SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Demonstrate an understanding of the fundamental principles of the economy 
SAQA US ID UNIT STANDARD TITLE
336701  Demonstrate an understanding of the fundamental principles of the economy 
ORIGINATOR
SGB Procurement, Logistics and Supply Chain Mngt 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Procurement 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 5  Level TBA: Pre-2009 was L5 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This Unit Standard will enable learners to demonstrate an understanding of the fundamental principles of the economy. The person accredited with this Unit Standard will demonstrate a basic understanding of the economy and the global economic indicators that impact on the various supply chain management processes. The person will be able to identify the potential impacts of various economic scenarios on organisations and recommend actions that a Supply Chain Manager can take to benefit from positive global economic changes or to reduce the potential negative impacts of such changes.

A learner credited with this Unit Standard will be able to:
  • Analyse and discuss the main principles of the economy and economics.
  • Evaluate different economic schools of thought.
  • Analyse issues of development and the challenges facing developing economies.
  • Evaluate and utilise the fundamental concepts of economics.
  • Evaluate main types of market structures.
  • Evaluate the role of government and other key stakeholders in the economy in facilitating the implementation of a Supply Chain Philosophy.

    The range includes (e.g. innovative responses to concrete but sometimes unfamiliar problems, using basic analytical interpretation of information). 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners accessing this Qualification are competent in:
  • Communication at NQF Level 4.
  • The execution of supervisory tasks.
  • Mathematical Literacy at NQF Level 4.
  • A fundamental understanding of Supply Chain Philosophy. 

  • UNIT STANDARD RANGE 
    The applied competence expressed in this standard covers the knowledge and understanding of:
  • What an economy is and what the study of economics entails.
  • An overview of the approaches taken by the various schools of thought in economics (Free market, Keynesian economics, Marxist economics).
  • What is meant by "Development'.
  • How development is measured.
  • How a market works.
  • Market structures and Micro-Economics.
  • Identification of the various stakeholders in the economy.

    The role of government in terms of:
  • The ownership of firms and general Fiscal Policy.
  • Monetary Policy and other regulatory measures.
  • International trade and Investments.
  • National Income. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Analyse and discuss the main principles of the economy and economics. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The concept of economy and economics is discussed to reflect the various stakeholders in the economy and what role they play in making the economy work. 

    ASSESSMENT CRITERION 2 
    The elements of the economy and economics are identified and assessed to determine their impact on supply chain. 
    ASSESSMENT CRITERION RANGE 
    Elements of the economy and economics include, but are not limited to, means of production (farms, factories, stores, etc.), to participate in managerial decisions (cooperative and participatory economics), to travel (needed to transport all the items in commerce, to make deals in person, for workers and owners to go to where needed), to buy (items for personal use, for resale; buy whole enterprises to make the organization that creates wealth a form of wealth itself), to sell (same as buy), to hire (to create organizations that create wealth), to fire (to maintain organizations that create wealth), to organize (private enterprise for profit, labour unions, workers' and professional associations, non-profit groups, religions, etc.), to communicate (free speech, newspapers, books, advertisements, make deals, create business partners, create markets), to protest peacefully (marches, petitions, sue the government, make laws friendly to profit making and workers alike, remove pointless inefficiencies to maximize wealth creation).
     

    ASSESSMENT CRITERION 3 
    Key concepts in economics are evaluated in terms of the key questions and processes that need to be addressed. 
    ASSESSMENT CRITERION RANGE 
    Key concepts in economics include but are not limited to Production, Distribution, Consumption, goods and services.
     

    ASSESSMENT CRITERION 4 
    The relationship between social reproduction and economics is analysed to determine the correlation between the two elements. 

    ASSESSMENT CRITERION 5 
    The differences between Macro and Micro economics are critically analysed. 

    SPECIFIC OUTCOME 2 
    Evaluate different economic schools of thought. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The main points of departure of the various economic schools of thought are evaluated to determine the application of the ideologies stating positive and negative implications. 

    ASSESSMENT CRITERION 2 
    The difference between the points of view of economists from the main economic schools of thought are investigated and discussed giving practical examples of where these economies are/were applied. 
    ASSESSMENT CRITERION RANGE 
    Main economic schools of thought include Free market, Keynesian and Marxist.
     

    ASSESSMENT CRITERION 3 
    The kind of model that is operating within the South African economy is analysed to determine its appropriateness. 

    ASSESSMENT CRITERION 4 
    Taking the diversity of South Africa into consideration, suggestions are made on the possible combination of different schools of thought that may contribute to a more stable economy. 

    SPECIFIC OUTCOME 3 
    Analyse issues of development and the challenges facing developing economies. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Issues of development and the challenges facing developing economies are analysed indicating the role that supply chain philosophy can play in responding to these issues. 

    ASSESSMENT CRITERION 2 
    The concept of a development approach is assessed reflecting the criticisms made against the developmental approaches of the different schools of thought. 
    ASSESSMENT CRITERION RANGE 
    Development approach includes but is not limited to free market approach, the dependency approach, the basic needs approach and the transformation approach.
     

    ASSESSMENT CRITERION 3 
    The main points of departure are identified and synergies with each of the stated approaches to development are given. 

    ASSESSMENT CRITERION 4 
    The different terms used to describe "developed" and "under developed" countries are examined to reflect the interpretation of various stakeholders. 

    ASSESSMENT CRITERION 5 
    Development indicators are used to make a judgement on the level of development of a country. 

    ASSESSMENT CRITERION 6 
    The critical developmental issues are identified and analysed to determine their impact on the global economic community. 

    ASSESSMENT CRITERION 7 
    The way in which the philosophy of Supply Chain Management can facilitate the overcoming of some of the barriers to development is assessed. 

    SPECIFIC OUTCOME 4 
    Evaluate and utilise the fundamental concepts of economics. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The fundamental concepts of economics are evaluated to reflect how supply chain philosophy can be used to address economic challenges and opportunities. 
    ASSESSMENT CRITERION RANGE 
    Concepts include but are not limited to demand, supply and equilibrium, market and demand, impact of demand on price, basic law of demand, changes in market conditions influences the demand curve, supplier in relation to the profit motive, equilibrium.
     

    ASSESSMENT CRITERION 2 
    The basic influences of a demand curve are analysed to determine progress against the demand requirements in the supply chain. 
    ASSESSMENT CRITERION RANGE 
    Basic influences include but not limited to given price and quantity data, market conditions, movement along existing demand curve, shift of the entire demand curve.
     

    ASSESSMENT CRITERION 3 
    A demand curve is produced and interpreted when predicting which way a demand curve will shift as a result of specific changes and the implications of this movement. 

    ASSESSMENT CRITERION 4 
    The influences on the quantity demanded at a given price are analysed in relation to underlying market conditions. 
    ASSESSMENT CRITERION RANGE 
    Underlying market conditions include but not limited to price of related goods, consumer income, consumer preference and taste and expectations.
     

    ASSESSMENT CRITERION 5 
    A supply curve is produced and interpreted to reflect changing relationships between price and quantity of supply and implications of movement of the supply curve. 

    ASSESSMENT CRITERION 6 
    The law of supply is analysed in relation to the implications of this law on the economy and underlying market conditions. 
    ASSESSMENT CRITERION RANGE 
    Underlying market conditions include but not limited to cost of input, profitability of alternatives, expectations, changes in modes of production and number of sellers.
     

    ASSESSMENT CRITERION 7 
    The way in which the philosophy of Supply Chain Management can help overcome some of the challenges of supply and demand are assessed. 

    SPECIFIC OUTCOME 5 
    Evaluate main types of market structures. 
    OUTCOME RANGE 
    Main types of market structures include perfect competition and monopoly. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The various schools of economic thought are utilised in the evaluation of the advantages and disadvantages of two main types of market structures within the context of the challenges facing global economic development. 

    ASSESSMENT CRITERION 2 
    The main types of market structures are evaluated in terms of features, goals, roles of players to achieve goals and approach in using production factors. 

    ASSESSMENT CRITERION 3 
    The concepts used in market structures are evaluated. 
    ASSESSMENT CRITERION RANGE 
    Concepts include but not limited to diminishing marginal unity consumer equilibrium, pattern of consumption.
     

    ASSESSMENT CRITERION 4 
    The pros and cons of the various market structures are analysed to reflect the perspective of the three schools of economic thought. 

    SPECIFIC OUTCOME 6 
    Evaluate the role of government and other key stakeholders in the economy in facilitating the implementation of a Supply Chain Philosophy. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The role of government and other key stakeholders in the economy is evaluated in terms of their use of fiscal policies and tools to facilitate the implementation of a Supply Chain Philosophy. 

    ASSESSMENT CRITERION 2 
    Fiscal policy is identified and evaluated to determine the tools of fiscal policy and the methods of operation. 

    ASSESSMENT CRITERION 3 
    Monetary policy is identified and evaluated to determine the tools of monetary policy and the methods of operation. 

    ASSESSMENT CRITERION 4 
    Government policy and the level and type of government participation is analysed to reflect how it could solve specific economic problems. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Any institution offering learning that will enable achievement of this Unit Standard must be accredited by the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA at its discretion.
  • Moderation should encompass achievement of competence described in both individual Unit Standards as well as the integrated competence described in the Qualification. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
  • What the difference is between production and consumption.
  • The different ways in which the means of productions can be utilised.
  • The meanings of the terms economy and economics.
  • What the subjects is that is covered by economics.
  • Who the decision makers are in the economy.
  • The scarcity problem.
  • The paradigms of scarcity vs. abundance.
  • The basic roles and expectations of various stakeholders in the economy.
  • The social scientists view on the difference between humans and animals.
  • The free market schools view on the three most important points in the economy.
  • The Keynesians view on the involvement of government in the economy.
  • The reasons why Marxists oppose capitalism.
  • The approach of the various schools of economic thought to specific social and economic problems.
  • What is meant by the free market dependency, basic needs, and transformation approaches to economic development.
  • The main points made by proponents of each of the developmental approaches.
  • The interpretations associated with the various terms used to describe developed and under developed countries.
  • The main criticisms lodged against the various approaches.
  • The implications of the various approaches on the African Continent.
  • What is meant by measuring development.
  • What developmental measurements tell us.
  • How the various methods of development work and what they actually measure.
  • The Implications of focusing on specific measures.
  • The various challenges regarding development facing the global community.
  • How a Supply Chain Philosophy can contribute towards overcoming some of the developmental problems confronting our global community.
  • What is meant by demand.
  • How a demand curve works.
  • What causes changes in the level of demand.
  • What is meant by supply.
  • How a supply curve works.
  • What causes changes in the level of supply.
  • What is meant by equilibrium.
  • What causes changes in a market's equilibrium.
  • What is meant by micro and macro economics.
  • What a market is and what elements make up a market.
  • What the three types of market structures are that we find in the economy.
  • What the main features are of the various market structures (Perfect competition, monopoly, and oligopoly).
  • The comparisons and contrasts between the features and workings of these various types of market structures.
  • How to use graphs to explain the functioning of the various market structures.
  • The thinking of the three economic schools of thought regarding the various market structures.
  • What the production factors are and who owns them.
  • The features of a perfectly competitive market.
  • How perfect competitors achieve their goals.
  • The time horizon for decisions making under perfect competition.
  • The difference between short and long run production from the perspective of perfect competitors and monopolists.
  • What the main features are of a monopolistic market.
  • How a monopolist makes decisions about production.
  • What is meant by consumer behaviour.
  • How economists explain why consumers choose to buy some goods and not others.
  • How some economists measure consumers' satisfaction.
  • How economists determine when consumers has maximised their levels of satisfaction.
  • The main economic measures available to government.
  • The basic tools of fiscal policy.
  • The basic tools of monetary policy.
  • The general debate over the role of government in the economy. 

  • UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Identifying and solving problems in which responses display that responsible decisions using critical and creative thinking have been made when:
  • Establishing progress against the demand curve. 

  • UNIT STANDARD CCFO WORKING 
    Working effectively with others as a member of a team, group, organisation, and community during:
  • Determining consumer behaviour and its impact on the economy. 

  • UNIT STANDARD CCFO ORGANISING 
    Organising and managing oneself and one's activities responsibly and effectively through:
  • Evaluating the concepts of market structures. 

  • UNIT STANDARD CCFO COLLECTING 
    Collecting, analysing, organising and critically evaluating information when:
  • Gather information on the current economic situation from various sources in order to recommend appropriate actions/solutions to optimise efficiencies within organisational context. 

  • UNIT STANDARD CCFO COMMUNICATING 
    Communicating effectively using visual, mathematical and/or language skills in the modes of oral and/or written persuasion when:
  • Discussing different economic schools of thought in relation to the South African environment. 

  • UNIT STANDARD CCFO SCIENCE 
    Using science, technology and indigenous knowledge effectively and critically, showing responsibility towards the environment and health of others through:
  • Analysis of different schools of thought. 

  • UNIT STANDARD CCFO DEMONSTRATING 
    Demonstrating an understanding of the world as a set of related systems by recognising that problem-solving contexts do not exist in isolation when:
  • Explain the impact of the economy and changes in the economy on the key stakeholders within a supply chain. 

  • UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    N/A 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  74149   National Certificate: Supply Chain Management  Level 5  NQF Level 05  Reregistered  2023-06-30  TETA 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. Academics Dynamics (Pty) Ltd 
    2. Aldabri 106 Institute for Quality Pty Ltd 
    3. Andebe Training and Skills Development 
    4. BPL Academy 
    5. Brilliant Skills Development & Training Solutions 
    6. Centre for Logistics Excellence (Pty) Ltd 
    7. College of Production Technology 
    8. COMMERCE EDGE SOUTH AFRICA PTY LTD 
    9. D AND D LWAZI RENAISSANCE RESEARCH DEVELOPMENT INSTITUTE 
    10. Global Maritime Legal Solutions Pty Ltd 
    11. KVR TRAINING AND BUSINESS SOLUTIONS PTY LTD 
    12. Makwedeng Training 
    13. Metro Minds 
    14. Phephani Learnerships cc 
    15. School of Shipping 
    16. Skills Development Specialists 
    17. UKWAKHILE TRAINING 
    18. Y2K College 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.