HASS

ð      Can you define the following terms

o   The economic problem

Unlimited needs and wants with limited resources

o   Scarcity

o   Scarcity is the idea that we have unlimited wants and needs, but limited resources to fulfill them.

o   Factors of production

·  Land: This includes all natural resources, such as land, water, forests, and minerals.

·  Labor: This is the human effort used to produce goods and services.

·  Capital: This is the equipment and structures used to produce goods and services.

·  Entrepreneurship: This is the ability to combine land, labor, and capital to create new businesses and products.

ð      Can you list and outline different factors that can increase or decrease supply for goods and services

Increase Supply

  • Price of inputs: If the price of inputs (like raw materials or labor) goes down, the cost of production decreases, which can increase supply.

  • Number of suppliers: If more suppliers enter the market, supply can increase.

  • Technology: New technologies can make production more efficient, which can increase supply.

  • Government regulations: Government regulations can increase supply, for example, by providing subsidies to businesses.

Decrease Supply

  • Price of inputs: If the price of inputs (like raw materials or labor) goes up, the cost of production increases, which can decrease supply.

  • Number of suppliers: If suppliers leave the market, supply can decrease.

  • Technology: If new technologies make production less efficient, supply can decrease.

  • Government regulations: Government regulations can decrease supply, for example, by imposing taxes or regulations that make it more difficult to produce goods and services.

  • Expectations about future prices: If suppliers expect prices to fall in the future, they may increase current supply in order to sell more now at a higher price.

 

ð      Can you list and outline different factors that can increase or decrease demand for goods and services

Increase Demand

·        Price of the good: If the price of a good decreases, people are more likely to buy it.

·        Income: If people have more money to spend, they are more likely to buy goods and services.

·        Tastes and preferences: If people like a product more, they are more likely to buy it.

·        Price of related goods: If the price of a substitute good increases, people are more likely to buy the original good.

·        Expectations of future prices: If people expect the price of a good to increase in the future, they may buy it now.

Decrease Demand

·        Price of the good: If the price of a good increases, people are less likely to buy it.

·        Income: If people have less money to spend, they are less likely to buy goods and services.

·        Tastes and preferences: If people like a product less, they are less likely to buy it.

·        Price of related goods: If the price of a substitute good decreases, people are less likely to buy the original good.

·        Expectations of future prices: If people expect the price of a good to decrease in the future, they may wait to buy it later.

 

ð      Can you provide examples of complimentary and substitute goods

Complementary Goods

·        Printer and ink cartridges: You need ink cartridges to use a printer.

·        Car and petrol: You need petrol to run a car.

·        Phone and phone case: A phone case protects your phone.

·        Bread and butter: Butter is often used to spread on bread.

·        Coffee and milk: Milk is often added to coffee.

Substitute Goods

·        Butter and margarine: Both can be used as spreads.

·        Tea and coffee: Both are hot drinks.

·        Bus and train: Both are forms of public transport.

·        Coke and Pepsi: Both are soft drinks.

·        Jeans and track pants: Both are types of pants.

 

ð      Can you draw a supply and demand curve to determine the equilibrium price

ð      ·  Label the axes: The vertical axis should be labeled "Price" and the horizontal axis should be labeled "Quantity."

ð      ·  Draw the demand curve: The demand curve slopes downward from left to right. This shows that as the price of a good decreases, the quantity demanded increases.

ð      ·  Draw the supply curve: The supply curve slopes upward from left to right. This shows that as the price of a good increases, the quantity supplied increases.

ð      ·  Identify the equilibrium point: The equilibrium point is where the supply and demand curves intersect. This is the point at which the quantity demanded equals the quantity supplied.

ð      ·  Label the equilibrium price and quantity: The equilibrium price is the price at the equilibrium point. The equilibrium quantity is the quantity at the equilibrium point.

ð      Can you describe what a shortage is and when shortages occur? Can you describe what a surplus is and when a surplus occurs?

A shortage occurs when there is not enough of a good or service to meet the demand. This can happen for a variety of reasons, such as a natural disaster, a sudden increase in demand, or a decrease in supply. When there is a shortage, the price of the good or service will usually go up.

A surplus occurs when there is more of a good or service than people want to buy. This can happen when the price of a good or service is too high, or when there is a decrease in demand. When there is a surplus, the price of the good or service will usually go down.

ð      Can you draw and label a two sector circular flow diagram? Can you include the role of the government onto this diagram?

ð      Can you identify and explain different ways in which the Australian Government intervenes in the Australian economy? Including the governments role in protecting the environment

Law and Justice Protecting consumers from unfair pricing, false advertising and defective products.

Redistributing income and wealth through taxation and welfare

Provision for infrastructure Spending tax on essential services (roads, health and education)

Economic Management Achieving consistent and sustainable economic growth

Wages and employee relations ensuring workers and paid a fair wage and not exposed to dangerous working conditions

Provision for goods and services ensuring a reasonable amount of necessary goods and services (water, food, doctors, etc.) are available for consumers at affordable prices

Planning for the environment preserving the environment

International trade and immigration policies increasing and promoting Australia's exports to other countries

ð      Can you describe the major sectors the Federal government’s main sources of revenue and expenditure? (think income tax, welfare etc…)

·        Income tax: This includes taxes on personal income and company profits.

·        Goods and Services Tax (GST): A tax on most goods and services sold in Australia.

·        Other taxes: These include taxes on fuel, alcohol, tobacco, and other goods.

The government spends this money on a variety of things, including:

·        Welfare: This includes payments to people who are unemployed, sick, or elderly.

·        Education: This includes funding for schools, universities, and vocational training.

·        Health care: This includes funding for hospitals and medical services.

·        Infrastructure: This includes funding for roads, bridges, and other public works.

·        Defense: This includes funding for the military.

 

 

ð      Can you explain the key features, advantages and disadvantages of the following types of business structures; sole trader, partnership, corporation, cooperative and franchise.

Sole Trader

  • Key Features: Owned and operated by one person.

  • Advantages: Easy to set up, full control, simple tax.

  • Disadvantages: Unlimited liability (personal assets at risk), limited capital, heavy workload.

Partnership

  • Key Features: Owned by two or more people.

  • Advantages: Shared workload, pooled resources, easier to raise capital.

  • Disadvantages: Unlimited liability (partners share responsibility for debts), potential for disagreements, shared profits.

Corporation (Company)

  • Key Features: Separate legal entity, owned by shareholders.

  • Advantages: Limited liability (personal assets protected), easier to raise capital, professional management.

  • Disadvantages: More complex to set up and run, higher costs, less control for owners.

Cooperative

  • Key Features: Owned and controlled by members who share benefits.

  • Advantages: Democratic decision-making, shared profits, member benefits.

  • Disadvantages: Slower decision-making, potential for conflict, limited capital.

Franchise

  • Key Features: A business model where a franchisor licenses its brand and business operations to a franchisee.

  • Advantages: Established brand, training and support, proven business model.

  • Disadvantages: High initial costs, ongoing fees, limited control.