Year 8 Achievement Standard By the end of Year 8, students explain how markets operate and recognise why governments may influence the market’s operation. They explain the rights and responsibilities of consumers and businesses in terms of financial and economic decision-making. They explain why different types of businesses exist and describe the different ways businesses can respond to opportunities in the market. Students describe influences on the way people work and factors that may affect work in the future. When researching, students develop questions and gather relevant data and information from different sources to investigate an economic or business issue. They interpret data to identify trends and relationships. They propose a range of alternative responses to an issue and evaluate the costs and benefits of each alternative. They apply economics and business knowledge, skills and concepts to familiar and unfamiliar problems. Students develop and present evidence-based conclusions using appropriate texts, subject-specific language and concepts. They identify the effects of an economic or business decision and the potential consequences of alternative actions.
You've probably heard the word 'economy' spoken about on the news and by politician, even your parents might talk about what the economy is like - but what does this word really mean ?
The word "economics" is derived from a Greek word "okionomia", which means "household management" or "management of house affairs" -i.e., how people earn income and resources and how they spend them on their necessities, comforts and luxuries.
So when we talk about the Australian economy we are talking about the total of all activities undertaken for the purpose of producing, distributing and consuming the goods and services we require to satisfy our needs and wants.
Let us look at this definition in more detail. As human beings we all have needs and wants.
Needscan be described as those things that are essential for our survival. They include food, clothing and shelter. Wants include those things we desire, but which are not necessary for survival or to meet the basic standard of living in a community. They can include everything from TV sets, to motor vehicles, to mobile phones.
1. Write down a list of all the thing you have used today that is a NEED 2. Write a list of all the things you have used today that is a WANT 3.Have a look at your NEEDS list - can you explain why these can be further divided into needs and wants?
We satisfy our needs and wants by acquiring goods and services.
Goods are physical, tangible items that can be seen and touched. They include all those products we actually buy from shops.
Services are the actions done for you by others, that are designed to satisfy needs and wants. They include the services provided by doctors, dentists, banks, telephone companies, entertainers, mechanics and teachers, among others.
Whenever we make use of goods and services we are said to consumethose goods and services, and so are regarded as consumers. The process of using goods and services is known as consumption.
Look back at the time you spent between waking up this morning and arriving at school. Make a list of all the goods and services you consumed during this time.
Goods and services have to be provided by someone, and we usually expect businesses to do this
Any activity within the economy that results in the provision of goods and services is known as production. Production is the thing that happens so that we can get what we need and want
We use it to include all goods and services, the activities of a dentist filling teeth, a band performing at a venue, or a teacher in a classroom, are all included in the definition of production.
In order for us to be able to consume (buy) the goods and services that have been produced, we need systems of distribution.
Distribution is the way we get the things we need and want. It is the way they're supplied to us via a shop, and office or even a website.
This means that the goods and services have to be supplied at locations that are convenient for consumers. This could mean a local shopping mall, an office block in the city centre, or even through a website. The distribution process also includes the setting of prices to be paid for goods and services.
Write a short paragraph that uses all these words in your own words that explains what they mean. Needs, Wants, Goods, Services, Production, Consumer, Distribution
When you send a text to a friend you are engaging in an economic activity. Who are the producers, who are the consumers. You can either write it or draw it as a diagram. ( i have included an example for electricity )
Explain why a bus travelling through your suburb would be regarded by an economist as a form of production.
TASK FOUR - FIELD WORK -USING GOOGLE STREET VIEW
Using the map provided mark on whether each store provides goods or services. Do this by placing a G or an S near the shop. You will be looking for the main purpose of the business eg a hairdressor provides a service but also may sell shampoo. The main purpose though is to provide a service.
As we may be unable to go on a physical excursion - we can use this site HERE to visit a google street view. If this link doesnt work you can use google earth instead
Click HERE to print a copy of the maps for the field trip
As a class, make a list of all the businesses that operate at your local shopping centre. Group these businesses according to whether they supply goods or services, or both. (Results from field trip to Liverpool street and Tasman Tce)
Make a list of any goods or services that are not supplied by businesses at that shopping centre that you would like to have. What might be the reasons for each of these goods or services not being available at your local shopping centre?
WHO IS INVOLVED IN THE MARKET SYSTEM ?
What do we mean when we talk about markets ? Basically, markets consist of producers, who make and sell goods and services and consumers, who buy the goods and services.
Producers rely on consumers to buy from them, and consumers rely on producers to provide the goods and services they want.
Draw a diagram to show this relationship. Label with the terms Producer, Consumer and Market
A market refers to the relationship between the buyers and sellers, rather than to any physical location.
Sometimes we can actually see markets... places like shopping centres and malls are examples because it brings producers and consumers together in one place. But there are also other markets that we can't 'see' . Online shopping is an example of a market that we can't see.
CONSUMERS AND PRODUCERS
.Consumers and producers are at the centre of Australia’s market system. All of us are consumers, and those of us who are employed are also producers.
We satisfy our needs and wants by working to earn money, and then buying goods and services from businesses that produce those goods and services.
When we are working, we are providing our labour to contribute to the process of producing goods or services for other consumers to buy
When we are spending our money, we are consumers, purchasing goods and services that others have produced, in order to satisfy our needs and wants.
WHAT ARE THE DIFFERENT TYPES OF MARKETS ?
As we have seen, a market exists in any situation where buyers and sellers come together to exchange goods and services for money. A market can be a real place, like a shopping centre or arts and craft market - like the ones help in the Civic Centre or Coffin Bay. The can be spread along a street such as Tasman Terrace or not be 'real' at all and be online- such as ebay or online stores. Let's have a look at some of the different types of markets that exist within the Australian economy: retail markets, labour markets, financial markets, and stock markets.
We are all very familiar with retail markets. These are the markets that allow us to buy most of our goods and services. They include:
the shopping areas in the central business districts (CBDs) of our large capital cities eg Rundle Mall
the huge suburban shopping malls such as Tea Tree Plaza, or Elizabeth Shopping Centre
local shopping centres with a supermarket and a number of specialty stores
shopping strips located along major roads and near public transport hubs
the groups of shops gathered in the main streets of country towns and regional centres
online shopping websites.
"The last fifteen years has seen a huge increase in online shopping. In 2014, online shopping in Australia was worth more than $15 billion, an amount equivalent to 6.6 per cent of all retail sales. Almost 75 per cent of this online shopping involved purchases from Australian retailers, and therefore around one-quarter of all online shopping in Australia saw goods imported directly from overseas businesses. Online shopping is likely to continue to grow, and the proportion of goods being bought from overseas businesses is likely to become larger as more people become aware of the wide range of choices available around the world."
In pairs use a laptop and google images to find pictures to represent each of the retail markets listed about. Clearly label and print off a copy for each member of the group to stick in their books. See the document below for an example.
People are constantly looking for jobs. And businesses are constantly looking for people to work for them. Some of them are people who are unemployed and want to find work; some of them already have a job and are hoping to move to new or different work.
Prospective employees are hoping to selltheir labour to employers.
Those employers wish to buythe skills and effort of suitable employees. This combination of buyers and sellers of labour constitutes the labour market.
Like many other markets, the labour market does not operate in a particular physical location. The labour market relies on a variety of means of communication between the sellers of labour (potential employees) and the buyers of labour (employers). Below are some example of how jobs can be advertised.
Putting a sign in a shop or café window.
Advertisements in newspapers.
Online ‘jobs boards’ such as Seek, mycareer and Australian JobSearch are the fastest growing source of job advertisements, updated every day. Some businesses rely on their own website for job applications.
Any person receiving unemployment benefits from government is usually required to take an active role in looking for work. The government pays independent agencies to assist unemployed people to find work. Many of these are run by community organisations such as Salvation Army Employment Plus.
1. Use the newspapers to find a job advertisement. Cut it out and stick in your books. Label which form of job advertising it is. 2.Use the laptops to find an online job site. Take a screen shot of the site and print it out. 3.Draw a sign which advertises a job in a shop that you'd like to do. Include what the job is, what shop it is in, and some of the of things you will be doing in that job.
Just as there are a number of markets for goods and services throughout the economy, there is also an important market for money.
While households earn money in the form of wages and salaries, they will often choose to borrow money to buy larger items such as a car or a house.
Businesses make money from selling goods and services to consumers, and generally try to make a profit by doing so. Sometimes part of that profit will be invested in expanding the business, but if the profits are not large enough to do this, the business may also want to borrow money to help it grow.
Money performs four very important functions in our market system:
Exchange – Money allows us to exchange goods and services using a common means of exchange we all accept. Employees exchange their labour for money, and all businesses accept money in exchange for the goods and services they supply.
Value – We use money to put a price on the goods and services we exchange. The price is a measure of what we believe the goods or services to be worth, when compared with other goods and services.
Store of value – We are able to save our money to spend at a later date.
Standard of deferred payments – Using money allows us to purchase goods and services on credit, with both buyer and seller knowing how much has to be paid at a later date.
Go to this site and work through the budgeting exercise click HERE
Like other markets, the stock market is simply a relationship between buyers and sellers. In this case it is shares in companies that are bought and sold.
A share is a unit of ownership in a company. Large companies divide their ownership into thousands of shares, which can be bought and sold through the stock market, known in Australia as the Australian Securities Exchange (ASX).
The ASX was formed in 1987 by amalgamating the six capital-city stock exchanges. Today the ASX is based in Sydney, but has offices in Melbourne and Perth.
There are over 2000 companies listed on the ASX. They include large retailers such as Woolworths and Wesfarmers (owners of Coles); the four big banks – ANZ, CBA, NAB and Westpac; and large mining companies such as BHP Billiton and Rio Tinto.
The value of shares can go up and down, depending on the demand for those shares. When a company reports that it has had a successful year, many people may want to buy shares in that company.
If there are more people wanting to buy than to sell, the price tends to rise.
If the company appears to not be performing well, there may be more shareholders wanting to sell their shares than there are buyers, so the price is likely to go down.
Choose one company from the ASX and keep a record of the closing figure for the next two weeks. Create a graph. Research who and what the company does and if you think buying shares in this company is a good investment opportunity.