Commerce Study Notes
Andrew Newbound
© Andrew Newbound 2013
Unit 1
MONEY
© Andrew Newbound 2013
Needs & Wants
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Needs – Essential to survival
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Water
Food
Shelter
Clothing
Wants – luxuries – Not essential
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Provide us with a level of satisfaction
Help support to standard of living we want
© Andrew Newbound 2013
Wants
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E.g.
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Mobile phones
iPods
TV’s
Dishwashers
Computers
© Andrew Newbound 2013
Types of Wants
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Wants grouped - according to who they
are purchased for
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Individual
Community (Collective wants)
© Andrew Newbound 2013
Collective Wants
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Fire stations
Electricity
Garbage collection
Schools
Hospitals
Water to houses
Roads
Police
Sporting Venues
© Andrew Newbound 2013
Goods & Services

Consumer
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Anyone who buys goods and services
Good – items that can be seen and touched
E.g.
 Games
 Hardware
 Stationary
 Furniture
 Electronics

© Andrew Newbound 2013
Goods & Services
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Service
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Intangible good that is provided by an
individual or organisation
E.g.
Surf life saving
 Gardener
 Pool (public)
 Fire service
 Teacher
 Internet

© Andrew Newbound 2013
Factors Affecting Consumption
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Advertisements
Design
Environment
Price
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Brand names
Quality
Employment
Reviews
© Andrew Newbound 2013
Factors Affecting Wants
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Age
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Fashion and Taste
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New fashions are seen in the clothing market
each year
Advertising
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People’s tastes differ according to their age
Informs consumers of the product available
Income
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Determines what products you buy
© Andrew Newbound 2013
Factors Affecting Wants
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Culture
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Environment
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Western societies have different wants compared
to Eastern societies
Environmental issues affect people’s purchase
Values
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Our morals determine what we want
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E.g. clothing, fur coats
Attitudes
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Pressure from society & friends
© Andrew Newbound 2013
Single Use and Durable Goods
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Difference is amount of times they can be used
Single Use/Non Durable
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1 or few uses
Inexpensive
Used up quickly
Bought regularly
Durable
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Last and give satisfaction over a period of time
Requires repairs
Bought on credit
Depreciate over time
© Andrew Newbound 2013
Complementary & Substitute
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Complementary Goods
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Consumed WITH another good
E.g.
Playstation & Playstation Games
 Car & Petrol
 Shoes & Socks
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© Andrew Newbound 2013
Complementary & Substitute
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Substitute goods
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Can be purchased INSTEAD of another good
E.g.
Pepsi or Coke Cola
 iPod or MP3 Player
 PC or Mac
 Butter or Margarine
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© Andrew Newbound 2013
Types of Producers
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Primary Producers
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Extraction of raw materials
E.g.
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Macadamia nut farmer
Diamond mine worker
Secondary industry
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Transformation of raw materials into products
E.g.
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Car assembly worker
Carpenter
© Andrew Newbound 2013
Types of Producers
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Tertiary
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Wide range of services
E.g.
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Motor mechanic
Train driver
Quaternary
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Information & communication services
E.g.
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Bank Clerk
Accountant
Insurance Clerk
Computer Operator
© Andrew Newbound 2013
Types of Producers
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Quinary
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Domestic services
E.g.
House keeper
 Waiter
 Nurse
 Shop Assistant
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© Andrew Newbound 2013
Specialisation
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Improve standard of living by creating
experts in more fields
E.g.
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Eye doctor
Dentist
Foot doctor
© Andrew Newbound 2013
Bartering
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Types of Economies
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Subsistence
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Bartering
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Providing for themselves
Swapping one good for another
Problems with Bartering
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Calculating value
Double Co-incidence of wants
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Finding someone who has what you want and
wants what you have
© Andrew Newbound 2013
Bartering Advantages and
Disadvantages
Advantage
 No effect on the
environment
 Renewable money
 ‘Money can grow on
trees’
 Facilitates local trade
 Allows you to get rid of
excess goods
 No depress
Disadvantages
 Not getting what you
want
 Not easily carried around
 Not having anything
worth trading
 Not easily divisible
 No ‘value’
 Not in local area
 Produce can’t keep
© Andrew Newbound 2013
Some Interesting Facts About
Money
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Money
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Primitive societies used bartering
1st coins
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Considered necessary in our way of life
Made in Lydia
Electrum
Stamped with weight
Early paper money
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Chinese
Easily wearing
© Andrew Newbound 2013
Functions of Money
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Exchange for goods and services
Saving for the future
A measure of value
Recording debt and payment of debt
© Andrew Newbound 2013
Modern Forms of Money
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Bank deposits
Cheques – not legal tender
Debit cards and Eftpos
© Andrew Newbound 2013
Requirements of Money
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Divisible – Buy expensive & cheap
Portable – Carry money around
Durable – Last for a long time
Scarce – Can’t be easily obtained/copied
Easily recognised – Easy to identify
Generally acceptable – People will accept
© Andrew Newbound 2013
Inflation
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Rate at which the cost of goods and
services rise each year
Calculated by typical basket of goods &
services and calculating the percentage of
rise
Consumer price index - CPI
© Andrew Newbound 2013
Monetary Policy
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The RBA (Reserve Bank of Australia)
decides how the economy grows
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Inflation aim – 2-3%
Done by official interest rates
© Andrew Newbound 2013
History of Money In Australia
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1788 – 1900
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1900 – 1920
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Production of gold coins – boosted issue of
private bank notes – no national currency
National currency – reflected the land
1920 – 1960
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Changed several times – reflected our
economic development
© Andrew Newbound 2013
History of Money In Australia
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1960 – 1988
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Decimal currency introduced – captured
emerging social & cultural diversity and its
contribution to wider world
1988 – Today

Polymer notes introduced – 1ST IN WORLD
© Andrew Newbound 2013
Current Notes
Note
Front
Back
$5
Queen Elizabeth II
Old & New Parliament House
$5 (Federation)
Sir Henry Parkes
Catherine Helen Spence
$10
Banjo Patterson
Dame Mary Gilmore
$20
Mary Reibley
John Flynn
$50
David Unaipon
Edith Cowan
$100
Dame Nellie Melba
Sir John Monash
© Andrew Newbound 2013
Role of RBA
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Responsible for production, reissue and
cancellation of Australia’s notes
Notes from RBA and are distributed by the
National Note Processing and Distribution
Centre
Royal Australian Mint produces coins
© Andrew Newbound 2013
Damaged Notes
Missing
Happens
20% or less
20% – 80%
80% or more
Replaced
Proportion paid for
Nothing
© Andrew Newbound 2013
Security Features
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Detect a counterfeit
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Look at note
Feel the note
Try to tear it
Feel the print
Hold the note up to light
Magnifying glass
© Andrew Newbound 2013
Security Features
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Clear Window
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Polymer Substrate
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Clear area which can be seen through
Plastic like substance notes are printed on
See-through registration device
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Works when images printed on each side or
imperfect register when the note is viewed in
transmitted light
© Andrew Newbound 2013
Security Features
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Shadow Image
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Intaglio Print
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An image created by a variation in the opacity
of the substrate can be viewed in transmitted
light
Raised print
Background print (offset)
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Flat print used to create coloured background
designs
© Andrew Newbound 2013
Security Features
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Microprinting
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Small print requiring a magnifying glass to
view
Fluorescent Ink Properties
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Printed feature on a note which may or may
not be viewed in normal light but fluoresces
under ultra violet light
© Andrew Newbound 2013
Money Extended Response
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Coins – pieces of metal stamped with weight
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Lydians – 7th century BC
Metals used as money
Bartering common in ancient societies
Now
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Most common form of exchange
How well it works
 Divisible, portable, durable, scarce, recognisable,
generally acceptable

© Andrew Newbound 2013
Money Extended Response
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Forms of money
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Debit cards, Eftpos, bank deposits, cash
Cheques – not legal tender/money
Can be used to buy goods
 Most businesses accept them
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Still fulfils same purpose
Exchange good and services
 Measure of value
 Recording debt/payment of debt
 Can be saved
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© Andrew Newbound 2013
Money Extended Response
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Essential part of lives
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Without money, can’t be commercial society
Couldn’t have many job opportunities
© Andrew Newbound 2013
Unit 2
TOURISM
© Andrew Newbound 2013
Reasons People Travel
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Visit People
Religion
Job Opportunities
Medical
Education
Conferences
To get away
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Buy things
Sport
Visit famous places
Reward
New beginning
Experiences
© Andrew Newbound 2013
Tourism & Travel
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One most important industries
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Employs millions
Tourist as defined by United Nations
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‘A person who is going to be away from his or her
home for at least 24 hrs and who is travelling for
one or more of the following reasons:
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Recreation
Business
Education
Sport
Religion
To visit friends
© Andrew Newbound 2013
Identifying Travel Destinations
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Sources
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Internet
Travel agents
The media
Travel Guides
Family
Friends
© Andrew Newbound 2013
Internet
Advantages
 Great deals
 Organise yourself
 Small tourist operators
promote themselves
 Avoid travel agent
commission
 Convenient
Disadvantages
 Reliability
 Time
 Information overload
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Large number of potentials
© Andrew Newbound 2013
The Media
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Common source of travel info
TV programs
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The Great Outdoors
Getaway
Escape With ET
Sydney Weekender
Newspapers
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Large city papers have travel section
© Andrew Newbound 2013
Travel Guides & Family and
Friends
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Travel guides
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Provided detailed info
Written by people who have actually visited
the places
Family and Friends
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Offer advice on where to go and stay
1st hand experience
© Andrew Newbound 2013
Factors Affecting Choice of
Destination
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Personal
Financial
Political & Environmental
© Andrew Newbound 2013
Travel Destinations
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Tourism
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Domestic Tourism
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Travelling within Australia
International Tourism
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Being away from home for more that 24hours
Travelling outside of Australia
Ecotourism
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Travel with minimum impact on the
environment
© Andrew Newbound 2013
Factors Affecting Choice of
Destination
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Personal
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Financial
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Likes/dislikes
Money available
Political
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Visas – getting to places
© Andrew Newbound 2013
Planning a Trip
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Group travel – organised
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Safe
Itinerary – travel plan
Independent travellers – don’t follow plan
© Andrew Newbound 2013
Passports & Visas
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Passport
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Shows citizenship
Allows you to go overseas
Leave & re-enter Australia
Visa
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Permission to enter country
Working/tourist
© Andrew Newbound 2013
Unit 3
CITIZENSHIP
© Andrew Newbound 2013
What Is Democracy?
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“Government of the people by the people
by the people and for the people”
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Abraham Lincoln
People chosen by the people to represent
them
Greek Democracy – Voting
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Men with 2 Athenian parents, over 18
20% of population
Not very democratic – not all people can vote
© Andrew Newbound 2013
What Is Democracy?
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Direct democracy
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Representative democracy
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People say what they want for themselves
People represent you and your opinions
Lower house – House of Representatives
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150 people – represent electorates
Elected every 2 years
© Andrew Newbound 2013
What Is Democracy?
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Referendum
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‘A legislative act is referred for final approval
to popular vote by the electorate.’
Must be held if constitution will be changed
© Andrew Newbound 2013
Democracy In Australia
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Society based around idea government
power derived from the people
We elect people to represent us in
parliament
Vote for political party with policies we
agree with.
© Andrew Newbound 2013
Structure of Government In
Australia
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3 Levels
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Federal
State
Local
Responsibilities for Federal & State
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Set out in constitution
© Andrew Newbound 2013
Federal Government
Responsibilities
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Industrial Relations
Taxation
Environment
Communication
Immigration
Customs
Social security
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Currency
Resources
Non government
schools
Universities
Foreign Affairs
Trade
Defence
© Andrew Newbound 2013
State Government Responsibilities
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Health
Ambulance
Fisheries
Maritime Services
Racing/Gaming
Infrastructure
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Police
Transport/Roads
Electricity/Power
Environment
Public Schools
Fire Services
© Andrew Newbound 2013
Local Government Responsibilities
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Beaches
Tourism
Pools
Developments
Parks & Gardens
Local Roads
Sporting Facilities
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Sanitation
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Services
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Sewage
Household Waste
Gun Ranges
Water
© Andrew Newbound 2013
Structure of Government
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Federal & state structure:
Ministry/Department
Prepares policy options for the minister
Ministers
Decide on best policy – take to Cabinet
Cabinet
Consider proposals – accept, modify, reject
Parliament
Both houses endorse legislation
© Andrew Newbound 2013
Structure of Government

Party
Policy
Inputs:
Public
Service
Interest
Group
© Andrew Newbound 2013
Media
Inputs
Parliament
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Federate – unite
7 parliaments in Australia
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6 states, 1 federal
Members are elected
Lower House – House of Representatives
Upper House – Senate (house of states)
Parliament with 2 houses - bicameral
© Andrew Newbound 2013
Parliament - Bills
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Lower House
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Introduction of bill
1st reading
2nd reading
Committee stage
3rd reading
Upper House
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Governor General
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Time of debate
Upper house
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3 readings
1st reading
Receive most
amendments
(changes)
After GG signs bill

Becomes law
Makes official
© Andrew Newbound 2013
Prime Ministers & Premiers
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Prime Minister
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Party of senior ministers
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Member of government
Edmond Barton
In charge of money
Prime minister
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Nathan Reese
Labour
Treasurer

1st P.M.

Premier NSW current

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Minister
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Leader of government
Current – Kevin Rudd
Cabinet

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Elected to lower house
Then chosen for P.M.
Premier

Same as P.M.
© Andrew Newbound 2013
The Role of An M.P.
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Constituency – people you represent
MP must
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Speak to lobby groups
Meetings with other MPs
Speak in front of people
Attend local events

Needs to be re-elected
© Andrew Newbound 2013
The Role of An M.P.
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Branch stacking
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Offering an incentive for standing for election
Usually for recognisable people
Electoral Committee

In charge of elections
© Andrew Newbound 2013
Political Parties
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Political Party
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Main way political power is exercised
Group of people in parliament that unite
Major Parties
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Australian Labor Party (ALP)
Liberal
Nationals
Democrats
Greens
© Andrew Newbound 2013
Political Parties - ALP
Australian Labor Party
 Formed 1891
 Better represent workers
 1st elected 1904

Labor Prime Ministers
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(1st) JC (Chris) Watson
Andrew Fisher
John Curtin
Ben Chifley
Gough Whitlam
Bob Hawke
Paul Keating
© Andrew Newbound 2013
Political Parties - Coalition
Liberal Party
 Formed 1944


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Gordon Menzies

Be a strong alternative
Government
Big/Small Business
1st elected 1949


Country/National Party
 Formed 1919
Gordon Menzies


Represent Farmers
Leader becomes deputy
PM


Country Party
If become government
Renamed 1980
Malcolm Fraser
John Howard
© Andrew Newbound 2013
Political Parties – Minor Parties
Democrats
 Launched 1977



Australian Greens
 Formed 1992
Don Chipp

‘Ordinary’ people could
actively participate in
policy development
Janine Haines




State based merged
Not WA
Environment
Took over leadership 1986
1st woman in Aus to lead
political party
© Andrew Newbound 2013
Political Parties
Party Name
When Formed
Represents
Australian Labor Party (ALP)
1891
Workers
Liberal Party
1944
Big/Small business
Country/National Party
1919
Farmers/Regional Australia
Australian Democrats
1977
‘Ordinary’ People
The Greens
1992
The environment
© Andrew Newbound 2013
Political Parties

Independents


Member of Parliament (MP) not in a party
Crossbenchers

Sit between parties
© Andrew Newbound 2013