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economics and business - Coggle Diagram

- - - - Major factor causing rising prices is stronger demand in the economy for goods and services
      - Stronger demand can lead to shortage of goods and services therefore increasing prices
      - Consumers feeling confident about their future income and employment
      - Low interest rates encouraging consumers to borrow more
      - Benefits from inflation
        
        Inflation winners:
        High income earners - people with jobs, whose incomes increase at the same rate or faster than inflation
        
        Inflation losers:
        Low to middle income earners - people who incomes that do not increase as fast inflation, such as part time workers the unemployed and pensioners.
        
        Measuring inflation
        
        The ABS measure inflation using the consumer price index (CPI)
        
        CPI measure the price change of a typical basket of goods and services purchased by Australian households every quarter.
- - - - Productivity measures how efficiently resources are used to proceed a given level of output
      - Can be increased baby improving labour resources so that workers are able to produce more goods and services per hour
      - Training and workforce development policy:
        
        Aims to provide the necessary labour resources to produce more and goods and services to increase economic growth and the standard living
        
        Migration policy:
        
        Migrants provide skilled labour in areas of need in the economy
        
        Immigration boosts economic growth and therefore living standards
        
        Immigrants consumer goods and services, this leads to greater spending and  
- - - - Credit is an agreement where money is lent to a borrower and must repaid at a later date (usually with interest)
      - Availability refers to how east it is to borrow
      - Credit cards are an example
      - Spending too much on credit can lead to debt that is difficult to repay. One of the most common reasons for bankruptcy.
    - - A company’s marketing methods can influence a consumers decision o buy
      - Conveys the value of a good or service
    - - As we age we have different needs
      - Marketers may specifically target men or women to buy their product
    - - Item that save the consumer time are easier to use are often preferred
    - - Theirs are standards that provide guidance on what is considered right and wrong
      - Many consumers wish to purchase products that have been produced in a way that consistent with their beliefs
      - Issues to take into consideration
      - Animal rights, the environment, human rights
    - - If prices are too low, consumers become suspicious of its quality
      - Not all consumers are interested in paying the lowest price for an item
      - Price is sometimes associated with the quality of the product