20602_AC_Economics_and_buisness_Year_6_Making_choices_about_resources

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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 … 8 Australian Curriculum Economics and business (Year 6) www.ricpublications.com.au R.I.C. Publications ®
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
Page 2 and 3: Australian Curriculum Economics and
Page 4 and 5: Teachers notes The core of Australi
Page 6 and 7: Differentiation strategies Many of
Page 8 and 9: Glossary Budget an estimate of inco
Page 10 and 11: HASS Inquiry and skills Questioning
Page 12 and 13: HASS Concepts of interdisciplinary
Page 14 and 15: HASS Achievement standards Knowledg
Page 16 and 17: Trade-offs and the cost of lost opp
Page 24 and 25: Resource decisions How the concept
Page 26 and 27: Resource decisions - 2 Read the tex
Page 28 and 29: Resource decisions - 4 Palm oil is
Page 30 and 31: Resource allocation on a national l
Page 36 and 37: Assessment - 2 1. Define scarcity.
Page 38: Answers Page 4 1. A trade-off is ma

20602_AC_Economics_and_buisness_Year_6_Making_choices_about_resources

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