Volumetric Chemical Analysis (SSCSE) - 2024

UNIT 3: THE ECONOMY
THE MEANING AND OPERATION OF THE ECONOMY:
WHAT IS ECONOMY?
A complex system of production, distribution, and consumption of goods and
services.
OR
Involves exchange and interaction between individuals, businesses, and the
government.
HOW AN ECONOMIC CAN WORKS:
Production: Uses natural resources, labor, and capital to create goods and services.
Technological advancements and innovation can significantly impact production
efficiency.
Distribution: Goods and services move from producers to consumers through a
complex network of transportation, wholesale, retail, and other channels.
Consumption: People and businesses use goods and services to satisfy their wants
and needs. Consumer spending is a major driver of economic growth.
Exchange: Transactions happen using money (currency) or other forms of payment,
like barter in some cases.
HOW THEY MEASURE AN ECONOMY:
Economists track the health of the economy using various economic indicators including
i. Gross Domestic Product (GDP)
ii. Inflation rate
iii. Unemployment rate
iv. Interest rates
v. stock market performance
vi. Government debt
vii. balance of trade
viii. rate of unemployment
ix. Consumer spending.
1
ROLE OF GOVERNMENT IN THE ECONOMY:
Regulates economic activity through laws and policies.
Promotes competition to prevent monopolies and ensure fair pricing.
Corrects externalities, such as pollution, to protect the environment and public health.
Provides security and stability, which is essential for economic growth.
Formulating fiscal and monetary policies refers to the adjustment of government
spending and taxation rates.
ROLE OF INDIVIDUALS IN THE ECONOMY:

Consume goods and services, influencing what gets produced through their spending
choices.
Work and contribute their labor to the economy.

Pay taxes that fund government services and infrastructure.
Advocate for policies that benefit them and society as a whole.
ROLE OF INDIVIDUAL IN THE ECONOMY:
Produce goods and services, aiming to make a profit.

Employ people and contribute to job creation.
Pay taxes to the government.
Play a role in technological innovation and economic development.
2
HOW TO BALANCING THE ECONOMY:
Taxes, the government collects revenue through taxes on income, property,

consumption, and other sources. This revenue is used to fund public services,
infrastructure projects, and social programs.
Finding the right balance between taxation and economic growth is a constant
challenge for policymakers.
Note: refer to the text book for use of tax by govnt.
Policies, the government implements various policies, such as fiscal policy

(government spending and taxes) and monetary policy (interest rates and money supply), to
influence economic activity
Promote growth
Control inflation
Reduce unemployment.
ECONOMIC MANAGEMENT STRATEGIES
Goal: Create a more efficient and effective economy
STRATEGIES/ METHODS
Equality: Promote income equality between people and genders.
Transparency: Use new communication technologies for efficient tax collection and
government spending management.
Financial Systems: Standardize accounting practices and introduce new financial markets to
manage capital movement.
Trade: Reduce trade barriers, privatize industries, and encourage competition to lower prices
and improve quality.
Growth: Increase domestic borrowing, create jobs, and exempt the poor from taxes to boost
purchasing power.
Investment: Implement government budgets prioritizing health, infrastructure, and
education. Partner with private sector for investment.
Anti-Corruption: Pass laws to combat corruption, economic crimes, and fraud.
3
CONSUMER RIGHTS AND RESPONSIBILITIES
CONSUMER RIGHTS (PROTECTION IN A MARKETPLACE):
Safe Purchases: Right to claim refund/repair/replacement for unsatisfactory goods.
Informed Decisions: Right to information about products (e.g., manufacturing date,

ingredients).
Vulnerable Consumer Protection: Special rights for children and others needing safeguards.
Compensation for Harm: Right to compensation for injuries caused by defective
products/services.
Challenges: Online markets, cross-border shopping with varying regulations.
CONSUMER RESPONSIBILITIES (WISE CONSUMER PRACTICES):
Honesty: Provide accurate information when filling consumer documents.

Knowledge: Read product/service information carefully.
Clarity: Ask questions about anything unclear regarding a product/service.
Complaint Procedures: Know how and where to make complaints.
Following Instructions: Use products/services according to terms and conditions.

Reviewing Documents: Double-check documents after purchases.
Needs-Based Choices: Request products/services that meet your needs.
Environmental Awareness: Dispose of products responsibly.
Contact Information: Provide accurate contact details (phone/mail).

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UNIT 3: THE ECONOMY

THE MEANING AND OPERATION OF THE ECONOMY:

ROLE OF INDIVIDUALS IN THE ECONOMY:

Work and contribute their labor to the economy.

ROLE OF INDIVIDUAL IN THE ECONOMY:

Produce goods and services, aiming to make a profit.

Taxes, the government collects revenue through taxes on income, property,

Policies, the government implements various policies, such as fiscal policy

Informed Decisions: Right to information about products (e.g., manufacturing date,

CONSUMER RESPONSIBILITIES (WISE CONSUMER PRACTICES):

Honesty: Provide accurate information when filling consumer documents.

Following Instructions: Use products/services according to terms and conditions.

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