Grade 7 Economic and Management Sciences (EMS) Term 1 (Study & Master) – Summaries

This summary covers the four topics in the Term 1 overview of Economic and Management Sciences (EMS): The Economy and Entrepreneurship.

Topic 1: The History of Money

• Traditional Societies used basic methods like hunting and farming and were mostly subsistence-based, with little trade.
• Bartering was the exchange of goods without money but was limited because goods were hard to value or store, leading to the use of money.
• Coins and later Paper Money and Electronic Banking followed, with electronic banking using the internet, ATMs, cards, and EFTs for transactions.
• The role of money is as a medium of exchange, a unit of account, and a store of value.

Topic 2: Needs and Wants

• Needs are things people can’t survive without, such as primary needs (food, water, shelter).
• Wants are things people would like to have but don’t need, also called secondary needs (like fashion or entertainment).
• The Economic Problem is how to use limited resources (like labour and capital) to satisfy unlimited needs and wants.

Topic 3: Goods and Services

• Goods are physical items people buy and use, and Services are work people do for others.
• The economy is divided into sectors: the Primary Sector extracts raw materials, the Secondary Sector manufactures goods, and the Tertiary Sector offers finished goods and services.
• Producers make goods or provide services, and Consumers buy or use them.

Topic 4: Businesses

• Formal businesses are taxed and regulated by the government, while Informal businesses are not.
• Businesses can be Trading (selling goods), Manufacturing (making goods), or Service (selling services).
• Formal and informal businesses act as both producers and consumers.
• Natural disasters and health epidemics can negatively affect businesses through property damage, loss of income, and reduced productivity.