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      • Introduction to Economics >
        • The nature of economics
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        • Demand
        • Supply
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      • P1: Social and Cultural World
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      • PIP
      • H1: Social and Cultural Continuity and Change
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      • H3: Equality and Difference
    • Geography (old syllabus) >
      • Coastal Management
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TOPIC 3 MARKETS

The role of consumers in the economy

Consumer sovereignty
Patterns of consumer spending and saving/dissaving
  • variations with income and age
- individual consumers either spend or save their income
- in the economy as a whole, as income rises the level of saving increases

Factors influencing individual consumer choice
  • income
  • price
  • price of substitutes
  • price of complements
  • preferences/tastes
  • advertising

Sources of income
  • the return for resources: wages, rent, interest and profit
  • social welfare

The role of business in the economy

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

Efficiency and the production process

  • productivity
  • internal and external economies of scale
  • diseconomies of scale

Impact of investment, technological change and ethical decision-making on a firm through:
  • production methods
  • prices
  • employment
  • output
  • profits
  • types of products
  • globalisation
  • environmental sustainability
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  • Home
  • About
    • About
    • Education Blog
    • Writing Blog
  • Case Studies
  • Courses
  • HSIE Resources
    • HSC Business Studies >
      • Operations >
        • Role of operations management
        • Influences
        • Processes (overview) >
          • Inputs
          • Transformation processes
          • Outputs
        • Strategies
      • Marketing >
        • Role of marketing
        • Influences
        • Process
        • Strategies
      • Finance >
        • Role of Financial Management
        • Influences
        • Processes
        • Strategies
      • Human Resources >
        • Role of human resource management
        • Influences
        • Processes
        • Strategies
        • Effectiveness
    • Preliminary Business Studies >
      • Nature of Business >
        • Role of business
        • Types of businesses
        • Influences
        • Business growth and decline
      • Business Management >
        • Nature of management
        • Management approaches
        • Management process
        • Management and change
      • Business Planning >
        • SMEs
        • Influences
        • Business Planning Process
        • Critical Issues
    • Economics >
      • Introduction to Economics >
        • The nature of economics
        • The operation of an economy
      • Consumers and Businesses >
        • Businesses
      • Markets >
        • Demand
        • Supply
        • Market equilibrium
        • Market structures
      • Labour Market >
        • Demand and supply of labour
        • Labour market trends
      • Economic Issues >
        • Economic growth
        • Unemployment
        • Inflation
        • External Stability
        • Distribution of Income and Wealth
        • Environmental Sustainability
    • Society and Culture >
      • Course Framework
      • Research Methods
      • P1: Social and Cultural World
      • P2 Personal and Social Identity
      • P3: Intercultural Communication
      • PIP
      • H1: Social and Cultural Continuity and Change
      • H2: Popular Culture - Social Media
      • H3: Equality and Difference
    • Geography (old syllabus) >
      • Coastal Management
      • Urban Growth and Decline
      • Human Rights
  • Contact