Title: Economics and Business Teachers' Manual for Student Workbooks
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in Australia
by Ready-Ed Publications
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Publications
Year
Year 5: Economics and Business Student Workbook is specifically written for 1011 year olds who are living in Australia and studying Economics and Business. The workbook is divided into three sections comprising student information pages and student activity pages which explore economics and business skills as prescribed in the Australian Curriculum.
Section One, Understanding Needs And Wants, differentiates between those things that we would like to have and those things that are necessary for us to stay alive and healthy. Students explore the reasons why individuals cannot have all the items that they want and therefore must make a choice.
Section Two, Resources, explores the ways that societies use natural, capital and human resources in order to satisfy the needs and wants of present and future generations. Students investigate how Aboriginal Peoples and Torres Strait Islanders use resources, and compare this to the ways that resources are used to meet community wants in their local areas and in wider communities.
Section Three, Personal Consumer Choices, identifies factors that influence spending behaviours of buyers and the strategies that can be used when making consumer and financial decisions. The advantages and disadvantages of using cash and cards to purchase goods and services are also examined.
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The difference between needs and wants and why choices need to be made about how limited resources are used (ACHEK001)
• explaining why individuals cannot have all the items they want and therefore must make
listing all the items they would like to have and categorising these items as a need or want
• a choice (the concept of scarcity, that is unlimited needs and wants compared to limited resources)
debating whether one person’s need is another person’s need or want
Types of resources (natural, human, capital) and the ways societies use them in order to satisfy the needs and wants of present and future generations (ACHEK002) brainstorming resources that a community might use
• categorising resources as natural (water, coal, oil), human (workers, business owners,
• designing, making, thinking) and capital (tools, machines, technologies) listing the needs and wants of a local community and exploring the ways resources are used
• to meet these needs and wants exploring how Aboriginal and Torres Strait Islander People’s use of resources reflects their
• spiritual connections to the land, sea, sky and waterways and how these connections contribute to resource use
Influences on consumer choices and methods that can be used to help make informed personal consumer and financial choices (ACHEK003)
identifying goods that they have purchased and listing and explaining the factors that
• influences their decisions, for example, price, fashion, peer pressure, advertising, taste identifying the variety of selling and advertising strategies used by businesses, for example,
• television and internet advertising and email promotions recognising that financial transactions can include the use of notes, coins, credit and debit
• cards, and how these may influence the way people purchase items exploring the strategies that can be used when making consumer and financial decisions,
• for example finding more information, comparing prices, keeping a record of money spent, saving for the future
Develop questions to guide an investigation of an economic or business issue or event, and gather data and information from observation, print and online sources (ACHES004)
identifying questions to frame an investigation or project, such as, “What factors influence
• what my family buys?”, “How can we determine what items to sell as part of our school’s fundraising activities?”, “Are needs and wants the same for everyone?”, “How do different communities value and use resources?”, “Why can’t all needs and wants be satisfied?” using online and print media to find and compare the price of a product in different places
• across Australia
Sort data and information into categories (ACHES005) sorting information into categories, for example categorising the resources needed for a• school fete summarising information gathered into graphic forms such as a graph or table• interpreting graphs and tables of data collected from a survey to identify common• influences on the purchases of class members
Identify alternative responses to an issue or event, and consider the advantages and disadvantages of preferring one to others (ACHES006) identifying the reasons for purchasing an item, putting these in order of importance and• explaining why these factors influenced their choice (for example valuing what is popular above price)
Apply economics and business knowledge and skills in familiar situations (ACHES007) applying their knowledge of needs and wants to categorise the list of items they would• like to have applying enterprising behaviours in a class activity, for example, by helping a group make• decisions about the best way to compare prices of products
Present findings in an appropriate format using economics and business terms, and reflect on the possible effects of decisions (ACHES008) communicating findings in a variety of formats such as oral, written and visual forms,• using charts, tables and graphs using economics and business terms such as choices, resources, businesses, consumers,• needs and wants reflecting on decisions made, for example the extent to which they were influences by• theirs when buying an item
Curriculum Link: The difference between needs and wants and why choices need to be made about how limited resources are used (ACHEK001)
Elaboration: Listing all the items they would like to have and categorising these items as a need or a want.
Information: There are many things that we would like to have, but only some of these things are necessary for us to stay alive and stay healthy. These necessary things are called our needs and include: fresh water, clean air, food, shelter, love and warmth. The remaining things that we would like to have are not essential for our survival. We call these things our wants. Anyone who is able to satisfy a need or a want is called a consumer. All of us are therefore consumers.
Consumers satisfy their needs and wants mainly by obtaining goods and services. Goods are physical items that can be seen and touched, such as: books, iPods, Lego, etc. Services are activities that people do for others, such as: cleaning, gardening and dog-sitting. Anyone who provides goods or services is called a producer.
Answers:
Answers will be unique for each student1. and may include items such as: an iPod, computer games, skateboard, new shoes and other personal wants.
Answers could include items such as:2. water, oxygen, food, shelter, clothing, warmth and love.
Students circle any items which cross-3. over both lists.
Reasons for similarities and differences will vary. If there is some cross-over this might indicate that the student values a healthy lifestyle or is satisfied with the simple things in life. Students with no cross-over might indicate that they already have most of the items in list 2 so they wanted additional items.
Curriculum Link: The difference between needs and wants and why choices need to be made about how limited resources are used (ACHEK001)
Elaboration: Listing all the items they would like to have and categorising these items as a need or a want.
Answers:
Needs are things that are essential for1. good health and survival. Wants are those things that people would like to have but are not essential for their survival. Students indicate which grocery items2. are needs, such as: fresh fruit and vegetables, bread, cereal, meat and milk. Luxury items, such as: chocolate, soft drink, hair-spray and chewing gum should be marked as wants.
Some grocery items may be difficult to3. classify because food has been identified as a need that is essential to one’s health and survival. However, some food items, such as chocolate or cake, could be classed as luxuries that one could live without.
Curriculum Link: The difference between needs and wants and why choices need to be made about how limited resources are used (ACHEK001) Elaboration: Listing all the items they would like to have and categorising these items as a need or a want.
Answers:
Consumers1. obtain goods and services from producers in order to satisfy their needs and wants. A good is a physical item that can be2. seen and touched, e.g. an iPod. A service is an activity that someone does for someone else, e.g. mowing the lawn. Getting a haircut3. Service Buying groceries Good Catching a bus Service Dining at restaurant Good or Service Going to school Service Buying a computer Good
Scenarios, such as dining at a restaurant,4. could illustrate the consumption of both goods and services because it involves purchasing food which is a good but you are also paying for someone to cook the food and serve it to you (the chef and the waiter). This is a service. Answers will be unique for each student.5. Examples include:
Food: bread, butter, school canteen.
Clothing: pyjamas, school uniform. Transport: car, bus, train, petrol. Household: toaster, fridge, television. School: books, pen, paper, teacher. Technology: mobile phone, computer.
Curriculum Link: The difference between needs and wants and why choices need to be made about how limited resources are used (ACHEK001)
Elaboration: Listing all the items they would like to have and categorising these items as a need or a want.
Information: All people have needs and wants. The kinds of things that an individual can benefit from, such as: a bicycle, a skateboard, a can of soft drink or a new hairstyle are referred to as personal needs and wants. In most cases these goods and services can be obtained from businesses or retailers.
Goods and services that many people in society can benefit from are called community needs and wants. For example, roads, footpaths, public transport, rubbish collection and schools are available to be shared by all members of the community. Usually the government is responsible for providing and maintaining them with money collected from taxes, fares and tolls.
Needs and wants that individuals can benefit from.
Needs and wants that many members of society can benefit from.
Businesses and retailers. The government. What are some examples? iPod, bicycle, soft drink. Roads, parks, schools, hospitals.
Curriculum Link: The difference between needs and wants and why choices need to be made about how limited resources are used (ACHEK001)
Elaboration: Listing all the items they would like to have and categorising these items as a need or a want.
Information: Max woke up at 7am to the sound of his alarm clock. He only snoozed once before getting out of bed and making his way to the bathroom. Max had a quick shower, dried himself and then brushed his teeth. He got dressed, combed his hair and then went to the kitchen to make some breakfast. After eating two slices of toast with Vegemite and drinking a glass of orange juice, Max said goodbye to his family, picked up his bag and then set off for school. He only had a short walk down the footpath and then through the park. As he reached the cross-walk in front of the school, the attendant asked the students to wait while an ambulance went past. The attendant then stopped the other traffic while the students crossed the road. Max waited eagerly for the bell to ring. Friday was his favourite day at school and he had a great line up of subjects ahead.
provided
difference is not always clear. For example, is a new pair of shoes a need or a want?
The answer to this question depends on a number of factors, including what kind of shoes they are, how many pairs of shoes the person buying them already has, in what kind of environment the shoes will be worn, and how expensive the shoes are. When engaging in this type of analysis it is possible to see how one person’s need could be another person’s want.
Answers: Essentially the classification of a need or a want is a matter of opinion as long as the students can justify their positions. Following are examples of the kind of debate that could be generated.
Curriculum Link: The difference between needs and wants and why choices need to be made about how limited resources are used (ACHEK001)
Elaboration: Listing all the items they would like to have and categorising these items as a need or a want.
Answers: Students should include pictures of community needs and wants, such as: hospitals, schools, roads, footpaths, ovals/ reserves, shopping centres, libraries, skate parks and/or other services and facilities that would benefit many members of the community.
Curriculum Link: The difference between needs and wants and why choices need to be made about how limited resources are used (ACHEK001)
Elaboration: Debating whether one person’s need is another person’s need.
Information: The difference between needs and wants appears to be fairly straightforward. Needs are those things that are basic to our survival, such as: food, clothing and shelter, while wants are all the extras that we would like to have, but are not necessary in order to live. When we consider specific items, however, the
A hamburger – could be classed as a need if it satisfied the requirements of a simple meal (bread, meat patty and salad). However, if a person already had food in the fridge but decided they would like to visit a fast food outlet, then the hamburger could be classed as a want.
A new jacket – could be classified as a need if a person lived in a cold climate and used it regularly to keep warm. However, if the person already had a number of stylish jackets then it could be classed as a want. Education – could be classed as a need in order for societies to progress. People can survive without an education. Their opportunities, however, may be limited.
A mobile phone – this kind of device may be considered a need, particularly in today’s business world. However, prior to the 1990s most people in society did not have a mobile phone and survived. This may generate discussion about how needs and wants may change over time.
Curriculum Link: The difference between needs and wants and why choices need to be made about how limited resources are used (ACHEK001)
Elaboration: Debating whether one person’s need is another person’s need.
Information: A simple way of understanding the economy is to think of it as a system consisting of different parts that work together to achieve a common goal. The diagram below shows the two main parts of an economy, which are: consumers and producers. Consumers consist of all the people who demand and use goods and services. Producers consist of people who supply goods and services. The common goal that they share is to satisfy the needs and wants of people in society.
CONSUMERS DEMAND goods and services
SUPPLY goods and services
Answers:
A system is a group of different parts1. which work together to achieve a common goal.
2a. Consumers and producers are the2. two main parts of an economy.
2b. The common goal of consumers and producers is to satisfy the needs and wants of people in society.
In an economy,3. consumers consist of all the people who demand and use goods and services while producers consist of anyone who supplies goods and services.
Answers will vary. An example is: In4. my family there is a demand for tennis equipment which is supplied by Number One Sports Store; or In my family there is a demand for education which is supplied by Baronia Heights Primary School.
Elaboration: Explaining why individuals cannot have all the items they want and therefore must make a choice (the concept of scarcity, that is unlimited needs and wants compared to limited resources).
Information: Although it would be nice, most people realise that they will never be able to fully satisfy all of their wants. This is because there are no limits to what we want. Even after we are able to satisfy certain wants, others will often arise. For example, a person who buys a gaming console will probably want to buy games to play on it. Depending on the type of games that they buy, they may then also want accessories, such as additional controllers and steering wheels. People’s wants also change over time. For example, the kinds of things that you want now are likely to be different to what you wanted when you were 5 years old and by the time you turn 15 they are very likely to be different again. Other factors that influence what people want include the time of year, advertising, peer pressure and affordability.
Page 13: The Economic Problem 1 Curriculum Link: The difference between needs and wants and why choices need to be made about how limited resources are used (ACHEK001)
Compared to our unlimited wants, the resources that we have to satisfy them are limited or scarce. Some people refer to this situation as ‘the economic problem’ because it creates a dilemma where people are forced to decide between their various competing wants. For example, think about all your personal wants and then consider how many of these goods and services you can actually afford. You have probably even had to choose between buying one item or another in the past. In the same way, governments often have to decide how limited resources will be allocated to meet the unlimited wants of the community. For instance, if too much money is spent on improving hospitals, there may be less money to spend on education. Making choices like this is difficult because both services are important for and valued by the community.
While most people understand what they can and can’t afford with the money that they have, they sometimes forget that it is not just money that is limited. The quantity of natural, cultural and human resources available to satisfy our needs and wants on a long-term basis is also scarce. We must therefore make sure that resources are used in a sustainable way. This means that we must decide on the most efficient ways of using resources and be careful not to waste them so that they will be available for both current and future generations to satisfy their needs and wants.
Curriculum Link: The difference between needs and wants and why choices need to be made about how limited resources are used (ACHEK001)
Elaboration: Explaining why individuals cannot have all the items they want and therefore must make a choice (the concept of scarcity, that is unlimited needs and wants compared to limited resources).
Answers: ‘Scarcity’ refers to a limited amount or1. supply of resources. land labor capital entrepreneurship food clothing shelter security comfort medicine jewellery affection transportation good health children variety in diet knowledge convenience recognition travel wisdom recreation control respect entertainment love
Making choices about how to allocate4. resources is difficult for the government because different needs, such as transport, health and education, are seen as being equally important but there may not be sufficient resources to allocate equal spending in order to make a difference in any one area.
‘The economic problem’ refers to the2. limited resources available to satisfy virtually unlimited needs and wants. This is reflected by the scales being weighed down by the wants.
Answers will be unique to each student.3. For example a student may recall a time when they liked two different pairs of shoes but were only allowed to buy one.
5. efficient ways of using resources and be careful not to waste them so they will be available for both current and future generations to satisfy their needs and wants.
People need to decide on the most
Curriculum Link: The difference between needs and wants and why choices need to be made about how limited resources are used (ACHEK001)
Elaboration: Explaining why individuals cannot have all the items they want and therefore must make a choice (the concept of scarcity, that is unlimited needs and wants compared to limited resources).
Information: One of the key problems faced by consumers is that they are unable to afford every good and service that they would like to buy. Decisions therefore need to be made about which wants to satisfy immediately and which to give up or delay. Those things that consumers choose to give up are referred to as the ‘opportunity cost’ because by spending their money on one thing, they have lost the opportunity to buy something else. For example, imagine that a person who has only $20 left to spend is choosing between going to the movies that day and buying grocery items for the family’s evening meal. If he/she chooses to go to the movies then the ‘opportunity cost’ will be dinner for the family. If he/she chooses to provide dinner for the family then the ‘opportunity cost’ will be the movie.
Every consumer choice has positive or negative outcomes. When making a decision it is necessary to look at all the benefits and costs that go along with each choice. The best choices are the ones that result in the most benefits and the fewest costs. Wise consumers use this process to help prioritise their needs and wants. They understand that the decisions that they make can have a significant impact on their quality of life.
An ‘opportunity cost’ is anything that1. consumers must choose to give up in order to have something else. The ‘opportunity cost’ for George was2. his $1 bus fare. The ‘opportunity cost’ for Lucy was having a birthday party. The benefits of George’s decision was3. that he was able to immediately satisfy his desire for an ice cream and possibly cool down while consuming it. However, as a result of choosing to give up his bus fare, George might have needed to walk home, particularly during the hottest part of the day. Lucy benefited from her decision because she got to see her favourite band. However, she was unable to celebrate her birthday with friends.
Curriculum Link: Types of resources (natural, human, capital) and the ways societies use them in order to satisfy the needs and wants of present and future generations (ACHEK002)
Elaboration: Categorising resources as natural (water, coal, oil), human (workers, business owners, designing, making, thinking), and capital (tools, machines, technologies).
Information: A resource is anything that has some form of use or value. In order to satisfy the needs and wants of consumers, producers use resources to supply goods and services. There are three main types of resources: natural, capital and human.
Natural resources refers to anything that exists without humans having put them there. Examples include: the oceans, earth, soil, forests and animals. Mineral and energy resources, such as: gold, diamonds, coal, oil and natural gas, are also classified as natural resources which can be used for production.
Human-made objects and technology which are used to produce goods and services are referred to as capital. Examples include: a truck used to transport goods, the desk that someone works at and the tools used by a tradesperson.
Human resources include people themselves and the work that they carry out. This includes: physical labour, such as the kind of work a bricklayer does, as well as mental labour, such as the kind of work an office worker might do. When people have the skills and expertise which enables them to organise the entire production process, this is referred to as enterprise. These people, known as entrepreneurs, often hold high positions within a business including: owners, managers, principals and project officers. They are often described as ‘the
brains’ behind the business because they are able to generate new ideas and manage natural, capital and human resources in order to make their ideas become a reality.
Link: Types of resources (natural, human, capital) and the ways societies use them in order to satisfy the needs and wants of present and future generations
Curriculum
(ACHEK002)
Elaboration: Categorising resources as natural (water, coal, oil), human (workers, business owners, designing, making, thinking), and capital (tools, machines, technologies).
Answers:
Resources – anything that has some form of use or value, e.g. wood, cars, people. Natural – resources that exist without humans having put them there, e.g. oceans, earth, forests, animals, minerals.
Capital – human-made objects and technology, e.g. vehicles, computers. Human – people, their intellectual abilities and the physical work that they are capable of, e.g. labour carried out by a bricklayer or a teacher, or the enterprise skills of a manager.
Curriculum Link: Types of resources (natural, human, capital) and the ways societies use them in order to satisfy the needs and wants of present and future generations (ACHEK002)
Elaboration: Categorising resources as natural (water, coal, oil), human (workers, business owners, designing, making, thinking), and capital (tools, machines, technologies).
Answers: Education.
1. Students.2.
Example of school resources include:3. Natural – the site on which the school is built.
Capital – buildings, classrooms, desks, chairs, board, pens, paper, books, computers, gymnasium.
Human – Principal (enterprise), teachers, librarian, office staff, canteen staff (labour).
Curriculum Link: Types of resources (natural, human, capital) and the ways societies use them in order to satisfy the needs and wants of present and future generations (ACHEK002) Elaborations: Brainstorming resources that a local community might use. Listing the needs and wants of a local community and exploring the ways resources are used to meet these needs and wants.
Information: If you’ve ever had a drink of milk, eaten a sandwich or consumed a meal from a local food establishment, then you have enjoyed some of the many conveniences of our readily available food supply. However, how often have you considered what resources are used to produce those foods for your consumption? The phrase ‘farm to fridge’ refers to the stages of food production, from growing crops and raising livestock to supermarket sales and consumption. An investigation of these stages enables us to gain an appreciation of the natural, capital and human resources involved in our food production systems.
Every year the average Australian drinks 106 litres of milk, eats over 13 kilograms of cheese, uses nearly 4 kilograms of butter and consumes 7.5 kilograms of yoghurt. Many other products, including muesli bars, chocolate, soups, breads and cakes also have milk as an ingredient. So what resources does the dairy industry use to meet the dietary needs and wants of the wider community?
owned and operated, and may employ an additional labourer or farmhand. Farms generally consist of: a homestead where the family live, large machinery and a storage shed, the dairy (where the cows are milked), storage vats for the milk and numerous paddocks divided by fences.
Cows kept for their milk will be left to graze in the paddocks all day and eat a variety of grasses. Farmers use fertilisers and irrigate their pastures to help them grow. Milking of the cows occurs twice a day, usually at around 5.30 am and 3.00pm. In the early years of the dairy industry, cows were often milked by hand, but today, large milking machines such as the rotary dairy, which allows up to 20 cows to be milked at the same time, have made the milking process much more efficient.
Each day tankers transport the milk from the dairy farms to the nearest processing plant or factory. The milk is then pumped into large insulated vats before undergoing two important processes. First, the milk is pasteurised to kill any harmful bacteria, then it undergoes a process called homogenisation, which makes the milk smooth and creamy.
The first stage of dairy production involves the raising of cattle on dairy farms for milk. In 2013 there were approximately 6,400 dairy farms in Australia, with an average herd size of 258 cows. Most farms are family
The final stage at the processing factory is to turn the milk into a variety of dairy products including: yogurt, cheese, cream, ice cream, butter and other types of milk such as: skim, reduced or low fat, long life, flavoured, powdered or condensed milk. From the time that the milk is received at the factory, it can be processed and packaged within 12 to 16 hours before being transported in trucks to retail outlets.
Curriculum Link: Types of resources (natural, human, capital) and the ways societies use them in order to satisfy the needs and wants of present and future generations (ACHEK002)
Elaborations: Brainstorming resources that a local community might use. Listing the needs and wants of a local community and exploring the ways resources are used to meet these needs and wants.
The phrase ‘farm to fridge’ refers to1. the stages of food production, from growing crops and raising livestock to supermarket sales and consumption. The main resources used to produce2. milk from ‘farm to fridge’ include: FARM
Natural – the land on which the dairy farm operates; soil; water supply. Capital – buildings such as the homestead; machinery and storage sheds; the dairy; milk storage vats; milking machines; paddocks and fences; fertilisers; and irrigation.
Human – the farmer and family who run the dairy; farmhand.
Natural – the land on which the factory or processing plant operates. Capital – buildings; machinery and equipment used for storage/ refrigeration; pasteurisation; homogenisation; processing and packaging.
Human – the driver of the milk tanker; factory workers; manager.
Natural – the land on which the retail outlet is built.
Capital – buildings; equipment including fridges; shelves; cash registers.
Human – sales staff ; managers.
Students explore the natural, capital3. and human resources related to the provision of a specific community service or facility in their local area.
Curriculum Link: Types of resources (natural, human, capital) and the ways societies use them in order to satisfy the needs and wants of present and future generations (ACHEK002)
Elaboration: Exploring how Aboriginal and Torres Strait Islander People’s use of resources reflects their spiritual connections to the land, sea, sky and waterways and how these connections contribute to resource use.
The First Australians
Australia has two distinct indigenous groups - Aboriginal Peoples and Torres Strait Islander Peoples. Archaeological evidence suggests that they have lived continuously in Australia for over 50,000 years. At the time of European settlement, approximately 600 different clans or ‘nations’ are estimated to have lived around the continent, each with their own language, cultural traditions, spiritual beliefs and unique identity. Despite their diversity, each group shared in common a rich connection to, and relationship with, its land or place, often referred to as ‘Country’.
All cultures have stories about creation. For the Aboriginal Peoples, this time has been translated into English as the ‘Dreaming’. Torres Strait Islanders do not use the term ‘Dreaming’, although they do have similar creation stories and beliefs. While these stories vary depending on the regions in Australia that they originated from, many have in common the giant spirit creatures or ancestral beings that created the environment that we know today, including the land, sea, sky, waterways and living things. Passed on orally for thousands of years, they illustrate the spiritual connection between the people, their places and their environment.
The Aboriginal and Torres Strait Islander Peoples had an excellent knowledge of their local areas, the diversity of plants and animals found there, and a deep understanding of the seasons. As a result they were able to utilise the natural resources that the land had to offer.
Access to fresh water, food, materials for tool-making, building and everyday living depended on the location in which a clan lived. Some hunted animals such as kangaroos for their meat and used their skins to keep warm. Possums, birds, snakes, goannas, fish, lobsters, eels and tortoises were also captured by certain groups, while shellfish, fruit, seeds, roots, witchetty grubs and other kinds of ‘bush tucker’ were gathered. Rivers, waterholes and underground reservoirs provided fresh water.
Natural resources were used to make capital resources, such as shelter, tools and implements, and reflect the geographical location of different groups. For example, coastal tribes used fish bones and shell to tip their weapons, while desert tribes used stone tips. Implements such as: knives, scrapers, axe-heads, spears, digging sticks and various vessels for eating and drinking were common to numerous tribes throughout the continent.
Curriculum Link: Types of resources (natural, human, capital) and the ways societies use them in order to satisfy the needs and wants of present and future generations (ACHEK002) Elaboration: Exploring how Aboriginal and Torres Strait Islander People’s use of resources reflects their spiritual connections to the land, sea, sky and waterways and how these connections contribute to resource use.
The term ‘Country’ refers to the land1. or place which Aboriginal Peoples are connected to.
Aboriginal Peoples have a spiritual2. connection with ‘Country’ through the creation stories and beliefs associated with the Dreaming. Their ancestral beings created the land, sea, sky and all living things, and made the local people guardians or custodians of the land. Access to freshwater, food, materials for3. tool-making, building and everyday living depended on the location a clan lived in and the diversity of plants and animals found there. For example, coastal tribes used fish bones and shells to tip their weapons while desert tribes used stone tips.
Coolamon – an oblong shaped dish made from wood or bark used for a variety of purposes such as carrying water, food and babies.
Woomera – a hooked stick made from wood that was used to throw spears with greater force and speed. They were also used for a variety of other purposes including cutting and digging.
Curriculum Link: Types of resources (natural, human, capital) and the ways societies use them in order to satisfy the needs and wants of present and future generations
Digging sticks – multipurpose tools made from hard wood used for digging to find underground water, roots and bush tucker. They were also used for grinding.
(ACHEK002) Elaboration: Exploring how Aboriginal and Torres Strait Islander People’s use of resources reflects their spiritual connections to the land, sea, sky and waterways and how these connections contribute to resource use.
Information:
In many Aboriginal Dreaming stories, the ancestral beings responsible for creation often spoke to the tribal Elders and made the local people guardians or custodians of the land. This is why the people have a very special meaning of ‘Country’ that goes beyond the supply of food, water and other resources. Their spiritual and cultural connections to the land oblige them to look after the sites of their ancestors.
Message sticks – wooden sticks used to relay information between different Aboriginal groups. Each stick was carved in such a way that would help the carrier to remember long and complex messages.
Curriculum Link: Types of resources (natural, human, capital) and the ways societies use them in order to satisfy the needs and wants of present and future generations (ACHEK002) Elaboration: Exploring how Aboriginal and Torres Strait Islander People’s use of resources reflects their spiritual connections to the land, sea, sky and waterways and how these connections contribute to resource use.
Answers:
Traditional Land Management Practices
Read the examples of ways in which traditional Aboriginal Peoples used resources to meet their needs and wants without over-exploiting them.
Some clans developed a nomadic
lifestyle, moving seasonally between locations so that water supplies were given a chance to renew.
Eating a large variety of foods meant
that no one food source was depleted.
Enough seeds were left so that there
would always be new growth.
The young of any animals, or females
Students use primary sources, such as guest speakers, and/or secondary sources, such as online and print resources, to investigate the Aboriginal nation or language group who once occupied their local area.
still caring for their offspring, were rarely killed.
When collecting eggs from a bird’s nest,
some were always left to hatch in order to ensure the survival of the species.
Unfortunately, many Aboriginal People’s connections to the land were broken after the time of European settlement in Australia. It is estimated that up to 70% have lost their traditional connection to Country and knowledge about the use and management of resources. Today, Elders and their people, who have had this knowledge passed on to them, are working with both Indigenous Australians and nonIndigenous Australians to ensure that the environmental legacy of their ancestors continues.
We have walked on the land for thousands of years.
We are caretakers of the land not owners of the land.
We are one with the land. We hunt on the land, the land feeds us. We make all uses of the land. We have cultural ceremony on the land. We have all-embracing knowledge of how the land changes and how to adapt to that change. We know how to read the land. We communicate with each other concerning the land.
The land is part of our dreaming.
Poet Unknown
Taken from ‘Understanding the Land through the Eyes of the Ngunnawal People: A Natural Resource Management Program for ACT Schools’.
Published by the ACT Government.
Answers:
Students can choose any three1. lines which they believe reflect the connection between the land and people.
custodians of the land. Their spiritual and cultural connections to the land oblige them to look after the sites of their ancestors.
In many Dreaming stories, the ancestral2. beings spoke to the tribal Elders and made the local people guardians or
Curriculum Link: Influences on consumer choices and methods that can be used to help make informed personal consumer and financial choices (ACHEK003)
Elaboration: Identifying goods they have purchased and listing and explaining the factors that influenced their decision, for example, price, fashion, peer pressure, advertising, taste.
Information:
Every day, consumers make decisions about which goods and services to buy. With so much choice on the market, it can often be difficult to decide which product to purchase. Below are some of the factors that influence these decisions.
When prices are lower, consumer demand for products is usually higher. Producers often consider this when they lower their prices in order to increase their sales.
Consumers often know what they like and prefer to stick with those products. For example, some people prefer the taste of Vegemite over other similar spreads.
Goods and services which can be used as a substitute, such as margarine instead of butter, can often influence consumer choice, particularly if factors such as price and nutrition are valued.
Advertising is a strategy which is used to inform consumers about a product or persuade them to buy it. A good advertising campaign can influence consumers to make a purchase.
Consumers are sometimes influenced by the purchases made by their friends or people of a similar age or gender.
Answers:
Examples will be unique to individual students.
Curriculum Link: Influences on consumer choices and methods that can be used to help make informed personal consumer and financial choices (ACHEK003)
Elaboration: Identifying the variety of selling and advertising strategies used by businesses, for example, television and internet advertising and email promotions.
Information:
Current trends in clothing, footwear and accessories, worn by celebrities, seen in magazines or on television, often become popular choices for consumers.
Advertising is a strategy used to inform consumers about a product or persuade them to buy goods and services. Advertising is everywhere - on the television, the radio, online, in newspapers and magazines, on billboards, public transport and at sporting events. Everyday, messages presented through advertisements are both consciously and unconsciously absorbed by potential consumers and often influence their behaviour. Consumers may be targeted according to their age, gender, interests or activities. Advertisements attract consumers’ attention by one or more of the following strategies: brand• names – the names of the products being marketed; logos• – graphic images used to represent the brands so that they can be easily recognised by consumers; slogans• – short, often catchy phrases that consumers can associate with the product. On television and on the radio, these may be sung or form part of a jingle in order to remain in the memories of listeners; language and images
• – phrases and images are carefully chosen to attract the attention of the target audience.
Persuasive advertising uses language together with images that are often exaggerated in order to convince consumers that they must have the products, while informative advertising presents consumers with selective factual information; other advertising techniques• –strategies used to appeal to a target audience may include the use of humour; the inclusion of beautiful people such as models and celebrities; the promise of popularity, happiness, success or beauty; bribery (for example buy one get one free); play on the consumers’ fear of ill-health or lack of safety; sentimental images including families, children and pets; scientific evidence that a product really works; the use of repetitive language, for example ‘Save! Save! Save!’ may also be used to emphasise a particular message and commit it to the buyers’ memories.
Answers:
Students provide examples of advertisements that they have seen on television that are appealing to consumers.
Page 30: Advertising 2
Curriculum Link: Influences on consumer choices and methods that can be used to help make informed personal consumer and financial choices (ACHEK003) Elaboration: Identifying the variety of selling and advertising strategies used by businesses, for example, television and internet advertising and email promotions.
AD:
Answers:
Brand name: Funky Phone.1.
Logo: FP
Slogan: It’s fantastic! It’s fun! It’s funky! The target audience includes young girls2. and boys aged from approximately 10 years to teenagers.
Adjectives such as ‘fantastic’, ‘fun’ and
3. ‘funky’ are used to make the product sound entertaining and attractive. The phrase, ‘You’ll be the envy of all your friends’ and the picture of the young girl surrounded by lots of friends suggests that if you get a Funky Phone you will be popular.
Advertising techniques include:
4. i) the promise of popularity (you’ll be the envy of all your friends) ii) bribery (free internet for 12 months) iii) scientific evidence (latest technology)
Extension:
The advertisement above is an example of print advertising and may appear in newspapers, magazines, online or as a poster. Another way of promoting a product is through radio advertising. Such advertisements require careful consideration as they rely primarily on what consumers can hear rather than visual prompts.
In groups of 2 – 3, create a radio advertisement to persuade listeners that they must buy a Funky Phone. Your advertisement should last between 30 and 60 seconds, make use of persuasive language and advertising techniques appropriate to the target audience, and include a short jingle.
Curriculum Link: Influences on consumer choices and methods that can be used to help make informed personal consumer and financial choices (ACHEK003) Elaboration: Exploring the strategies that can be used when making consumer and financial decisions, for example, finding more information, comparing prices, keeping a record of money spent, saving for the future.
Answers:
Slogan Brand Name
The flavour really hits youSamboy chips
Just do it Nike
Think different Apple
The spirit of AustraliaQantas
The fresh food peopleWoolworths
Lowest prices are just the beginning Bunnings
Eat fresh Subway
Taste the rainbowSkittles
Your potential, Our Passion Microsoft
Connecting peopleNokia
Information:
The large number of brands in almost every category of goods and services can sometimes be overwhelming for consumers. With so much choice on the market, it can be difficult to decide which good or service to buy. One method that can be used, particularly when shopping for expensive goods and services, such as computers, televisions and repairs, is known as comparison shopping. The strategy works by comparing the price and features of a particular product with other similar products on the market before making a decision. As the advertised price is not always the lowest, consumers can often negotiate a better price with sales assistants by mentioning that they have obtained quotes from other suppliers and requesting
a further discount. This can result in considerable savings and greater customer satisfaction.
When shopping for less expensive products, such as common grocery items, the unit pricing method can be used to calculate the cost of goods by weight or volume. This strategy enables consumers to compare the prices of different brands, especially when they are packaged in different quantities. It also prevents consumers being misled by words and phrases such as ‘value pack’ and ‘25% extra’ on larger packages of the same brand, which do not always provide better value for money.
Curriculum Link: Influences on consumer choices and methods that can be used to help make informed personal consumer and financial choices (ACHEK003) Elaboration: Exploring the strategies that can be used when making consumer and financial decisions, for example, finding more information, comparing prices, keeping a record of money spent, saving for the future.
The unit pricing method uses the following formula to calculate the cost of goods by weight or volume. Before substituting values into the formula however, you need to ensure that the units are the same for each product’s weight or volume that you are comparing.
Cost per unit = price (in cents) / weight or volume
A popular brand of cereal advertises its large 750 gram box for $5.95. This month it is also advertising a 1 kilogram value pack for $8.00.
Box A: 750 grams $5.95
Cost per unit = price (in cents) / weight = 595 cents / 750 grams = 0.79 cents / gram
Box B: 1 kilogram (1000 grams) $8.00
Cost per unit = price (in cents) / weight = 800 cents / 1000 grams = 0.800 cents / gram
In this case, Box A (750 grams) is better value for money even though the larger box (1 kilogram) claims to be a value pack.
1. 375 ml can = $1.20
Cost = price / volume = 120 cents / 375 ml = 0.32 cents / ml
1.25 litre bottle = $2.49
Cost = price / volume = 249 cents / 1250 ml = 0.1992 cents / ml
2 litre bottle = $4.29
Cost = price / volume = 429 cents / 2000 ml = 0.2145 cents / ml
The 1.25 litre bottle provides the best value2. for money.
Regardless of price, consumers may be3. influenced by the convenient individual serve of the 375 millilitre can, especially if they are intending on drinking ‘on the go’. If more people will be sharing the soft drink the 2 litre bottle may be more economical.
Curriculum Link: Influences on consumer choices and methods that can be used to help make informed personal consumer and financial choices (ACHEK003) Elaboration: Exploring the strategies that can be used when making consumer and financial decisions, for example, finding more information, comparing prices, keeping a record of money spent, saving for the future.
Information:
Conduct the blind taste test below.
What You Will Need
Three different brands of the same product such as cola, bottled water, potato chips or chocolate (enough for each member of the class to have a taste). Use at least two well-known brands and one home brand.
Discuss the kinds of things that people2. would consider when deciding between brands. For example, consumers of cola might consider criteria such as flavour and the amount of fizz. Choose two criteria for each product and enter them in the table below.
Make a prediction about which of the3. three brands you would be likely to choose prior to completing the blind taste test.
Carry out a blind taste test and record4. your findings in the table below.
Sample trays of the product should be prepared ahead of time so that there is no evidence of the brand names or packaging to influence those who are sampling.
Rank the brands 1-3 in order of5. preference.
Curriculum Link: Influences on consumer choices and methods that can be used to help make informed personal consumer and financial choices (ACHEK003) Elaboration: Exploring the strategies that can be used when making consumer and financial decisions, for example, finding more information, comparing prices, keeping a record of money spent, saving for the future.
Answers: Answers will vary.
Small cups, plates or napkins for each member to taste the products as needed.
Instructions
Declare any food allergies before1. carrying out the activity.
Curriculum Link: Influences on consumer choices and methods that can be used to help make informed personal consumer and financial choices (ACHEK003) Elaboration: Exploring the strategies that can be used when making consumer and financial decisions, for example, finding more information, comparing prices, keeping a record of money spent, saving for the future.
Information:
Price is one of the most important factors affecting the behaviour of consumers. When
the price of a particular good or service is high, consumers are generally less willing to make a purchase, and their demand for the product tends to be lower. However, when the price of a particular good or service is low, consumers are generally more willing to make a purchase, and their demand for the product tends to be higher. Producers often apply this concept when they want to increase their normal sales at certain times of the year.
Examples of special promotions used to influence consumer behaviour include: sales such as ‘end of financial year sales’
and ‘boxing day sales’; store specials such as ‘25% off ’ and ‘buy
two get one free’; discount vouchers, for example ‘15% off your next purchase’. Such promotions are often used by businesses for items that may be hard to sell, overstocked or purchased under a special deal from the manufacturer. Time constraints, such as ‘for a limited time only’ and ‘only 3 days left’, may be used to create a sense of urgency in consumers so that they feel they can’t postpone their decision to make a purchase. Once attracted to a store by the deals presented, they may then be tempted to buy other goods and services on the spur of the moment. This is known as ‘impulse buying’ and can lead customers to make unplanned purchases that they may not have originally needed, wanted or budgeted for. Discount vouchers such as ‘15% off your next purchase’ are also used by retailers to entice customers to return to the store. The catch, however, is that they have to spend more money in order to receive the deal.
higher the demand for goods and servicesconsumers are more willing to spend.
‘Impulse buying’ is when consumers make3. unplanned purchases on the spur of the moment. This may cause them to spend over their budgeted amount.
Curriculum Link: Influences on consumer choices and methods that can be used to help make informed personal consumer and financial choices (ACHEK003) Elaboration: Exploring the strategies that can be used when making consumer and financial decisions, for example, finding more information, comparing prices, keeping a record of money spent, saving for the future.
Students create a collage of sales and1. special promotions. The higher the price, the lower the demand2. for goods and services so consumers are less willing to spend. The lower the price, the
An effective strategy often used to help individuals make smart consumer choices is personal budgeting. A budget is a plan for spending and saving money over a period of time. It consists of two parts – income and expenditure. Income is money that comes into your budget from sources such as work. Some young people also receive an allowance or pocket-money from their parents or guardians. Expenditure is money going out from your budget. In other words, it is the money that you spend. By subtracting the total expenditure from the total income, the balance of a budget can be calculated. Wise consumers will try and make sure that their expenditure is less than their income so that they have money left over to save. People who are able to save money over a period of time are often able to satisfy more of their wants and buy more expensive goods and services in the future. Below is an example of one student’s personal budget for a period of one week.
Pocket money/allowance$10.00
Job – walking the neighbour’s dogs $10.00
Total Income$20.00
Purchase lunch from school canteen twice a week $7.00
Bus fare to and from school$9.00
Total Expenditure$16.00
Balance = Total Income – Total Expenditure = $4.00
Answers: $4.001. 2.
After 1 month $4 x 4 weeks = $28 A t-shirt, a music album
After 1 year $4 x 52 weeks = $208 A new bike
Wise consumers will attempt to spend less3. than their income in order to maximise their savings
Party 1
Curriculum Link: Influences on consumer choices and methods that can be used to help make informed personal consumer and financial choices (ACHEK003) Elaboration: Exploring the strategies that can be used when making consumer and financial decisions, for example, finding more information, comparing prices, keeping a record of money spent, saving for the future.
Information:
It’s your birthday and you are planning on having a party to celebrate. Your parents have given you a budget of $100 to spend on the party and any money that is left over
is yours to keep! In order to stay as close to your budget as possible, you have decided to invite only 10 friends and have the party at your house. You already have an outfit to wear, have organised music and have sent the invitations out by email. The only things left to buy include food, drinks, a cake, candles and decorations.
Answers:
Answers will vary.
Party 2
Curriculum Link: Influences on consumer choices and methods that can be used to help make informed personal consumer and financial choices (ACHEK003) Elaboration: Exploring the strategies that can be used when making consumer and financial decisions, for example, finding more information, comparing prices, keeping a record of money spent, saving for the future.
Answers: Answers will vary.
Curriculum Link: Influences on consumer choices and methods that can be used to help make informed personal consumer and financial choices (ACHEK003)
Elaboration: Recognising that financial transactions can include the use of notes, coins, credit and debit cards, and how these may influence the way people purchase items.
Information:
Consumers can select from a variety of payment methods when purchasing goods and services. The most common forms of exchange in Australia are made via cash, debit and credit cards.
Cash refers to money in the form of notes and coins. Many consumers prefer to use cash because all retailers accept this payment method and transactions take place instantly. Another advantage of using cash is that it is relatively easy to keep track of personal spending because people generally know
how much money they have on them. However, cash is not very secure and once it is lost or stolen, it can be difficult to trace and prove exactly how much you had. Some customers also prefer to use less bulky methods of payment, especially when purchasing more expensive goods and services.
Electronic funds transfers at point of sale (EFTPOS) allows consumers to pay for items directly from their bank account using a plastic debit card and a personal identification number (PIN). Debit cards are different to credit cards because they are linked to accounts that contain money that you have already earned or saved. In contrast, credit cards are linked to accounts containing money that has been borrowed from the bank. At the end of each month, customers who use credit cards for purchases are charged an additional amount of money called interest on any money that has not been paid back to the bank. As a result, many consumers, especially those who find it difficult to stick to a budget, fall into debt as they have been unable to pay back the money loaned. Both debit cards and credit cards are relatively quick and convenient forms of payment accepted by most retailers, including online. However, some stores and market places still operate on a strictly cash only basis. In such instances, consumers use their cards to withdraw cash from an automated teller machine (ATM) before they make a purchase. This can sometimes be more expensive as some banks charge a fee for using their ATM. Cash withdrawals made with credit cards also cost extra.
They also can’t be used unless the person in possession of them knows the unique PIN. However, new technologies, such as paypass and payWave, now enable purchases to be made without using a PIN. While this has made shopping faster and more convenient, customers must be extra careful not to lose their cards as they can quickly be misused.
Curriculum Link: Influences on consumer choices and methods that can be used to help make informed personal consumer and financial choices (ACHEK003)
Elaboration: Recognising that financial transactions can include the use of notes, coins, credit and debit cards, and how these may influence the way people purchase items.
Answers:
EFTPOS1. : electronic funds transfer at point of sale
PIN: personal identification number. ATM :automated teller machine. Money used from a debit card is money2. that the consumer has already earned and has in his/her bank account. Money used from a credit card is money that the consumer is borrowing from a bank and has to pay back.
3. Payment Method - Cash
Description - Money in the form of notes or coins.
Accepted by all retailers.
Transactions take place instantly.
Easy to keep track of spending.
If lost/stolen it can be difficult to trace/
prove how much you had. Bulky, especially when purchasing
expensive goods and services.
Payment Method - Debit card
In terms of security, debit cards and credit cards are considered safer than carrying cash because if they are lost or stolen they can be cancelled quickly over the phone.
Description - a plastic card which allows customers to access money that they have earned or saved directly from their bank account.
•
Quick and convenient.
• online.
Accepted by most retailers, including
• PIN. If lost or stolen they can be cancelled quickly over the phone. Disadvantages
Safer than carrying cash due to unique
•
Some stores and market places operate
• on a cash only basis. Cash withdrawal from ATMs may incur a fee. New technologies, such as paypass and
• payWave mean if cards are lost they can quickly be misused.
Payment Method - Credit card
Description - a plastic card which allows customers to access money that they have borrowed.
Quick and convenient.
• online.
Accepted by most retailers, including
• PIN. If lost or stolen they can be cancelled quickly over the phone. Disadvantages
Safer than carrying cash due to unique
At the end of each month interest is
• charged on money that has not been repaid to the bank – consumers can fall into debt.
Some stores and market places operate
• on a cash only basis. Cash withdrawals from ATMs with credit cards incur a fee. New technologies, such as paypass and
• payWave mean if cards are lost they can quickly be misused.
Curriculum Link: Influences on consumer choices and methods that can be used to help make informed personal consumer and financial choices (ACHEK003)
Elaboration: Recognising that financial transactions can include the use of notes, coins, credit and debit cards, and how these may influence the way people purchase items.
Year 6: Economics and Business is a teacher-friendly resource specifically written for 11-12 year olds who are living in Australia and studying Economics and Business. The workbook is divided into three sections comprising student information pages and student activity pages, which explore economics and business skills as prescribed in the Australian curriculum.
The first section, Resources And Choices, reinforces the concept that there are limited resources to meet the demand for goods and services from consumers. Students will be asked to categorise and prioritise needs and wants from a personal, community and governmental point of view and consider the trade-offs that have to be made to obtain what they want. This section invites students to think critically about the products that they consume and the effects that their choices might have on the environment and on the livelihoods of others.
The second section, Consumer And Financial Decisions, focusses on how a consumer’s shopping choices can have impacts on the local and global economy. A family’s expenditure case study highlights how people can obtain what they need by weighing up the opportunity cost when making financial decisions. Students will also investigate sustainable methods of production and distribution and consider how product labelling can inform and influence consumer choices at the check-out.
The final section, Business And Industry, explores different types of businesses and their motives for being established. An in-depth look at the ways in which people can shop nowadays evaluates the shopping experience from traditional retail to the ever-expanding world of e-commerce. Students will carry out their own research to prepare a report on one of Australia’s major industries, the goods and services that it provides and how it contributes to the economy. They will also collaborate to write a proposal for a business venture of their own.
How the concept of opportunity cost involves choices about the alternative use of resources and the need to consider trade-offs (ACHEK009)
explaining why when one choice is made, the next best alternative is not available (trade-off ),• for example if a student chooses to spend their time (resource) riding their bike after school, they cannot go for a swim (trade-off )
explaining why choices have to be made when faced with unlimited wants and limited
• resources, for example by compiling a list of personal needs and wants, determining priorities (including sustainability of natural environments), and identifying the needs and wants that can be satisfied with the resources available
The effect that consumer and financial decisions can have on the individual, the broader community and the environment (ACHEK010)
• put off buying another item to have this one?’
exploring how a decision to buy an item affects the family, for example: ‘Did the family have to
investigating whether buying at the local supermarket helps the local community
• considering if their actions have an effect on the environment, for example does choosing to
• use recyclable shopping bags have an effect on the natural environment?
investigating questions such as ‘Does what my family buys in the supermarket affect what• businesses might sell or produce?’
The reasons businesses exist and the different ways they provide goods and services (ACHEK011)
identifying why businesses exist and investigating the different ways that goods and services• are provided to people, for example through shopping centres, local markets, online, small independent stores, remote community stores explaining the difference between not-for-profit and for-profit businesses
• identifying different industry sectors (such as agriculture, information, tourism,
• telecommunications) and discussing what they produce or provide
Develop questions to guide an investigation of an economic or business issue or event, and gather data and information from observation, print and online sources (ACHES012) developing questions that will investigate how decisions affect others, for example, ‘How does
• what I buy affect other people and the environment?’, ‘How can resources be used efficiently?’
• they provide goods and services
surveying businesses in the local area to find out what influences their choices on the way
•
Sort data and information into categories (ACHES013) creating categories to organise information into a useful format, for example to record• different ways goods and services are provided reading and interpreting data and information in various forms, including graphs
Identify alternative responses to an issue or event, and consider the advantages and disadvantages of preferring one to others (ACHES014) examining the trade-offs they might consider when making a choice, for example• considering the opportunity cost of choosing one leisure activity over another weighing up options involved in a decision, for example purchasing a phone by
• comparing the advantages and disadvantages of each available option
Apply economics and business knowledge and skills in familiar situations (ACHES015) making a purchase decision based on an analysis of the trade-offs involved• applying enterprising behaviours in a class activity, for example by taking on a leadership• role in a project and working with others to make decisions identifying the different ways different businesses provide goods and services
• identifying the effect of purchasing items on the community, for example ‘What is the• effect on the local supermarket if groceries are purchased elsewhere?’
Present findings in an appropriate format using economics and business terms, and reflect on the possible effects of decisions (ACHES016) communicating findings in different formats such as tables, graphs and reports, that show• how they have considered the effect of decisions they have made using economics and business terms such as scarcity, opportunity cost, retail, service,• trade-offs
Curriculum Link: How the concept of opportunity cost involves choices about the alternative use of resources and the need to consider trade-offs (ACHEK009)
Elaboration: Explaining why when one choice is made, the next best alternative is not available (trade-off ), for example if a student chooses to spend their time (resource) riding their bike after school, they cannot go for a swim (trade-off )
Information:
A trade-off can be described as the sacrifice that a person makes to obtain something else. The concept of a trade-off has been around since the beginning of human civilisation. Before societies adopted currencies to buy and sell, people bartered their services for what they wanted. A weaver for example, could barter her cloth with the baker for bread. This was a tradeoff because the weaver gave up her cloth in order to receive food in return.
Consumers have to make careful decisions about how they spend their money, time and energy because they can’t have everything they want. To make a decision, consumers consider the sacrifices they have to make to obtain a particular good, service or experience. Imagine that an athlete wants to represent Australia in an international competition. The athlete knows that she is not going to be able to study as much because of long training hours and, as a result, her university grades will suffer. However, the athlete is willing to trade off her university grades (and possibly future job prospects) to wear the green and gold.
Answers:
2 (A) Simon didn’t get the cheaper shoes and the chance to save or spend $30. (B) Anna didn’t get to see the movie, but she made her sister and a friend happy. (C) Matt had to give up leisure time to earn the money for a bike.
lifestyle or is satisfied with the simple things in life. Students with no cross-over might indicate that they already have most of the items in list 2 so they wanted additional items.
Curriculum Link: How the concept of opportunity cost involves choices about the alternative use of resources and the need to consider trade-offs (ACHEK009)
Elaboration: Explaining why when one choice is made, the next best alternative is not available (trade-off ), for example if a student chooses to spend their time (resource) riding their bike after school, they cannot go for a swim (trade-off )
Answers:
Choice: Live in the city – trade-off :1. quieter environment, more space, slower pace of life, less pollution, etc. Choice: Live in the country – trade-off : fewer recreational facilities, travelling time to amenities, e.g. hospital, school.
Choice: Drive to work – trade-off : save2. on petrol and car maintenance, traffic jams, etc. Choice: Take public transport – trade-off : longer travel time, crowded trains and buses, convenience.
Choice: Cook at home – trade-off : more3. time shopping, power bills, etc. Choice: Take-away – trade-off : home-cooked nutritional meal, pleasure of cooking, guarantee of quality ingredients, etc.
Choice: Buy a new phone – trade-off :4. familiar with how phone works, potential loss of data, expense of buying new phone. Choice: Repair old phone – tradeoff : being without phone during repair, opportunity to have better phone with newer technology.
Reasons for similarities and differences will vary. If there is some cross-over this might indicate that the student values a healthy
Choice: Demolish historic house – trade-5. off : preserving community history, losing community landmark. Choice: Restoration – trade-off : building newer amenity on land for the community, spending money on other community projects.
Curriculum Link: How the concept of opportunity cost involves choices about the alternative use of resources and the need to consider trade-offs (ACHEK009)
Elaboration: Explaining why when one choice is made, the next best alternative is not available (trade-off ), for example if a student chooses to spend their time (resource) riding their bike after school, they cannot go for a swim (trade-off )
Information:
Opportunity Cost is one of the most important concepts in economics. When you make a decision to do one thing, you give up the opportunity to do the next best alternative. This is because at that moment you value one action and its benefits more than another. For example, if you choose to study for a test tonight, you’ll miss out on playing with your friends. Obviously you can’t do both. At this moment you value studying more than playing because you want to do well on the test. The opportunity cost (or think of it as the opportunity missed) is not going out to play and the enjoyment it gives you. Reflecting on the opportunity cost is a useful decision-making strategy.
Answers:
JILL: Visit friends – enjoyment of making1. and eating a cake that she likes, time spent with family member. Make a cake – missing out on seeing a friend and things they like to do together.
JACK: Read a book – opportunity to2. record unique moments in photographs to share in the future: Take photographs – enjoyment of reading a book, completing homework on the book.
example if a student chooses to spend their time (resource) riding their bike after school, they cannot go for a swim (trade-off )
Answers:
More rubbish on the streets, fuller,1. unsightly garbage bins.
Not having to get up so early to reach the2. airport.
Preserving an indigenous heritage site,3. loss of native plant and animal resources. Not being threatened by other students,4. perhaps attracting unwanted teasing herself in the future. Earning $20 for the jumper and reducing5. clutter. 6) Giving up time that could be spent on other leisure activities.
Curriculum Link: How the concept of opportunity cost involves choices about the alternative use of resources and the need to consider trade-offs (ACHEK009)
Elaboration: Explaining why choices have to be made when faced with unlimited wants and limited resources, for example by compiling a list of personal needs and wants, determining priorities (including sustainability of natural environments), and identifying the needs and wants that can be satisfied with the resources available
Information:
Curriculum Link: How the concept of opportunity cost involves choices about the alternative use of resources and the need to consider trade-offs (ACHEK009)
Elaboration: Explaining why when one choice is made, the next best alternative is not available (trade-off ), for
Everybody has needs that they would like met in order to survive. Needs include: nutritious food, adequate clothing, shelter from the weather, safety and health care. People also have wants that are goods and services that are not essential for survival, but are desired. For example, you might need a bed for a good night’s sleep, but it doesn’t have to be in the shape of a turbo racing car! Our wants are as limitless as our imagination and that is the problem. There are not enough resources available to satisfy all our wants and some people’s needs. Therefore, individuals, businesses and governments have to make choices about how to use resources in an efficient and sustainable way.
Answers:
2) Suggestions: the race to buy New Year’s bargains in department stores; droughts that cause certain crop failures; limited edition products.
Page 10: Limited Resources 2
Curriculum Link: How the concept of opportunity cost involves choices about the alternative use of resources and the need to consider trade-offs (ACHEK009)
Elaboration: Explaining why choices have to be made when faced with unlimited wants and limited resources, for example by compiling a list of personal needs and wants, determining priorities (including sustainability of natural environments), and identifying the needs and wants that can be satisfied with the resources available
Answers:
1A) Public transport is limited. More public transport would reduce crowding so that people would not have to stand. 1B) Bananas are limited. The shortage is maybe due to a natural disaster.
Page 11: Limited Resources 3
Curriculum Link: How the concept of opportunity cost involves choices about the alternative use of resources and the need to consider trade-offs (ACHEK009)
Elaboration: Explaining why choices have to be made when faced with unlimited wants and limited resources, for example by compiling a list of personal needs and wants, determining priorities (including sustainability of natural environments), and identifying the needs and wants that can be satisfied with the resources available
Information:
The study of economics helps consumers make informed decisions about what goods and services they want most and what resources are available to meet those wants. Most resources are limited or scarce. While sunshine and wind are limitless, we can’t say the same for clean drinking water, land to build houses on or our income. Scarcity of a good or service can make you go without, pay a lot more to have it or go to different places to find it.
Answers:
There are not enough glue sticks to meet
1. the needs of all the students at the table; some students will have to wait or go elsewhere to find glue.
3. Sample answers: Potable water – people might have to pay considerably more to obtain safe drinking water and be forced to recycle water for home use. Old growth forests – the price of obtaining certain types of wood for furniture and construction would skyrocket, people would have to wait generations for trees in these forests to grow and reach maturity.
Curriculum Link: How the concept of opportunity cost involves choices about the alternative use of resources and the need to consider trade-offs (ACHEK009)
Elaboration: Explaining why choices have to be made when faced with unlimited wants and limited resources, for example by compiling a list of personal needs and wants, determining priorities (including sustainability of natural environments), and identifying the needs and wants that can be satisfied with the resources available
calculator (large display) $12.95 jumbo markers (pk of 10) $6.30 HB pencil (pk of 6) $2.50 coloured gel pens (pk of 24)$10.25 long life eraser $1.45 correction tape $3.35 highlighters (pk of 8) $10.50 bookmarks (pk of 4) $1.85 ballpoint pens (pk of 6) $3.80 ruler (wood) $1.50 ruler (foldable) $3.35 scissors $2.90 scissors (left-handed) $4.00
sharpener with waste box $2.18 USB flash drive (8G) $11.50 magnifying glass $4.90
A4 exercise book (64pg) 1.36
A4 plastic cover .42
A4 3-ring folder $1.65 stapler $4.80 pencil case (assorted) $5.50 glue stick (20g) $2.35 glitter glue stick (5 colours) $1.75 student diary $4.98 geometry set (7 pieces) $6.99
Students should compare stationery lists and help each other with their budgets.
Curriculum Link: How the concept of opportunity cost involves choices about the alternative use of resources and the need to consider trade-offs (ACHEK009)
Elaboration: Explaining why choices have to be made when faced with unlimited wants and limited resources, for example by compiling a list of personal needs and wants, determining priorities (including sustainability of natural environments), and identifying the needs and wants that can be satisfied with the resources available
Answers:
Teacher to check answers.
Curriculum Link: How the concept of opportunity cost involves choices about the alternative use of resources and the need to consider trade-offs (ACHEK009)
Elaboration: Explaining why choices have to be made when faced with unlimited wants and limited resources, for example by compiling a list of personal needs and wants, determining priorities (including sustainability of natural environments), and identifying the needs and wants that can be satisfied with the resources available
A resource is anything that has some form of use or value. In order to satisfy the needs and wants of consumers, producers use resources to supply goods and services. There are three main types of resources: natural, capital and human.
Natural resources refers to anything that exists without humans having put them there. Examples include: the oceans, earth, soil, forests and animals. Mineral and energy resources, such as: gold, diamonds, coal, oil and natural gas, are also classified as natural resources which can be used for production.
Human resources include people themselves and the work that they carry out. This includes: physical labour, such as the kind of work a bricklayer does, as well as mental labour, such as the kind of work an office worker might do. When people have the skills and expertise which enables them to organise the entire production process, this is referred to as enterprise. These people, known as entrepreneurs, often hold high positions within a business including: owners, managers, principals and project officers. They are often described as ‘the brains’ behind the business because they are able to generate new ideas and manage natural, capital and human resources in order to make their ideas become a reality.
Curriculum Link: How the concept of opportunity cost involves choices about the alternative use of resources and the need to consider trade-offs (ACHEK009)
Elaboration: Explaining why choices have to be made when faced with unlimited wants and limited resources, for example by compiling a list of personal needs and wants, determining priorities (including sustainability of natural environments), and identifying the needs and wants that can be satisfied with the resources available
Information: Communities have their own needs and wants based on their characteristics, such as: population size, location (urban or rural), average age of the population and access to economic resources (land, capital, labour and enterprise).
Human-made objects and technology which are used to produce goods and services are referred to as capital. Examples include: a truck used to transport goods, the desk that someone works at and the tools used by a tradesperson.
See next page for table.
Answers:
Suggestions:
1. seed/plant suppliers; mechanic to repair farm machinery
2. sports equipment store; shoe shop for tennis shoes
3. tourist guide; stationer to supply map; film for camera; travel agent to arrange flights, etc.
4. stationer to supply pens; paper, etc.; furniture supplier; bookshop for textbooks
Answers:
NEED: Water treatment plant
WANT: Hardware Chain Store
Land, water supply Funds to build the plant Labour to design, build and operate the plant
LandFunds to build infrastructure: roads, electricity, water etc.
Planners to write a proposal, workers to plan and build infrastructure
Curriculum Link: How the concept of opportunity cost involves choices about the alternative use of resources and the need to consider trade-offs (ACHEK009)
Elaboration: Explaining why choices have to be made when faced with unlimited wants and limited resources, for example by compiling a list of personal needs and wants, determining priorities (including sustainability of natural environments), and identifying the needs and wants that can be satisfied with the resources available
Information:
To meet consumers’ needs and wants, producers provide goods and services using the resources available to them: natural, capital and human. Producers can be individuals, businesses or governments.
Page 17: Sustainable Choices 1
Curriculum Link: How the concept of opportunity cost involves choices about the alternative use of resources and the need to consider trade-offs (ACHEK009)
Elaboration: Explaining why choices have to be made when faced with unlimited wants and limited resources, for example by compiling a list of personal needs and wants, determining priorities (including sustainability of natural environments), and identifying the needs and wants that can be satisfied with the resources available
Information:
The scarcity of resources means that consumers and producers should make economic choices that minimise harmful impacts on society and/or the environment. Labelling and certification on products help consumers to make more sustainable purchases.
Answers:
2. Reducing, reusing and recycling packaging materials cuts down the use of limited resources and potential pollution.
3. Sample answers: More advertising on how sustainably-produced goods help the environment; more discounts on products to attract consumers.
Page 18: Sustainable Choices 2
Curriculum Link: How the concept of opportunity cost involves choices about the alternative use of resources and the need to consider trade-offs (ACHEK009)
Elaboration: Explaining why choices have to be made when faced with unlimited wants and limited resources, for example by compiling a list of personal needs and wants, determining priorities (including sustainability of natural environments), and identifying the needs and wants that can be satisfied with the resources available
Information:
The products that we choose to buy have an effect on our sustainable future. Our choices can also send a message to producers that sustainability is high on the list of consumer priorities. As you shop, you can be on the lookout for information on labels and packaging that identifies how a good has been produced and distributed. You can then make your decisions by considering whether a product: saves energy, is biodegradable, is packaged in recyclable materials or has travelled half way around the world to be on your table!
Page 19: Vocabulary Review
Curriculum Link: The effect that consumer and financial decisions can have on the individual, the broader community and the environment (ACHEK010)
Elaboration: Exploring how a decision to buy an item affects the family, for example: ‘Did the family have to put off buying another item to have this one?’
Answers:
Sample answers: education,1. entertainment, clothing
Holidays are a major expense and not a2. frequent purchase. Teacher to check.3. Couples without children might have4. more disposable income to spend on housing. The cost of raising children adds to family expenditure (clothing, health care, child care, etc.)
Couple without children = 70%; Couple5. with children = 51%.
After the class has completed the6. task, you can reveal that a couple with older children spends more in each category. Costs for older children might include paying for accommodation for university, buying another car and its added costs for fuel, driving children to entertainment venues or schools out of the local area.
Curriculum Link: The effect that consumer and financial decisions can have on the individual, the broader community and the environment (ACHEK010)
Elaboration: Exploring how a decision to buy an item affects the family, for example: ‘Did the family have to put off buying another item to have this one?’
Information:
The Wise family have decided to trade in their current car to buy a SUV that meets the family’s changing needs. As Mr. and Mrs. Wise do not want to dip too much into their savings, they obtained a $15,000 car loan with repayments over one year of
$329 weekly. The car repayments constitute an increase of $205 in the family’s weekly expenditure (spending). The parents have asked their two older children, Adam (aged 12) and David (aged 14), to help them tighten up their spending until the loan is repaid. To afford the new car, the Wise family will have to make some sacrifices to stay within their weekly budget, otherwise, they may have to forego their annual family holiday.
Additional Information:
A:Mrs. Wise gives the boys lunch money every day and a little extra for a snack on the way home from school. Mr. Wise also grabs a quick sandwich from a take-away shop near his office for lunch.
B: Mr. Wise and his sons are keen amateur golfers. They hit the course for 18 holes every Sunday morning as visitors of a club. Mr. Wise pays in total $66 green fees, plus $10 to hire a golf cart.
C: Adam pays $20 a week to feed his bulldog Mimi quality dry food. By mid-week Mimi is sick of the same flavoured kibble and won’t eat it, so Adam buys an additional $15 of canned food. Adam’s friend’s bulldog has the same habit.
D: Mrs. Wise loves gardening and a good mystery novel. On average, she will buy two books a week for about $40. Occasionally, she’ll swap books with friends, but her bookcases are chock-a-block with the novels that she reads.
Answers:
1) Areas to cut down on family expenditure:
A) Packed lunches from home, including snacks. B) Walk instead of hiring a golf cart, play golf on another day as it is more expensive on the weekend. C) Share dog food costs with Adam’s friend and buy two different flavours of kibble. D) Join the local library or swap novels with friends.
Curriculum Link: The effect that consumer and financial decisions can have on the individual, the broader community and the environment (ACHEK010)
Elaboration: Exploring how a decision to buy an item affects the family, for example: ‘Did the family have to put off buying another item to have this one?’
Information:
Mrs. Wise has accumulated quite a mystery book collection that is cluttering up her bookcases in the house. A friend has suggested holding a “swap party”, where Mrs. Wise could swap the books that she won’t read again for things that she would like for the house and garden.
Answers:
Encourage students to think about:1. weekday versus weekend times; how to invite Mrs. Wise’s target audience through advertising; types of advertising; how to let people know what Mrs. Wise is interested in swapping.
ADVANTAGES: obtaining things you2. need or want for no cost (except advertising, setting up); making new friends; helping the environment through recycling.
DISADVANTAGES: disputes over the value of objects being swapped; some people might not follow the rules or guidelines; unwanted people attending, cleaning up.
Curriculum Link: The effect that consumer and financial decisions can have on the individual, the broader community and the environment (ACHEK010)
Elaboration: Investigating whether buying at the local supermarket helps the local community
Information:
Supports local farmers, producers and1. local businesses.
Helps us to find out more about how2. food is produced.
Locally-grown food is fresher, tastier and3. healthier.
Takes advantage of fresh seasonal food.4. Contributes to a more sustainable5. future.
Reduces the “food miles” that farm6. products travel. Ensures that food that is produced,7. meets quality standards.
Australia imports a great variety of processed and fresh food products from around the world. The graph below is a rough guide to how many “food miles” some products travel, to be on your plate. The distance in kilometres has been calculated from the capital city of the food’s origin country, to Canberra. The carbon footprint (in kilograms) of air transportation has also been given.
Page 26: Go Local! 2
Read the seven statements below which argue that buying food that is produced locally is beneficial.
Curriculum Link: The effect that consumer and financial decisions can have on the individual, the broader community and the environment (ACHEK010)
Investigating whether buying at the local supermarket helps the local community
sausage
(i) to obtain products not always3. available in Australia; to obtain products at lower prices
(ii) to build trade relations with other countries
Transportation involves the4. consumption of fossil fuels.
The fuel and its pollution’s impact on the5. environment measured in kilograms.
Sample answer (i) sustainable fishing6. practices (ii) food labelling that does not include all the preservatives and additives.
It will be printed on the label/packaging.7.
Page 27: Choosing Local 1
Curriculum Link: The effect that consumer and financial decisions can have on the individual, the broader community and the environment (ACHEK010) Elaboration: Investigating whether buying at the local supermarket helps the local community Information:
Does shopping at the local supermarket support local food producers? Read this report to find out.
Walk around the aisles of the local supermarket and you will soon notice one thing: one in every four grocery items on the shelves is the supermarket’s own brand. This means that the supermarket’s own label food was most likely produced on a large scale overseas in countries like South Africa and Thailand. Furthermore, the same food item could show up in any supermarket in the world from Paris to Perth – it’s just the supermarket name on the label that’s different.
How does a supermarket’s own brand produced overseas affect consumers? Supermarkets compete for the consumer dollar. To do this, supermarkets offer customers their own brands at cheaper prices. To be able to supply grocery items at a lower price, supermarkets buy foods from countries that can produce items using a
labour force whose wages are much lower than Australian workers’ wages. Even after the cost to the supermarket of importing overseas goods into Australia, prices can be kept lower than local produce because supermarkets are importing and selling items in such large quantities. Busy shoppers often don’t have the time to check labels on a supermarket’s own brand to confirm whether a food has been processed locally or imported. Also, shoppers are not always certain whether an imported food item has been produced to the high standard of quality demanded of locallyproduced food.
Over recent years, many local food suppliers like dairy farmers, tomato producers, fruit canneries and vegetable growers have gone out of business. They find it difficult to compete with the lower prices of imported foods. A poll carried out by The Age newspaper in 2012 revealed that 80% of consumers in supermarkets said that they would buy local produce even if they had to pay more for it. However, it seems that price speaks louder than good intentions, and the volume of imported goods on supermarket shelves continues to rise.
What’s the solution? Local producers have called on supermarkets to help them promote the range and quality of their foods by: increasing the shelf space in supermarkets
• for locally-produced goods; clearer labelling on groceries so that
• consumers know where a food has been grown; establishing “Australian-made” aisles in
supermarkets.
Curriculum Link: The effect that consumer and financial decisions can have on the individual, the broader community
the environment (ACHEK010)
Elaboration: Investigating whether buying at the local supermarket helps the local community
Answers:
could mention: Supermarkets
have the purchasing power to import
larger volumes of products to take up shelf space; Supermarkets sell their own brands at lower prices than locally produced items; Australian producers may have to go through more rigorous quality measures that increase the cost of producing their foods. The consumer can buy the2. supermarket’s own brands at lower prices.
Supermarket retailers can buy products3. in bulk from overseas producers at lower prices and ensure steady stocks of grocery lines.
Teacher to check.4. Made in Australia Claim 1: Australia is5. the country of origin for each significant ingredient or component - all, or virtually all, of the processes involved with production or manufacturing happened in Australia.
Product of Australia. Claim 2: Most of the ingredients or components of the product came from Australia and almost all production processes occurred in Australia.
Page 29: Choosing Local 3
Curriculum Link: The effect that consumer and financial decisions can have on the individual, the broader community and the environment (ACHEK010) Elaboration: Investigating whether buying at the local supermarket helps the local community
The “Australian Made” campaign was designed to promote great goods produced in Australia and to support our economy, businesses and workers. Products that are grown or made in Australia often display the “Australian Made” logo – the green and gold kangaroo. This logo informs consumers that a product is a genuine Australian product that is safe and conforms to high quality standards.
Page 30: Choosing Local 4
Curriculum Link: The effect that consumer and financial decisions can have on the individual, the broader community and the environment (ACHEK010)
Elaboration: Investigating whether buying at the local supermarket helps the local community
Many of the top brands of clothes, accessories, shoes and sporting goods that you would like to buy are manufactured in developing countries in working conditions that are not healthy or safe. These factories are unflatteringly called sweatshops. Sweatshops demand long hours from their workers for very low pay. These manufacturing facilities are often set up in old, dilapidated buildings that lack safety inspections. In recent years, thousands of workers have been killed in building collapses, fires and have been poisoned from toxic fumes.
How do big brand manufacturers get away with producing their goods in sweatshops that mainly employ young women aged between 17-24 years old? Such companies claim that they are paying acceptable wages in these developing countries in which their factories operate. They also claim that the day-to-day running of these factories is difficult to monitor. Sweatshop workers know that their working conditions are dangerous. They have held strikes at the risk of losing their jobs which are essential for supporting their families.
What can consumers do to promote “fair trade” and help to improve the conditions of workers all around the world? We can look for clothes that carry the Ethical Clothing Australia Label (ECA). This label informs the buyer that the item was made legally and workers received their country’s award wages.
Answers: Teacher to check.
Read these news headlines about sweatshops.
A 9 year old girl working for $25 a month in clothes factory
C CELEBRITY BRAND PAYS POVERTY WAGES
Answers:
B Bangladesh textile factory collapse –326 killed
Our grandparents in the 1950s didn’t go to the shops empty-handed. It was common to take a shopping basket that lasted year after year. If Granddad forgot the basket, a sturdy cardboard box would do nicely. We’ve become very lazy these days and expect to receive a plastic bag to carry a few items a stone’s throw to the supermarket car park. The plastic bags that you’ve thrown away this week won’t begin to compost and degrade for another 1000 years or so.
Questions might include: How could1. children be allowed to work in factories?; Why do celebrities have their designer clothes made in sweatshops?; Why did the factory collapse?
a) Schools can check that their uniform2. supplier carries the ECA certification.
Page 31: The Environmental Choice 1 Curriculum Link: The effect that consumer and financial decisions can have on the individual, the broader community and the environment (ACHEK010) Elaboration: Considering if their actions have an effect on the environment, for example does choosing to use recyclable shopping bags have an effect on the natural environment?
Information: BAN THE BAGS
Way back in 2003, Coles Bay in Tasmania made a bold move. The sleepy tourist town, about 200 kilometres north of Hobart, decided to turn back the clock. One local businessman, Ben Kearney, was tired of seeing the shocking effects that plastic shopping bags were having on wildlife. Turtles, seabirds, fur seals and whales fell victim to floating transparent bags either by getting tangled up in them or slowly dying of starvation due to the infections caused by ingesting them. This was the beautiful wildlife that locals loved and tourists were paying to see. For Ben Kearney there was only one thing to do – convince his community to BAN THE BAGS.
When the plastic bag ban was introduced in Coles Bay, it took a while for consumers to catch on to the idea. However, the community was given support from shop owners, who had paper and calico bags at hand as ready substitutes. Plastic bags and reusable bags were still available, but were no longer free. Even so, biodegradable bags that are more environmentally-friendly were not being sold because they were more expensive for shop owners to buy and were thought to not be as strong as other plastic shopping bags.
Soon the locals got into the habit of not leaving home without their reusable bags. Tourists eventually got the hang of the plastic bag free-zone too and voiced their admiration for the community’s efforts to protect its environment. Some visitors were so impressed with the ban that they were determined to make plastic shopping bags a thing of the past in their own homelands.
Ben Kearney’s vision has caught on all over Australia from small outback towns in the Northern Territory to the entire state of South Australia. Coles Bay has been united in its mission with places as far away as Denmark, Bangladesh and Mexico, whose communities have also outlawed the deadly plastic bags. It might seem like a drop in the ocean but the initiative begun in Coles Bay a decade ago, is responsible for saving more than 400 million plastic bags being distributed in Australia each year. Ben Kearney acknowledges that the ban has had a positive impact on his community, but his campaign to protect Coles Bay and its wildlife continues. He wants the federal and state governments to go a step further and ban all plastic bags other than the biodegradable ones.
Curriculum Link: The effect that consumer and financial decisions can have on the individual, the broader community and the environment (ACHEK010)
Elaboration: Considering if their actions have an effect on the environment, for example does choosing to use recyclable shopping bags have an effect on the natural environment?
Answers:
a) The income earned from selling1. plastic carry bags to shoppers.
b) The convenience of having plastic bags supplied at the check-out.
i) “Locals got into the habit of not2. leaving home without their reusable bags”.
(ii) “Visitors were so impressed with the ban that they were determined to make plastic shopping bags a thing of the past in their own homelands.”
(iii) “The initiative begun in Coles Bay a decade ago, is responsible for saving more than 400 million plastic bags being distributed in Australia each year.”
Other bags are more expensive to buy3. and are thought not to be as durable. From shortest to longest time to4. degrade (approximate): paper (6 weeks); milk carton (3 months); coated cellulose (cellophane) (4 months); plastic bottles (450 years); aluminium cans (500 years).
Curriculum Link: The effect that consumer and financial decisions can have on the individual, the broader community and the environment (ACHEK010)
Elaboration: Considering if their actions have an effect on the environment, for example does choosing to use recyclable shopping bags have an effect on the natural environment?
operator, I feel that this ban will drive away customers, who depend on free bags and could lead to unemployment in our community. I love a clean town just as much as the next person, but jobs come first.
Email 2
Dear Editor,
It is about time this town banned those unsightly plastic shopping bags. Everywhere you look there are bags clogging up gutters and flapping in trees. While walking my dog in the park yesterday I saw some magpies pecking at scraps of plastic bags near the BBQ area. I wholly support the ban and would like to see it introduced immediately.
Fed Up With Plastic Bags (email supplied)
Answers:
Teacher to check.
Page 34: The Environmental Choice 4
Curriculum Link: The effect that consumer and financial decisions can have on the individual, the broader community and the environment (ACHEK010)
Elaboration: Considering if their actions have an effect on the environment, for example does choosing to use recyclable shopping bags have an effect on the natural environment?
Information:
Information: Email 1 Dear Editor, I would like to give my view on the proposed ban of the use of non-degradable plastic bags in retail shops. As a supermarket
Consumers have a vital role to play in a sustainable future because they can decide to buy products that have a reduced impact on the environment. Canned tuna has been a healthy part of the Australian diet for generations – it’s affordable and convenient. However, much of the tuna that you enjoy is caught and canned in other regions of the world and sustainable fishing practices are not always used to supply the market. Consumers can look for certain information on canned tuna labels to ensure that the tuna comes from a sustainable source.
In Australia, cans of tuna display three
essential pieces of information to inform potential consumers: species; area of
catching (WCPO); pole and line. These three pieces of information are required to be placed on the cans’ labels or on the producers’ websites.
Answers:
Pole & Line: a method of fishing that avoids catching other species, like turtles and sharks. Skipjack: this species is currently abundant and is being fished sustainably. WCPO: Western Central Pacific Ocean. This is said to be the most robust and sustainable area of catching.
Curriculum Link: The effect that consumer and financial decisions can have on the individual, the broader community and the environment (ACHEK010) Elaboration: Investigating questions such as ‘Does what my family buys in the supermarket affect what businesses might sell or produce?’
Information:
Consumer choices influence what supermarkets sell. Read about the meteoric rise in demand for a cabbage variety called kale and its effects on retailers and farm producers..
Until recently in Australia, the leaves of kale were used to garnish meals and were usually left uneaten on the side of the plate. When the humble cabbage was labelled a “super food”, the demand in supermarkets for kale skyrocketed. In fact, it is one of the fastest growing products. Soon kale on the shelves became scarce. How did supermarkets respond to this unexpected demand from consumers for a product?
Supermarkets turned to farmers to ask them to increase their kale production. Some producers stopped planting other vegetable crops to make room in their fields for kale. But there was a problem: there weren’t enough seeds readily available for planting to meet the demand. Farmers had to look overseas to buy kale seed supplies
and realised that there could be a shortage due to the demand for the vegetable from other countries, particularly the United States. Australian farmers, however, were soon able to quadruple their kale production to supply supermarkets in order to satisfy health-conscious consumers’ needs.
Answers:
Example flow diagram 2) Consumers ask supermarkets for kale. 3) Supermarkets ask farmers to increase their kale crop production. 3) Kale farmers look overseas for seeds to grow more crops. 4) Farmers increase their production of kale to supply to supermarkets. 5)Supermarkets restock shelves with kale.
Curriculum Link: The reasons businesses exist and the different ways they provide goods and services (ACHEK011) Elaboration: Explaining the difference between not-forprofit and for-profit businesses
Information:
A business gets off the ground when a person or group decides that they can make a profit by making or supplying goods and services that other people are willing to pay for. A business is principally motivated to make a profit (a financial gain or benefit).
If a profit is not made, the business cannot pay for its operating costs such as workers’ wages, rent, electricity and raw materials. It will be forced to close down.
Businesses are also motivated by other objectives such as: being the leader in the market, being sustainable and environmentally-friendly or building a reputation for supplying top quality products and services. In some cases the aim is not to make a profit at all, but to provide goods and services to help people. This can be achieved through funding from the government, fund-raising by organisations or donations from the public.
Businesses can be grouped into four main categories:
While businesses in the public sector, notfor-profit and charities are not set up to be profit-making, they still aim to earn enough income to cover their operating costs. If income exceeds operating costs, then this results in a surplus (not a profit). A surplus can be used by businesses to improve their facilities, provide more employment, expand their services and open new businesses.
Curriculum Link: The reasons businesses exist and the different ways they provide goods and services (ACHEK011)
Elaboration: Explaining the difference between not-for-profit and for-profit businesses
Answers:
Without making a profit, businesses would1. not have the capital for their running costs and would have to shut down.
Difference 1: The principal aim of a private2. sector business is to make a profit. A public sector business aims to provide services to a community.
Difference 2: The capital for a private sector business is provided by its owner/s. Public sector businesses are funded by the government or donations. Teacher to check.3. A surplus would provide capital to invest4. in improving the goods and services offered, and expand the business.
Curriculum Link: The reasons businesses exist and the different ways they provide goods and services (ACHEK011) Elaboration: Explaining the difference between not-for-profit and for-profit businesses
Information:
Let’s compare a for-profit business (Swimming Pool Constructor) to a not-forprofit business (Animal Shelter). (next page)
Answers:
Model answer should include references to: motive for setting up business, aims of the business and how profit or surplus is distributed and applied.
Curriculum Link: The reasons businesses exist and the different ways they provide goods and services (ACHEK011)
Elaboration: Explaining the difference between not-for-profit and for-profit businesses
This business has shareholders (an owner or owners• that share in the profits if the business performs well).
The objective of this for-profit business is to make• money.
For-profit businesses can support a good cause, but• this is also linked to getting positive publicity that can help improve profits.
The owners of this for-profit business can decide• to change to a new business if building swimming pools is not profitable. After all, the mission is to make a profit.
This for-profit business has legal obligations to pay• tax.
This business competes for sales with other similar• businesses. It needs to be innovative and up-to-date in new technological know-how.
There are over 600,000 registered notfor-profit charities providing community support in Australia and overseas in diverse areas such as wildlife conservation, aged care services and humanitarian aid.
Read the fact file below on a charity called the Northern Region Westpac Life Saver Rescue Helicopter Service that provides free helicopter transport in medical emergencies in the Lismore / Byron Bay area of New South Wales.
FACT FILE: Northern Region Westpac Life Saver Rescue Helicopter Service
BUSINESS OBJECTIVE: To deliver emergency medical and rescue helicopter services 24 hours a day, every day of the year, free of charge, whenever life is threatened.
GOVERNANCE: A board of eight directors, which meets six times a year. The Board brings aviation and business experience to the service.
This business has members. Any surplus must be• held for the next year or reinvested in the business. Members do not receive money for their work. The objective of this not-for-profit business is to• help others, in this case, homeless animals.
Even if this shelter’s members invest their own• money in projects, they do not “own” the business and cannot receive money from it. This business could receive tax breaks from the• Government to help it continue its good work.
MAJOR SPONSORS: Westpac, Surf Life Saving Australia, NSW Government, Lions International, Cassino, CHT, Yellow Pages.
CHARITABLE ACTIVITIES: Surf rescues, attending road accidents, rescue missions at sea, transporting patients to other hospitals, searching for lost plane beacons.
The shelter competes with other not-for-profit• businesses for members, volunteers and funds. It has to justify its decisions to a large group of members about how funds are spent.
FUND-RAISING: Community or individual fundraising on the charity’s behalf, volunteers to help in fund-raising events (raffles, Op Shop), sales from branded merchandise (key rings, caps, pens, stubby holders), business sponsorship.
HOW DONATIONS ARE MADE: Online, payroll deductions, phone or mail, bequests, in memoriam, donation gift card, apps for phones and tablets.
Answers:
Teacher to check.
Curriculum Link: The reasons businesses exist and the different ways they provide goods and services (ACHEK011) Elaboration: Identifying different industry sectors (such as agriculture, information, tourism,
and discussing
they produce or provide
Information:
Australia’s industries drive the economy and provide goods and services locally, nationally and internationally. According to the ABS (2013), the country’s various industries employed more than 11.4 million people.
Study the chart below which shows the
types of industries within five categories that exist in Australia. (Source: ABS 2013.)
QUINARY
TERTIARY =
Curriculum Link: The reasons businesses exist and the different ways they provide goods and services (ACHEK011)
Elaboration: Identifying different industry sectors (such as agriculture, information, tourism, telecommunications) and discussing what they produce or provide
Answers:
mining = door hinges, paints; agriculture1. = biofuels, spaghetti; forestry = coffee filters, tambourines; fisheries = fertilisers, jewellery; oil extraction = nylon cord, deodorants
In order to transform raw materials from primary industries into products that consumers can buy, the raw materials undergo various processes. This is known as the production chain. Look at the various stages in the production chain of canned fruit before the final product reaches the consumer:
State emergency services = quaternary;2. website design = quaternary; tourist resort = quinary; bus company = tertiary; electricity provider = secondary; scuba-diving school = quinary; health food shop = tertiary; sugarcane farm = primary; wholesale clothing supplier = tertiary; cultured pearl farm = primary; Thai restaurant = quinary; day-care centre = quaternary. Raw materials produced or extracted in3. primary industries are sent to secondary industries for processing. Tertiary industries begin the distribution process to consumers indirectly through retailers or through the quinary sector. The quaternary sector provide goods and services to support the different sectors in the production chain.
Ethanol production chain: sugarcane (raw4. material) fermentation and distillation mills transport wholesalers retailers consumers
CONSUMER
Curriculum Link: The reasons businesses exist and the different ways they provide goods and services (ACHEK011)
Elaboration: Identifying different industry sectors (such as agriculture, information, tourism, telecommunications) and discussing what they produce or provide
Information: Australia has a massive 125 million hectares of forests (native and planted), which is 3% of the world’s total forest heritage and the
seventh largest area in the world. What value do our forests hold? Foremost, they are an important link in the world’s carbon cycle and supplier of fresh water. The forest habitat is home to Australia’s rich biodiversity and an integral part of the cultural values of indigenous peoples. Economic activities that take place in our forests employ 120,000 people Australia-wide mostly in regional areas and contribute towards the conservation of this irreplaceable natural resource. Look around your classroom environment and you will see an array of wood products that have their origins in the forest: laminated tops on desks, floorboards, cardboard boxes, and wood chips used in the garden. Perhaps part of the frame for your school building is made of timber logged in an Australian forest. To guarantee that forests are conserved and managed in a sustainable way, the forestry industry provides various services to maintain and protect forested areas for economic, cultural and recreational purposes. These services include: controlling pests and diseases in forests;• removal of biomass in forests to prevent• bushfires; developing and monitoring certification• schemes for sustainably sourced timber; providing scientific research on the• preservation of animal and plant species; advising farmers on soil erosion and tree• species to plant.
Answers:
protection of forested areas; controlling1. pests and plant diseases; advising farmers on ecology matters
CONSUMERS: wood products such as2. furniture; school supplies; paper, etc.
OTHER INDUSTRIES: wood construction materials like timber; flooring; advice to agriculture sector, etc.
Curriculum
Link: The reasons businesses exist and the different ways they provide goods and services (ACHEK011) Elaboration: Identifying different industry sectors (such as agriculture, information, tourism, telecommunications) and discussing what they produce or provide
Answer:
Teacher to check.
Curriculum Link: The reasons businesses exist and the different ways they provide goods and services (ACHEK011)
Elaboration: Identifying why businesses exist and investigating the different ways that goods and services are provided to people, for example through shopping centres, local markets, online, small independent stores, remote community stores.
Information:
The following information explores some of the ways that consumers today can buy the goods and services that they want.
Shopping centres have changed the way that Australians shop. Under one big roof, people can now visit a variety of speciality shops, department stores and supermarkets. They can also use services like the post office, bank or public library, eat out or catch a movie. The growth of shopping centres has meant that busy shoppers don’t have to spend time travelling into crowded city centres and finding a convenient place to park. Shopping centres are characterised by their chain stores – shops operated by large national or international companies that sell the same goods in each shopping centre, e.g. Just Jeans, Staples, etc.
THE COMMUNITY: managing forestry areas to preserve heritage; biomass removal to prevent bushfires; providing parks for recreation
Small independent shop owners today, generally do not operate in shopping centres due to high rent, but establish their businesses in local communities along and close to the main streets. This was where
most shops were located before shopping centres began to appear in the 1970s.
Small retailers specialise in their goods and services such as handicrafts, delicatessens and florists and are usually operated by their owners and a few employees – often family members. To compete with shopping centres, small retailers emphasise their friendly staff, specialist knowledge of products and local convenience.
Local markets have been a feature of Australian life for over a century. Often set up in historic buildings or in open spaces, local markets offer a vast variety of goods and services from small independent retailers ranging from organic farm produce to indigenous products and home-made wares like soaps, candles and leather goods. Retailers apply for permanent or temporary stalls so the types of stalls are always changing. In addition to providing a different shopping experience, local markets often include entertainment like live music, street buskers and face-painting.
Living in remote areas in Australia poses special problems for indigenous and non-indigenous people: food produce is not always fresh and the high cost of transportation from distribution centres makes basic items expensive. Remote community stores with government and business support have been set up in communities to provide a regular supply of fresh fruit and vegetables, groceries and household products. In some places, local community stores play a central role in the community’s life as they also provides a social hub where people can access EFTPOS and ATM facilities and use the internet or phone to do their banking or to contact others.
Curriculum Link: The reasons businesses exist and the different ways they provide goods and services (ACHEK011)
Elaboration: Identifying why businesses exist and investigating the different ways that goods and services are provided to people, for example through shopping centres, local markets, online, small independent stores, remote community stores.
Answers:
i) Convenience of being closer to home.1. ii) Different shops under one roof. iii) Easy parking.
Large stores which can be found in2. other shopping centres nationally and internationally.
Chain stores tend to be larger retail3. outlets that carry a wide range of goods, and can afford higher rents. Students will probably conclude4. that small retail businesses are more specialised and focus on catering to consumers looking for personal preferences, e.g. a favourite hairdresser, vegetarian restaurant, etc. More personalised attentive, friendly5. “family” atmosphere.
Curriculum Link: The reasons businesses exist and the different ways they provide goods and services (ACHEK011) Elaboration: Identifying why businesses exist and investigating the different ways that goods and services are provided to people, for example through shopping centres, local markets, online, small independent stores, remote community stores.
Answers:
Teacher to check.1. Benefit 1: regular supply of fresh2. nutritious food;
Benefit 2: providing banking and postal services;
Benefit 3: provides a social hub; Benefit 4: providing local employment opportunities.
In very remote regions principally in the3. Northern Territory.
Suggestion: community shops were4. small, but modern and well-stocked.
Curriculum Link: The reasons businesses exist and the different ways they provide goods and services (ACHEK011) Elaboration: Identifying why businesses exist and investigating the different ways that goods and services are provided to people, for example through shopping centres, local markets, online, small independent stores, remote community stores.
Information:
The retail industry in Australia has undergone important changes in the way it traditionally provides goods and services to consumers. The development of online shopping (or e-commerce) has taken retailers by storm. So much so that it is predicated that by 2021, 11% of retail sales will be online and 65% of those will be from overseas retailers. Consumers still see the need to buy via traditional retail outlets, but are also driven by the numerous advantages of buying online. The following graphs (Source: Australian Institute 2011) compare what motivates consumers to participate in traditional in-store retail and online retail.
want to view it before buying
business
buying in
Consumers have the choice of thousands of e-commerce retailers. Ebay is the largest online marketplace in Australia with over 4.3 million people visiting its website (2014). Other top online shopping sites include: Amazon, Woolworths, Gumtree and GetPrice Network. These businesses use various ways to sell their goods online, for example, advertising on their websites, auction services and through social media. Small and medium businesses are also expanding their marketing strategies by developing their own online retail sites.
Curriculum Link: The reasons businesses exist and the different ways they provide goods and services (ACHEK011) Elaboration: Identifying why businesses exist and investigating the different ways that goods and services are provided to people, for example through shopping centres, local markets, online, small independent stores, remote community stores.
Answers:
E-commerce is shopping conducted1. electronically on the Internet. The data in the online retail graph2. suggests that people are quite motivated (62%); e-commerce sales are increasing annually.
About 46%. People could be afraid of3. being misled by the images of products on the web pages.
Shopping is literally at people’s fingertips,4. people save time not having to travel and park at shopping centres. Teacher to check.5. If local small retailers have online6. sales, consumers can still support local businesses through e-commerce. Suggestions: using high quality7. photography to maximise depiction of products; giving more assurances of consumer protection against fraud; keeping postage/shipping costs as low as possible.
Curriculum Link: The reasons businesses exist and the different ways they provide goods and services (ACHEK011) Elaboration: Identifying why businesses exist and investigating the different ways that goods and services are provided to people, for example through shopping centres, local markets, online, small independent stores, remote community stores.
Information:
Australians are now spending $15.60 billion online on retail products (6.6% of total retail spending) with consumers aged between 24 - 54 dominating sales. But what are they buying? Here is a breakdown of the most popular products bought on Ebay (2014) by State and Territory:
State or Territory Major sales online
NSW NRL merchandise and DVDs
VICTORIA AFL merchandise and books
WESTERN AUSTRALIALighting, wedding supplies, party supplies
SOUTH AUSTRALIAGardening supplies, plants and seeds
TASMANIA Nail art supplies
Toys and video games
NORTHERN TERRITORYFishing equipment and automotive
Fashion and jewellery
Curriculum Link: The reasons businesses exist and the different ways they provide goods and services (ACHEK011) Elaboration: Identifying why businesses exist and investigating the different ways that goods and services are provided to people, for example through shopping centres, local markets, online, small independent stores, remote community stores.
Information:
Choosing the mobile phone plan that best suits your monthly usage will save you money, but you need to consider several important things: what kind of phone you have (or
easier by new phone technology, the National Broadband Network and WiFi. Many mobile phone plans offer attractive monthly rates or pre-paid options with 1G of data included. But how far will 1G go when you want to download your favourite songs, stream a funny YouTube video or play an online game?
Answers:
A) Maya: 300 minutes x 10 MB = 300 MB (Could be adequate if Maya does not use the Internet often for other activities.)
B) Molly: 60 songs x 6 MB each = 360 MB (This seems adequate if Molly does not spend too much time on other activities.)
C) Trey: 600 minutes x 0.4 MB = 240 MB (Trey would be within his limit.)
D) Leah and Ted: 900 minutes x 1.5 MB = 1350 MB (This would be within the limit.) For extension, students could add in other online activities to the case studies to simulate data usage.
Curriculum Link: The reasons businesses exist and the different ways they provide goods and services (ACHEK011) Elaboration: Identifying why businesses exist and investigating the different ways that goods and services are provided to people, for example through shopping centres, local markets, online, small independent stores, remote community stores.
Answers: Teacher to check.
Answers:
Check that students are writing definitions for the terms in the economics sense.
intend to buy); the mobile phone plans available;
how you use your phone and how
often.
These considerations are even more important in the age of downloads made
