trade-off between inflation and unemployment.
T F
(1) Demand-pull inflation can be illustrated by an outward or
rightward shift of the aggregate demand (AD) curve.
(2) Demand-pull inflation can be caused by an increase in any or
a combination of C, I, G and X.
ACTIVITY 9.4
STUDY
Section 21.4 of the prescribed book only the subsection dealing with demand-pull and
cost-push inflation
150 Economics 1B
T F
(3) Demand-pull inflation raises the price level while it reduces
the level of production or income in the economy at the
same time.
(4) Demand-pull inflation can be combated by applying expan-
sionary monetary and fiscal policies.
(5) Reduced government spending and increased interest
rates are two of the measures that can be used to combat
demand-pull inflation.
(6) Cost-push inflation can be illustrated by an upward or left-
ward shift of the AS curve.
(7) Increased profit margins, decreased productivity and
increases in the prices of imported capital goods are all
potential causes of cost-push inflation.
(8) During cost-push inflation, increases in the price level are
accompanied by reductions in the level of production or
income. That is why it can also be called stagflation.
Short questions
Note: Solutions to the questions are provided at the end of this study unit.
(a) Use aggregate demand (AD) and aggregate supply (AS) curves to illustrate the
difference between cost-push inflation and demand-pull inflation and list possible
causes of each type of inflation. (10)
(b) Explain, with the aid of diagrams, what policy measures can be used to combat
cost-push inflation and demand-pull inflation respectively, and comment on the
possible side-effects of these measures. (10)
of inflation, do you think that the emphasis of monetary policy should be to fight inflation
rather than to try stimulating economic growth?
ECONOMICS IN ACTION
(LOOKING BACK)
ECS1601/1 151
Read section 21.4, The causes of inflation, in the prescribed book. In your opinion,
which one of these approaches comes closest to explaining inflation as experienced in
South Africa?
ACTIVITY 9.1
(1) F
(2) T
(3) T
(4) F
ACTIVITY 9.2
(1) F
(2) T
(3) T
(4) T
(5) T
(6) T
(7) T
(8) F
(9) T
(10) T
(11) F
ACTIVITY 9.3
(1) T
(2) T
(3) T
(4) T
(5) T
(6) T
(7) F
(8) T
SHORT QUESTIONS
(a) To answer this question you have to summarise the different costs of inflation.
Use the three categories (distribution effects, economic effects, and social and
political effects) to organise your answer and list some of the most important
costs in each category. Of course, you are also free to add other observations,
provided they make economic sense.
SOLUTIONS
FURTHER READING
152 Economics 1B
ACTIVITY 9.4
(1) T
(2) T
(3) F
(4) F
(5) T
(6) T
(7) T
(8) T
SHORT QUESTIONS
(a) You could have used diagrams similar to those in figure 21-1 and figure 21-2 to
answer this question. Demand-pull inflation is illustrated by a rightward (upward)
shift of the AD curve. Such inflation is accompanied by an increase in total
production and income (up to the full-employment level). Once full employment
has been achieved, any further increase in aggregate demand will raise only the
price level.
Note that inflation pertains to the economy as a whole and that we are therefore
dealing with the general price level and total production or income (not with the
prices or production of individual goods and services, as in microeconomics).
Cost-push inflation is illustrated by a leftward (upward) shift of the AS curve. This
results in an increase in the price level, accompanied by a decrease in production,
income or employment (that is, an increase in unemployment). That is why cost-
push inflation is sometimes also referred to as stagflation.
All that remains is to name the possible causes of each type of inflation.
(b) Start by drawing diagrams of demand-pull inflation (figure 21-1) and cost-push
inflation (figure 21-2). To combat demand-pull inflation, aggregate demand has to
be reduced. This can be achieved by applying contractionary monetary and fiscal
policies, illustrated by a leftward (downward) shift of the AD curve. However,
such policies have the undesirable side-effect of reducing total production,
income or employment in the economy. In other words, the result is greater
unemployment (except if the economy is still at the full-employment level after
the implementation of the policies) if the movement is from AD
4
to AD
3
(figure
21-1).
In the case of cost-push inflation, a contractionary monetary or fiscal policy will
succeed in lowering the general price level but it will increase unemployment even
further. In principle, the appropriate policy strategy would be to raise aggregate
supply (illustrated by a rightward or downward shift of the AS curve).
ECS1601/1 153
Well Satis-
factory
Must
redo
Need
help
Concepts
I am able to
define inflation
describe the CPI, PPI and the implicit
GDP deflator
differentiate between the CPI and
core inflation
define demand-pull inflation
define cost-push inflation
Explanations
I am able to
differentiate between nominal and
real values
explain why policy makers regard
inflation as a problem
distinguish between the main types
of costs of inflation
describe what measures can be used
to get rid of demand-pull inflation
explain what measures can be used
to get rid of cost-push inflation
Diagram
I am able to
aid of a diagram
the difference between demand-pull
and cost-push inflation
the impact of measures taken to get
rid of demand-pull and cost-push
inflation
Calculations
the inflation rate
CHECKLIST
154 Economics 1B
NOTES
ECS1601/1/20112013 155
STUDY UNIT 10
Macroeconomic
issues
Outcome 2: Assess
economy
Inflation
Unemployment
Economic growth
Measuring
unemployment
The cost of
unemployment
Types of unemployment
Policies to reduce
unemployment
Unemployment in the
Keynesian and AD-AS
models
The Phillips curve
156 Economics 1B
ECS1601/1 157
Jobs data reveals SA on the right road
Jobs created in the fourth quarter of 2009 underline South Africas recovery
from the recession and illustrate a return to growth.
Data released yesterday surprised on the upside with a net 89 000 jobs
created in the fourth quarter of last year.
However, since 870 000 jobs were lost last year, its far to early think about
celebrating, said Patrick Craven, the national spokesman for Cosatu.
Statistics SAs Quarterly Labour Force Survey for the fourth quarter shows
that 41 000 formal sector jobs and 116 000 informal sector jobs were created
between the third and fourth quarter last year. Over the same period, 38 000
and 31 000 jobs were lost in agriculture and private households, respectively.
After 959 000 jobs were shed in the first nine months of the year as the
recession wiped out work in manufacturing and trade among other sectors, it
was expected that the number of job losses would top 1 million for the year.
But with jobs created in finance, construction and trade among other sectors
in the last three months of 2009, total job losses for the year stood at 870 000.
With 12.97 million people now working, the unemployment rate fell to 24.3
percent from 24.5 percent. But including discouraged job seekers, who have
risen by 44.3 percent to 1.68 million people over the year, the expanded
unemployment rate remains unchanged at 31.4 percent.
Loane Sharp, a labour market analyst at staffing company Adcorp, questioned
the creation of 116 000 informal jobs, saying that Stats SA was forever changing
the benchmark as to what constitutes informal work.
I can only regard the informal jobs data with suspicion, he said. How
informal sector jobs could have been created, I dont know. If these are
excluded then there would have been no net gain in employment for the
fourth quarter.
Mike Schossler, the chief economist at Economists. co.za, said the creation
of more jobs in the informal sector than in the formal sector showed that
people were making their own plan. He said it was expected that the
creation of jobs would follow the economy with a two-quarter lag, but in this
case, the job market was following the economy with a one-quarter lag. This
is a good thing, Schossler added.
The jobs data added to the recent release of the Kagiso purchasing managers
index and car sales data, all of which point to an economy on the right road
to recovery, but one that has not hit the highway yet, he said.
Schossler said that the fourth quarter job data was not a brilliant number as
South Africa needed to create about 150 000 jobs or more a quarter to meet
the 2014 target of halving unemployment.
ECONOMICS IN ACTION
Unemployment and
the Phillips curve
158 Economics 1B
Most people see unemployment as the primary economic problem in South Africa. Do
you have any suggestions about how best to tackle the unemployment problem? In this
study unit, we will take a closer look at unemployment. We will consider the definition,
the costs, and different types of unemployment. Once we have done that, certain policy
options in the fight against unemployment will be highlighted.
define the rate of unemployment
identify the costs of unemployment
distinguish between the different types of unemployment
suggest policies to tackle the unemployment problem
illustrate and explain the Phillips curve
10.1 Unemployment
The rate of unemployment in South Africa forces us to take a very close look at this
section of the work. The rate of unemployment is obtained by expressing the number of
unemployed persons as a percentage of the labour force.
Measuring unemployment
Note the different ways in which unemployment is defined in this subsection.
T F
(1) It is easy to define and measure unemployment.
He cautioned that there were likely to be job losses in the coming quarters,
particularly in construction, as big infrastructure projects such as stadiums and
airports were completed. By Samantha Enslin-Payne. Published on the web
by Business Report on February 9, 2010.
CONTENTS
STUDY
ACTIVITY 10.1
ECS1601/1 159
T F
(2) The unemployed include those people who are not willing
to work.
(3) The rate of unemployment is obtained by expressing the
number of unemployed people as a percentage of the labour
force.
The cost of unemployment
You must be able to differentiate between the individual costs of unemployment and the
costs to society in general.
T F
(1) Unemployment involves significant costs both to individuals
who are unemployed and to society as a whole.
Short questions
(a) Describe the costs of unemployment to society in general. (4)
(b) Differentiate between the individual cost of unemployment and the cost to
society as a whole. (7)
Types of unemployment
The different types of unemployment must be studied in detail.
T F
(1) There will always be some frictional unemployment, and this
type of unemployment is not regarded as a serious problem.
(2) Cyclical unemployment occurs when there is a recession
resulting from a temporary lack of sufficient aggregate
demand in the economy.
ACTIVITY 10.2
ACTIVITY 10.3
160 Economics 1B
T F
(3) Cyclical unemployment is associated with recessions.
(4) Structural unemployment is a serious problem since it cannot
be remedied by simply increasing the aggregate demand for
goods and services.
(5) Workers who are replaced by labour-saving machines be-
come structurally (or technologically) unemployed.
(6) Structural unemployment is usually limited to specific indus-
tries, sectors or categories of workers.
Short question
(a) Distinguish between frictional, seasonal, cyclical and structural unemployment
and give an example of each type. (8)
Policies to reduce unemployment
Note that the unemployment problem must be tackled from both the supply and the
demand side.
Short question
(a) Discuss the policies that can be implemented to reduce unemployment. (10)
Unemployment in the Keynesian and AD-AS models
In this subsection, the Keynesian and AD-AS models are revisited. Note the positive
relationship between an increase in production and an increase in employment.
Short question
(a) Discuss the following statement: An increase in real production is a necessary but
not sufficient condition for reducing unemployment. (5)
ACTIVITY 10.4
ACTIVITY 10.5
ECS1601/1 161
10.2 Unemployment and inflation: The Phillips curve
As far as the Phillips curve is concerned, you only need to study the introduction and the
subsection on the trade-off principle. The existence of the Phillips curve is a controversial
topic, but the term has become so established in economics that you should know what
it is. In particular, you should be able to explain the implications of a Phillips curve for
policy makers as well as the causes and consequences of a rightward shift of the Phillips
curve.
T F
(1) The Phillips curve is an illustration of a possible trade-off
between inflation and unemployment.
(2) According to the Phillips curve, a lower inflation rate will
give rise to a lower unemployment rate.
(3) According to the Phillips curve, a lower inflation rate can be
bought at the expense of a higher unemployment rate.
Short question
(a) Illustrate and explain the Phillips curve, and discuss the policy implications of the
existence of such a curve. (6)
of unemployment, do you want to add to the suggestions you have made at the beginning
of this study unit?
ACTIVITY 10.6
STUDY
ECONOMICS IN ACTION
(LOOKING BACK)
162 Economics 1B
Remember that in this study guide, this section is not for examination purposes.
Have another look at section 22.2, Unemployment and inflation: the Phillips curve,
in the prescribed book. Do you think a trade-off between unemployment and inflation
exists in South Africa? If so, which is the lesser of the two evils? Why do you think so?
If no trade-off exists, how can the twin evils of unemployment and inflation be tackled?
ACTIVITY 10.1
(1) F
(2) F
(3) T
ACTIVITY 10.2
(1) T
ACTIVITY 10.3
(1) T
(2) T
(3) T
(4) T
(5) T
(6) T
ACTIVITY 10.6
(1) T
(2) F
(3) T
SOLUTIONS
FURTHER READING
ECS1601/1 163
Well Satis-
factory
Must
redo
Need
help
Concepts
I am able to
define the rate of unemployment
identify the costs of unemployment
Explanations
I am able to
distinguish between the different
types of unemployment
suggest policies to tackle the un-
employment problem
Diagrams
I am able to
aid of a diagram
the Phillips curve figures 22-2 and
22-3
Calculations
the unemployment rate
CHECKLIST
164 Economics 1B
NOTES
ECS1601/1/20112013 165
STUDY UNIT 11
Macroeconomic
issues
Outcome 2: Assess
economy
Inflation
Unemployment
Economic growth
Definition and
measurement of
economic growth
Sources of economic
growth
166 Economics 1B
ECS1601/1 167
Read the following excerpt:
How GDP beat the forecast
Johannesburg Powered by a surging manufacturing sector, gross domestic
product (GDP) jumped by 3.2% in the fourth quarter of last year, coming in
impressively above market expectations of 2.6% growth for the quarter and
confirming that SA has well and truly left the recession behind.
Statistics SA figures show that the manufacturing sector grew by a whopping
10.1% in the fourth quarter after growth of 7.6% in the third quarter.
These two quarters followed a period of deep recession in the industry, which
represents a substantial 15% of the economy. (All figures are quarter-on-
quarter, seasonally adjusted and annualised growth rates, unless otherwise
stated.)
Its not really all that surprising that GDP did so well, as the monthly Statistics
SA data on manufacturing as well as the Kagiso Purchasing Managers Index
- had both shown a strong rebound in the sector.
The main reason for the manufacturing rebound is the fact that inventories
had become completely depleted and new production had to happen.
Inventories had been completely run down. This factor wont play such a big
role this year, and we cant expect manufacturing to continue to grow at the
strong rates we have seen, Stanlib economist Kevin Lings said.
Nevertheless, Lings expected an economic growth rate of 3% for this year.
Stats SA said the manufacturing industry contributed 1.5 percentage points to
the 3.2% growth rate. The general government sector also shone, growing
by 7% in real terms and adding one percentage point to the growth rate.
The mining industry, the transport storage and communications sector, the
finance real estate and business services industry, and the personal services
industry each contributed 0.2 of a percentage point to the growth rate.
Standard Bank economist Danelee van Dyk said the real surprise in the figures
was that the finance industry, which is the biggest sector of the economy at
more than a fifth, recorded positive growth of 1.1%.
This shows that a broader upswing is taking place. Were not just talking
about isolated sectors here.
Van Dyks growth forecast for the year was 2.6%, but she acknowledged that
the economy could surprise on the upside.
She said the sharp rise in government spending in the fourth quarter could
show that government departments had sped up spending to make budgets,
as well as frontloading of spending on the 2010 Fifa World Cup.
ECONOMICS IN ACTION
Economic growth
168 Economics 1B
Economic growth is mentioned in each study unit of this study guide. Various policy
measures are discussed and suggestions made on what can be done to enhance economic
growth. What do you think can be done to improve economic growth?
In this study unit, we will examine the definition, measurement and causes of economic
growth.
define economic growth
explain how economic growth is measured
define the business cycle
identify sources of economic growth
11.1 Definition and measurement of economic growth
The first section deals with the definition and measurement of economic growth.
Economic growth is usually defined as the annual rate of increase in real gross domestic
product (real GDP). Allowance should preferably also be made for population changes
(that is, the figures should be expressed on a per capita basis), but this is not always
done. There is no perfect measure of economic growth even GDP is subject to a
number of shortcomings of which you should take note. As indicated in this section,
economic growth is not a smooth process, a feature of economic growth, which is
related to the business cycle.
However, there was one sore point in the figures - the retail sector, which
remained in negative territory.
The retail sector fell 0.7% in the fourth quarter after slipping 1.1% in the
third quarter. This shows that, despite five percentage points in interest rate
cuts between December 2008 and August last year, the consumer has yet to
come to the party.
Lings said the fragility of consumer demand was the main reason why economic
growth was likely to be constrained to about 3% for years to come.
Most private sector forecasts for economic growth for this year are at
around 2.6% of GDP, which will follow a decline of 1.8% last year. The 1.8%
decline in GDP for the year as a whole was a little better than the 2% decline
economists had expected.
Finance Minister Pravin Gordhan has been conservative with his growth
forecast for the year, with a prediction of 2.3% below the market consensus.
The Reserve Banks last forecast was a tepid 2%. By Greta Steyn. Published
on the web by Fin24.com on February 23, 2010.
CONTENTS
STUDY
ECS1601/1 169
The business cycle is the pattern of upswing (expansion) and downswing (contraction)
that can be identified in economic activity over a number of years. One complete business
cycle has four elements: a trough, an upswing or expansion (also called a boom), a peak,
and a downswing or contraction (also called a recession). The different elements of the
business cycle are illustrated in the following diagram:
The figure shows a complete business cycle from one trough (point A) to the next
trough (point C). The cycle describes a pattern of fluctuation around the long-term
trend. After the trough, there is an upswing indicated by AB. The peak is reached at
point B, followed by a downswing from B to C.
T F
(1) GDP for 2004 expressed at 2000 prices is an example of
nominal GDP.
(2) GDP for 2004 expressed at 2004 prices is an example of
nominal GDP.
(3) GNI for 2004 expressed at 1995 prices is an example of real
GNI.
(4) When measuring economic growth, changes in prices and in
the population should be taken into account.
(5) One of the problems associated with GDP as a measure of
economic activity is that not all goods and services are sold
in markets, which makes it difficult to value them in mon-
etary terms.
(6) GDP is an accurate indicator of economic welfare.
ACTIVITY 11.1
Economic
activity
Long-term
trend
Time
0
A
C
B
D
170 Economics 1B
T F
(7) GDP measures the impact of economic growth on pollution
and environmental destruction.
(8) Once GDP has been estimated for a certain period, the
figure obtained is never adjusted.
(9) Economic growth is a smooth process.
(10) The expansion phase of the business cycle ends at the peak
of the cycle.
(11) The expansion phases of the business cycle (upswings) always
last exactly as long as the recession phases (downswings).
Short questions
(a) Define economic growth. (2)
(b) Explain why it is important to use real GDP (or GNI) per capita when measuring
economic growth. (2)
(c) List four problems associated with GDP as a measure of total production in the
economy. (4)
(d) Define the business cycle, and list the four elements of a complete cycle. (6)
11.2 Sources of economic growth
This section deals with the sources of economic growth. You should be able to identify
the various supply factors and demand factors discussed in this section. Note that the
supply factors all relate to the four factors of production, while the demand factors
relate to the components of aggregate spending (or aggregate demand) in the economy.
T F
(1) Sustained economic growth requires a sustained expansion
of both aggregate supply and aggregate demand.
ACTIVITY 11.2
STUDY
ECS1601/1 171
T F
(2) An increase in the quantity and/or quality of the various fac-
tors of production is a prerequisite for sustained economic
growth.
(3) An increase in the quantity and/or quality of the factors of
production is a necessary condition for economic growth,
but is not sufficient to ensure economic growth.
(4) Sustained economic growth requires an expansion in aggre-
gate demand for goods and services.
(5) Inward industrialisation is a strategy for economic growth,
which focuses on domestic demand (that is, the demand for
housing and electricity).
(6) Import substitution means that goods that were previously
produced locally are now imported.
Short question
(a) What are the main sources of economic growth viewed from
(i) the supply side?
(ii) the demand side? (7)
of economic growth, would you like to add anything to the suggestions you made at the
beginning of this study unit?
Read section 23.5, Economic development, in the prescribed book. Up to now, the
focus of our discussions has been on economic growth. Having read this section of the
prescribed book, do you not think the emphasis in South Africa should rather be on
economic development? Or does economic growth imply economic development?
FURTHER READING
Sections 23.4 and 23.5 of the prescribed book are not prescribed for this
module.
ECONOMICS IN ACTION
(LOOKING BACK)
172 Economics 1B
ACTIVITY 11.1
(1) F
(2) T
(3) T
(4) T
(5) T
(6) F
(7) F
(8) F
(9) F
(10) T
(11) F
ACTIVITY 11.2
(1) T
(2) T
(3) T
(4) T
(5) T
(6) F
SOLUTIONS
ECS1601/1 173
Well Satis-
factory
Must
redo
Need
help
Concepts
I am able to
define economic growth
list the problems associated with the
use of GDP
define the business cycle
name the elements of a business
cycle
from the supply side
from the demand side
Explanations
I am able to
explain how economic growth is
measured
explain the importance of using real
GDP per capita when measuring
economic growth
Diagrams
I am able to
aid of a diagram
the business cycle see the figure in
the study guide
CHECKLIST
174 Economics 1B
NOTES
HOUSEHOLDS
FOREIGN SECTOR
GOVERNMENT
FIRMS
FINANCIAL SECTOR
APPENDICES
Self-evaluation exercise
Solutions to the self-evaluation exercise
Glossary
BANK
QUESTION 1
Explain the difference between a stock variable and a flow variable. Give one example of
each. (4)
QUESTION 2
Domestic demand is one of the main sources of economic growth viewed from the
demand side. Name the two other demand factors. (2)
QUESTION 3
(i) Show on the following diagram how the imposition of an excise tax will affect the
equilibrium price and quantity of cigarettes. (3)
(ii) Three groups share the burden of the excise tax: the consumers of cigarettes,
the owners of the cigarette companies, and the employees of the cigarette
companies. What determines the distribution of the burden of the excise tax
between the three groups? (1)
SELF-EVALUATION EXERCISES
ECS1601/1/20112013 177
P
0
Q
0
Q
D
S
E
0
P
0
178 Economics 1B
(iii) Explain how the employees of the cigarette companies share the burden of the
excise tax. (2)
QUESTION 4
(i) Illustrate on the following diagram what will happen to the exchange rate between
the rand and the US dollar if South African exports to the United States increase.
Remember to label your diagram. (4)
(ii) Has the price of the US dollar increased or decreased in rand terms because of
the increase in exports? (1)
(iii) Did the increase in exports lead to an appreciation or a depreciation of the rand
against the dollar? (1)
0
ECS1601/1 179
QUESTION 5
Given a Keynesian model of an economy without a government and a foreign sector:
(i) Illustrate on the following diagram the impact of an increase in investment spend-
ing on the equilibrium level of income. (2)
(ii) Explain the impact of the increase in investment spending on the equilibrium level
of income. Comment on the size of the change in income relative to the size of
the change in investment spending. (4)
A
A
A = Y
Y
A
0
Y
0
180 Economics 1B
QUESTION 6
Given the following information:
C = 200 +
2
/
3
Y
I = 300
Calculate (showing all your work) the following:
(i) autonomous spending (1)
(ii) the multiplier (2)
(iii) the equilibrium level of income (2)
(iv) total spending, if the economy is at equilibrium. (2)
QUESTION 7
You are the chief economic advisor for the government of Mahala. Mahala is experiencing
demand-pull inflation despite the stated objective of the government to achieve price
stability.
Explain, with the aid of the following diagram, what steps the government of Mahala
should take to achieve this objective.
ECS1601/1 181
Clearly indicate on the diagram any changes to aggregate demand or aggregate
supply, prices and production, which might result from actions taken by the
Mahala government.
The diagram will count three (3) marks.
In your explanation, you must include the following:
- the instruments of fiscal policy,
- how these instruments are applied
- what effects the instruments will have
Your explanation will count six (6) marks.
0
P
Y
AD
AS
P
1
Y
1
182 Economics 1B
QUESTION 1
A stock has no time dimension and can only be measured at a specific moment (plus
an example). (2)
A flow has a time dimension and can only be measured over a period (plus an
example). (2)
QUESTION 2
The other two demand factors are as follows:
exports (1)
import substitution (1)
QUESTION 3
(i)
[1 mark for the leftward shift of S
1 mark for the increase in price
1 mark for the decrease in quantity] (3)
(ii) The relative price elasticities of the demand and supply curves (1)
(iii) Any two of the following:
production or equilibrium quantity decreases, therefore
job losses occur, or
workers have to accept wage cuts (2)
SOLUTIONS TO SELF-EVALUATION EXERCISES
0
P
E
2
E
1
S
1
S
D
Q
Q
1
Q
2
p
2
p
1
ECS1601/1 183
QUESTION 4
(i)
[2 marks for the original diagram (1 if correctly labelled and 1 for equilibrium
shown)
1 mark for the rightward shift of S
1 mark for the decrease in price of dollar or new equilibrium] (4)
(ii) The price of the US dollar decreased. (1)
(iii) The increase in exports led to an appreciation of the rand against the dollar. (1)
QUESTION 5
(i)
[1 mark for the upward shift of the A function
1 mark for the increase in income (Y) or new equilibrium] (2)
(ii) The increase in investment leads to an increase in total expenditure.
The increase in total expenditure leads to an increase in income (higher
equilibrium).
The increase in income is greater than the increase in expenditure because of the
multiplier. (4)
R/$
R
1
0
E
2
S
D
Q
$
S
1
E
1
R
2
A A = Y
E
E
1
A
A
1
A
1
A
0
Y
0
Y
1
Y
184 Economics 1B
QUESTION 6
(i) Autonomous spending = C + I
= 200 + 300
= 500
(ii)
1 c
1
1
3
2
1
3
1
1
3 =
-
=
-
= = a
(iii) Y
0
= A
= 3 500
= 1 500
(iv) At equilibrium, total spending equals total income, the equilibrium level of income
is 1 500 (see iii above), and therefore, total spending is also 1 500.
[questions ii, iii and iv:
2 marks for correct answer
1 mark for correctly substituted, but incorrect answer]
QUESTION 7
[1 mark for leftward shift of AD
1 mark for decrease in price level
1 mark for decrease in income (Y)] (3)
Discussion (of any 6 of the following):
Government must implement restrictive (or contractionary) fiscal policy measures.
It must decrease spending (G) and increase taxes (t).
This will lead to a decrease in aggregate demand.
The price level will decrease and
the income (or production) will decrease.
Lower prices are traded off against higher unemployment. (6)
P
Y
0
P
1
AS
AD
AD
1
P
2
Y
2
Y
1
This glossary contains definitions of economics terms and concepts you might come
across in this module. The definitions appear in six languages, namely English, Afrikaans,
isiZulu, isiXhosa, Sepedi and Setswana.
The aim of this glossary is to make the learning material more accessible to learners who
are not first-language English speakers. The intention is not to provide an authoritative
translation of English economics terminology in the other languages, but simply to give a
basic description of the key ideas in the other languages to promote your understanding
of the concepts.
We chose the six languages mentioned above because these languages are the languages
spoken by the majority of the current learners in the module.
Please remember that even though the glossary provides some economics terminology
in four languages other than English and Afrikaans, in terms of Unisa policy, you are
required to answer assignment and examination questions in either English or Afrikaans.
Note that the list is arranged alphabetically according to the English terms. After every
English definition, a translated definition appears in each of the other languages, in the
following sequence:
1. Afrikaans
2. isiZulu
3. isiXhosa
4. Sepedi
5. Setswana
GLOSSARY
ECS1601/1/20112013 185
186 Economics 1B
Ability to pay Ability to pay is a principle of an effective tax system. The principle states
that the tax system should take the ability of taxpayers to pay tax into account. In other
words, people who earn little money will not pay much tax, and people who earn a
greater amount of money will pay more tax.
Vermo om te betaal Vermo om te betaal is n beginsel van n doeltreffende
belastingstelsel. Volgens hierdie beginsel moet die belastingstelsel die vermo van belas-
tingbetalers om belasting te betaal in ag neem. Met ander woorde, mense wat baie min
verdien sal nie baie belasting betaal nie, en mense wat meer verdien sal meer belasting
betaal.
Isimo sokukwazi ukukhokha Ukuba sesimeni sokukwazi ukukhokha kuwumgomo
wohlelo lwezentela. Lo mgomo ubalula ukuthi uhlelo lwezentela kumele libhekele
isimo sabakhokhi ntela sokukwazi ukukhokha intela. Ngamanye amazwi, abantu abahola
kancane abazukhokha intela enkulu, kuthi abantu abahola ngokuthe xaxa ibe nkudlwana
eyabo intela.
Amandla (isakhono) okuhlawula Amandla (isakhono) okuhlawula ngumgaqo
wenkqubo efanelekileyo yerhafu. Umgaqo uchaza ukuba, inkqubo yerhafu kufuneka
ithathele ingqalelo amandla (isakhono) omrhafi okuhlawula. Ngamanye amazwi, abantu
abanemivuzo ephantsi abayi kuhlawula irhafu eninzi, ukuze abantu abahlawulwa kakhulu
ibe ngabona bahlawula irhafu eninzi.
Bokgoni bja go lefa Bokgoni bja go lefa ke ntlha ya lenaneo la motshelo leo le omago
gabotse. Ntlha ye e hlalosa gore lenaneo la mothelo le swanete go ela hloko bokgoni
bja balefi ba mothelo bja go lefa mothelo. Ka mantu a mangwe, batho ba ba hwetago
thelete ya tlase ba ka se lefe mothelo wa godimo, mola batho ba ba hwetago thelete
ya godingwana ba tla lefa mothelo wa godingwana.
Kgono ya go duela Kgono ya go duela ke theo ya thulaganyo ya go kgontsha tuelo ya
lekgetho. Theo eno e tlhalosa gore tsamaiso ya lekgetho e tshwanetse ya tlhomamisa
kgono ya go duela ya ba duela lekgetho. Ka mantswe a mangwe, batho ba ba amogelang
madi a a kwa tlase ba ka se duele lekgetho le le ntsi, mme batho ba ba amogelang madi
a mantsi ba tla duela lekgetho le le ntsi.
Accommodation policy Accommodation policy is an instrument of monetary policy. It
means the adjustment of the repo rate and the quantity of money lent by the SARB to
other banks. These adjustments serve to control the amount of money that is available
to the economy.
Akkommodasiebeleid Akkommodasiebeleid is n monetrebeleid-instrument. Dit
beteken die aanpassing van die repokoers en van die hoeveelheid geld wat die SARB aan
ander banke uitleen. Di aanpassings beheer die hoeveelheid geld wat in die ekonomie
beskikbaar is.
Umgomo wokubhekela isimo Umgomo wokubhekela isimo uyingxenye yemigomo
yokuqapha ezezimali. Usho uguquko enzalweni ekhokhwa ngamabhangi lapho eboleka
imali kuSouth African Reserve Bank. Lezi nguquko yizona okulawulwa ngazo inani lemali
ekhona emnothweni wezwe.
ECS1601/1 187
Umgaqo-nkqubo wolungiselelo Sisixhobo somgaqo-nkqubo wemali. Uthetha
ulungiselelo lwesantya nomyinge wemali ekubolekiswe ngayo yiBhanki enguVimba
yoMzantsi-Afrika kwezinye iibhanki. Olu lungiselelo lunceda ekulawuleni umyinge
wemali ekhoyo kuqoqosho.
Leanotshepedio la go akareta Leanotshepedio la go akareta ke sediriwa sa
tshepedio ya dithelete. Le ra peakanyo ya kelo ya leokoto la dikadimo teo Panka
ya Resefe e di fago dipanka te dingwe le bonti bja thelete yeo Panka ya Resefe e e
adimago dipanka te dingwe. Dipeakanyo te di thua go laola kelo ya thelete yeo e
hwetagalago ekonoming.
Maikemisetso a kelokadimo Maikemisetso a kelokadimo ke sedirisiwa sa maikemisetso
a madi. Se se kaya tekanyetso ya kelo ya kadimo le bogolo ba madi a Banka ya Resefe ya
Aforika Borwa e a adimang dibanka tse dingwe. Tekanyetso eno e thusa go laola seelo sa
madi a a leng teng mo ikonoming.
Aggregate demand Aggregate demand is the total demand for all products and services
in an economy.
Makrovraag Makrovraag is die totale vraag na alle produkte en dienste in n ekonomie.
Ukudingeka kwempahla ngokuphelele Ukudingeka kwempahla ngokuphelele kusho
ukudingeka kwayo yonke imikhiqizo nemisebenzi ekhona emnothweni.
Iimfuno ezipheleleyo Iimfuno ezipheleleyo zibhekiselele kuyo yonke imveliso
neenkonzo kwezoqoqosho.
Nyakegomoka ya kabo Nyakego ya kabo ke palomoka ya nyakego ya ditweletwa ka
moka le ditirelo ekonoming.
Palogotlhe ya tlhokego Palogotlhe ya tlhokego ke palo yotlhe ya dikumo tsotlhe tse di
tlhokegang le ditirelo tsotlhe tsa ikonomi.
Aggregate foreign expenditure Aggregate foreign expenditure is the difference
between the income that a country receives from exports (usually abbreviated as X),
and the countrys expenditure on imports (usually abbreviated as Z). It is therefore
exports minus imports (X Z).
Totale buitelandse besteding Totale buitelandse besteding is die verskil tussen die
inkomste wat die land uit uitvoere ontvang (gewoonlik afgekort as X), en die land se
besteding aan invoere (gewoonlik afgekort as Z). Dit is dus uitvoere min invoere (X Z).
Imali ephelele echithwe ngaphandle Imali ephelele echithwe ngaphandle isho
umehluko phakathi kwemali izwe eliyithola ngokuthumela impahla emazweni
angaphandle (nevama ukunqanyulelwa ngokuthi kusetshenziswe u-X) kanye nemali
izwe eliyichithe ngempahla eliyithenge emazweni angaphandle (nevama ukunqanyulelwa
ngokuthi kusetshenziswe u-Z). Lokhu kusho ukuthi sisusa inani lempahla ethengiwe
enanini lempahla ethengiswe emazweni angaphandle (X Z).
188 Economics 1B
Inkcitho yangaphandle epheleleyo Inkcitho yangaphandle epheleleyo ngumahluko
phakathi kwengeniso efunyanwa lilizwe kwimpahla ethunyelwa ngaphandle (edla
ngokuboniswa ngo-X), nenkcitho yelizwe ngempahla engenayo (esuka ngaphandle)
(eboniswa ngo-Z). Ngoko ke uthabatha inkcitho kwingeniso (X Z).
Kabomoka ya ditshenyagalelo ta ntle Kabo ya ditshenyagalelo ta ntle ke phapano
magareng a ditseno te naga e di amogelago go twa go diyantle (ganti e kgutsofatwa
ka X), le ditshenyagalelo ta naga ta ditwantle (ganti e kgutsofatwa ka Z). Ka lebaka
leo ke ditwantle te di nthwago go diyantle (X Z).
Palogotlhe ya tshenyegelo ya bodithaba Palogotlhe ya tshenyegelo ya bodithaba ke
pharologano magareng ga letseno le naga e le bonang go tswa mo diromelwantleng (ka
tlwaelo e khutswafatswa ka X) le tshenyegelo ya naga mo diromelwateng (ka tlwaelo e
khutswafatswa ka Z). Ka jalo o tla ntsha palo ya diromelwantle mo go ya diromelwateng
(X Z).
Allocation role The government plays an allocation role in the economy: it attempts to
achieve an efficient allocation of resources, e.g. by producing public goods and dealing
with externalities.
Allokasierol Die regering speel n allokasierol in die ekonomie: hy probeer om n
doeltreffende allokasie van hulpbronne te bewerkstellig, deur bv. openbare goedere te
produseer en eksternaliteite te hanteer.
Indima yokwaba Uhulumeni uzama ukudlala indima yokwaba emnothweni: uhulumeni
uzama ukwacaza ngendlela efanele izinsizakalo, isibonelo ngokuthi akhiqize impahla
yomphakathi aphinde abhekane nezimo zangaphandle.
Indima yolwabiwo Urhulumente udlala indima yolwabiwo kuqoqosho. Uzama
ukufumana eyona ndlela ifanelekileyo yokwabiwa kwemveliso, umzekelo ngokuvelisa
impahla nangobudlelwane bakhe namazwe angaphandle.
Tema ya go aba Mmuo o kgatha tema ya go aba ekonoming: o leka go fihlelela kabo
ya mohola ya mehlodi, mohlala, ka go tweleta diphahlo ta bohle le go omana le te
di twago ntle.
Seabe sa kabo Mmuso o tsweletsa seabe sa kabo mo ikonoming: o leka go ka fitlhelela
kabo e e lolameng ya metswedi, sekao ke go tlhagisa dithoto tsa sethaba le go dira ka
tsa kwa ntle.
Autonomous consumption This is consumption that takes place whether people
receive an income or not, such as the consumption of basic necessities like water, food
and clothes. It is thus consumption that is independent of income.
Outonome verbruik Dit is verbruik wat plaasvind of mense n inkomste ontvang of nie,
byvoorbeeld die verbruik van basiese noodsaaklikhede soos water, kos en klere. Dit is
dus verbruik wat onafhanklik is van inkomste.
ECS1601/1 189
Izinto okuphoqelekile ukuba umuntu azisebenzise Lezi yizinto umuntu adinga
ukuthi azisebenzise kungakhathalekile ukuthi uyasebenza yini noma akasebenzi, kulokhu
singabala izinto ezibalulekile ezifana namanzi, ukudla nokokugqoka. Lokhu yizinto
umuntu okufuneka ezisebenzisile kungakhathalekile ukuthi ikhona yini imali ayitholayo.
Ukusebenzisa gabalala Ukusetyenziswa kwento elulutho ebantwini kungajongwanga
imeko yomntu ngokwasemalini, njengokusetyenziswa kwezinto ezifana namanzi, ukutya,
impahla yokunxiba. Ngamanye amazwi, kukusetyenziswa kwento engaxhomekekanga
kwingeniso (umyinge wemali).
Tirio ye e ikemego Ye ke tirio ye e bago gona go sa etwe gore batho ba hweta
ditseno goba aowa, go swana le tirio ya dihlokwa ta motheo bjalo ka meetse, dijo le
diaparo. Ka lebaka leo ke tirio yeo e sa ithekgago ka ditseno.
Tiriso ya ka metlha Seno ke tiriso e e diragalang go sa kgathalesege gore batho ba na
le letseno kgotsa nya, sekao ke tlhokego ya tiriso ya metsi, dijo le diaparo. Ka jalo ke
ditlhokego tse di sa amaneng le letseno.
Autonomous imports Autonomous imports are products that countries have to
import, no matter what their circumstances may be. These imports are usually products
that are essential for survival and that the country cannot produce itself, or of which it
has a shortage, for example food and petrol.
Outonome invoer Outonome invoer is produkte wat n land moet invoer, ongeag di
land se omstandighede. Hierdie invoer is gewoonlik produkte wat noodsaaklik is vir
oorlewing en wat die land nie self kan produseer nie, of waaraan die land n tekort het,
byvoorbeeld kos en petrol.
Imikhiqizo izwe okuphoqelekile ukuba liyithole kwamanye amazwe Lena
yimikhiqizo izwe okumele nakanjani liyithole kwamanye amazwe kungakhathalekile
ukuthi isimo salo sinjani. Ngokuvamile lena kuba yimikhiqizo ebalulekile kakhulu
empilweni izwe elingenako ukuzikhiqizela ngokwalo noma kwesinye isikhathi uthole
ukuthi liyayentula, isibonelo ukudla kanye nopetroli.
Impahla yesiqhelo yamanye amazwe Impahla yesiqhelo efunyanwa kwamanye
amazwe efana nemveliso engenayo kumazwe, nokuba imeko yawo injani na. Lempahla
idla ngokuba yimveliso ebalulekileyo kwimpilo yabantu belo lizwe kwaye lingenakho
ilizwe elo ukuyivelisa lona ngokwalo, okanye imveliso ethi ikho elizweni ibe ingonelanga
njengokutya nepetroli.
Ditwantle te di ikemego Ditwantle te di ikemego ke ditweletwa te dinaga di
gapeletegago go di hweta go twa ntle, go sa etwe gore maemo a dinaga teo ke afe.
Ganti ditwantle te ke ditweletwa te di nyakegago gore batho ba phele le gona e
le teo naga e ka se kgonego go itweleleta tona, goba e le teo naga e di hlaelelago,
mehlala ke dijo le petrole.
Diromelwateng tsa ka metlha Diromelwateng tsa ka metlha ke dikumo tse naga e
tshwanetseng ya di reka go tswa ntle go sa kgathalesege gore maemo a eme jang. Ka gale
diromelwateng tse ke dikumo tse di tlhokegang go phedisa baagi mme naga e sa kgone
go di itlhagisetsa kgotsa di tlhaela. Sekao ke dijo le peterolo.
190 Economics 1B
Average tax rate The average tax rate is the percentage of income that is paid as tax.
It is calculated by dividing the tax a person pays by his or her income, and multiplying
by 100.
Gemiddelde belastingkoers Die gemiddelde belastingkoers is die persentasie van
inkomste wat aan belasting betaal word. Dit word bereken deur die belasting wat n
persoon betaal, deur sy of haar inkomste te deel, en dan die antwoord met 100 te
vermenigvuldig.
Izinga lentela eliphakathi Leli yiphesenti lomholo elikhokhwa njengentela. Ibalwa
ngokuhlukanisa inani lentela ekhokhwa wumuntu ngemali ayiholayo bese lokho
ukuphindaphinda ngo-100.
Umyinge werhafu ophakathi Umyinge ophakathi werhafu linani elithile ekhulwini
lomvuzo elihlawulwa njengerhafu. Libalwa ngokwahlulwa komvuzo womntu ngerhafu
ehlawulwa ngumntu lowo, uze uliphindaphinde nge-100.
Kabo ya kelo ya mothelo Kabo ya kelo ya mothelo ke phesente ya ditseno ye e
lefago bjalo ka mothelo. Yona e balwa ka go arola mothelo wo motho a o lefago ka
ditseno ta gagwe, le go atiwa ka 100.
Palogare ya kelo ya lekgetho Palogare ya kelo ya lekgetho ke phesente ya letseno le
le duelwang jaaka lekgetho. Le balelwa ka go arola lekgetho le motho a le duelang ka
letseno la gagwe mme o atise palo eo ka lekgolo.
Balance of payments The balance of payments is a systematic account of all transactions
between the economic subjects of one country with the rest of the world during a
specific period.
Betalingsbalans Die betalingsbalans is n stelselmatige rekening van alle transaksies
tussen die ekonomiese onderdane van een land en die res van die wreld tydens n
spesifieke tydperk.
Isilinganiso senkokhelo Lolu wuhlelo lokubalwa kwezentengiso kwabantu bezwe
elithile abasebhizinisini beqhathaniswa nomhlaba wonke ngesikhathi esithile esinqunyiwe.
Ulungelelwaniso lwentlawulo Ulungelelwaniso lwentlawulo kukubalisiswa
nokulungelelaniswa kwayo yonke imali phakathi koqoqosho lwelizwe kunye nehlabathi
liphela ngethuba elithile.
Tekatekano ya ditefelo Tekatekano ya ditefelo ke pego ye e beakantwego ya
dipapatiano ka moka magareng a bakgathatema ba ekonomi ba naga e tee le lefase ka
moka lebakeng le le itego.
Pharologano ya kananyo Pharologano ya kananyo ke thulaganyo ya tshupatlotlo ya
tirisano yotlhe magareng ga badirisi ba ikonomi ba naga e e rileng le ba dinaga tse tsotlhe
tsa lefatshe mo pakeng e e rileng.
Bond price The price of a bond that is bought or sold on the capital market. A higher
bond price brings about a lower market yield rate, while a lower bond price will lead to
an increase in the market yield rate.
ECS1601/1 191
Obligasieprys Dit is die prys van n obligasie wat op die kapitaalmark gekoop of ver-
koop word. n Hor obligasieprys veroorsaak n laer markopbrengskoers, en n laer
obligasieprys n hor markopbrengskoers.
Intengo yebhondi Leli yinani ibhondi ethengwa kumbe ithengiswe ngayo ezimakethe
zemali. Intengo ephezulu yebhondi iletha inzuzo encane ezimakethe kanti intengo
ephansi yebhondi yenza kube nokwenyuka kwenzuzo yezimakethe.
Ixabiso lebhondi Ixabiso lebhondi elithengwa okanye elithengiswa kwimarike yemali.
Ixabiso eliphakamileyo lebhondi likhokelela kumyinge osezantsi wemarike, ngelixa
ixabiso elisezantsi lebhondi likhokelela kumyinge ophezulu wemarike.
Theko ya bonto Theko ya bonto ye e rekwago goba e rekiwago mmarakeng wa
kapetlele. Theko ya godingwana ya bonto e tlia kelo ya tlasana ya tweleto ya mmaraka,
mola kelo ya tlasana ya bonto e tla tlia koketego kelong ya tweleto ya mmaraka.
Tlhotlhwa ya tlamo Tlhotlhwa ya tlamo e e rekiwang kgotsa e e rekisiwang mo
mmarakeng wa matlotlo. Tlhotlhwa e e kwa godimo ya tlamo e baka kelo e e kwa tlase
ya dipoelo mo mmarakeng fa tlhotlhwa e e kwa tlase ya tlamo yona e baka koketsego ya
dipoelo mo mmarakeng.
Budget deficit A government has a budget deficit if its expenditure is greater than its
revenue.
Begrotingstekort n Regering het n begrotingstekort wanneer sy uitgawes meer is as
sy inkomste.
Ukushoda esabelweni sezimali Uhulumeni usuke eshodelwa esabelweni sezimali uma
imali azoyisebenzisa ingaphezulu kwemali ayitholile kumbe engenile.
Ingeniso engaphantsi kwinkcitho Urhulumente uba nengeniso engaphantsi
kunenkcitho xa sukuba inkcitho yakhe ingaphezulu kunemali yakhe eyingeniso.
Tshenyagalelo ya ditekanyeto Mmuo o ba le tshenyagalelo ya ditekanyeto ge
ditshenyagalelo ta wona di feta ditseno.
Tekanyetsokabo e e tlhaelang Mmuso o nna le tekanyetsokabo e e tlhaelang fa e le
gore ditshenyegelo tsa ona di dintsi go feta letseno.
Business cycle The business cycle is the recurring (repeated) increases and decreases
in the level of economic activity over time. In other words, it is a cycle in which a period
of low economic growth (a downswing or recession) is followed by a period of greater
growth (an upswing or recovery), which then is followed by a downswing again, and so
on.
Konjunktuursiklus Die konjunktuursiklus is die herhalende toename en afname in die
vlak van ekonomiese aktiwiteit oor tyd heen. Met ander woorde, dit is n siklus waarin
n tydperk van stadige ekonomiese groei (n afswaai of resessie) gevolg word deur n
periode van sterker groei (n opswaai of herstel), wat dan weer deur n afswaai gevolg
word, en so aan.
192 Economics 1B
Ukwehla kumbe ukwenyuka kwebhizinisi Lokhu kusho ukwehla kumbe ukukhula
okuziphindaphinda kona emnothweni ngokuhamba kwesikhathi. Ngamanye amazwi,
uguquguquko lolu lokukhula kancane komnotho lulandelwe yisikhathi sokukhula kakhulu
komnotho kuphinde kujike futhi kube nokukhula okuncane, njalo, njalo.
Umjikelo weshishini (wamahla-ndinyuka eshishini) Umjikelo weshishini kukunyuka
nokuhla okungapheliyo komgangatho woqoqosho ngethuba elithile. Ngamanye
amazwi, lithuba apho ukwehla kwemveliso yoqoqosho kulandelwa lithuba lokunyuka
(lokuphucuka) kwemveliso, ethi kwakhona ilandelwe kukuhla kwayo, njalo-njalo.
Leboo la kgwebo Leboo la kgwebo ke ditlhatloo le diphokoto te di ipoeletago ta
maemo a ditiro ta ekonomi lebakeng le le itego. Ka mantu a mangwe, ke sediko seo
go sona lebaka la kgolo ya tlase ya ekonomi (theogelotlase) le latelwago ke lebaka la
kgolo e kgolwane ya ekonomi (kgolelogodimo, goba tsooloo), leo le latelwago gape ke
lebaka la theogelotlase, bjalo bjalo.
Tshekeletsa ya kgwebo Tshekeletsa ya kgwebo ke ipoeletso ya dikoketsego le
diphokotsego mo maemong a ditiro tsa ikonomi mo tsamaong ya nako. Ka mantswe a
mangwe, re ka re ke tshekeletsa e mo go yona go nnang le sebaka sa go ya tlase ga kgolo
ya ikonomi (kwelotlase kgotsa poelomorago ya ikonomi) mme go latele sebaka sa kgolo
e e kwa godimo (go fetogela godimo kgotsa go itharabologelwa ga ikonomi) mme go
latele gape kwelotlase, jalo le jalo.
Capital deepening Capital deepening occurs when the amount of capital per worker
in an economy is increased, i.e. when the growth in the stock of capital is greater than
the growth in the number of workers. Capital deepening, in other words, occurs when
production becomes more capital-intensive (as opposed to labour-intensive). Compare
this with capital widening.
Kapitaalverdieping Kapitaalverdieping kom voor wanneer die hoeveelheid kapitaal per
werker in n ekonomie vermeerder word, d.w.s. wanneer die groei in die kapitaalvoorraad
groter is as die groei in die getal werkers. Kapitaalverdieping kom met ander woorde
voor as produksie meer kapitaalintensief (in teenstelling met arbeidsintensief) word.
Vergelyk dit met kapitaalverbreding.
Ukwandiswa kwemali ezosetshenziswa ebhizinisini Lokhu kusho ukwenyuswa
kwemali ezosotshenziswa emsebenzini owenziwa ngumsebenzi ngamunye emnothweni.
Okusho ukuthi ukukhula kwempahla yokuqhuba ibhizinisi kungaphezulu kokukhula
kwenani labasebenzi. Ngamanye amazwi lokhu kwenzeka uma uhlelo lokukhiqiza
lwenziwa lugxile kakhulu ekwandisweni kwempahla yokwenza umsebenzi (kunokuthi
lugxile ekwandiseni inani labasebenzi). Qhathanisa lokhu nokwenyusa inani lesitokwe
ngokubhekela abasebenzi.
Ulwandiso-mali Ulwandiso-mali lwenzeka xa sukuba umyinge wemali unyuswa
ngomsebenzi omnye kuqoqosho, okokukuthi xa sukuba imali inyuka ngaphezulu
kunokunyuka kwenani labasebenzi.
Ulwandiso-mali, ngamanye amazwi, lwenzeka xa imveliso ichaphazela kakhulu imali
(ingachaphazeli msebenzi). Thelekisa oku nesongezelelo-mali.
ECS1601/1 193
Go teba ga kapetlele Go teba ga kapetlele go direga ge kelo ya kapetlele ka moomi
ekonoming e oketega, ke go re ge kgolo polokelong ya kapetlele e le ye kgolwane
go feta kgolo ye e lego palong ya baomi. Go teba ga kapetlele, ka mantu a mangwe,
go direga ge tweleto e thoma go ithekga kutwana ka kapetlele (e sego ka baomi).
Bapeta se le katologo ya kapetlele.
Koketsego ya matlotlo Koketsego ya matlotlo e diragala fa palo ya matlotlo a modiri e
tlhatlosiwa mo ikonoming, go raya gore fa kgolo mo thotong ya letlotlo e le kgolwane go
na le kgolo mo palong ya badiri. Ka mantswe a mangwe, koketsego ya matlotlo e diragala
fa e le gore tlhagiso ya dikumo e tlhoka thata tiriso ya matlole (go na le tiriso ya badiri).
Tshwantshanya se le katoloso ya matlotlo.
Capital market This is a market on which securities with a term of longer than three
years are traded.
Kapitaalmark Dit is n mark waarop sekuriteite met n termyn van langer as drie jaar
verhandel word.
Imakethe yemali Lena yimakethe lapho kuthengiswa khona amatayitela (izitifiketi
zobunikazi) anesikhathi esingaphezulu kweminyaka emithathu.
Imarike yemali Le yimarike apho kurhwetywa ngezibambiso zexesha elingaphezu
kweminyaka emithathu.
Mmaraka wa kapetlele Wo ke mmaraka wo go wona go rekiwago mangwalo a bong
bja thoto ao a nago le lebaka la go feta mengwaga ye meraro.
Maraka wa matlotlo Ono ke mmaraka o mo go one go refosanngwang matlole a
tlhomameng a dipaka tse di fetang ngwaga tse tharo.
Capital transfer account This is one of the accounts in the balance of payments. In this
account capital transfers between countries are recorded.
Kapitaaloordragrekening Dit is een van die rekenings in die betalingsbalans. Kapitaal-
oordragte tussen lande word in hierdie rekening aangeteken.
I-akhawunti yokwedlulisela imali Lena ngenye yama-akhawunti ezilinganisweni
zenkokhelo. Kuleakhawunti kurekhodwa izimali ezisuka kwelinye izwe ziya kwelinye.
I-akhawunti yotshintshelo-mali Olu lolunye uhlobo lwe-akhawunti kulungelelwaniso
lwentlawulo.
Kolu hlobo lwe-akhawunti kubhalwa utshintshelo-mali oluphakathi kwamazwe.
Akhaonte ya phetieto ya kapetlele Ye ke ye nngwe ya diakhaonte ta ka
tekatekanong ya ditefelo.
Ka akhaonteng ye, diphetieto ta kapetlele magareng a dinaga, di a ngwalwa.
Tshupatlotlo ya tshutiso ya matlotlo Eno ke e nngwe ya ditshupatlotlo tsa pharologano
ya kananyo.
Mo tshupatlotlong e go tlhagisiwa tshutiso ya matlotlo magareng ga dinaga.
194 Economics 1B
Capital widening Capital widening occurs when the capital stock of an economy is
increased to accommodate an increasing labour force. For example, if the stock of
capital is expanded by 10% in response to a 10% increase in the number of workers, we
call this capital widening. In this case, the average amount of capital per worker remains
unchanged. Compare this with capital deepening.
Kapitaalverbreding Kapitaalverbreding kom voor as die kapitaalvoorraad in n
ekonomie vergroot word om n groeiende arbeidsmag te akkommodeer. As die
kapitaalvoorraad in reaksie op n 10%-vermeerdering in die getal werkers byvoorbeeld
met 10% uitgebrei word, noem ons dit kapitaalverbreding. In di geval bly die gemiddelde
hoeveelheid kapitaal per werker onveranderd. Vergelyk dit met kapitaalverdieping.
Ukwenyusa inani lesitokwe ngokubhekela abasebenzi Lokhu kwenzeka lapho
kwenyuswa inani lesitokwe esikhona emnothweni ngenhloso yokubhekela ukwenyuka
kwenani labasebenzi. Isibonelo uma isitokwe sokuqhube umsebenzi senyuswa
ngamaphesenti ayishumi ngoba kwenzelwa ukuhlinzekela ukwenyuka ngamaphesenti
ayishumi kwabasebenzi lokho kubizwa nge-capital widening. Kulesi simo inani lempahla
yokwenza umsebenzi eqondene nomsebenzi ngamunye ayiguquki. Qhathanisa lokhu
nokwandiswa kwemali ezosetshenziswa ebhizinisini.
Isongezelelo-mali Isongezelelo-mali senzeka xa imali ekhoyo kuqoqosho inyuswa
ukulungiselela ukwanda kwabasebenzi. Umzekelo, ukuba umyinge wemali ekhoyo wanda
nge-10% kuba inani labasebenzi lande nge-10%, loo nto ibizwa ngokuba kukongezelelwa
kwemali. Thelekisa nolwandisomali.
Go katologa ga kapetlele Go katologa ga kapetlele go direga ge polokelo ya kapetlele
ya ekonomi e tlhatlowa gore e kgone go phutha palo ye e oketegago ya baomi.
Mohlala ke ge polokelo ya kapetlele e katolowa ka 10% e le ge e tirogela kgolo ya 10%
ya palo ya baomi, se se bitwa go katologa ka kapetlele. Ge go le bjalo, palogare kabo ya
kapetlele ka moomi e dula e sa fetoga. Bapeta se le go teba ga kapetlele.
Katoloso ya matlotlo Katoloso ya matlotlo e diragala fa thoto ya matlotlo a ikonomi e
okediwa go amogela palo e e tlhatlogang ya badiri. Sekao, fa thoto ya matlole e tlhatlosiwa
ka 10% go tsibogela koketsego ya 10% ya palo ya badiri. Tiragalo e re e bitsa katoloso
ya matlotlo. Mo lebakeng le palogare ya boleng jwa letlole la modiri a le esi ga e fetoge.
Tshwantshanya se le koketsego ya matlotlo.
Cash reserves These are the reserves of money that banks keep at the SA Reserve
Bank. In terms of the South African Reserve Banks Act, banks have to keep a certain
percentage of the money that is deposited with them at the SARB. See also liquid asset
reserves.
Kontantreserwes Dit is die geldreserwes wat banke by die SA Reserwebank hou.
Ingevolge die Wet op die Suid-Afrikaanse Reserwebank moet banke n sekere persentasie
van die geld wat by hulle gedeponeer word, by die SARB hou. Sien ook likiedebate-
reserwes.
Imali egciniwe Lena yimali amabhangi ayigcina e-SA Reserve Bank. Ngokomthetho
we-SA Reserve Bank, amabhangi kumele agcine eReserve Bank iphesenti elithile lemali
efakwe kuwo. Bheka umbandela wokugcinwa kwemali.
ECS1601/1 195
Imali enguvimba Le yimali enguvimba egcinwa ziibhanki kwiBhanki enguVimba
yoMzantsi-Afrika.
NgokomThetho weeBhanki ezinguVimba zoMzantsi-Afrika, iibhanki kufuneka zigcine
umyinge othile wemali efakwa kuzo kwiBhanki enguVimba yoMzantsi-Afrika. Khangela
nakoovimba bogcino-mali.
Maaledi a khee A ke maaledi a khee ao a bewago ke dipanka ka Pankeng ya Resefe.
Go ya ka Molao wa Afrika Borwa wa Panka ya Resefe, dipanka di swanete go boloka
persente ye e itego ya thelete ye e bolokwago go tona ka Pankeng ya Resefe. Bona ga
pe le maaledi a matlotlo a dithelete.
Thelete e e beetsweng thoko Ano ke madi a a beetsweng thoko ke dibanka mme a
bolokwa mo Bankeng ya Rasefe ya Aforika Borwa. Go ya ka molao wa banka ya rasefe
ya Aforika Borwa dibanka di tshwanetse tsa boloka diphesente tse di rileng tsa madi a
a bolokiwang mo go tsona kwa bankeng ya rasefe. Tlhotlhomisa gape ka dirasefe tsa
letlotlo la kelelo.
Central bank A central bank acts as a banker for the government and all the other
banks in the country, and regulates monetary matters in an economy.
Sentrale bank n Sentrale bank tree op as bankier vir die regering en al die ander banke
in die land, en reguleer die monetre aangeleenthede in n ekonomie.
Ibhangi elikhulu Leli bhangi lisebenza njengebhangi likahulumeni kanye nawo wonke
amanye amabhangi akhona ezweni. Leli bhangi liphinde lengamele izindaba ezithinta
izimali kwezomnotho.
Ibhanki enkulu Ibhanki enkulu yibhanki esetyenziswa ngurhulumente nazezinye iibhanki
ezikhoyo kwelo lizwe, kwaye yiyo eqingqa imimiselo yemiba yemali kuqoqosho.
Pankakgolo Pankakgolo e oma bjalo ka sebolokedi sa mmuo le sa dipanka te dingwe
ka moka ta ka nageng ye, gomme e sepedia merero ya dithelete ekonoming.
Banka e kgolo Banka e kgolo ke polokelo ya mmuso le dibanka tsotlhe mo nageng
mme e laola merero ya matlole mo ikonoming.
Change in gross gold and other foreign reserves This is an item in the balance
of payments. It shows how all the other transactions in the balance of payments have
affected the countrys stock of currency gold and foreign exchange in the year
concerned, that is, whether these reserves have increased or decreased.
Verandering in bruto goud- en ander buitelandse reserwes Dit is n inskrywing in
die betalingsbalans. Dit toon hoe al die ander transaksies in die betalingsbalans die land
se voorraad van valuta goud en buitelandse valuta in die betrokke jaar benvloed
het, dit wil s, of hierdie reserwes vermeerder of verminder het.
Uguquko lwegolide kanye nemali egcinwe yizwe Leli ngelinye lamaphuzu lapho
kwenziwa izibalo zamabhuku. Liveza zonke izindaba zokuhwebelana okwenziwe
ezibalweni zamabhuku ukuthi zibe namthelela muni enanini lemali yezwe, igolide nemali
ephumayo ezweni kulowo nyaka othintekayo.
196 Economics 1B
Ngamanye amazwi, siyathola ukuthi lokho okugodliwe (okugciniwe) kwehlile yini noma
kwenyukile.
Inguqu kwigolide ngokubanzi nakwabanye oovimba bamanye amazwe Lo
ngumba kumyinge wentlawulo. Ubonisa indlela ezithe zonke iinkqubo zomyinge
wentlawulo zachaphazela ngayo amandla emali yelizwe kwigolide nakunaniselwano
lwangaphandle kunyaka ochaphazelekayo, okokukuthi ingaba aba vimba banyukile
okanye behlile kusini na.
Diphetogo ta palomoka ya maaledi a gauta le a dinaga di ele Ye ke hlogwana
ye e tsenywago tekatekanong ya ditefelo. E laeta ka mo dipapatiano ka moka ta
ka tekatekanong ya ditefelo di hueditego polokelo ya thelete ya naga- gauta le
phetoetano ya dinaga di ele ngwageng wo o amegago, ke go re ge e le gore maaledi
a a oketegile goba a fokotegile.
Phetogo ya palogotlhe ya gouta le matlole a mangwe a bodithaba Se ke ntlha
mo pharologanong ya dikananyo. E bontsha gore ditirisano tsotlhe tsa pharologanyo ya
dikananyo di tlhotlheleditse jang thoto ya matlotlo gouta le thefosano ya bodithaba
mo ngwageng o o amegang, go raya gore a matlole ano a oketsegile kgotsa a fokotsegile.
Compensation of employees This is a type of income flow that is recorded in a
countrys balance of payments. It includes wages and salaries and other benefits earned
by individuals from countries other than those in which they are resident.
Vergoeding van werknemers Dit is n tipe inkomstevloei wat in n land se betalingsbalans
aangeteken word. Dit sluit in lone, salarisse en ander voordele wat mense verdien het by
ander lande as di waarin in die mense woonagtig is.
Imiholo yabasebenzi Lolu wuhlobo lwemiholo ebhalwayo emarekhodini ezibalo
zezwe. Kulona kungena amaholo kanye nezinye izibonelelo ezitholwa ngabanye
kwamanye amazwe ngaphandle kwalelo umuntu ahlala kulo.
Imbuyekezo yabasebenzi Olu luhlobo lokungena kwengeniso ebhalwa kwiintlawulo
zelizwe. Iquka imivuzo nezinye izibonelelo ezifunyanwa ngabasebenzi kumazwe
angamanye ngaphandle kwalawo bangabahlali kuwo.
Tefo ya bathwalwa Wo ke mohuta wa kelelo ya ditseno ye e ngwalwago ka tekatekanong
ya ditefelo ta naga. E akareta meputso le megolo le dikholego te dingwe teo di
hweditwego ke batho go twa le ka dinageng teo ba sa dulego go tona.
Tuelo ya badiri Se ke mohuta wa letseno le le tlhagisiwang mo pharologanong ya
kananyo ya naga.
Le akaretsa ditefo le dituelo le dipoelo tse dingwe tse di amogelwang ke badiri ba ba
tswang kwa dinageng disele go na le tse ba nnang mo go tsona.
Consumer price index (CPI) This is an index of the prices of a representative basket
of goods and services bought by consumers.
Verbruikersprysindeks (VPI) Dit is n indeks van die pryse van n verteenwoordigende
mandjie goedere en dienste wat deur verbruikers gekoop word.
ECS1601/1 197
Inkomba yamanani omthengi (CPI) Leli yinani lentengo elimele amanani obhasikidi
wempahla kumbe imisebenzi ekhokhelwe ngumsebenzisi.
Isalathiso sexabiso lomthengi (CPI) Esi sisalathiso samaxabiso empahla neenkonzo
ezithengwe ngabathengi.
Thupane ya ditheko ta badirii (CPI) Ye ke thupane ya ditheko ta kelo ye e
emelago te dingwe ya diphahlo le ditirelo te di rekwago ke badirii.
Tshupane ya tlhotlhwa ya badirisi (CPI) Se ke tshupane ya ditlhotlhwa e e emelang
seroto sa dithoto le ditirelo tse di rekiwang ke badirisi.
Consumption function This is the ratio between consumption expenditure (C) and
income (Y). In numerical terms this relationship is expressed as C = f(Y), that is, C is a
function of Y (C depends on Y).
Verbruiksfunksie Dit is die verhouding tussen verbruiksbesteding (C) en inkomste (Y).
In numeriese terme word hierdie verhouding uitgedruk as C = f(Y), dit wil s, C is n
funksie van Y (C hang van Y af).
Ubudlelwano bokusetshenzisiwe nokutholakele Lokhu wukuqhathaniseka
kwamanani phakathi kwalokho okusetshenzisiwe (C) kanye nokutholakele (Y). Lapho
kubalwa lobu budlelwano buvezwa ngokuthi: C = f(Y) okuwukuthi u-C uncike ku-Y.
Ubudlelwane bomlinganiselo Umlinganiselo ophakathi kwenkcitho (C) nengeniso (Y).
Ngokwamanani lo mlinganiselo uboniswa ngolu hlobo C = f(Y), okokukuthi u-C
ungumlinganiselo ka-Y (ngamanye amazwi, u-C uxhomekeke ku-Y).
Moomo wa tirio Ye ke kabo magareng a tshenyagalelo ya tirio (C) le mogolo (Y). Go
ya ka dipalo, kamano ye e hlaloswa bjalo ka C = f(Y), ke gore C ke sediriwa sa Y (C e
ithekgile ka Y).
Tiriso ya didirisiwa Se ke kabo magareng ga tshenyegelo ya tiriso (C) le letseno (Y). Go
ya ka mareo a dipalo kamano e e supiwa jaaka C= f(Y), go raya gore C ke sedirisiwa sa
Y (C o ikaegile ka Y).
Consumption of fixed capital This is the wear and tear of fixed capital goods, such
as buildings and equipment. GDP includes the value of fixed capital that has been
consumed (used up) during the year.
Verbruik van vaste kapitaal Dit is die slytasie van vaste kapitaal soos geboue en toe-
rusting. BBP sluit die waarde van vaste kapitaal in wat deur die loop van die jaar
verbruik (opgebruik) is.
Ukuguga kwempahla onesiqiniseko sayo Lokhu kusho ukuguga nokuhanjelwa
yisikhathi kwempahla esinesiqiniseko sayo ebhizinisini efana nesakhiwo kanye nemishini.
Inani lomkhiqizo owenziwe yizwe (i-GDP) lihlanganisa nenani lokudleka ngalowo
nyaka kwempahla esinesiqiniseko sayo ebhizinisini.
Ukusetyenziswa kwempahla esisigxina Oku kuthetha ukonakala kwempahla
esisigxina njengezakhiwo nezixhobo. Imveliso yelizwe iyonke iquka ixabiso lempahla
esisigxina esetyenzisiweyo ngonyaka.
198 Economics 1B
Tirio ya kapetlele ye e sa uthego Ye ke konalo ya diphahlo te di sa uthego ta go
swana le meago le ditlabelo. Ditweletwamoka ta ka Gare ga Naga (GDP) di akareta
boleng bja kapetlele ye e sa uthego ye e diriitwego ngwageng.
Tiriso ya matlotlo a a tlhomamisitsweng Se ke go ya tlase ga boleng jwa dithoto
tsa matlotlo a a tlhomamisitsweng jaaka dikago le ditlamelo tsa go ntsha dikumo. GDP
(palogotlhe ya dikumo tsa naga) e akaretsa tlhotlhwa ya matlotlo a a tlhomameng a a
dirisitsweng mo ngwageng.
Contractionary fiscal policy When the government reduces government expenditure
and increases taxes to cool off the economy, it is implementing a contractionary fiscal
policy.
Beperkende fiskale beleid Beperkende fiskale beleid is n beleid wat die regering
toepas om die ekonomie af te koel deur staatsbesteding te verminder en/of belastings
te verhoog.
Umgomo kahulumeni wokunciphisa imali ayichithayo enyuse nentela Uma
uhulumeni enciphisa imali ayichithayo, ekhuphula nentela ngoba efuna ukusimamisa
umnotho usuke esebenzisa lo mgomo.
Umgaqo wolungelelaniso loqoqosho Xa urhulumente ethoba inkcitho aze anyuse
iirhafu ukuzama ukulungelelanisa uqoqosho, oko kubizwa ngokuba ngumgaqo
wolungelelaniso loqoqosho.
Leanotshepedio la dithelete leo le tlamago Ge mmuo o fokota ditshenyagalelo
ta mmuo gomme o oketa methelo go fodia ekonomi, o diria leanotshepedio la
dithelete leo le tlamago.
Taolo ya mmuso ya matlotlo go fokotsa ditshenyegelo Fa mmuso o fokotsa
ditshenyegelo tsa puso mme o oketsa lekgetho go thusa mo maemong a ikonomi, o
diragatsa phokotso ya ditshenyegelo.
Core inflation rate The core inflation rate is the inflation rate for a basket of selected
goods and services that have relatively stable prices. In calculating this type of inflation,
therefore, some goods and services that have fluctuating prices are disregarded.
Kerninflasiekoers Die kerninflasiekoers is die inflasiekoers vir n mandjie geselekteerde
goedere en dienste wat betreklik stabiele pryse het. Wanneer di tipe inflasie bereken
word, word sommige goedere en dienste met wisselende pryse dus verontagsaam.
Umsuka wokwehla kwamandla emali Ukwehla kwamandla emali empahleni
ekubhasikidi ophethe impahla enamanani angavami ukuguquguquka. Lapho kubalwa lolu
hlobo lokwehla kwamandla emali ayize ingafakwa impahla kumbe imisebenzi enamanani
aguquguqukayo.
Umyinge ongumongo wonyuko-maxabiso Umongo womyinge wonyuko-maxabiso
ngumyinge wokunyuka kwamaxabiso empahla neenkonzo ezikhethiweyo ezidla ngokuba
namaxabiso azinzileyo.
Xa kubalwa olu didi lonyuko-maxabiso, enye impahla neenkonzo ezinamaxabiso anyuka
esihla zidla ngokungahoywa zona.
ECS1601/1 199
Kelotheo ya infleiene Kelotheo ya infleiene ke kelo ya infleiene ya kelo ya diphahlo
le ditirelo te di kgethilwego, teo di nago le ditheko te di tieletego ge di bapetwa le
te dingwe. Ka lebaka leo, ge go ongwa mohuta wo wa infleiene, diphahlo te dingwe
le ditirelo te di nago le ditheko te di fetofetogago, di a hlokomologwa.
Kelo ya infoleiene e e tlhomameng Kelo ya infoleiene e e tlhomameng ke kelo ya
infoleishene ya seroto se se tlhophilweng sa dithoto le ditirelo tse di nang le ditlhotlhwa
tse di amanang ka tsepamo.
Ga go badiwa infoleiene ya mohuta o, dithoto le ditirelo dingwe tse di nang le ditlhotlhwa
tse di sa tsepamang ga di tsewe tsia.
Cost-push inflation This is inflation that is caused by increases in the input costs of
production.
Kostedrukinflasie Dit is inflasie wat veroorsaak word deur stygings in die insetkoste
van produksie.
Ukwehla kwamandla emali okubangwa yizindleko Lokhu kwehla kwamandla emali
kubangwa wukwenyuka kwezindleko zokukhiqiza.
Unyuko-maxabiso oluphenjelelwayo Olu lunyuko lwamaxabiso olubangelwa
kukunyuka kweendleko zemveliso.
Infleiene ya go huetwa ke ditshenyagalelo Ye ke infleiene ye e bakwago ke
ditlhatlogo ta didiriwa ta tweleto.
Infoleiene ya koketsego ya ditshenyegelo Eno ke infoleiene e e bakiwang ke
koketsego ya ditshenyegelo tsa ditlhagisiwa tsa dikumo.
Creeping inflation This is a type of inflation where prices increase by less than 10%
per year.
Kruipende inflasie Dit is n tipe inflasie waartydens pryse met minder as 10% per jaar
styg.
Ukwehla kwamandla emali ngokucothayo Lokhu wukwehla kwamandla emali
okubangela ukwenyuka kwamanani entengo ngamaphesenti angaphansi kweshumi
ngonyaka.
Unyuko-maxabiso oluthwethwayo Olu ludidi lonyuko-maxabiso apho amaxabiso
anyuka ngomyinge ongaphantsi kwe-10% ngonyaka.
Infleiene ye e neneketago Wo ke mohuta wa infleiene wo go wona ditheko di
oketegago ka persente ya ka tlase ga 10 ka ngwaga.
Infoleiene e e tlhatlogang ka iketlo Ono ke mohuta wa infoleiene o mo go ona
ditlhotlhwa di oketsegang ka palo e e kwa tlase ga diphesente di le lesome ka ngwaga.
Current account This is one of the accounts in the balance of payments. In this account
payments and receipts are recorded relating to the flows of goods and services, and
other flows of income.
200 Economics 1B
Lopende rekening Dit is een van die rekenings in die betalingsbalans. In hierdie rekening
word betalings en ontvangste in verband met die vloei van goedere en dienste en ander
inkomstevloeie aangeteken.
I-akhawunti yesheke Lena ngenye yama-akhawunti ezilinganiso zenkokhelo. Kule-
akhawunti kurekhodwa yonke imali ekhokhwe kumbe etholakele ephathelene nempahla
nemisebenzi ethile, nezinye izinhlelo ezingenisa imali.
Iakhawunti yetshekhi Olunye udidi lwe-akhawunti yemali kulungelelwaniso
lweentlawulo. Le akhawunti yenza iintlawulo kuze kubhalwe iirisithi ngokwezinto
ezenziweyo ngayo neminye imiba yemali.
Thupatlotlo ya moela Ye ke ye nngwe ya diakhaonte ta ka tekatekanong ya ditefelo.
Ka akhaonteng ye, ditefelo le diresiti di a ngwalwa mabapi le go ela ga diphahlo le ditirelo,
le meela ye mengwe ya ditseno.
Tshupatlotlo ya kelelo Eno ke e nngwe ya ditshupatlotlo tse di tlhagelelang mo
pharologanong ya kananyo. Dituelo le ditirelo tse di amanang le kelelo ya dithoto le
ditirelo di tlhagisiwa mo go yona mmogo le kelelo e nngwe ya letseno.
Current transfers This is an item in the current account of the balance of payments.
Transfers are transactions in which money or goods are given to someone without any
payment being received or offered in return. Most transfers consist of gifts of some kind.
Lopende oordragte Dit is n inskrywing in die lopende rekening van die betalingsbalans.
Oordragte is transaksies waartydens geld of goedere aan iemand gegee word sonder
dat enige betaling daarvoor ontvang word of aangebied word. Die meeste oordragte is
geskenke van een of ander aard.
I-akhawunti yokudlulisela imali Leli ngelinye lamaphuzu atholakala e-akhawuntini
yesheke yezilinganiso zenkokhelo. Ukwedlulisa kusho leso simo sokwedlulisa impahla
noma imali iya komunye umuntu ngaphandle kokuthi lowo muntu akhokhe kumbe enze
isethembiso sokukhokha. Ngokuvamile okwedluliswayo kuba yizipho.
I-akhawunti yotshintshelo Lulutho olufumaneka kwi-akhawunti yemali
kulungelelwaniso lweentlawulo. Utshintshelo kukunikwa komntu imali okanye impahla
ngaphandle kwentlawulo okanye nto yimbi eya kuzuzwa ngeso senzo. Ubukhulu becala
utshintshelo ludla ngokuba zizipho ezithile.
Diphetieto ta meela Ye ke hlogwana ye e lego ka thupatlotlong ya moela ya
ditekatekano ta ditefelo. Diphetieto ke dipapatiano teo ka tsona thelete goba
diphahlo di fiwago motho yo mongwe ntle le gore go fiwe goba go holofetwe tefelo.
Bonti bja diphetieto ke bja dimpho ta mohuta wo mongwe.
Tshutiso ya kelelo Eno ke nngwe ya ditshupatlotlo tsa pharologano ya kananyo.
Ditshutiso ke ditirisano tse mo go tsona madi kgotsa dithoto di newang mongwe kwa
ntle ga kamogelo ya tuelo nngwe kgotsa kabelo. Bontsi jwa ditshutiso bo diriwa ke
dimpho tsa mohuta mongwe.
ECS1601/1 201
Cyclical unemployment This is unemployment that is linked to the business cycle.
In the downswing of the cycle, unemployment will be higher than in the other phases
of the cycle, and the type of unemployment that results from this is known as cyclical
unemployment.
Sikliese werkloosheid Dit is werkloosheid wat met die konjunktuursiklus verband
hou. In die afswaaifase van die siklus sal werkloosheid hor wees as in die ander fases
van die siklus; di tipe werkloosheid word sikliese werkloosheid genoem.
Ukwentuleka komsebenzi okuncike esimeni sebhizinisi Lokhu wukwentuleka
komsebenzi okuncike ekutheni ibhizinisi lihamba kanjani. Uma ibhizinisi lintenga
ukusweleka komsebenzi kuba kukhulu kunezinye izikhathi. Lokhu kuntuleka komsebenzi
okuncike ebhizinisini kubizwa nge-cyclical unemployment.
Intswela-ngqesho yomjikelo wokungazinzi Kuthethwa intswela-ngqesho
enxulumene nomjikelo weshishini. Xa umjikelo wokungazinzi usihla, intswela-ngqesho
iyakunyuka kwezinye izigaba zomjikelo weshishini, ukuze ke intswela-ngqesho ethi
ibangelwe koku ibizwe ngokuba yintswela-ngqesho yomjikelo weshishini.
Tlhokego ya meomo ya leboo Ye ke tlhokego ya meomo ye e kgokaganywago le
leboo la kgwebo.
Theogelong-tlase ya leboo leo, tlhokego ya meomo e tla ba godingwana go feta
magatong a mangwe a leboo, gomme mohuta wa tlhokego ya meomo wo o bago gona
ka lebaka la se, o tsebja bjalo ka tlhokego ya meomo ya leboo.
Tshekeletsa ya botlhakatiro Seno ke botlhakatiro jo bo amanang le kgwebo
tshekeletsa. Fa tshekeletsa eno e fetogela tlase botlhokatiro bo tla nna kwa godimo go
feta matlhakore a mangwe a tshekeletsa, mme mohuta wa botlhokatiro o o bakwang ke
seno o itsege jaaka tshekeletsa ya botlhakatiro.
Deferred payment A deferred payment is a payment that is postponed; for example,
if you buy something now but pay it off over a few months, your payment will have
been deferred. Money is a standard of deferred payment, that is, money is accepted as
a means to pay for something at a later date.
Uitgestelde betaling n Uitgestelde betaling is n betaling wat uitgestel word; as jy
byvoorbeeld nou iets koop maar dit oor n paar maande afbetaal, sal jou betaling uit-
gestel wees. Geld is n standaard vir uitgestelde betaling, dit wil s, geld word aanvaar as
n middel om op n later datum vir iets te betaal.
Ukukhokha okwelulelwe isikhathi Lokhu kusho ukukhokha ngamancozuncozu noma
okwelulelwe isikhathi. Isibonelo, uma uthenga impahla manje kodwa ukuyikhokhela
kwakho kuthathe izinyanga ezimbalwa. Imali iyona ndlela yokukhokha eyamukelekile
kulokhu kukhokhelwa kwento okwenziwa ngesinye isikhathi.
Intlawulo ebuyiselwe umva Intlawulo ebuyiselwe umva yintlawulo ebekelwe elinye
ixesha; njengokuthenga impahla ngoku kodwa uyihlawulele ngeenyanga ezinga ezizayo,
xa kunjalo ke intlawulo ibuyiselwe umva. Yimali undoqo wentlawulo ebuyiselwe umva,
okokukuthi yimali eye yamkelwe njengento ekuhlawulelwa ngayo kamva loo nto
ibithengiwe.
202 Economics 1B
Tefelo ye e fegwago Mohlala wa tefelo ye e fegwago ke ge o reka se sengwe gona
bjale, eupa I se kefeka kebajebg ka dujgwedu te mmalwa; tefelo ya gago e tla be e
fegilwe. Thelete ke kemo ya tefelo ye e fegilwego; ke go re thelete e amogelega bjalo
ka mokgwa wa go lefela se sengwe moragonyana.
Tiegiso ya tuelo Tiegiso ya tuelo ke tuelo e letlha la yona le busediwang morago; sekao,
fa o reka sengwe gona jaanong, mme o se duelela mo dikgweding tse di mmalwa, tuelo
ya gago e a diegisiwa. Madi ke seabe sa tlhomamiso ya tiegiso ya tuelo, ke gore, madi a
amogelwa jaaka seabe sa go duela sengwe mo nakong e e tlang.
Demand deposits Demand deposits are deposits at financial institutions that can be
withdrawn immediately by means of a cheque. If you write a cheque on your account,
you are demanding that the bank gives you some of your money.
Onmiddellik opeisbare depositos Onmiddellik opeisbare depositos is depositos by
finansile instellings wat onmiddellik deur n tjek onttrek kan word. As jy n tjek teenoor
jou rekening uitskryf, eis jy dat die bank jou onmiddellik n deel van jou geld moet
gee.
Imali ongayikhipha Lezi yizimali ezisesikhungweni sezimali ongakwazi ukuthi uzikhiphe
masisha ngesheke. Uma ubhala isheke e-akhawuntini yakho usuke uyalela ibhangi ukuthi
alikunike isamba esithile emalini yakho.
Ubango lwedipozithi Ubango lwedipozithi yidipozithi efakwe ebhankini enokuthi
ikhutshwe ngoko nangoko ngokusayinwa kwetshekhi. Ukuba uthi usayine itshekhi kwi-
akhawunti yakho, wenza ubango kwibhanki leyo ukuba ikunike isixa esithile kwimali
yakho.
Dipeeleto ta go nyakwa Dipeeleto ta go nyakwa ke dipeeleto te di lego ka
ditheong ta dithelete, teo di ka nthwago ka bjako ka theke. Ge o ngwala theke
akhaonteng ya gago, o nyaka gore panka e go fe ye nngwe ya thelete ya gago.
Topo ya madi a a bolokilweng Topo ya madi a a bolokilweng ke dipeeletso tse di leng
kwa ditheong tsa polokelo ya madi tse di ka ntshiwang ka go dirisa ditsheke mo nakong e
khutshwane. Fa o kwala tsheke go tswa mo tshupatlotlong ya gago, o lopa gore banka
e go neele madi a a rileng a gago.
Demand-pull inflation This is inflation that is caused by excess demand. It thus occurs
when there is an upward shift in the aggregate demand curve.
Vraagtrekinflasie Hierdie tipe inflasie word deur oorskotvraag veroorsaak. Dit kom
dus voor wanneer daar n opwaartse verskuiwing in die makrovraagkromme is.
Ukwehla kwamandla emali okubangwa yisidingo esedlulele Lokhu wukwehla
kwamandla emali okubangwa yisidingo esedlulele. Kwenzeka uma kunokwenyuka
emdwebeni okhombisa ukudingeka kwempahla.
Unyuko-maxabiso olubangwa yimfuno Olu lunyuko lwamaxabiso olubangelwa
yimfuno engaphezulu. Lwenzeka ngokunyuka kwenani lilonke leemfuno.
Infleiene ya go huetwa ke nyakego Ye ke infleiene ye e bakwago ke nyakego ye
e feteletego.
ECS1601/1 203
Ka lebaka leo e direga ge go na le go tlhatlogela godimo ga khebe ya kabo ya nyakego.
Infoleiene ya topo e ntsi Eno ke infoleihene e e bakwang ke topo e ntsi. Ka jalo e
diragala fa palogotlhe ya mola wa topo e ya godimo.
Deregulation Deregulation is the relaxation or elimination of rules and regulations that
restrict entrepreneurship.
Deregulering Deregulering is die verslapping of uitskakeling van rels en regulasies wat
entrepreneurskap moeilik maak.
Ukuthanjiswa nokuqedwa kwemithetho Kusho ukuthanjiswa noma ukuqedwa
kwemithetho neziqondiso eziyimibandela kwezohwebo.
Uthothiso-mimiselo Uthothiso-mimiselo kukuyekelelwa okanye ukupheliswa
kwemithetho okanye imigaqo nemimiselo eyalela (ebophelela) ushishino.
Taollofato Taollofato ke go nyefiwa goba go fediwa ga melawana le melaotshepedio
ye e beelago bogwebi mellwane.
Phefofatso ya melawana Phefofatso ya melawana ke go repisa kgotsa go tlosa
melawana le melao e e kgoreletsang bogwebi.
Derived demand A derived demand exists when people demand something, not for
its own sake, but for the sake of getting something else. For example, there is a derived
demand for labour: businesses do not demand labour for its own sake, but for the
products and services that can be produced by labour.
Afgeleide vraag n Afgeleide vraag is n vraag na iets, nie ter wille van daardie iets
nie, maar om iets anders te verkry. Daar is byvoorbeeld n afgeleide vraag na arbeid:
besighede vra nie arbeid slegs ter wille van arbeid nie, maar vir die produkte en dienste
wat deur arbeid geproduseer kan word.
Isidingo esivezwe yinto ethile Abantu banesidingo sento ethile ukuze bazuze okuthile.
Isibonelo salokhu yisidingo sabasebenzi: amabhizinisi awadingi nje abasebenzi ngoba
efuna ukuba nabo kodwa abadinga ngoba bezokwenza umkhiqizo noma imisebenzi
ethile.
Imfuneko evelileyo Imfuneko evelileyo yenzeka xa abantu kufuneka benze okuthile
kodwa bengenzeli iziqu zabo koko besenzela into ethile. Umzekelo, xa kusithiwa kukho
imfuneko evelileyo yomsebenzi, asingomashishini afuna umsebenzi, yimveliso neenkonzo
ezinokufunyanwa ngobukho okanye ngokuzalisekiswa kwaloo msebenzi.
Nyakego ka lebaka la se sengwe Nyakego ka lebaka la se sengwe e ba gona ge batho
ba nyaka se sengwe, e sego lebakeng la selo seo, eupa lebakeng la gore ba hwete se
sengwe. Mohlala ke ge go na le nyakego ya baomi ka lebaka la se sengwe: dikgwebo ga
di nyake baomi feela ka lebaka la go nyaka baomi, eupa ka lebaka la ditweletwa le
ditirelo teo di ka tweletwago ke baomi bao.
204 Economics 1B
Topo ya dintshiwa Topo ya dintshiwa e nna teng fa batho ba tlhoka sengwe e se kantlha
ya boleng ba sona, mme e le kantlha ya go bona sengwe se sele. Sekao, go na le topo ya
dintshiwa tsa badiri: dikgwebo ga di tlhoke badiri ka ntlha ya boleng jwa tsona mme ke
ka ntlha ya dikumo le ditirelo tse di ka ntshiwang ke badiri.
Direct investment This is a type of capital transaction that is recorded in the financial
account of the balance of payments. It includes all transactions where an investor invests
in an enterprise with the purpose of gaining control of the enterprise, or having a
meaningful say in its management.
Direkte investering Dit is n tipe kapitaaltransaksie wat in die finansile rekening van die
betalingsbalans aangeteken word. Dit sluit alle transaksies in waartydens n investeerder
in n onderneming bel met die doel om beheer van die onderneming te verkry, of n
beduidende s in sy bestuur te h.
Ukutshalwa kwemali okwenziwa ngqo ebhizinisini Lolu wohlobo lwezindaba
zokuhwebelana olubhalwayo ezilinganisweni zenkokhelo. Lubandakanya zonke izimo
lapho umtshalizimali efaka khona izimali zakhe ebhizinisini ngenhloso yokuba nesandla
ekulawulweni kwebhizinisi noma efuna ukuba nezwi elizwakalayo ekuphathweni kwalo.
Utyalo-mali olungqalileyo Olu ludidi lwemali ethi ibhalwe kwi-akhawunti yemali
kulungelelwaniso lweentlawulo. Ithi iquke yonke imali efakwe ngumtyali-mali kushishino
ngenjongo yokulawula ushishino olo okanye ngenjongo yokuba nelizwi ekulawulweni
kwalo.
Peeleto ya thwii Wo ke mohuta wa papatiano ya kapetlele ye e ngwalwago ka
akhaonteng ya matlotlo ya tekatekano ya ditefelo. E akareta dipapatiano ka moka
moo mmeeleti a beeletago kgwebong ka maikemieto a go hweta taolo ya kgwebo
yeo, goba a go ba le lentu le le kwalago taolong ya kgwebo yeo.
Dipeeletso tsa tlhamalalo Eno ke tirisano ya matlotlo e e tlhagelelang mo tshupatlotlong
ya dithelete tsa pharologano ya kananyo. E akaretsa ditirisano tsotlhe tse mmeletsi a
beeletsang ka tsona mo kgwebong ka maikaelelo a go laola kgwebo eo kgotsa go nna le
lefoko le le nang le mosola mo tsamaisong ya yona.
Direct taxation Direct taxation is taxes that are levied directly on the income of
individuals and businesses.
Direkte belasting Direkte belasting is belasting wat direk op die inkomste van individue
en besighede gehef word.
Intela ethathwa ngqo emholweni womuntu Lena yintela ethathwa ngqo emholweni
womuntu ngamunye kumbe emalini eyenziwe yibhizinisi.
Urhafiso olungqalileyo Urhafiso olungqalileyo yirhafu efakwa ngqo kumvuzo
wabasebenzi okanye kumashishini.
Mothelo wa thwii Mothelo wa thwii ke methelo yeo e lefiwago thwii megolong ya
baomi goba dikgwebong.
Lekgetho le le tlhamaletseng Lekgetho le le tlhamaletseng ke lekgetho le le
kgethisiwang ka tlhamalalo mo letsenong la batho kgotsa dikgwebo.
ECS1601/1 205
Distribution role The government plays a distribution role in the economy: it takes
steps to achieve a more equitable distribution of income.
Distribusierol Die regering speel n distribusierol in die ekonomie: hy doen stappe om
n regverdiger inkomstedistribusie (verdeling van inkomste) te verkry.
Indima yokwaba Uhulumeni ubamba iqhaza lokwaba umnotho: uba nesandla ekuzameni
ukuthi kube khona ukulingana ezimalini ezitholwa ngabantu.
Indima yolwabiwo Urhulumente udlala indima yolwabiwo kuqoqosho: uthabatha
amanyathelo aqinisekisa ngolwabiwo olungenadolo lwengeniso yelizwe.
Tema ya phatlalato Mmuo o kgatha tema ya phatlalato ekonoming: o tea magato a
go fihlelela phatlalato ye e e lekalekanego kutwana ya ditseno.
Tiro ya kabo Mmuso ke ona o diragatsang tiro ya kabo mo ikonoming: e tsaya dikgato
go fitlhelela tekatekano e e siameng ya kabo ya letseno.
Divisibility Something that is divisible can be subdivided or broken up into smaller units.
Divisibility is one of the requirements for a medium of exchange for example, a R10
note must be divisible into smaller units such as rands and cents.
Deelbaarheid Iets wat deelbaar is, kan onderverdeel word of in kleiner eenhede
opgebreek word. Deelbaarheid is een van die vereistes vir n ruilmiddel n R10-noot
moet byvoorbeeld in kleiner eenhede soos rande en sente verdeel kan word.
Okungehlukaniseka Lokhu kusho into enokucazeka yehlukaniseke izigatshana ezincane.
Lona ngomunye wemibandela yalokho okwamukelwa ngumthengisi njengokungakhokha
isikweletu isibonelo, u-R10 wephepha kumele kube nendlela yokumehlukanisa abe
ngamaranndi namasenti.
Ukwahluleka Into enakho ukwahluleka yinto enokwahlulwahlulwa okanye iqhekezwe
ibe ngamasuntswana. Ukwahluleka yenye yeemfuno zonaniselwano umzekelo, i-R10
(ishumi leerandi) linokwahlulwa libe ziirandi neesenti.
Karolego Selo se se arolegago se ka arolwa goba sa kgaoganywa ka dikgawana te dinti.
Karolego ke ye nngwe ya dinyakwa seo go ka fetolelanwago ka sona mohlala ke ge
papetlamna ya R10 e swanete go arolega ka dikgawana te nnyane go swana le diranta
le disente.
Karolego Sengwe se se arolegang se ka aroganngwa kgotsa sa nathoganngwa go nna
dikarolwana tse di nnye. Karolego ke nngwe ya ditlhokego tsa kananyo ya madi sekao,
pampirithelete ya R10 e tshwanetse go ka aroganngwa ka dikarolwana tse di nnye tse
di jaaka diranta le disente.
Domestic exchange ratio This is the relationship of opportunity cost between two
products that are produced within the borders of a country. For example, if a country
can produce either 10 bags of maize or 5 bags of wheat, then the domestic exchange
ratio between maize and wheat is 10:5, that is 2:1.
206 Economics 1B
Binnelandse ruilverhouding Dit is die verhouding van geleentheidskoste tussen twee
produkte wat binne die grense van n land geproduseer word. As n land byvoorbeeld
f 10 sakke mielies f 5 sakke koring kan produseer, is die binnelandse ruilverhouding
tussen mielies en koring 10:5, dit is 2:1.
Ubudlelwano bezindleko zokukhiqiza Ubudlelwano obukhona phakathi kwezindleko
zemikhiqizo emibili ekhiqizwa ngaphakathi komngcele wezwe. Isibonelo: Uma izwe
likhiqiza amasaka ayi-10 ombila noma amasaka ama-5 kakolo, lapho i-domestic exchange
ratio phakathi kombila nokolo ngu 10:5 nokulingana no-2:1.
Umyinge wothelekiso lwemveliso yangaphakathi Lo ngumahluko ophakathi
kweemveliso ezimbini zelizwe elithile. Umzekelo, ukuba ilizwe linemveliso eliziingxowa
ezili-10 lize libe nemveliso yeengxowa zengqolowa ezi-5, umyinge wothelekiso
lwemveliso yangaphakathi yombona nengqolowa uya kuba li-10:5, okokukuthi isi-2:1
(isibini kwisinye).
Kabo ya phetolelano ya ka nageng Ye ka kamano ya ditshenyagalelo ta dibaka
magareng a ditweletwa te pedi te di tweletwago ka mellwaneng ya naga. Mohlala
ke ge naga e ka tweleta mekotla ye 10 ya lehea goba mekgotla ye 5 ya korong, gona
kelo ya phetolelano ya ka nageng magareng a lehea le korong, ke 10:5, ke gore 2:1.
Kabo ya dikananyo tsa selegae Se ke kamano ya ditshenyegelo tsa ditshiamelo
magareng ga dikumo tse pedi tse di tlhagisiwang mo teng ga melelwane ya naga. Sekao,
fa naga e ka tlhagisa kgetse di le 10 tsa mmopo kgotsa di le 5 tsa korong go raya gore
kananyo ya selegae magareng ga mmopo le korong ke 10:5, go raya gore ke 2:1.
Downswing The downswing is a phase of the business cycle in which economic activity
starts to cool down and gradually decreases. Such a slowdown in economic activity is
also called a recession.
Afswaai Die afswaai is n fase van die konjunktuursiklus waartydens ekonomiese akti-
witeit begin afkoel en stelselmatig verminder. So n afname in ekonomiese aktiwiteit
word ook n resessie genoem.
Ukushona phansi komnotho Lesi yisigaba soguquko ebhizinisini lapho umnotho uba
nokushona phansi bese ubuye udlondlobala kancane kancane. Lokho kushona phansi
komnotho kubizwa ngokuthi wukuphindela kwawo emuva.
Ukuhla komsinga Ukuhla komsinga sisigaba esifumaneka kumjikelo wokungazinzi
kweshishini, apho inkqubo yezoqoqosho iqalisa ngeempawu zokuhla ize ihle ithe chu.
Oku kuhla kukwabizwa ngokuba kukuhla koqoqosho.
Theogo Theogo ke legato la leboo la kgwebo leo go lona ditiro ta ekonomi di thomago
go fola gomme ta fokotega gannyane-gannyane. Phokotego ye bjalo ditirong ta
ekonomi e bitwa gape gore ke reseene.
Kwelotlase Kwelotlase ke paka ya kgwebo tshekeletsa eo mo go yona ditiragatso tsa
ikonomi di simololang go ya tlase le go fokotsega ka iketlo. Iketlo ya go nna jalo mo
tiragatsong ya ikonomi e itsege gape ka reseene.
ECS1601/1 207
Dumping Dumping takes place when established industries sell their products on a
foreign market at prices lower than those on the foreign countrys domestic market.
For example, a large company like Coca Cola might sell its cans of soft drinks in African
countries at a lower price than the prices of the other soft drinks that are produced in
these African countries.
Storting Storting vind plaas wanneer gevestigde nywerhede hulle produkte op n
buitelandse mark verkoop teen n prys wat laer is as die prys van di produkte op die
land se binnelandse mark. Storting sou byvoorbeeld plaasvind as n groot maatskappy
soos Coca Cola sy blikkies koeldrank in Afrikalande verkoop teen n laer prys as di van
koeldranke wat in die betrokke Afrikalande vervaardig word.
Ukulahlela izimpahla Lona ngumkhuba ovama ukwenziwa yilezo mboni ezisimeme
wokuthi zithathe impahla yazo ziyoyithengisa kwamanye amazwe ngentengo engaphansi
kwaleyo lawo mazwe athengisa ngayo impahla yawo. Isibonelo, uma inkampani enkulu
efana noCoca Cola ingasuka iyothengisa amakani eziphuzo zayo emazweni ase-Afrika
ngenani elingaphansi kwalelo lawo mazwe athengisa ngalo imikhiqizo eyenziwe kuwo.
Ukuphisa Ukuphisa kwezoqoqosho kwenzeka ngokuthi amashishini athengise imveliso
yawo kwiimarike zangaphandle ngamaxabiso anganeno kunalawo eemarike zamazwe
angaphandle. Umzekelo, xa iqumrhu lakwaCoca Cola linokuthi lithengise imveliso yayo
yeetoti zeziselo ezibandayo kumazwe aseAfrika ngexabiso elingaphantsi kunamaxabiso
ezinye iziselo ezibandayo eziveliswa kula mazwe aseAfrika.
Kgotholo Kgotholo e ba gona ge di-intaseteri te di tsebegago di rekia ditweletwa
ta tona mmarakeng wa ntle ka ditheko te di lego tlasana ga ta mmaraka wa ntle.
Mohlala ke ge khamphani ye kgolo ya go swana le Coca Cola e ka rekia malekana a
yona a dinomaphodi ka dinagang ta Afrika ka ditheko ta tlasana go feta ditheko ta
dinomaphodi te dingwe te di tweletwago ka dinageng teo ta Afrika.
Tshitlhololelo ya kwa ntle Tshitlhololelo ya kwa ntle e diragala fa madirelo a a tlhomameng
a rekisa dikumo tsa ona mo mmarakeng wa dinaga tsa kwa ntle ka ditlhotlhwa tse di kwa
tlase go feta tse di leng mo mmarakeng wa tsona wa dinaga tsa kwa ntle. Sekao, setlamo
se segolo jaaka Coca Cola se ka rekisa ditshitswana tsa dinotsididi tsa sona mo dinageng
tse dingwe tsa Aforika ka tlhotlhwa e e kwa tlase go na le ditlhotlhwa tsa dinotsididi tse
di tlhagisiwang ke dinaga tseo tsa Aforika.
Durability Something that is durable lasts for a very long time. Durability is one of the
requirements for a medium of exchange.
Duursaamheid Iets wat duursaam is, is iets wat baie lank hou. Duursaamheid is een van
die vereistes vir n ruilmiddel.
Isikhathi impahla esihlalayo Ukuhlala kwempahla kusho isikhathi eside impahla
esihlalayo ngaphambi kokuguga. Lona ngomunye wemibandela wokuthengiselana.
Ukugcinakala Xa kusithiwa into igcinakele sukuba ihlala ithuba elide. Ukugcinakala
yenye yezinto eziyimfuneko kunaniselwano.
Tshwarelelo Selo se se swarelelago se tea lebaka le letelele kudu. Tshwarelelo ke se
sengwe sa dinyakwa teo di nyakegago sediriweng sa go fetolelana.
208 Economics 1B
Tshwarelelo Sengwe se se tshwarelelang se nna teng sebaka se seleele. Go tshwarelela
ke nngwe ya ditlhokego tsa didirisiwa tsa kananyo.
Economically active population The economically active population of a country is all
the people who are available to participate in the production of goods and services. The
economically active population is everyone who is willing and able to work, that is, both
employed and unemployed people. (Unemployed people are not working, but they are
available to work.)
Ekonomies aktiewe bevolking Die ekonomies aktiewe bevolking van n land is al die
mense wat beskikbaar is om aan die produksie van goedere en dienste deel te neem.
Die ekonomies aktiewe bevolking sluit almal in wat gewillig en in staat is om te werk, dit
wil s, sowel mense wat werk het as di wat nie werk het nie. (Diegene wat werkloos
is, werk nie, maar hulle is beskikbaar om te werk.)
Abantu ababambe iqhaza kwezomnotho Laba ngabantu abangakwazi ukubamba
iqhaza ekukhiqizweni kwempahla kanye nasekwenzeni imisebenzi ethile. Lapha
kukhulunywa ngabantu abafisayo futhi abasesimeni sokuthi bangasebenza, laba kungaba
abantu abasebenzayo kumbe abangasebenzi. (Abantu abangasebenzi kumele babe
ngabantu abangakwazi ukusebenza lapho kuvela umsebenzi.)
Uluntu oluthabatha inxaxheba kuqoqosho Uluntu lwelizwe oluthabatha inxaxheba
kuqoqosho ngabo bonke abantu abafumanekayo ukuba bathabathe inxaxheba
ekuvelisweni kwempahla okanye kweenkonzo. Ngoko ke aba ngabantu abanomnqweno
nabanakho ukusebenza, okokukuthi abaphangelayo nabangaphangeliyo. (Abantu
abangaphangeliyo ngabantu abangasebenziyo kodwa befuna ukusebenza.)
Sethaba se se kgathago tema ekonoming Sethaba sa naga seo se kgathago tema
ekonoming ke batho ka moka bao ba hwetagalago go kgatha tema tweletong ya
diphahlo le ditirelo. Sethaba se se kgathago tema ekonoming ke batho ka moka bao ba
ratago ebile ba kgona go oma, ke gore bobeding batho bao ba thwetwego le bao ba
sa thwalwago. (Batho ba ba sa thwalwago ga ba ome, eupa ba a hwetagala gore ba
ka oma.)
Baagi ba ba nnang le seabe mo ikonoming Baagi ba ba nnang le seabe mo ikonoming
ya naga ke batho botlhe ba ba leng teng go ka nna le seabe mo tlhagisong ya dithoto
le ditirelo. Baagi ba ba nnang le seabe mo ikonoming ke monwe le mongwe yo a nang
le maikemisetso e bile a ka kgona go dira, ke gore, batho ba ba thapilweng le ba ba sa
thapiwang. (Batho ba ba sa thapiwang ga ba dire mme ba teng go ka dira.)
Exchange control Exchange control is the regulations that determine how one currency
should be exchanged for other currencies.
Deviesebeheer Deviesebeheer, ook bekend as valutabeheer, is die regulasies wat
bepaal hoe een geldeenheid vir ander geldeenhede geruil kan word.
Imigomo elawula ezezimali Lena yimigomo elawula ukuthi imali yezwe elithile kumele
ishintshwe kanjani lapho ishintshelwa ezimalini zakwamanye amazwe.
Ulawulo lonaniselwano Ulawulo lonaniselwano yimimiselo eqinisekisa ngendlela imali
yelinye ilizwe enokutshintshelwa ngayo kwimali yamanye amazwe.
ECS1601/1 209
Taolo ya phetolelano Taolo ya phetolelano ke melaotshepedio ye e beago ka moo
thelete ye e itego e ka fetolelanago ka gona le dithelete ta dinaga te dingwe.
Taolo ya dikananyo Taolo ya dikananyo ke melawana e e tlhomamisang gore boleng
jwa madi a a rileng bo amana jang le madi a dinaga tse dingwe.
Exchange rate The exchange rate is the rate at which foreign currencies are exchanged.
The exchange rate therefore represents the price of one currency in terms of another
currency.
Wisselkoers Die wisselkoers is die koers waarteen buitelandse geldeenhede geruil
word. Die wisselkoers verteenwoordig dus die prys van een geldeenheid in terme van
n ander geldeenheid.
Izinga lokushintshiselana Leli yinani lapho kushintshwa imali yamazwe athile. Ngakho
lokhu kumele inani lemali yezwe elithile lapho leyomali iguqulelwa emalini yakwelinye
izwe.
Umgangatho wonaniselwano Umgangatho wonaniselwano ngumgangatho
wokutshintshwa kwemali yamazwe angaphandle. Umgangatho wonaniselwano ke ngoko
umele ixabiso lemali yelizwe ngokubhekiselele kwimali yelinye.
Kelo ya phetolelano Kelo ya phetolelano ke kelo yeo ka yona dithelete ta dinaga ta
ntle di fetolelanago. Ka lebaka leo, kelo ya phetolelano e emela theko ya thelete ye e
itego mabapi le thelete ye nngwe.
Kelo ya kananyo Kelo ya kananyo ke kelo e madi a bodithaba a ananngwang ka yona.
Ka ntlha ya moo kelo ya kananyo e emela tlhotlhwa ya ledi fa le tlhwantshanngwa le ledi
le lengwe.
Expansionary fiscal policy During times of low economic activity and low economic
growth the government can increase government expenditure and reduce taxation to
increase expenditure, production and employment in the economy. This form of fiscal
policy is called expansionary fiscal policy.
Ekspansionistiese fiskale beleid In tye van lae ekonomiese aktiwiteit en lae ekonomiese
groei kan die regering staatsbesteding vergroot en belasting verlaag om so besteding,
produksie en indiensneming in die ekonomie te vergroot. Di vorm van fiskale beleid
staan bekend as ekspansionistiese fiskale beleid.
Umgomo wokwenyusa imali esetshenziswayo inciphise intela Ngezikhathi
zobunzima lapho umnotho untenga ungakhombisi zimpawu zokukhula, uhulumeni
angandisa imali ayichithayo anciphise nentela ngenhloso yokwandisa imali echithwayo,
kwande umkhiqizo namathuba omsebenzi emnothweni.
Lo mgomo wokulawula ezezimali ubizwa nge-expansionary fiscal policy.
Umgaqo-nkqubo wokwanda kwengeniso karhulumente Xa imeko yezoqoqosho
ingentle kwaye neqondo lezoqoqosho lisezantsi, urhulumente angayinyusa inkcitho
karhulumente aze athobe irhafu khona ukuze kunyuke inkcitho, imveliso nengqesho
kuqoqosho. Olu didi lomgaqo-nkqubo wengeniso ubizwa ngokuba ngumgaqo-nkqubo
wokwanda kwengeniso karhulumente.
210 Economics 1B
Leanotshepedio le le katolowago la dithelete Lebakeng la go theoga ga meomo
ya ekonomi le kgolo ya tlase ya ekonomi, mmuo o ka oketa ditshenyagalelo ta wona
gomme wa fokota methelo go oketa tshenyagalelo, tweleto le thwalo ya baomi
ekonoming. Mohuta wo wa leanotshepedio la dithelete o bitwa leanotshepedio le le
katolowago la dithelete.
Taolo ya mmuso ya koketso ya ditshenyegelo Mo nakong ya fa ditiragatso tsa ikonomi
di le kwa tlase, mmuso o ka oketsa ditshenyegelo tsa ona, mme wa fokotsa makgetho
go oketsa ditshenyegelo, dikumo le thapo mo ikonoming. Mokgwa o wa ikonomi ya
ditshenyegelo o itsege jaaka taolo ya mmuso ya koketso ya ditshenyegelo.
Expectations In economics, expectations refers to the ideas of the economic
participants about how the economy will change in the near future. Expectations can
play a role in determining the state of the economy for example, expectations that a
recessionary period will improve can result in higher spending and thus in fact cause the
economic improvement.
Verwagtings In ekonomie verwys verwagtings na die ekonomiese deelnemers se
idees oor hoe die ekonomie in die nabye toekoms gaan verander. Verwagtings kan
meewerk om die toestand van die ekonomie te bepaal; byvoorbeeld, verwagtings
dat n resessie gaan verbeter kan lei tot hor besteding en kan dus in werklikheid die
ekonomiese oplewing veroorsaak.
Okulindelwe Kwezomnotho igama elithi okulindelekile lisho imibono yalabo ababambe
iqhaza kwezomnotho mayelana nezinguquko ezingalindeleka emnothweni esikhathini
esifishane esizayo. Lokho okulindelekile kungaba nomthelela somnotho isibonelo:
ukulindela ukuthi isikhathi sokuntenga komnotho sizodlula kungaba nomphumela
wokuthi ibe ningi imali esetshenziswayo ngaleyo ndlela umnotho ufukuleke.
Okulindelekileyo Ngokwakwezoqoqosho okulindelekileyo kubhekiselele kwizimvo
zabathathinxaxheba kwezoqoqosho ngendlela oluya kutshintsha ngayo uqoqosho
kwakutsha nje. Okulindelekileyo kungadlala indima ekuqinisekiseni ngobume
bezoqoqosho umzekelo: xa kulindeleke okokuba ithuba lokuhla kwezoqoqosho liya
kuphucuka, kungakhokelela ekuchitheni imali kakhulu, nto leyo ngenene ekhokelela
ekuphucukeni koqoqosho.
Ditetelo Ekonoming ditetelo ke dikgopolo ta bakgathatema ba ekonomi ka ga ka moo
ekonomi e tla fetogago mabakeng a a tlago. Ditetelo di ka kgatha tema go kgonthiweng
ga boemo bja ekonomi mohlala ke ge tetelo ya gore lebaka la theogo ya ekonomi le
tla kaonefala le ka ba le dipoelo ta tirio ye kgolwane ya thelete gomme ka tsela yeo la
tlia kaonefalo ya ekonomi.
Ditsholofelo Ditsholofelo mo ikonoming di kaya dikakanyo tsa banni le seabe ba
ikonomi tsa gore ikonomi e tla fetoga jang mo isagwe. Ditsholofelo di ka nna le seabe mo
go tlhomamiseng maemo a ikonomi sekao, tsholofelo ya gore paka ya kwelotlase e tla
tokafala e ka baka tiriso e e kwa godimo ya madi mme seo se bake tokafalo ya ikonomi.
ECS1601/1 211
Externalities Externalities are costs or benefits of an economic activity that are borne
or enjoyed by parties not directly involved in the activity. Negative externalities refer to
transactions where costs are involved, and where there are benefits we refer to these
as positive externalities.
Eksternaliteite Eksternaliteite is koste of voordele van n ekonomiese aktiwiteit
wat gedra of geniet word deur partye wat nie direk by die aktiwiteit betrokke is nie.
Negatiewe eksterne faktore kom voor by transaksies waar koste betrokke is, en waar
daar voordele is, praat ons van positiewe eksterne faktore.
Inzuzo nezindleko kubantu abangaqondene nomsebenzi Lapha kukhulunywa
ngenzuzo etholwa noma izindleko ezithwalwa ngabantu abangaqondene ngqo
nomsebenzi owenziwayo. Lapho kuyisimo esinezindleko sikhuluma nge-negative
externalities kuthi lapho kunenzuzo sikhulume ngepositive externalities.
Iimeko zangaphandle Iimeko zangaphandle kuqoqosho ziindleko okanye izibonelelo
ezisisiqhamo sezoqoqosho ezixhanyulwa ngamaqela angabandakanyekiyo ekuvelisweni
kwazo. Iimeko zangaphandle ezingancumisiyo zibhekiselele kuphatho-mali olubandakanya
iindleko ukuze xa kukho izibonelelo sithi ziimeko zangaphandle ezincumisayo.
Ditwakantle Ditwakantle ke ditshenyagalelo goba dikholego ta moomo wa
ekonomi teo di holago dihlopha teo di sa amanego thwii le moomo woo wa ekonomi.
Ditwakantle te di senyago di ra dipapatiano teo go tona go amegago ditshenyagalelo,
mola e le gore teo di nago le dikholego di hlaloswa bjalo ka ditwakantle ta mohola.
Tsa kwa ntle Tsa kwa ntle ke ditshenyegelo kgotsa dipoelo tse di bonwang kgotsa tse
di itumelelwang ke batho ba ba sa amaneng le ditiro tseo ka tlhamalalo. Tsa kwa ntle tse
di sa amogelesegeng di kaya ditirisano tse di amanang le ditshenyegelo mme fa go na le
dipoelo, re tla re ke ditshenyegelo tse di amogelesegang.
Financial account This is one of the accounts in the balance of payments. International
transactions in financial assets, including the borrowing and lending of funds, are recorded
in the financial account.
Finansile rekening Dit is een van die rekenings in die betalingsbalans. Internasionale
transaksies in finansile bates, insluitend die uitleen en leen van fondse, word in die
finansile rekening aangeteken.
I-akhawunti yemali Lena ngenye yama-akhawunti esilinganisweni senkokhelo. Izindaba
zohwebo lwamazwe omhlaba ezithinta ezezimali, okubandakanya izimali ezibolekiwe
nezibolekisile kubhalwa kuakhawunti yemali.
I-akhawunti yezemali Yenye yee-akhawunti yemali kulungelelwaniso lweentlawulo.
Okwamazwe ngamazwe okuphathelele emalini kuqukwa nemboleko-mali nokubolekiswa
kweengxowa-mali, konke oko kubhalwa kwi-akhawunti yezemali.
Akhaonte ya dithelete Ye ke ye nngwe ya diakhaonte te di lego ka tekatekanong ya
ditefelo.
Dipapatiano ta bodithabathaba dithotong ta dithelete, go akareta go adima le go
adimia dithelete, di ngwalwa akhaonteng ya dithelete.
212 Economics 1B
Tshupatlotlo ya dithelete Eno ke e nngwe ya ditshupatlotlo tsa pharologano ya
kananyo. Ditirisano tsa bodithabathaba mo matlotlong a dithelete go akaretswa go
adima le go adimisa matlole di tlhagisiwa mo tshupatlotlong ya dithelete.
Fixed value When something has a fixed value, its value does not change. A fixed value
is one of the requirements for a medium of exchange.
Vaste waarde Wanneer iets n vaste waarde het, verander die waarde daarvan nie. n
Vaste waarde is een van die vereistes vir n ruilmiddel.
Inani elingaguquki Lokhu kuchaza into enenani elingaguquki. Lona ngomunye
wemibandela yokuthengiselana.
Ixabiso elingatshintshiyo Into enexabiso elingatshintshiyo, yinto exabiso limi
ndawonye. Ixabiso elimiselweyo yenye yezinto eziyimfuneko kunaniselwano.
Boleng bjo bo sa fetogego Ge se sengwe se na le boleng bjo bo sa fetogego, boleng
bja sona ga bo fetoge. Boleng bjo bo sa fetogego ke se sengwe sa dinyakwa ta sediriwa
sa phetolelano.
Bomosola jo bo sa fetogeng Fa sengwe se na le boleng jo bo fetogeng go raya gore
boleng ba sona ga bo fetoge. Boleng jo bo sa fetogeng ke sengwe sa ditlhokego tsa
didirisiwa tsa kananyo.
Foreign direct investment This is direct investment in an economy by foreign
countries, usually by multinational corporations.
Buitelandse direkte investering Dit is direkte investering in n ekonomie deur ander
lande, gewoonlik deur multinasionale maatskappye.
Ukutshalwa kwemali evela emazweni angaphandle Lena yimali etshalwe ngqo
ngamazwe angaphandle emnothweni welinye izwe, ngokujwayelekile lokhu kwenziwa
yizinkampani ezinkulu.
Utyalo-mali lwangaphandle olungqalileyo Olu lutyalo-mali olungqalileyo kuqoqosho
lwamazwe angaphandle, oludla ngokusetyenziswa ngookopolotyeni bamazwe
ngamazwe.
Peeleto ya thwii ya dinaga ta ntle Ye ke peeleto ya thwii ekonoming go twa go
dinaga ta ntle, ganti ka dikoporasi ta dithabathaba.
Dipeeletso tse di tlhamaletseng tsa bodithaba Se ke peeletso e e tlhamaletseng ya
dinaga tsa bodithaba mme ka tlwaelo e diriwa ke mekgatlho ya dithabathaba.
Foreign exchange market This is the market where foreign currencies are bought
and sold.
Valutamark Dit is die mark waarop buitelandse geldeenhede gekoop en verkoop word.
Imakethe yezimali zamazwe angaphandle Lena yimakethe lapho kuthengwa khona
kuphinde kuthengiswe izimali zamazwe angaphandle.
ECS1601/1 213
Imarike yonaniselwano lwangaphandle Le yimarike apho kuthengwa kuthengiswe
khona ngemali yamazwe angaphandle.
Mmaraka wa phetolelano wa dinaga ta ntle Wo ke mmaraka woo go wona
dithelete ta dinaga ta ntle di rekiwago le go rekwa.
Mmaraka wa dikananyo tsa bodithaba Ono ke mmaraka o mo go ona go rekiwang
le go rekisiwa ga madi a bodithaba.
Foreign exchange reserves These are the reserves of foreign exchange (foreign
currencies) of a country, most of which are held at its central bank.
Valutareserwes Dit is n land se reserwes van buitelandse valuta (geld in geldeenhede
van ander lande), waarvan die meeste by die sentrale bank gehou word.
Imali egciniwe yamazwe angaphandle Lena yimali esetshenziswa ngamazwe
angaphandle egcinwe yizwe. Iningi layo ligcinwa yibhangi elikhulu lezwe noma lombuso.
Oovimba bonaniselwano lwangaphandle Aba ngoovimba bonaniselwano lwamazwe
angaphandle (ngemali yangaphandle), ababuninzi babo bugcinwa kwibhanki enkulu.
Maaledi a diphetolelano le dinaga ta ntle A ke maaledi a diphetolelano ta dinaga
ta ntle (dithelete ta dinaga ta ntle) a naga, ao bonti bja wona bo bolokwago ka
pankeng-kgolo a naga yeo.
Madi a kananyo a bodithaba Ano ke madi a kananyo ya bodithaba (madi a bodithaba)
a naga, a bontsi ba ona bo tsholwang ke banka ya bogare.
Formal sector This is the sector of the economy in which economic activities are
performed within an organisational structure and are recorded. The participants that
work in the formal sector pay taxes, and the activities that take place in the sector are
therefore shown in the official statistics of the country. The primary, secondary, tertiary
and quaternary sectors are all part of the formal sector.
Formele sektor Dit is die sektor van die ekonomie waarin ekonomiese aktiwiteite
binne n organisasiestruktuur plaasvind en aangeteken word. Die deelnemers wat in die
formele sektor werk, betaal belasting, en die aktiwiteite wat in die sektor plaasvind word
dus in die land se amptelike statistieke weerspiel. Die primre, sekondre, tersire en
kwaternre sektore is almal deel van die formele sektor.
Umkhakha osemthethweni Lona ngumkhakha wezomnotho lapho yonke into yenzeka
ngendlela ehlelekile futhi ibhalwe phansi. Labo abasebenza kulomkhakha bakhokha
intela kanti yonke imisebenzi eyenziwa kuwo ivezwa ezibalweni zangokomthetho
zezwe. Imikhakha i-primary, i-secondary, i-tertiary kanye ne-quarternary ngeminye yaleyo
esigabeni esihlelekile.
Icandelo elisesikweni Eli licandelo lezoqoqosho apho kwenziwa khona izinto-yinto
zoqoqosho ngokobume bombutho kwaye zibhalwa phantsi. Abathathi-nxaxheba
abasebenza kwicandelo elisesikweni bahlawula irhafu kwaye okwenzekayo kwicandelo
elo kuboniswa kumanani aseburhulumenteni elizwe elichaphazelekayo. Icandelo
lamabanga asezantsi, aphakathi, emfundo ephakamileyo, emfundo yekota, xa ewonke
ayinxalenye yecandelo elisesikweni.
214 Economics 1B
Lekala le e lego la molao Le ke lekala la ekonomi leo go lona meomo ya ekonomi e
dirwago ka gare ga sebopego se se beakantwego, gomme e a ngwalwa. Bakgathatema
ba ba omago ka lekaleng le e lego la molao ba lefa methelo, gomme ditiro te di bago
gona ka lekaleng leo, ka lebaka leo, di laetwa ka dipalopalong ta semmuo ta naga.
Makala a motheo, a bobedi, a boraro le a bone, ka moka ke karolo ya lekala la molao.
Lekala la tshwanelo Le ke lekala la ikonomi le ditiragatso tsa ikonomi di diriwang mo
go lona mo teng ga theo ya mokgatlho le go kwalwa. Banni le seabe ba ba dirang mo
lekaleng la tshwanelo ba duela makgetho mme ditiro tse di diragalang mo lekaleng le, di
bontshiwa mo dipalopalong tsa semmuso tsa naga. Makala a ntlha, a bobedi, a boraro le
a bone ke karolo ya lekala la tshwanelo.
Free riding People are guilty of free riding when they use goods or services without
paying for them for example, when people use public roads without having paid tax.
Teer op ander Mense maak hulleself daaraan skuldig om op ander te teer wanneer
hulle goedere of dienste gebruik sonder om daarvoor te betaal, byvoorbeeld wanneer
hulle openbare paaie gebruik sonder dat hulle belasting betaal het.
Ukusebenzisa izinto mahhala Lokhu kwenziwa ngabantu abangafuni ukukhokhela
impahla kumbe imisebenzi abenzelwe yona isibonelo: uma abantu besebenzisa
imigwaqo kodwa intela bebe bengayikhokhi.
Ukusebenzisa mahala Abantu baba netyala lokusebenzisa mahala xa besebenzisa
impahla okanye iinkonzo abangazihlawulelanga umzekelo: xa abantu besebenzisa
imigaqo kawonkewonke bengahlawuli rhafu.
Tiriofeela Batho ba na le molato wa tiriofeela ge ba diria diphahlo goba ditirelo ntle
le go di lefela mohlala ke ge batho ba diria ditsela ta mang le mang ntle le go lefela
mothelo.
Tiriso ya mahala Batho ba molato ka tiriso ya mahala fa ba dirisa dithoto kgotsa
ditirelo kwa ntle ga go di duelela sekao, fa batho ba dirisa ditsela tsa sethaba kwa ntle
ga gore ba di duelele lekgetho.
Frictional unemployment This is also called voluntary unemployment. This type
of unemployment is not due to conditions in the economy but to peoples personal
decision not to work.
Wrywingswerkloosheid Dit word ook vrywillige werkloosheid genoem. Hierdie
tipe werkloosheid is nie as gevolg van ekonomiese toestande nie, maar van mense se
persoonlike besluit om nie te werk nie.
Ukungasebenzi ngokuzikhethela Ukungasebenzi ngoba umuntu ezikhethele yena
ukuthi akezusebenza. Lesi yisimo sokungasebenzi esingadalwa yizimo zomnotho kodwa
kusuke kube yisinqumo somuntu ukuthi akezusebenza.
Ukungaphangeli ngokuzikhethela Kukwabizwa ngokuba kukungasebenzi
ngokuzithandela. Olu didi lokungaphangeli alubangwa ziimeko ezinkenenkene
kwezoqoqosho, lubangelwa sisigqibo esithathwe ngumntu ngokwakhe sokuba
angaphangeli.
ECS1601/1 215
Go se thwalwe ga boikgethelo Se se bitwa gape go se thwalwe ka boithatelo. Mohuta
wo wa go se thwalwe ga o be gona ka mabaka a ekonomi, eupa ka lebaka la ge batho
ba ikgethete ka bobona gore ga ba nyake go oma.
Botlhokatiro ba kgotlhano Se se bidiwa gape botlhakatiro ba boithaopo. Mohuta o
wa botlhokatiro ga o bakiwe ke maemo mo ikonoming mme o bakiwa ke ditshwetso tsa
batho tsa go sa dire.
Galloping inflation This is a type of inflation that occurs when prices increase at a rate
of two or three figures per annum for example 20%, 100% or 200%.
Wegholinflasie Dit is n tipe inflasie wat voorkom wanneer pryse teen n twee- of
driesyferkoers per jaar styg byvoorbeeld 20%, 100% of 200%.
Ukwehla kwamandla okwenzeka ngokushesha Lokhu wukwehla kwamandla emali
okwenzeka ngezinombolo ngambili noma ngantathu ngonyaka isibonelo u-20%,
u-100%, no-200%.
Unyuko-maxabiso oluphalayo Olu ludidi lonyuko lwamaxabiso olwenzeka xa
amaxabiso enyuka ngomyinge wamanani amabini okanye amathathu ngonyaka
umzekelo, ngama-20%, 100% okanye ngama-200%.
Infleiene ye e katago Infleiene ye e direga ge ditheko di hlatloga ka kelo ya dipalo te
pedi goba te tharo ka ngwaga mohlala e ka ba 20%, 100% goba 200%.
Tlhatlogo ya ka bonako ya ikonomi Ono ke mohuta wa infoleishene o o diragalang fa
ditlhotlhwa di tlhatloga ka kelo ya dipalo di le pedi kgotsa di le tharo ka ngwaga sekao
20%, 100% kgotsa 200%.
GDP at basic prices GDP at basic prices is the amount received by producers from
the buyers of goods and services minus the tax payable, plus subsidies received on these
goods.
BBP teen basiese pryse BBP teen basiese pryse is die bedrag wat produsente van die
kopers van goedere en dienste ontvang het min die belasting betaalbaar, plus subsidies
ontvang op di goedere.
Isamba somkhiqizo wasekhaya (GDP) ngentengo ejwayelekile Leli yinani lemali
etholwe ngabakhiqizi kubathengi ngempahla noma ngomsebenzi owenziwe, kuleli nani
intela isisusiwe kanti kufakwe zonke izimali zoxhaso eziqondene nalezo mpahla.
Amaxabiso asisiseko semveliso yelizwe iyonke (GDP) Amaxabiso asisiseko semveliso
yelizwe iyonke, sisixa esifunyanwa ngabavelisi kubathengi bempahla neenkonzo xa sele
kutsalwe irhafu ehlawulwayo kwaza kwadityaniswa izibonelelo/inkxaso ezifunyanwa
ngezo mpahla.
Ditweletwamoka ta ka gare ga naga (GDP) ka ditheko ta motheo
Ditweletwamoka ta ka gare ga naga ka ditheko ta motheo ke thelete yeo
e amogelwago ke batweleti go twa go bareki ba diphahlo le ditirelo ge go ntwa
mothelo wo o lefago, go hlakanywa le dithuo teo di amogetwego diphahlong teo.
216 Economics 1B
Palogotlhe ya dikumo tsa naga (GDP) ditlhotlhweng tsa theo GDP mo
ditlhotlhweng tsa theo ke palo e e amogelwang ke batlhagisi go tswa mo bareking ba
dithoto le ditirelo go ntshiwa lekgetho le le duelwang mme go tlhakanngwa le diketleetso
tse di amogetsweng mo dithotong tse.
GDP at factor cost GDP at factor cost simply means that the remuneration of the four
factors of production is included in the GDP. GDP at factor cost views total production
from the perspective of the income earned by the factors of production.
BBP teen faktorkoste BBP teen faktorkoste beteken bloot dat die vergoeding aan die
vier produksiefaktore in die BBP ingesluit word. BBP teen faktorkoste beskou totale
produksie uit die perspektief van die inkomste deur die produksiefaktore verdien.
Isamba somkhiqizo wasekhaya (GDP) ngokwenani labathintekayo Lokhu kusho
ukuthi imali eqondene nokukhokhela izidingo ezine zokukhiqiza isifakiwe kwi-GDP.
Ngamanye amazwi ithatha uhlelo lonke lokukhiqiza ngasohlangothi lwemali engeniswe
yizidingo zokukhiqiza.
Imveliso yelizwe iyonke (GDP) ngexabiso labachaphazelekayo Oku kuthetha
ukuba umvuzo weemeko ezine ezichaphazeleka kwimveliso ufakiwe kwimveliso yelizwe
iyonke. Imveliso yelizwe iyonke ngexabiso labachaphazelekayo iyijonga imveliso iyonke
kwinkalo yengeniso ezuzwa kwiimeko zoshishino ezichaphazeleka kwimveliso.
Ditweletwamoka ta ka gare ga naga (GDP) ka ditshenyagalelo ta didiriwa
Ditweletwamoka ta ka gare ga naga ka ditshenyagalelo ta didiriwa ke gore tefelo ya
didiriwa te nne ta tweleto e akaretwa ditweletweng-moka ta ka gare ga naga.
Ditweletwamoka ta ka gare ga naga ka ditshenyagalelo ta ditweletwa di lebelela
tweletomoka go ya ka ditseno te di amogetwego ke didiriwa ta tweleto.
Palogotlhe ya dikumo tsa naga (GDP) mo lebakeng la tshenyegelo GDP mo
lebakeng la tshenyegelo e kaya fa moputso wa mabaka a mane a tlhagiso o akareditswe
mo GDP. GDP mo lebakeng la tshenyegelo e kaya palogotlhe ya tlhagiso mo letsenong le
le dirilweng ke mabaka a tlhagiso.
GDP at market prices GDP at market prices is all the expenditure necessary to get
everything that is produced on the shelf.
BBP teen markpryse BBP teen markpryse is al die besteding wat nodig is om alles wat
geproduseer word op die rak te kry.
Isamba somkhiqizo wasekhaya (GDP) ngokwentengo yasemakethe Lapha
kukhulunywa ngemali okumele isetshenziswe ukuze konke lokho okukhiqizwayo
kufinyelele lapho kuzodayiswa khona.
Amaxabiso emarike emveliso yelizwe iyonke (GDP) Amaxabiso emarike emveliso
yelizwe iyonke yinkcitho ethi ibekho ngokubekwa kwayo yonke imveliso kumathala
(khona ukuze ibe nokubonwa ithengwe ngabathengi).
ECS1601/1 217
Ditweletwamoka ta ka gare ga naga (GDP) ka ditheko ta mmaraka
Ditweletwamoka ta ka gare ga naga ka ditheko ta mmaraka ke ditshenyagalelo ka
moka te di nyakegago go dira gore dilo ka moka te di tweletwago di be mafelong a
borekieto.
Palogotlhe ya dikumo tsa naga (GDP) mo ditlhotlhweng tsa mmaraka GDP mo
ditlhotlhweng tsa mmaraka ke ditshenyegelo tsotlhe tse di botlhokwa go bona sengwe
le sengwe se se tlhagisiwang mo rakeng.
GDP per capita GDP per capita means GDP per person. It is the average amount
produced by each member of the population. It is calculated by dividing the total
production (GDP) by the total population.
BBP per capita BBP per capita beteken BBP per persoon. Dit is die gemiddelde
hoeveelheid wat deur elke lid van die bevolking geproduseer is. Dit word bereken deur
die totale produksie (BBP) deur die totale bevolking te deel.
Isamba somkhiqizo wasekhaya (GDP) somuntu ngamunye Lokhu kusho i-GDP
yomuntu ngamunye. Leli yinani elisendimeni lomkhiqizo womuntu ngamunye. Ulithola
ngokwehlukanisa ubungako bomkhiqizo ngesibalo sabantu balelozwe.
Imveliso yelizwe iyonke (GDP) ngentloko Yimveliso yelizwe iyonke ngentloko
yomntu (ngomntu ngamnye). Ngumyinge wesixa-mali esenziwa ngumntu ngamnye
elizweni. Ubalwa ngokuthi kwahlulwe imveliso (yangaphakathi) iyonke ngenani labantu
bonke.
Ditweletwamoka ta ka gare ga naga (GDP) ka motho Ye ke kelo ya magareng
ye e tweletwago ke leloko le lengwe le le lengwe la sethaba. E humanwa ka go arola
tweletomoka ka (GDP) ka palomoka ya sethaba.
Palogotlhe ya dikumo tsa naga (GDP) go ya ka khepita GDP go ya ka khepita e kaya
GDP go ya ka motho. Ke palogare ya kgoboko e e tlhagisitsweng ke tokololo nngwe le
nngwe ya sethaba. E badiwa ka go aroganya palogotlhe ya tlhagiso (GDP) le palogotlhe
ya sethaba.
General acceptability When something has general acceptability, it means that
everybody accepts it. General acceptability is one of the requirements of a medium for
exchange.
Algemene aanvaarbaarheid Iets het algemene aanvaarbaarheid wanneer almal dit
aanvaar. Algemene aanvaarbaarheid is een van die vereistes vir n ruilmiddel.
Okuthathwa ngokuthi kwamukelekile Lapha kukhulunywa ngento okuthathwa
ngokuthi wonke umuntu uyayemukela. Lona kuba ngomunye wemibandela
ekuthengiselaneni.
Ukwamkeleka gabalala Xa into isamkeleka gabalala, loo nto ithetha ukuba yamkeleke
kumntu wonke. Ukwamkeleka gabalala yenye yezinto eziyimfuneko kunaniselwano.
Kamogelego ya kakareto Ge selo se amogelwa ka kakareto, go ra gore motho ofe
le ofe o a se amogela. Kamogelego ya kakareto ke ye nngwe ya dinyakwa ta seo se ka
diriwago bjalo ka phetolelano.
218 Economics 1B
Kamogelo ya kakaretso Fa sengwe se amogelesega ka kakaretso go raya gore mongwe
le mongwe o a se amogela. Kamogelo ya kakaretso ke nngwe ya ditlhokego tsa tsela ya
thefosano.
Gold and other foreign reserves Gold and other foreign reserves (currencies) are
held by the countrys central bank to ensure that the country has a reserve of money.
In the balance of payments, gold and other foreign reserves is a total that reflects the
overall position of the countrys balance of payments. If this total is negative, the country
has spent more money than it actually possesses, and if it is positive, the country still
possesses more money than it has spent.
Goud en ander buitelandse reserwes Goud en ander buitelandse reserwes (valuta)
word deur die land se sentrale bank gehou om te verseker dat die land n geldreserwe
het. In die betalingsbalans is goud en ander buitelandse reserwes n bedrag wat die
algehele posisie van die land se betalingsbalans verteenwoordig. As hierdie bedrag
negatief is, het die land meer bestee as wat hy werklik besit, en as die bedrag positief is,
besit die land nog meer geld as wat hy bestee het.
Igolide nezimali zakwamanye amazwe okugciniwe Lokhu kusho igolide nezimali
zakwamanye amazwe ezigodlwe yibhangi elikhulu lezwe noma lombuso ukuqinisekisa
ukuthi izwe linayo imali egciniwe. Igolide kanye nezimali ezigciniwe yikona okunika
isimo sezwe esilinganisweni senkokhelo. Uma kunegative lokho kusho ukuthi izwe
lichithe imali eningi kunaleyo elinayo kanti uma ku-positive lokho kusho ukuthi izwe
lenemali eningi kunaleyo eliyisebenzisile.
Igolide nabanye oovimba bangaphandle Igolide nabanye oovimba bangaphandle
(ubume bemali) bagcinwa yibhanki enkulu yelizwe elo ukuqinisekisa ukuba ilizwe
ngalinye linaye uvimba wemali. Ngokomlinganiselo wentlawulo, igolide nabanye
oovimba bangaphandle linani elipheleleyo elibonisa imali yelizwe iyonke. Ukuba inani
lemali yelizwe elo alilihlanga kwaphela, oko kuthetha ukuba ilizwe lisebenzise imali eninzi
kunemali elinayo, ukuze ukuba inani lihle, oko kuthethe ukuba ilizwe linemali eninzi
ngaphezu kwaleyo liyisebenzisileyo.
Gauta le maaledi a mangwe a dinaga diele Gauta le maaledi a mangwe a dinaga
diele (dithelete) di swarwa ke pankakgolo ya naga go kgonthia gore naga e ba le
maaledi a thelete. Tekatekanong ya ditefelo gauta le maaledi a mangwe a dinaga
diele ke palomoka ye e laetago maemo ka kakareto a tekatekano ya ditefelo ta naga.
Ge palomoka ye e le yeo e sa kgahliego, naga e tla be e diriite thelete ya go feta yeo
e nago le yona, gomme ge e le yeo e kgahliago, naga e tla be e sa na le thelet e ya go
feta ye e e diriitego.
Gouta le dirasefe tse dingwe tsa bodithaba Gouta le dirasefe tse dingwe tsa
bodithaba (dithelete) di tsholwa ke banka ya bogare ya naga go babalela gore naga
e na le madi a rasefe. Mo pharologanong ya kananyo, gouta le dirasefe tse dingwe tsa
bodithaba ke palogotlhe e e supang maemo ka kakaretso a pharologano ya kananyo ya
naga. Fa palogotlhe e sa amogelesege, naga e a bo e dirisitse madi a mantsi go na le a e
nang le ona mme ga e amogelesega, naga e a bo e santse e na le madi a mantsi go na le
a e a dirisitseng.
ECS1601/1 219
Government stocks Government stocks are securities that are issued by the
government and earn a fixed interest.
Staatseffekte Staatseffekte is sekuriteite wat deur die regering uitgereik word en vaste
rente verdien.
Izibambiso zikahulumeni Izibambiso zikahulumeni zisho lezo ziqinisekiso ezikhishwa
nguye uhulumeni nezithola inzalo enqunyiwe.
Imali-mboleko karhulumente Zizibambiso ezikhutshwa ngurhulumente nathi azuze
inzala esisigxina ngazo.
Dilotwa ta mmuo Dilotwa ta mmuo ke ditiieleto te di nthwago ke mmuo
gomme di hweta leokoto le le sa fetogego.
Matlole otlhe a mmuso Matlole otlhe a mmuso ke dipeeletso tse di rebolwang ke
mmuso mme di bona tsalo e e tlhomamisitsweng.
Gross domestic expenditure The gross domestic expenditure (GDE) of a country
in a particular year is all the payments made by that country during that year. The total
value of these payments is equal to the value of total production within the borders of
the country during the year.
Bruto binnelandse besteding Die bruto binnelandse besteding (BBB) van n land in n
bepaalde jaar is al die betalings wat in di jaar deur die land gedoen is. Dit totale waarde
van hierdie betalings is gelyk aan die waarde van totale produksie binne die grense van
die land in die betrokke jaar.
Izimali ezichithwe yizwe (GDE) Izimali ezichithwe yizwe (GDE) ngonyaka othile,
zisho zonke izimali ezikhokhwe yizwe ngalowo nyaka. Inani lalezi mali ezikhokhwayo
lilingana nenani lomkhiqizo uwonke ngaphakathi kwemingcele yezwe ngalowo nyaka.
Inkcitho yelizwe iyonke (GDE) Inkcitho yelizwe iyonke (GDE) ngonyaka zizo zonke
iintlawulo ezenziwe lelolizwe kuloo nyaka. Ixabiso lilonke lentlawulo lilingana nexabiso
lemveliso yelizwe ngonyaka.
Ditshenyagalelomoka ta ka gare ga naga (GDE) Ditshenyagalelomoka ta ka gare
ga naga (GDE) ngwageng wo o itego ke ditefelo ka moka te di dirwago ke naga yeo
ngwageng woo. Moholamoka wa ditefelo te o lekana le boleng bja tweletomoka ka
gare ga mellwane ya naga ngwageng.
Palogotlhe ya ditshenyegelo tsa selegae (GDE) Palogotlhe ya ditshenyegelo tsa
selegae (GDE) tsa naga mo ngwageng o o rileng ke dituelo tsotlhe tse di dirilweng ke
naga eo mo tsamaong ya ngwaga oo. Palogotlhe ya boleng ba dituelo tse e lekana le
boleng ba palogotlhe ya tlhagiso mo teng ga melelwane ya naga mo tsamaong ya ngwaga.
Gross domestic product The gross domestic product (GDP) of a country in a particular
year is the market value of all final goods and services produced within the borders of
the country during that year, and the value that is calculated includes the value of fixed
capital that has been consumed. GDP is equal to gross domestic expenditure, GDE.
220 Economics 1B
Bruto binnelandse produk Die bruto binnelandse produk (BBP) van n land in n
bepaalde jaar is die markwaarde van alle finale goedere en dienste wat in die betrokke
jaar binne die grense van die land geproduseer is, en die waarde wat bereken word
sluit die waarde in van vaste kapitaal wat verbruik is. BBP is gelyk aan bruto binnelandse
besteding, BBB.
Isamba somkhiqizo wasekhaya (i-GDP) I-GDP yezwe ngonyaka othile, isho inani
okungathengiswa ngalo impahla kukhokhelwe nemisebenzi eyenziwe ngaphakathi
kwemingcele yezwe ngalowo nyaka, kanti kuleli nani kufakwa inan lempahla
onesiqiniseko sayo edlekile. Isamba somkhiqizo wasekhaya (i-GDP) siyalingana nenani
lemali esetshenziswe yizwe (i-GDE).
Imveliso yelizwe iyonke (GDP) Imveliso yelizwe iyonke ngonyaka othile, lixabiso
lemarike yayo yonke impahla neenkonzo zelolizwe ngonyaka ochaphazelekayo, kwaye
ixabiso elibalwayo liquka nexabiso lemali engatshintshiyo esetyenzisiweyo. Imveliso
yelizwe iyonke (GDP) ilingana nenkcitho yelizwe iyonke (GDE).
Ditweletwamoka ta ka gare ga naga (GDP) Ditweletwamoka ta ka gare ga
naga ngwageng wo o itego, ke boleng bja mmaraka wa diphahlo ka moka te di feletego
le ditirelo te di tweleditwego ka gare ga mellwane ya naga ngwageng woo gomme
boleng bjo bo balwago bo akareta boleng bja kapetlele ye e sa fetogego ye e diriitwego.
Ditweletwamoka ta ka gare ga naga (GDP) di lekana le ditshenyagalelomoka ta ka
gare ga naga (GDE).
Palogotlhe ya dikumo tsa naga Palogotlhe ya dikumo tsa naga (GDP) mo ngwageng
o o rileng ke boleng ba mmaraka ba dithoto tsotlhe tse di feletseng le ditirelo tse di
tlhagisitsweng mo teng ga melelwane ya naga mo tsamaong ya ngwaga mme boleng bo
bo balelwang bo akaretsa boleng ba letlotlo le le tlhomamisitsweng le le dirisitsweng.
GDP e lekana le palogotlhe ya ditshenyegelo tsa selegae, GDE.
Gross national product (GNP) GNP is the total value of final goods and services
produced during a specific period by the permanent residents (citizens) of a country,
whether in the country or abroad, before the consumption of capital is considered.
Bruto nasionale produk (BNP) Die BNP is die totale waarde van finale goedere en
-dienste wat tydens n bepaalde tydperk deur die permanente inwoners (burgers) van
n land, hetsy in die land of in die buiteland, geproduseer is, voordat die verbruik van
kapitaal in aanmerking geneem word.
Isamba somkhiqizo kazwelonke (GNP) Lokhu kusho inani lomkhiqizo noma
lemisebenzi owenziwe esikhathini esithile wenziwa yizakhamuzi ezinobuzwe baphakade
kulelozwe okungabe ziwenze ngaphakathi kwezwe noma emazweni aphesheya, lapha
kusuke kungakabhekwa ukudlela kwalokho obekudingeka ebhizinisini.
Imveliso yesizwe (GNP) Imveliso yesizwe lixabiso lilonke lempahla neenkonzo ezenziwa
ngexesha elithile ngabemi abasisigxina belolizwe, nokuba yenzelwa ngaphakathi okanye
kwamanye amazwe, phambi kokuba kuqwalaselwe ukusetyenziswa kwemali.
Ditweletwamoka ta bosethaba (GNP) Ditweletwamoka ta bosethaba ke
boleng-moka bja diphahlo te di feletego le ditirelo te di tweleditwego lebakeng le
le itego ke badudi ba lebaka ka moka ba naga, e ka ba ka nageng ye goba ka dinageng di
ele, pele ga ge tirio ya kapetlele e ka elwa hloko.
ECS1601/1 221
Palogotlhe ya kumo tsa bosethaba (GNP) GNP ke boleng botlhe ba dithoto tse di
feletseng le ditirelo tse di tlhagisitsweng mo nakong ya paka e e rileng ke baagi ba leruri
(banni) ba naga, e ka nna mo nageng kgotsa kwa moseja pele go tsewa tsia tiriso ya
letlotlo.
Headline inflation This is a consumer price index (CPI) figure that takes into account
prices in metropolitan areas only (i.e. prices in other urban areas and rural areas are
disregarded).
Hooflyninflasie Dit is n verbruikersprysindeks-syfer (VPI-syfer) wat slegs pryse in
metropolitaanse gebiede in ag neem (met ander woorde, pryse in ander stedelike
gebiede en plattelandse gebiede word verontagsaam).
Ukwehla kwamandla emali emadolobheni amakhulu Lena yinkomba yamanani
omthengi (CPI) okubhekwa kuyo amanani empahla emadolobheni amakhulu kuphela
(okuwukuthi amanani empahla emadolobheni amancane kanye nasezindaweni
zasemakhaya awanakwa).
Isalathiso sonyuko-maxabiso Linani elisisalathiso sexabiso lomthengi (CPI) eliye
lithathele ingqalelo amaxabiso akumahlumela-dolophu kuphela (okokukuthi amaxabiso
akweminye imimandla yasezidolophini neyasemaphandleni akahoywa).
Infleiene ya tabakgolo Ye ke palo ya thupane ya ditheko ta badirii (CPI) ye e
elago hloko ditheko ka mafelong a ditoropokgolo feela (ke gore ditheko ta mafelong a
mangwe a ditoropo le ta ka mafelong a segae di a hlokomologwa).
Setlhogo sa infoleiene Se ke palo ya tshupane ya tlhotlhwa ya modirisi (CPI) e e
tsayang tsia ditlhotlhwa tsa dikgaolo tsa setoropo fela (go raya gore ditlhotlhwa tsa
dikgaolo tse dingwe tsa metsesetoropo le dikgaolo tsa lenaga di a kgathologiwa).
Human capital This is the quality of labour of a labour force, that is, the level of skills
and knowledge of the workers.
Mensekapitaal Dit is die kwaliteit van arbeid in n arbeidsmag, d.w.s. die vlak van die
werkers se vaardighede en kennis.
Ikhono labasebenzi Leli yizinga lomsebenzi owenziwa ngabasebenzi bakho, okuwukuthi
izinga lamakhono kanye nolwazi abasebenzi bakho abanalo.
Isakhono sabasebenzi Ngumgangatho womsebenzi wabasebenzi, okokukuthi
umgangatho wesakhono nolwazi lwabasebenzi.
Kapetlele ya batho Ke boleng bja moomo wa baomi, ke gore boleng bja mabokgoni
le tsebo ta baomi.
Letlotlo la setho Se ke boleng ba tiro ya badiri go raya gore maemo a bokgoni le kitso
ya badiri.
222 Economics 1B
Human development Human development in a country is the development of a
countrys human potential and involves improvements in health, nutrition and education,
and a reduction of population growth. Human development is the most important means
of stimulating a countrys economic development.
Mensontwikkeling Mensontwikkeling in n land is die ontwikkeling van n land se
mensepotensiaal en behels verbeterings in gesondheid, voeding en onderwys, en n
stadiger bevolkingsgroei. Mensontwikkeling is die belangrikste manier om n land se
ekonomiese ontwikkeling te stimuleer.
Ukuthuthukiswa kwezakhamuzi Lokhu kusho ukuthuthukiswa kwezakhamuzi zezwe
kanti kubandakanya ukwenziwa ngcono kwezempilo, ukutholakala kwezakhamzimba,
ukuthuthukiswa kwezemfundo kanye nokunciphisa ukuzalana kwabantu. Ukuthuthukiswa
kwezakhamuzi kungenye yezindlela ezibalulekile kakhulu ekukhuliseni umnotho.
Uphuhliso lwabasebenzi Uphuhliso lwabasebenzi kwilizwe ngalinye, luphuhliso
lwezakhono zabasebenzi kwaye luquka ukuphuculwa kwempilo, kwesondlo, imfundo
nokuncitshiswa kokwanda koluntu. Uphuhliso lwabasebenzi yeyona ndlela ibalulekileyo
yokukhulisa uphuhliso loqoqosho.
Tlhabollo ya batho Tlhabollo ya batho ka nageng ke tlhabollo ya bokgoni bja batho
gomme e ama dikaonefato maphelong, phepong le thutong le phokoto ya kgolo ya
thari. Tlhabollo ya batho ke mokgwa wo bohlokwahlokwa wa go hlohleleta tlhabollo
ya ekonomi ya naga.
Tlhabololo ya setho Tlhabololo ya setho mo nageng ke tlhabololo ya kgono ya setho
ya naga, mme e ama tokafatso ya boitekanelo, dikotla le thuto, le phokotso ya kgolo
ya sethaba. Tlhabololo ya setho ke mokgwa o o botlhokwa thata wa go tsosolosa
tlhabololo ya ikonomi ya naga.
Hyperinflation This is a type of inflation where prices increase by a thousand or even a
million percent per year, and money becomes useless.
Hiperinflasie Dit is n tipe inflasie waartydens pryse teen n duisend of selfs n miljoen
persent per jaar styg, en geld nutteloos word.
Ukwehla kwamandla emali okwedlulele Lokhu wukwehla kwamandla emali lapho
amanani enyuka khona ngamaphesenti ayinkulungwane noma ayisigidi ngonyaka, lesi
simo sithatha senze imali ingabi namsebenzi.
Unyuko-maxabiso olugabadeleyo Olu ludidi lonyuko lwamaxabiso apho amaxabiso
anyuka ngewaka okanye ngesigidi ekhulwini ngonyaka, ukuze imali ingabinaxabiso.
Infleienekgolo Wo ke mohuta wa infleiene moo ditheko di hlatlogago ka persente ya
sekete goba le ge e ka ba ka ya milione ka ngwaga, gomme thelete e hloka mohola.
Infoleishene e e tlhatlogang ka bonako Ke infoleiene e ditlhotlhwa di oketsegang ka
diphesente di le sekete kgotsa di le milione ka ngwaga, mme ga e nne mosola.
ECS1601/1 223
Imperfect competition Imperfect competition occurs when any one buyer or any
seller is able to influence the price. An imperfectly competitive market is thus a market
on which there is not perfect competition in other words, prices are not set solely by
the interaction of supply and demand, and it may be difficult for new sellers to enter the
market. Monopolies and oligopolies are examples of imperfectly competitive markets.
Onvolmaakte mededinging Onvolmaakte mededinging kom voor wanneer enige
individuele koper of verkoper die prys kan benvloed. n Onvolmaak mededingende
mark is dus n mark waar daar nie volmaakte mededinging is nie met ander woorde,
pryse word nie alleenlik vasgestel deur die wisselwerking tussen vraag en aanbod nie,
en dit mag vir nuwe verkopers moeilik wees om die mark te betree. Monopolie en
oligopolie is voorbeelde van onvolmaak mededingende markte.
Ukuncintisana okungenabuqotho Lokhu kwenzeka lapho kunomthengi kumbe
umthengisi okwazi ukulawula inani lempahla. Uma kukhulunywa ngemakethe
enokwenzelela kukhulunywa ngamakethe engenako ukuncintisana ngendlela enobuqotho
ngamanye amazwi, amanani kawanciki nje kuphela ekutheni singakanani isidingo
namathuba okutholakala kwempahla kanti lokhu kungenza kube nzima kubathengisi
abasha ukuba bakwazi ukungena bazibandakanye emakethe. Ukunikwa kwegunya
enkampanini eyodwa ukuba yenze umsebenzi kuyisibonelo semakethe engenabo
ubuqotho.
Ukhuphiswano olungasulungekanga Ukhuphiswano olungasulungekanga
lwenzeka xa nawuphi na umthengi okanye umthengisi enakho ukuphembelela ixabiso.
Imarike ekhuphisana ngokungasulungekanga yimarike apho kungekho khuphiswano
lusulungekileyo khona -ngamanye amazwi, amaxabiso akabekwa kuphela ngokwemveliso
nemfuneko yayo, kwaye xa kunjalo kunganzima ukuba abathengisi abatsha babenokungena
kwimarike. Ukwalela abanye ekuthatheni inxaxheba kurhwebo, kulawulo okanye
kwinkonzo nokhuphiswano olunemiqathango kwimveliso ezincinane okanye abathengisi
abancinane, yimizekelo yeemarike ezinokhuphiswano olungenantsulungeko.
Phadiano ye e sa phethagalago Phadiano ye e sa phethagalago e direga ge moreki
ofe goba ofe o tee goba morekii ofe goba ofe o tee a kgona go hueta theko. Mmaraka
wa phadiano ye e sa phethagalago, ka lebaka leo, ke mmaraka woo go wona go se
nago phadiano ye e phethagetego ka mantu a mangwe, ditheko ga di bewe feela ke
phetolelano ya nyakego le kabo, gomme go ka ba thata go barekii ba baswa go tsena
mmarakeng. Dikgwebonoi le dikgwebonyane ke mehlala ya mebaraka ye e nago le
phadiano ye e sa phethagalago.
Kgaisano e e sa lolamang Kgaisano e e sa lolamang e diragala fa moreki mongwe kgotsa
morekisi mongwe a kgona go tlhotlheletsa tlhotlhwa. Ka jalo mmaraka wa kgaisano e e
sa lolamang ke o go senang kgaisano e e lolameng mo go ona ka mantswe a mangwe,
ditlhotlhwa ga di tlhongwe fela ke kgokagano ya tlamelo le topo, mme go ka nna boima
mo barekising ba ba ntshwa go tsena mo marakeng. Kgwebonosi le kgwebo ya madirelo
a magolo a mmalwa ke dikao tsa mebaraka ya kgaisano e e sa lolamang.
Import quota An import quota is a quantitative restriction on imports, in other words,
when there is an import quota only a certain quantity of a product may be imported
during a specific period.
224 Economics 1B
Invoerkwota n Invoerkwota is n kwantitatiewe beperking op invoere. Met ander
woorde, as daar n invoerkwota is, mag slegs n sekere hoeveelheid van n produk in n
spesifieke tydperk ingevoer word.
Isilinganiso sempahla engathengwa emazweni angaphandle Lona ngumbandela
wenani lempahla engathengwa emazweni angaphandle, ngamanye amazwi uma
kubekwe lo mbandela kuba yinani elithile kuphela lempahla engathengwa ivela emazweni
angaphandle esikhathini esinqunyiwe.
Uqingqo lwempahla engenayo Uqingqo lwempahla engenayo sisithintelo somyinge
wempahla engena elizweni, ngamanye amazwi, oku kuthetha ukuba ngumyinge
wemveliso onga kuphela ovumelekileyo ukuba ungangena ngaphakathi elizweni ngexesha
elithile.
Tekaneto ya ditwantle Tekaneto ya ditwantle ke mellwane ye e beelwago kelo ya
ditwantle, ka mantu a mangwe, ge go na le tekaneto ya ditwantle ke kelo ye e itego
feela ya setweletwa seo se ka tliwago ka nageng lebakeng le le itego.
Karololelo ya diromelwateng Karololelo ya diromelwateng ke thibelo e e tlhophegileng
ya diromelwateng, ka mantswe a mangwe, fa go na le karololelo ya diromelwateng go ka
romelwateng bogolo jo bo rileng fela jwa kumo mo pakeng e e rileng.
Import substitution Import substitution refers to efforts to reduce imports, in other
words to persuade consumers to buy local rather than imported products. Import
substitution is a demand factor that can stimulate economic growth.
Invoervervanging Invoervervanging verwys na pogings om invoere te verminder, dit
wil s om verbruikers te oortuig om plaaslike eerder as ingevoerde produkte te koop.
Invoervervanging is n vraagfaktor wat ekonomiese groei kan stimuleer.
Ukuthengwa kwempahla yasekhaya Lokhu kusho imizamo yokunciphisa impahla
ethengwa emazweni angaphandle. Lapha kwenziwa imizamo yokukhuthaza umphakathi
ukuba uthenge impahla eyenziwe ezweni lawo kunokuthi ithenge impahla eyenziwe
emazweni angaphandle. Le ndlela ingenye kulezo ezingasiza ekukhuliseni umnotho.
Intengo yezekhaya Intengo yezekhaya kukuthengiswa kwemveliso yelizwe kubemi balo
endaweni yokuthengiswa kwemveliso yangaphandle. Ngamanye amazwi, kukukhuthaza
ukuthengwa kwemveliso yasekhaya kuneyamanye amazwe. Intengo yezekhaya yimfuno
enokukhokelela ekuhlumeni koqoqosho.
Kemelo ya setwantle Kemelo ya setwantle e ra matsapa ao a tewago go fokota
ditwantle, ka mantu a mangwe, go rapeleta badirii gore ba reke ditweletwa ta
gae go ena le teo di twago ka dinageng ta ntle. Kemelo ya setwantle ke sediriwa sa
senyakwa seo se ka hlohleletago kgolo ya ekonomi.
Kemisetso ya diromelwateng Kemisetso ya diromelwateng e kaya maiteko a go
fokotsa diromelwateng ka go tlhotlheletsa badirisi go reka tsa selegae go na le dikumo
tse di tswang ntle.
Kemisetso ya diromelwateng ke lebaka la topo le le ka tsosolosang kgolo ya ikonomi.
ECS1601/1 225
Import tariff An import tariff is a duty or tax that an importer has to pay when he or
she imports products into a country.
Invoertarief n Invoertarief is n belasting wat n invoerder moet betaal wanneer hy of
sy produkte in n land invoer.
Intela yempahla ethengwe ngaphandle Lena yintela lowo othenge impahla kwelinye
izwe ayikhokhayo lapho ethenga impahla evela kwamanye amazwe.
Irhafu yempahla engenayo Yirhafu ehlawulwa ngulowo uthumela impahla xa ethumela
impahla kwelinye ilizwe.
Mothelo wa ditwantle Mothelo wa ditwantle ke mothelo wo motho a o lefelago
ge a tsenya dithoto ka nageng ye, go twa ka dinageng ta ntle.
Kelotefo ya diromelwateng Kelotefo ya diromelwateng ke lekgetho le moromelateng
a tshwanetseng a le duela fa a romelateng dikumo mo nageng.
Income A persons income is what he or she has earned during a specific period, such
as a week, a month, or a year. It is the remuneration (reward) for the application of the
production factors (natural resources, capital, labour and entrepreneurship).
Inkomste n Persoon se inkomste is wat hy of sy in n bepaalde tydperk, soos n
week, n maand of n jaar, verdien het. Dit is die vergoeding vir die aanwending van die
produksiefaktore (natuurlike hulpbronne, kapitaal, arbeid en entrepreneurskap).
Imali engenayo Lena yimali etholwa ngumuntu esikhathini esithile, okungaba ngesonto,
ngenyanga noma ngonyaka. Lena yindlela yokukhokhela esimeni lapho kusebenze khona
izidingo zokukhiqiza (okuyimithombo yendalo, impahla yokuqhuba ibhizinisi, abasebenzi
kanye nokuthengisa).
Ingeniso Yiloo nto umntu ayifumanayo ngethuba elithile, umzekelo; ngeveki, ngenyanga
okanye ngonyaka. Ngumvuzo avuzwa ngawo umntu ngenxaxheba yakhe kwimveliso
(enjengemithombo yendalo, imali, umsebenzi noshishino).
Ditseno Ditseno ta motho ke seo a se hweditego lebakeng le le itego, go swana le
beke, kgwedi goba ngwaga. Ke moputso wa tirio ya didiriwa ta tweleto (mehlodi ya
tlhago), kapetlele, baomi le bogwebi).
Letseno Letseno la motho ke se a se amogetseng mo nakong ya paka e e rileng jaaka
beke, kgwedi kgotsa ngwaga. Ke moputso (tuelo) wa tiragatso ya mabaka a tlhagiso
(metswedi ya tlhago, letlotlo, tiro le bopakakgwebo).
Income payments This is an item in the current account of the balance of payments. It
refers to income earned by non-citizens within South Africa.
Inkomstebetalings Dit is n inskrywing in die lopende rekening van die betalingsbalans.
Dit verwys na inkomste wat verdien is deur nieburgers binne die grense van Suid-Afrika.
Ukukhokhwa kwamaholo Leli ngelinye lamaphuzu e-akhawuntini yamasheke
yesilinganiso senkokhelo. Kusho imali etholwe ngabantu abangezona izakhamuzi
zaseNingizimu Afrika.
226 Economics 1B
Intlawulo yengeniso Ngumba we-akhawunti yemali kulungelelwaniso lweentlawulo.
Ubhekiselele kwingeniso efunyanwa ngabantu abangengobemi beli loMzantsi-Afrika.
Ditefelo ta ditseno Ye ke hlogwana akhaonteng ya moela ya tekatekano ya ditefelo. E
upeta go ditseno te di hweditwego ke batho bao e sego badudi ba Afrika Borwa bao
ba lego ka nageng ye.
Dituelo tsa letseno Se ke ntlha mo tshupatlotlong ya kelelo ya pharologano ya kananyo.
E kaya letseno le le amogetsweng ke bao e seng baagi mo teng ga Aforika Borwa.
Income receipts This is an item in the current account of the balance of payments. It
refers to income earned by South African citizens in the rest of the world.
Inkomste-ontvangste Dit is n inskrywing in die lopende rekening van die betalingsbalans.
Dit verwys na inkomste wat verdien is deur Suid-Afrikaanse burgers in die res van die
wreld (d.w.s. in ander lande as Suid-Afrika).
Amaholo emukelwe Leli ngelinye lamaphuzu e-akhawuntini yesheke yesilinganiso
senkokhelo. Kusho imali etholwe ngabantu abayizakhamuzi zaseNingizimu Afrika
abakwezinye izingxenye zezwe.
Ingeniso efunyanwayo Ngumba we-akhawunti yemali kulungelelwaniso lweentlawulo.
Ubhekiselele kwingeniso efunyanwa ngabemi beloMzantsi-Afrika kumazwe ehlabathi
liphela.
Dikamogelo ta ditseno Ye ke hlogwana ka akhaonteng ya moela ya tekatekano ya
ditefelo. E upeta go ditseno te di hweditwego ke badudi ba Afrika Borwa ka dinageng
te dingwe ka moka ta lefase.
Tshupatefo ya letseno Se ke ntlha mo tshupatlotlong ya kelelo ya pharologano ya
kananyo. E kaya letseno le le amogetsweng ke baagi ba Aforika Borwa mo lefatsheng
lotlhe.
Index A figure (such as a price level) that can be used to compare variables with each
other or with some base number.
Indeks n Syfer (soos n prysvlak) wat gebruik kan word om veranderlikes met mekaar
of met n basissyfer te vergelyk.
Inkomba Lena yinkomba (njengenani lentengo) engasetshenziswa ukuqhathanisa izinto
ezehlukene noma nenombolo ethile ethathwa njengeyisisekelo.
Isalathiso Inani (njengomgangatho wexabiso) elinokusetyenziswa ekuthelekiseni izinto
ezitshintshayo okanye namanye amanani.
Thupane Palo (ya go swana le boemo bja theko) ye e ka diriwago go bapia difetogi
ka botona goba le palo ye nngwe ye e kgethilwego.
Tshupane Palo (jaaka maemo a tlhotlhwa) e e ka dirisiwang go tshwantshanya
dithefosanyo kgotsa le palo nngwe ya theo.
ECS1601/1 227
Indirect taxation This is a form of tax that is levied on products and activities, rather
than on people. It includes VAT, customs duty and excise duty, and is already included in
the final selling price.
Indirekte belasting Dit is n vorm van belasting wat gehef word op produkte en
aktiwiteite, eerder as op mense. Dit sluit BTW, doeanereg en aksynsreg in, en is reeds
by die finale verkoopprys ingesluit.
Intela engaqondile ngqo Lena yintela efakwa emikhiqizweni kumbe emisebenzini
eyenziwe engakhokhiswa abantu ngqo. Kulentela singabala i-VAT, intela yezimpahla
ezingenayo neziphumayo ezweni, nentela ezikhiqizelwe imakethe yangaphakathi
kwezwe, kanti futhi ifakwe kwintengo yokuthengisa.
Urhafiso olungangqalanga Olu luhlobo lwerhafu ekurhafiswa ngalo imveliso
nemisebenzi, ingengabo abantu. Olu didi lwerhafu luquka irhafu yokutya, irhafu yempahla
engenayo nephumayo, irhafu yempahla eveliswa lilizwe kwaye iqukwa kwixabiso
lentengiso.
Mothelo wo e sego wa thwii Wo ke mohuta wa mothelo wo o beelwago ditweletwa
le ditiro, go ena le go batho. O akareta VAT, mothelo wa ditwantle le mothelo wa
dithoto, gomme o ete o akareditwe ka thekong ya mafelelo ya thekio.
Kgethiso e e sa tlhamalalang O ke mohuta wa lekgetho o o kgethisiwang mo dikumong
le mo ditirong go na le mo bathong. Le akaretsa VAT, lekgetho la molelwane le lekgetho
la dithoto, le le setseng le tsentswe mo tlhotlhweng ya bofelo ya thekiso.
Induced consumption Unlike autonomous consumption, which is consumption
on basic necessities that takes place irrespective of the size of ones income, induced
consumption is consumption that depends on ones income. It is, for example, the
consumption of luxury products. The more one earns, the higher ones spending on
such products will be in other words, the higher ones income, the higher induced
consumption will be.
Afgeleide verbruik Anders as outonome verbruik, dit wil s verbruik van basiese
noodsaaklikhede wat plaasvind ongeag n mens se inkomste, hang afgeleide verbruik
af van n mens se inkomste. Dit is byvoorbeeld die verbruik van luukse produkte. Hoe
meer jy verdien, hoe meer sal jy aan di tipe produkte bestee met ander woorde, hoe
hor n mens se inkomste, hoe hor sal afgeleide verbruik wees.
Ukusebenzisa okuncike emalini oyitholayo Lokhu kwehlukile ekusebenziseni
okuphoqelekile, okuwukusetshenziswa kwalezo zinto eziyisidingo kungakhathalekile
ukuthi lowo muntu uhola malini.
Ukusebenzisa okuncike emalini oyitholayo kusho ukusebenzisa impahla okuncike emalini
eholwa umuntu isibonelo salokhu, kungaba wukusebenzisa imikhiqizo yokungcebeleka.
Uma umuntu iningi imali ayiholayo nesidingo semikhiqizo yalolu hlobo siyenyuka.
Ukusetyenziswa okuphenjelelwayo Ukusetyenziswa okuphenjelelwa kwahlukile
ekusetyenzisweni okungaphenjelelwayo ngoba kona kuphenjelelwa yimali. Apha
kungakhankanywa ukuphakama komgangatho wentlalo ngenxa yobukho bemali.
Okukhona umntu efumana umvuzo ophakamileyo, kokukhona umntu echitha imali
kwizinto zomgangatho ophakamileyo.
228 Economics 1B
Tirio ye e huetwago Go se swane le tirio ye e itlelago feela, e lego tirio ya
dihlokwa ta motheo yeo e bago gona go sa etwe bogolo bja mogolo wa motho, tirio
ye e huetwago ke tirio ye e ithekgilego ka mogolo wa motho. Mohlala, ke tirio ya
ditweletwa ta matsaka. Ge motho a dute a hweta thelete ye nti, thelete ye a tla
e diriago ditweletweng ta mohuta woo le yona e tla hlatloga ka mantu a mangwe,
ge mogolo wa motho o hlatloga, tirio ye e huetwago le yona e tla hlatloga.
Tiriso e e feteletseng Go farologana le tiriso ya ka metlha e leng tiriso ya ditsabotlhokwa
tsa motheo e e diragalang go sa kgathalesege bogolo ba letseno la mongwe, tiriso e e
feteletseng ke tiriso e e ikaegileng ka letseno la mongwe. Jaaka sekao, ke tiriso ya dikumo
tsa manobonobo. Fa o amogela go feta tiriso ya thelete mo dikumong tsa mothale o, e
tla nna kwa godimo ka mantswe a mangwe, fa letseno la mongwe le le kwa godimo, go
tla nna le tiriso e e kwa godimo.
Inequality In economic terms, inequality refers mainly to an unequal distribution of
income between the people in an economy that is, a situation where a small minority
receives the largest percentage of a countrys income while the majority receives a small
percentage (for example, where 20% of the population receives 80% of the countrys
income, and 80% of the population receives 20% of the income).
Ongelykheid In ekonomie verwys ongelykheid hoofsaaklik na n ongelyke verdeling
van inkomste tussen die mense in n ekonomie dit wil s, n situasie waarin n klein
minderheid die grootste persentasie van n land se inkomste ontvang, terwyl die
meerderheid n klein persentasie ontvang (byvoorbeeld, waar 20% van die bevolking
80% van die land se inkomste ontvang, en 80% van die bevolking slegs 20% ontvang).
Ukungalingani Kwezomnotho lokhu kusho ukungalingani kwendlela abantu abahlomula
ngayo emnothweni, lesi yisimo othola kuso ukuthi labo bantu abancane bathola ingxenye
enkulu yemali eyenziwe yizwe kuthi labo bantu abayiningi bathole igxenye encane
(isibonelo, yisimo lapho abantu abangamaphesenti angama-20 bethola amaphesenti angu-
80 omnotho wezwe, kuthi abantu abangamaphesenti angama-80 bathole amaphesenti
angama-20 omnotho.
Ukungalingani Ngokwakuqoqosho, ukungalingani kubhekiselela kwimeko yokwabiwa
kwengeniso phakathi kwabantu abathatha inxaxheba kwezoqoqosho, apho igcuntswana
labantu belizwe lifumana isabelo esikhulu, ukuze isininzi sabantu belo lizwe sifumane
kancinci sona (umzekelo, xa ama-20% abantu belizwe befumana ama-80% engeniso
yelizwe, ukuze ama-80% abantu elo lizwe afumane wona ama-20% engeniso).
Tlhokego ya tekatekano Go ya ka ekonomi, tlhokego ya tekatekano e upeta kudu
go phatlalato ye e sa lekalekanago ya ditseno magareng a batho ekonoming ke gore,
boemo bjo go bjona bonnyane bja batho bo amogelago persente ye kgolokgolo ya
ditseno ta naga, mola bonti bo amogela persente ye nnyane (mohlala ke moo 20% ya
batho e amogelago 80% ya ditseno ta naga, gomme 80% ya badudi e amogela 20% ya
ditseno).
Tlhokego ya tekatekano Mo mareong a ikonomi, tlhokego ya tekatekano e kaya thata
kabo e e sa lekaneng ya letseno magareng ga batho mo ikonoming go raya gore ke
maemo ao mo go ona setlhopha se se nnye se amogelang phesente e kgolo ya letseno la
naga, fa bontsi bo amogela phesente e nnye (jaaka sekao fa 20% ya sethaba e amogela
80% ya letseno la naga mme 80% ya sethaba e amogela 20% ya letseno).
ECS1601/1 229
Inflation An economy suffers from inflation when there are constant significant increases
in the general price level.
Inflasie n Ekonomie ervaar inflasie wanneer daar voortdurend beduidende stygings in
die algemene prysvlak is.
Ukwehla kwamandla emali Umnotho usuke unenkinga yokwehla kwamandla emali
uma njalo intengo yempahla iba nokwenyuka okubonakalayo.
Unyuko-maxabiso Uqoqosho luyachaphazeleka lunyuko-maxabiso xa kukho ukunyuka
okuthe gqolo kwamaxabiso.
Infleiene Ekonomi e ba le bothata bja infleiene ge go na le ditlhatloo ta nako le nako
te dikgolwane ta ditheko.
Infoleiene Ikonomi e nna le mathata a infoleiene fa go na le ditlhatlogo tsa ka gale tse
di bonalang mo ditlhotlhweng tsa kakaretso.
Inflation targeting Inflation targeting is a tool to influence general expectations about
future price changes. It involves selecting an inflation measure and an inflation target for
a particular year, e.g. a target between 3% and 5%. By influencing people to expect
inflation within a certain target range, it is hoped that inflation will actually stay within
this range.
Stel van inflasiemikpunte Die stel van inflasiemikpunte is n instrument wat gebruik
word om algemene verwagtings oor toekomstige prysveranderings te benvloed. Dit
behels die kies van n inflasiemaatstaf en n inflasiemikpunt vir n bepaalde jaar, bv. n
mikpunt tussen 3% en 5%. Deur mense te benvloed om te verwag dat pryse binne die
bestek van die persentasies wat gekies is, sal styg, word daar gehoop dat inflasie werklik
binne di bestek sal bly.
Isilinganiso esisophiwe sokwehla kwamandla emali Lena yindlela yokulawula
lokho okungalindeleka esikhathini esizayo ekuguqukeni kwamanani entengo. Lokhu
kubandakanya ukukhetha isilinganiso sokwehla kwamandla omnotho kanye nesilinganiso
okungamele ukwehla kwamandla kwedlule kuso onyakeni othile, isibonelo okungaba
yinani eliphakathi kwamaphesenti ama-3 namahlanu. Ngokwenza ukuthi abantu
balindele ukuba ukwehla kwamandla emali kube phakathi kwamanani athile asophiwe,
kwethenjwa ukuthi lokho kuyokwenza ukuthi ukwehla kwamandla emali ngempela kube
lapho.
Ujoliso kunyuko-maxabiso Ujoliso kunyuko-maxabiso sisixhobo sokuphembelela
okulindelekileyo jikelele ngekamva lokutshintsha kwamaxabiso. Lubandakanya
ukukhethwa komlinganiselo wonyukomaxabiso nokujolisa kunyuko-maxabiso lonyaka
othile, umzekelo ujoliso oluphakathi kwesi-3% nesi-5%. Ngokuphembelela abantu
ukuba balindele ukunyuka kwamaxabiso kwisigaba esithile, kuyathenjwa ukuba unyuso-
maxabiso luya kuhlala lukwesosigaba.
Tebanyo ya infleiene Tebanyo ya infleiene ke sediriwa sa go hueta ditetelo ta
kakareto ka ga diphetogo ta ka moso ta ditheko. E ama go kgethwa ga kelo ya infleiene
le selebanywa sa infleiene ngwageng wo o itego, mohlala ke tebanyo magareng a
3% le 5%. Ka go hueta batho go letela infleiene ye e lago tekanyong ye nngwe ye e
lebantwego, go holofelwa gore infleiene e tla dula ka gare ga tekanyo yeo.
230 Economics 1B
Ntlha ya infoleiene Ntlha ya infoleiene ke sedirisiwa sa go tlhotlheletsa ditsholofelo
tsa kakaretso tsa diphetogo tsa isagwe tsa ditlhotlhwa. E akaretsa tlhopho ya kgato ya
infoleiene le ntlha ya infoleiene ya ngwaga o o rileng, sekao, ntlha magareng ga 3% le
5%. Ka go tlhotlheletsa batho go solofela infoleiene mo maemong a a rileng a ntlha go
a bo go solofelwa fa infoleiene e tla nna tota mo maemong ao.
Informal sector A sector of the economy in which activities take place that are not
shown in the countrys official statistics. In the informal sector people do not work in
organisational structures, but essentially work for themselves. Examples of people in the
informal sector are street vendors and domestic workers.
Informele sektor n Sektor van die ekonomie waarin aktiwiteite plaasvind wat nie in die
land se amptelike statistieke weerspiel word nie. In die informele sektor werk mense
nie in organisasiestrukture nie, maar werk wesenlik vir hulleself. Voorbeelde van mense
in die informele sektor is straatsmouse en huishulpe.
Umkhakha ongabhalisiwe ngokomthetho Lona ngumkhakha wezomnotho othola
ukuthi izinto ezenzeka kuwo azize zingavela ezibalweni zezwe ezisemthethweni.
Kulomkhakha abantu abasebenzeli izinhlangano ezithile kodwa bazisebenzela bona
ngokwabo. Isibonelo sabantu abasebenza kulomkhakha ngabantu abathengisa
emigwaqeni kanye nabasebenzi basezindlini.
Icandelo elingasekwanga ngokusesikweni Licandelo lezoqoqosho elimsebenzi walo
ungaboniswa ngokusesikweni kumanani aseburhulumenteni. Kwicandelo elingasekwanga
ngokusesikweni abantu abasebenzeli imibutho koko bayazisebenzela. Umzekelo
wabantu abakumacandelo angasekwanga ngokusesikweni ngabathengisi basezitalatweni
nabancedisi bamakhaya.
Lekala leo e sego la semmuo Lekala la ekonomi leo go lona ditiro di diragalago di sa
laetwego ka dipalopalong ta semmuo ta naga. Ka lekaleng leo e sego la molao, batho
ga ba ome ka ditheong te di beakantwego, eupa go ka thwe ba a ithomela. Mehlala
ya batho bao ba lego ka lekaleng le e sego la molao ke barekii ba mekgobeng le bathui
ba ka magaeng.
Lekala le e seng la tshwanelo Ke lekala la ikonomi le ditiragatso tse di tlhagelelang mo
go lona di sa supiweng mo dipalopalong tsa semmuso tsa naga. Mo lekaleng le e seng la
tshwanelo, batho ga ba dire mo ditheong tse di rulaganeng, mme ba itirela ka bo bona.
Dikao tsa batho ba ba mo lekaleng le e seng la tshwanelo ke barekisi ba mebila le badiri
ba mo malapeng.
Intermediary An intermediary is a link between two things. A financial intermediary is
an institution, such as a bank, or a person, such as a broker, that acts as a link between
savers and borrowers in the economy.
Tussenganger n Tussenganger is n skakel tussen twee dinge. n Finansile tussenganger
is n instansie, soos n bank, of n persoon, soos n makelaar, wat optree as n skakel
tussen spaarders (uitleners) en leners in n ekonomie.
Umxhumanisi Ngumuntu noma isikhungo esisebenza ukuxhumanisa phakathi kwezinto
ezimbili.
ECS1601/1 231
Umxhumanisi kwezezimali yisikhungo esifana nebhangi kumbe umphatheli osebenza
ukuxhumanisa abantu abangabalondolozi kanye nalabo abangabeboleki emnothweni.
Unozakuzaku Unozakuzaku likhonkco phakathi kwezinto ezimbini. Unozakuzaku
kwezemali liziko elifana nebhanki, okanye umntu onjenge-arhente esebenza
njengekhonkco phakathi kwabagcini-mali nababolekisi ngemali kuqoqosho.
Sekgokaganyi Sekgokaganyi se kgokaganya dilo te pedi. Sekgokaganyi sa dithelete ke
setheo sa go swana le panka, goba motho yo a omelago setheo sa dithelete, gomme se
oma bjalo ka mmaditsela magareng a baboloki le bakgopedi ekonoming.
Kgokaganyi Kgokaganyi ke segokaganyi sa dilo tse pedi. Segokaganyi sa letlotlo ke
setheo se se jaaka banka, kgotsa motho jaaka boroukara yo a dirang jaaka kgokagano
magareng ga baboloki le baadimi mo ikonoming.
Investment income This is a type of income flow that is recorded in a countrys balance
of payments. It includes dividends, interest, profits and other forms of income earned
from the provision of financial capital.
Beleggingsinkomste Dit is n tipe inkomstevloei wat in n land se betalingsbalans
aangeteken word. Dit sluit in dividende, rente, wins en ander vorms van inkomste wat
uit die beskikbaar-stelling van finansile kapitaal verdien is.
Inzuzo yemali etshaliwe Lolu wuhlobo lokungena kwemali oluyaye lurekhodwe
esilinganisweni senkokhelo yezwe. Lapha kubalwa izimali eziyinzuzo yamasheya, inzalo,
inzuzo kanye nezinye izinhlobo zenzuzo ezitholakale ngokuhlinzeka imali ezosebenza
ebhizinisini.
Ingeniso yotyalo-mali Ludidi lwenkqubo yengeniso eye ibhalwe phantsi kwi-akhawunti
yemali kulungelelwaniso lweentlawulo. Iquka izahlulelo, inzala, inzuzo nezinye iindidi
zengeniso ezifunyanwa kwinzala yemali.
Ditseno ta peeleto Wo ke mohuta wa moela wa ditseno wo o ngwalwago ka
tekatekanong ya ditefelo ta naga. Di akareta dikarolelano, maokoto, dipoelo, le
mehuta e mengwe ya ditseno yeo e hweditwego kabong ya kapetlele ya dithelete.
Letseno la peeletso O ke mohuta wa kelelo ya letseno le le kwadiwang mo
pharologanong ya kananyo ya naga. Le akakaretsa dikarololelo, ditsalo, dipoelo le mehuta
e mengwe ya letseno le le bonweng mo tlhagisong ya letlole la dithelete.
Inward industrialisation This is a strategy to stimulate economic growth that involves
strengthening local industries (as opposed to relying on imports). The term is also used
in a wider sense to refer to the stimulation of domestic demand by means of government
spending, especially social spending.
Inwaartse industrialisasie Dit is n strategie om ekonomiese groei te stimuleer wat die
stimulering van plaaslike industrie behels (eerder as om op invoere staat te maak). Die
term word ook in n brer sin gebruik om te verwys na die stimulering van binnelandse
vraag deur middel van staatsbesteding, veral maatskaplike besteding.
232 Economics 1B
Ukusimamisa izimboni zangaphakathi kwezwe Leli yisu lokufukula umnotho
elibandakanya ukusimamisa izimboni zangaphakathi kwezwe (kunokuthi izwe
lethembele empahleni evela emazweni angaphandle). Lokhu kuyasetshenziswa futhi
lapho kubhekiswe ekukhuliseni isidingo sangaphakathi kwezwe ngokuthi uhulumeni
asebenzise imali ikakhulu ezinhlelweni zokubhekela umphakathi.
Ushishino olutyekele ngaphakathi Licebo eli lokuhlumisa uqoqosho olubandakanya
ukuphuculwa kwamashishini angaphakathi (kungathenjelwa kwimveliso yangaphandle).
Eligama likwasetyenziswa nasekuchazeni ukuhlunyiswa kwemfuno yangaphakathi
ngenkcitho karhulumente, ingakumbi kwinkcitho yoluntu.
Intaseterifatato ya ka gare Le ke leano la go hlohleleta kgolo ya ekonomi leo le
amago go tiiwa ga di-intaseteri ta ka nageng (go ena le go holofela ditwantle). Lereo
le le diriwa gape ka kgopolo ye e phatlaletego kutwana go upeta go tlhohleleto
ya nyakego ya ka nageng ka tirio ya mmuo ya thelete, kudukudu tirio ya thelete
mererong ya leago.
Tsweletso ya madirelo a selegae Le ke leano la go tsosolosa kgolo ya ikonomi le le
amang tiiso ya madirelo a selegae (go na le go ikaega ka diromelwateng). Lereo le le
dirisiwa le ka bophara go kaya tsosoloso ya topo ya selegae ka tiriso ya ditshenyegelo tsa
mmuso, bogolo ditshenyegelo tsa leago.
Labour force participation rate The labour force participation rate (LFPR) is the
fraction or percentage of the population that makes up the labour force or economically
active population. It can be expressed as the labour force (the economically active
population) divided by the total population, multiplied by 100.
Arbeidsmag-deelnemingskoers Die arbeidsmag-deelnemingskoers (AMDK) is
die breuk of persentasie van die bevolking wat die arbeidsmag of ekonomies aktiewe
bevolking uitmaak. Dit kan uitgedruk word as die arbeidsmag (die ekonomies aktiewe
bevolking) gedeel deur die totale bevolking, vermenigvuldig met 100.
Izinga lokuzibandakanya kwabasebenzi Lesi yisibalo kumbe iphesenti labantu
abenza isibalo sabasebenzi (LFPR) kumbe ababambe iqhaza kwezomnotho. Lelinani
ulithola ngokuthi uthathe isibalo sabasebenzi usehlukanise ngenani lilonke lezakhamuzi
zezwe bese umphumela uwuphindaphinda ngo-100.
Isantya sothatho-nxaxheba lwabasebenzi Isantya sothatho-nxaxheba lwabasebenzi
(LFPR) licandelo labantu belizwe elingabasebenzi okanye abathatha inxaxheba
kuqoqosho. Sisenokuchazwa njengabasebenzi (abathatha inxaxheba kuqoqosho)
abohlulwa ngenani labemi bebonke, lize liphindaphindwe nge-100.
Kelo ya go kgatha tema ga baomi Kelo ya go kgatha tema ga baomi (LFPR) ke
karolwana ya goba persente ya badudi bao ba ba dirago sehlopha sa baomi goba badudi
bao ba kgathago tema ekonoming. E ka hlaloswa bjalo ka baomi (badudi ba ba kgathago
tema ekonoming) ge ba arolwa ka palomoka ya badudi, gomme ba atiwa ka 100.
Kelo ya seabe sa badiri Kelo ya seabe sa badiri (LFPR) ke palophatlo kgotsa phesente
ya sethaba e e bopang badiri kgotsa sethaba se se tshwaelang mo ikonoming. E ka
tlhaloswa e le badiri (sethaba se se tshwaelang mo ikonoming) ba ba arolwang ka
palogotlhe ya sethaba e e ntsifadiwang ka 100.
ECS1601/1 233
Lag A lag means a delay, i.e. it is something that occurs when things fall behind schedule.
Because fiscal policy functions in an indirect way, lags often occur that may impede
the governments aims. For example, there may be an implementation lag: once policy
decisions have been made, it takes time to implement the decisions.
Sloering n Sloering beteken n vertraging, met ander woorde dit kom voor as dinge
agter skedule raak. Omdat fiskale beleid op n indirekte manier werk, kom daar dikwels
sloerings voor wat dit vir die regering moeilik kan maak om sy doelwitte te bereik. Daar
kan byvoorbeeld n implementeringsloering wees: wanneer beleidsbesluite geneem is,
neem dit eers n ruk om die besluite te implementeer.
Ukusalela emuva Lokhu kusho ukubambezeleka okusho ukusalela emuva ohlelweni
okumele lulandelwe. Ngenxa yokuthi umgomo wezezimali usebenza ngendlela
engaqondile ngqo, kukhona ukubambezeleka okungakhinyabeza izinhloso zikahulumeni.
Isibonelo, kungabakhona ukubambezeleka kokuqala ukusebenza: uma izinqumo
zomgomo sezithathiwe kuyaye kuthathe isikhathi ngaphambi kokuba ziqale ukusebenza.
Ukuba semva Ukuba semva kuthetha ukulibaziseka, okokukuthi xa izinto zisemva
kwexesha ebekumele ukuba zenzeka ngalo. Ngenxa yokuba umgaqo-nkqubo
wezengeniso karhulumente usebenza ngendlela engangqalanga, ukuba semva kwenzeka
qho nto leyo isenokuthintela iinjongo zikarhulumente. Umzekelo, kusenokuba semva
ngokuphunyezwa komba othile: ithi imigaqo-nkqubo isakube yenziwe, kuthathe ixesha
ukusetyenziswa kwayo.
Tiego Tiego ke seo se diregago ge dilo di alela lenaneong la go oma. Ka ge meomo
ya tshepedio ya dithelete e le tsela ye e sego ya thwii, tiego e fela e eba gona, yeo e ka
itiago dinepo ta mmuo.
Mohlala ke ge go ka ba le tiego ya go tsenywa tiriong ga se sengwe: ge diphetho ta
leano tshepedio di ete di terwe, go tea nako gore diphetho teo di tsenywe tiriong.
Tiego Se ke se se diragalang fa dilo di salela kwa morago ga thulaganyo. Ka ntlha ya fa
taolo ya mmuso ya merero ya dithelete e dira ka tsela e e sa tlhamalalang ka metlha go
nna le tiego e e ka kgoreletsang maikemisetso a mmuso. Jaaka sekao, go ka nna le tiego
ya tiragatso: fa ditshwetso tsa maikemisetso di setse di tserwe go tsaya nako go diragatsa
ditshwetso tseo.
Law of diminishing returns This law (also called the law of diminishing marginal
product) states that after some point, increases in variable factors of production, such as
labour, will result in smaller additional increases in output. That is, after some point the
additional output per unit of input decreases.
Wet van afnemende opbrengs Hierdie wet (ook genoem die wet van afnemende
marginale produk) bepaal dat, na n sekere punt, n toename in veranderlike produksie-
faktore, soos arbeid, sal lei tot kleiner bykomende toenames in uitset. Dit wil s, na n
sekere punt sal die bykomende uitset per eenheid van inset begin afneem.
Umthetho wokwehla kwenzuzo Lo mthetho ubalula ukuthi ngemuva kwesigaba
esithile, ukwenyuka kwezidingo zokukhiqiza ezifana nabasebenzi, kugcina kube
nomphumela wokwenyuka okuncane okwengezekayo enanini lomkhiqizo. Lokhu kusho
ukuthi ngemuva kwesigaba esithile uyancipha umkhiqizo owengeziwe waleyo naleyo
mpahla.
234 Economics 1B
Umthetho wenzuzo ehlayo Lo mthetho (okwabizwa ngokuba ngumthetho wemveliso
ehlayo), uchaza ukuba emva kwethuba elithile, ukunyuka kwiimeko ezitshintshayo
zemveliso, njengomsebenzi, ziyakukhokelela ekunyukeni kwezongezelelo ezincinane
kwimveliso. Oko kukuthi, emva kwethuba elithile, imveliso esisongezelelo ngesigaba
esinye segalelo iya kwehla.
Molao wa dipoelo te di fokotegago Molao wo (o bitwa gape le gore ke molao
wa phokotego ya dipoelo ta setweletwa), o hlalosa gore morago ga ntlha ye nngwe,
dikoketo ta didiriwa te difetofetogago ta tweleto go swana le baomi, di tla ba le
dipoelo ta dikoketego te nnyane ta tweleto. Ke gore morago ga gore ntlha ye e
itego, koketego ya tweleto ka sekgao sa sediriwa sa tweleto e a fokotega.
Molao wa phokotsego ya dipoelo Molao o (o o bidiwang gape molao wa ngotlego
ya mola wa kumo) o tlhalosa gore morago ga ntlha nngwe dikoketsego mo mabakeng
a a farologaneng a tlhagiso jaaka badiri, di tla baka ditlhatloso tsa tlaleletso tse di nnye
tsa ntsho. Go raya gore mo ntlheng nngwe ntsho ya tlaleletso ya uniti ya tlhagiso e a
ngotlega.
Lender of the last resort A lender of the last resort is the last lender in a chain of
lenders. The SA Reserve Bank is called a lender of the last resort because commercial
banks will first try to lend from other banks, and if no money is available they will finally
request a loan from the SARB.
Uitlener in laaste instansie n Uitlener in laaste instansie is die laaste uitlener in n
ketting uitleners. Die SA Reserwebank word n uitlener in laaste instansie genoem
omdat handelsbanke eers sal probeer om by ander handelsbanke te leen, en as geen geld
beskikbaar is nie sal hulle uiteindelik n lening van die SARB versoek.
Umbolekisi wokugcina Lona ngumbolekisi wokugcina ochungechungeni
lwababolekisi. I-SA Reserve Bank ivama ukubizwa kanjalo ngoba amabhangi aqale azame
ukuthola imali kwamanye amabhangi, kuthi uma ehluleka kube yima eboleka imali
eReserve Bank.
Umbolekisi ekubhenelwa kuye Umbolekisi ekubhenelwa kuye ngumbolekisi
wokugqibela kuludwe lababolekisi. IBhanki enguVimba yoMzantsi-Afrika ibizwa ngokuba
ngumbolekisi ekubhenelwa kuye kuba iibhanki ziqala ziboleke imali kwezinye iibhanki,
ukuze zithi xa zithe zawa phantsi kumalinge azo, zibhenele kwiBhanki enguVimba
yoMzantsi-Afrika.
Moadimi wa tshepo ya mafelelo Moadimi wa tshepo ya mafelelo ke moadimi wa
mafelelo molokolokong wa baadimi. Panka ya Resefe e bitwa moadimi wa tshepo ya
mafelelo ka ge dipanka ta kgwebo di tla leka dipanka te dingwe pele, gomme ge go se
na thelete di tla re la mafelelo ta kgopela kadimo go Panka ya Resefe ya Afrika Borwa.
Moadimisi wa bofelo Moadimisi wa bofelo ke moadimisi wa bofelo mo motseletseleng
wa baadimisi.
Banka ya Rasefe ya Aforika Borwa e bidiwa moadimisi wa bofelo ka ntlha ya fa dibanka
tsa dithelete di tla leka go adima mo dibankeng tse dingwe, mme fa thelete e se teng
di tla kopa kadimo mo go SARB.
ECS1601/1 235
Liabilities related to reserves This is an item in the balance of payments. It refers to
short-term loans incurred by the government, Reserve Bank and other banks with the
purpose of increasing the countrys gold and other foreign reserves.
Laste in verband met reserwes Dit is n inskrywing in die betalingsbalans. Dit verwys
na korttermyn-lenings aangegaan deur die regering, Reserwebank en ander banke met
die doel om die land se goud en ander buitelandse reserwes te verhoog.
Izikweletu eziphathelene nezimali ezigciniwe Leli ngelinye lamaphuzu esilinganisweni
senkokhelo. Lisho izimali ezibolekwa isikhathi esifisha nguhulumeni, i-Reserve Bank
kanye namanye amabhangi ngenhloso yokwenyusa izimali zakwamanye amazwe kanye
negolide okulondoloziwe noma okugcinwe yizwe.
Amatyala aphathelele koovimba Olu lolunye udidi kulungelelwaniso lwentlawulo.
Luphathelele kwimboleko-mali yexesha elifutshane eyenziwa ngurhulumente, yiBhanki
enguVimba nazezinye iibhanki ngenjongo yokwandisa igolide yelizwe nabanye oovimba
bangaphandle.
Melato ye e amanago le maaledi Ye ke hlogwana ye e lego ka tekatekanong ya
ditefelo. E upeta go dikadimo ta lebaka le lekopana te di dirilwego ke mmuo, Panka
ya Resefe le dipanka te dingwe ka morero wa go oketa maaledi a gauta le a dithelete
te dingwe ta go twa ka dinageng ta ntle.
Melato e e amanang le dirasefe E ke ntlha mo pharologanong ya kananyo. E kaya
dikadimo tsa paka khutswe tse di diriwang ke mmuso, Banka ya Rasefe le dibanka tse
dingwe ka maikaelelo a go oketsa gouta le dirasefe tse dingwe tsa bodithaba.
Liquid asset reserve requirement Banks are under a legal obligation to keep a certain
percentage of the deposits they receive at the SARB. This requirement to keep a certain
cash reserve is known as the liquid asset reserve requirement.
Likiedebate-reserwevereiste Banke is wetlik verplig om n sekere persentasie van
die depositos wat hulle ontvang, by die SARB te hou. Hierdie vereiste om n sekere
kontantreserwe te hou, staan bekend as die likiedebate-reserwevereiste.
Umbandela wokugcinwa kwemali Amabhangi anesibopho sangokomthetho sokuthi
agcine e-Reserve Bank amaphesenti athile emali efakwayo kuwona. Lo mbandela
wokugcina ukheshi othile olondoloziwe waziwa ngokuthi ngumbandela wokugcinwa
kwemali.
Isidingo sokugcina uvimba wemali Iibhanki zibotshelelwa ngumthetho ukuba zigcine
isixa esithile seedipozithi ezifakwa kuzo kwiBhanki enguVimba yoMzantsi-Afrika. Esi
sibophelelo sibizwa ngokuba sisidingo sokugcina uvimba wemali.
Nyakego ya maaledi a thelete Dipanka di tlamilwe ke molao gore di boloke
persente ye e itego ya dipoloko te di di amogelago ka Pankeng ya Resefe ya Afrika
Borwa. Nyakego ye ya gore go bolokwe maaledi a itego a khee, e tsebja bjalo ka
nyakego ya maaledi a matlotlo a thelete.
Tlhokego ya rasefe ya letlotlo la kelelo Dibanka di gapeletswa ke molao go boloka
phesente e e rileng ya dipeeletso tse di di amogelang mo Banka ya Rasefe ya Aforika
Borwa. Tlhokego e ya go boloka rasefe e e rileng ya thelete e itsege e le tlhokego ya
rasefe ya letlotlo la kelelo.
236 Economics 1B
Living standard A persons living standard is his or her quality of life, and involves
many different factors such as the level of income and employment, and the degree of
education, health and housing that the person enjoys.
Lewenstandaard n Persoon se lewenstandaard is sy of haar lewenskwaliteit, en behels
talle verskillende faktore soos die vlak van inkomste en indiensneming, en die persoon
se graad van onderwys, gesondheid en behuising.
Izinga lempilo Lapha yizinga lempilo ephilwa wumuntu, kanti kulona kungena amaphuzu
amaningi ehlukene afana nomsebenzi umuntu awenzayo, izinga lemfundo, izinga lempilo
nelendlu ahlala kuyo.
Umgangatho wokuphila Umgangatho wokuphila (wentlalo) womntu ngumgangatho
wobomi bakhe kwaye uquka iimeko ezahlukeneyo njengomgangatho wemali, ingqesho,
umgangatho wemfundo, wempilo nowendlu.
Maemo a lephelo Maemo a motho a lephelo ke boleng bja bophelo bja gagwe, gomme
a ama dintlha te dinti ta go fapafapana go swana le maemo a ditseno le moomo, le
maemo a thuto, maphelo le legae, e le teo motho a nago nato.
Maemo a tshelo Maemo a tshelo a motho ke boleng jwa botshelo jwa gagwe mme
a ama mabaka a mantsi a a farologaneng jaaka letseno le go dira, maemo a thuto,
boitekanelo le ntlo e a e itumelang.
Macro supply curve The macro supply curve of a country (also known as the aggregate
supply curve) represents the level of total production of products and services in real
terms (real GDP) which is produced at various price levels in the economy.
Makro-aanbodkromme n Land se makro-aanbodkromme (wat ook die totaleaanbod-
kromme genoem word) verteenwoordig die vlak van totale produksie van produkte en
dienste in rele terme (rele BBP) wat teen verskillende prysvlakke in die ekonomie
geproduseer word.
Umdwebo okhombisa umkhiqizo (Lokhu kuphinde kubizwe ngomdwebo okhombisa
umkhiqizo uwonke). Lokhu kumele izinga lomkhiqizo noma umsebenzi uwonke
okhiqizwe yizwe ngamanani ehlukene entengo emnothweni wezwe.
Igophe elibonisa umyinge wemveliso uwonke Igophe elibonisa umyinge wemveliso
uwonke welizwe (elaziwa njengegophe lenani elilonke lemveliso) libhekiselele
kumgangatho wemveliso iyonke neenkonzo zizonke ngohlobo elulo/ezililo ezithi
ziveliswe kwimigangatho yamaxabiso ahlukeneyo kuqoqosho.
Khebe ya kabo ya ekonomi ka kakareto Khebe ya naga ya kabo ya ekonomi ka
kakareto (ye e tsebegago gape bjalo ka khebe ya palogare ya kabo) e emela maemo a
tweletomoka ya ditweletwa le ditirelo ta ka gare ga naga teo di tweletwago ka
maemo a go fapafapana a ditheko ekonoming.
Mola wa tlamelo e kgolo Mola wa tlamelo e kgolo ya naga (o o itsegeng gape e le
mola mogolo wa tlamelo) o emela maemo a tlhagiso yotlhe ya dikumo le ditirelo go ya
ka mabaka tota (GDP tota) tse di tlhagisiwang mo maemong a a farologaneng a tlhotlhwa
mo ikonoming.
ECS1601/1 237
Manageability Something that is manageable is easy to handle or to cope with.
Manageability is one of the requirements for a medium of exchange.
Hanteerbaarheid Iets wat hanteerbaar is, kan maklik hanteer of vervoer word. Han-
teerbaarheid is een van die vereistes vir n ruilmiddel.
Ukwengameleka Lokhu kusho into okulula ukuyengamela. Lona ngomunye
wemibandela ekuthengiselaneni.
Ukuphatheka Into ephathekayo yinto ekulula ukuyilawula okanye ukusebenzisana
nayo. Ukuphatheka zezinye zeemfuneko zonaniselwano.
Taolego Se sengwe seo se laolegago ke seo se lego bonolo go omega goba go lebagana
naso. Taolego ke yenngwe ya dinyakwa ta seo se ka dirietwago phetolelano.
Taolego Sengwe se se laolegang se bonolo go dirisiwa kgotsa go dira ka sona. Taolego
ke nngwe ya ditlhokego tsa tsela ya kananyo.
Marginal propensity to consume (MPC) Marginal propensity to consume is the
change that takes place in consumption due to a change in income. The marginal pro-
pensity (tendency) to consume indicates the proportion of an increase in income that
will be used for consumption, rather than savings.
Marginale verbruiksgeneigdheid (MVG) Marginale verbruiksgeneigdheid is die
verandering in verbruik vanwe n verandering in inkomste. Die marginale verbruiks-
geneigdheid toon watter gedeelte van n toename in inkomste vir verbruik aangewend
sal word, eerder as vir spaargeld.
Uguquko ezintweni ezisetshenziswa wumuntu (MPC) Lolu wuguquko oluba
khona ezintweni umuntu azisebenzisayo ngenxa yoshintsho emalini ayiholayo. Uguquko
ezintweni ezisetshenziswa ngumuntu luveza ubungako bemali obuthe xaxa emholweni
ezosetshenziswa ekuthengeni izidingo kunokuthi yongiwe.
Ukutshintsha kothende lokusetyenziswa kwemveliso (MPC) Ukutshintsha kothende
(kwendlela) yokusetyenziswa kwemveliso yinguqu ethi yenzeke ekusetyenzisweni
kwemveliso ebangelwa kukutshintsha komvuzo (ingeniso). Ukutshintsha kothende
(kwendlela) lokusetyenziswa kwemveliso kubonisa ukunyuka kwecandelo lomvuzo
(ingeniso) oya kusetyenziswa kwinto ethile, kunokuba uvalelwe ebhankini.
Poelo ya tshekamelo ya tirio (MPC) Poelo ya tshekamelo ya tirio ke phetogo ye
e bago gona tiriong ka lebaka la phetogo ya ditseno. Poelo ya tshekamelo ya go diria
e laeta karolo ya tlhatlogo ya ditseno, yeo e tla dirietwago tirio, go e na le poloko.
Moolwane wa tlwaelo ya tiriso (MPC) Moolwane wa tlwaelo ya tiriso ke pharologano
e e diragalang mo tirisong ka ntlha ya phetogo ya letseno. Tlwaelo ya tiriso e supa karolo
ya tlhatlogo ya letseno le le tla dirisiwang mo tirisong go na le go bolokiwa.
Marginal propensity to save (MPS) The marginal propensity (tendency) to save is the
change in savings due to a change in income. In other words, MPS is the ratio between
a change in savings and a change in income.
238 Economics 1B
Marginale spaargeneigdheid (MSG) Marginale spaargeneigdheid is die verandering in
spaargeld vanwe n verandering in inkomste. Met ander woorde, MSG is die verhouding
tussen n verandering in spaargeld en n verandering in inkomste.
Uguquko emalini elondolozwayo (MPS) Lolu wuguquko emalini umuntu
ayilondolozayo nolubangwa wuguquko emalini umuntu ayiholayo. Ngamanye amazwi,
lobu wubudlelwano obukhona oguqukweni lwemali elondolozwayo kanye noguquko
emalini umuntu ayiholayo.
Ukutshintsha kothende lokugcinwa kwemali (MPS) Ukutshintsha kothende
lokugcina imali yinguqu ethi yenzeke kugcino-mali ngenxa yokutshintsha komvuzo.
Ngamanye amazwi, ukutshintsha kothende lokugcina imali linani elingumahluko phakathi
kwenguqu kugcino-mali nenguqu yomvuzo.
Poelo ya tshekamelo ya go boloka (MPS) Poelo ya tshekamelo ya go boloka ke
phetogo dipolokong ka lebaka la phetogo ditsenong. Ka mantu a mangwe, poelo ya
tshekamelo ya go boloka ke kabo ya magareng a phetogo ya go boloka le phetogo ya
ditseno.
Moolwane wa tlwaelo ya go boloka (MPS) Moolwane wa tlwaelo ya go boloka ke
phetogo mo polokong ka ntlha ya phetogo mo letsenong. Ka mantswe a mangwe, MPS
ke kabo magareng ga phetogo ya go boloka le phetogo mo letsenong.
Marginal tax rate The marginal tax rate is the percentage of every rand over a certain
specified amount that is paid to tax. For example, it may be specified that a person will
need to pay marginal tax on any amount that he or she earns over R100 000 at a certain
marginal tax rate. A person earning R170 000 will then pay a marginal tax rate of, for
example, 35% on the additional R70 000 that he or she earns.
Marginale belastingkoers Die marginale belastingkoers is die persentasie van elke
rand bo n sekere gespesifiseerde bedrag wat aan belasting betaal word. Daar kan
byvoorbeeld gespesifiseer word dat n persoon marginale belasting teen n marginale
belastingkoers moet betaal op enige bedrag wat hy of sy verdien wat R100 000 oorskry.
Iemand wat R170 000 verdien, sal dan teen n marginale belastingkoers van byvoorbeeld
35% belasting betaal op die bykomende R70 000 wat hy of sy verdien.
Intela ekhokhwa emalini engaphezu kwenani elinqunyiwe Leli yiphesenti elithile
kulelo nalelo randi emalini okubalulwe ukuba ikhokhelwe intela. Isibonelo, kunokwenzeka
kuthiwe umuntu kuzomele akhokhe intela kunanoma yiyiphi imali ayiholayo eyeve ku-
R100 000 leyo ntela eyikhokha enanini elingaphezulu kwelinqunyiwe. Ngalokho umuntu
ohola u-R170 000 uzokhokha amaphesenti angu-35 okuyisibonelo se-marginal tax rate,
ewakhokhela lo-R70 000 ongaphezulu awutholayo.
Umyinge werhafu Umyinge werhafu linani eliqingqiweyo lerandi nganye elithi
lixhuzulwe emvuzweni womsebenzi lihlawule irhafu. Umzekelo, kusenokuthiwa
umntu makahlawule umyinge othile werhafu xa efumana isixa-mali esingaphaya kwe-
R100 000. Umntu ofumana i-R170 000 angahlawula umyinge omalunga nama-35%
ngaphezu kwama-R70 000 ahlawulwa wona.
ECS1601/1 239
Kelo ya poelo ya mothelo Poelo ya kelo ya mothelo ke persente ya ranta ye nngwe
le ye nngwe thelet ye e itego ye e beilwego ye e lefelwago mothelo. Ka mohlala go
ka bewa gore motho o tla swanela go lefa poelo ya mothelo theleteng ye nngwe le ye
nngwe ye a e golago ka godimo ga R100 000 ka kelo ye e itego ya poelo ya mothelo.
Motho yo a golago R170 000 o tla lefa kelo ya poelo ya mothelo ya, mohlala, 35%
koketegong ya R70 000 yeo a e golago.
Moolwane wa kelo ya lekgetho Moolwane wa kelo ya lekgetho ke phesente ya ranta
nngwe le nngwe mo pokelelong e e rileng e e totobaditsweng e e duelelwang lekgetho.
Jaaka sekao, go ka totobadiwa gore motho o tshwanetse a duela moolwane wa lekgetho
mo pokeletsong nngwe le nngwe e a e bonang e e fetang R100 000 mo kelong e e rileng
ya moolwane wa lekgetho. Motho yo a amogelang R170 000 o tla tshwanelwa ke go
duela kelo ya moolwane wa lekgetho, jaaka sekao, 35% mo tlaleletsong ya R70 000 e a
e amogelang.
Market yield rate The market yield rate of a bond is the interest rate that you earn on
a bond. This yield rate is fixed, in other words, it remains the same even if the bond is
sold for a different price at a later stage.
Markopbrengskoers Die markopbrengskoers van n obligasie is die rentekoers wat jy
op die obligasie verdien. Hierdie opbrengskoers is vasgestel, met ander woorde, dit bly
dieselfde selfs al word die obligasie later teen n ander prys verkoop.
Inzalo yemakethe Lena yinzalo oyitholayo ngebhondi. Lenzalo ayiguquki ngamanye
amazwi ihlala ifana ngisho noma kuthiwa ibhondi ithengisa ngenani elehlukile esikhathini
esizayo.
Umyinge wengeniso yemarike Umyinge wengeniso yemarike yebhondi ngumyinge
wemali-nzala othi uyifumane ngebhondi. Lo myinge wengeniso uqingqiwe, oko kukuthi,
uhlala unjalo nokuba ibhondi ithengiswa ngexabiso elahlukileyo kwixesha elizayo.
Kelo ya puno ya mmaraka Kelo ya puno ya mmaraka ya bonto ke kelo ya leokoto
yeo o e hwetago bontong. Kelo ye ya puno ga e fetoge, ka mantu a mangwe, e dula e
swana le ge bonto e ka rekiwa ka theko ye e fapanego, moragonyana.
Kelo ya mmaraka wa thobo Kelo ya mmaraka wa thobo ya tlamo ke kelo ya tsalo e
o e amogelang mo tlamong. Kelo ya thobo e tlhomamisitswe, ka mantswe a mangwe, e
nna e ntse e tshwana le fa tlamo e rekisiwa ka tlhotlhwa e e farologaneng mo nakong e
e tlang.
Market-oriented monetary policy measures These are policy measures by which
the Reserve Bank tries to guide or encourage financial institutions to take certain actions
on a voluntary basis. The effect of these measures is to increase or decrease the supply
of money in the economy. The measures include accommodation policy, open-market
policy, reserve asset requirements, and public debt management.
240 Economics 1B
Markgerigte monetre-beleidsmaatrels Dit is beleidsmaatrels waardeur die
Reserwebank finansile instellings probeer lei of oorreed om vrywillig sekere stappe
te doen. Die uitwerking van hierdie maatrels is om die geldvoorraad in die ekono-
mie te verminder of vermeerder. Hierdie maatrels sluit in akkommodasiebeleid,
opemarkbeleid, batereserwevereistes, en die bestuur van openbare skuld.
Imibandela yokulawula ezezimali ebhekiswe ezimakethe Lezi yizinyathelo
zomgomo lapho i-Reserve Bank izama khona ukukhuthaza izikhungo zemali ukuba zenze
okuthile ezingabheke nzuzo ngako. Umphumela walezi nyathelo kuba wukuncipha
noma ukwanda kwemali ekhona emnothweni.
Lezi nyathelo zingabandakanya umgomo wokubonelela, umgomo wemakethe
evulelekile, imibandela ephathelene nempahla egciniwe kanye nendlela yokwengamela
isikweletu somphakathi.
Imilinganiselo yomgaqo-nkqubo wemali ejolise emarikeni Le yimilinganiselo
yomgaqo-nkqubo eye iBhanki enguVimba yoMzantsi-Afrika ithi izame ukukhokela
okanye ukukhuthaza ngayo iibhanki ukuba zithathe amanyathelo ngokuzithandela kwazo.
Isiphumo salemilinganiselo kukwandisa okanye ukunciphisa imveliso yemali kuqoqosho.
Le milinganiselo iquka umgaqo-nkqubo wolungiselelo, wemarike evulelekileyo,
wezidingo zemali yoovimba nolawulo lwetyala likarhulumente.
Magato ao a ithekgilego ka mmaraka a leanotshepedio la dithelete A ke
magato a leanotshepedio ao ka wona Panka ya Resefe e lekago go hlahla goba go
hlohleleta ditheo ta dithelete gore di tee magato a itego ka boithaopo. Khueto ya
magato a ke go oketa goba go fokota kabo ya thelete ekonoming. Magato a a akareta
leanotshepedio la go phutha, leanotshepedio la mmaraka wo o bulegilego, dinyakwa
ta dithoto ta maaledi, le tshepedio ya melato ya sethaba.
Dikgato tsa maikemisetso tsa thelete tse di amanang le mmaraka Tse ke dikgato
tsa maikemisetso tse ka tsona Banka ya Rasefe e lekang go kaela kgotsa go tlhotlheletsa
ditheo tsa matlole go tsaya dikgato tse di rileng ka go ithaopa. Tshwaelo ya dikgato tse ke
go oketsa kgotsa go fokotsa tlamelo ya thelete mo ikonoming. Dikgato tse di akaretsa,
maikemisetso a kamogelo, maikemisetso a mmaraka o o bulegileng, ditlhokego tsa
letlotlo la rasefe le taolo ya molato wa sethaba.
Medium of exchange A medium of exchange is something that buyers generally use
and sellers generally accept as payment for goods and services, or that is generally
accepted as a settlement of debt.
Ruilmiddel n Ruilmiddel is iets wat kopers algemeen gebruik en verkopers algemeen
aanvaar as betaling vir goedere en dienste, of wat algemeen aanvaar word as n vereffe-
ning van skuld.
Indlela yokukhokhelana Lena yinto ngokwejwayelekile esetshenziswa ngabathengi
futhi yamukelwe ngabathengisi njengendlela yokukhokhela impahla noma umsebenzi
owenziwe kuba futhi yinto eyamukelwayo ukuthi iyindlela yokukhokha isikweletu.
Indlela yonaniselwano Indlela yonaniselwano yinto edla ngokusetyenziswa ngabathengi
nedla ngokwamkelwa ngabathengisi njengentlawulo yempahla neenkonzo okanye ethi
yamkelwe jikelele njengento ehlawula ityala.
ECS1601/1 241
Sediriwa sa phetolelano Sediriwa sa phetolelano ke se sengwe seo bareki ka
kakareto ba se diriago le seo barekii ba se amogelago ka kakareto, bjalo ka tefelo ya
diphahlo le ditirelo, goba seo se amogelwago ka kakareto bjalo ka selefedi sa dikoloto.
Kananyo e e dirisiwang Kananyo e e dirisiwang ke sengwe se badirisi ba se dirisang ka
kakaretso le se barekisi ba se amogelang jaaka tuelo ya dithoto le ditirelo kgotsa se se
amogelwang ka kakaretso go duela melato.
Monetary policy Monetary policy can be defined as decisions made or actions taken by
the monetary authorities to influence the quantity of money or the interest rate, with
the aim of achieving the macroeconomic objectives of stable prices, full employment and
economic growth.
Monetre beleid Monetre beleid kan gedefinieer word as besluite of stappe wat
deur die monetre owerheid geneem of gedoen word om die hoeveelheid geld of
die rentekoers te benvloed met die doel om die makro-ekonomiese doelstellings van
stabiele pryse, volle indiensneming en ekonomiese groei te bewerkstellig.
Inqubomgomo yezezimali Lezi yizinqumo noma izinyathelo ezithathwa yilabo
abayiziphathimandla kwezezimali ngenhloso yokulawula ubungako bemali, ukulawula
inzalo ekhokhelwa imali ebolekiwe konke lokhu bekwenza ngoba befuna ukuzuza
okuthile emnothweni njengamanani entengo emi ndawonye, ukuqashwa kwabantu
ngokugcwele kanye nokukhula komnotho.
Umgaqo-nkqubo wemali Umgaqo-nkqubo wemali ungachazwa njengezigqibo
ezenziwe okanye amanyathelo athatyathwe ngabalawuli bemali ukuphembelela umyinge
wemali okanye umyinge wenzala ngenjongo yokuphumeza iinjongo zoqoqosho lwelizwe
zamaxabiso azinzileyo, ingqesho epheleleyo nokuhluma koqoqosho.
Leanotshepedio la dithelete Leanotshepedio la dithelete le ka hlaloswa bjalo
ka diphetho te di dirwago goba dikgato te di tewago ke balaodi ba dithelete go
hueta bonti bja thelete goba kelo ya leokoto, ka nepo ya go fihlelela maikemieto
a ekonomi ka kakareto, a ditheko te di tieletego, thwalo ye e tletego ya baomi, le
kgolo ya ekonomi.
Maikemisetso a thelete Maikemisetso a thelete a ka tlhaloswa e le tshwetso e e
tserweng kgotsa kgato e e tserweng ke bathati ba thelete go tlhotlheletsa bogolo ba
thelete kgotsa kelo ya tsalo ka maikaelelo a go fitlhelela maikaelelo a magolo a ikonomi,
a ditlhotlhwa tse di tsepameng, thapo e e tletseng le kgolo ya ikonomi.
Money creation Banks need to keep only a certain percentage of the money that is
deposited with them, and can lend the rest of the money to other clients. By doing this,
more money is made available to work in the economy than the amount of money that
was originally deposited. This process of making a greater sum of money available is
called the money creation process.
242 Economics 1B
Geldskepping Banke hoef slegs n sekere persentasie van die geld wat by hulle
gedeponeer word, te hou, en kan die res aan ander klinte uitleen. Deur dit te doen,
maak hulle meer geld beskikbaar om in die ekonomie te werk as die bedrag geld wat
oorspronklik gedeponeer is. Hierdie proses waardeur n groter bedrag geld beskikbaar
gestel word, word die geldskeppingsproses genoem.
Ukusetshenziswa kwemali Amabhangi adinga ukugcina iphesenti elithile lamali efakwe
kuwona, kanti angakwazi ukuthi bese ebolekisa ngayo yonke enye imali kumakhasimende
awo. Ngokwenza lokhu kuba nemali eningi engasetshenziswa emnothweni wezwe
kunemali eyayifakwe ekuqaleni. Uhlelo lokwenza ukuthi kube nemali ethe xaxa ekhona
lubizwa ngokuthi wuhlelo lokusetshenziswa kwemali.
Ukusetyenziswa kwemali Iibhanki kufuneka zigcine inani elithile ekhulwini (%) lemali
efakwe kuzo kwaye zingabolekisa ngayo yonke enye imali kubaxhasi. Ngokwenza oku,
kutsho kufumaneke imali eninzi enokusetyenziswa kuqoqosho ngaphezu kwemali
ebifakwe ebhankini. Le ndlela yokwenza ukuba kubekho imali eninzi efumanekayo
ibizwa ngokuba kukusetyenziswa kwemali.
Go dirwa ga thelete Dipanka di hloka go boloka feela persente ye e itego ya thelete
ye e bolokwago go tona, gomme di ka adimia thelete ye e etego go badirelwa ba
bangwe. Ka go dira se, thelete ye ntinyana e a hwetagala go ka oma ekonoming go
feta thelete ye e bego e bolokilwe mathomong. Lenaneo le la go dira gore thelete ye
ntinyana e hwetagale, le bitwa lenaneo la go dira thelete.
Pako ya thelete Dibanka di tshwanelwa ke go tshola fela phesente e e rileng ya thelete
e e beeletswang le tsona mme di ka adima badirisi e nngwe. Ka go dira se, thelete e ntsi
e rebolwa go dira mo ikonoming go na le pokelelo ya thelete e e neng e beeleditswe mo
tshimologong. Kgato e ya go dira gore palo e kgolwane ya thelete e nne teng, e bidiwa
kgato ya go dira thelete.
Multiplier () The multiplier can be defined as the increase (or decrease) in total
expenditure as a result of an increase (or decrease) in one or more of the components
of expenditure, which in turn gives rise to a much greater increase (or decline) in total
income.
Vermenigvuldiger () Die vermenigvuldiger kan gedefinieer word as die toename (of
afname) in totale besteding as gevolg van n toename (of afname) in een of meer van die
bestedingskomponente, wat weer aanleiding gee tot n baie groter toename (of afname)
in totale inkomste.
Ukuphindaphinda () Ukuphindaphinda kungachazwa njengokukhula (noma
ukuncipha) kwemali esetshenzisiwe iyonke ngenxa yokukhula noma ukuncipha
kwesigaba noma kwezigaba ezithinta ukusetshenziswa kwemali nokuthatha kwenze
kube nokwenyuka okukhulu (noma nokwehla okukhulu) emalini engenile.
Uphindaphindo () Uphindaphindo lunokuchazwa njengokunyuka (okanye ukuhla)
kwenkcitho iyonke ngenxa yokunyuka (okanye yokwehla) kwecandelo elinye okanye
amaninzi enkcitho, ethi kamva ibangele ukwanda (okanye ukwehla) okuthe kratya
kwingeniso iyonke.
ECS1601/1 243
Seatii () Seatii se ka hlaloswa bjalo ka koketego (goba phokotego) ya palomoka
ya tshenyegelo ka lebaka la koketego (goba phokotego) ya e tee goba te dinti ta
dikarolo ta tshenyegelo, e lego seo ka bosona se dirago gore go be le koketego (goba
phokotego) ye kgolwane kudu ya palomoka ya ditseno.
Ntsifatso () Ntsifatso e ka tlhaloswa e le koketsego kgotsa (phokotsego) mo palong
yotlhe ya tshenyegelo ka ntlha ya tlhatlogo (kgotsa phokotsego) mo nngweng kgotsa
mo dikarolong tse dintsi tsa tshenyegelo e e nayang tlhatloso e kgolwane thata (kgotsa
phokotsego) mo palong yotlhe ya letseno.
National expenditure National expenditure of a country in a particular year is the
total expenditure of the country during that year. The figure for national expenditure
tells us how national income is spent on national production, in other words, how the
permanent residents of the country spend their money.
Nasionale besteding Die nasionale besteding van n land in n bepaalde jaar is die
totale besteding van die land in di jaar. Die syfer vir nasionale besteding vertel ons hoe
nasionale inkomste op nasionale produksie bestee word, met ander woorde, hoe die
permanente inwoners van die land hulle geld bestee.
Imali esebenze ezingeni likazwelonke Lena yimali esetshenziswe yizwe onyakeni
othile. Inani lemali esebenze ezingeni likazwelonke lisitshela ukuthi isetshenziswe
kanjani imali yezwe ekukhiqizeni, okuwukuthi izakhamuzi ezihlala ngokugcwele ezweni
ziyisebenzisa kanjani imali yazo.
Inkcitho yesizwe Inkcitho yesizwe yonyaka othile yinkcitho epheleleyo yelizwe ngaloo
nyaka uchaphazelekayo. Inani lenkcitho yesizwe lisixelela ngendlela echithwa ngayo imali
yelizwe kwimveliso yelizwe, oko kukuthi, indlela abemi belizwe abayichitha ngayo imali
yabo.
Tshenyegelo ya bosethaba Tshenyegelo ya bosethaba ya naga ngwageng wo o itego
ke palomoka ya ditshenyegelo ta naga ngwageng. Palo ya ditshenyegelo ta bosethaba
e re bota ka mo ditseno ta bosethaba di diriwago ka gona tweletong ya bosethaba,
ka mantu a mangwe, ka moo badudi ba lebaka ka moka ba dinaga ba diriago thelete
ya bona ka gona.
Tshenyegelo ya bosethaba Tshenyegelo ya bosethaba ya naga mo ngwageng o o rileng
ke palogotlhe ya tshenyegelo ya naga mo tsamaong ya ngwaga oo. Palo ya tshenyegelo ya
sethaba e re bolelela gore letseno la sethaba le dirisiwa jang mo dikumong tsa sethaba,
ka mantswe a mangwe, ka moo baagi ba leruri ba naga ba dirisang thelete ya bona ka
gona.
Net domestic product (NDP) NDP can be defined as the total value of final goods
and services that are produced within the borders of a country during a specific period
after the consumption of capital has been deducted.
Netto binnelandse produk (NBP) Die NBP kan gedefinieer word as die totale
waarde van finale goedere en dienste wat tydens n bepaalde tydperk binne die grense
van n land geproduseer word nadat die verbruik van kapitaal afgetrek is.
244 Economics 1B
Insalela yomkhiqizo wasekhaya (NDP) Lokhu kusho inani lempahla ekhiqiziwe kanye
nomsebenzi owenziwe waphothulwa ngaphakathi kwemingcele yezwe esikhathini
esithile esinqunyiwe. Kuleli nani kusuke kususwe lokho okube zindleko zebhizinisi.
Intsalela yemveliso yelizwe (NDP) Intsalela yemveliso yelizwe ingachazwa
njengexabiso elilonke lemveliso okanye iinkonzo eziveliswa kwimida yelizwe ngethuba
elithile emva kokuba imali esetyenzisiweyo sele itsaliwe.
Ditweletwa te di alago ta ka gare ga naga (NDP) Se se ka hlaloswa bjalo ka
boleng-moka bja diphahlo te di feletego le ditirelo te di tweletwago ka mellwaneng
ya naga lebakeng le le itego, morago ga gore go nthwe tirio ya kapetlele.
Neto ya kumo ya selegae (NDP) NDP e ka tlhaloswa e le boleng botlhe ba dithoto tse
di feletseng le ditirelo tse di tlhagisiwang mo teng ga melelwane ya naga mo tsamaong ya
ngwaga o o rileng morago ga gore go ntshiwe tiriso ya letlotlo.
Nominal GDP Nominal GDP for a year tells us how much has been produced in that
year by giving us the total amount, in money, of everything that was produced. Nominal
GDP is thus the total money value of production. Unlike real GDP, nominal GDP is
therefore not adjusted for the effect of inflation.
Nominale BBP Nominale BBP vir n jaar toon hoeveel in daardie jaar geproduseer is
deur vir ons die totale bedrag geld te gee van alles wat geproduseer is. Nominale BBP is
dus die totale geldwaarde van produksie. Anders as rele BBP is nominale BBP dus nie
vir die effek van inflasie aangepas nie.
Inani lonke lomkhiqizo wezwe Inani lonke lomkhiqizo wezwe wonyaka lisitshela
ukuthi ungakanani umkhiqizo owenziwe ngalowo nyaka ngokusinika inani eliyimali
lomkhiqizo uwonke. Ngakho isibalo sisonke somkhiqizo wezwe siyisilinganiso semali
yomkhiqizo. Inani lonke lomkhiqizo wezwe alifani ne-GDP yangempela ngoba lona
awukwazi ukuliguqula ngenhloso yokudala umphumela othile ekwehleni kwamandla
emali.
Inani lemveliso yelizwe Inani lemveliso yelizwe lisixelela ngemveliso evelisiweyo
kuloo nyaka ngokuthi lisinike isixa sisonke semali sento yonke ethe yaveliswa. Lilonke,
inani lemveliso yelizwe lixabiso lemali lilonke lemveliso. Inani lemveliso yelizwe lahluka
kwimveliso yelizwe iyonke ngokuba yona ayilungelelaniswa ukulungiselela unyuso-
maxabiso.
Ditweletwamoka ta motheo ta ka gare ga naga Ditweletwamoka ta motheo
ta ka gare ga naga ngwageng di re bota gore go tweleditwe bokae ngwageng woo
ka go re fa palomoka, ka thelete, ya se sengwe le se sengwe seo se tweleditwego.
Ditweletwamoka ta motheo ta ka gare ga naga, ka lebaka leo, ke boleng-moka bja
thelete bja tweleto. Go se swane le Ditweletwamoka ta kgonthe ta ka gare ga
naga, ditweletwamoka ta motheo ta ka gare ga naga ga di beakanyetwe khueto ya
infleiene.
ECS1601/1 245
Palogotlhe ya boleng jwa dikumo tsa naga Palogotlhe ya boleng jwa dikumo tsa
naga ya ngwaga e re bolelela gore go tlhagisitswe go le kana kang mo ngwageng oo ka
go re naya palogotlhe ya seboka, ka thelete, ya sengwe le sengwe se se tlhagisitsweng.
Ka jalo palogotlhe ya GDP ke palogotlhe ya thelete ya boleng bo bo tlhagisitsweng.
Go farologana le GDP tota, palogotlhe ya GDP ka moo ga e baakanyetswe sephetho sa
infoleiene.
Non-excludability Public goods (e.g. street lights) have a characteristic called non-
excludability: you cannot exclude anyone from using these goods.
Nie-uitsluitbaarheid Openbare goedere (bv. straatligte) het n kenmerk wat as nie-
uitsluitbaarheid bekend staan: niemand kan daarvan uitgesluit word om hierdie goedere
te gebruik nie.
Ezingakhethi Eminye imikhiqizo esetshenziswa wumphakathi (njengezibani
zasemgwaqeni) inophawu olubizwa ngokuthi wukungakhethi: okusho ukuthi awukwazi
ukubeka imibandela yokuthi ubani ongewusebenzise lowo mkhiqizo.
Ezivulelekileyo Izinto eziyimfuneko kuluntu (umzekelo izibane zezitalato) zifikeleleka
kumntu wonke: akukho mntu unokuvinjwa ithuba lokuzisebenzisa.
Te di sa tingwego Diphahlo ta mang le mang (mohlala ke mabone a mekgobeng)
di na le tsebego ye e hlaloswago bjalo ka te di sa tingwego: o ka se thibele mang goba
mang go di diria.
Tse di sa kgethololeng Dithoto tsa sethaba (sekao, mabone a mebila) di na le
pharologantsho e e sa kgethololeng: o ka se kgetholole mongwe go dirisa dithoto tse.
Open-market policy Open-market policy is an instrument of monetary policy. It refers
to the purchase and sale of government stock by the SARB on the open market. The
purpose of these transactions is to regulate the quantity of money and/or interest rates.
Opemarkbeleid Opemarkbeleid is n monetrebeleid-instrument. Dit verwys na die
koop en verkoop van staatseffekte deur die SARB in die ope mark. Die doel met di
transaksies is om die hoeveelheid geld en/of rentekoerse te reguleer.
Umgomo wemakethe evulelekile Leli ngelinye lamaphuzu omgomo wokulawulwa
kwezezimali.
Lisho ukuthengwa noma ukuthengiswa kwesitokwe sikahulumeni sithengiswa yi-South
Africa Reserve Bank emakethe evulekile. Inhloso yalesi sinyathelo wukulawula ubungako
bemali kanye nenzalo ekhokhelwa izimali ezibolekiwe.
Umgaqo-nkqubo wemarike evulelekileyo Umgaqo-nkqubo wemarike evulelekileyo
sisixhobo somgaqo-nkqubo wemali. Ubhekiselela kwintengo nakwintengiso yemali
karhulumente yiBhanki enguVimba yoMzantsi-Afrika kwimarike evulelekileyo. Injongo
yoku kukumisela imithetho elawula ubungakanani bemali kunye/okanye imiyinge
yeenzala.
246 Economics 1B
Leanotshepedio la mmaraka wo o bulegilego Leanotshepedio la mmaraka wo o
bulegilego ke sediriwa sa leanotshepedio la dithelete. Le upeta go theko le thekio
ya dilotwa ta mmuo ke Panka ya Afrika Borwa ya Resefe mmarakeng wo o bulegilego.
Morero wa dipapatiano te ke go sepedia bonti bja thelete le/goba dikelo ta
maokoto.
Maikemisetso a mmaraka o o bulegileng Maikemisetso a mmaraka o o bulegileng
ke sedirisiwa sa maikemisetso a thelete. O kaya theko le thekiso ya Banka ya Rasefe ya
thoto ya mmuso mo mmarakeng o o bulegileng. Maikaelelo a thefosano e ke go laola
bontsi jwa thelete/kgotsa kelo ya tsalo.
Openness of the economy The openness of a countrys economy is the extent of the
countrys involvement in trade with other countries.
Oopheid van die ekonomie Die oopheid van n land se ekonomie is die omvang van
die land se betrokkenheid by handel met ander lande.
Ukuvuleleka komnotho Ukuvuleleka komnotho wezwe kusho ukuthi izwe
lizibandakanya kangakanani ekuhwebelaneni namanye amazwe.
Ukuvuleleka koqoqosho Ukuvuleleka koqoqosho lwelizwe bubungakanani
bokubandakanyeka kwelizwe kurhwebo namanye amazwe.
Go bulega ga ekonomi Go bulega ga ekonomi ya naga ke kelo ya kamego ya naga
kgwebianong le dinaga te dingwe.
Pulego ya ikonomi Pulego ya ikonomi ya naga ke ka moo naga e amegang ka gona le
dinaga tse dingwe mo kgwebong.
Other investment Other investment is a residual (remaining) category that is included
as an item in the financial account of the balance of payments. It refers to all finan-
cial transactions that are not included under foreign direct investment or portfolio
investment.
Ander investering Ander investering is n reskategorie (oorblywende kategorie) wat
as n inskrywing in die finansile rekening van die betalingsbalans verskyn. Dit verwys
na alle finansile transaksies wat nie onder direkte investering of portefeulje-investering
ingesluit is nie.
Okunye ukutshalwa kwezimali Lona ngumkhakha osalayo ofakwa njengephuzu
e-akhawuntini yezimali isilinganiso senkokhelo. Ngawo kuqondiswe kuwona wonke
amaphuzu okuhwebelana ezimali angafakiwe ngaphansi kwemali etshalwe ivela
emazweni angaphandle noma esikhwameni sokutshalwa kwezimali.
Olunye utyalo-mali Olunye utyalo-mali luluhlu olushiyekileyo oluthi lufakwe njengotyalo-
mali kwiakhawunti yemali kulungelelwaniso lweentlawulo. Lubhekiselele kuyo yonke
imali ethi ingaqukwa phantsi kotyalo-mali olungqalileyo lwelizwe langaphandle okanye
kutyalo-mali lwezinto ezithengiswayo.
ECS1601/1 247
Dipeeleto te dingwe Dipeeleto te dingwe ke legoro le le alago (maaledi) leo
le akaretwago bjalo ka hlogwana akhaonteng ya dithelete ya tekatekano ya ditefelo.
E upeta dipapatianong ka moka ta dithelete te di sa akaretwago ka tlase ga
dipeeleto ta thwii ta dinaga ta ntle goba dipeeleto ta potfolio.
Dipeeletso tse dingwe Dipeeletso tse dingwe ke setlhopha sa masalela (se se setseng)
sa dintlha tse di akaretswang mo tshupatlotlong ya dithelete tsa pharologano ya kananyo.
E kaya ditirisano tsotlhe tsa dithelete tse di sa akaretswang mo dipeeletsong tse di
tlhamaletseng tsa bodithaba.
Payments for services This is an item in the current account of the balance of payments.
It is money paid out by South Africans to people from foreign countries for services.
Betalings vir dienste Dit is n inskrywing in die lopende rekening van die betalingsbalans.
Dit is geld wat deur Suid-Afrikaners aan mense uit die buiteland vir dienste uitbetaal is.
Ukukhokhelwa kwemisebenzi Leli ngelinye lamaphuzu e-akhawuntini yesheke
yesilinganiso senkokhelo. Lena yimali ekhokha ngabantu baseNingizimu Afrika
bekhokhela abantu basemazweni angaphandle ngomsebenzi abenzelwe wona.
Iintlawulo zeenkonzo Lo ngumba we-akhawunti yetshekhi kulungelelwaniso
lweentlawulo. Yimali ehlawulelwa iinkonzo ngabemi boMzantsi-Afrika kubantu bamanye
amazwe.
Ditefelo ta ditirelo Ye ke hlogo akhaonteng ya moela ya tekatekano ya ditefelo. Ke
thelete yeo e lefelwago ke badudi ba Afrika Borwa go batho ba go twa ka dinageng ta
ntle, go hweta ditirelo.
Tuelo ya ditirelo Se ke ntlha mo tshupatlotlong ya pharologano ya kananyo. Ke madi a
MaAforika Borwa a a duelelang ditirelo tsa batho ba dinaga tsa bodithaba.
Population The population of a country is the number of people living in that country.
Bevolking n Land se bevolking is die getal mense wat in di land woon.
Izakhamuzi zezwe Lesi yisibalo sabantu abayizakhamuzi zezwe.
Abemi belizwe bebonke Linani labo bonke abantu abahlala elizweni.
Badudi Badudi ba naga ke palo ya batho bao ba dulago ka nageng.
Baagi Baagi ba naga ke palo ya batho botlhe ba ba nnang mo nageng eo.
Portfolio investment This is a type of capital transaction that is recorded in the financial
account of the balance of payments. It refers to the purchase of assets such as bonds, or
shares on the securities exchange, where the investor is interested only in the expected
financial return on the investment.
248 Economics 1B
Portefeulje-investering Dit is n tipe kapitaaltransaksie wat in die finansile rekening
van die betalingsbalans aangeteken word. Dit verwys na die koop van bates soos effekte,
of aandele op die sekuriteitebeurs, waar die belegger slegs in die verwagte finansile
opbrengs op die investering belangstel.
Isikhwama semali etshaliwe Lolu wuhlobo lwephuzu lohwebo oluthinta impahla
yebhizinisi olurekhodwayo esilinganisweni senkokhelo. Ngalo kuqondwe ukuthengwa
kwamabhondi namasheya ezindaweni ezinika isibambiso, lapho uthola khona ukuthi
umtshalimali intshisekelo yakhe isenzuzweni azoyenza kuphela ngemali ayilondolozile.
Utyalo-mali lwentengo Ludidi lotyalo-mali oluthi lubhalwe kwi-akhawunti yemali
kulungelelwaniso lweentlawulo. Lubhekiselele kwimpahla ethengwayo njengebhondi
okanye izabelo ekunaniselwana ngazo apho umtyali-mali abanomdla kuphela kwinzuzo
yotyalo-mali olo.
Dipeeleto ta potfolio Wo ke mohuta wa papatiano ya kapetlele ye e ngwalwago ka
akhaonteng ya dithelete ya tekatekano ya ditefelo. E upeta go theko ya dithoto ta go
swana le dibonto, goba diere phetolelanong ya ditiieto, moo mmeeleti a kgahlwago
feela ke dipoelo te di letetwego ta dithelete peeletong.
Dipeeletso tsa kgatlhegelo ya dipoelo Ono ke mohuta wa ditirisano tsa matlotlo
o o tlhagelelang mo tshupatlotlong ya dithelete tsa pharologano ya kananyo. Di kaya
go rekwa ga matlotlo a a jaaka ditlamo/dibonto, kgotsa dikarololelo mo kananyong ya
matlotlo a tlhomamo a mo go ona mmeletsi a nang le kgatlhegelo fela mo dipoelong tsa
dipeeletso.
Poverty There is poverty in a society when there are people whose level of income is
so low that they cannot have a reasonable standard of living.
Armoede Daar is armoede in n gemeenskap as daar mense is wie se inkomstevlak so
laag is dat hulle nie n redelike lewenstandaard kan handhaaf nie.
Ubuphofu Kusuke kunenhlupheko emphakathini uma kunabantu abahola imali encane
ngendlela bangakwazi ukuphila impilo esezingeni elamukelekayo.
Ubuhlwempu Ubuhlwempu elizweni bubakho xa isininzi sabantu singenamsebenzi
(singaphangeli) okanye nabo baphangelayo befumana imivuzo ephantsi kangangokuba
bangabi nakho ukuphila impilo efanelekileyo.
Bohloki Go na le bohloki leagong ge go na le batho bao maemo a bona a ditseno a lego
tlase mo e lego gore ga ba kgone go ba le maemo ao a kwagalago a lephelo.
Lehuma Go na le lehuma mo morafeng fa go na le batho ba letseno la bona le leng kwa
tlase thata, mme ba sa kgone go tshela botshelo bo bo siameng.
Price index A price index shows the ratio of the price of a product (or combination
of products) to the price of the same product (or combination of products) at another
time.
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Prysindeks n Prysindeks toon die verhouding van die prys van n produk (of kombinasie
produkte) tot die prys van dieselfde produk (of kombinasie produkte) op n ander tydstip.
Inkomba yamanani Inkomba yamanani iveza ubudlelwano phakathi kwenani lomkhiqizo
(noma inhlanganisela yemikhiqizo ethile) lapho liqhathaniswa nenani lomkhiqizo (noma
inhlanganisela yemikhiqizo ethile) ofanayo ngesinye isikhathi.
Isalathiso sexabiso Isalathiso sexabiso sibonakalisa ireshiyo yexabiso lemveliso (okanye
leemveliso ezidityanisiweyo) kwimveliso ekwafanayo (kwiimveliso ezidityanisiweyo)
zelinye ixesha.
Thupane ya ditheko Thupane ya ditheko e laeta kabo ya theko ya setweletwa
(goba kopanyo ya ditweletwa) go theko ya setweletwa sona seo (goba kopanyo ya
ditweletwa), lebakeng le lengwe.
Tshupane ya ditlhotlwa Tshupane ya tlhotlhwa e supa kabo ya tlhotlhwa ya kumo
(kgotsa kopano ya dikumo) mo tlhotlhweng ya kumo yona eo (kgotsa kopano ya dikumo)
mo nakong e nngwe.
Primary income payments Primary income payments are taken into account when
gross national product (GNP) is calculated. These payments are the sum of the earnings
from factors of production that belong to people who are not citizens of the country,
for example profits, interest and rent that foreigners have earned by investing in South
Africa, as well as all wages and salaries earned by foreigners in South Africa.
Primre inkomstebetalings Primre inkomstebetalings word in ag geneem wanneer
die bruto nasionale produk (BNP) bereken word. Hierdie betalings is die totale
verdienste uit produksiefaktore wat behoort aan mense wat nie burgers van die land is
nie, byvoorbeeld wins, rente en huur wat buitelanders verdien het deur in Suid-Afrika te
bel, asook alle lone en salarisse wat deur buitelanders in Suid-Afrika verdien is.
Ukukhokhwa kwamaholo asesigabeni sokuqala Ukukhokhwa kwamaholo
asesigabeni sokuqala kuyabalwa lapho kubalwa isamba somkhiqizo kazwelonke (GNP).
Lezi yizimali ezikhokhwa ngezidingo zomkhiqizo zabantu abangezona izakhamuzi
zezwe, isibonelo: inzuzo, inzalo kanye nerenti etholwe ngabantu basemazweni
angaphandle ngokutshala izimali zabo eNingizimu Afrika, kanjalo nayo yonke imali
eholelwe abantu bakwamanye amazwe.
Iintlawulo zokuqala zengeniso Iintlawulo zokuqala zengeniso zithathelwa ingqwalaselo
xa kubalwa imveliso yelizwe iyonke (GNP). Ezi ntlawulo ziba sisixa semivuzo efunyanwa
kwimveliso eyiyeyabantu abangengobemi belizwe, umzekelo: inzuzo, inzala nemali
yengqeshiso efunyanwa ngabantu bamazwe angaphandle ngokutyala imali eMzantsi-
Afrika kunye nemivuzo efunyanwa ngabemi bamazwe angaphandle eMzantsi-Afrika.
Ditefelo ta motheo ta ditseno Ditefelo ta motheo ta ditseno di elwa hloko
ge ditweletwamoka ta bosethaba (GNP) di ongwa. Ditefelo te ke palomoka ya
dipoelo ta go twa go didiriwa ta tweleto te e lego ta batho bao e sego badudi
ba naga, mehlala ke, dipoelo, maokoto le rente teo di hweditwego ke batwantle
ka go beeleta ka mono Afrika Borwa, gammogo le meputso ka moka le megolo ye e
hweditwego ke batwantle ka mono Afrika Borwa.
250 Economics 1B
Dituelo tsa letsenolegolo Dituelo tsa letsenolegolo di tsewa tsia fa go balelwa
palogotlhe ya dikumo tsa bosethaba (GNP). Dituelo tse ke palo ya dipoelo go tswa
mo mabakeng a tlhagiso a batho ba e seng baagi ba naga, dikao ke, dipoelo, ditsalo le
dirente tse di amogetsweng ke badithaba ka go beeletsa mo Aforika Borwa mmogo le
dituelo le ditefo tse di amogelwang ke badithaba mo Aforika Borwa.
Primary income receipts Primary income receipts are taken into account when gross
national product (GNP) is calculated. These receipts are the sum of the revenue received
by South Africans in foreign countries, including interest, profits, wages and salaries.
Primre inkomste-ontvangste Primre inkomste-ontvangste word in ag geneem
wanneer die bruto nasionale produk (BNP) bereken word. Hierdie ontvangste is al die
inkomste wat deur Suid-Afrikaners in die buiteland ontvang word, insluitend rente, wins,
lone en salarisse.
Amaholo asesigabeni sokuqala Amaholo asesigabeni sokuqala ayabalwa lapho kubalwa
isamba somkhiqizo wasekhaya (GNP). Lezi yizimali ezitholwe ngabantu baseNingizimu
Afrika abasemazweni angaphandle, lapha kubalwa nenzalo, inzuzo kanye namaholo.
Iirisithi zengeniso yokuqala Iirisithi zokuqala zengeniso zithathelwa ingqwalaselo
xa kubalwa imveliso yelizwe iyonke (GNP). Ezi risithi ziba sisixa sengeniso yelizwe
efunyenwe ngabemi boMzantsi-Afrika kumazwe angaphandle kwaye ziquka inzala,
inzuzo, ingeniso nemivuzo.
Dikamogelo ta motheo ta ditseno Dikamogelo ta motheo ta ditseno di elwa
hloko ge ditweletwamoka ta bosethaba (GNP) di ongwa. Dikamogelo te ke
palomoka ya ditseno te di hweditwego ke badudi ba Afrika Borwa ka dinageng ta ntle,
go akaretwa maokoto, dipoelo, meputso le megolo.
Dikamogelo tsa letsenolegolo Dikamogelo tsa letsenolegolo di tsewa tsia fa go balelwa
palogotlhe ya dikumo tsa bosethaba (GNP). Dikamogelo tseno ke palo ya letseno le le
amogetsweng ke baagi ba Aforika Borwa ba ba leng kwa dinageng disele; go akaretswa
morokotso, dipoelo, dituelo le ditefo.
Primary market This is any market on which securities are issued for the first time with
the purpose of obtaining funds for consumer or investment purposes.
Primre mark Dit is enige mark waarop sekuriteite vir die eerste maal uitgereik word
met die doel om fondse te verkry vir verbruiks- of investeringsdoeleindes.
Imakethe yesigaba sokuqala Lapha kukhulunywa nganoma yiyiphi imakethe ekhipha
izibambiso okokuqala ngoba ifuna ukuthola izimali ezizosetshenziswa noma izimali
ezizolondolozwa.
Imarike yokuqala Yiyo nayiphi na imarike ekhutshelwa izibambiso (izibambiso-mali)
okokuqala ngenjongo yokufumana imali enokusetyenziswa okanye enokutyalwa.
Mmaraka wa motheo Wo ke mmaraka ofe goba ofe moo go nthwago mangwalo a
bong bja dithoto la mathomo ka maikemieto a go hweta dithelete ta merero ya
badirii goba ya dipeeleto.
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Mmarakamogolo Ke mmaraka mongwe le mongwe o mo go ona go rebolwang
matlotlotlamo mo lekgethong la ntlha ka maikaelelo a go bonela badirisi matlole kgotsa
ka maikaelelo a go beeletsa.
Privatisation Privatisation means the transfer of ownership of assets from the public
sector to the private sector that is, the selling of state-owned assets to the private
sector.
Privatisering Privatisering beteken die oordrag van eienaarskap van bates van die
openbare sektor na die privaat sektor, dit wil s die verkoop van staatsbates aan die
privaat sektor.
Ukwedluliselwa kobunikazi bamabhizinisi ezinkampanini ezizimele Kusho
ukushintsha kobunikazi bempahla ebikade kungekahulumeni nesizoba ngeyezinkampani
ezizimele lokhu kusho ukuthengiswa kwempahla kahulumeni ithengiselwa izinkampani
ezizimele.
Unikezelo lwamashishini kwicandelo langasese Kuthethwa ukunikezelwa kobunini
bezinto ebeziphantsi kukarhulumente kwicandelo langasese ngamanye amazwi,
kukuthengiswa kwezinto zikarhulumente kwicandelo (iqumrhu) langasese.
Poraebetafato Poraebetafato ke phetieto ya bong bja dithoto go tloga lekaleng la
mmuo go ya go la poraebete ke go re go rekietwa ga dithoto ta mmuo go lekala
la poraebete.
Poraebetaeso Poraebetaeso e kaya go fetisetsa bo beng ba matlotlo go tswa mo
lekaleng la puso go ya kwa lekaleng la poraebete ke fa matlotlo a mmuso a rekisetswa
lekala la poraebete.
Producer price index (PPI) This is an index of the prices of a representative basket of
capital and intermediary goods. It is also known as the wholesale price index.
Produksieprysindeks (PPI) Dit is n indeks van die pryse van n verteenwoordigende
mandjie kapitaal- en intermedire goedere. Dit word ook die groothandelsprysindeks
genoem.
Inkomba yenani lomkhiqhizi (PPI) Lena yinkomba yenani likabhasikidi wempahla
eyisidingo sebhizinisi noma efaka umxhumanisi. Iphinde yaziwe ngenkomba yentengo
yaseholiseyili.
Isalathiso sexabiso lemveliso (PPI) Sisalathiso samaxabiso amele imali eyinkunzi
nempahla yobunozakuzaku. Sikwabizwa ngokuba sisalathiso sexabiso liphela.
Thupane ya ditheko ya motweleti (PPI) Ye ke thupane ya ditheko ya kelo ye e
emelago te dingwe ya kapetlele le ya diphahlo ta dikemedi. E tsebega gape bjalo ka
tshupane ya ditheko ta holesele.
Tshupane ya tlhotlhwa ya batlhagisi ba dikumo (PPI) Se ke tshupane ya ditlhotlhwa
tsa seroto se se emelang matlotlo le dithoto tse di dirisiwang go dira tse dingwe. E itsege
gape jaaka tshupane ya kgwebokgolo.
252 Economics 1B
Productivity Productivity is the amount of output produced by workers in a certain
time, or output divided by input.
Produktiwiteit Produktiwiteit is die hoeveelheid uitset wat in n sekere tyd deur
werkers geproduseer word, of uitset gedeel deur inset.
Ukukhiqiza Lokhu wubungako bomkhiqizo owenziwe ngabasebenzi esikhathini esithile
noma umkhiqizo uwuhlukanisa ngalokho okuchithile ekutheni wenzeke.
Imveliso Imveliso ngumyinge othile wegalelo labasebenzi kuloo msebenzi wenziwayo
ngexesha elithile, okanye ingeniso ebalelwa kwigalelo.
Tweleto Tweleto ke kelo ya ditweletwa teo di tweletwago ke baomi nakong
ye e itego, goba ditweletwa ge di arolwa ka didiriwa ta go oma.
Kumiso Kumiso ke pokelelo ya ntsho e e tlhagisiwang ke badiri mo nakong e e rileng
kgotsa ntsho e e arotsweng ka tsenyo.
Progressive tax This is a type of income tax system in which people pay tax in
accordance with how much they earn. The more they earn, the more tax they pay, and
the less they earn, the less they pay.
Progressiewe belasting Dit is n tipe inkomstebelastingstelsel waarin mense belasting
betaal ooreenkomstig met wat hulle verdien. Hoe meer hulle verdien, hoe meer belasting
betaal hulle, en hoe minder hulle verdien, hoe minder betaal hulle.
Intela eya ngeholo lomuntu Lolu wuhlobo lwentela lapho abantu bekhokha ngokuthi
bahola malini. Uma umuntu ehola kakhulu, nentela ayikhokhayo iba nkulu, kuthi lapho
ehola kancane nentela ayikhokhayo ibe ncane.
Irhafu ebalelwa kumvuzo Ludidi lwerhafu etsalwa emvuzweni apho umntu (okanye
umsebenzi) ahlawula irhafu ngokomyinge womvuzo wakhe. Okukhona ehlawulwa
kakhulu, kokukhona ehlawula irhafu kakhulu, ukuze okukhona ehlawulwa umvuzo
omncinci, kokukhona ehlawula irhafu encinci.
Mothelo wo o twelago pele Le ke lenaneo la mothelo wa ditseno woo ka wona
batho ba lefelago mothelo go ya ka mo ba golago ka gona. Ge ba gola thelete ye nti, ba
lefa mothelo wa godimo, gomme ge ba gola thelete ya tlase, ba lefa mothelo wa tlase.
Lekgetho go ya ka letseno Ono ke mohuta wa thulaganyo ya lekgetho la letseno o mo
go ona batho ba duelang lekgetho go ya ka moo ba amogelang ka gona. Fa o amogela go
le go ntsi, o tla duela lekgetho le le ntsi, fa o amogela go le go nnye, o tla duela lekgetho
le le nnye.
Proportional tax Proportional tax is a tax that is charged at a rate that does not change
as the taxable amount increases. The average tax rate is therefore the same at all income
levels. In other words, tax is paid at a flat rate.
Proporsionele belasting Proporsionele belasting is belasting wat gehef word teen n
koers wat nie verander namate die belasbare bedrag styg nie. Die gemiddelde belasting-
koers is dus dieselfde vir alle inkomstevlakke. Met ander woorde, belasting word teen
n uniforme koers betaal.
ECS1601/1 253
Intela engaguquki Lolu wuhlobo lwentela olungaguquki lapho imali okumele ikhokhelwe
intela iguquka. Ngamanye amazwi yintela ekhokhwa ngezinga elifanayo kuzona zonke
izigaba zomholo. Okuwukuthi intela ekhokhwayo iyefana kuwo wonke umuntu.
Irhafu emileyo Irhafu emileyo yirhafu emyinge ungaguquki nokunyuka komvuzo.
Ngumyinge werhafu ofanayo kuwo onke amanqanaba emivuzo. Ngamanye amazwi,
yirhafu eqingqiweyo.
Mothelo wa tekanelo Mothelo wa tekanelo ke mothelo wo o lefiwago ka kelo
ye e sa fetogego ge thelete yeo e lefiwago mothelo e hlatloga. Kelo ya palogare
ya mothelo, ka lebaka leo, e dula e swana magatong kamoka a ditseno. Ka mantu a
mangwe, mothelo o lefiwa ka kelo ye e sa fetogego.
Lekgetho la tekano Lekgetho la tekano ke lekgetho le le duedisiwang go ya ka kelo e
e sa fetogeng fa madi a a kgethisiwang a oketsega. Ka jalo palogare ya kelo ya lekgetho e
tshwana mo maemong otlhe. Ka mantswe a mangwe, lekgetho le duelwa ka go tshwana.
Public debt Public debt is the debt of the government of a country. Public debt exists
when government expenditure exceeds government revenue.
Openbare skuld Openbare skuld is die skuld van n land se regering. Daar is openbare
skuld wanneer owerheidsbesteding meer is as staatsinkomste.
Isikweletu sikahulumeni Lesi yisikweletu sikahulumeni wezwe. Uhulumeni uba
nesikweletu uma imali ayisebenzisayo ingaphezulu kwemali ayitholayo.
Ityala likarhulumente Lityala analo urhulumente welizwe. Ityala likarhulumente
libakho xa inkcitho karhulumente ingaphezulu kunengeniso yelizwe.
Molato wa mmuo Molato wa mmuo ke molato wa mmuo wa naga. Molato wa
mmuo o ba gona ge tshenyegelo ya mmuo e feta ditseno ta mmuo.
Molato wa puso Molato wa puso ke molato wa mmuso wa naga. Molato wa puso o nna
teng fa tshenyegelo ya mmuso e feta letseno la mmuso.
Public goods Goods that are consumed by the community or society; no one can be
excluded from using them. An example is a public road.
Openbare goedere Goedere wat verbruik word deur die gemeenskap; niemand kan
verbied word om dit te gebruik nie. n Voorbeeld is n openbare pad.
Impahla yomphakathi Lapha kukhulunywa ngempahla esetshenziswa ngumphakathi;
akekho ongenqatshelwa kumbe ashiywe ngaphandle ekuyisebenziseni. Isibonelo salokhu
ngumgwaqo.
Impahla yoluntu Yimpahla esetyenziswa luluntu okanye sisizwe; akukho mntu
walelwayo ukuba ayisebenzise. Umzekelo woku ziindlela.
Diphahlo ta mang le mang Diphahlo te di diriwago ke badudi goba leago; ga go
motho yo a ka se akaretwego go tona. Mohlala ke tsela ya mang le mang.
254 Economics 1B
Dithoto tsa sethaba Dithoto tse di dirisiwang ke sethaba kgotsa baagi; ga go ope yo
a ka kgethololwang mo go di diriseng. Sekao ke tsela ya sethaba.
Quantity theory of money This is a monetarist theory that explains how changes in
the monetary sector are transmitted to the real sector. According to this theory, the
velocity of circulation of money, V, is stable, and as a result we can accurately predict the
effects of changes in the quantity of money by applying the equation of exchange (MV
= PQ).
Kwantiteitsteorie van geld Dit is n monetaristiese teorie wat verduidelik hoe
veranderings in die monetre sektor na die rele sektor oorgedra word. Volgens hierdie
teorie is die omloopsnelheid van geld, V, stabiel, en daarom kan ons die uitwerking van
veranderings in die hoeveelheid geld akkuraat voorspel deur die ruilvergelyking toe te
pas (MV = PQ).
Umbono ngobukhulu bemali Lona ngumbono walabo abazi ngezimali ochaza ukuthi
uguquko olusemkhakheni wezemali kwenzeka kanjani ukuthi lokhu kwedlulele empilweni.
Ngokwalombono isivinini sokujikeleza kwemali nesikhonjiswa ngo-V asiguquki kanti
lokho kwenza sikwazi ukuqagela imiphumela ezodalwa wuguquko lobungako bemali
ngokuthi sisebenzise le ndlela yokubala (MV = PQ).
Uluvo lomyinge wemali Olu luluvo olubhekiselele emalini oluchaza indlela
elitshintshelwa ngayo icandelo lemali kwicandelo lokwenene. Ngokolu luvo, isantya
sokuhamba kwemali ngo-V sizinzile, ngoko ke sinakho ukuzithelekelela ngokuchanekileyo
iziphumo zeenguqu kumyinge wemali ngokusebenzisa umlinganiselo wonaniselwano
(MV = PQ).
Teori ya bokaakang bja thelete Ye ke teori ya dithelete ye e hlalosago ka mo
diphetoeto ta dithelete di sepetwago ka gona go ya go makala a mangwe. Go ya
ka teori ye lebelo la modikologo wa thelete, V ga le fetoge gomme ka lebaka leo re ka
akanya ka go nepa gore go tla ba le dikhueto dife ta diphetogo kelong ya thelete ka go
diria tekanyo ya phetolelano (MV = PQ).
Tiori ya bokanakang ba thelete E ke tiori ya dithelete e e tlhalosang ka moo
diphetogo mo lekaleng la thelete di fetisetswang ka gona go lekala tota. Go ya ka tiori
e bolebelo ba go ananngwa ga madi, V, bo tlhomame, mme ka ntlha ya seo, re ka kgona
go bonelapele ka nepagalo tlhotlheletso ya diphetogo mo selekanong sa madi ka go
diragatsa tekatekano ya kananyo (MV = PQ).
Real GDP Real GDP is the total value of final goods and services produced within the
borders of a country in one year, measured against constant prices (prices in a certain
base period). It is also known as GDP at constant prices. Real GDP is thus nominal GDP
that has been adjusted for the effect of inflation.
Rele BBP Die rele BBP is die totale waarde van finale goedere en dienste wat in een
jaar binne die grense van n land geproduseer is, gemeet teen konstante pryse (pryse in
n sekere basistydperk). Dit staan ook bekend as BBP teen konstante pryse. Rele BBP
is dus nominale BBP wat aangepas is vir die effek van inflasie.
ECS1601/1 255
Isamba sangempela somkhiqizo wasekhaya Leli yinani lonke lempahla nemisebenzi
eyenziwe ngaphakathi kwemingcele yezwe onyakeni owodwa, ikalwa iqhathiniswe
namanani angaguquki. Iphinde yaziwe nge-GDP yamanani angaguquki. Ngakho i-GDP
yangempela iyi-GDP eguquliwe ngenhloso yokubhekana nokwehla kwamandla emali.
Imveliso yokwenene yelizwe iyonke Lixabiso elipheleleyo lempahla neenkonzo
zokugqibela eziveliswe kwimida yelizwe ngonyaka omnye, elilinganiswa namaxabiso
angatshintshiyo (amaxabiso exesha elithile). Ikwaziwa ngokuba yimveliso yelizwe iyonke
emaxabiso angatshintshiyo. Imveliso yokwenene yelizwe iyonke, ngoko ke, linani
lemveliso yelizwe iyonke ethe yalungiselelwa isiphumo sonyuko-maxabiso.
Ditweletwamoka ta kgonthe ta ka gare ga naga Ditweletwamoka ta
kgonthe ta ka gare ga naga ke boleng-moka bja diphahlo te di feleletego le ditirelo te
di tweleditwego ka gare ga mellwane ya naga ngwageng o tee, ge di elwa kgahlanong
le ditheko te di emego felo gotee (ditheko ta nako ye e itego ye e kgethilwego).
Di tsebega gape bjalo ka ditweletwamoka ta ka gare ga naga ka ditheko te di
emego gotee. Ditweletwamoka ta kgonthe ta ka gare ga naga, ka lebaka leo, ke
ditweletwamoka ta motheo ta ka gare ga naga teo di beakanyeditwego khueto
ya infleiene.
Palogotlhe tota ya dikumo tsa naga Palogotlhe tota ya dikumo tsa naga ke boleng
ba tlhotlhwa yotlhe ya dithoto tse di feletseng le ditirelo tse di tlhagisiwang mo teng
ga melelwane ya naga mo ngwageng o le nosi fa di lekantshwa le ditlhotlhwa tse di
tsepameng (ditlhotlhwa tsa nako e e rileng e e tlhophilweng). E itsege gape ka palogotlhe
tota ya dikumo tsa selegae ya ditlhotlhwa tse di tsepameng.
Ka jalo palogotlhe tota ya dikumo tsa naga ke palogotlhe ya dikumo tsa naga e e
baakanyeditsweng sephetho sa infoleiene.
Recession A recession is a period in which the economic activity in a country is declining
or very low. This is reflected in rising unemployment and excess production capacity.
Resessie n Resessie is n tydperk waarin die ekonomiese aktiwiteit in n land afneem
of baie laag is. Dit word weerspiel in toenemende werkloosheid en oortollige produk-
siekapasiteit.
Ukuphindela emuva komnotho Lesi yisigaba lapho umnotho wezwe usuke uphindela
emuva noma uphansi kakhulu. Lokhu kuyaye kuvezwe izinga eliphezulu lokwentuleka
kwemisebenzi nokuba sesimeni sokukhiqiza impahla eningi ngokwedlulele.
Ukusilela koqoqosho Ukusilela koqoqosho kuxa sukuba uqoqosho lwelizwe lusihla
okanye luphantsi kakhulu. Oku kuboniswa kukunyuka kweqondo lentswela-msebenzi
(ukungabikho komsebenzi) nakukwanda kwemveliso (engathengekiyo).
Reseene Reseene ke lebaka leo ka lona ditiro ta ekonomi ka nageng di theogago
goba di le tlase kudu. Se se bonagala ka go gola ga tlhokego ya meomo le tweleto ye
e fetago tekanyo.
Resesene Resesene ke paka e mo go yona ditiro tsa ikonomi mo nageng di yang tlase
kgotsa di le bonya. Se se supiwa ke botlhokatiro bo bo golang, mme go na le tlhagiso e
ntsi ya dikumo.
256 Economics 1B
Recessionary gap The gap between real production and potential production at full
employment (Yf) is known as a recessionary gap; such a gap exists when the economy is
in equilibrium below the full employment level. When there is such a gap, the economy is
in recession, in other words the economy is experiencing a decline in economic activity.
Resessionre gaping Die gaping tussen werklike produksie en potensile produksie by
volle indiensneming (Yf) staan bekend as die resessionre gaping; s n gaping bestaan as
die ekonomie in ewewig is onder die vlak van volle indiensneming. As daar so n gaping
is, is die ekonomie in resessie, met ander woorde die ekonomie ervaar n afname in
ekonomiese aktiwiteit.
Isikhala sokwehla komkhiqizo Leli yigebe elikhona phakathi komkhiqizo okhona
omkhiqizo ongakhona uma kuqashwe abantu ngokufanele (Yf) laziwa ngesikhala
sokwehla komkhiqizo. Igebe elifana naleli liba khona uma izinga lomnotho lingaphansi
kwesimo sokuqashwa kwabantu ngokuphelele. Uma kunesikhala salolu hlobo umnotho
uphindela emuva okuwukuthi uba nenkinga yokukhula.
Isithuba sokuhla koqoqosho (kwemveliso) Isithuba esiphakathi kwemveliso
yokwenene nemveliso enokufumaneka kwingqesho epheleleyo (Yf) (kungekho zithuba
zikhoyo zomsebenzi), sibizwa ngokuba sisithuba sokuhla koqoqosho okanye kwemveliso.
Isithuba esilolohlobo sibakho xa uqoqosho lukumyinge ongaphantsi kunomgangatho
wengqesho epheleleyo. Xa kukho isithuba esilolo hlobo, uqoqosho sukuba lusilela
(luhlile), oko kukuthi sukuba lukumaqondo asezantsi.
Sekgala sa reseene Sekgala magareng a tweleto ya kgonthe le kgonagalo ya tweleto
ka thwalo ye e feletego (Yf) se tsebja bjalo ka sekgala sa reseene; sekgala sa mohuta
wo se ba gona ge ekonomi e le sekeng sa tekatekano ka tlase ga maemo a thwalo ye
e feletego. Ge go na le sekgala sa mohuta woo, ekonomi e ba sekeng sa reseene, ka
mantu a mangwe, ekonomi e itemogela theogo ditirelong ta ekonomi.
Mokhino wa resesene Mokhino magareng ga tlhagisodikumo ya nnete le tlhagisodikumo
e e kgonagalang go ka nna teng fa go le thapo ya badiri e e tletseng (Yf) e itsege jaaka
mokhino wa resesene; mokhino o o nna teng fa ikonomi e le kwa tlase ga maemo a a
tletseng a thapo ya badiri. Fa go na le mokhino wa go nna jalo, ikonomi e mo reseseng,
ka mantswe a mangwe ikonomi e itemogela phokotsego ya ditiro tsa ikonomi.
Recognisability When something is recognisable, you can see what it is very quickly.
Recognisability is one of the requirements for a medium of exchange for example, a
note such as a R10 or R20 note must be easy to distinguish from other pieces of paper.
Herkenbaarheid Wanneer iets herkenbaar is, kan jy baie vinnig sien wat dit is.
Herkenbaarheid is een van die vereistes vir n ruilmiddel n R10- of R20-noot moet
byvoorbeeld baie maklik wees om van ander stukke papier te onderskei.
Bonakala Uma sithi into iyabonakala, kuchaza ukuthi uyakwazi ukusheshe ubone
ukuthi iyini. Lona ngomunye wemibandela ekuthengiselaneni isibonelo imali eyiphepha
ewu-R10 noma u-R20 kumele kube lula ukuyehlukanisa kwezinye iziqeshana zamaphepha.
Ukunakaneka Xa into inakaneka kuxa sukuba inakho ukubonakala ngokukhawuleza.
Ukunakaneka yenye yezinto eziyimfuneko zonaniselwano umzekelo, iphepha le-R10
okanye lama-R20 kufuneka libe nokwahlulwa ngokulula kwamanye amaphepha.
ECS1601/1 257
Temogego Ge selo se sengwe se lemogega, o ka kgona go bona se e lego sona ka
pela kudu. Temogego ke se sengwe sa dinyakwa ta sediriwa sa phetolelano mohlala
ke ge papetlana ya go swana le R10 goba R20 e swanete go lemogega gabonolo go
dipapetlana te dingwe ta dipampiri.
Temosego Fa sengwe se lemosega o ka bona ka bonako gore ke eng. Temosego ke
nngwe ya ditlhokego tsa thefosano sekao, letlhare le le jaaka R10 kgotsa R20 le
tshwanetse la nna bonolo go farologantshwa le manathwana a mangwe a pampiri.
Regressive tax A regressive tax system is a system in which the ratio between tax paid
and taxable income decreases as taxable income increases. In other words, the more
people earn, the less tax they pay, and the less they earn, the more they pay.
Regressiewe belasting In n stelsel van regressiewe belasting daal die verhouding
tussen belasting wat betaal word en belasbare inkomste namate belasbare inkomste
styg. Met ander woorde, hoe meer mense verdien, hoe minder die belasting wat hulle
betaal, en hoe minder hulle verdien, hoe meer die belasting wat hulle betaal.
Intela eyehla ngokwenyuka kweholo Lolu wuhlelo lwezentela lapho iratio phakathi
kwemali yentela ekhokhwayo neholo elikhokhelwa intela iya ngokuncipha lapho umholo
ukhula. Ngamanye amazwi uma umuntu ehola imali enkulu iba ncane intela ayikhokhayo,
kuthi lapho ehola kancane ibe nkulu intela okubhekeke ukuba ayikhokhe.
Irhafu ehla ngokunyuka komvuzo Irhafu ehla ngokunyuka komvuzo yinkqubo
yerhafu apho ireshiyo phakathi kwerhafu ehlawulwayo nomvuzo orhafiswayo isihla xa
umvuzo unyuka. Ngamanye amazwi, okukhona befumana imivuzo ephakamileyo abantu
kokukhona behlawula irhafu encinci.
Mothelo wa poelomorago Lenaneo la mothelo la poelomorago ke leo go lona kabo
ya magareng a mothelo wo o lefago le ditseno te di lefelwago mothelo e theogago
ge ditseno te di lefelwago mothelo di oketega. Ka mantu a mangwe, ge batho ba
amogela thelete ye nti, ba lefa mothelo wa tlase, gomme ge ba amogela thelete ya
tlase, ba lefa mothelo wa godimo.
Lekgetho la phopha Thulaganyo ya lekgetho la phopha ke thulaganyo e mo go yona
kabo magareng ga lekgetho le le duetsweng le letseno le le kgethisiwang e fokotsegang
fa letseno le le kgethisiwang le tlhatloga. Ka mantswe a mangwe, fa batho ba amogela
go le go ntsi, ba duela lekgetho le le kwa tlase, fa ba amogela kwa tlase ba duela go feta.
Regulation role The government plays a regulation role in the economy: it introduces
legislation and other measures to ensure efficiency and minimum standards, e.g. to
control imperfect competition and externalities.
Reguleringsrol Die regering speel n reguleringsrol in die ekonomie: hy stel wetgewing
en ander maatrels in om doeltreffendheid en minimum standaarde te verseker, bv. om
onvolmaakte mededinging en eksternaliteite te beheer.
258 Economics 1B
Indima yokulawula Uhulumeni ubambe iqhaza ekulawuleni umnotho: ushaya imithetho
athathe nezinyathelo ezithile ukuqinisekisa ukuthi kuyahlangatshezwana namazinga
aphansi abekiwe isibonelo, ukulawula ukuncintisana ngokubhekela ukuthi kungabi
nabathengi kumbe abathengisi abalawula amanani empahla, aphinde abheke udaba
lwezindleko nenzuzo etholwa yilabo bantu abaqondene ngqo nomsebenzi.
Indima yomiselo-mimiselo Urhulumente udlala indima yokumisela imimiselo
kuqoqosho: ungenisa imithetho neminye imiqathango ukuqinisekisa ukwenziwa
komsebenzi ngobuchule nemigangatho eyamkelekileyo umzekelo, ukulawula
ukhuphiswano olungasulungekanga neemeko zangaphandle.
Tema ya tshepedio Mmuo o kgatha tema ya tshepedio ekonoming: o tsebagata
melao le magato a mangwe a go kgonthia gore go ba le dipoelo le maemo a nyakegago,
mohlala ke go laola phadiano ye e sa phethagalago le ditwakantle.
Tiro ya taolo Puso e dira tiro ya go laola ikonomi: e tsenya melao le dikgato tse dingwe
go netefatsa tsamaiso e e maleba le maemo a a lekanetseng, sekao, go laola kgaisano e e
sa lolamang le tse dingwe tsa kwa ntle.
Revenue tariffs Revenue tariffs are trade tariffs (taxes) that are imposed on products
that are not manufactured in South Africa.
Inkomstetariewe Inkomstetariewe is handelstariewe (belasting) wat gehef word op
produkte wat nie in Suid-Afrika vervaardig is nie.
Intela efakwa empahleni ekhiqizwe ngaphandle Lena yintela yezohwebo efakwa
empahleni engakhiqiziwe eNingizimu Afrika.
Iirhafu zengeniso yelizwe Iirhafu zengeniso yelizwe ziirhafu zorhwebo ezifakwa
kwimveliso ezingenziwa eMzantsi-Afrika.
Ditefelo ta ditseno Ditefelo ta ditseno ke methelo ya ditseno te di beelwago
ditweletwa teo di sa dirwago ka mono Afrika Borwa.
Letseno la dikelotefo Letseno la dikelotefo ke dikelotefo tsa dikgwebo (makgetho) a a
duedisetswang dikumo tse di sa tlhagisiwang mo Aforika Borwa.
Seasonal unemployment This is unemployment due to the season, for example
unemployment that results when the harvesting season is over and harvesters therefore
no longer have jobs.
Seisoenswerkloosheid Dit is werkloosheid wat ontstaan vanwe die seisoen, byvoor-
beeld werkloosheid wat voorkom aan die einde van die oestyd wanneer die werkers
wat geoes het, nie meer werk het nie.
Ukungaqashwa ngenxa yesikhathi sonyaka Lokhu wukungabi namsebenzi ngenxa
yesikhathi sonyaka, Isibonelo uma sekuvuniwe uthola ukuthi labo abavunayo basala
bengenamsebenzi.
Intswela-ngqesho yamaxesha onyaka Intswela-ngqesho ethi ibekho ngexesha elithile
lonyaka.
ECS1601/1 259
Tlhokego ya thwalo go ya ka sehla Ye ke tlhokego ya thwalo ka lebaka la sehla,
mohlala ke tlhokego ya thwalo ye e bago gona ge lebaka la puno le feta gomme ka lebaka
leo babuni ba se sa na meomo.
Botlhokatiro ba setlha Seno ke botlhokatiro bo bo bakiwang ke setlha se se rileng,
sekao, botlhokatiro bo bo bakiwang ke fa setlha sa thobo se fetile mme barobi ba sa
tlhole ba na le ditiro.
Secondary market This is any market on which securities are traded that have already
been traded before that is, a market on which second-hand securities are traded.
Sekondre mark Dit is enige mark waarop sekuriteite verhandel word wat reeds
voorheen verhandel is dit wil s, n mark waarop tweedehandse sekuriteite ver-
handel word.
Imakethe yohwebo olungaqali Lena yimakethe okuthengiswa kuyo izibambiso
esezike sathengisa ngaphambili. Imakethe ethengisa isibambiso esezithengisa okwesibili.
Imarike yorhwebo olungaqaliyo Nayiphi na imarike ekurhwetywa kuyo ngezibambiso
ekukhe kwarhwetywa ngazo ngaphambili, okokukuthi imarike ekurhwetywa kuyo
ngezibambiso esele zisetyenzisiwe.
Mmaraka wa legato la bobedi Wo ke mmaraka o mongwe le o mongwe wo go wona
go rekiwago mangwalo a bong bja thoto, e le ao a etego a rekiitwe peleng ke go
re mmaraka wo go wona go rekiwago mangwalo a bong ao etego a kile a ba a batho
ba bangwe.
Mmaraka wa dithoto tse di dirisitsweng Ono ke mmaraka mongwe le mongwe o
mo go ona go rekiswang matlotlotlamo a a setseng a kile a dira ke gore, mmaraka o
mo go ona go rekisiwang dikapolelo tsa matlotlotlamo.
Service receipts This is an item in the current account of the balance of payments.
Service receipts are money received from other countries for services provided by
South Africans.
Ontvangste vir dienste Dit is n inskrywing in die lopende rekening van die betalings-
balans. Ontvangste vir dienste is geld wat van ander lande ontvang is vir dienste wat deur
Suid-Afrikaners gelewer is.
Izimali okukhokhelwa ngazo imisebenzi Leli ngelinye lamaphuzu e-akhawuntini
yesilinganiso senkokhelo. Lezi yizimali ezitholwe zivela kwamanye amazwe kukhokhelwa
ngazo imisebenzi eyenziwe ngabantu baseNingizimu Afrika.
Iirisithi zenkonzo eyenziweyo Ngumba we-akhawunti yetshekhi kulungelelwaniso
lwentlawulo.
Iirisithi zenkonzo eyenziweyo yimali efunyenwe kwamanye amazwe iyeyeenkonzo
ezenziwe ngabemi boMzantsi-Afrika.
260 Economics 1B
Dikamogelo ta ditirelo Ye ke hlogwana ka akhaonteng ya moela ya tekatekano ya
ditefelo.
Dikamogelo ta ditirelo ke thelete ye e amogetwego go twa dinageng te dingwe ta
ditirelo te di abilwego ke badudi ba Afrika Borwa.
Tshupatefo ya tirelo E ke ntlha e e mo tshupatlotlong kelelo ya pharologano ya kananyo.
Tshupatlotlo ya kamogelo ya ditirelo ke madi a a amogetsweng go tswa mo dinageng tse
dingwe e le a ditirelo tse di tswang mo nageng ya Aforika Borwa.
Short-term trade credit This is a type of credit that is granted in the short term and
used to finance imports and exports. It is included as an item under the category other
investment in the financial account of the balance of payments.
Korttermyn-handelskrediet Dit is n tipe krediet wat oor die korttermyn toegestaan
word en gebruik word om invoere en uitvoere te finansier. Dit verskyn as n inskrywing
onder die kategorie ander investering in die finansile rekening van die betalingsbalans.
Ilungelo lokuthenga ngesikweletu isikhashana Lolu wuhlobo lwesikweletu
sesikhathi esifishane lusetshenziswa ukukhokhela impahla evela kwamanye amazwe
noma ethunyelwa kwamanye amazwe.
Lufakiwe njengephuzu ngaphansi kwesigaba esithi ezinye izimali ezitshaliwe ku-
akhawunti yezimali yesilinganiso senkokhelo.
Ityala lorhwebo lwethuba elifutshane Ludidi lwetyala (imboleko-mali) olunikezelwa
kwithuba elifutshane nolusetyenziswa ekuboneleleni ngemali impahla engenayo
nethunyelwa ngaphandle. Ifakwa njengomba phantsi koluhlu olusihloko sithi olunye
utyalo-mali kwi-akhawunti yezemali kulungelelwaniso lweentlawulo.
Krediti ya lebaka le lekopana ya kgwebiano Wo ke mohuta wa krediti ye e fiwago
lebakeng le lekopana gomme e diriwa go lefela ditwantle le diyantle. E akaretwa
hlogwaneng ye e lego ka tlase ga legoro la dipeeleto te dingwe ka akhaonteng ya
dithelete ya ditekatekano ta ditefelo.
Keretiti ya kgwebo ya pakakhutswe O ke mohuta wa keretiti o o rebolwang mo
pakeng e khutshwane le go dirisiwa go duelela diromelwateng le diromelwantle. E
akareditswe jaaka ntlha mo lekaleng la dipeeletso tse dingwe mo tshupatlotlong ya
pharologano ya kananyo.
Special drawing rights (SDRs) Special drawing rights are borrowing rights at the
International Monetary Fund (IMF), an international organisation of which South Africa
is a member and which may lend money to member countries on request. Member
countries of the IMF can use SDRs if they experience problems with their balance of
payments in the short term.
Spesiale trekkingsregte (STRe) Spesiale trekkingsregte is leenregte by die
Internasionale Monetre Fonds (IMF), n internasionale organisasie waarvan Suid-Afrika
lid is, en wat geld op versoek aan lidlande kan leen. Lidlande van die IMF kan STRe
gebruik as hulle korttermyn-probleme met hulle betalingsbalans ondervind.
ECS1601/1 261
Amalungelo okukhipha imali (SDR) Lawa ngamalungelo okweboleka imali ku-
International Monetary Fund (i-IMF) okuyinhlangano iNingizimu Afrika eyilungu kuyo
futhi lenhlangano iyakwazi ukuthi iboleke imali lawo mazwe angamalungu ayo uma enze
isicelo. Amazwe angamalungu e-IMF angakwazi ukusebenzisa amalungelo awo uma
enezinkinga zesilinganiso senkokhelo esikhathini esifishane.
Amalungelo awodwa emboleko-mali (SDR) Amalungelo emboleko-mali kwiNgxowa
yeMali yaMazwe ngaMazwe (IMF), umbutho wamazwe ngamazwe olilungu lawo
uMzantsi-Afrika, onokubolekisa ngemali kumazwe angamalungu xa kwenziwe isicelo
soko. Amazwe angamalungu eNgxowa yeMali yaMazwe ngaMazwe angasebenzisa
amalungelo awodwa emboleko-mali xa aneengxaki anazo zethutyana kwi-akhawunti
zawo.
Ditokelo te e sego ta mehleng ta go ntha thelete (SDR) Te ke ditokelo
ta go adingwa thelete go Sekhwama sa Bodithabathaba sa Dithelete (IMF), e lego
lekgotla la bodithabathaba leo Afrika Borwa e lego setho sa lona gomme e lego leo
le ka adimago dinaga te e lego maloko thelete, ge di e kgopela. Dinaga te e lego
maloko a Sekhwama sa Bodithabathaba sa Dithelete di ka diria ditokelo te e sego ta
mehleng ta go ntha thelete ge di eba le mathaka ka ditekatekano ta tona ta ditefelo
ta lebakana le lekopana.
Ditshiamelo tse di kgethegileng tsa kgogo (SDR) Ditshiamelo tse di kgethegileng
tsa kgogo ke ditshiamelo tsa kadimo mo Letloleng la Bodithabathaba la Thelete (IMF).
Aforika Borwa ke tokololo ya mokgatlho o wa bodithabathaba o o ka nneng wa adima
dinaga tsa botokololo thelete fa di kopa jalo. Dinaga tsa botokololo tsa IMF di ka nne tsa
dirisa ditshiamelo tsa tsona tsa kgogo fa di itemogela mathata ka thefosano ya dikananyo
mo pakeng e khutshwane.
Stabilisation role The government plays a stabilisation role in the economy: it applies
monetary, fiscal and other measures to promote macroeconomic stability.
Stabiliseringsrol Die regering speel n stabiliseringsrol in die ekonomie: hy pas
monetre, fiskale en ander maatrels toe om makro-ekonomiese stabiliteit te bevorder.
Iqhaza lokuletha ukuzinza Uhulumeni ubambe iqhaza lokuzinzisa umnotho:
usebenzisa imithetho yezezimali kanye nezinye izindlela ukuqinisekisa ukukhuthaza
ukuzinza komnotho.
Indima yozinziso-qoqosho Urhulumente udlala indima yokuzinzisa uqoqosho:
usebenzisa imiqathango yezemali, yezemali karhulumente neminye imiqathango
ukukhulisa uzinzo kuqoqosho lwelizwe.
Tema ya tieleto Mmuo o kgatha tema ya tieleto ekonoming: o diria magato a
dithelete, methelo, le magato a mangwe go tweleta tielelo ya ekonomi ka kakareto.
Tiro ya tsepamiso Mmuso o tsaya karolo mo tirong ya go tsepamisa ikonomi: o dirisa
thelete, taolo ya merero ya thelete le dikgato tse dingwe go tsweletsa tsepamo ya
ikonomikgolo.
262 Economics 1B
Stagflation An economy experiences stagflation when there is a combination of
economic stagnation and high inflation.
Stagflasie n Ekonomie ondervind stagflasie as daar in die ekonomie n kombinasie is
van ekonomiese stagnasie en ho inflasie.
Isimo esibi sezomnotho Umnotho kuthiwa unesimo esibi uma ubhekene nenkinga
yokuma ndawonye ungakhuli ibe ngakulunye uhlangothi ubhekene nenkinga yokwehla
kwamandla emali.
Imeko-mbi yezoqoqosho Kukuthi uqoqosho lukwimeko embi, kubuye kubekho
ukunyuka kwamaxabiso ngaxeshanye.
Infleiene ya go sepediana le kemo ya ekonomi Ekonomi e ba maemong a ge go na
le kopano ya kemo ya ekonomi le infleiene ya godimo.
Infoleiene e e sa tsweleleng Ikonomi e nna le infoleiene e e sa tsweleleng fa go na le
kopano ya ikonomi e e sa tsweleleng le infoleiene e e kwa godimo.
Structural unemployment This is unemployment due to the structural changes in the
economy, which in turn are caused by technological changes, for example. For instance,
bank tellers may become unemployed when more and more automatic teller machines
are used.
Strukturele werkloosheid Dit is werkloosheid wat veroorsaak word deur strukturele
veranderings in die ekonomie, wat weer deur veranderings soos tegnologiese verande-
rings teweeggebring word. Bankkassiere kan byvoorbeeld werkloos word as daar al
hoe meer van outomatiese tellermasjiene gebruik gemaak word.
Ukuntuleka komsebenzi ngenxa yezobuchwepheshe Lokhu wukwentuleka
komsebenzi ngenxa yoguquko ekuhlelekeni kwezinto emnothweni, nokuvama ukudalwa
yizinguquko zezobuchwepheshe.
Isibonelo, othela basebhangi bangazithola sebephelelwe ngumsebenzi uma liya
ngokwanda inani lemishini yemali, ama-ATM, asetshenziswayo.
Intswela-ngqesho yobuchwepheshe Yintswela-ngqesho ebangelwa ziinguqu
ezenzeka kuqoqosho, nguqu ezo entsusa yazo iziinguqu zobuchwepheshe. Umzekelo,
ababali-mali beebhanki banokulahlekelwa yimisebenzi xa iibhanki zisebenzisa oontintinti
abaninzi (oomatshini bokukhupha nokufaka imali).
Tlhokego ya thwalo ya go bakwa ke diphetogo Ye ke tlhokego ya thwalo ye e
bakwago ke diphetogo ta didiriwa ta ekonomi, teo ka botona di bakwago ke
diphetogo ta theknoloti, mohlala ke ge baamogeladithelete ba pankeng ba felelwa ke
meomo ka lebaka la ge go diriwa methene ya go ntha le bo bea thelete ka bonti.
Botlhokatiro ba phetogo ya tsamaiso Botlhokatiro bo bo bakwa ke phetogo ya
tsamaiso mo ikonoming ka ntlha ya diphetogo tsa tekenoloji fa re naya sekao. Babalamadi
ba mo bankeng ba ka tlhoka ditiro fa go ka simololwa ga dirisiwa ka bontsi dimatshini tse
di itirisang tsa madi.
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Subsidies on production Subsidies on production are taken into account when GDP
is calculated. These subsidies include, for example, subsidies on payroll (i.e. subsidised
wages) and support to reduce pollution.
Subsidies op produksie Subsidies op produksie word in ag geneem wanneer BBP
bereken word. Hierdie subsidies sluit byvoorbeeld subsidies op die betaalrol (d.w.s.
gesubsidieerde lone) in, en steun om besoedeling te verminder.
Izibonelelo zoxhaso ekukhiqizweni Lezi bonelelo ziyaye zibhekwe lapho kubalwa
i-GDP. Kuzona kungena izibonelelo zamaholo kanye nokuxhaswa kwezinhlelo
zokunciphisa ukunukubezeka.
Inkxaso yobungakanani bemveliso Inkxaso yobungakanani bemveliso ithathelwa
ingqalelo xa kubalwa imveliso yelizwe iyonke (GDP). Le nkxaso iquka, umzekelo, inkxaso
kuluhlu lwentlawulo yabasebenzi (okokukuthi imivuzo efumene inkxaso) nenkxaso
yokunciphisa ungcoliseko lomoya.
Dithuo tweletong Dithuo tweletong di elwa hloko ge go balwa ditweletwamoka
ta ka gare ga naga (GDP). Dithuo te di akareta, go fa mohlala, dithuo megolong (ke
go re megolo ye e fiwago thuo) le thekgo ya go fokota thilafalo.
Ketleetso ya ntshodikumo Ketleetso mo ntshong ya dikumo e tsewa tsia fa go badiwa
palogotlhe ya dikumo tsa naga (GDP). Diketleetso tse di akaretsa, sekao, ketleetso mo
dituelong tsa badiri (go raya gore meputso e e etleleditsweng) le kemonokeng go fokotsa
kgotlhelego.
Subsidies on products Subsidies on products are taken into account when GDP is
calculated. These subsidies include, for example, direct support by the government to
industries to promote exports.
Subsidies op produkte Subsidies op produkte word in ag geneem wanneer BBP
bereken word. Hierdie subsidies sluit byvoorbeeld regstreekse ondersteuning van die
regering aan nywerhede in wat daarop gemik is om uitvoere te bevorder.
Izibonelelo zoxhaso emkhiqizweni Lezi zibonelelo ziyabalwa lapho kubalwa
i-GDP. Kulezi bonelelo kubalwa isibonelelo esifana noxhaso oluvela ngqo kuhulumeni
olubhekiswe ezimbonini ngenhloso yokukhuthaza ukuthunyelwa komkhiqizo emazweni
angaphandle.
Inkxaso yemveliso Inkxaso yemveliso ithathelwa ingqalelo xa kubalwa imveliso yelizwe
iyonke (GDP).
Le nkxaso iquka, umzekelo, inkxaso ethe ngqo eyenziwa kurhulumente kumashishini
ngenjongo yokuphakamisa imveliso ethunyelwa ngaphandle.
Dithuo ditweletweng Dithuo ditweletweng di elwa hloko ge go balwa
ditweletwamoka ta ka gare ga naga (GDP). Dithuo te di akareta, go fa mohlala,
thekgo ya thwii ya mmuo go di-intaseteri, go hlohleleta diyantle.
Ketleetso ya dikumo Ketleetso mo dikumong e tsewa tsia fa go badiwa palogotlhe ya
dikumo tsa naga (GDP). Ketleetso e e akaretsa, sekao, kemonokeng ya tlhamalalo e puso
e e nayang madirelo go tsweletsa diromelwantle.
264 Economics 1B
Supply of labour The total supply of labour in a country is defined as all the people who
are available to participate in the production of goods and services. It is also called the
labour force or economically active population.
Arbeidsaanbod Die totale arbeidsaanbod in n land is al die mense wat beskikbaar is om
aan die produksie van goedere en dienste deel te neem. Dit word ook die arbeidsmag of
ekonomies aktiewe bevolking genoem.
Ukutholakala kwabasebenzi Lokhu kusho bonke labo bantu abasesimeni sokuthi
babambe iqhaza ekukhiqizweni nasekwenzeni imisebenzi. Laba bantu baphinde babizwe
ngabasebenzi noma ngabantu abasesimeni sokubamba iqhaza kwezomnotho.
Ukufumaneka kwabasebenzi Ubukho babasebenzi abanokwenza umsebenzi elizweni
kuchazwa njengokufumaneka kwabasebenzi abanokuthabatha inxaxheba ekuvelisweni
kwemveliso okanye kwenkonzo ethile. Kukwabizwa ngokuba bubukho babasebenzi
okanye uluntu oluthabatha inxaxheba kuqoqosho.
Kabo ya baomi Kabomoka ya baomi ka nageng e hlaloswa bjalo ka baomi ka moka
bao ba hwetagalago go ka kgatha tema tweletong ya diphahlo le ditirelo. E bitwa
gape gore ke maatla a baomi goba badudi ba ba ka omago.
Tlamelo ya tiro Tlamelo yotlhe ya tiro mo nageng e tlhaloswa e le batho botlhe ba ba
leng teng go tshwaela mo tlhagisong ya dithoto le ditirelo. Se se bidiwa gape badiri kgotsa
sethaba se se tsayang karolo mo ikonoming.
Supply shock A supply shock is a sudden upward shift in the aggregate supply curve. It
is usually a factor which causes a general increase in production costs in the economy
for example, an increase in the oil price.
Aanbodskok n Aanbodskok is n skielike opwaartse verskuiwing in die makroaanbod-
kromme. Dit is gewoonlik n faktor wat n algemene toename in produksiekoste in die
ekonomie veroorsaak byvoorbeeld n verhoging van die olieprys.
Isidingo ebesingalindelekile Lokhu wukwenyuka ngokushesha komugqa okhomba
ukufakelwa kwempahla. Lokhu kuvama ukuba yiphuzu elidala ukwenyuka ezindlekweni
zokukhiqiza emnothweni isibonelo, wukwenyuka kwentengo kawoyela.
Isothuso semveliso Isothuso semveliso kukuphethuka ngokukhawuleza kwemeko
yemveliso. Kudla ngokubangelwa kukunyuka kweendleko zemveliso kuqoqosho,
njengokunyuka kwexabiso le-oyile.
<oko ya kabo <oko ya kabo ke tlhatlogo ya ka pejana ya khebe ya kabo ya magareng.
Ganti ke lona lebaka leo le tliago tlhatlogo ya ditshenyagalelo ta kabo ekonoming
mohlala ke tlhatlogo ya theko ya oli.
Tlhatlogo ya tlamelo Tlhatlogo ya tlamelo ke tlhatlogo ya tshoganyetso mo bogolong jwa
mola wa tlamelo. Ka gale ke lebaka le le bakang koketsego ya kakaretso ya ditshenyegelo
tsa ntsho ya dikumo mo ikonoming sekao ke tlhatlogo ya tlhotlhwa ya oli.
Taxation Taxation can be defined as compulsory contributions by individuals and com-
panies to the state in order to finance general public services and ensure state revenue.
ECS1601/1 265
Belasting Belasting is verpligte bydraes deur individue en maatskappye aan die staat om
algemene openbare dienste te finansier en staatsinkomste te verseker.
Ukukhokhiswa intela Lena yimali okuphoqelekile ukuba ikhokhwe ngumuntu
ngamunye nayizinkampani kuhulumeni ukuze isetshenziswe emisebenzini eyizidingo
zomphakathi nokuqinisekisa ukuthi uhulumeni uba nemali.
Urhafiso Urhafiso lungachazwa njengemali esisinyanzelo ethi ihlawulwe ngumntu,
umsebenzi nangamaqumrhu kurhulumente ngenjongo yokunyusa ingxowa karhulumente
ethi ijongane nokufezekiswa kweenkonzo zoluntu.
Mothelo Mothelo o ka hlaloswa bjalo ka dikabelo ta kgapeleto ta batho le
dikhamphani go mmuo, gore go lefelwe ditirelo ta kakareto ta mang le mang le go
kgonthia gore mmuo o ba le ditseno.
Kgethiso Kgethiso e ka tlhaloswa jaaka kabelo ya pateletso e e newang mmuso ke
batho le ditlamo gore o tle o tlamele ditirelo tsa kakaretso tsa sethaba ka matlole le go
babalela letseno la puso.
Taxes on production These taxes include business licences, stamp duties and payroll
tax. Taxes on production are taken into account when GDP is calculated.
Belasting op produksie Hierdie belasting sluit in besigheidslisensies, selregte en
betaalrolbelasting. Belasting op produksie word in ag geneem wanneer BBP bereken
word.
Intela ekhokhelwa ukukhiqiza Le ntela ibandakanya amalayisensi ebhizinisi, intela
yempahla kanye nentela yamaholo abasebenzi. Intela yokukhiqiza iyabalwa lapho
kubalwa i-GDP.
Iirhafu zokuveliswayo Ziirhafu eziquka imvume yeshishini (okanye yokurhweba),
irhafu yesitampu (ugximfizo) nerhafu yoxwebhu lwentlawulo yabasebenzi. Irhafu
yokuveliswayo ithathelwa ingqalelo xa kubalwa imveliso yelizwe iyonke.
Methelo ya tweleto Methelo ye e akareta dilaesense ta kgwebo, methelo
ya ditempe, le methelo ya megolo. Methelo ya tweleto e elwa hloko ge go balwa
ditweletwamoka ta ka gare ga naga.
Makgetho a tlhagiso Makgetho ano a akaretsa dilaesense, makgetho a ditempe le
lekgetho la dituelo tsotlhe tsa badiri. Makgetho a tlhagiso a akaretswa fa go balelwa
palogotlhe ya ntsho dikumo tsa naga.
Taxes on products These are taxes that are paid at the point of production, sale or use,
such as taxes on imports and value-added tax. Taxes on products are taken into account
when GDP is calculated.
Belasting op produkte Dit is belasting wat betaal word by die produksie-, verkoops- of
gebruikspunt, soos belasting op invoere en belasting op toegevoegde waarde. Belasting
op produkte word in ag geneem wanneer BBP bereken word.
266 Economics 1B
Intela ekhokhelwa umkhiqizo Lena yintela ekhokhwa lapho kwenziwa khona/
kusetshenziswa khona noma lapho kuthengiswa khona umkhiqizo, njengentela
ekhokhelwa impahla evela emazweni angaphandle kanye ne-VAT (okuyintela efakwa
enanini lempahla). Intela efakwa emkhiqizweni iyabalwa lapho kubalwa i-GDP.
Irhafu yemveliso Yirhafu ehlawulwa kwiindawo zemveliso, zentengiso okanye apho
kusetyenzelwa khona njengerhafu yempahla nerhafu yokutya. Irhafu yemveliso ithathelwa
ingqalelo xa kubalwa imveliso yelizwe iyonke.
Methelo ya ditweletwa Ye ke methelo ye e lefago mafelong a tweleto, thekio
goba tirio, go swana le methelo ya ditwantle le VAT. Methelo ya ditweletwa e elwa
hloko ge go balwa ditweletwamoka ta ka gare ga naga.
Makgetho a dikumo A ke makgetho a a duelelwang mo ntlheng ya tlhagiso, thekiso
kgotsa tiriso, ke a a jaaka makgetho a diromelwateng le lekgetho le le tsentsweng mo
boleng. Makgetho a dikumo a tsewa tsia fa go balelwa palogotlhe ya dikumo tsa naga.
Total expenditure Total expenditure in an economy is all the payments made in that
economy in a specific year. This is also called gross domestic expenditure (GDE).
Totale besteding Totale besteding in n ekonomie is al die betalings wat in n bepaalde
jaar in daardie ekonomie gedoen is. Dit word ook bruto binnelandse besteding (BBB)
genoem.
Imali esetshenzisiwe iyonke Lokhu kusho zonke izimali emnothweni ezisetshenziswe
ukukhokha ngalowo nyaka. Kuphinde kubizwe ngemali esetshenziswe yizwe (GDE).
Inkcitho iyonke Inkcitho eyonke kuqoqosho yintlawulo yonke eyenziweyo kuqoqosho
(kurhwebo/kwishishini) ngonyaka othile. Ikwabizwa ngokuba yinkcitho yemveliso
yangaphakathi iyonke (GDE).
Ditshenyegelomoka Ditshenyegelomoka ekonoming ke ditefelo ka moka te di
dirilwego ekonoming yeo, ngwageng wo o itego. Se se bitwa gape tshenyagalelomoka
ya ka gare ga naga (GDE).
Palogotlhe ya ditshenyegelo Palogotlhe ya ditshenyegelo mo ikonoming ke dituelo
tsotlhe tse di dirilweng mo ikonoming eo mo ngwageng o o rileng. Seno se itsege gape
jaaka palogotlhe ya ditshenyegelo tsa naga (GDE).
Total market value of production This figure is used to calculate GDP. It is the total
number of products manufactured in the country multiplied by the price (market price/
buyers price) of the products.
Totale markwaarde van produksie Hierdie syfer word gebruik om BBP te bereken.
Dit is die totale getal produkte wat in die land vervaardig is, vermenigvuldig met die prys
(markprys/kopersprys) van die produkte.
Inani lilonke lemali umkhiqizo ongathengiswa ngalo emakethe Leli yinani
elisetshenziswa ekubaleni i-GDP. Leli yinani lilonke lomkhiqizo owenziwe ezweni
liphindaphindwe ngentengo (inani lasemakethe/elikhokhwe ngumthengi) yomkhiqizo.
ECS1601/1 267
Ixabiso lemarike lilonke lokuveliswayo Eli nani lisetyenziswa ekubaleni imveliso
yelizwe iyonke (GDP). Linani lilonke lemveliso eveliswa elizweni eliphindaphindwe
ngexabiso (ixabiso lemarike/lomthengi) lemveliso.
Boleng-moka bja mmaraka bja tweleto Palo ye e dirietwa go hweta
ditweletwamoka ta ka gare ga naga (GDP). Ke palomoka ya ditweletwa te di
dirilwego ekonoming ge di atiwa ka theko (theko ya mmaraka/theko ya bareki) ya
ditweletwa.
Palogotlhe ya boleng ba mmaraka wa tlhagiso Palo eno e dirisiwa go balela
palogotlhe ya dikumo tsa naga (GDP). Ke palogotlhe ya palo ya dikumo tse di tlhagisiwang
mo nageng fa e atisiwa ka tlhotlhwa (tlhotlhwa ya mmaraka/tlhotlhwa ya moreki) ya
dikumo.
Trade balance The trade balance of a country for a specific year is the difference
between the visible imports and the visible exports of the country for the year.
Handelsbalans Die handelsbalans van n land vir n bepaalde jaar is die verskil tussen die
sigbare invoer en die sigbare uitvoer van die land.
Isilinganiso sezohwebo Isilinganiso sezwe sezohwebo onyakeni othile wumehluko
okhona phakathi kwempahla ebonakalayo izwe eliyithenge ngaphandle nempahla
ebonakalayo izwe eliyithumele emazweni angaphandle ngalowo nyaka.
Umyinge worhwebo Umyinge worhwebo welizwe wonyaka othile ngumahluko
ophakathi kwempahla engenayo ebonakalayo nempahla ephumayo ebonakalayo yelizwe
yonyaka.
Thaledi ya kgwebiano Thaledi ya kgwebo ya naga ngwageng wo o itego ke phapano
magareng ga ditwantle te di bonalago le diyantle te di bonalago ta naga, ngwageng.
Tshalelo ya kgwebisano Tshalelo ya kgwebisano ya naga ya ngwaga o o rileng ke
pharologano magareng ga diromelwateng le diromelwantle tse di bonalang tsa naga.
Transfer payments Transfer payments are made when the government pays out money
without receiving consideration for such payment that is, without requiring a service
in return. Examples of transfer payments are old-age pensions, disability pensions and
subsidies.
Oordragbetalings Oordragbetalings geskied wanneer die regering geld uitbetaal sonder
om n teenprestasie vir so n betaling te kry dit wil s, sonder om n diens in ruil te verlang.
Voorbeelde van oordragbetalings is ouderdomspensioene, ongeskiktheidspensioene en
subsidies.
Ukwedluliswa kwenkokhelo okungabhekwe nzuzo ngayo Lezi yizimali ezikhokhwa
nguhulumeni ebe engabheke kwenzelwa msebenzi ngazo. Isibonelo senkokhelo
okungabhekwe nzuzo ngayo yimpesheni yabantu abadala, impesheni yokukhubazeka
kanye nezimali zokuxhasa.
268 Economics 1B
Intlawulo engenambuyekezo Yenziwa xa sukuba urhulumente ehlawula imali
engajonganga mbuyekezo ngayo, oko kukuthi, ngaphandle kokufuna ukwenzelwa
inkonzo ethile ngulowo uhlawulweyo.
Imizekelo yentlawulo engenambuyekezo yinkamnkam, isibonelelo sabakhubazekileyo
nenkxaso-mali yeenkonzo.
Ditefelo ta phetieto Ditefelo ta phetieto di dirwa ge mmuo o lefa thelete
ntle le go amogela se sengwe legatong la thelete yeo ke gore ntle le go nyaka tirelo
legatong la seo. Mehlala ya ditefelo ta phetieto ke megolo ya batofadi, megolo ya bao
ba sa felelago mebeleng le dithuo.
Tshutiso ya dituelo Tshutiso ya dituelo e dirwa fa puso e duela madi kwa ntle ga gore e
amogele sengwe ka go dira jalo ke gore, ga e tlhoke go busetswa ditirelo mo boemong
jwa tuelo eo. Sekao sa tshutiso ya dituelo ke madi a tuelo ya pensene ya bagodi, pensene
ya ba ba sa itekanelang le diketleetso.
Transmission mechanism The way in which changes in the monetary sector are trans-
mitted (carried over) to the real sector via investment is called the monetary transmission
mechanism.
Transmissiemeganisme Die manier waarop veranderings in die monetre sektor
oorgedra word na die rele sektor via investering word die monetre-transmissie-
meganisme genoem.
Indlela yokudlula kwezinguquko Lena yindlela izinguquko ezisemkhakheni wezimali
ezedluliseleka ngayo esimeni sangempela sempilo.
Indlela yonikezelo Indlela iinguqu kwicandelo lemali ezinikezelwa ngayo kwicandelo
lokwenene ibizwa ngokuba yindlela yonikezelo.
Mokgwa wa phetieto Mokgwa wo ka wona diphetogo di fetietwago ka gona
lekaleng la dithelete go lekala la kgonthe, o bitwa mokgwa wa phetieto ya dithelete.
Mokgwa wa phetiso Tsela e diphetogo mo lekaleng la matlotlo di fetisetswang ka yona
mo lekaleng la nnete e bidiwa mokgwa wa phetiso ya madi.
Treasury bill A treasury bill is a bill issued by the government, usually for a term of 91
days. It is a simple type of security that is similar to an ordinary banknote, except that it
is not paid out immediately, but only at a later date.
Skatkiswissel n Skatkiswissel is n wissel wat deur die regering uitgereik word,
gewoonlik vir n termyn van 91 dae. Dit is n eenvoudige tipe sekuriteit wat soortgelyk
is aan n gewone banknoot, behalwe dat dit nie onmiddellik uitbetaal word nie, maar
eers later.
Ibhili yesikhwama sikahulumeni Lena yibhili ekhishwa nguhulumeni evama ukuba
nesikhathi esiyizinsuku ezingu-91. Iwuhlobo olulula lwesibambiso esicishe sifane nemali
ngaphandle nje kokuthi ayikhokhelwa ngaleso sikhathi kodwa ikhokhelwa kamuva.
ECS1601/1 269
Ibhili yengxowa karhulumente Yibhili ethi ikhutshwe ngurhulumente nedla ngokuba
yeyethuba leentsuku ezingama-91. Ludidi lwesibambiso esifana nemali eliphepha
eqhelekileyo, ngaphandle nje kokuba yona ayihlawulwa kwangoko, koko ihlawulwa
kamva.
Molaokakanywa wa matlotlo Molaokakanywa wa matlotlo ke molaokakanywa wo o
nthwago ke mmuo, ganti lebakeng la matati a 91. Ke mohuta o bonolo wa lengwalo
la bong bja dithoto leo le swanago le pampirithelete, ge e se feela gore ga e lefelwe ka
bjako, eupa moragonyana feela.
Tshupamolato ya matlotlo Tshupamolato ya matlotlo ke tshupamolato e e tlhagisiwang
ke mmuso, ka tlwaelo e tsaya sebaka sa malatsi a le 91. Ke mohuta o o bonolo wa
tlhomamiso ya madi o o tshwanang le letlhare le le tlwaelegileng la madi kwa ntle ga gore
ga e duelwe ka bonako, mme e duelwa mo letlheng le le tlang.
Trough The trough is the lower turning point in the business cycle. It is the point at
which the economy is at its most sluggish and economic activity is low, and from where
the economy will start to move into an upswing again.
Trog Die trog is die laagste keerpunt in die konjunktuursiklus. Dit is die punt waar die
ekonomie op sy traagste is en ekonomiese aktiwiteit laag is, en van waar die ekonomie
weer in n opswaai sal begin inbeweeg.
Isigaba esiphansi sezomnotho Lesi yisigaba esiphansi kakhulu ekuntengeni komnotho.
Yiso lesi sigaba umnotho okuthi lapho sewuqala ukudlondlobala usukele kuso.
Inqanaba elisezantsi loqoqosho Linqanaba elisezantsi kumjikelo weshishini. Linqanaba
apho uqoqosho libi kakhulu kwaye kungekho kwazinto-yinto zoqoqosho zenzekayo,
nalapho uqoqosho luya kuqalisa ngokuphucuka kwakhona.
Boemotlase Boemotlase ke boemo bja tlasana bjo ekonomi e gomago go bjona leboong
la kgwebo.
Ke boemo bjo ka bjona ekonomi e lego tlasetlase, le gona ke moo ekonomi e tla thomago
gona go hlatloga.
Ntlhatlase Ntlhatlase ke ntlha e e kwa tlase mo tshekeletseng ya kgwebo. Ke ntlha e
ikonomi e sa kgatliseng mo go yona mme ditiro tsa yona di le bonya, eo mo go yona
ikonomi e tla simololang go fetogela godimo gape.
Unemployment There is unemployment in an economy if there are people who are
able and available to work but cannot find work.
Werkloosheid Daar is werkloosheid in n ekonomie wanneer daar mense is wat in staat
is om te werk, en beskikbaar is om te werk, maar nie werk kan vind nie.
Ukwentuleka komsebenzi Kusuke kunokwentuleka komsebenzi emnothweni uma
abantu bezothi lapho befuna umsebenzi bangawutholi.
Intswela-ngqesho Ukunqaba kwamathuba omsebenzi kubantu abanakho ukusebenza
nabawunxanelweyo umsebenzi kodwa bengawufumani.
270 Economics 1B
Tlhokego ya thwalo Go na le tlhokego ya thwalo ekonoming ge go na le batho bao
ba kgonago le gona ba hwetagalago gore ba ka oma, eupa ba sa kgone go hweta
moomo.
Botlhokatiro Go na le botlhokatiro mo ikonoming fa batho ba ba kgonang go dira ba le
teng go ka dira mme ba sa kgone go ka bona ditiro.
Unrecorded transactions This is an item in the balance of payments. It is an estimated
figure for transactions that were not specifically recorded. It is the so-called balancing
item, because it is adjusted to ensure that the balance of payments actually balances.
Onaangetekende transaksies Dit is n inskrywing in die betalingsbalans. Dit is n
geraamde syfer vir transaksies wat nie spesifiek aangeteken is nie. Dit is die sogenaamde
balanseeritem, want dit word aangepas om te verseker dat die betalingsbalans werklik
balanseer.
Amaphuzu okuhwebelana angarekhodiwe Leli ngelinye lamaphuzu esilinganisweni
senkokhelo.
Lesi yisilinganiso esiqagelwayo sezindaba zokuhwebelana ezingazange zarekhodwa.
Libizwa ngephuzu lokulinganisa ngoba liyaguquguqulwa ukuqinisekisa ukuthi isilinganiso
senkokhelo sikhipha izibalo eziyizo.
Ukuphathwa kwemali okungabhalwanga Ngumba we-akhawunti yolungiselelo
lweentlawulo.
Ngumyinge oqikelelwayo wophatho-mali ebingabhalwanga phantsi. Yile nto kuthiwa
ngumba wolungelelwaniso, kuba iyalungiselelwa ukuqinisekisa ulungelelwaniso
lwentlawulo olwenzekayo.
Dipapatiano te di sa ngwalwago Ye ke hlogwana tekatekanong ya ditefelo. Ke
palo ye e akanywago ya dipapatiano te di sa ngwalwago. E bitwa seo go thwego ke
hlogwana ya go lekalekanya, ka ge e beakanywa go kgonthia gore tekatekanyo ya
ditefelo e lekalekana ka kgonthe.
Ditirisano tse di sa kwalwang E ke ntlha e e tlhagelelang mo pharologanong ya
kananyo. Ke palo e e lekanyediwang ya ditirisano tse go totobetseng gore ga di a kwalwa.
Ke tse di itsegeng jaaka dintlha tsa tekano gonne di lekanyediwa go netefatsa gore
pharologano ya tekanyo e lekalekanngwa ka nnete.
Upswing The upswing is a phase of the business cycle in which economic activity
recovers and gradually increases.
Opswaai Die opswaai is n fase in die konjunktuursiklus waartydens ekonomiese
aktiwiteit herstel en stelselmatig toeneem.
Ukunyuka kwentengiso ebhizinisini Lesi yisikhathi ebhizinisini lapho umnotho
ukhombisa ukudlondlobala uye ngokukhula.
Ukunyuka komsinga Ukunyuka komsinga sisigaba somjikelo weshishini xa ishishini
liphucuka linyuka kancinci.
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Tlhatlogo Tlhatlogo ke legato la leboo la kgwebo leo go lona ditiro ta ekonomi di
tsogago gannyanegannyane le go oketega.
Phetogelo godimo Phetogelo godimo ke kgato ya tshekeletsa ya kgwebo eo mo go
yona ditiro tsa ikonomi di tokafalang mme di tlhatloge ka iketlo.
Valuation adjustments This is an item in the balance of payments. It refers to changes
in the value of the countrys gold and foreign reserves.
Waardasie-aanpassings Dit is n inskrywing in die betalingsbalans en verwys na
veranderings in die waarde van die land se goud en buitelandse reserwes.
Uguquko ezimalini ezigciniwe Leli ngelinye lamaphuzu esilinganisweni senkokhelo.
Lisho uguquko emananini egolide kanye nezimali ezigcinwe yizwe.
Utshintsho-xabiso Utshintsho-xabiso ngumba we-akhawunti yemali kulungelelwaniso
lweentlawulo.
Lubhekiselele kwinguqulelo ethi yenzeke kwixabiso legolide yelizwe nakoovimba
bamazwe angaphandle.
Ditokio ta kelo Ditokio ta kelo ke hlogwana tekatekanong ya ditefelo. E upeta
diphetogong go boleng bja gauta ya naga, le maaleding a dinaga diele.
Tolamiso ya peotlhotlhwa Tolamiso ya peotlhotlhwa ke ntlha mo tekanyetsong ya
pharologano. E kaya diphetogo mo boleng jwa gouta ya naga le dirasefe tsa bodithaba.
Voluntary unemployment This is also called frictional unemployment. This type
of unemployment is not due to conditions in the economy but to peoples personal
decision not to work.
Vrywillige werkloosheid Dit word ook wrywingswerkloosheid genoem. Hierdie
tipe werkloosheid is nie as gevolg van ekonomiese toestande nie, maar van mense se
persoonlike besluit om nie te werk nie.
Ukungasebenzi ngokuzikhethela Lokhu kuphinde kubizwe ngokungafuni ukusebenza
kwabantu.
Lesi yisimo sokungasebenzi kodwa esingadalwa wubunjalo bomnotho kodwa kusuke
kube yisinqumo esithathwe ngabantu sokuthi abezusebenza.
Ukungaphangeli ngokuzithandela Ludidi lokungaphangeli olungaphenjelelwa
ziimeko zoqoqosho koko luphenjelelwa sisigqibo somntu sokuzikhethela ukungaphangeli
ngokuzithandela kwakhe.
Go se thwalwe ga boithaopo Se se bitwa gape gore ke go se thwalwe ka kgohlano.
Mohuta wo wa go se thwalwe ga o tle ka lebaka la mabaka a ekonomi, eupa ka lebaka
la diphetho te batho ba iteelago tona ta gore ba se ke ba oma.
Botlhokatiro ba ithaopo Seno se itsege gape jaaka botlhokatiro jwa kgotlhano.
Botlhokatiro ba mohuta o ga bo bakiwe ke maemo a ikonomi mme bo bakwa ke
ditshwetso tse di tsewang ke batho tsa go sa dire.
272 Economics 1B
Wealth The total possessions (both tangible and intangible) of an individual, household,
producer or country that have an exchange value.
Rykdom Die totale besittings (tasbaar sowel as ontasbaar) van n persoon, huishouding,
produsent of land wat n ruilwaarde het.
Umcebo Lena yiyona yonke impahla (ephathekayo nengaphatheki) yomuntu, yekhaya,
yomkhiqizi noma yezwe enganako ukuthi ishintshwe.
Ubutyebi Izinto zonke (eziphathekayo nezingaphathekiyo) anazo umntu, ikhaya,
umvelisi okanye ilizwe ezinexabiso kurhwebo.
Lehumo Dithoto ka moka (bobeding te di bonalago le te di sa bonalego), ta motho,
lapa, motweleti goba naga, te di nago le boleng bja phetolelano.
Khumo Ke dithoto tsotlhe (tse di ka bonwang le tse di sa bonweng ka matlho) tse di
nang le boleng jwa kananyo tsa motho yo o rileng, lelapa, motlhagisi wa dikumo kgotsa
naga.
Weighted average price This is an average price for a selection of products and
services that has been calculated by assigning different weightings to all the different
products and services in the selection. The different weightings are assigned to reflect
how important that product or service is.
Geweegde gemiddelde prys Dit is n gemiddelde prys vir n geselekteerde groep
produkte en dienste wat bereken is deur verskillende gewigte aan al die verskillende
produkte en dienste in die groep toe te ken. Die verskillende gewigte word toegeken
om te weerspiel hoe belangrik elke bepaalde produk of diens is.
Intengo ephakathi etholwe ngokuhlola ukubaluleka komkhiqizo Leli yinani
elisendimeni lemikhiqizo noma lemisebenzi ebalwe ngokuthi kunikwe amazinga
okubaluleka ehulukene emikhiqizo eyehlukene. Amazinga ehlukene asuke enikezwa
ukuze kubonakale ukubaluleka komkhiqizo noma komsebenzi lowo.
Ixabiso eliphakathi elinezibonelelo ezizodwa Lixabiso eliphakathi lemveliso
neenkonzo ezikhethiweyo (okanye zodidi oluthile) eliye labalwa ngokwezibonelelo ezithe
chatha ezahlukeneyo kuzo zonke iimveliso neenkonzo ezahlukeneyo kwezikhethiweyo.
Izibonelelo ezahlukeneyo zinikezelwa ngenjongo yokubonisa indlela ebaluleke ngazo
iimveliso okanye iinkonzo.
Theko ya magareng ye e etwego Ye ke theko ya magareng ya ditweletwa te
di kgethilwego le ditirelo te di badilwego ka go bea dikelo te di fapafapanego ta
ditweletwa te di fapafapanego le ditirelo kgethong yeo. Dikelo te di fapafapanego di
bewa ka moo setweletwa goba tirelo yeo e lego bohlokwa ka gona.
Boleng ba palogare ya tlhotlhwa Seno ke palogare ya tlhotlhwa ya dikumo le ditirelo
tse di tlhophilweng e e baletsweng ka go diragatsa boleng bo bo farologaneng mo
mehuteng e e farologaneng ya dikumo le ditirelo tse di tlhophilweng. Boleng bo bo
farologaneng bo diragatswa go totobatsa botlhokwa ba kumo kgotsa tirelo eo.

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