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Economics and Business, market capitalist economy. - Coggle Diagram
Economics and Business
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Saving and Investing
Saving
- Put money aside to spend later
- How to save the amount of money you save
- Earn more
- Spend less
Setting Savings Goals
- Figure what you want you want in the future and the price of it
- Identify the amount of money you can put aside per week or month
- Figure out how long it will take you to reach your goal
Earning Interest
- Simple Interest- Interest based on just the principal
- Compound interest- Interest added to the principal
Investing
- You put money into a business or commercial venture while making a percent
Assessing your Risk Profile - Investing money means taking a risk, investing risk means there is a chance of loosing money
- Property mater
- Put money in a bank
- Shares
Good and Bad Debt - Debt is when money is owed to another party and must be payed off
- Good Debt
- Money is borrowed and use to purchase something that will earn income or increase in value
- Bad Debt
- Money borrowed and used to purchase something that will decrease in value overtime won't earn much or any income
Scams
Avoiding Scams
- Scams are tricks to discretely take a persons money
- Be Suspicious
- Be Cautious
- Be Patient
- Be Alert
- Be Wise
Scams that Target your Emotions
- Charity Scams- Scammer poses as a genuine charity and takes advantage of a givers generosity
- Romance Scams- The scammer takes advantage of someone looking for romance
Psychic and Clairvoyant Scams- Victim might be told that they'll be in some kind of danger in the future, they may have to pay for something like a lucky charm or be threatened by a curse if they don't pay a fee to the scammer
Investment and Online Scams
- Phishing emails that pretend to be sent on behalf of your bank asking for your account details
- Phone calls from a scammer informing you there is a problem with your account and wanting you to give them your account details or password
- The copying of information from the magnetic strip of an ATM or credit card so there is a clone of your card that can be used legally
Buying Online - Same protection is buying from Australian Businesses. Why is it more risky in General?
- Photos are difficult to see
- Never receive the item
- Might not fit [No return policy]
Knowing Your Consumer Rights
- A consumer who buys a good with a big problem is allowed to have it repaired, replaced or refunded.
- It is considered a problem if it as the following:
- It's unsafe or was majorly different from its sample or description
- The product didn't do what the business said it could do or what the consumer asked for and can't easily be fixed
- A consumer who buys a service with a big problem is allowed to have it repaired, replaced or refunded.
- It is considered a problem if it as the following:
- The problem if known would have prevented the consumer from purchasing the service
- The services performance is substantially unfit from its common purpose
- The service creates an unfair environment/situation
Using Your Account Smartly
- Minimising Banking Fees- Some people have a savings account, but most have a transaction account
- You should check for banking fees which may include:
- EFTPOS fees
- ATM fees
- Phone
- Expection fees
- Keeping your Personal Information Safe - Your PIN [Personal Information Number] must be kept safe at all times
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Global
Globalisation
- All the countries of the world are linked
and should be seen as one worldwide, or global economy
- Australia- We are linked because:
- We trade with other countries
- Of foreign district investment
- Technology
- Migration
- International market for labour
Global Supply Chain
- Many links or activities that are required to move a product or service from a supplier to a consumer around the world
Out sourcing - all countries need to import goods and
services to meet the demands of consumers at home
- Many countries outsource, using resources outside of their
business, often overseas
- Why they outsource- It is usually cheaper
- minimal hourly rate in Australia (doesn't include your pay)
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Economic Concepts
Scarcity
- Economic problem of having unlimited wants and needs but having limited resources
- Factors of production
- Land- natural resources such as coal
- Labour- human resources such as workers
- Capital- manufactured resources such as
equipment
- Entrepreneurship- management resources the skills or talent required to bring the other resources together
Allocation and Markets
- Refers to the way we distribute our scarce resources among producers
- Also refers to the way we distribute our scarce goods and services among producers
- Exchange of goods and services among buyers and sellers is known as a market
Making Choices - We make the following economic decisions:
- Financial choices- such as how much money to save and
spend
- Employment decisions- What career path to follow and who to hire and not hire
- Legal decisions- Whether or not to take legal action over a faulty product
- Business decisions- What to produce or where to sell
Interdependence - 
Specialisation and Trade - Refers to the way an individual or business or country can focus on the production of a particular product or service in order to develop a more efficient and competitive production process
- when a country is unable to produce a good or service, it
can import them from other countries
- many countries around the world are unable to produce the variety of goods and services required to satisfy the needs and wants of their population
- specialisation in an industry allows a country to become more efficient over time as production increases and the country is able to take advantage of the economics scale
- the mass production of goods is cheaper than producing
goods or services in smaller quantities.
Economic Performance and Living Standards
- Economists measure how well the economy is doing using a wide variety of methods:
- Gross domestic product (GDP)- total value of goods and
services produced in a country over a year
- Inflation- the general increase in prices of goods and
services
- Unemployment rate- the percentage of people who are
unemployed out of all the people who are able to work
- Economists also measure living standards
- Material living standards - refers to our access to a
physical goods and services
-Non-material- living standards are harder to measure and include thigs that may contribute to our happiness such as freedom, low crime levels, access to facilities or free elections
- market capitalist economy.