This is the 3rd Unit in Cambridge O Level Economics Syllabus.
Since we already know that individuals are concerned about satisfying their wants. Let us see the example of Ahmed who works as a farmer.
He works at the farm, grows crops and sells the produce in the market – He is doing production, therefore he is a producer.
He gets money by selling his produce and he uses that money to buy things needed for his family at home – He is a consumer, because he is using up goods and services.
He borrows money to expand his farm. He also may borrow money if he needed to buy a few extra things for his family, and if the money he has is not sufficient. Therefore, he is also a borrower.
From this we can see that an individual is a producer, a consumer and at the same time a borrower.
In this unit, the following topics are required. Click on the topics to see the tutorials.
- Money and exchange
- Functions of central banks, stock exchanges, commercial banks
- Factors affecting an individual’s choice of occupation
- Changes in an individual’s earnings
- Differences in earnings
- Trade Unions
- Spending, saving and borrowing
- Expenditure patterns
Next Unit: The private firm as producer and employer