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Economics and Business, image, image, image - Coggle Diagram

- - - - Employment decisions (what career path to follow) #
      - Legal decisions (whether or not to take legal action over a family product)
      - Business decisions (what to produce/where to sell a product)
      - Financial choices (how much money to save/spend)
  - - - Labour- human resources eg. workers
      - Capital- manufactured resources eg. equipment
      - Land- natural resources such as coal and water
      - Entrepreneurship- management resources eg. skills/talent required to bring resources together
  - - - Gross Domestic Product (GDP)- total value of goods & services
      - Inflation- the general increase in prices of goods and services
      - Unemployment rate- the percentage of people who are able to work
    - - Material living standards refer to our access to physical goods and services
      - Non-material living standards are harder to measure & include things that may contribute to our happiness, such as freedom , low crime levels, access to facilities or free elections
- - - - Rising prices means consumers must pay more for g&s if they want to continue to maintain their standard of living
      - Eg. $100 spent on g&s in 1980 where worth $408 in 2015
        
        1980 average weekly wage $245, in 2015 it was $1674
    - - Major factor causing ^ prices = stronger demand in economy for G&S
      - stronger demand --> to shortages of G&S therfore ^ prices
      - This may be due to:
        
        Business feeling confident about their future
        
        Trading partners such as China performing well ^ export demands
        
        consumers felling confident about their future income & employment
        
        Low interests reates encourages consumers --> borrow more
    - - ABS measures inflation using the consumer price index (CPI)
      - CPI measures price change of typical basket of g&s purchased by Australian households every quarter
    - - Inflation winners
        
        Borrowers
        
        Importers
        
        High income earners
      - Inflation losers
        
        Low to middle income earners
        
        Bank savers
        
        Exporters
  - - - if GDP ^- economy is growing
      - if GDP v- economy is shrinking
    - - more ppl being employed & paid wages
      - ppl able to spend on a wager rager of goods & services
      - improvement in living standards #
      - more goods & services are produced
    - - Recession- when economic growth v for 2 or more quarters in a row. (6 or more months)
      - Depressions- classed as extreme recession lasting 2 or more years
        
        Economic growth falls
        
        Decrease in available credit
        
        Increase in unemployment #
        
        Decrease in living standards
- - - - Loss of output: the production of goods and services reduces
      - Loss of income: no jobs means no monery and higher relience on governe=ment assistance
      - Loss of government revenue: less people employed means less tax revenue for the governent
      - Increase government expenditure: large proprtion of labour force unemployed, means governmnt spending on welfare will increase
    - - High levels of unemploymen t reflect poorly on that state and federal governments
      - Leads to loss of faith in the current government
    - - Lower standards #
      - Increase in crime and drug abuse
      - Increased family tensions/ breakups
      - Increase in scuicides and other mental issues
      - Loss of self-esteem and confidence
  - - - E.g. construction of Elizibeth Quay or the stadium at Burswood
      - Forrestfield airport lnk has created 2000
  - - - Common during a recession phase
      - During economic growth, consumers not buying as many goods and services
      - Firms/businesses respond by cutting down production and firing workers
        
        Eg. hari dressers
      - Also known as demand-deficient unemployment
    - - Related to occupations that are offered at particular times of the year
      - apple pickers
    - - refers to time spent waiting for a new job
      - The period between finishing 1 job and starting another
      - type of unemployment --> usually volluntary and one of the shortest duration
    - - Includes thse regarded as being virtually unemployable
      - they may be chronically ill, have a diability unskilled, unqualified
    - - Refers to loss of jobs resulting from mis-match of skills or machines replacing labour
      - Eg. cashiers & low skill jobs
  - - - 7.4% in 2020
      - 5.3% in 2019
  - - - Employed for at least one hour per work
      - Aged 15 years and over
- - - - Freedom of speech
      - Low levels of crime and discrimination
      - the environment
      - Literacy rate
- - - - Governments opening up markets for free trade or removing regulations and rules for some areas of the economy
    - - Productivity measures how efficiency resources are used to produce a given level of output
      - Can be increased by inproving labour resources so that workers are able to produce more goods and services per hour
    - - Aims to provide the necessary labour resources to produce more goods and services to increase economic growth and the standard of living
    - - 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
    - - E.g. Budgetary policy- government income and expenditure