GRADE 7 EMS GLOSSARY

TERM 1 CONCEPTS
Self-sufficient –People who provided for all their needs such as food, shelter, and clothing
Hunter-gatherers - People who hunted wild animals and collected wild plants for food
Nomads - People who moved from place to place and did not stay in one place permanently
Modern society - An industrialised society that uses technology to produce product for trade.
Traditional Society - A society in which communities use basic (old) methods to hunt for and
harvest food.
Bartering- A form of trade in which people exchange goods without money. / The exchange or
swopping of one good for another good.
A promissory note is a note in which the payer promises in writing to pay a sum of money to the
payee. It can either be at a specified time in the future or on demand of the payee.
Payer -The person who pays the money to someone else.
Payee -The person to whom the money is paid or is due.
ATM - Automatic Teller Machine
EFT - Electronic Funds Transfer
PIN - Personal Identity Number
Currency- Medium of exchange
Needs are things that we cannot live without. Things that we really need in order to live (these are
the things that we will die if we do not have).
Wants are things that we desire in life, but that we do not have to have in order to survive. Things
that we can live even if we do not have.
Resources are the means with which goods and services can be produced.
Goods are tangible objects that satisfy needs and wants / materials that satisfy human wants.
Services are intangible things that satisfy human needs and wants / actions that businesses
perform to satisfy consumer needs and wants
Recycling means converting used material into new products that can be used to satisfy needs
and wants
Producers- People who use resources to make goods or provide service.
Household is an individual, a family, or any group of people who have a joint income and make
economic decisions together. Every person in the economy belongs to a household
Consumers- People who buy or use goods and services.
Informal Business - A business that is not taxed and is not monitored or regulated by the
government.
Formal Business- Businesses that pay tax, are monitored and regulated by government.
Epidemic- An outbreak of a disease or illness that spread rapidly among individuals in an area or
population/ A sudden, widespread occurrence of a disease or illness in a community at a
particular time.
Disaster- a sudden event that cause a lot of damage
Trading Businesses sell ready made goods directly to consumers. They are also called retailers
Manufacturing Businesses turn raw materials into finished products. They produce goods.
Service businesses sell their skills or labour to other businesses or people. They provide a service
and charge a fee for their services.
Recycle- Using waste to remake new goods that can be reused or sold.
TERM 2 CONCEPTS

Capital: Money or other possessions that the owner invests in the business.
Assets: All valuable possessions of the business.
Example of assets: Land, Buildings, Equipment, Furniture, Vehicle, Stock, Money in the bank,
Machinery, Money owed to the business by debtors, etc.
Liability: Money that the business owes to other people or businesses.
Examples of liabilities: Loan, Bank overdraft, Debt owed to other parties / Creditors.
Transaction: A financial action or event that takes place in a business. This takes place when two
parties do business by exchanging money or something of value
Drawings- Money withdrawn from the business for personal use by the owner.
Losses: Is the difference between income and expenses when expenses are more than income.
Profit: Is the difference between income and expenses when income is more than expenses.
Income: Money received from the sale of goods or services delivered.
Examples of income: Sales, Rent income, Interest received etc.
Expenses: Payments made for the running of the business.
Examples of expenses: Water and electricity, Rent paid /Rent expense, Salaries, Wages, Stationer,
Fuel, Advertising, Transport costs, Insurance, Telephone, Refreshments, Cleaning material,
Stationery, Administration costs, etc.
Net Worth is the wealth of a person reflected by his assets less her liabilities. Net Worth is what
you OWN less what you OWE
Banking - The act of using the services that a bank provides, with a bank being a financial
institution that works with your money on your behalf.
Savings: Is putting money aside for future use over a short period of time.

Investment: Is putting money aside for future use over a long period of time.
Financial records- Formal document representing the transactions of a business, individual or
organisation/ Daily recording of financial transactions in the accounting system of the business.
Budget: Is a written plan on how future income is to be spent/ monthly financial planning
Income: An amount of money received by an individual or business
Expenditure: The payment of cash for goods or services
Surplus: Is the extra money that remains after all expenses have been paid.
Deficit: The amount of money by which expenditure exceeds income / when expenditure is more
than income.
TERM 3 CONCEPTS
Entrepreneur - A person that thinks of ideas and is prepared to take risks to make those business ideas
successful to earn a profit.

Skill - is ability; talent; expertise or the art of doing something

Characteristics refer to your personality, that is, who you are.
Selling price – The amount at which goods and services are sold to consumers.
Profit- the difference between income and expenses/When income is more than the expenses.
Strengths – Are positive internal attributes what the owner or business is good at.
Weaknesses- Are negative internal attributes that the owner or business is not good at.
Opportunities- Are things or circumstances in the external environment that can help a business to
realise its goals.
Threats- Are things in the external environment over which the business does not have control, but can
be minimised or avoided.
Advertising- Getting the public’s attention for your business so that you can sell your product or service.
Variable costs are costs that change every month depending on the number of items that were
produced and the business that was done.
Fixed costs are costs that remain the same every month regardless of the number of items that were
produced
Mark up is the percentage (money) that is added to the cost price of goods to work out the selling price.
Cost price is the amount of money that is spent to produce goods or to bring the final product to the
consumer before any profit is added.
Sustainable means something that can be kept for a longer period of time.
A sustainable job is a job that a person will have for a long period of time
Inequality- Unequal treatment/ being treated differently
Poverty- The state of being poor, where people have little or no money.
Urban – town or city
Rural – village / countryside
Target Market- A group of customers that a business has decide to mark or sell its goods and service to.
Income and Expenditure Statement: It is the financial statement that is prepared to determine the
financial results of the business. The financial results will indicate whether the business made a profit or
incurred a loss.
TERM 4 CONCEPTS

Insurance is a contract in which an insurer (insurance company) promises to pay the insured
party (a person who is covered in the insurance contract) a sum of money if one or more of the
events specified in the contract, happens in the future. The insured party pays regular small
payments known as premiums

Production is the process of changing raw materials into goods and services. / The making,
creating or producing of goods and services (products) to satisfy needs and wants.
Inputs are all factors of production that are needed to make a final product. / All resources that
are needed to produce goods and services.
Outputs are finished goods and services that are sold to consumers / the end product of the
production process.
Productivity- Describes how quickly inputs can be turned into outputs for sale. / Is the relation
between output and the amount of input which was used to produce the output.

Strike- When workers stop working or work slowly as a form of protest to gain something.

Economic growth- An increase in the amount of goods and services produced by a country.

Natural resources- Anything that comes from nature.

Labour- Physical or mental work done by human beings.

Scarcity- Means that there are limited resources to satisfy the unlimited needs and wants. / There
will always be more needs and wants than resources to meet the needs and wants.

Renewable resources are resources that can be replaced naturally

Non-renewable resources are resources that cannot be replaced once they are used up

Economic Growth is the increase in the production of goods and services in the economy of a
country.
Gross Domestic Product (GDP) is the total value of all final goods and services produced in a
country during a period of one year.
Gross Domestic Product (GDP) is used to measure the economic growth of a country.