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Year 8 DRSC Term 1 Economics and Business (Government involvement in the…
Year 8 DRSC Term 1 Economics and Business
Factors of Production
Land- natural resources
Such as coal or water
Labour- human resources
such as workers
Capital- manufactured resources
such as equipment
Entrepreneurship- management resources: the skills or talents requiring required to bring the other resources together successfully
The resources used by a company to produce goods and services
Consumers
Consumers are "us" individual people that buy goods and services from producers
Services
Services are provided by other people. Services are intangible- you cannot see or touch them
Examples of some Services
Waiter
Hairdresser
Football player
Teacher
Doctor
Goods
Goods are things that anyone wants or needs. Goods are tangible- you can see and touch them.
Examples of some Goods are;
Food
Football
T-shirt
Laptop
Glasses
As consumers we get what we; need, want and can afford
Ethical Consumers
How to be more ethical
Recycle
Buy second hand or flee market products (reuse)
Buy environment friendly products
Don't buy from sweat shop reluctant companies
Sweatshops abuse their employes and pay low wages
Abuse can range from verbal, physical and sexual, and can be done for no proper reason
Forced to sometimes work 24+ hours with no sleep
wages can be little aas 1US cent per hour
Buy free range eggs, meat and other animal products
Buy from fair trade businesses
Less is more
Ethical consumers all have different morals
Need and Wants
Wants
Things that we do not need to survive but we demand to to have
Examples; Phone, Games, Toys and Wi-Fi
Needs
Things that our necessary for our survival
Examples; Water, Food, Clothes, Shelter and Health Care
Economic Concepts
Scarcity
When we have unlimited needs and wants but limited needs
Making choices
Choices made as consumers, ex- What to buy
Choices made as producers, ex- What to produce,where to produce
Specialisation and Trade
When a country is unable to produce a good or service, it will rely on trade, or the ability to import, or export goods or resources to or from another country.
Interdependence
The way we rely on others to satisfy our wants and needs.
Producers, consumers, businesses and the government, depend on each other. We rely on others to help fill the gap in our needs that we cannot fill ourselves
Allocation and market
The way we distribute our scarce resources among producers
The way we then distribute scarce goods and services among consumers
Economic performance and living standards
Gross Domestic Product- The total value of goods and services produces in a country over the year
Inflation- the general increase in prices of good and services
The unemployment rate- the percentage of people who can work and are unemployed
Economists also measure living standard
Government involvement in the market
Welfare
Money given to those who are disadvantaged with biweekly or monthly payments
Payments are money from taxes
Reasons to be supported by welfare
Unemployment benefits
People who can't find work, unemployed
Disability support pension
People who are disabled mentally or physically and therefore cannot work
Aged pension supports
People who are beyond retirement age and can no longer work
Welfare is designed to provide fairness in the economy
Wages and employee relations
supporting equal employment laws have been set by both federal and state governments, which means it is illegal to discriminate someone's gender, race, age or ethnicity in any workplace
Provision of infrastructure
Government has a huge role of providing infrastructure
Roads, railways and ports
International trade politics
Governments control what goes in and out of the country
Customs and quarantine laws impact the influence on the market for numerous products
Governments once tried to protect locally produced products by making taxes on similar goods that were imported from other countries
These taxes were called tariffs
Tariffs were reduced and after 30 years imported clothes were cheaper
Reduced tariffs caused many local businesses to struggle and eventually shutdown
Although negative for Australian manufactures, reduced tariffs made clothing cheaper for Australian consumers
Provision of goods and services
Governments are involved in the market place as actual supplier of goods and services
State governments provide:
Education system
Public Transport
Postal Services
Hospitals and other health care
Ambulance services
Firefighters
Emergency sevices
Law and justice
The Australian market place has a legal framework that allows buying and selling to be fair to all partakers
The Australian Consumer law protects consumers from being taken advantage of by unfair businesses
Laws relating to enforcement give consumers and businesses the right to take their right to court
Criminal law provides protection against threats and/or intimidation in any business dealings
Our court system lets everyone have the right to take legal actions
Planning and the environment
Control's types of buildings and development
Create building standards, so building won't be a hazard
People must gain approval by their state or local government to build anything
To make sure building confirms with certain standards
To ensure that the building is appropriate for the area
Environment Protection Laws
Places restriction on businesses and individuals
Businesses
Restrains what they can release into the atmosphere and water ways
Must dispose of waste material without trashing creeks, rivers or drains
Smoke and fumes MUST be filtered before released into atmosphere
Individuals
Motor vehicles have emission controls to minimise harmful levels of chemicals in exhaust fumes
Immigration politics
Rapid increases in population is great for the workforce
More consumers to buy business's products
More people to work for companies
helps to expand companies
More people who might have a required skill for careers
Australia is a major provider for tertiary education
Encourages Asian and Pacific Islanders to study here
Provides extra income for universities
International students must pay a fee
Producers
Producers are a companies/ businesses that supplies a product or products to consumers.
Producers need consumers to buy their products so they can continue producing.
Types of businesses in Australia
Corporation
Owners' of a Corporation are shareholders and only own a percentage of the business
Franchise
Franchises are when a business sells their rights to their business logo, name, and model to third party retail outlets, to individual third party operators.
Partnership
Is a legal agreement, between 2 or more people, to carry on/co-own, a business
Sole Trader
Simplest form of business
Sole Traders are legally responsible for their business as an individual
Influences on the way people work
Outsourcing Labour
When an out of country supplier provides goods or services
Rapid Communication Changes
Things like "the cloud" have made serious impacts in businesses
Social medias like messenger and facebook is revolutionizing how companies and businesses advertise and talk amongst each other
Future Trends and Factors
Future
Example- Cars that can drive themselves
Past
Example- human driven cars
Technology Changes
Now days machines are very reliable for producing
With new technology the workforce is saying goodbye to old jobs, but new jobs are also appearing
Supply and Demand
Supply
Law of Supply
The higher the price of a product the higher the quantity that the suppliers will want to produce and sell
Producers would rather prices be high
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Demand
Consumers want products to be cheap
Law of demand
Where a larger quantity is demanded when prices drop
Economic Questions
What to produce?
Goods or services?
Decisions on what to produce is based on the availability of resources and location of your corporation
How to produce?
Keep prices low and affordable
Low prices entice more consumers
Manage resources wisely
Who to produce for?
Businesses must know their target market
Target market; Age, sex, race, income, location, hobby's
Retails; e.g. like big W,