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Section 1: Resources and Choices
Page 5: Trade-Off 1
Curriculum Link: How the concept of opportunity cost involves choices about the alternative use of resources and the need to consider trade-off s (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 )
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A trade-off can be described as the sacrifi ce 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 sacrifi ces 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 suff er. However, the athlete is willing to trade off her university grades (and possibly future job prospects) to wear the green and gold.
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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. Reasons for similarities and diff erences will vary. If there is some cross-over this might indicate that the student values a healthy
lifestyle or is satisfi ed with the simple things in life. Students with no cross-over might indicate that they already have most of the This is a Ready-Ed Publications' items in list 2 so they wanted additional items. Page 6: Trade-Off 2book preview. Curriculum Link: How the concept of opportunity cost involves choices about the alternative use of resources and the need to consider trade-off s (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 )
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1. Choice: Live in the city – trade-off : 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. 2. Choice: Drive to work – trade-off : save on petrol and car maintenance, traffi c jams, etc. Choice: Take public transport – trade-off : longer travel time, crowded trains and buses, convenience. 3. Choice: Cook at home – trade-off : more time shopping, power bills, etc. Choice: Take-away – trade-off : home-cooked nutritional meal, pleasure of cooking, guarantee of quality ingredients, etc. 4. Choice: Buy a new phone – trade-off : 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.Go to www.readyed.net. 5. Choice: Demolish historic house – tradeoff : preserving community history, losing community landmark. Choice: Restoration – trade-off : building newer amenity on land for the community, spending money on other community projects.
Section 1 Resources And Choices
Page 7: Opportunity Cost 1
Curriculum Link: How the concept of opportunity cost involves choices about the alternative use of resources and the need to consider trade-off s (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 )
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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 benefi ts 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. Refl ecting on the opportunity cost is a useful decision-making strategy.
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1. JILL: Visit friends – enjoyment of making 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. 2. JACK: Read a book – opportunity to record unique moments in photographs to share in the future: Take photographs – enjoyment of reading a book, completing homework on the book.
Page 8: Opportunity Cost 2
Curriculum Link: How the concept of opportunity cost involves choices about the alternative use of resources and the need to consider trade-off s (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 ) This is a Ready-Ed Publications'
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More rubbish on the streets, fuller, 1. unsightly garbage bins. book preview. 2. Not having to get up so early to reach the airport. 3. Preserving an indigenous heritage site, loss of native plant and animal resources. 4. Not being threatened by other students, perhaps attracting unwanted teasing herself in the future. 5. Earning $20 for the jumper and reducing clutter. 6) Giving up time that could be spent on other leisure activities.
Page 9: Limited Resources 1
Curriculum Link: How the concept of opportunity cost involves choices about the alternative use of resources and the need to consider trade-off s (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 satisfi ed with the resources available
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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 Go to www.readyed.net. 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 effi cient and sustainable way.
Section 1 Resources And Choices
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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-off s (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 satisfi ed with the resources available
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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-off s (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 satisfi ed with the resources available
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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 diff erent places to fi nd it.
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1. There are not enough glue sticks to meet the needs of all the students at the table; some students will have to wait or go elsewhere to fi nd 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.
Page 12: Prioritising 1
Curriculum Link: How the concept of opportunity cost involves choices about the alternative use of resources and the need to consider trade-off s (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 satisfi ed with the resources available
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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
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Students should compare stationery lists and help each other with their budgets.
This is a Ready-Ed Publications' book preview.
Tnjui’t!Tdippm!Tvqqmjft sharpener with waste box $2.18 USB fl ash 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) $6.99Go to www.readyed.net.
Section 1 Resources And Choices
Page 13: Prioritising 2
Curriculum Link: How the concept of opportunity cost involves choices about the alternative use of resources and the need to consider trade-off s (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 satisfi ed with the resources available
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Teacher to check answers.
Page 14: Selecting Resources 1
Curriculum Link: How the concept of opportunity cost involves choices about the alternative use of resources and the need to consider trade-off s (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 satisfi ed with the resources available
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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 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 classifi ed as natural resources which can be used for production. Capital Resources 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 Human resources include people themselves and the work that they carry out. This This is a Ready-Ed Publications' includes: physical labour, such as the kind of work a bricklayer does, as well as mental labour, such as the kind of work an offi ce worker might do. When people have the book preview. 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 offi cers. 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.
Page 15: Selecting Resources 2
Curriculum Link: How the concept of opportunity cost involves choices about the alternative use of resources and the need to consider trade-off s (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 satisfi ed with the resources available
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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). See next page for table.Go to www.readyed.net.
Section 1 Resources And Choices
ECONOMIC NEEDS AND WANTS OF A COMMUNITY
create a native wildfl ower reserve build a new church attract a hardware chain store to the town establish a wildlife refuge and hospital expand the day-care centre playground remove abandoned cars from the creeks lease vacant shops in the town centre repair create job footbridge opportunities over the for the railway under 25s line remove graffi ti from open a tourist the train station information centre increase garbage collection days
build a water treatment plant clean up repair roads stone facade build a new ambulance on Town station Hall
establish a local farmers‛ market
Answers: Suggestions: 1. seed/plant suppliers; mechanic to repair This is a Ready-Ed Publications' farm machinery 2. sports equipment store; shoe shop for tennis shoes 3. tourist guide; stationer to supply map; book preview. fi lm for camera; travel agent to arrange fl ights, etc. 4. stationer to supply pens; paper, etc.; furniture supplier; bookshop for textbooks
Go to www.readyed.net.
Answers: Page 17: Sustainable Choices 1
NEED:
Water treatment plant
NATURAL CAPITAL HUMAN
Land, water supply Funds to build the plant Labour to design, build and operate the plant
WANT:
Hardware Chain Store Land Funds to build infrastructure: roads, electricity, water etc. Planners to write a proposal, workers to plan and build infrastructure
Page 16: Allocating Resources
Curriculum Link: How the concept of opportunity cost involves choices about the alternative use of resources and the need to consider trade-off s (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 satisfi ed with the resources available
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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. Curriculum Link: How the concept of opportunity cost involves choices about the alternative use of resources and the need to consider trade-off s (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 satisfi ed with the resources available
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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 certifi cation on products help consumers to make more sustainable purchases.
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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.
Section 1 Resources And Choices
Page 18: Sustainable Choices 2 Curriculum Link: How the concept of opportunity cost This is a Ready-Ed Publications' involves choices about the alternative use of resources and the need to consider trade-off s (ACHEK009) Elaboration: Explaining why choices have to be made when faced with unlimited wants and limited resources, for book preview. 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 satisfi ed with the resources available
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The products that we choose to buy have an eff ect 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 identifi es 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!
