20602_AC_Economics_and_buisness_Year_6_Making_choices_about_resources

Australian Curriculum Economics and business (Year 6)
Written by Brenda Gurr
Published by R.I.C. Publications ® 2017
Copyright © R.I.C. Publications ® 2017
RIC–20602
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Foreword
Australian Curriculum Economics and business is a two-book series designed to complement the teaching of economics
and business in upper primary school.
Each section of the book relates to one of the key concepts for developing an understanding of the subject: making
choices about resources, effects of consumer and financial decisions, and business activities.
The concepts are investigated by considering the three inquiry questions: Why are there trade-offs associated with making
decisions? What are the possible effects of my consumer and financial choices? Why do businesses exist and what are the
different ways they provide goods and services?
Activities within each section link to the HASS Key ideas and develop skills identified in the Inquiry and skills strand of the
HASS curriculum.
The books in the series are:
Australian Curriculum Economics and business – Consumer behaviour and its effects Year 5
Australian Curriculum Economics and business – Financial and business decisions Year 6
Contents
Teachers notes.......................................................................iv–v
Differentiation strategies.........................................................vi
Additional activities...................................................................vii
Glossary.......................................................................................viii
HASS Key ideas chart...............................................................ix
HASS Inquiry and skills chart..................................................x
HASS Inquiry and skills with economics
and business chart....................................................................xi
HASS Concepts of interdisciplinary thinking chart........xii
Cross-curriculum links............................................................xiii
HASS Achievement standards chart.................................xiv
HASS Achievement standards student checklist...........xv
Part 1: Making choices about resources............2–23
Trade-offs and the cost of lost opportunities............. 2–9
Resource decisions........................................................10–15
Resource allocation on a national level..................16–20
Assessment 1........................................................................... 21
Assessment 2........................................................................... 22
Self-assessment...................................................................... 23
Part 2: Effects of consumer and
financial decisions ................................................. 24–47
Consumer decisions and the family........................24–29
Consumer decisions, communities and
business.............................................................................30–37
Consumer decisions and the environment..........38–44
Assessment 1...........................................................................45
Assessment 2...........................................................................46
Self-assessment...................................................................... 47
Part 3: Business activities ................................... 48–72
What is a business?........................................................48–53
Providing goods and services.....................................54–59
Primary, secondary and tertiary industries.............60–65
Not-for-profit organisations.........................................66–69
Assessment 1........................................................................... 70
Assessment 2........................................................................... 71
Self-assessment...................................................................... 72
Answers..................................................................... 73–76
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Teachers notes
The core of Australian Curriculum Economics and business – Financial and business decisions Year 6 is presented
in three sections, each covering one key concept as identified by a curriculum content description. The concepts are
investigated through one or more of the three Economics and business Key inquiry questions for Year 6.
Each section contains three or four units of work, with each unit of work comprising:
• one teacher information page
• one main text page
• between three and six student activity pages
• three assessment pages
• a pictorial icon at the head of each page identifying the key concept for developing an understanding of
Economics and business.
Teacher pages
Each page identifies the:
• Economics and business Knowledge and understanding content description
• HASS Key ideas
• HASS Inquiry and skills content descriptions
• Economics and business Key inquiry questions
• Economics and business concepts for developing understanding
• General capabilities
In addition, the page also explains how to introduce and use each student
page, suggesting introductory activities, extension and support ideas, and
concluding activities.
Main text pages
Each main text page provides appropriate
information on the topic in student-friendly language.
Student pages
Student pages contain information supplementing the main
text and/or activities based on the information provided in
the main text. All activities are written to meet the needs of
the Knowledge and understanding strand for Economics and
business, and to develop the skills of the Inquiry and skills
strand of the HASS curriculum.
iv
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Teachers notes
Assessment pages
Three assessment pages are provided in each section. The first two
offer a means to assess student knowledge and understanding of
the concepts covered in the section. The third provides a selfassessment
opportunity for students to communicate their opinion
on the development of their understanding of the work covered.
The front pages
The front pages of Australian Curriculum Economics and business –
Financial and business decisions Year 6 have two main functions:
• to support the delivery of the classroom activities, and
• to assist teachers in the recording and reporting of Economics and
business in curriculum coverage and in student achievement.
The front pages include:
• differentiation strategies for students who need support or extension
• additional activities related to each Key inquiry question to help develop the concepts of Economics and business
• a glossary of terms
• scope and sequence charts
The scope and sequence charts identify the individual pages which touch on the various aspects of the Economics
and business sub-strand of the HASS curriculum, and how the achievement standards of individual students can be
recorded. The charts include:
– HASS Key ideas with Economics and business illustrations
– HASS Inquiry and skills
– HASS Inquiry and skills linking specifically to the Economics and business sub-strand
– HASS Concepts of interdisciplinary thinking with the Economics and business illustrations covered
– cross-curriculum links
– HASS Achievement standards for Economics and business
– HASS Achievement standards student checklist
R.I.C. Publications ® www.ricpublications.com.au Australian Curriculum Economics and business (Year 6) v

Differentiation strategies
Many of the activities in this book are open-ended, requiring students to consider a variety of ideas and express their own
opinions. The activities are aimed at core level students. Some general ideas for adapting them for students who require
support or extension are as follows.
Students who require support
• Instead of students completing an activity
individually, they work with a partner of a similar or
higher ability to share their ideas.
• Students respond to a question orally rather than
writing the answer.
• Students listen to a class discussion about the
activity before attempting it.
• If the activity requires a group discussion, provide
it ahead of time so students can write down their
initial thoughts.
• For extended writing activities, break the task down
into smaller steps or allow students to write a briefer
version.
• Provide the glossary at the front of the book for
individual students to refer to as they complete
activities.
• For surveys or interviews, students practise their
questions beforehand on a peer.
• For activities or parts of texts that give specific ‘reallife’
scenarios, prepare more able students to act out
the situation as a role-play.
• For activities or text pages that require internet
research, students pair up with a more able student.
Students who require extension
• Students read out the information texts to the class
as a suitable character; e.g. a financial expert.
• Students peer tutor less able students when they
strike a problem completing an activity.
• Students lead class discussions on different topics.
• If the activity requires a group discussion, students
monitor the activity, making sure that everyone gets
a say and group members speak courteously to
each other.
• For extended writing activities, students use more
than one writing form to express their ideas; e.g.
instead of an exposition, they could try a narrative on
the same topic.
• Students add other relevant economics and
business terms to the glossary at the front of the
book.
• For surveys or interviews, challenge students to write
and pose their own additional questions.
• For activities or text pages that require internet
research, students discover websites outside the
suggested ones (being mindful of cybersafety) and
share them with the class, explaining why they are
useful.
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Additional activities
Why are there trade-offs associated with
making decisions?
• Collect and analyse articles from local
newspapers that involve situations concerning
trade-offs and opportunity cost.
• Write a narrative about a child who makes a
trade-off—with disastrous results!
• Devise a television interview between a
reporter and business owners, based on the
baby clothes business scenario on pages 8
and 9. Use props to enhance the interview.
• Plan and make a ‘decision wheel’ that would
help someone struggling to decide between
two alternatives.
• Interview parents and grandparents to find
out some common decisions and trade-offs
they made when they were children.
• Create your own trade-off/opportunity cost
scenarios, similar to those on page 13.
• Research to find out more about Thomas
King and any other young Australians who
have made a difference to the environment.
• Write a persuasive argument that explains
why companies should have to clearly label
the use of palm oil in their products.
• Research to learn more about how
communist countries like Cuba allocate
resources.
What are the possible effects of my consumer and
financial choices?
• Create a family budget based on your answers to the activity
on page 27.
• Think of an expensive product you have bought recently. Write
an exposition that defends your decision to buy it.
• Transform the role-play you devised on page 29 into a script.
• Take a trip to a local supermarket and list all the physical
features you think are in place to persuade consumers to
linger and/or buy particular products.
• Make a plan and model of a shop that you feel would
encourage consumers to stay and spend their money.
• Analyse different print advertisements. Identify their likely target
consumers and explain why you think they are or are not
effective.
• Visit an online bookstore, select a popular book and pretend
to buy it (without actually paying!). Now visit a local bookstore
and locate the same book. Compare the two experiences.
• Research to find out if other countries use a logo similar to the
AMAG logo.
• Conduct a survey to find out how often people in the school
community use reusable shopping bags. Think of some ways
to persuade people who don’t use them now to start using
them.
• Visit local cafes to find out if they offer a discount to people
who have reusable coffee cups. Make an advertisement that
informs people of this offer.
Why do businesses exist and what are the different ways they provide goods and services?
• Survey adults in the school community to find out if they run businesses. Graph the numbers of sole traders,
partnerships and companies and write about the results.
• Organise a whole-school market day (with teachers’ permission!), based on the activity on page 53. Help younger
students to select, make and price appropriate products.
• Visit a shopping centre and take notes about the look of the shopfronts, where particular shops are located and any
upcoming promotional events. Is there anything not available at this shopping centre that you feel should be?
• Make graphic organisers that show how specific primary, secondary and tertiary industries are connected.
• Investigate industrial estates online or in person. What businesses do they have? How might they help each other?
• View several charity websites to find out how they try to persuade people to make donations.
• Invite representatives from different charities to talk to your class. Devise your own interview questions.
• Research to find out the history of The Benevolent Society, Australia’s oldest charity. How has it changed over the past
200 years?
R.I.C. Publications ® www.ricpublications.com.au Australian Curriculum Economics and business (Year 6) vii

Glossary
Budget an estimate of income and a plan for spending it
over a given time
Business a commercial operation or company
Carbon offset a program that reduces the carbon
emissions of a business or other organisation
Capital resource something that produces goods and
services
Charity a not-for-profit organisation that helps those in
need
Community a group of people living or working in a
particular place or who have something particular in
common
Consumer people who purchase goods and services
Consumer goods the final products used by a consumer
Company a commercial organisation
Deforestation the clearing or cutting down of trees in a
large area
Demand in economics, the desire of consumers for a
product or service
Economics the branch of knowledge dealing with the
production, distribution, selling and purchasing of goods
and services
Economist someone who specialises in economics
Economy referring to the activities to do with producing,
distributing, selling and purchasing goods and services
Ethical relating to moral standards
For-profit a type of business that makes a profit and uses it
for any purpose it chooses
Financial related to money
Greenhouse gas a gas, such as carbon dioxide, that
contributes to the greenhouse effect
Human resource involves the work, skills and abilities of
people
Landfill a site used for the disposal of waste
Natural resource a resource found in nature
Need things that help us survive (basic needs) or that keep
us safe and healthy and feeling valued
Not-for-profit a type of organisation that uses its profits to
further the goals of the organisation
Opportunity cost the value of the next best alternative
when making a trade-off
Organisation a group of people who work towards a
shared purpose
Partnership business a business run by a group of people
who share ownership
Primary industry an industry involved with growing and
extracting raw materials from nature
Private business a business owned by a private owner
rather than a government
Processed in the case of food, one that has had a
deliberate change made to it before being made
available for eating
Producer goods goods that are used to make other goods
Product an object that is made to be sold
Quaternary industry an industry that provides information
services
Quinary industry an industry that provides services relating
to wellbeing and care
Ration A fixed amount of an item officially allowed to a
person
Recyclable able to be converted into a reusable item
Scarcity when a product or service is scarce (hard to find
or not easily available)
Secondary industry an industry involved with
manufacturing and construction
Service actions that people perform for consumers, such
as medical help or delivering mail
Sole trader business a type of business owned and run
by one person
Sustainably sourced products that have been selected
with serious consideration of environmental, social and
ethical factors
Sweatshop a factory where workers are paid low wages
and work in poor conditions
Tertiary industry an industry that provides services to
consumers and/or other businesses
Trade-off when you trade in or swap one thing to gain
another
Want something we would like to have
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HASS Key ideas
Key ideas
Who we are, who came
before us, and traditions
and values that have
shaped societies
How societies and economies operate and how
they are changing over time
The ways people,
places, ideas and
events are perceived
and connected
How people exercise their responsibilities,
participate in society and make informed
decisions
Economics
and
business
illustrations
Influences on consumer
and financial choices
The shifting
importance of
different sectors in the
Australian economy
How societies use
limited resources for
changing needs and
wants now and in the
future
Different ways that
entrepreneurs and
businesses succeed
How individuals and
businesses plan to
achieve short- and
long-term financial
objectives
The concept of
opportunity cost as
a means of making
informed decisions
about alternative uses
of resources
Part 1 – Making choices about resources
2–9 4, 5, 6, 7, 8 3, 4, 6, 8, 9 6, 8, 9 3, 4, 5, 6, 7, 8, 9
10–15 11, 12, 13, 14, 15 11, 12, 13, 14, 15 11, 12, 13, 14, 15
16–20 17, 18, 19 17, 18, 19, 20 17, 18, 20
21–22 Assessments
Part 2 – Effects of consumer and financial decisions
24–29 25, 26, 27, 28 25, 26 25, 26, 27, 28, 29 25, 26, 27
30–37
31, 32, 33, 34, 35, 36,
37
31, 32, 33 31, 33 33
38–44 39, 40, 42, 43, 44 39, 40, 42, 43, 44 44 41, 42, 43, 44
45–46 Assessments
Part 3 – Business activities
48–53 49, 50, 51, 52, 53 49, 50, 51, 52, 53 49, 50, 51, 52, 53
54–59 55, 56, 57 55, 56, 57 55, 56, 57 55, 56, 57
60–65 61, 62, 64 63 61, 62, 65
66–69
70–71 Assessments
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HASS Inquiry and skills
Questioning Researching Analysing Evaluating and reflecting Communicating
Develop appropriate questions
to guide an inquiry about people,
events, developments, places,
systems and challenges
(ACHASSI122)
Locate and collect relevant
information and data from primary
sources and secondary sources
(ACHASSI123)
Organise and represent data in a
range of formats including tables,
graphs and large- and small-scale
maps, using discipline-appropriate
conventions (ACHASSI124)
Sequence information about
people’s lives, events, developments
and phenomena using a variety
of methods including timelines
(ACHASSI125)
Examine primary sources and
secondary sources to determine their
origin and purpose (ACHASSI126)
Examine different viewpoints
on actions, events, issues and
phenomena in the past and
present (ACHASSI127)
Interpret data and information
displayed in a range of formats
to identify, describe and compare
distributions, patterns and trends, and
to infer relationships (ACHASSI128)
Evaluate evidence to draw
conclusions (ACHASSI129)
Work in groups to generate
responses to issues and
challenges (ACHASSI130)
Use criteria to make decisions and
judgements and consider advantages
and disadvantages of preferring one
decision over others (ACHASSI131)
Reflect on learning to propose
personal and/or collective action in
response to an issue or challenge,
and predict the probable effects
(ACHASSI132)
Present ideas, findings, viewpoints
and conclusions in a range of texts
and modes that incorporate source
materials, digital and non-digital
representations and disciplinespecific
terms and conventions
(ACHASSI133)
Part 1 – Making choices about resources
2–9 6 7 6 8, 9 8, 9 5 8, 9
10–15 14, 15 14, 15 14, 15
13, 14,
15
13 14, 15
16–20 19 20 20 20
21–22 Assessments
Part 2 – Effects of consumer and financial decisions
24–29 27, 28 28 28 29 29 29
30–37 34, 35 34, 35 33 33 34, 35
38–44 42, 43
41, 42,
43, 44
45–46 Assessments
41, 44 42, 43 41 42, 43 41 42, 43 41
Part 3 – Business activities
48–53 53 53 53
54–59 57 58 58 58 57
60–65 63 63 65 63 65 63
66–69 69 69 69
70–71 Assessments
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HASS Inquiry and skills with economics and business
HASS Questioning Researching Analysing
Evaluating and
reflecting
Communicating
Pose questions before, during and after
an inquiry about economic or business
issues or events
Develop questions that help identify
the concepts of economics and
business; e.g. consumer choices
Develop questions to guide the stages
of an inquiry about economics and
business, using organisers
Create questions appropriate to their
purpose; e.g. closed questions for
surveys, questions that are sensitive
to diverse viewpoints, questions that
consider ethical choices
Identify and collect information and/or
data using qualitative and quantitative
methods to explore economic and
business processes and phenomena
Record and represent economic and
business information and/or data in
appropriate forms
Apply relevant concepts of economics
and business when interpreting
information/evidence/data in an
inquiry
Identify and compare aspects
of economics and business as
represented in a range of sources,
including persuasive language, points
of view and perspectives
Apply relevant economics and business
concepts (for example, opportunity
cost) when proposing explanations,
evaluations and conclusions in an inquiry
Listen to, share with and engage
with others to generate responses to
economics and business challenges
Compose appropriate text types
(for example, report, memo, plan
budget, argument, explanation) to
convey findings, conclusions and
understandings from an economics
and business inquiry
Use accurate economics and business
terms and concepts
Economics
and
business
illustrations
Part 1 – Making choices about resources
2–9 7 6, 7 6 6, 7 6, 7 6, 7 6 8, 9 6, 8, 9
10 –15 14, 15
11, 13,
14, 15
14, 15 13, 14, 15 14, 15 14, 15 14, 15 14, 15 14, 15 13, 14, 15 14, 15
16–20 20 20 20 20 20
21–22 Assessments
Part 2 – Effects of consumer and financial decisions
24–29 28, 29 28, 29 28 28 28 29 29 29
30–37 34, 35
33, 34,
35
34, 35 34, 35
38–44 42, 43 42, 43 42, 43 41, 42, 43
33, 34, 35,
36, 37
41, 42, 43,
44
36, 37
42, 43
33, 34,
35
41, 42,
43
45–46 Assessments
48–53 53
Part 3 – Business activities
51, 52,
53
33, 36, 37 33 33 36, 37
42, 43 42, 43 41
12, 13, 14,
15
26, 27, 28,
29
33, 34, 35,
36, 37
41, 42, 43,
44
53 53 53 53 51, 52, 53 51, 52
54–59 57 58, 59 57 58, 59 57 57, 58, 59
60–65 63 63 63, 65 63 63, 65 64, 65 63 63 63 63, 64, 65
66–69 69 69 69 69 69 69 69 68, 69
70–71 Assessments
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HASS Concepts of interdisciplinary thinking
Concepts
of interdisciplinary
thinking
Significance Continuity and change Cause and effect
Place and
space
Interconnections
Roles,
rights and
responsibilities
Perspectives and action
The value of
information in making
consumer and financial
decisions
The variables which
influence people’s
consumer and financial
decisions
Economic challenges in
a changing world and
changing ways people
can respond
Influences on
consumer decisions,
the effects of
these decisions
on individuals, the
community and the
environment, and ways
alternative choices can
be evaluated
The distribution of
resources, services and
industries locally, in
Australia and beyond
How the provision of
goods and services
to satisfy consumers’
needs and wants
connects industries,
businesses and
workers, locally and
globally
The responsibility
consumers and
workers have for each
other
The ways different
groups, including
Aboriginal and
Torres Strait Islander
peoples, value and use
resources differently
The personal, social,
cultural and other
factors that influence
consumer choices of
individuals and groups
Economics
and business
illustrations
2–9 3, 4, 7 3, 4, 5, 6, 8, 9 3, 4, 7
10–15 14, 15
11, 12, 13,
14, 15
Part 1 – Making choices about resources
14, 15 11, 12, 14, 15 11, 12 11 11, 12
11, 12, 13, 14,
15
3, 4, 5, 7,
8, 9
11, 12, 13,
14, 15
16–20 17, 18 17, 18, 20 17, 18, 20 17, 18, 20 17, 18, 19 17, 18, 20 17, 18, 20
21–22 Assessments
24–29 25, 26, 28
30–37
38–44
31, 32, 33,
36, 37
39, 40, 41,
42, 43, 44
25, 26, 27,
28, 29
31, 32, 33,
34, 35, 36,
37
39, 40, 41,
42, 43, 44
25, 26, 27,
28, 29
33, 34, 35
Part 2 – Effects of consumer and financial decisions
25, 26, 27, 28, 29 25, 26, 29
31, 32, 33, 34, 35,
36, 37
33
33, 34, 35, 36,
37
25, 26, 27,
28, 29
31, 32, 33,
34, 35, 36,
37
44 39, 40, 41, 42, 43, 44 44 44 41, 44 41, 44
45–46 Assessments
Part 3 – Business activities
48–53 51, 52 51, 52, 53 53 49, 50 49, 50
54–59 55, 56 55, 56, 57 55, 56, 57 55, 56, 57, 58, 59
55, 56, 57,
58, 59
55, 56, 57, 58, 59 55 58, 59
60–65 61, 62, 64 61, 62, 64, 67, 68 61, 62
55, 56, 57,
58, 59
66–69 67, 68 67, 68 67, 68, 69 67, 68, 69 67, 68, 69
70–71 Assessments
xii
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Cross-curriculum links
HASS English Mathematics
The contribution of individuals and groups to
the development of Australian society since
Federation (ACHASSK137)
Differences in the economic, demographic and
social characteristics of countries across the
world (ACHASSK139)
Compare texts including media texts that
represent ideas and events in different
ways, explaining the effects of the different
approaches (ACELY1708)
Participate in and contribute to discussions,
clarifying and interrogating ideas, developing
and supporting arguments, sharing and
evaluating information, experiences and
opinions (ACELY1709)
Plan, rehearse and deliver presentations,
selecting and sequencing appropriate content
and multimodal elements for defined
audiences and purposes, making appropriate
choices for modality and emphasis
(ACELY1710)
Select, navigate and read texts for a range of
purposes, applying appropriate text processing
strategies and interpreting structural features, for
example table of contents, glossary, chapters,
headings and subheadings (ACELY1712)
Use comprehension strategies to interpret
and analyse information and ideas, comparing
content from a variety of textual sources
including media and digital texts (ACELY1713)
Plan, draft and publish imaginative,
informative and persuasive texts, choosing
and experimenting with text structures,
language features, images and digital resources
appropriate to purpose and audience
(ACELY1714)
Develop a handwriting style that is legible,
fluent and automatic and varies according to
audience and purpose (ACELY1716)
Use interaction skills, varying conventions of
spoken interactions such as voice volume,
tone, pitch and pace, according to group size,
formality of interaction and needs and
expertise of the audience (ACELY1816)
Select and apply efficient mental and written
strategies and appropriate digital technologies
to solve problems involving all four operations
with whole numbers (ACMNA123)
Interpret secondary data presented in
digital media and elsewhere (ACMSP148)
Part 1 – Making choices about resources
2–9 8, 9 7 6
10–15 14, 15 14, 15 14, 15
16–20 17, 18 20
21–22 Assessments
Part 2 – Effects of consumer and financial decisions
24–29 29 28
30–37 33 33 33 36, 37 35
38–44 42, 43 44 41 41
45–46 Assessments
Part 3 – Business activities
48–53 53
54–59 58, 59
60–65 63 65 64
66–69 69
70–71 Assessments
R.I.C. Publications ® www.ricpublications.com.au Australian Curriculum Economics and business (Year 6) xiii

HASS Achievement standards
Knowledge and understanding Inquiry and skills
Economics and business
Achievement standards
Recognise why choices
about the allocation of
resources involve
trade-offs
Explain why it is
important to be informed
when making consumer
and financial decisions
Identify the purpose of
business and recognise
the different ways that
businesses choose
to provide goods and
services
Explain different views
on how to respond to an
issue or challenge
Develop questions to
frame an investigation
Locate and collect data
and information from
primary and secondary
sources
Interpret data to
identify and describe
distributions, simple
patterns and trends, and
to infer relationships,
and suggest conclusions
based on evidence
Work with others to
generate alternative
responses to an issue or
challenge and reflect on
their learning to propose
action, describing the
possible effects of their
proposed action
Present their ideas,
findings, viewpoints and
conclusions in a range
of communication forms
using discipline-specific
terms and appropriate
conventions
Part 1 – Making choices about resources
2–9
10–15
3, 4, 5, 6, 7,
8, 9
11, 12, 13,
14, 15
7, 8, 9 6 6, 7 8, 9 8, 9 8, 9
14, 15 13, 14, 15 14, 15 14, 15 13, 14, 15 13, 14, 15
16–20 17, 18, 20 19 20
21–22 Assessments
Part 2 – Effects of consumer and financial decisions
24–29
30–37
38–44
25, 26, 27,
28
39, 40, 41,
42, 43
31, 32, 33,
34, 35, 36,
37
41, 42, 43,
44
25, 26, 29 28 28 29 28, 29
31, 32, 34, 35 33 34, 35
44 42, 43
33, 34, 35,
36, 37
41, 42, 43,
44
45–46 Assessments
33, 34, 35 33 36, 37
42, 43 42, 43
Part 3 – Business activities
48–53 49, 50, 53 53 53 51, 52, 53
54–59
55, 56, 57, 58,
59
57 58, 59 58, 59
60–65 61, 62 63 63 63, 64, 65 64, 65 63 63
66–69 67, 68, 69 69 69 69
70–71 Assessments
xiv
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HASS Achievement standards student checklist
Name
Recognises why choices about the
allocation of resources involve trade-offs
Explains why it is important to be
informed when making consumer and
financial decisions
Identifies the purpose of business
and recognises the different ways that
businesses choose to provide goods
and services
Develops appropriate questions
to frame an investigation about an
economics issue, challenge or event
Locates and collects useful data
and information from primary and
secondary sources
Examines sources to determine their
origin and purpose and evaluates
evidence to draw conclusions
Interprets, organises and represents
data in a range of formats using
appropriate conventions
Generates alternative responses to
an issue or challenge and identifies
the advantages and disadvantages of
preferring one decision over others
Reflects on their learning to propose
action in response to a challenge and
identifies the possible effects of their
decision
Applies economics and business
knowledge and skills to familiar
problems
Presents ideas, findings, viewpoints
and conclusions in a range of
communication forms that incorporate
source materials and economics and
business terms
R.I.C. Publications ® www.ricpublications.com.au Australian Curriculum Economics and business (Year 6) xv

Trade-offs and the cost of lost opportunities
How the concept of opportunity cost involves choices about the alternative
use of resources and the need to consider trade-offs (ACHASSK149)
Key idea
Who we are, who came before us, and traditions and values that have shaped societies
Inquiry and skills
Questioning, Researching, Analysing, Evaluating and reflecting, Communicating
Economics and business Key inquiry question
Why are there trade-offs associated with making decisions?
Economics and business concepts for developing understanding
Resource allocation and making choices; The business environment; Consumer and financial literacy
General capabilities
Literacy, Numeracy, Critical and creative thinking, ICT capability, Personal and social capability
Using these pages in the classroom
Page 3
• Read the text as a class and ask students to volunteer some
examples where opportunity cost and trade-offs have affected
them. These should be similar to the Scouts/soccer training
example given in the text. Students consider situations
concerning their favourite past-times or after-school activities,
as well as spending money. Thinking about such examples will
help them when they come to complete page 5.
Page 4
• Students complete questions 1 and 2 independently, then
share their answers to question 2. Some students may be
confused by the concept of opportunity cost and may have
circled the answer that indicates the cost of the earrings/
lunch instead of the value of these things to the person. Use
this opportunity to help them draw a difference between
opportunity cost and cost.
• Before completing questions 3 and 4, remind students of the
class discussion that took place about personal opportunity
cost/trade-off situations.
Page 5
• This activity will require some preparation. Any type of tickets
may be used for the activity (such as raffle tickets). There
should be enough tickets for 20 per student. You will need to
supply 10 tickets at the beginning of week 1 and 10 tickets at
the beginning of week 2. Next, make a simple chart showing
small rewards students can redeem. It could be for items
like stickers, privileges like going out to lunch five minutes
early or activities like extra computer time. These could be
general rewards that the whole class can collect or could be
individualised if catering for students with special needs. Make
sure there are some rewards that are worth a large amount of
tickets (more than 10).
• During the two weeks, comment often on students’ choices
as they make them. Ask them what trade-offs they are making
and how many tickets they have left. They will also need to
keep their own record for question 1. When the two weeks
have finished, discuss the experience before students answer
question 2 individually.
Page 6
• For students to complete this activity, it would be useful to
organise for parents or other members in the community
who are business owners to come to the classroom for the
interviews. A note could be distributed, explaining the types of
questions that students will be asking. When you have some
volunteers, talk to the students about the businesses that will
be represented and brainstorm ideas for possible additional
interview questions. Each student can then choose the person
they wish to interview and devise their additional interview
question. The actual interviews should be done in small groups,
with students taking turns to ask questions.
Page 7
• Students will require access to the internet for this activity.
Alternatively, the information could be printed or displayed on
an interactive whiteboard. In pairs, students skim the article
for the correct information and then express their opinions for
questions 4 and 5 after discussing possibilities with each other.
Pages 8 and 9
• Introduce this small group activity by brainstorming some
human, natural and capital resources that a retail business
might need to consider. Talk about some possible problems
that each of these could present and how they might be solved.
• Before groups begin the activity, read through each situation as
a class. It might be helpful for students to talk about possible
answers to the first situation to help them understand how to
complete the remainder of the page. Emphasise that there are
no right or wrong answers but that each situation should be
considered carefully.
2
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Trade-offs and the cost of lost opportunities – 1
What are your favourite things to do? Maybe
you like to play football or attend dancing
lessons. Perhaps you are an avid reader or
you just like chatting on the phone.
The moment you choose any of these
things, you are making a decision about how
to spend your time. You are giving up one
thing so you can do something else. For
example, if you decide to chat on the phone,
you might be giving up the opportunity to
finish your homework. (No-one said that an
alternative had to be something fun!) Most
decisions we make involve trade-offs. A
trade-off is made when you trade in or swap
one thing to gain another. This can have
positive or negative results. In the example
above, trading off the opportunity to do your
homework might result in a poorer mark in
your school report.
There may be many alternatives to
something you choose, but there is always
one ‘next best’ alternative. In economics, the
value of the next best alternative is called
opportunity cost. In other words, in making
choices and trade-offs, you are paying the
cost of a lost opportunity.
To give another example, let’s say you are
keen to start two activities—Scouts and
soccer training. But to your dismay, they are
held on the same night in your local area.
You must choose one or the other, so you
have to make a trade-off. You decide to
choose Scouts. The opportunity cost is the
enjoyment and value you might have had
from the soccer training—and perhaps even
the chance to try out for a community soccer
team. Of course, choosing Scouts will have
advantages too—you might make a good
friend or learn outdoor skills.
choosing between alternatives. It is important
to remember that when you buy something,
the opportunity cost is the value of the next
best alternative—not the cost of the product.
For example, if you choose to spend $5 on
a pie rather than a sandwich for lunch, the
opportunity cost is the enjoyment of eating
the sandwich (not the $5). For a business
owner who decides to purchase pianos over
electronic keyboards for his music school,
the opportunity cost is the technology the
keyboards could have offered, not their price
tag.
Opportunity cost in business relates to
decisions made about human, capital
and natural resources. For example, if a
department store decides to employ younger
sales assistants over older sales assistants,
the opportunity cost is the experience and
knowledge of the older staff. If a construction
company decides to buy its equipment
rather than rent it, the opportunity cost is the
chance to use new and reliable equipment.
If a carpet cleaning business decides to use
chemical-based products rather than natural
ones, the opportunity cost could be water
pollution.
The most important thing to remember
is that every choice people make as
consumers and business owners has an
opportunity cost—and these can have a great
impact on our lives.
The concept of opportunity cost can also
be seen at work in business settings, for
both consumers and business owners. As
a consumer, you must constantly decide
how to spend your money, which means
R.I.C. Publications ® www.ricpublications.com.au Australian Curriculum Economics and business (Year 6) 3

Trade-offs and the cost of lost opportunities – 2
Read the text on page 3 and complete the activities below.
1. Explain what it means to make a trade-off.
2. Circle the correct answer.
(a) Hannah decides to buy a pair of $50 earrings instead of a $50 necklace.
The opportunity cost is:
$50 the enjoyment of wearing the necklace the earrings
(b) James decides to play basketball instead of eating his lunch. The opportunity cost is:
a basketball the cost of the lunch the energy the lunch would have given him
3. All of us make personal trade-offs and create opportunity costs every day when we make
decisions about how to spend our time. In the space below, describe three examples of
situations you have been in during the past week where you made trade-offs and created
opportunity costs.
I made a trade-off when
I decided to …
instead of …
The opportunity cost was …
4. Describe a time when you made a decision resulting in an opportunity cost you later regretted.
It might have involved a choice to do something fun rather than something you ought to have
done. Explain who or what it affected.
4
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Trade-offs and the cost of lost opportunities – 3
Imagine that one day your teacher suddenly announces that he or she is starting a new reward
system in your classroom. Well, that day is here!
You will be given 20 tickets to spend over two weeks on various rewards your teacher decides on. This
might include actual items like stickers or time to do special things like using the classroom computer
or reading your favourite book. Your teacher will tell you how many tickets each item or activity will
cost. You could spend all your tickets in one day or you could save them for something you really want
or wish to do. It is up to you! Think carefully about the trade-offs you are making. For example, ‘If I
spend five tickets on stickers, I won’t be able to spend as much time on the computer’.
1. Keep a record in the space below of your ticket spending over the two weeks.
Week one
Week two
Mon
Tue
Wed
Thur
Fri
Mon
Tue
Wed
Thur
Fri
Chosen item or activity
Number of
tickets spent
2. Use your table to answer the questions below.
• Describe two trade-offs you made.
• Describe two trade-offs you wish you had made.
• Were you more of a spender or a saver during the two weeks? spender saver
• What are the advantages of saving? Is it always better to save? Write your thoughts.
• How do you think making trade-offs can help us to be smart consumers?
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Trade-offs and the cost of lost opportunities – 4
Choose a business that operates in your local area. Interview the
business owner about his or her trade-offs and opportunity costs in
the past, present and future. Use the questions below to begin your
interview, then add one of your own.
EDDIE’S
ELECTRICAL
Name of interviewee:
Name of business:
Type of business:
Past
1. What were some trade-offs you had to make when you first set up your business? Do you regret
making any of them?
Present
2. Please give two examples of opportunity costs that resulted from recent decisions you made
about the resources you use in your business.
Decision Type of resource Opportunity cost
Example 2
Example 1
Future
3. My question:
Interviewee’s answer:
Remember to thank your interviewee for their time!
6
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Trade-offs and the cost of lost opportunities – 5
Sometimes, companies make decisions about their products that end
in disaster! In 2016, snack food company Arnott’s ® decided to try to
improve the recipes of some of their biscuits. Unfortunately, the original
biscuits were so well-loved that consumers got very angry by the ‘new and
improved’ recipes. Many took to social media to complain and consumers
stopped buying the new range. Read the news story at and answer the following questions.
1. What trade-off did Arnott’s ® make when it decided to change the biscuit recipes?
It gave up for .
2. What was the opportunity cost of making this decision?
3. According to the newspaper article, what did the consumer backlash cause Arnott’s ® to do?
4. Do you feel this was a wise decision? Explain why/why not.
5. The spokesperson for Arnott’s ® said that the recipe change was not a mistake, but a sales
opportunity. Do you agree with this statement? Give reasons, thinking about the opportunity cost
that Arnott’s ® incurred.
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Trade-offs and the cost of lost opportunities – 6
Find a small group to work with. Imagine you are setting up a business that sells baby clothes. You
need to make decisions about the human, capital and natural resources you will use to run the
business. Read about each of the problems below, then discuss them and write the solution you think
is best. Remember to consider the opportunity cost (the value of the next best alternative) of each
decision you make.
Human resources
• The first decision you need to make is about your sales assistants. You need to decide whether to
employ less experienced sales assistants or more experienced sales assistants. If you employ less
experienced staff, you can pay them lower wages but you will need to spend time and money
training them.
Our ideas
Our decision
The opportunity cost is …
• Now you need to decide whether to employ an interior designer to create an inviting and fun
space for shoppers. This will include artwork for the walls, floor coverings and furnishings. Of
course, you could choose these things yourself, which would save you paying a designer, but if
you get it wrong, you might attract fewer customers.
Our ideas
Our decision
The opportunity cost is …
Natural resources
• You need to decide what types of wrapping and bags you will supply to customers. Your choice is
to supply plastic bags or recyclable cloth bags. Plastic is cheaper but worse for the environment.
Our ideas
Our decision
The opportunity cost is …
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Trade-offs and the cost of lost opportunities – 7
• You have the option to purchase solar panels for the roof of your shop to provide clean, low-cost
electricity. However, the set-up for this is expensive and will take you approximately two years to
recover the cost.
Our ideas
Our decision
The opportunity cost is …
Capital resources
• You need to decide whether you want the clothing to
be made with organic, natural fibres like bamboo (more
gentle for a baby’s skin) or whether you want it made from
unnatural fibres like nylon. If you choose the natural fibres,
the range of colours will be dull rather than bright and the
choice of clothing will be limited.
Our ideas
Our decision
The opportunity cost is …
• One more decision to make! Do you purchase special computer software to keep track of your
stock and the money you make each day, or do you rely on your staff and old-fashioned counting
to do this job?
Our ideas
Our decision
The opportunity cost is …
R.I.C. Publications ® www.ricpublications.com.au Australian Curriculum Economics and business (Year 6) 9

Resource decisions
How the concept of opportunity cost involves choices about the alternative
use of resources and the need to consider trade-offs (ACHASSK149)
Key idea
Who we are, who came before us, and traditions and values that have shaped societies
Inquiry and skills
Questioning, Researching, Analysing, Evaluating and reflecting, Communicating
Economics and business Key inquiry question
Why are there trade-offs associated with making decisions?
Economics and business concepts for developing understanding
Resource allocation and making choices; The business environment; Consumer and financial literacy
General capabilities
Literacy, ICT capability, Critical and creative thinking, Personal and social capability, Ethical understanding
Using these pages in the classroom
Page 12
• Read the text on page 11 as a class and talk about the
final question. Recent newspaper articles about the
allocation of limited resources could be shared to help
enhance understanding of this concept.
• Students complete the first two questions on page 12
independently. Questions 3 and 4 could be completed in
pairs to allow for discussion of the possibilities inherent in
each situation.
Page 13
• Introduce this activity by reading each scenario aloud to
the class and making sure the students fully comprehend
each one. Explain there are no right or wrong answers
and all opinions should be valued.
• Groups spend 10 minutes discussing each scenario. One
member of each group should be appointed as a scribe
and can share the answers with the class. Depending on
the ability of the class, groups could work on and then
share one scenario at a time. This would also give groups
that require support the chance to better understand the
scope and purpose of the activity.
Pages 14 and 15
• Students will require access to the internet to complete
this inquiry-based activity, which could be completed
over several days. Instruct them to read through each
step in the inquiry carefully and complete each one
before moving to the next step. The activity will be more
successful if a time limit is set for each step.
• Before completing step 3, students could listen to some
radio commercials that promote environmental or notfor-profit
organisations to provide them with ideas for
their own commercials. Sound effects and music are
optional, depending on time constraints. If they are to
be included, students could consider creating their own
sounds and music that enhances the message and feel
of their commercial.
• Step 5 should be completed by the students individually,
before discussing answers as a class.
10
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Resource decisions – 1
Every day, consumers make decisions and trade-offs concerned with fulfilling their needs and
wants. Economists would say while consumers’ needs can be satisfied, their wants are unlimited.
In other words, we are never completely satisfied with what we have (not for long, anyway!). The
problem is that while our wants are unlimited, the resources we use to fulfil them are not. When
you think of the word resource, you might think of things you can see and touch. These might
include natural resources such as land, water and minerals, capital resources such as machinery,
tools and buildings, and human resources (the work, skills and abilities of people). But resources
can also refer to other things we use to achieve or acquire something. For example, when you
need to make a decision about whether to spend 30 minutes playing with your dog or doing
music practice, the resource in question is your time. Other examples of resources that we use
every day are money and information.
How can we make good decisions about how to use or spend resources? You might consider:
• deciding on priorities
for example, ‘I have decided to spend an hour helping out at my school’s cake stall rather than
going to the movies because extra help is needed’.
• considering the opportunity cost
for example, ‘If I buy this book, I won’t have enough money to buy that toy’.
• identifying what can be satisfied with resources already available
for example, ‘Instead of buying a new bike, I could fix up my old bike for half the money’.
These basic methods of making personal choices about using limited resources are also used by
businesses and organisations, including governments. In this case, the consequences of using
limited resources can be far-reaching and grave. For example:
• A local council needs to decide whether it should allow a bigchain
supermarket to be built. The new supermarket could create
new jobs for townspeople but the trade-off is that building the
supermarket means destroying native bushland. This could be a
habitat for wildlife or be of special significance to different groups
of people.
• A state government department needs to decide whether to use a
sum of money to improve either an aged-care facility or a hospital.
The decision could have serious consequences for the people who
miss out on the funding, such as residents, patients and staff.
Allocating and using limited resources at a business or government level involves many difficult
trade-offs—and these can evoke passionate responses from the community. Perhaps you can
think of some examples you have seen in the news.
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Resource decisions – 2
Read the text on page 11 and answer the questions.
1. What would an economist say is the problem with trying to fulfil our wants?
2. Write your own definition of the word ‘resource’. Give examples of four different types of resources.
3. For each situation below, write the resource in question and some examples of priorities,
opportunity costs and already available resources you think need to be considered to make a
good decision. An example has been done for you.
(a) Matthew is trying to decide whether he should buy a shirt. His two choices are a cheap
green t-shirt or a more expensive red one. If he buys the expensive shirt, he won’t have
enough money to buy his lunch.
Resource: Money
What needs to be considered:
He needs to decide how much he needs to eat lunch, what sort of occasions he needs
the shirt for and
(b) Jenna needs to decide whether to go to a party or to soccer coaching for two hours on a
Saturday afternoon. She would prefer to go to the party but knows her team needs her.
Resource:
What needs to be considered:
(c) James is trying to decide whether to employ a new worker for his business or increase the
hours of the worker he already has.
Resource:
What needs to be considered:
4. Explain some serious consequences that could arise from a government deciding to allow a new
airport runway to be built on land that currently contains housing.
12
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Resource decisions – 3
Find a small group to work with. Discuss each scenario about spending or using resources. Write your
ideas about each scenario, considering priorities, opportunity cost and already available resources. Try
to come up with a solution for each one.
• A primary school choir has entered a contest. The contest is being held two hours away from the
school. The school cannot afford to hire a bus and the principal needs to decide whether the
students should catch a train with the music teacher (the train station is within walking distance of
both locations) or whether he should ask the parents of choir members to drive students to the
contest. Any parent would have to pay the cost of driving to the contest location. However, the
train fare would require a small cost to the choir members. The students would also need to stay
longer than they need to at the contest as the trains don’t run regularly. If you were the principal,
would what you do?
• A new rock band is excited to have been asked to play their first gig
at a restaurant. While their instruments are quite good, they feel that
they would have a better sound with an electric guitar—and these are
expensive to buy new. They also would like new sound equipment.
Although this is not necessary for the small restaurant, it would be
useful to have if they are asked to play gigs at bigger venues in the
future. They cannot afford to buy both a new electric guitar and the
new sound equipment. If you were in the band, what would you do?
• A local council has received several complaints from residents about the lack of a footpath and
a crosswalk on the main road in town. The residents believe it is dangerous for pedestrians,
particularly the many schoolchildren who use it every day. They tell the council that it is an
accident waiting to happen. The council are unsure what to do. It had just decided to spend the
money it would need to create a footpath on fixing the road itself, which has several potholes and
is annoying for motorists. There will be no more money available for six months. What should the
council do?
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Resource decisions – 4
Palm oil is an ingredient of many products used every day by consumers.
Unfortunately, the palm oil industry causes many devastating environmental
issues. But although this is well known, many businesses still make the decision
to use palm oil in their products. They believe that using palm oil is worth the
trade-off. Australian man Thomas King disagrees and has been doing something
about it since 2010, when he was just 13 years old.
To find out more about this situation, follow the steps to investigate the questions
below with a small group.
Why do businesses continue to use palm oil? Is it worth the trade-off? If not, is there anything I
could do as a consumer to change the situation?
1. Research
Look at the Thomas King’s website and read the sections
‘What’s the issue?’, ‘What can I do?’ and ‘About us’. In note form, write facts about the impact of
using palm oil, what consumers can do and which big businesses use palm oil.
Impact of palm oil
What consumers
can do
Big businesses who
use palm oil
2. Discuss
Discuss your research findings in your group and write your opinions about the palm oil situation.
14
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Resource decisions – 5
3. Create a radio commercial
In your group, create a 30-second radio commercial that
informs consumers about palm oil and asks them if they are
prepared to make the trade-off to use their favourite products.
Plan your commercial in the space below. You can use sound
effects and music as well as voices if you wish. Think carefully
about how you will make dramatic impact.
Words
Sound effects
4. Perform
Perform your commercial for the class and watch those created by other groups.
5. Reflect
After you have performed your commercial and watched those of others, answer the questions
below on your own.
(a) If you were a big business, would you continue to use palm oil? Why/why not?
(b) What do you think are the most devastating trade-offs created by the decision to use palm
oil?
(c) Has this inquiry made you want to change your behaviour as a consumer? Give reasons.
R.I.C. Publications ® www.ricpublications.com.au Australian Curriculum Economics and business (Year 6) 15

Resource allocation on a national level
How the concept of opportunity cost involves choices about the alternative
use of resources and the need to consider trade-offs (ACHASSK149)
Key idea
Who we are, who came before us, and traditions and values that have shaped societies
Inquiry and skills
Questioning, Analysing, Evaluating and reflecting, Communicating
Economics and business Key inquiry question
Why are there trade-offs associated with making decisions?
Economics and business concepts for developing understanding
Resource allocation and making choices; The business environment; Consumer and financial literacy
General capabilities
Literacy, ICT capability, Critical and creative thinking, Personal and social capability, Ethical understanding
Using these pages in the classroom
Page 17
• Students read the text individually. Because there are
some complex ideas in this text, students should write
down any questions they might have as they read, which
can then be clarified in a class discussion.
Page 18
• Students complete questions 1–3 individually, as they
only require information retrieval. Questions 4 and 5
require deeper thinking skills and should be discussed as
a class first.
Page 19
• Students will require access to the internet for this activity.
The activity could be completed in pairs, with one student
acting as scribe. Before they begin the activity, make a
list of the different government departments we have
in Australia. A list can be found at .
Talk about the types of
resource allocation these government departments might
be responsible for. When the page is complete, students
visit the websites of the other government departments
and devise their own quiz questions about funding and
resource allocation for their peers to answer.
Page 20
• Introduce this activity by talking about the fact that
governments regularly create budgets. Part of this
concerns the resource allocation (particularly money)
that is supplied to help satisfy the needs and wants of
Australian citizens. The resources allocated to education
and family are two that will directly affect students. It
would be interesting to talk about some of the changes
made in these areas in a recent budget by the current
government.
• Before students begin, pick a few examples from the
bulleted list and brainstorm some of the possible
implications for students, teachers and other staff if these
changes were to happen at their school. Students then
complete the activity independently.
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Resource allocation on a national level – 1
A government problem
Making decisions about using resources to fulfil needs and wants on a personal, business or
community level is difficult enough. Imagine trying to fulfil the needs of an entire nation! This is
exactly what federal governments have to do every day. In deciding on how to use and allocate
a nation’s resources, a government must deal with the problem of scarcity. Scarcity means that a
resource is scarce (hard to find or not easily available). While scarcity is something we all have to
deal with, it becomes a huge problem when we are talking about items or services that people
really need. These include basic survival needs like food supplies and clean water as well as other
important needs such as education and health care. Other needs governments have to consider
are energy supplies, housing, transportation and communication services. Of course, all of these
require one main resource—money!
Unfortunately, some countries are not wealthy and/or don’t have enough resources (most
importantly, natural resources) to supply even basic needs for some or all of its citizens. Some
examples of such countries are below.
• In Ethiopia, most people can only get water from shallow ponds or wells. This water is unclean
and can cause disease, as it is shared with animals or contaminated with waste. Ethiopia also
suffers food shortages during times of drought, which are frequent.
• In Cambodia, there is a lack of proper housing, which forces many people to live in slums.
Here, people have no access to basic health services.
• In Bangladesh, many people, particularly those living in rural areas, suffer from hunger and
have limited access to health care, electricity, gas and clean drinking water.
Allocation of resources in Australia
In Australia, we are lucky enough to have a vast range of natural resources and are also among
the richest countries in the world. Most of us enjoy a high standard of living, with all our needs
catered for—but this is certainly not the case for everyone. This includes large numbers of
Indigenous Australians, who generally live with poorer levels of education, health and housing
than most other Australians.
Our government, like all governments around the world, has certain ways of dealing with
allocating resources to its citizens. In a country like Cuba, the government has strict control and
owns most of the country’s resources. It even supplies people with ration books which allows
them to buy a certain amount of specific food per month. But in Australia, the government has
far less control. It only owns about 20% of the country’s resources. The rest is owned by private
businesses. To make money, private businesses must stay aware of what people want to buy
from them. This affects what resources they use to produce goods or services. This should make
you, as a consumer, feel powerful! Every time you make a buying decision, you are influencing
what resources are being used in our country.
R.I.C. Publications ® www.ricpublications.com.au Australian Curriculum Economics and business (Year 6) 17

Resource allocation on a national level – 2
Read the text on page 17 and answer the questions.
1. Write definitions for each of these words or phrases from the text. You can use a dictionary to
help you.
(a) scarcity
(b) allocation
(c) contamination
(d) ration
(e) private business
2. What do private businesses in Australia need to be aware of to make money from consumers?
3. List five items or services that governments need to consider to fulfil people’s needs.
4. What do you think might be some advantages and disadvantages of a federal government like
Cuba’s, controlling and owning most of its country’s resources? Write them in the table below.
Advantages
Disadvantages
5. Imagine you are a charity organisation planning to help people suffering
in Bangladesh. Which problem would you address first and why?
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Resource allocation on a national level – 3
The Australian Government is responsible for allocating funds to its citizens through its various
government departments. These include the Department of Education and Training, the Department
of Health and the Department of Veterans’ Affairs.
Look at each of the following Australian government webpages to answer the quiz questions about
some types of resource allocation in the departments listed above.
https://agedcare.health.gov.au/aged-care-funding/capital-funding
1. Whose responsibility is it to fund the construction, maintenance and upgrade of aged-care
facilities in Australia?
2. What is the aim of the Rural, Regional and Other Special Needs Building Fund?
3. Name a condition of a capital grant.
https://www.dva.gov.au/benefits-and-payments
4. According to the page, what is the purpose of the Department of Veterans’ Affairs?
5. List three different situations in which support might be available to members and their families.
6. Name two types of payments that can be made to members and their families.
https://www.education.gov.au/funding-schools
7. What types of schools does the Australian government provide funding for?
8. Circle true or false.
(a) State and territory governments are the major funders of Australian schools.
(b) The Australian Education Act 1913 is the principal legislation for the
provision of school funding.
(c) The Australian Government provides supplementary funding for
government schools.
(d) Non-government schools don’t receive any supplementary funding.
True
True
True
True
False
False
False
False
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Resource allocation on a national level – 4
Imagine you are a primary school teacher working in a country where the government decides to cut
funding to schools. It claims that its budget needs to be used for universities instead. Some of the
things it decides to change to reduce costs in schools are:
• more students in classrooms and fewer teachers
• no more upgrades to computers
• no more teaching assistants to help with special needs students
• stopping music, art and PE lessons
• stopping the installation of heating and cooling systems in classrooms
• no more grants to help school families who struggle to buy uniforms and school books
You are angry about these changes as you feel universities are already well-funded. You decide to
write a protest email to the government. Choose three of the funding cuts listed above to write about.
For each one, explain why you think this funding cut is a bad idea and why the funding should be
given to schools rather than universities.
1. Use the template below to help you plan your letter.
Introduction: (Explain why you are writing.)
Body:
Paragraph 1: (Discuss your first funding cut choice, giving reasons for your protest.)
Paragraph 2: (Discuss your second funding cut choice, giving reasons for your protest.)
Paragraph 3: (Discuss your third funding cut choice, giving reasons for your protest.)
Conclusion: (End with a strong statement about why you are angry and what you expect the government to do.)
2. Use your plan to write your email on a separate piece of paper.
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Assessment – 1
Answer the questions about resources, trade-offs and opportunity cost.
1. Complete these sentences.
(a) A trade-off is made when .
(b) When you make a choice about how to spend your time or money, the value of the next
best alternative is called .
2. Give an example of a time when you made a decision that involved a trade-off. Explain the
opportunity cost that occurred.
3. Answer the questions about the scenario below.
Imagine a kitchenware business wants to make its shop look
more appealing. It is trying to decide whether to spend money
on new lighting or new display tables. The current lighting is a
little dull but works perfectly. The current display tables are rickety. One recently collapsed and
almost injured a customer.
(a) What is the opportunity cost of choosing not to replace the tables?
(b) What is the opportunity cost of choosing not to replace the lighting?
(c) What do you think the business’s priority should be? Why?
4. What is a resource?
5. Give two examples of each type of resource a café might use.
Natural Human Capital
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Assessment – 2
1. Define scarcity.
2. Why does scarcity cause a big problem for federal governments?
3. Governments in different countries have different amounts of control over resources. Explain the
difference between the amount of resources owned by the governments in:
Australia
Cuba
4. How can the amount of private business in Australia make you feel powerful as a consumer?
5. The Australian Government allocates resources through
its different government departments. Once of these is
the Department of Education and Training. Give some
examples of how changing the resources allocated
through this department could affect:
School
students
Teachers
Teaching
assistants
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Self-assessment
Name:
1. After completing the ‘Making choices about resources’ section of the book,
(a) add a tick to the box if you now understand:
• how and why trade-offs are made
• the meaning of opportunity cost
• how people might make decisions about using resources
• how communities and businesses make decisions about using resources
• how resources can be allocated by federal governments
(b) mark the scale to show how well you understand the meaning of ‘making choices about
resources’.
0 10
Not very well
Extremely well
2. In the table, write the things you already knew about making choices about resources and the
new things you learnt by completing the activities in the book.
Things I already knew
New things I learnt
3. Give your opinion on the importance of understanding the idea of making choices about
resources.
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Answers
Page 4
1. A trade-off is made when you trade in or swap something to
gain something else.
2. (a) the enjoyment of wearing the necklace
(b) the energy the lunch would have given him
3.–4. Teacher check
Pages 5–6
Teacher check
Page 7
1. It gave up the familiarity/popularity of the original biscuit
recipes for the chance to try out new biscuit recipes.
2. Most customers disliked the biscuits and stopped buying them.
3. It decided to go back to selling the original Pizza Shapes.
4.–5. Teacher check
Pages 8–9
Teacher check
Page 12
1. They would say that while our needs can be satisfied, our
wants are unlimited (meaning we are never satisfied with what
we have).
2. Answers should reflect that a resource is something we use to
achieve or acquire something. Examples given can be natural,
capital or human resources.
3. Answers will vary but should be similar to the following:
(a) if he has enough shirts already at home
(b) She needs to consider the opportunity cost of not playing
soccer, the commitment she has made by joining a
soccer team and if she would offend anyone by not
attending the party.
(c) He needs to consider if a new worker would bring better
skills to the business, whether his current worker would
be happy to increase his hours and whether he is happy
with his current worker.
4. Answers might include that people will have to be evicted
from their houses and that there might be air and noise
pollution issues.
Page 13
Teacher check
Pages 14–15
1. Impact of palm oil: Using non-sustainable palm oil can lead
to deforestation, habitat degradation, climate change, animal
cruelty and indigenous rights abuse.
What consumers can do: Take the 28-Day Palm Oil Challenge,
pressure companies, manufacturers and governments, support
the Orangutan Project, volunteer overseas, become involved in
DeforestACTION
Big businesses who use palm oil: Some examples include
Starbucks, PepsiCo, Campbell Soup, Kellogg Company, Kraft
Food Group Inc. and Mars Inc.
2.–5. Teacher check
Page 18
1. Answers should be similar to the following:
(a) when a product or service is scarce (hard to find or not
easily available)
(b) sharing out something
(c) pollution of something by an unwanted material
(d) a fixed amount of an item officially allowed to a person
(e) a business owned by a private owner rather than a
government
2. What people want to buy from them.
3. Answers may include food supplies, clean water, education,
health care, energy supplies, housing, transportation and
communication services.
4.–5. Teacher check
Page 19
1. The approved aged care provider.
2. To facilitate equitable access to residential aged care where
access is impeded.
3. That the grant recipient continues to provide residential aged
care in the facility for which the grant was provided.
4. To provide support to current and former serving members
and their families through a range of benefits.
5. Answers might include injury, disease or death; permanent
impairment; incapacity for work or service; needing ongoing
household and attendant care; needing treatment such as
health care; loss of or damage to medical aids.
6. Ongoing or one-off payments
7. All schools, both government and non-government.
8. (a) true (b) false (c) true (d) false
Page 20
Teacher check
Page 21
1. (a) you trade in or swap something to gain something else
(b) the opportunity cost
2. Teacher check
3. (a) That someone might get hurt
(b) The shop looks dull
(c) Answers will vary
4. Something we use to achieve or acquire something.
5. Answers will vary but might include food, water and energy
(natural); staff (human); tables, chairs, coffee machine, ovens
(capital).
Page 22
1. When a product or service is scarce (hard to find or not easily
available).
2. They have to decide how to use and allocate a nation’s
resources to fulfil the needs of all citizens.
3. Australia: the government only owns about 20% of the
country’s resources; the rest is owned by private business
Cuba: the government owns most of the country’s resources
4. Because whenever you make a buying decision, you influence
what businesses are producing.
5. Answers will vary but should reflect that changing resources
might influence the learning materials available, the size of
classrooms, the availability of special lessons, the number of
teachers, the number of teaching assistants, the availability of
heating and cooling and the lack of grants to help struggling
families.
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