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 ..... ** ||  ||


 * Neilen B**


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


 * Max B**


 * **My Economic Problem** || Family wants to purchase a waterfront home in South East Queensland for holiday and rental use with storage for there boat. ||
 * **Scarcity** || Limited number of waterfront properties on the market. They are currently highly desireable and thus prices are extremely high. ||
 * **Opportunity Cost** || The oppurtunity cost of purchasing one home will be the more expensive/ cheaper properties available in the investigation. ||
 * **Circular Flow** || Fits into the savings aspect of the CFM as the client/ prospective buyer is looking to invest his money in an appreciating asset for possible rental revenue. ||
 * **Any others** || ... ||


 * Simon B**

the most benefits for the $29 cap he selects. || receives the most benefits for, the other two options he could have chose are the opportunity cost. || sector in exchange for goods and services, in this case it is the phone plan being received. ||
 * **My Economic Problem** || This high school student has $30 to spend per month on a phone cap which he thinks he receives
 * **Scarcity** ||  ||
 * **Opportunity Cost** || The opportunity cost in this situation is when this high school student has chosen the option which he thinks he
 * **Circular Flow** || This situation relates to the circular flow model as the house hold sectore is utilizing consumer expenditure towards the production
 * **Any others** ||  ||


 * A Cao**


 * **My Economic Problem** || The best option for a young family looking to buy their first home ||
 * **Scarcity** || There are only a limited amount of houses on the market and even less that will satisfy the majority of their wants of which are still within their price range. Cheap yet comfortable houses in good areas do not come very often and their may be large competition for them. ||
 * **Opportunity Cost** || In general, these aspects will usually not all be satisfied and as such, opportunity cost can be used to review the sacrifices ascociated with comfort and cost. Limited resources are being used to satisfy unlimited wants. ||
 * **Circular Flow** || The family (household sector) will not only need to save money (leakage into the financial sector) but also borrow vast amounts of money (injection by the financial sector) in order to make the purchase. Taxes will also be charged by government in the form of stamp duty and the services of professionals within the household sector may be employed to review the house before buying ||
 * **Any others** || CBA possibly, analyse which is the best money for value. ||


 * A Capell**


 * **My Economic Problem** || Best option for a man looking for which car to buy ||
 * **Scarcity** || Not all cars are relevant to the $60,000 price limit and the criteria ||
 * **Opportunity Cost** || Will have to decide which car to buy based on criteria and what will give him the greatest satisfaction. ||
 * **Circular Flow** || Household sector will inject E to the business sector. If it is a car produced overseas then the overseas sector will be affected in the form of M ||
 * **Any others** ||  ||


 * Nick C**


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


 * Ramesh C**


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


 * Alexander C**


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


 * Geoff D**


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


 * Alex H**


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


 * Alister H**


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


 * Jordan I**


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


 * Joseph K**


 * **My Economic Problem** ||  The choice between two different living options (house or apartment) for young people between the ages of 20 and 30. ||
 * **Scarcity** || There is a scarce market for housing at the time of writing, and this fact further emphasises why this problem is important, so that young people can find economicallhy viable housing options. ||
 * **Opportunity Cost** || The opportunity cost in this case is the housing option (apartment or house) that is foregone. ||
 * **Circular Flow** || The savings aspect of the Circular Flow Model relates to this problem, as it is affected directly by the choices these young people make in relation to housing options. ||
 * **Any others** ||  ||


 * Jordan L**


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


 * Ethan L**


 * **My Economic Problem** || What is the best powered ||
 * **Scarcity** || There are so many choices to ake and options for fishing, choosing the best option will satisfy his wants and needs. He may also have some money to spend on extras. ||
 * **Opportunity Cost** || You can't choose all things you want so therefore have to choose what is best for you and in this case, the best boat to buy. ||
 * **Circular Flow** || In the circular, the financial sector is being impacted because savings from Jimmy is being used and savings is a leakage in the circular flow model. ||
 * **Any others** ||  ||


 * Asa M**


 * **My Economic Problem** || What is the best prepaid credit card for an 18 year old person? ||
 * **Scarcity** || Some people may choose to buy limited edition items or items that are only sold in that particularly country so they will choose to pay a higher price and one way they can obtain the item is if they buy the item online. As limited edition or domestic market items are less produced therefore scarcity is involved in "My Economic Problem" ||
 * **Opportunity Cost** || Since the economic problem is "unlimited human needs and wants, in a world of limited resources", this also applies for this economic problem as the person* has a limited budget and cannot satisfy all his needs/wants therefore he must make a decision on which item he wishes to buy would give him/her the most satisfaction benefit or good. ||
 * **Circular Flow** || Because users of the prepaid credit card are buying goods online, this impacts the circular flow of income. When people( household sector) buy things anywhere, they are paying for G&S, the government and overseas sectors will also be affected as firstly the government sector normally charge a tax or equivalent on goods that are bought from the internet. The overseas sectors will be impacted the most because when people buy domestic or international, they are importing/exporting goods and services. ||
 * **Any others** ||  ||


 * James M**


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


 * Johnny P**


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


 * Patrick P**


 * **My Economic Problem** || Bruce is looking for a new aparment in the city because he believes it is convenient for his career job. ||
 * **Scarcity** || Scarcity relates to Bruce’s problem as he wants to live in the city. It is obvious that there is urban civilization in the city which indicates limited amount of area that is relatively close to the city. If a favorable demand supply occurs then results the price of property (around the city area) is increased. ||
 * **Opportunity Cost** || Opportunity cost is usually defined as the cost of a missed opportunity. So if Bruce has two options, if he decides to live in the city where it is close to work but the price of the rent is high or where he can live away from the city where the price of the rent is low but his work is further away. Therefore, if he lives in the city the opportunity cost is the extra amount of money he needs to pay for rent and if he lives away from the city, the opportunity cost is the time and money needed to get to his work. ||
 * **Circular Flow** ||  ||
 * **Any others** ||  ||


 * Max R**

sector, savings. ||
 * **My Economic Problem** || The best high interest online savings account for an 18 y.o. male to save $10 000 in. ||
 * **Scarcity** ||  ||
 * **Opportunity Cost** || The person can only save in one account so the opportunity cost is the account which has the next best rating which is foregone. ||
 * **Circular Flow** || As the person is taking money out of the circular flow and putting it into a bank account, this problem relates to the leakage from the finiancial
 * **Any others** ||  ||


 * Galton S**


 * **My Economic Problem** || Tim, a high school graduate looking for the best beachfront apartment in the Gold Coast for his schoolies. ||
 * **Scarcity** || Tim is only willing to spend $1,000 per night for rent. ||
 * **Opportunity Cost** || He can only choose one apartment. ||
 * **Circular Flow** || Because Tim is a tenant, he pays rent that will be injected back into the production sector which pays back the resources that they have used from the production sector. ||
 * **Any others** ||  ||


 * Phillip S**


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


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