Review Economic Problem +
PPF
Define economics, needs and wants - a social science studying the production,
distribution, and consumption of goods and services and (how economies work).
Define the types of resources such as land, labour, capital and enterprise
Land - a resource from nature
Labour - Human physical/mental effort producing.
Capital - goods used to create other goods (tools, stoves, etc.)
Enterprise - Combining these products to create a system of goods/services.
Explain the concept of economic problems and define opportunity cost.
Economic problem: There are limited resources for unlimited wants, therefore
choices must be made to conserve.
Opportunity cost: the opportunity one “gives up” to have the option that is
considered to be the most valuable.
Construct and interpret a Production Possibility Frontier (PPF)
Shift the PPF appropriately given changed conditions.
PPF Model
Review Economic Problem + PPF 1
, Unemployment
Work: Human effort that produces goods and services (employment refers to paid
work)
unemployed - someone wiling and able to work but cannot find a job
employed - a person who is currently working and has been paid for 1+ hrs in their
job.
not employed - people who are not actively looking for work and not available to
start work, (discouraged jobseekers/hidden unemployed).
labour force - all potential workers in Australia, includes employed and
unemployed.
underemployed - when someone is a part time/casual worker (less than
38hrs/week) but would like to work more
give the target and current rate for unemployment in Australia - Target: 4-4.5%
Current: 3.7%
reading and interpretation of the unemployment graph
describe the types of unemployment with examples -
Structural: occurs because of structural changes within the economy caused by
changes in technology or the pattern of demand demands.
if technology improves, many people lacking the skills necessary to remain
competitive in the labor market will be unable to find employment for many years
Cyclical: occurs with changes in economic activity over the business cycle
unemployment rate rising sharply with the early 1990s recession, declining to low
levels by the mid 2000s before rising again around the time of the global financial
crisis.
Frictional: represents the people who are temporarily unemployed as they change
jobs, they have finished one job and are yet to start another.
A BPH receptionist has just finished her contract and is looking for a more suitable
job with better working conditions.
Seasonal: occurs at predictable and regular times throughout the year because of
the seasonal nature of some kinds of work.
Review Economic Problem + PPF 2
PPF
Define economics, needs and wants - a social science studying the production,
distribution, and consumption of goods and services and (how economies work).
Define the types of resources such as land, labour, capital and enterprise
Land - a resource from nature
Labour - Human physical/mental effort producing.
Capital - goods used to create other goods (tools, stoves, etc.)
Enterprise - Combining these products to create a system of goods/services.
Explain the concept of economic problems and define opportunity cost.
Economic problem: There are limited resources for unlimited wants, therefore
choices must be made to conserve.
Opportunity cost: the opportunity one “gives up” to have the option that is
considered to be the most valuable.
Construct and interpret a Production Possibility Frontier (PPF)
Shift the PPF appropriately given changed conditions.
PPF Model
Review Economic Problem + PPF 1
, Unemployment
Work: Human effort that produces goods and services (employment refers to paid
work)
unemployed - someone wiling and able to work but cannot find a job
employed - a person who is currently working and has been paid for 1+ hrs in their
job.
not employed - people who are not actively looking for work and not available to
start work, (discouraged jobseekers/hidden unemployed).
labour force - all potential workers in Australia, includes employed and
unemployed.
underemployed - when someone is a part time/casual worker (less than
38hrs/week) but would like to work more
give the target and current rate for unemployment in Australia - Target: 4-4.5%
Current: 3.7%
reading and interpretation of the unemployment graph
describe the types of unemployment with examples -
Structural: occurs because of structural changes within the economy caused by
changes in technology or the pattern of demand demands.
if technology improves, many people lacking the skills necessary to remain
competitive in the labor market will be unable to find employment for many years
Cyclical: occurs with changes in economic activity over the business cycle
unemployment rate rising sharply with the early 1990s recession, declining to low
levels by the mid 2000s before rising again around the time of the global financial
crisis.
Frictional: represents the people who are temporarily unemployed as they change
jobs, they have finished one job and are yet to start another.
A BPH receptionist has just finished her contract and is looking for a more suitable
job with better working conditions.
Seasonal: occurs at predictable and regular times throughout the year because of
the seasonal nature of some kinds of work.
Review Economic Problem + PPF 2
