WEEK 2
Consumers and Business
The Role of Business in the Economy
You will learn about:
Definition of a firm and an industry
A firm’s production decisions
• what to produce
• what quantities to produce
• how to produce
Business as a source of economic growth and increased productive capacity
Goals of the firm
• maximising profits
• maximising growth
• increasing market share
• meeting shareholder expectations
• satisficing
You will learn to:
Examine economic issues
Apply economic skills
Definition of a firm and an industry
A firm’s production decisions
• what to produce
• what quantities to produce
• how to produce
Business as a source of economic growth and increased productive capacity
Goals of the firm
• maximising profits
• maximising growth
• increasing market share
• meeting shareholder expectations
• satisficing
You will learn to:
Examine economic issues
- work in groups to investigate the factors leading to change in a particular industry
Apply economic skills
- explain the role of firms in solving the economic problem.
A Firm's Production Decisions
Can you investigate factors leading to change in a particular industry?
Read "Australian manufacturing has been in terminal decline but coronavirus might revive it" (By business reporter Rachel Pupazzoni, 23 July 2020). Click on the image, then answer the questions below.
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- What makes Australia different from most other developed nations?
- What has caused AML3D's production to increase? Is it likely to continue?
- How many Australians work in manufacturing? What is this as a percentage of the total workforce?
- Look at the "Manufacturing Self-Sufficiency, OECD Countries, 2015" interactive table. What is Australia's self-sufficiency ratio? What does this mean for our economy?
- How many people does a small to medium enterprise (SME) usually employ? How could these businesses create employment opportunities?
- What is the 'just-in-time economy'? Give an example of a product that operates in the just-in-time economy.
- "Dr Stanford said Australia was selling itself short by exporting minerals such as lithium, a mineral we are the largest producer of in the world, in its raw form." What alternative is he suggesting?
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Discuss the Federal Government's "Modern Manufacturing Strategy" (follow link to the 2021-22 Budget below) and its significance in addressing some of the problems identified in the first article.
Can you investigate factors leading to change in a particular industry?
What's a tariff and why are they a problem for Australia?
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How Australia's trade with China became a political weapon.
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Turn and talk:
What's the economic solution for Australia?
What's the political solution for Australia?
What's your prediction?
