Economics and Business - Year 6

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Title: Year 6: Economics And Business © 2015 Ready-Ed Publications Printed in Australia Author: Lisa Craig Illustrator: Alison Mutton

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Reproduction and Communication by others

Contents Teachers’ Notes National Curriculum Links

4 5-6

Section 1: Resources And Choices

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Grouping Businesses 1 Grouping Businesses 2 Comparing Businesses Not-For-Profit Businesses Types Of Industries 1 Types Of Industries 2 Case Study: Forestry Industry Australian Industry Ways Of Providing Goods And Services 1 Ways Of Providing Goods And Services 2 Ways Of Providing Goods And Services 3 Online Shopping 1 Online Shopping 2 Online Shopping 3 Online Shopping 4 My Own Business Venture Vocabulary Round-Up

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Trade-Off 1 Trade-Off 2 Opportunity Cost 1 Opportunity Cost 2 Limited Resources 1 Limited Resources 2 Limited Resources 3 Prioritising 1 Prioritising 2 Selecting Resources 1 Selecting Resources 2 Allocating Resources Sustainable Choices 1 Sustainable Choices 2 Vocabulary Review

Section 3: Business And Industry

© ReadyEdPubl i cat i ons •f orr evi ew pur posesonl y• Answers

39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56

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Family Spending 1 Family Spending 2 Family Spending 3 Family Spending 4 Go Local! 1 Go Local! 2 Choosing Local 1 Choosing Local 2 Choosing Local 3 Choosing Local 4 The Environmental Choice 1 The Environmental Choice 2 The Environmental Choice 3 The Environmental Choice 4 Consumer Influence

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Section 2: Consumer And Financial Decisions 23

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Teachers’ Notes 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. This book 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.

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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.

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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.

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National Curriculum Links ECONOMICS AND BUSINESS KNOWLEDGE AND UNDERSTANDING How the concept of opportunity cost involves choices about the alternative use of resources and the need to consider trade-offs (ACHEK009)

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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

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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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The effect that consumer and financial decisions can have on the individual, the broader community and the environment (ACHEK010) •

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?’

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investigating whether buying at the local supermarket helps the local community

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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?

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© ReadyEdPubl i cat i ons •f orr evi ew pur posesonl y• investigating questions such as ‘Does what my family buys in the supermarket affect what businesses might sell or produce?’

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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

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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

ECONOMICS AND BUSINESS SKILLS Questioning and Research 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?’

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surveying businesses in the local area to find out what influences their choices on the way they provide goods and services

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National Curriculum Links 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

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reading and interpreting data and information in various forms, including graphs

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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

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weighing up options involved in a decision, for example purchasing a phone by comparing the advantages and disadvantages of each available option

© ReadyEdPubl i cat i ons making a purchase decision basedp on an ofs the trade-offs involved •f o rr e vi ew uanalysis r po e son l y•

Apply economics and business knowledge and skills in familiar situations (ACHES015) •

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identifying the different ways different businesses provide goods and services

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identifying the effect of purchasing items on the community, for example ‘What is the effect on the local supermarket if groceries are purchased elsewhere?’

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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

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Present findings in an appropriate format using economics and business terms, and reflect on the possible effects of decisions (ACHES016)

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communicating findings in different formats such as tables, graphs and reports, that show how they have considered the effect of decisions they have made

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using economics and business terms such as scarcity, opportunity cost, retail, service, trade-offs

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Section 1: Resources Andrst Choices or eB

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Trade-Off 1

Activity 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.

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1.

2.

Have you ever bartered for a good or service? What was the trade-off? __________________________________________________________________________ __________________________________________________________________________ Study the following scenarios. Write down the trade-off(s) for each person.

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SIMON’S TRADE-OFF

B

Anna was lucky enough to win tickets to the cinema to see a blockbuster 3D movie. The movie was on the same night as her sister’s basketball final.

Anna gave the movie tickets to a friend.

ANNA’S TRADE-OFF

C

Matt wanted a new full suspension mountain bike like some of his friends had. To buy a new bike, Matt took a part-time job after school, and at weekends walked his neighbours’ dogs.

MATT’S TRADE-OFF

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Simon’s grandfather gave him $100 for his birthday. Simon found skateboard shoes that he really liked for $100 and another pair he equally liked for $70. He decided to splash out and buy the pair of $100 shoes.

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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.

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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)

Trade-Off 2

Activity

Trade-offs are commonplace in our daily lives. Trade-offs affect individuals, families and communities.

Look at the five scenarios below. Shade the choices that you would make. Write the trade-off(s) for each choice made. Discuss your choices and trade-offs with a partner.

Choices

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To live in the city or the country?

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Trade-Offs

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To cook at home or buy take-away?

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To drive to work or take public transport?

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To buy a new mobile phone or repair the old one?

5 To demolish a historic building or restore it?

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)

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Opportunity Cost 1

Activity 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.

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1. Weigh up the opportunity costs for Jack and Jill in the scenarios below. They must both make a choice between two leisure activities. Think of the benefits (or value) that the leisure activities offer to help you with your responses.

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Option 1: visit friends

OR

Option 2: make a cake

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JILL’S Opportunity cost for choosing TO visit friends:

JILL’S Opportunity cost for choosing to make a cake:

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Option 2: take photos

JACK’S Opportunity cost for choosing TO read a book:

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JACK’S Opportunity cost for choosing to take photos:

_______________________________________________________________________________________

2. Time after school can be very precious. Have you had to make a choice between two leisure activities? What activity did you choose and what was the opportunity cost?

Activity 10

Opportunity Cost

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)

Opportunity Cost 2

Activity

Highlight the options available in each situation in different colours, then write down the opportunity cost for each situation.

1. The local council has decided to spend $500,000 on a jobs creation project, instead of improving garbage collection in the community.

OPPORTUNITY COST:_______________________________________________________

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__________________________________________________________________________

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2. Tim decided to fly to Auckland to see a rugby game at the last minute. There was one seat left in economy class checking in at 5.00am and a seat left in business class checking in at 10.30am. He chose the earlier flight.

OPPORTUNITY COST:_______________________________________________________ __________________________________________________________________________

3. Approval has been granted for a new golf course to be built on land which local indigenous people use to harvest wild resources.

OPPORTUNITY COST:_______________________________________________________ __________________________________________________________________________

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4. On Emily’s way home from school, she came across a group of classmates teasing a younger child. She was told to mind her own business and go away, but she stayed to support the child.

OPPORTUNITY COST:_______________________________________________________ __________________________________________________________________________

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5. Ryan held a garage sale to clear out things that he had accumulated in his house.

Someone offered him $20 for a jumper that his mother had knitted him some years ago.

Ryan turned down the offer.

OPPORTUNITY COST:_______________________________________________________

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__________________________________________________________________________ 6. Year 6 students want to help out the local animal shelter. Some students think that volunteering their time to play with the animals is a good idea. Other students want to donate food. The group decide to volunteer their time.

OPPORTUNITY COST:_______________________________________________________

__________________________________________________________________________ Have you been faced with making a decision between taking one action and giving up the opportunity of doing something else? Describe the situation below. What was the opportunity cost for you?

______________________________________________________________________________

______________________________________________________________________________ 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)

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Limited Resources 1

Activity Information

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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 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.

1. Read through the following sayings. Choose two sayings and explain in the space provided how they are connected to limited resources.

You can’t always get what you want.

Money doesn’t grow on trees.

As scarce as hen’s teeth.

it too.

the day.

© ReadyEdPubl i cat i ons You can’t have There aren’t Waste not, •f orr evi ewcake pu r p oseso nl yhours • in your and eat enough want not.

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SAYING 1:_________________________________________________________________

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__________________________________________________________________________ SAYING 2:_________________________________________________________________

. t e Yasi hit the far north of Queensland, and destroyed o most of 2. In February 2011, Cyclone c . its crops. This created a banana shortage in Australia. This is an example of customers’ c e h r wants not being met due to limited resources. Work with ao er stpartner to think of two more super examples like this.

__________________________________________________________________________

Example 1:________________________________________________________________ __________________________________________________________________________ _________________________________________________________________________ Example 2:________________________________________________________________ __________________________________________________________________________ _________________________________________________________________________ 12

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

Limited Resources 2

Activity

1. In an ideal world, we would have unlimited resources. We would have more doctors and nurses, more ambulances, more police, more sports equipment at schools, more books in school libraries, smaller class sizes and more teacher assistants. The reality is though, resources are limited. Look at the pictures and say what resources are limited in each situation.

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bananas

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2. Draw your own pictures which depict examples of limited resources. Say what resources are limited in each situation.

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_____________________________________

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_____________________________________

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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

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Limited Resources 3

Activity 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.

Peanut Butter

Ice Cream

SOLD OUT

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1. Your teacher has put you in groups to make a collage. The teacher hands out the glue sticks, but there are not enough for everyone at your table. This situation is an example of SCARCITY because:

__________________________________________________________________________

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A choice I can make in this situation is:__________________________________________

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__________________________________________________________________________

__________________________________________________________________________

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© ReadyEdPubl i cat i ons 2. Describe from your own experience a time when you wanted a good or service and it was scarce. What • choice did make? f o ryou r e vi ew pur posesonl y•

3. How could the scarcity of the resources in the text box below change how people live in the near future? Choose two of the scarce resources and explain what changes might take place if these resources were not available to meet our needs and wants. You might like to do some research first on some of these resources.

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o c . potable water coal c phosphorus diamonds natural gas e h r er o (cacao) t s su land for building blocks old growth forests chocolate per

fish stocks iron ore

RESOURCE 1:______________________________________________________________

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RESOURCE 2: ______________________________________________________________

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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

Prioritising 1

Activity

It’s nearing the end of the Christmas school holidays. Mum has given you $75 to spend on basic supplies for the new school year. Look at the stationery items on this flyer with their prices. You can’t buy everything, so you’ll need to prioritise!

$75

Smith’s School Supplies

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sharpener with waste box USB flash drive (8G) magnifying glass A4 exercise book (64pg) A4 plastic cover A4 3-ring folder stapler pencil case (assorted) glue stick (20g) glitter glue stick (5 colours) student diary geometry set (7 pieces)

$2.18 $11.50 $4.90 1.36 .42 $1.65 $4.80 $5.50 $2.35 $1.75 $4.98 $6.99

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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

© ReadyEdPubl i cat i ons Hurry while stocks •f orr evi ew pur pose son l y• last!

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1. Make a rough list of the supplies that you really need in the space right, then do some calculations to see how much money you have left from $75. Remember that if you need more than one of the same item, you have to do some multiplication (e.g. 8 exercise books = 8 x $1.36).

. te o 2. After you have the essentials, spend the c . ch e remaining money on the items that you r e o want, but don’t go over your limit! r st super 3. Highlight on the stationery list the items that you have purchased. What was the total cost? $_____

4. Give a reason for making the decision not to buy a specific item on the list. Tick this item.

__________________________________

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__________________________________ 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

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Prioritising 2

Activity

1. What are your needs and wants at this time? Start by jotting down your needs and wants under these four areas in the diagram: Goods (e.g. toothbrush, ballet shoes, magazines, concert tickets, Dad’s birthday present); Services (e.g. repairs to your laptop, pet vaccination, haircut, music lessons); Experiences (e.g. to go sailing again, to play well in your weekend match); Feelings (e.g. to be more confident, to feel prepared for my science test).

Don’t worry about distinguishing between a need and a want at this stage.

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Goods

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needs wants © Read yEdP ubl i cat i ons •f orr evi ew pur posesonl y•

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2. Your goal is to meet your needs first before your wants because you won’t have sufficient resources to acquire everything on your list. For each item, ask yourself: is this really necessary or would it be just nice to have it? Highlight the needs that you have identified in one colour and the wants in another.

The needs I must meet are:__________________________________________________

__________________________________________________________________________

The wants I would like met in order of preference are: _ _________________________

__________________________________________________________________________

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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

Student Information

Selecting Resources 1

Read the information, then complete the tasks on the following page.

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.

Consumers’ Needs & Wants producers use resources

r o e t s Bo r e Natural Resources p ok natural u resources S

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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.

Capital Resources

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Human Resources

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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.

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capital © ReadyEdPubl i caresources t i ons •f orr evi ew pur posesonl y•

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.

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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

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Selecting Resources 2

Activity

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).

1. Study the diagram below which shows some of the economic needs and wants of a community. In the centre of the diagram are the community’s priority needs. In the outer layers are its wants.

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economic needs and wants of a community create a native wildflower reserve

attract a hardware chain store to the town

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create job opportunities for the under 25s

build a water treatment plant repair roads build a new ambulance station

establish a local farmers’ market

clean up stone facade on Town Hall

© ReadyEdPubl i cat i ons remove graffiti fromp open a tourist •f o rr e vi ew ur p os esonl y• the train station information centre

build a new church

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establish a wildlife refuge and hospital

increase garbage collection days

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lease vacant shops in the town centre

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remove abandoned cars from the creeks

expand the day-care centre playground

2. Your task is to identify what economic resources would have to be allocated to meet the needs and wants of this community. Most needs and wants are not met by one resource, but by a combination of economic resources. Choose one need and one want and identify which resources would be allocated.

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WANT:

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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

Allocating Resources

Activity

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.

Study the following images of consumers in different contexts and identify different producers that could supply resources to meet the consumers’ demands. An example has been given to start you off.

or eBo st r Consumer Needs e Resources

© ReadyEdPubl i cat i ons •f orr evi ew pur posesonl y•

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Resources supplied by producers: -- spare tractor parts from local tractor dealer -- Government advisor on GM rice plants

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o k Consumer: Farmer

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1

p u S

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4

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

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Sustainable Choices 1

Activity

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. . It appears on labels to indicate that products 1. You probably recognise this symbol have been made with recyclable materials or can be recycled. But what about the many other symbols that appear on our health care, stationery, food and clothing labels? Do your own research to find and draw the symbols for the following certifications.

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or eBo st r e p not tested o Carbon Footprint natural wool fibre u k on animals S

© Ready Ed Publ i cat i o nsfood wood source grown •f orr evi ew pur posesonl y• sustainable

organically

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protects rainforests and the environment

2. Do you think that it’s important to choose goods and services that are produced and packaged in a sustainable way? Why or why not? __________________________________________________________________________ __________________________________________________________________________ 3. According to researchers, 36% of Australian shoppers report that they are willing to pay more for sustainably-produced food such as: free-range eggs, dolphin-friendly tuna or organically-grown fruit and vegetables. But when it comes to the crunch, only 13% actually do. Discuss this issue with a partner then suggest two ways to encourage people to choose sustainable products.

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suggestion 1:_ __________________________________________________________

__________________________________________________________________________

suggestion 1:_ __________________________________________________________

__________________________________________________________________________ 20

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

Sustainable Choices 2

Activity 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!

or eBo st r e p ok u S

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Produced locally:

Made from recycled materials:

Minimum packaging – less waste:

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1. Document in a journal over the next three days the products that you have bought personally (or those bought for the family). Find out how you contributed to sustainability by recording the names of the products purchased under the different categories below. Where possible, sketch the symbols on the packaging that gave you the sustainability information.

Organically produced:

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Made from a source of sustainable wood:

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Sustainable seafood:

Biodegradable packaging:

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© ReadyEdPubl i cat i ons •f orr evi ew pur posesonl y•

Energy-efficient electrical appliances: more stars - save more:

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2. Compare your sustainable consumer journal with several classmates. Evaluate below how you fared in making sustainable choices. __________________________________________________________________________ __________________________________________________________________________ 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

21

Vocabulary Review

Activity

Let’s consolidate your understanding of the economic concepts and vocabulary in this section. Read the clues below to complete the crossword.

If you have completed the task correctly, you will be able to read vertically in the bolded box, a term that describes the efficient use of resources.

1) 2) 4) 5) 6) 7)

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3)

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© ReadyEdPubl i cat i ons •f orr evi ew pur posesonl y•

8) 9)

11)

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Clues

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1. A person or group who is the final user of goods and services.

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10)

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3. Products that satisfy people’s needs and wants. che e r o 4. The type of cost when a person gives up the next best alternative. r st super 5. Desires that can be satisfied by consuming goods and services.

2. An individual or business who creates and supplies goods and services.

6. Work performed for another person, but not owned by that person.

7. Goods and services that people require to survive.

8. This happens to the availability of goods and services when consumer demand is high.

9. A name given to a specific product or range of products made by a company.

10. The quantity of goods and services that a producer is willing to sell to consumers.

11. The sacrifice a consumer makes to obtain something else.

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Section 2: Consumer And Financial or eBo st r e p ok Decisions u S

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Family Spending 1

Student Information

Study the data in this infograph about the Average Australian Weekly Household Costs. (Source: ABS Household Expenditure Survey 2009-10) Bakery Products

Eating Out AND Take-Aways

$20

Household Appliances

$7 r o e t s Bo r e p ok u S $32

Child Care

Audio Visual Equipment

$9

$14

$12

Holidays

Pet Care

Personal Care

$13

Newspapers AND Books

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Mobile Phone

Shoes

$9

Health Services

© ReadyEdPubl i cat i ons $20 $11 $52•f orr ev i ew pur p$11 osesonl y •

(Source: ABS Household Expenditure Survey 2009-10)

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Goods and services

Housing

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Couple with children (ages 5-14)

o c . che e r o r st super $360

$325

$26

$43

$207

$279

Alcohol

$41

$31

Clothing and footwear

$52

$64

Medical and health expenses

$58

$77

Transport

$224

$254

Recreation

$182

$204

Total weekly expenditure

$1429

$1670

Fuel and power Food and drinks

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Couple with no children (aged under 35)

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Study this table comparing the weekly spending of a family (aged under 35 years) with no children to a family with children (ages 5-14 years).

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?’

Family Spending 2

Activity

After studying the infograph on the previous page, answer the questions below.

1. The infograph is a snapshot of the average value of goods and services that Australian households consume each week. Give three examples of spending that do not appear in the data.

1

2

3

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2. Why do you think holidays take up a considerable amount of people’s spending? __________________________________________________________________________

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__________________________________________________________________________

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3. Which goods and services besides bakery products would you consider to be essential?

Choose two essential goods and services and justify the need for them.

ESSENTIAL PURCHASE 1: ____________________________________________________________ _ _______________________________________________________________________________ ESSENTIAL PURCHASE 2:_ ___________________________________________________________

© ReadyEdPubl i cat i ons •f orr evi ew pur posesonl y•

_ _______________________________________________________________________________

Use the information presented in the table on the previous page to help you to answer the questions below.

4. How would you explain the fact that a couple without children would spend more on housing, but less than a couple with young children in almost every other category?

__________________________________________________________________________

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__________________________________________________________________________

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5. What percentage is housing, food and drinks and transport, of each family type’s total weekly expenditure? (Remember: % = n ÷ total expenditure x 100. Round up to the nearest whole number e.g. 23.66 24.) Who spends more as a percentage of their weekly spending on these essential goods and services?

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o c . che e r o r % st s uper

Couple without children

Couple with children

%

6. Speculate on the weekly expenditure of a family with children aged between 14-24 in the following areas:

A) recreation ____ B) fuel and power ____ C) transport ____ Why are your estimates higher or lower than the expenditure of the family types in the table? __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ 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?’

25

Activity

Family Spending 3

case study

Teac he r

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.

or eBo st r e p ok u S

C

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.

Adam pays $20 a week to feed his bulldog Mimi quality dry food. By midweek 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-ablock with the novels that she reads.

© ReadyEdPubl i cat i ons •f orr evi ew pur posesonl y•

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A

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1. Below are more details about the Wise family’s average weekly spending. Work in pairs, using online resources and your own ideas, to propose trade-offs that the family could make in order to repay the car loan comfortably in a year. Estimate the potential savings for some or all of the scenarios.

. teplan for the Wise family in the space provided. Share o it with the 2. Present your financial c . class. che e r o st super Wise Family Financial Planr

26

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?’

Family Spending 4

Activity 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.

1. Help Mrs. Wise plan her swap party in the diagram below.

or eBWAYS TO TELL PEOPLE? st r e oo p k Su

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PLACE AND TIME?

WHO TO INVITE? WHAT © ReadyEdPubl i cat i o nsI WANT TO SWAP BOOKS FOR...

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•f orr evi ew pur posesonl y•

. te o c 2. Swap parties are a fun way of obtaining the things that you want and at the same time . che e being a sustainable consumer by reusing goods. But a swap party needs planning to r o t of hosting a swap party in r avoid problems. Jot down the advantages and disadvantages s s r u e p bullet points in the table. Discuss your points with a partner.

ADVANTAGES

DISADVANTAGES

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?’

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Go Local! 1

Student Information

Read the seven statements below which argue that buying food that is produced locally is beneficial.

1

Takes advantage of fresh seasonal food.

5

or eBo st 2r e p ok u S 6 Helps us to find out more about how food is produced.

3

Locally-grown food is fresher, tastier and healthier.

Contributes to a more sustainable future.

Reduces the “food miles” that farm products travel.

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Supports local farmers, producers and local businesses.

4

7

Ensures that food that is produced, meets quality standards.

© ReadyEdPubl i cat i ons Australia imports ao great variety ofi processed and fresh food products from around the world.

• f r r e v e w p u r p o s e s o n l y • The graph below is a rough guide to how many “food miles” some products travel, to be on

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20000 18000 16000 14000 12000 10000

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food miles

chorizo sausage

o c . che 1073 e r 991 o r st s r u e p 852 wheat prawns

550

4000

olive oil

bananas

8000 6000

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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.

473

2000 0

km

28

Brazil

China

Costa Rica

Spain

Vietnam

italy

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

Go Local! 2

Activity

Use the information on the previous page to complete the questions below.

1. What food has to travel the most miles?

__________________________________________________________________________

2. Where is this food imported from?

or eBo st r e p ok u S

__________________________________________________________________________

3. Why do we import foods? Think of at least two reasons.

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________ __________________________________________________________________________

4. Why is it not environmentally friendly for food to travel?

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__________________________________________________________________________

© ReadyEdPubl i cat i ons 5. What does carbon footprint mean?

•f orr evi ew pur posesonl y• __________________________________________________________________________

__________________________________________________________________________

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6. What quality standards do you think Australia might have in place that other countries might not? Try to think of at least two possible quality standards. __________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

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. te o __________________________________________________________________________ c . cthate e r 7. How do you know if foodh you buy has been imported? o t r s s r u e p __________________________________________________________________________ 8. On the graph add two more imported food items and specify the food miles that they travel. You will need to do some research.

EXTRA! A. Use the information on the previous page to create an advertisement for the local newspaper encouraging consumers to buy local farm produce. Do this on the back of this sheet or in your workbooks.

B. Carry out your own research on the facts supporting one of the arguments presented by farmers for buying local produce on the previous page.

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

29

Choosing Local 1

Student Information

Does shopping at the local supermarket support local food producers? Read this report to find out.

WHAT PRICE TO SUPPORT LOCAL FARMERS? PEACH SLICES

PEACH SLICES

$2.40

$3.50

Tassie

West

certain whether an imported food item has been produced to the high standard of quality demanded of locally-produced food.

or eBo st r e p ok u S PEACH SLICES

PEACH SLICES

$3.60

$3.49

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.

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.

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Market X

Coast

© ReadyEdWhat’s Pub i cat i on s have the l solution?

Local producers called on supermarkets to help them promote •f orr evi ew pu po s eso nl y• ther range and quality of their foods by:

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• 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.

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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

o c . che e r o r st super

Australian

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

made

Choosing Local 2

Activity

Read the report on the previous page to help you to answer the questions below.

or eBo st r e p ok u S

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1. Identify three problems that local food producers face in getting their produce into local supermarkets.

PROBLEM 1:_______________________________________________________________ __________________________________________________________________________ PROBLEM 2:_______________________________________________________________ __________________________________________________________________________ PROBLEM 3:_______________________________________________________________ __________________________________________________________________________ 2. How does a supermarket’s own brand of groceries benefit the consumer? __________________________________________________________________________ __________________________________________________________________________ 3. What are the benefits to the supermarket retailers of buying foods grown, processed and packaged overseas? __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ 4. Look at the solutions suggested in the report. Which one do you think would be most effective in supporting local farmers? Explain your choice. __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ 5. Food Standards Australia and New Zealand has laws which govern how a food product should be labelled in order to inform a consumer’s choice. Consult this website 4www. accc.gov.au/consumers/groceries/country-of-origin to find out the laws for making the two claims below on product labels. Give examples if it helps your understanding.

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© ReadyEdPubl i cat i ons •f orr evi ew pur posesonl y•

o c . che e r o t 2: product of s super Claim1: Made Inr Claim Australia

Australia

Made In Australia

grown In Australia

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

31

Choosing Local 3

Activity

homework activity

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.

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Teac he r

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Find twelve items in your house which contain labels. On the labels below, copy out the following information: -- type of product; -- where the product was grown or produced; -- whether the product carries the “Australian Made” logo (shade these label).

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Compare your labels with several classmates. What conclusions can you make about the effectiveness of the “Australian Made” campaign?

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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

Choosing Local 4

Activity information

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.

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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.

© ReadyEdPubl i cat i ons •old f o rr evi e ur poseso y• girl A 9 year Bw p Cnl Bangladesh CELEBRITY working for $25 a month in clothes factory

textile factory collapse – 326 killed

BRAND PAYS POVERTY WAGES

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Read these news headlines about sweatshops.

1. Write down three questions that you would like to ask about the headlines, then try to find out the answers to your questions through research, and report back to the class. i. _______________________________________________________________________ ii. _______________________________________________________________________ iii. _______________________________________________________________________

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o c . che e r o r 2. Visit this website 4www.ethicalclothingaustralia.org.au/ stto help you to learn more s r u e p about Ethical Clothing Australia and answer the following questions: a) How can schools promote buying ethically-produced school uniforms?

__________________________________________________________________________

__________________________________________________________________________ b) Did you notice the ECA logos on the website? Design your version of it in your workbook. c) Say why we should practise fair trade in Australia.

__________________________________________________________________________

__________________________________________________________________________ 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

33

Student Information

The Environmental Choice 1

Read this article about a community’s decision to protect its environment.

BAN THE 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.

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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.

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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.

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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.

34

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© ReadyEdPubl i cat i ons •f orr evi ew pur posesonl y•

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.

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?

The Environmental Choice 2

Activity

After reading the article on the previous page, answer the questions below.

1. What are the trade-offs for introducing the plastic shopping bag ban in Coles Bay:

A) ..for shop retailers?

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B) ..for consumers?

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2. Find three examples in the article that support the idea that consumers were in agreement with the decision to ban plastic shopping bags. Quote from the article.

i. _______________________________________________________________________ ii. _______________________________________________________________________ iii. _______________________________________________________________________ 3. Why are lightweight plastic shopping bags still being sold or given away by retailers?

© ReadyEdPubl i cat i ons __________________________________________________________________________ •f orr evi ew pur posesonl y• __________________________________________________________________________

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4. The article states that plastic bags take about 1,000 years to degrade (break down) in the environment. Research the approximate time that it takes for the following materials used in product packaging to compost and degrade:

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plastic bottles milk cartons coated cellulose paper aluminium cans Produce a line graph to represent your research findings. You can draw the graph in the space below or generate the graph on a computer, then paste it here.

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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?

35

The Environmental Choice 3

Activity

Read the article on page 34 before studying the two emails below which were sent to the editor of a newspaper about a proposal to "Ban the Bag" in a community.

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)

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Dear Editor, I would like to give my view on the proposed ban of the use of nondegradable plastic bags in retail shops. As a supermarket 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.

Say No To The Ban On Bags (email supplied)

1. What do you think about banning plastic shopping bags? Compose an email to the editor of a newspaper. You can reply to one of the writers above or you could write about your views on this issue.

© ReadyEdPubl i cat i ons •f orr evi ew pur posesonl y• To:

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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?

The Environmental Choice 4

Activity information

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.

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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.

Research what this information means to help you to make notes in the text boxes provided next to the image below.

Pole & Line

species (skipjack) © Ready dP ubl i cat i on s Top Tuna POLE &E

•f orr evi ew pur posesonl y• LINE

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in springwater

AREA OF CATCHING (WCPO) . te o c . che e r o r st super

How has the tuna fishing industry become more dolphin-friendly since the 1990s? Visit this site to find out more: 4www.earthisland.org/dolphinSafeTuna/consumer/

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__________________________________________________________________________ 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?

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Consumer Influence

Activity

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.

case study 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?

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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.

Using the case study of kale above, complete this flow diagram to show how consumer demand can influence what products are sold in a supermarket.

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Kale becomes scarce.

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Kale is back on the supermarket shelves.

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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?’

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Section 3: Business And Industry

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Grouping Businesses 1

Student 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.

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To Provide A Public Service (Public sector owned by the government)

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Types Of Businesses Businesses can be grouped into four main categories:

TO MAKE PROFITS (Private sector)

SHOPs

© ReadyEdPubl i cat i ons •f orr evi ew pur posesonl y•

NOT-FOR-PROFIT/CHARITy

(Developing a good business idea)

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ENTREPRENEURSHIP

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While businesses in the public sector, not-for-profit and charities are not set up to be profitmaking, 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.

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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

Activity

Grouping Businesses 2

Read the information on the previous page to help you to answer the questions.

1. Why is being able to make a profit a major objective of most businesses?

__________________________________________________________________________

__________________________________________________________________________

2. What are two differences between Public Sector and Private Sector businesses?

or eBo st r e p ok u S Difference 2:

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Difference 1:

3. Think about the shopping facilities and public services in your local area. Can you name at least three businesses for each of these business categories?

NOT-FOR-PROFIT or

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PRIVATE SECTOR © ReadyEdPubl i cat i ons CHARITY •f orr evi ew pur posesonl y•

PUBLIC SECTOR

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4. Why would Public Sector businesses aim to create a surplus each year?

5. An entrepreneur is somebody who thinks of a good business idea, organises the people and resources to develop the product, and takes all the financial risks to make the enterprise a success. Famous entrepreneurs include: Bill Gates, Richard Branson, Jamie Oliver, Victoria Beckham and Oprah Winfrey.

Research a young Australian entrepreneur and prepare a short talk on the product or service which he or she has developed from a bright idea. This is a useful website: 4www.ey.com/AU/en/About-us/Entrepreneurship/Entrepreneur-Of-The-Year 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

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Comparing Businesses

Activity

Let’s compare a for-profit business (Swimming Pool Constructor) to a not-for-profit business (Animal Shelter).

SPLASH SWIMMING POOLS LTD

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• 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.

• The shelter competes with other not-forprofit businesses for members, volunteers and funds. It has to justify its decisions to a large group of members about how funds are spent.

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• 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 knowhow.

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FERNTREE VALLEY DOG, CAT AND BIRD SHELTER

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© ReadyEdPubl i cat i ons •f orr evi ew pur posesonl y•

. te o How well do you understand the differences between a for-profit and not-for-profit c . ch business? Write a paragraph explaining the main differences r in e your own words. er o st super __________________________________________________________________________

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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

Not-For-Profit Businesses

Activity

homework activity

There are over 600,000 registered not-for-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.

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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.

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Your task is to create a fact file for a charity of your choice based on the model given below. A helpful website to use is: 4www.australiancharityguide.com

Fact File:

BUSINESS OBJECTIVE: __________________________________ __________________________________ __________________________________ GOVERNANCE: __________________________________ __________________________________ __________________________________ MAJOR SPONSORS: __________________________________ __________________________________ __________________________________ CHARITABLE ACTIVITIES: __________________________________ __________________________________ __________________________________ FUND-RAISING: __________________________________ __________________________________ __________________________________ HOW DONATIONS ARE MADE: __________________________________ __________________________________ __________________________________

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GOVERNANCE: A board of eight directors, which meets six times a year. The Board brings aviation and business experience to the service.

MAJOR SPONSORS: Westpac, Surf Life Saving Australia, NSW Government, Lions International, Cassino, CHT, Yellow Pages.

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CHARITABLE ACTIVITIES: Surf rescues, attending road accidents, rescue missions at sea, transporting patients to other hospitals, searching for lost plane beacons.

FUND-RAISING: Community or individual fund-raising 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.

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

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Types Of Industries 1

Student Information

Read the information below, then complete the tasks on the following page.

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 = Tourism Hospitality Health Arts and Recreation

or eBo st r e p ok u S Quinary 11%

QUARTERNARY = Media and Communications Information Technology Finance and Insurance Real Estate Education Government Administration Professional and Technical Services • Administration and Support Services • • • • • • •

Primary 12%

Secondary 17%

Quarternary 46%

Tertiary 14%

• • • •

PRIMARY = Agriculture Mining Fisheries Forestry

SECONDARY = • Manufacturing • Utilities(water, gas, electricity) • Construction

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• • • •

TERTIARY = • Wholesaling • Retailing • Transport

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How Industries Are Connected

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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:

o c . c e her r wholesaler o food t s super services

consumer

processing plant

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transport

retailers

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

Types Of Industries 2

Activity

Use the information on the previous page to help you to complete the tasks and answer the questions.

1. Draw lines to match the primary industries with the products manufactured.

1. MINING

fertilisers, jewellery

2. agriculture

nylon cord, deodorants

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door hinges, paints

4. fisheries

coffee filters, tambourines

5. oil extraction

biofuel, spaghetti

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3. forestry

BUSINESS

SECTOR

BUSINESS

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2. Work with a partner to sort the businesses below into their various sectors (primary, secondary, tertiary, quaternary and quinary). Some industries are not on the information page, but use your powers of deduction to correctly identify them.

SECTOR

state emergency services

health food shop

website design

sugarcane farm

wholesale clothing supplier © ReadyEdP ubl i cat i ons bus company cultured pearl farm f orr evi ew pur pThai os esonl y• electricity• provider restaurant tourist resort

scuba-diving school

day-care centre

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3. How are industries in the various sectors connected to bring goods and services to the consumer? __________________________________________________________________________

. te o c 4. In the space below, create a production chain diagram for a biofuel, e.g. ethanol (from . c e sugarcane). her r o t s super

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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

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Activity

Case Study: Forestry Industry

Read about the goods and services provided by the forestry industry in Australia, then answer the questions below.

information

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Australian 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:

© ReadyEdPubl i cat i ons •f orr evi ew pur posesonl y•

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.

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1. What are the main economic activities of the forestry industry?

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. te o 2. Write down how goods and services provided by the forestry industry support the needs of: c . che e r o r stTHE COMMUNITY s OTHER uper CONSUMERS

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INDUSTRIES

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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

Australian Industry

Activity

It’s your turn to research an Australian industry and prepare a report on its importance to the Australian economy and the goods and services that it provides. Use the template below to write up your report.

Here are some industries for you to research:

TOURISM MINING HOSPITALITY INFORMATION FASHION WOOL CONSTRUCTION

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or e t s Bo r e MY REPORTp ON: ok u S Contribution to the economy:

_______________________________________________ _______________________________________________ _______________________________________________ _______________________________________________ _______________________________________________ © ReadyEdPubl i cat i ons _______________________________________________ •f orr evi ew pur posesonl y• This industry provides:

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_______________________________________________ _______________________________________________ _______________________________________________ _______________________________________________ _______________________________________________ _______________________________________________ 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

47

Ways Of Providing Goods And Services 1

Student Information

The following information explores some of the ways that consumers today can buy the goods and services that they want. Read the information, then complete the tasks on the following two pages.

Shopping Centres

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Small Independent Shops

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.

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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.

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Remote Community Stores

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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.

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.

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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.

Ways Of Providing Goods And Services 2

Activity

Read the information on the previous page to help you to answer the questions on this page.

1. List three advantages for consumers of shopping at shopping centres or malls. i. _______________________________________________________________________ ii. _______________________________________________________________________ iii. _______________________________________________________________________

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2. What are chain stores?

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3. Why do chain stores take up a large percentage of retailer space in shopping centres? __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________

4. Compare the goods and services that you’ve recently bought from shopping centres with those from local small independent retailers in this Venn diagram.

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© Rshopping eady EdPub l i cat i ons centres small independent retailers •f orr evi ew pur pos esonl y•

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Share your comparison with other peers. Is there a pattern for the types of goods and services bought from small independent retailers? __________________________________________________________________________ __________________________________________________________________________ 5. What strategies do small independent retailers use to attract consumers?

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__________________________________________________________________________ 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.

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Activity

Ways Of Providing Goods And Services 3

Use the information on page 48, to help you to answer the questions on this page.

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1. Have you ever visited your local market or been to one on holidays? Annotate the image of the stall below with the types of goods and services that people can buy and use at local markets. Make a note underneath the image of your experience at a local market compared to other types of shopping facilities.

© ReadyEdPubl i cat i ons •f orr evi ew pur posesonl y• Your experience:_ ____________________

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_____________________________ To help you to complete the next three questions, go to this website to explore shopping at remote community stores: 4http://outbackstores.com.au/

. t e o BENEFIT 1:_ _______________________________________________________________ c . che e BENEFIT 2:_ _______________________________________________________________ r o r st super BENEFIT 3:_ _______________________________________________________________

2. Identify four benefits to remote community shoppers that community stores bring.

BENEFIT 4:_ _______________________________________________________________ 3. Look at the map of community stores on the website. Where are most of the stores located?

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4. From the images on the website, what did you learn about the shopping experience at remote community stores?

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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.

Student Information

Online Shopping 1

Read the information below, then complete the next activity page.

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.

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concerns about online security

supporting local business

accustomed to buying in stores want to talk to salespeople

unreliable access to the internet

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want to view it before buying

Š ReadyEdPubl i cat i ons online •f orr evi ew puretail r posesonl y• 0%

10%

20%

30%

40%

50%

save money compare products and prices

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variety of goods save time avoid travel

avoid shopping centres

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avoid salespeople

privacy other

0%

20%

40%

60%

80%

100%

How do businesses sell online?

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.

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Online Shopping 2

Activity

The information on page 51 will help you to complete this page.

1. What is e-commerce?

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2. How motivating for consumers is the wide variety of goods available in online retail?

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3. What percentage of consumers want to see a product before buying it? Why do you think this is a major concern? __________________________________________________________________________

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4. How could shopping online save time?

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© ReadyEdPubl i cat i ons •f orr evi ew pur posesonl y• __________________________________________________________________________

5. Have you or your family shopped online? What motivated you to use e-commerce?

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6. Can you still support local business by shopping online? Why or why not?

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7. Some consumers are reluctant to buy online for various reasons. Look at the graphs on page 51. Work with a partner. Propose three ways that e-commerce could be improved to attract more buyers and retailers.

Proposal 1:

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Proposal 2:

Proposal 3:

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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.

Online Shopping 3

Activity information

State or Territory

Major sales online

NSW

NRL merchandise and DVDs

VICTORIA

AFL merchandise and books

WESTERN AUSTRALIA

Lighting, wedding supplies, party supplies

SOUTH AUSTRALIA

Gardening supplies, plants and seeds

TASMANIA

Nail art supplies

ACT

Toys and video games

NORTHERN TERRITORY

Fishing equipment and automotive parts

QUEENSLAND

Fashion and jewellery

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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:

Present the data above as an infograph on the map of Australia. Make it eye-catching and easy to interpret. Give your infograph a title.

Title: _________________

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© ReadyEdPubl i cat i ons •f orr evi ew pur posesonl y• nt Qld

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ACT

tas Share your infograph with a partner. How could you explain State and Territory trends in online Ebay sales? Write your ideas on the back of this sheet.

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.

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Online Shopping 4

Activity 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 intend to buy); the mobile phone plans available; how you use your phone and how often.

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Do the Maths!

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These considerations are even more important in the age of downloads made easier by new phone technology, the National Broadband Network and WiFi. Many mobile phone plans offer attractive monthly rates or prepaid 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?

If you want to connect to the internet to send emails, browse the Net or catch up with friends on social media, you’ll have to do the maths. If you have a monthly data cap of 500MB for example, your parents might be in for a nasty shock if you exceed this limit on your mobile phone plan as added fees can be quite expensive.

Here are some case studies for you to work out the data usage for each of these internet activities. Work out on the back of this sheet the data usage of each activity for 30 days.

Do you think that the data cap is adequate for each teenager’s phone plan? Remember that they use the internet for other activities. Colour the cap if you think it is adequate in each case.

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B

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CAP 1G

Maya catches up with friends for 10 minutes on facebook every night.

Molly loves music and builds up her collection by downloading at least 2 songs a day.

Data usage: 1MB per minute

Data usage: 6MB per song on average

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Trey is nuts for sports of all kinds. He browses for sports results for 20 minutes per day.

Leah and Ted like gaming. They spend about 30 minutes per day playing their favourite game.

Data Usage: 0.4MB per minute

Data usage: 1.5MB per minute

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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.

My Own Business Venture

Activity

or eBo st r e p ok u S OUR FINANCIAL PLAN

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Your Year 6 class would like to do something different and special for an end-of-year outing. You will need to do some fund-raising to achieve this objective. In small groups, plan on the following template: your choices for an end-of-year outing and research on costs (entry fees, transport etc); your analysis of the financial target for fund-raising; your proposals for type/s of fund-raising activity or activities; calculations of the costs of fund-raising (e.g. ingredients to make cakes, licence fees to screen a film, rental of marquee, etc.). Who can help you with these overheads (expenses)?; predicted profit/s on fund-raising activities; timeline for organising and carrying out fund-raising activities.

Research On Costs Of Outing:

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Types Of Fund-raising Activities:

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Target For Fund-raising:

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Fund-raising Costs:

Projected Profit:

Timeline:

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.

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Vocabulary Round-up

Activity

Grab a dictionary. In this crossword, you will only be able to complete your grid by asking your partner for clues and visa versa. Before you start, write clues for the business and economic terms you have on the back of your sheet (Student A or Student B). Don’t show your words!

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Answers p.8 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.

p.12 2) Suggestions: the race to buy New Year’s bargains in department stores; droughts that cause certain crop failures; limited edition products.

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p.13 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.

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p.9 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, traffic 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: homecooked nutritional meal, pleasure of cooking, guarantee of quality ingredients, etc. 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 – trade-off: being without phone during repair, opportunity to have better phone with newer technology. 5) Choice: Demolish historic house – trade-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.

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.

p.14 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 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.

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p.10 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.

p.15 Students should compare stationery lists and help each other with their budgets. p.18

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p.11 1) More rubbish on the streets, fuller, unsightly garbage bins. 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

NATURAL CAPITAL

HUMAN

Land, water Water treatment supply plant

Funds to build the plant

Labour to design, build and operate the plant

WANT:

Funds to build

Planners to write a proposal, workers to plan and build

Hardware Chain Store

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p.19 Suggestions: 1) seed/plant suppliers; mechanic to repair farm machinery 2) sports equipment 57

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 p.20 2) Reducing, reusing and recycling packaging materials cuts down the use of limited resources and potential pollution. 3) Sample answers: More advertising on how sustainablyproduced goods help the environment; more discounts on products to attract consumers. p.22 O

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p.25 1) Sample answers: education, entertainment, clothing 2) Holidays are a major expense and not a frequent purchase. 4) Couples without children might have more disposable income to spend on housing. The cost of raising children adds to family expenditure (clothing, health care, child care, etc.) 5) Couple without children = 70%; Couple with children = 51%.

6) After the class has completed the 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.

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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. 2) The consumer can buy the supermarket’s own brands at lower prices. 3) Supermarket retailers can buy products in bulk from overseas producers at lower prices and ensure steady stocks of grocery lines. 5) Made in Australia Claim 1: Australia is 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.

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p.26 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.

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p.29 1) chorizo sausage 2) Spain 3) (i) to obtain products not always available in Australia; to obtain products at lower prices (ii) to build trade relations with other countries 4) Transportation involves the consumption of fossil fuels. 5) The fuel and its pollution’s impact on the environment measured in kilograms.

6) Sample answer (i) sustainable fishing practices (ii) food labelling that does not include all the preservatives and additives.

7) It will be printed on the label/packaging.

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2) ADVANTAGES: obtaining things you 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.

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p.27 1) Encourage students to think about: 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.

p.33 1) Questions might include: How could children be allowed to work in factories?; Why

do celebrities have their designer clothes made in sweatshops?; Why did the factory collapse? 2a) Schools can check that their uniform supplier carries the ECA certification.

p.45 1) mining = door hinges, paints; agriculture = biofuels, spaghetti; forestry = coffee filters, tambourines; fisheries = fertilisers, jewellery; oil extraction = nylon cord, deodorants 2) State emergency services = quarternary; website design = quarternary; 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 = quarternary. 3) Raw materials produced or extracted in 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.

4) Ethanol production chain: sugarcane (raw material) fermentation and distillation mills transport wholesalers retailers consumers

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p.37 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.

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p.35 1A) The income earned from selling plastic carry bags to shoppers. 1B) The convenience of having plastic bags supplied at the checkout. 2i) “Locals got into the habit of not 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.” 3) Other bags are more expensive to buy and are thought not to be as durable. 4) From shortest to longest time to degrade (approximate): paper (6 weeks); milk carton (3 months); coated cellulose (cellophane) (4 months); plastic bottles (450 years); aluminium cans (500 years).

p.42 Model answer should include references to: motive for setting up business, aims of the business and how profit or surplus is distributed and applied.

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p.46 1) protection of forested areas; controlling pests and plant diseases; advising farmers on ecology matters 2) CONSUMERS: wood products such as furniture; school supplies; paper, etc. OTHER INDUSTRIES: wood construction materials like timber; flooring; advice to agriculture sector, etc. THE COMMUNITY: managing forestry areas to preserve heritage; biomass removal to prevent bushfires; providing parks for recreation

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p.38 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.

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p.41 1) Without making a profit, businesses would not have the capital for their running costs and would have to shut down. 2) Difference 1: The principal aim of a private 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. 4) A surplus would provide capital to invest in improving the goods and services offered, and expand the business.

p.49 1) i) Convenience of being closer to home. ii) Different shops under one roof. iii) Easy parking. 2) Large stores which can be found in other shopping centres nationally and internationally. 3) Chain stores tend to be larger retail outlets that carry a wide range of goods, and can afford higher rents.

4) Students will probably conclude that small retail businesses are more specialised and 59

focus on catering to consumers looking for personal preferences, e.g. a favourite hairdresser, vegetarian restaurant, etc. 5) More personalised attentive, friendly “family” atmosphere. p.50 2) Benefit 1: regular supply of fresh nutritious food; Benefit 2: providing banking and postal services; Benefit 3: provides a social hub; Benefit 4: providing local employment opportunities.

3) In very remote regions principally in the Northern Territory. 4) Suggestion: community shops were small, but modern and well-stocked.

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p.52 1) E-commerce is shopping conducted electronically on the Internet. 2) The data in the online retail graph suggests that people are quite motivated (62%); e-commerce sales are increasing annually. 3) About 46%. People could be afraid of being misled by the images of products on the web pages. 4) Shopping is literally at people’s fingertips, people save time not having to travel and park at shopping centres. 6) If local small retailers have online sales, consumers can still support local businesses through e-commerce.

7) Suggestions: using high quality photography to maximise depiction of products; giving more assurances of consumer protection against fraud; keeping postage/shipping costs as low as possible.

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p.54 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.

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p.56 Check that students are writing definitions for the terms in the economics sense.

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