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economic and business, economic growth - Coggle Diagram

- - - - land: natural resources such as coal and water
      - labour: human resources such as workers
      - capital: manufactured resources such as equipment
      - entrepreneurship: management resources such as the skills or talent required to bring the resources together
  - - - we must make the following economic decisions:
        
        financial choices (such as how much money to save or spend)
        
        business decisions (such as what to produce or where to sell a product)
        
        employment decisions (such as what career path to follow
        
        legal decisions (such as whether or not to take legal action over a faulty product)
  - - - the mass production of goods is cheaper than producing goods or services in smaller quantities
    - - we have the resource such as land area
      - beef industry worth 18 billion dollars
  - - - gross domestic product (GDP) - total value of goods and service produced in a country over a year
      - inflation - the general increase in prices of goods and services
      - unemployment rate - the percentage people who are unemployed out of all 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 and include things that may contribute to our happiness, such as freedom, low crime levels, access to facilities
  - - - a measure of total value (in dollars) or all goods and series produced in Australia over a year
        
        if GDP increases - the economy is growing
        
        if GDP decreases - the economy is declining
      - ABA releases the GDP figures every quarter (3 months)
      - economists hope to see an economic growth of 2% per year
    - - more goods and services are being produced
      - more people are being employed and paid wages
      - people are able to spend on a wager range of goods and services
      - important in living standards
    - - recession: where economic growth falls for two or more quarters in a row (6 or more months)
      - depressions - classed as an extreme recession lasting two or more years
        
        economic growth falls
        
        decrease in available credit
        
        increase in unemployment
        
        decrease in living standards
- - - - consumers feeling confident about their future income and employment
      - business feeling confident about their future
      - trading partners such as china performing well increase export demands
      - low interest rates encouraging consumers to borrow more
  - - - high income earner (people with jobs whose income increases at the same rate or faster than inflation)
      - borrowers (rising prices means it may be better to borrow with a fixed interest rate and make the purchase now)
      - importers (the price of imported goods may be cheaper than the price of goods may be cheaper than the price of goods produced in Australia
    - - low middle, income earners (people of incomes that do not increase as fast as inflation, such as part time workers, the unemployed and pensioners)
      - bank savers (money sitting in the bank may not buy as much as it previously did due to price rises
      - exporters (as exported goods become more expensive, demand rises)
- - - - employed for at least one hour per week
      - aged 15 years and over
  - - - loss of self-esteem and confidence
      - lowers standard of living
      - increase in crime and drug abuse
      - increased family tensions/break ups
      - increase in suicides and other mental health issues
    - - loss of output: the production of goods and services reduces
      - loss of income: no jobs mean no money and higher reliance on government assistance
      - loss of government revenue less people employed means less tax revenue for the government
      - increase government expenditure: large proportion of labour force unemployed, means government spending on welfare will increase
    - - High levels of unemployment reflect poorly on that state and federal governments.
      - Leads to a loss of faith in the current government.
  - - - Eg. construction of Elizabeth Quay or the stadium at Burswood
      - Forrestfield airport link has created 2000
  - - - Refers to the loss of jobs resulting from mismatch of skills or machines replacing labour.
      - autonomous haulage trucks replacing human drivers
    - - Refers to the time spent waiting for a new job.
      - It is the period between finishing one job and starting another.
      - This type of unemployment is usually voluntary and of the shortest duration.
    - - 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 by cutting down production and firing workers.
    - - This is related to occupations that are offered at particular times of the year.
    - - Includes those regarded as being virtually unemployable.
      - They may be chronically ill, have a disability, unskilled, unqualified, inexperienced or disinterested.
- - - - • Economic growth falls
      - • Decrease in available credit
      - • Increase in unemployment
      - • Decrease in living standards
- - - - • Animal rights (cruelty, testing on animals,) the environment (pollution, recycling,), human rights (far wages, fair, working conditions
- - - -  The GDP is referred to a measure of the total value (in dollars) of all goods and services produced in a country over a year. GDP is therefore considered a quality estimate of an earning for a whole economy in each period of time. The higher GDP can correlate to higher income. This can improve the living standards of a country because it means more valuable goods and services have been created and thus more accessible, and typically rising earnings correlates to a higher standard of living, while diminishing income causes the standard of living to decline
      -  another example of a material living standard is income. Income is defined as the money received, especially on a regular basis, for work or through investment. The living standard of income and its distribution determines our access to goods and services, with those having a higher income, having more access to goods and services and thus higher living standards
  - - - Freedom of speech
        
        o Freedom of speech refers to the liberty of an individual or community to articulate their opinions and ideas without fear of retaliation or legal sanction. Freedom of speech correlates to living standards because it affects the people’s right to have a say in their society with comfort and without worry of conviction
      - Low levels of crime and discrimination
        
        o Discrimination refers to the prejudice of community based on either age, gender or race. Discrimination and crime levels play a factor in the quality of living due to impacting the level safety and wellbeing an individual can experience in society.
  - - - Housing: 2.5
      - Income: 0.3
      - Community: 4.9
      - Education: 2.6
      - Environment: 2.6
      - Civic engagement: 4.7
      - Health: 3.1
    - - Housing: 7.9
      - Income: 5.7
      - Community: 8.4
      - Education: 8.6
      - Environment: 8.9
      - Civic engagement: 8.9
      - Health: 9.4
  - - - • Eg. Budgetary policy – government income and expenditure
    - - • Eg. Government opening up markets for free trade or removing regulations and rules for some areas of the economy
    - - productive 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 work force 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
        
        • Do you think a high migration and immigration rates helps the economy?
        
        • 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 high embodiment rates and growth