ECS1601_Assignment_1_Semester_1_2023

Reference: Prescribed book PG 60 Households own factors of production (natural resources, labour, capital and entrepreneurship). They sell these factors to firms in the factor markets and receive rent (natural resources), wages and salaries (labour), interest (capital) and profit (entrepreneurship). Firms combine these factors of production to produce goods and services that are sold in the goods markets to households who use the income (derived from selling their factors of production) to purchase the goods and services. This study source was downloaded by from CourseH on :38:55 GMT -05:00 ASSIGNMENT 1 SEMESTER 1 2023 UNIQUE NUMBER: ECS1601 1. 4 Reference: Prescribed book PG 60 Households own factors of production (natural resources, labour, capital and entrepreneurship). They sell these factors to firms in the factor markets and receive rent (natural resources), wages and salaries (labour), interest (capital) and profit (entrepreneurship). Firms combine these factors of production to produce goods and services that are sold in the goods markets to households who use the income (derived from selling their factors of production) to purchase the goods and services. 2. 2 Reference: Prescribed book PG 41 3. 4 Reference: Prescribed book PG 50 4. 4 Reference: Prescribed book PG 42 There are four main factors of production: natural resources (or land), labour, capital and entrepreneurship. Natural resources and labour are sometimes called primary factors of production, while capital and entrepreneurship are called secondary factors. Another possible distinction is between human resources (labour and entrepreneurship) and non-human resources (natural resources and capital). 5. 4 Reference: Prescribed book PG 46 The remuneration of natural resources (or land) is called rent. Wages and salaries are the remuneration of labour, while the remuneration of capital is called interest. Finally, profit is the remuneration of entrepreneurship. The total income in the economy thus consists of rent, wages and This study source was downloaded by from CourseH on :38:55 GMT -05:00 salaries, interest and profit and the value of total income is identically equal to the value of total production. 6. 2 Reference: Prescribed book PG 49 Aggregate spending on South African goods and services consists of spending by the four sectors:  spending by households on consumer goods and services (C)  spending by firms on capital goods (I)  spending by government on goods and services (G)  spending by foreigners on South African goods and services (X) minus spending by South Africans on imported goods and services (Z) 7. 4 Reference: Prescribed book PG 60 There are four main factors of production: natural resources (or land), labour, capital and entrepreneurship. Net exports = Exports - Imports