The document provides definitions of economic terms like producers, consumers, resources, and passive vs active income. It then discusses ways to earn money through careers like mechanical engineering, accounting, and medicine. Passive income opportunities through real estate investing and stock market investing are presented. The benefits and drawbacks of credit cards and taking on debt are debated. Finally, the document acknowledges that scarcity means not everyone can have everything they want.

1. Advice for
Consumers
By Jack Carroll
In this presentation I will be explaining various things to do with
economics, such as passive income, ways to earn money, credit cards
etc.

2. Economic Definitions• Producer – A person who uses resources to create something of economic
value. Someone who produces goods or services. For example if you make
something and sell it you are a producer.
• Consumer – A person who purchases goods or services for personal use.
The good or service needs to be used to be considered to have been
consumed. For example if you buy a chocolate bar and eat it you are a
consumer.
• Resources – A service or other asset that can be used to produce goods
and/or services.
• Opportunity cost – The next best option that is given when a choice is made
about how to use resources.
• Resource allocation – The way that scarce resources are distributed to meet
unlimited needs and wants.
• Full time/Part time/Casual work – Casual work means that you work
whenever your employer calls you in and the amount of hours is not set
specifically. Casual gets payed a little more hourly usually but that is for a
special reason.
• Full time and part time work is still the same work except you get benefits
such as sick leave, so you will still get payed on your sick days.

3. Economic Definitions
• Scarcity – Insufficient to demand. In economic terms, the fact that a
resources to meet needs and wants are limited.
• Substitute – An alternative option that can meet the same need or
want.
• Salary – A set amount earnt. It doesn’t matter how many hours you
work. It is a fixed and regular payment.
• Wage- An amount paid based on the hours worked. It varies
depending on the work completed. Payment for a service rendered.
• Want – A want is something you want to have but not something
you need to survive.
• Need – A need is something you need to live such as food and water.
• Passive income – Passive income is an income that you don’t have
to do any work for after your initial investment.
• Active income – Active income is income that you have to do
something to get for example working a job to get money.

4. What's the role of the
Government in the Economy?
How does the government influence the economy?
The government influences the economy with things like reserve banks, funding, taxes and
other things. They help keep cash flow through many businesses which intern helps the
economy
What is the role of the reserve banks?
The Reserve Bank of Australia is Australia's central bank. Its duty is to try and keep the
currency of the country stable, help employment, and keep the economy and welfare of
Australia good. It sets the cash rate to meet an agreed medium-term inflation target, and is
working to keep a strong financial system and also have an efficient payments system. The
bank also gives out the countries banknotes. The Reserve Bank provides certain banking
services as required to the Australian Government, And to some overseas central banks.
Additionally, it is in charge of Australia's gold and foreign exchange reserves.
Why would they lower interest rates?
Banks might lower interest rates so that they can get a bunch of people in and locked it to
their scheme to attract a lot of people and then they will do something to the interest rates.
If the Australian dollar somehow became worth more I think that interest rates would lower
because more value would be given away.
Why would they raise interest rates?
Banks might possibly raise interest rates because they need more money or if something
happens to the economy. I think that interest rates might possibly be raised if the Australian
dollar was worth less because it might seem better for the people looking at interest rates
but it’s basically the same.

5. Should I have a credit card?
• Yes I think that you should have a credit card for things like online
purchases and emergencies and so that you don’t go into debt just
pay for it straight away and then you will be able to get the benefits
from your credit card provider. For example an ANZ rewards
platinum American Express card gives 3 reward points for every $1
spent on eligible purchases. Except you have to earn a certain
amount to get this credit card.
• If you were to get a credit card I would suggest a Coles rewards card
that has no annual fees, because there are no annual fees, the
interest rate is 19.99%, and it has rewards that you can gradually
receive. I think this would be good to have in case of emergencies
because there are no annual fees so if you need a quick loan of
money you can use this card and the interest rate is around average.

6. Ways to earn Money
Mechanical Engineer
Mechanical engineers plan, design and oversee the development, installation,
operation and maintenance of machinery.
Enjoy technical and engineering activities, willing to adhere to safety
requirements, able to identify, analyse and solve problems good oral and
written communication skills, enjoy computing and technical design, practical
and creative, able to work independently or as part of a team, able to accept
responsibility.
Marine Engineer is a job similar to mechanical engineer
Complete a degree in engineering at university with a major in mechanical
engineering.
$72,303 (Before Tax) $57,257 (After Tax)

7. Ways to earn money
Accountant
Accountants analyse, report and give advice about the
financial dealings of organisations and individuals.
Good communication skills, good presentation skills, able
to build rapport with clients, able to analyse and solve
problems, good organisational skills, discretion when
dealing with confidential information, professional and
ethical, able to work as part of a team.
Economist is a job like an accountant
To become an accountant you have to complete a VET
qualification in accounting.
$54,988 (Before Tax) $45570 (After Tax)

8. Ways to earn money
Medical Practitioner
Medical practitioners diagnose physical and mental illnesses,
disorders and injuries, and prescribe medications and treatment
to promote or restore good health.
Good communication skills, self-confidence, able to exercise
high ethical standards, able to relate to people compassionate
towards others, enjoy working with people, able to cope with
the physical demands of the job, a high degree of motivation
and self-discipline.
Dentist is similar to a medical engineer.
To become a medical practitioner you usually have to study
medicine at university.
$101,216 (Before Tax) $75819 (After Tax)

9. What is Passive income?
• Passive income is money that you don’t have to do anything to
get, it is the opposite of active income. To be defined as
passive income you don’t have to do any work after your
initial setup or initial investment. So to get two incomes you
could have passive income as well as active income. Passive
income is a way that some people become rich.

10. Ways to get Passive Income
Investing in Properties
To invest in properties you first need to be able to get loans or have the
money to purchase properties worth renting out. You also need to
invest in other things otherwise you’ll be only investing in a small
market.
Pros:
• Anyone can invest.
• You have control.
• Capital growth.
• Tax benefits etc.
Cons:
• Liquidity.
• Rent free periods.
• Bad tenants
• Risks

11. Ways to get passive income
Investing in stocks
A common way to buy or sell stocks is on the share market using a
brokers or broking services. Another way to buy shares is to buy them
through a prospectus when they are first put on the market. Or
indirectly through a managed fund. Another way to buy shares is
through an employee share scheme.
Pros:
• Long term growth Potential.
• Stock usually beat cash.
• Potential Income from dividends.
Cons:
• Risks.
• Eurozone issues.
• Value of stocks can go down.

12. Is debt a good thing?
• No. Debt is not a good thing, it might help you get cash quick
when you need it but you will end up in a worse situation as
your debt grows. Because if you don’t pay back your debt
quickly, you will gain a lot of interest on top of it. Meaning the
initial amount you borrowed will increase and you will have to
pay more back in the end. So no debt is not a good thing
because you can loose money, you are better off to only spend
the money you have.

13. Why can’t I have everything I
want?
• There is many reasons as to why this is but to put it plainly
there just isn’t enough of everything to go around to
everybody. It would be nice if everyone could simply have
billions of dollars but that isn’t a reality. Even if you had
everything you wanted you would eventually want to get
something new that you might not be able to. Also if everyone
had everything they wanted there would be no challenge in
life, you wouldn’t have to go to school, go to work or
necessarily do anything at all so people would eventually get
bored of having everything.

14. Bibliography
Reserve Bank Australia, http://www.rba.gov.au/about-rba/ (21/11/15)
Money Smart, https://www.moneysmart.gov.au/investing/shares (21/11/15
Money Smart https://www.moneysmart.gov.au/investing/shares/how-to-buy-
and-sell-shares (21/11/15)
The Nest, http://budgeting.thenest.com/advantages-investing-stock-market-
25698.html (21/11/15)
RealEstate.com, http://www.realestate.com.au/blog/8-steps-to-getting-
started-in-property-investment/ (21/11/15)
Camstar, http://www.creditcardcompare.com.au/rewards-credit-cards.php
(21/11/15)
Coles, https://financialservices.coles.com.au/credit-cards (21/11/15)