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:money_with_wings:ECONOMICS AND BUSINESS :money_with_wings: - Coggle…

- - - - more goods and service
      - more people are employed and paid wages
      - people are able to spend on a wider range of goods and services
      - improvement of living standards
  - - - According to the ABS a person is considered employed if they are
        15 years or older
        employed for at least 1 hr a week
      - Unemployment refers to all those people who are able and willing to work but cannot find a job.
      - Labour force refers to all the eligible workers. Everyone who has a job plus those who are looking for one
      - Unemployment rate is the percentage of people in the labour force who are unemployed
    - - When production or GDP is weak and spending in economy has decreased
      - Increased competition overseas
      - Businesses take their operations offshore
      - Labour- saving technology
    - - Number unemployed divided by the labour force times by one hundred
      - Unemployment rate will never be 0 as people are always changing jobs and machines will always replace labour. Anything 5 – 6% is generally acceptable
      - Australia’s unemployment rate = 4.6%
      - 7.4% in 2020
      - 5.3% in 2019
    - - Social:
        homelessness (living standards drop)
        low self esteem and confidence
        increased crime rates
      - Economic:
        Not having money to spend
        Loss of output (production of goods and services)
        Loss of income (higher reliance on government assistance)
        Loss of government revenue (no tax money)
      - Political:
        reflects poorly on that state and federal governments
        distrust in the government
    - - youth unemployment rate – 10.5%
      - more than double the general unemployment rate
      - why is the unemployment rate much higher in youth?
        Technological changes in low skilled jobs
        E.g., Self service has taken over cash register jobs
    - - Government undertakes new projects to generate jobs
        E.g., The construction of Elizabeth quay or the stadium at Burswood
      - Government providing job training and apprenticeship opportunities
      - Raising the compulsory age of school attendance so that students can improve on their qualification
      - Cutting down benefits to the unemployment so that they make an effort to find a job
    - - Structural unemployment
        
        Refers to the loss of jobs resulting from mismatch skills or machines replacing labour
        E.g., bank machines
      - Frictional unemployment
        
        Refers to the time spent waiting for a new job
        
        It is the period between finishing one job and starting a new one
        
        This type of unemployment is usually voluntary and of the shortest duration
      - Cyclical unemployment
        
        Also known as demand-deficient unemployment
        
        It is common during a recession phase
        
        During when economic growth, consumers are not buying as many goods and services
        
        Firms/ businesses respond buy cutting down production and firing workers
        
        e.g., anyone who was fired during the covid global pandemic
      - Seasonal unemployment
        
        This is related to occupations that are offered at particular times of the year.
        e.g., fruit picking
      - hard core unemployment
        
        include those regarded as being virtually unemployable
        they may be chronically ill, have a disability, unskilled, unqualified, inexperienced or disinterested.
- - - - not all consumers are interested in paying the lowest price for an item.
      - Price is often associated with the quality of the product
      - If price is too low, consumers become suspicious of its quality
    - - 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 easy 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 consumer’s decision to 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.
    - - Items that save the consumer time are easier to use and are often preferred.
      - Eg. Ready-made meals have experienced a 4% annual growth over the last five years with revenue worth around $900 million each year in Australia
    - - Ethics and 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 is consistent with their beliefs
      - Eg. The environment, human and animal rights.
- - - - macroeconomic - policy that affects the whole nation
        
        E.g., Budgetary policy – government income and expenditure.
      - microeconomic- policy affects a particular company, industry or market
        
        E.g., Governments opening up market for free trade or removing regulations and rules for some areas of the economy
    - - Productivity policy
        
        Productivity measures how efficiently resources are used to produce a given level of output
        
        Can be increased by 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 goods and services to increase economic growth and the standard of living
      - Migration policy
        
        Migrants provide skilled labour in areas of need in the economy
        
        Immigration boosts economic growth and therefore living standards
        
        Immigrants consume goods and services; this leads to greater spending and therefore higher employment rate and growth.