2.++Economic+concepts+and+theories

= 2. Economic concepts and theories = **Your task** 1. Press edit above 2. Move your cursor below your name (scroll down) - only work in the area under your name 3. Use Ms Stevenson's exemplar as an example

**Miss Stevenson's exemplar:** (note you can not use my topic! Go to your task sheet for more topic examples.)


 * **My Economic problem**: || Grandma has $1000 to spend on a pedigree dog to provide companionship, exercise and security. ||
 * ** Scarcity: ** || Describe how scarcity applies to the above problem ||
 * ** Opportunity Cost: ** || Describe how opportunity cost applies to the above problem ||
 * ** Circular Flow: ** || Describe how CFM applies to the above problem eg which sectors are involved and which $ flows are involved ||
 * ** Any others ..... ** ||  ||


 * David A**


 * **My Economic Problem** || Choosing an electronic payment card, a credit, debit credit and debit card. ||
 * **Scarcity** || not very scarce at all, competition from companies means cheap prices. ||
 * **Opportunity Cost** || not having more money. ||
 * **Circular Flow** || ? ||
 * **Any others** ||  ||


 * Malcolm B**


 * **My Economic Problem** || What is the best mobile phone for a teenager with a limited budget. ||
 * **Scarcity** || Mobile phones are in abundance, so scarcity of the phones themselves is not a problem. There are a limited number of mobile phone networks offering monthly plans. ||
 * **Opportunity Cost** || If the teenager spends all or most of his savings on the mobile phone, he has nothing or very little left to spend on other needs or wants. If the teenager signs up to a costly monthly plan he will have limited extra income left over to purchase other things each month. He may need to look at ways to supplement his monthly income. For example, he may need to do more jobs around the house or get a better paying part time job. The teenager needs to look at the opportunity costs associated with each possible mobile phone (and associated monthly plan) purchase. ||
 * **Circular Flow** || Money will flow from the Household sector (the teenager's savings account and monthly income) into the Business sector (the mobile phone company) in the form of Consumption Expenditure. In turn the Buisness sector (the mobile phone company) would supply the Household sector (the teenager) with goods (the mobile phone) and services (access to the network to receive and make calls). ||
 * **Any others** ||  ||


 * Samuel B**


 * **My Economic Problem** || Student needs to decide which is more economically viable - A sharehouse, unit, or house. ||
 * **Scarcity** || Money is scarce (resource) but need must be satisfied (shelter). ||
 * **Opportunity Cost** || Foregoing the best alternative to Wayne's final decision. ||
 * **Circular Flow** || Househould Sector / Business Sector ||
 * **Any others** ||  ||


 * Nathan C**


 * **My Economic Problem** || New family needs to find out the best morgage for there new house and make an income of $60000 per annum ||
 * **Scarcity** || Money and cost of the morgage ||
 * **Opportunity Cost** || The morgage of the other option ||
 * **Circular Flow** || Leakages as savings ||
 * **Any others** ||  ||


 * Solomon C**


 * **My Economic Problem** || Write in your answers here and below ||
 * **Scarcity** ||  ||
 * **Opportunity Cost** ||  ||
 * **Circular Flow** ||  ||
 * **Any others** ||  ||


 * Jacky C**


 * **My Economic Problem** || A young adult has budget of approx. $20,000 to buy a new boat suitable for fishing, cruising and skiiing. ||
 * **Scarcity** || Limited scarcity, not in extreme high demand. ||
 * **Opportunity Cost** || Less money for other wants i.e. housing, cars etc. ||
 * **Circular Flow** || Housing sector-Consumer Expediture ||
 * **Any others** || Big investment, needs enough usuage to justify costs ||


 * Jack C**


 * **My Economic Problem** || Someone who has just left school looking for somwhere to live ||
 * **Scarcity** || Not enough units for everyone to get one. ||
 * **Opportunity Cost** || Would have to choose a bad unit in good area or a good unit in a bad area ||
 * **Circular Flow** || Financial sector ||
 * **Any others** ||  ||


 * Tom F**


 * **My Economic Problem** || Write in your answers here and below ||
 * **Scarcity** ||  ||
 * **Opportunity Cost** ||  ||
 * **Circular Flow** ||  ||
 * **Any others** ||  ||


 * Matt G**


 * **My Economic Problem** || New Family (i.e. new baby) looking to move from apartment to bigger home suitable for children ||
 * **Scarcity** || Money (only have $500 000 to spend) ||
 * **Opportunity Cost** || Being able to buy a new car, will have less money for future purchases ||
 * **Circular Flow** || Consumption expenditure; Household sector. ||
 * **Any others** ||  ||


 * Matthew H**


 * **My Economic Problem** || Write in your answers here and below ||
 * **Scarcity** || Money ||
 * **Opportunity Cost** || Money spent on accommodation forgoes the opportunity for other desired wants ||
 * **Circular Flow** || Household sector, Consumption Expenditure ||
 * **Any others** ||  ||


 * Dugie H**


 * **My Economic Problem** || Adult has decided to pick a superannuation scheme for himself, in order to have money for retirement. ||
 * **Scarcity** ||  ||
 * **Opportunity Cost** || Paying for the supperannuation scheme would forgo to oppurtunity to spend money on a new car ||
 * **Circular Flow** || The Financial Sector as 9% of the income earned is deposited into the superannuation fund. ||
 * **Any others** ||  ||


 * Abhay K**


 * **My Economic Problem** || Deciding between three different credit cards for someone in there early 20s ||
 * **Scarcity** || Credit Cards are in abudnce as there is no scarcity in credit cards ||
 * **Opportunity Cost** || Paying for the AZN Low Rate Credit Card would forgo to buying the HBSC Credit Card ||
 * **Circular Flow** || They are saving money which goes to the banks. As this a leakage it slows the economy. Also credit cards are using consumer expenditure which in return the business sector gives back goods and services ||
 * **Any others** ||  ||


 * Joshua K**


 * **My Economic Problem** || The Uni Student only has $35,000 and no more to spend on a new car ||
 * **Scarcity** ||  ||
 * **Opportunity Cost** || He would have to forgo the opportunity to place a deposit on his first home ||
 * **Circular Flow** || Households, Firms and possibly the Financial Sector are involved. Buying the car is a form of consumer expenditure flowing from Households to Firms; in exchange for Goods and Services (the car). He may need to borrow some money from the bank, which is a form of investment/ borrowing ||
 * **Any others** ||  ||


 * Shaun L**


 * **My Economic Problem** || The Uni student needs a cheap house/town house/apartment to rent that is close to UQ (st Lucia) ||
 * **Scarcity** || There are many houses/town houses/apartments for rent hence scarcity would not be a problem ||
 * **Opportunity Cost** || The opportunity cost would be the choice of rent a house, townhouse or a apartment ||
 * **Circular Flow** || The financial sector. ||
 * **Any others** ||  ||


 * Luke M**

other desired wants || this is consumption expenditure ||
 * **My Economic Problem** || What car insurance has the best policy for a new car driver? ||
 * **Scarcity** || The money available to spend on insurance after purchase of the car ||
 * **Opportunity Cost** || Money spent on insurance forgoes the opportunity for other companies and
 * **Circular Flow** || The money out into car insurance is savings, and also puts money into the firms sector, as
 * **Any others** ||  ||


 * Nick M**


 * **My Economic Problem** || Which historic car is best suited to racing on track? ||
 * **Scarcity** || Out of the cars researched their is limited supply of all of them and hard to get one in good condition. ||
 * **Opportunity Cost** || Buying a car for everyday on road purposes ||
 * **Circular Flow** ||  ||
 * || households, Firms and possibly the Financial Sector are involved. ||
 * Robert N**


 * **My Economic Problem** || A teenager who wants to play on a gaming console for personal entertainment. ||
 * **Scarcity** || There is limited supply but they are constantly shipping in new supplys. ||
 * **Opportunity Cost** || If you bought one console you could have bought one of the other two game consoles. ||
 * **Circular Flow** || goods and servies given to the firms from consumption expentiture. ||
 * **Any others** ||  ||


 * Rory O**


 * **My Economic Problem** || Uni student who has the choice to either stay at home or move into a share house. ||
 * **Scarcity** || only has enough money to afford a house with rent up to $180 per week ||
 * **Opportunity Cost** || could stay at home. ||
 * **Circular Flow** || house hold ||
 * **Any others** ||  ||


 * Ryan P**


 * **My Economic Problem** || A first home buyer looking for a home but can only afford a house between $200,000-$250.000 inclusive of land. ||
 * **Scarcity** || Houses in nicer areas are more expensive therefore there is scarcity with the amount of money that can be spent. ||
 * **Opportunity Cost** || A nice apartment is forgone when buying a house ||
 * **Circular Flow** || Goods and services for firms from getting builders and consumption expenditure ||
 * **Any others** ||  ||


 * Dylan P**


 * **My Economic Problem** || which stock out of a choice of three in a particular industry would be the choice for a young person? ||
 * **Scarcity** || Their are only a limited number of stocks ||
 * **Opportunity Cost** || the opportunity cost of buying one of the three possible stocks is the other two stocks ||
 * **Circular Flow** || This is in a effect in the finical sector as it is in the stock market ||
 * **Any others** ||  ||


 * Bassell T**


 * **My Economic Problem** || Which mobile phone would best suit this uni students situation ||
 * **Scarcity** || There arnt a variety of cheap options ||
 * **Opportunity Cost** || If the decision is made to buy a mobile phone that is around $40 a month, it would result in working an extra hour which effects his study time ||
 * **Circular Flow** || household sector is effected, consumer expenditure ||
 * **Any others** ||  ||


 * Nick T**


 * **My Economic Problem** || My uncle. Whether it is better given my uncle's needs to invest in one of three different company stocks. ||
 * **Scarcity** || Company stocks are readily available on the Australian Stock Exchange, so scarcity does not overly affect this problem. ||
 * **Opportunity Cost** || There is inevitably an opportunity cost in deciding to invest in one share instead of in another share. However, given the unpredictability of the share market it is difficult to know what the opportunity cost is when the investment is made. ||
 * **Circular Flow** || Buying the shares is a form of consumer expenditure from the household sector to the firms sector. Shares can also be taxed. ||
 * **Any others** ||  ||


 * Thomas W**


 * **My Economic Problem** || Write in your answers here and below ||
 * **Scarcity** ||  ||
 * **Opportunity Cost** ||  ||
 * **Circular Flow** ||  ||
 * **Any others** ||  ||


 * Richard W**


 * **My Economic Problem** || young man wanting to invest and make money on consumption stock ||
 * **Scarcity** ||  ||
 * **Opportunity Cost** || Only one share can be invested out of three shares ||
 * **Circular Flow** || if make more than $5000 the investor will have to pay tax, in made under $5000 no tax will be payed ||
 * **Any others** ||  ||


 * Josh Y**
 * **My Economic Problem** || Uni graduate with $86,000 salary, whether to rent or buy real estate. ||
 * **Scarcity** || scarcity of cheap houses, will impinge on his choice of buying ||
 * **Opportunity Cost** || may decide to rent, will satisfy his accommodation wants but his want for ownership will be left unsatisfied ||
 * **Circular Flow** || household sector is effected, consumer expenditure ||
 * **Any others** ||  ||