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Economics and business Jorja Pagels, image, image, image, image, image,β¦
Economics and business Jorja Pagels
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Specialisation and trade
SPECIALISATION: Individuals, countries and businesses rely on a production of good/service to develop and efficient and beneficial production process.
TRADE: A request from one individual, country or business to another in an exchange of a good or service.
Interdependence
Relying on others to satisfy our goods and needs. Producers and consumers RELY on one another to produce and consume goods and services.
Making choices
Making choices plays an important part in Australia's economy today. Consumers make choices on what they want to buy and from where they wish to buy it, whilst
Allocation and markets
ALLOCATION: The way we distribute our scarce resources amongst producers.
MARKETS: The exchange of goods and services among buyers and sellers.
Scarcity
The economic problem of having unlimited needs and wants but very limited resources to fulfil these needs and wants. These resources can be natural (Water) or man made (Money).
Labour
Human resources - Workers
Capital
Manufactured resources - Equipment
Land
Natural resources - Coal, Water.
Entrepreneurship
Management resouruces
Economic performance and living standards
ECONOMIC PERFORMANCE: How well an ECONOMY is.
LIVING STANDARDS: How well WE are living
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International Labour Market
Australian businesses can hire people from overseas, & Aussies can go overseas to work
Technology
Used to communicate rapidly with the entire world
Trade
we can trade things we are good at producing for things we are not good at producing (eg; we sell Iron Ore & buy technology)
Migration
More people moving to Australia for a better quality of life increases capacity for Aussie businesses to grow.
Supply Chains
The links between activities required to connect product/service with a consumer:
Retail β Distribution β Manufacturing β Marketing and Advertising β Supply
Out Sourcing
When a company uses resources outside of their business in order to lower costs.
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3 Questions.
HOW to Produce
How will you produce 'said' product? - Supply Chain or Manufacturing process?
WHOM to Produce
Whom is your target audience? - Age, race, gender or hobbies?
WHAT to produce
What is the product you are producing? - Good or Service?
Producers and Consumers
Consumer
Consuming the product the producer produces
Producer
Producing the product the consumer consumes
Financial Institutions
Provide services to assist producers and consumers to trade, save and borrow.
Governments
Collects taxes to provide services to producers and consumers
Types of Economic Systems
Planned capitalist economy
Individuals and firms own the productive resources, although the government determines, what to produce, how to produce and whom to produce
Market socialist economy
Productive resources are mostly owned by government (state) on behalf of the people. 3 Economic questions are similar
Market capitalist economy
AUSTRALIAProducers exchange goods and services with consumers in return for money
Planned Socialist economy
Government determines all 3 economic questions. Majority of resources are owned by the state
Traditional or subsistence economy
Producers are self-sufficient, producing enough to survive rather them focusing on making a profit.
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Interest
Money earned by putting money in the bank
Principal = The initial sum invested
Interest rate = The % offered in return for the invesstment
Simple interest = Interest based on JUST the principal
Compound interest = Interest added to the principal, which is then used to calculate interest
AMOUNT = PRINCIPAL (1+rate*time)
Good and Bad debt
Good debt
Purchase that provides income or rises in value over time
Bad debt
Purchase that will decrease in value over time and/or will not earn an income
Investing
Putting forward money with the expectation of making a profit
What & How We Invest Depends On...
How much money do we need?
How secure will earning that money be?
How soon do we need the money?
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How to gain competitive advantage
Making the consumer aware of the product/service
Advertisements, Making it special. BLENDING MARKETING
Showing corporate social responsibility
Implementing strategies to improve brand reputation
Offering consumers better quality or perceived quality
The eight dimensions of quality
Conformance
Does the product meet expected standards?
Durability
Will the product last a reasonable amount of time?
Reliability
Can the product be tested to work without fail?
Serviceability
How quickly and efficiently can the product be repaired if it does break down?
Features
What additional features does the product have compared to similar products?
Aesthetics
Does the products look, feel, sound, taste or smell appeal to the consumer?
Performance
How well does the product work?
Perceived quality
Does the consumer think the product is quality product?
Being more responsive to consumer needs
Products available at certain times
Offering the consumer a better price
Lowering prices // Discounts & Sales
Enterprising Skills
transferable skills that enable young people to engage with a complex world.
Technical Skills
skills/qualifications specific to a task or industry.
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Scams
Psychic and clairvoyant Scams
Victim may be told that they will be in some sort of trouble in future. They may have to pay for something like a lucky charm or be threatened by a curse if they donβt pay a fee to the scammer.
Phishing
Texts
Encouraging you to click dodgy links
Emails
That pretend to be sent on behalf of your bank asking for account details
Romance Scams
The scammer takes advantage of someone looking for romance
Phone scams
Calls from a scammer informing you there is a problem with your account, asking you to provide your account details or passwords
Charity Scams
Scammer poses as a genuine charity and takes advantage of a giversβ generosity
Card skimming
Stealing of information from the magnetic strip of an ATM or credit card so that a βcloneβ of your card.
Schemes
Multi-Level Marketing Schemes
Pyramid shaped organizational structures which also sell a product so do not technically fit the definition for pyramid schemes
Pyramid schemes
A hierarchical business setup where each paying participant recruits at least 2 more participants whoβs funds are used to pay earlier participants.
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Australian Consumer Law
Customers are to be treated FAIRLY,
Customers are to receive QUALITY goods and services
Customers are to receive ACCURATE INFORMATION.
Customer rights with goods and services
Replacement
Repair
Refund
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Transaction Account
Where we get paid into (Linked to debit card)
Savings account
Where we store our money, acquires interest
