9AE What you should be preparing notes for…
Create detailed summaries of information…remember to use examples for each term, concept or process.
Economics
What role advertising plays in the economy, in relation to supply and demand.
- Advertising creates a higher demand for a product by creating wants in the consumer
- Presents the product to a wider audience (Internet and globalisation)
- Increase the demand of a product by increasing its exposure to a wider market – global market
- Raises the profile of a product and the demand for that product goes up based on branding (wants)
What an increase in real income would influence consumption of.
- Luxury goods and services
- Leisure, travel, expensive brands
- Non-essential goods and services, luxuries
- Expensive cars, extra televisions (WANT items)
What the law of demand is.
- When the price of a good or service increases, the consumer demand for the good or service decreases (and vice versa)
What the four resources are and examples of each.
1) Natural – wheat
2) Labour – workers (factory worker)
3) Capital – machinery (truck)
4) Entrepreneur or Enterprise – ideas behind the business (Franchise – Apple, Maccas)
What ‘opportunity cost’ is.
The loss of the potential gain of other alternatives when one economic decision (choice) has been made.
The difference between renewable and non-renewable resources and examples of these.
Renewable – A resource that is able to be renewed or replenished. Can be replaced easily. Trees, sun etc
Non-renewable resource – Finite resource that CANNOT be replaced or renewed once ot has run out. Oil, minerals etc
Causes and effects of globalisation.
CAUSES
- Technological advancement (Computers, communication, transport)
- Mass media
- Reduced tariff barriers for trade incease
- One global market of trade
- Electronic forms of banking and shopping (e.g. Ebay, eftpos etc)
EFFECTS
- Large TNCs spread across the globe
- Exploitation of developing countries
- More products available to consumers
- Increase OR decrease in the standard of living
- Spread of culture and religion
- Multiculturalism
- Monolopolising the market – reduced choice long term
- Pollution and environmental damage
- Consumerist society
What is a fiscal monetary policy?
Government will borrow money from overseas or put the economy into debt (deficit) to keep it going, or until it stabilses again
Government will spend money to keep the economy going – e.g. stimulus packages (every consumer is given money to spend on non-essential items
Problem is there is an assumption that the future economy will be able to pay any debts, putting off paying off…
May increase taxes or reduce to control the economy, control interest rates through the reserve bank
Government influences in the economy – what do they do and what effect does it have?
Charge taxes PAYGT, GST
Control trade by establishing strong agreements, policies with our neighbouring countries
Invest in education and industry (businesses)
Float the dollar or influence interest rates
Issues caused by Trans-National Corporations (TNCs).
- Exploitation of third world countries
- Powerful sometimes more powerful that Governments (have more money)
- Environmental damage
- Reduction in competition (local businesses cannot compete)
- Organisations will set up in cheapest countries, loss of jobs
- Cheaper, inferior quality products long term
- Some opportunities for increased standard of living
- Need for fair trade agreements to product countries and locals
- Ethical concerns - corruption
Reasons why our current economic system may not be sustainable.
We cannot continue to consume goods at the current rate we are consuming them.
We cannot base an economic system on the consumption of goods.
Dependant on the consumption of non-renewable resources and our planet cannot sustain this.
Takes nature 1.3 years to replace what humans consume in a year and the population will increase.
Environmental damage, this affects the production of renewable resources.
Based on absolute inequity, small percentage of the population profit and majority of the population have no access to the consumable goods. Based on the haves and have nots.
Role and function of ‘World Trade Organisations’ (WTOs) – what things do they do?
Regulate trade between countries – increase trade and thereby employment.
Most of the world’s trading nations signed the set of rules and agreements that the WTO came up with to ensure that countries/Governments adhere to their agreements in relation to trade. (e.g. fair trade etc)
Settle trade disputes between TNCs and Governments and negotiate trade agreements.
Definition of consumerism.
System of economics based on the consumption of goods and services. Requires continual manufacturing and spending from consumers. Importing and exporting is part of this system. Dependant on the continual selling of advertised products.
Definition of the concept of free trade.
Nations/countries can trade with each other with minimal tariffs and barriers (quotas).
Opening up the market to sell to the highest bidder and make a maximum profit.
Free to trade with anyone and have no imposed limitations placed on you by Governments.
Understanding of the relationship between imports and exports.
If there is a greater amount of imports to exports then a trade deficit is created.
Need to establish a strong trade relationship with a country you wish to export to which means you will import their goods/services.
China takes our resources that we export and trades back products that we import.
Needs to be a balance between imports and exports, otherwise a country may fall into debt or economic recession.
What GDP stands for and what it indicates.
Gross Domestic Product (Produce) – total amount of goods and services produced in a country annually per capita.
It is an indicator of how wealthy a country is. Usually is relative to the countries resources…ability to grow food and produce. It also indicates the citizen’s standard of living – high or low.
What recent events in the world affected major economic changes?
9/11 Acts of terrorism that influenced the Stock Exchange and global markets.
Global Financial Crisis – began in America when the housing market collapsed and had a domino effect on world markets. Some major corporations ceased to exist.
Government conflict in the USA which has influenced the economy and consumer confidence.
Natural disasters – E.g. Japan and Earthquake.
Economic crisis in Greece, flow on influence to rest of Europe – all interdependent and under the Euro dollar.
Difference between developed, developing and emerging economies.
Strong economy founded on its own industries – developed.
Developing – dependant on handouts or support from other countries or organisations.
Emerging – working towards being a developed economy and is growing through a huge labour force or increasing industries.
Geography
Understanding of what Land Degradation is.
The loss of the land’s capacity to produce crops (grow anything), support natural vegetation or support livestock. May include soil erosion and loss of nutrients from what is left.
Understanding of the various processes that cause Land Degradation.
Wind and water. Human activities destroy the vegetation that stabilises the land, resulting in soil being taken away through water run-off and wind that blows the top soil away. Resulting in a loss of nutrients and increase in salinity (rising of the water table).
Pollution causes the destruction of vegetation and this further increases the problems.
Clearing of land for urban sprawl and industry.
Able to describe the SEVEN factors that influence Land Degradation.
1) Overgrazing – clearing of land
2) Introduced animals
3) Hooved animals – livestock
4) Introduced plants
5) Urban waste – pollution
6) Salinity in the soil
7) Urban sprawl
Understanding of the different types of soil erosion.
1) Sheet erosion
2) Rill erosion
3) Tunnel erosion
4) Gully erosion
5) Wind erosion
Understanding of the differences between Wetland and Dryland salinity.
WETLAND
Caused by over-irrigation which causes the water table to rise. The water table contains salt water which mixes with the fresh water and most plants are fresh water plants and will die. With no vegetation, the land becomes unstable.
DRYLAND
The removal of native vegetation and replacing with vegetation with shorter root systems that cannot draw water from the earth. Ultimately the soil loses nutrients and plants will not grow. The salinity in the soil will increase, as the top is eroded and the underlying soil has a higher salt content.
Being able to draw a small diagram for the process of wetland and dryland salinity.
Immigration
Philosophy of ‘populate or perish’ and how this philosophy evolved.
Year White Australia Policy was abolished.
Identify the various changes to Australia’s immigration policies and understand the social and political factors that changed things…(tip – list them first…cause and effect)
Remember TWO nationalities who immigrated to Australia and why they came…e.g. specific nationality and maybe a war???
Pros and cons of ‘Multiculturalism’
History
Prepare notes on ONE of two topics for an extended (Essay type) question…
1) Role of wars in being the cause and consequence of economic development, require specific examples from history.
Suggested structure of essay…
Introduction
Address and define the topic and establish the focus of your discussion
Preview what will be discussed throughout the essay
Prepare your reader for the discussion – create expectation
First paragraph
War being the cause of economic development (WW1)
What specific war(s) highlights this relationship?
What events in history emphasise war being the cause of economic development?
Are there any revolutions that produced a change in an economic system?
Second Paragraph
When has war been the consequence of economic development? (WW2)
What conflict has been the result of an attempt to produce economic development?
What are the best examples of war resulting from economic change?
Third Paragraph
Looking at more recent economic developments, how is war and economics related?
Are there any recent examples of the relationship between war and economics?
Are these examples cause or consequence?
Conclusion
Evaluate the relationship between war and economics.
Is it necessary? Is it part of economic development or protection?
What has history taught us about human societies and systems?
2) Display your knowledge of the differences between Communism and Capitalism (benefits and limitations of each) and refer to specific events in history that emphasise what you are saying and support your evaluation.
Introduction
Define the two concepts and outline the reasons they became significant or necessary.
Outline the oppositional qualities of each concept.
Prepare your reader for what you will discuss and why.
First Paragraph
Discussion about Communism
What are the benefits of this system? Why was it necessary?
What are some examples in history of this system?
Discuss Capitalism.
What are the benefits of this system? (In comparison, Capitalism…In contrast, Capitalism…)
What examples in history support what you are saying?
Second Paragraph
What are the limitations of Communism?
What emphasises problems or negative aspects? Best example from history.
What are the limitations if Capitalism in comparison?
What are the negative aspects of Capitalism in history?
Third Paragraph
Your own evaluation (based in historical events) about which is the preferable system.
Why concept is more sustainable long term?
What current examples of either system support what you are saying?
Conclusion
What are your final thoughts about these opposing systems?
Do you believe there is an alternative based on what history has shown us?
Is there merit in aspects of both?