TERM 1


We have already seen that, as individuals, we are all producers and consumers. When grouped together as family units in households, businesses have even more producer and consumer opportunities.


Households as producers


Households supply the labour force that works in the various industries and businesses, which make and supply goods and services in a country. Labour (or workers) is one of the key resources in the production process of the economy. You will learn more about production in Term 4. Households also produce goods and services for their own consumption; for example, members of the household prepare meals and wash and iron clothes; they often grow their own food, build shelters, make clothes, collect firewood, and so on.


Households as consumers


Households as consumers use municipal services (electricity, water, sanitation) and many household goods that an individual would not need. Examples are larger refrigerators, freezers, dishwashers, washing machines, larger motor vehicles, and so on.


Households generate a lot of waste and impact on the environment and also influence how many goods, services and resources are used. Many wealthy people are relooking at their own lifestyles and cutting down on the size of their homes and the amount of energy and water they consume as they try to reduce their impact on the natural environment.


Activity 2 Understand the role of households as producers and consumers


Work on your own. 1 Write down other goods and services that you and your household consume.


2 Identify who pays for the goods and services that you and your family use.


3 Some children get paid for doing chores at home. Mention any chores that you get paid to do.


4 The work that household members do is very important. Say why you think this is so.


5 As a class, discuss what kind of things your households produce. State whether they are goods or services:  Is the work done at home important or not?  What would happen if people in the home chose not to do the work?


 Identify what goods and services you and your families provide for the community.


Total: 8 marks Exam words (4) (1) (1) (2)


explain: give the details of something in full sentences and give reasons


identify: find, name and mention


state: give, say or write down the information needed


Washing dishes is a form of household production.


Households use goods such as washing machines, dishwashers, tumble dryers, and other appliances.


Unit 3 Goods and services 27


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