3 Feb 2009

1. 3 Feb 2009 • Wiki • Course Outline & Syllabus • Review the Economic Problem • Examine the ways that the economic problem affects individuals • Interest rates smh.com.au • Delicious

3. Narita • You are a single mother of 3 children • You work full time • Two of your children are at school • The other is in child care • You childcare for OOSH care is $310 per week • Your pre-school fees are $325 • You spend $40 on public transport per week • Your take home (after tax) income is $1000 • If you didn’t work, you are entitled to $450 per week in social security and childcare rebates of $250

4. Narita: Questions • What is the opportunity cost of working full time? (think laterally here ladies) • Could you make a rational decision to improve your circumstances?

5. Narita – Questions (B) Your income is $425 • Rent $225 • Food $200 • Travel $40 • Entertainment $100 • Clothes $100 • Saving $20 • What would you decide to purchase with your disposable income? • What is the opportunity cost of your decision?

6. Samual • You are a uni graduate earning $700 per week after tax • You spend $50 on public transport per week • You live with your parents • You would like to purchase a property in the future

7. Samual: Questions • What is the opportunity cost of working full time? (think laterally here ladies) • Could you make a rational decision to improve your circumstances?

8. Samual – Questions (B) Your income is $700 • Rent $0 • Food $200 • Travel $50 • Entertainment $200 • Clothes $100 • Saving $150 • What would you decide to purchase with your disposable income? • What is the opportunity cost of your decision?

9. Comparison • How does the economic problem impact Narita? • How does the economic problem impact Samual? • What is the difference between Samual and Narita’s income? • Which position would you prefer to be in? Why? • If Samual earns less than Narita, why is the opportunity cost of satisfying her needs greater than Samual’s? (think about this in terms of the balance between wants and resources)