Grade 7 Economic and Management Sciences (EMS) Term 4 (Study & Master) – Summaries

This document provides summaries for Grade 7 Economic and Management Sciences (EMS) Term 4, covering three topics: Looking Back, Looking Forward (Topic 14), The Production Process (Topic 15), and Savings (Topic 16).Topic 15: The Production Process (P. 165-179)

• Definition: Production is when businesses use raw materials (inputs) in a process to produce goods that the market needs (outputs).
• Inputs and Outputs: Inputs are resources used in production, including labour, raw materials, capital, land, and entrepreneurship, which are transformed into outputs, or finished goods and services.
• Sectors of the Economy:
  • Primary: Uses natural resources to produce raw materials (e.g., farming, mining).
  • Secondary: Uses raw materials to manufacture goods (e.g., factories, construction).
  • Tertiary: Provides finished goods and services (e.g., retail, banking, healthcare).
• Economic Growth and Productivity: Economic growth is an increase in an economy’s ability to produce goods and services. Productivity is a measure of how much output is gained from the effort put into something. Technology improves productivity by making work faster, more accurate, and more efficient, contributing to economic growth.
• Sustainable Use of Resources: Resources must be managed carefully as many are limited. Non-renewable resources cannot be replaced (e.g., coal, oil), while renewable resources can be replaced or reused if managed sustainably (e.g., timber, solar energy).

Topic 16: Savings (P. 180-190)

• Personal Savings: Money set aside from income for future purchases or emergencies.
• Role of Banks: Banks allow individuals and businesses to safely save money and borrow money. Services include savings accounts, loans, ATM cards, and money transfers.
• Community Savings Schemes (Stokvels): Schemes where members contribute money monthly and take turns receiving the total fund.
• Entrepreneurship Support: Entrepreneurs can obtain start-up capital from banks, government programs, and NGOs (e.g., Umsobomvu Youth Fund, SEDA).