Lessons 6–7 · 2 lessons · E. Sariqov, B. Khaydarov. Foundations of Economics, Grade 8. “Huquq va Jamiyat” Publishing House, Tashkent, 2019
7
Review of Chapter I
Textbook: pp. 34–36
GoalReviews the main concepts of Chapter I – needs, resources, choice and opportunity cost, factors of production, labour productivity, economic systems – and applies them in calculations.
New words
scarcity: resources are limited while needs are unlimited · cheklanganlikopportunity cost: the best option given up · muqobil qiymatlabour productivity, U = Q : T · mehnat unumdorligieconomic system: the form of organising a country's economic life · iqtisodiy tizim
Explanation
The first chapter gives the basic idea of economics: needs are unlimited and resources limited, so we must choose. The price of a choice is the opportunity cost, the best option given up. Producing goods requires natural, capital and labour factors and the entrepreneurial ability that combines them. Division of labour and specialisation raise labour productivity (U = Q : T), but have some risks. Countries answer the three basic questions differently, which is why there are traditional, centrally planned, market and mixed systems. When reviewing, try to give an example from your own life for each concept.
Worked examples
Review question: a farmer can grow 40 t of tomatoes or 100 t of potatoes. The opportunity cost of 1 t of tomatoes is 100 : 40 = 2.5 t of potatoes.
Review question: in a packing shop 8 workers made 1 000 boxes in 5 days: U = 1 000 : (8 · 5) = 25 boxes. After the work was split into stages, the same workers made 1 200 boxes in the same time: U = 1 200 : 40 = 30 boxes. The division of labour raised each worker's daily productivity by 5 boxes.
Class activity
“Term – definition”: the teacher hands out cards with terms and definitions mixed up (need, resource, choice, production, specialisation, mixed economy). Pupils find their matching pairs.
Practice
1
Match terms to definitions: 1) resources; 2) choice; 3) specialisation. a) choosing one possibility and giving up others; b) everything useful for creating goods; c) firms adapting to produce one type or part of a product.
1–b, 2–a, 3–c.
2
A furniture workshop can make either 30 wardrobes or 120 bedside cabinets in a month. What is the opportunity cost of one wardrobe in bedside cabinets?
4
3
9 workers sewed 720 shirts in 4 days. What is one worker's daily productivity?
20
4
A farmer bought a new tractor and his harvest doubled. Will the scarcity problem now disappear completely for his family? Justify your view.
No. As income grows, the family develops new needs (a house, studies, travel); needs are unlimited, while land, time and money are still limited.