Journal of the Economics and Business Educators New South ... · and Reporting Authority (ACARA) has now commenced the curriculum development process for Civics and Citizenship with

Journal of the Economics and Business Educators New South Wales

�The EBE Journal – 2012 Issue 1

JOURNAL OF THE ECONOMICS AND BUSINESS

EDUCATORS NEW SOUTH WALES

2012 – Issue 1

ContentsPresident’s Report 3

BEA Conference 2012 Program & Grants 7Financial Guidance on the Money 11Two Unresolved Issues Emanating from the Global Financial Crisis 12Income Inequality and the American Dilemma 16Crossword – Examination Verbs 19Word Search – Accounting and Finance 20Fair Trade Exercise 21A-Z Survival Guide For The Teaching of the Board of Studies NSW Legal Studies Syllabus (Updated for 2012) 22Games that Enhance Learning in Economics 33International Teacher Profile 36Plan Your Own Enterprise Competition: Winning entry 2011 40 Judges comments 41 Entry form for 2012 43Submission to the Australian Government – White Paper on Australia in the Asian Century 49Congratulations to Economics and Business Educators NSW Director, Lyn Kirkby 50Crossword solution 51

a call for papers• Thereisalwaysaneedforarticles

andpapersfortheJournal.

• Paperswrittenbyteachersareofgreatvaluebecauseteachershavethesubjectknowledgeandskillsintheirareaofexpertise.

• Teachersknowthelevelatwhichtopitchthearticles.

• Articlesmaybeabletobeusedbyfacultiesasaprofessionaldevelopmentactivity.

• AllsourcesareacknowledgedandcopiesofpublishedarticlescanbeattachedtoyourC.V.

ALL ARTICLES AND/OR ENQUIRIES SHOULD BE DIRECTED TO:

TheEditorEconomics&BusinessEducatorsNSWPOBox67LeichhardtNSW2040

Phone:(02)95645007Fax:(02)95645309(Leichhardt)Email:[email protected]

Articlesmaybeemailedwithtextdoublespaced,proofread.Ifpossible,textshouldbeWord97ortextformat.

Pleaseensurethatalltables,diagramsandfiguresincludedwithyourpaperareofsuitablequalityforreproduction.

The Journal

� The EBE Journal – 2012 Issue 1

PRESIDENT: MrJoeAlvaro

VICE PRESIDENTS: MsAnneLayman MsLizCriddle

TREASURER: MsJenniferGibson

COMPANY SECRETARY: Vacant

DIRECTORS: MrAndrewAthavle MsKateDally MsBronwynHession MrStuartJones MsCatherineKeeley MsLynKirkby MrJohnLudewijks MsPaulineSheppard MsRhondaThompson

EDITORS: MsJenniferGibson MsKateDally

DESKTOP PUBLISHING: MsJillSillar,ProfessionalTeachers’CouncilNSW

PUBLISHED BY: Economics&BusinessEducatorsNSW ABN29002677750 ISSN1488-3696 POBox67LeichhardtNSW2040 Phone:(02)95645007 Fax:(02)95645309 Mobile:0411118284 Email:[email protected] Website:www.ebe.nsw.edu.au

“THEEBEJOURNAL”/“ECONOMICS”isindexedAPAIS:AustralianPublicAffairsInformationServiceproducedbytheNationalLibraryofAustraliainbothonlineandCD-ROMformat.

Access to APAIS is now available via database subscription from: RMIT Publishing / INFORMIT – PO Box 12058 A’Beckett Street, Melbourne 8006; Tel. (03) 9925 8100; http://www.rmitpublishing.com.au; email:[email protected].

ThephoneforAPAISinformationis(02)6251650;thephoneforprintedAPAISis(02)6251560.

Information about APAIS is also available via the National Library website at: http//www.nla.gov.au/apais/index.html

TheISSNassignedtoTheEBEJournalis1834-1780.

Theviewsexpressedinthesearticlesarenotnecessarilythoseoftheeditorortheassociation.Allarticlespublishedaredonesoingoodfaithandwithoutprejudice.

Allcontributionsarereceivedingoodfaithbytheeditorsasoriginalcontributionsofauthors,andtotheknowledgeoftheeditortherehasbeennobreachofcopyrightbythepublicationofanyarticles,diagramsorfiguresintheJournal.Ifduetothefailureofanauthortocorrectlyinformthathis/herworkisnotanoriginalworkandthereisabreachofcopyright,theeditors,havingnopriorknowledge,cannotacceptresponsibility.

AnybooksrecommendedbyanyauthorsofarticlesandinternetsitesintheJournalarenottherecommendationoftheEconomics&BusinessEducatorsNSW.


Welcome to the first edition of “The EBE Journal” for 2012. I hope the content proves useful for you and your students. The journal has been delivered in an electronic format for the first time and we would welcome any feedback you have about this development as we go through this transitional stage. Email [email protected].

New Board of Studies NSW HSC Business Studies SyllabusEBE NSW is mindful that members across the state and in our Australian International Schools overseas are implementing the new Board of Studies NSW HSC Business Studies Syllabus which began being taught in term 4, 2011 and will be examined for the first time this year. The Board of Studies NSW has the following resources available on its website:

A support document for the new HSC Business Studies Syllabus.

• A guide to the revised Stage 6 Business Studies Syllabus

• The 2012 Business Studies HSC Specimen Examination Package.

The Business Studies session in the EBE NSW professional development event, “Teaching Year 12 HSC Business Studies, Economics and Legal Studies Courses for the first time in Term 4, 2012/2013?” on the 23 July 2012 will focus on the new HSC Business Studies syllabus. In addition a trial HSC Business Studies examination will be produced by EBE NSW this year as usual. EBE NSW directors are available for advice and assistance (email [email protected]) in relation to the new Business Studies Syllabus.

•

President’s Reportby Joe Alvaro

“Teaching Year 11 Preliminary Business Studies, Economics and Legal Studies Courses for the first time in 2012?” Professional Development EventDuring term 1 we held a very successful professional development event, “Teaching Year 11 Preliminary Business Studies, Economics and Legal Studies Courses for the first time in 2012?” with around 50 teachers and student teachers attending to gain support and advice as well as network with colleagues about effective teaching and learning strategies with regards to our foundational courses. Many thanks go to EBE NSW Directors Andrew Athavle, Liz Criddle, Kate Dally and Stuart Jones for presenting sessions at this event. During term 3 we will hold the HSC equivalent of this event as teachers prepare to begin teaching HSC courses in term 4. Further details will be communicated to members in term 2. EBE NSW is a NSW Institute of Teachers endorsed provider of Institute Registered professional development for the maintenance of accreditation at Professional Competence. I encourage members to book early for this event as it has tended to be a very popular event in the past.

2012 Business Educators Australasia National ConferenceOur regular state annual conference will be replaced by the Business Educators Australasia National Conference this year which will be hosted by EBE NSW in Sydney on 4 and 5 October 2012. The conference will provide a forum for the


teachingandlearningofBusinessandEconomicseducationandassociatedstudiesforcolleaguesacrossAustraliaandbeyond.AparticularemphasiswillbeonthedevelopmentoftheBusinessandEconomicsAustraliancurriculum(moreinformationabouttheconferenceisinthiseditionofthejournal).Asaconferencesponsor,theCommonwealthBankFoundationisofferingfreeregistrationtotwoteacherswhohavebeenteachingforlessthanfiveyearstoattendtheconference(moreinformationinthiseditionofthejournal).Thiswillbetheoneprofessionaldevelopmenteventthisyearnottobemissed.

Australian Curriculum – Economics and BusinessThisyearwillseesignificantdevelopmentswithregardstotheEconomicsandBusinessAustraliancurriculum.Aninitialadvicepaperisdueforreleaseinafewmonthsandthiswillthenbefollowedbyashapepaperwhichwillbereleasedfornationalconsultation.

Itisenvisagedthatthecurriculumwillbepublishedin2013.Itisimperativethatmembersstayconnectedtodevelopmentsinthisareaandthatyourviewsaremadeknownandcommunicatedinorderforourstudentstoaccessaworld-leadingandhighqualityEconomicsandBusinesscurriculum.Inadditiontothenationalconferencewhichwillinformmembersaboutdevelopmentsinthisarea,EBENSWwillbeconductingastateforum,“WhatdoyouthinkaboutthedraftEconomicsandBusinessStudiesnationalcurriculum?Timeforyourfeedback!”laterthisyearwhichwillgivemembersanopportunitytohearfromothermembersaboutwhattheythinkandalsooffertheirownviewsinaforumstyleenvironment.PleasechecktheEBENSWwebsiteforfurtherdetailsaboutthisevent.

President’s report

Australian Curriculum – Civics and CitizenshipTheAustralianCurriculum,AssessmentandReportingAuthority(ACARA)hasnowcommencedthecurriculumdevelopmentprocessforCivicsandCitizenshipwiththepreparationofadraftinitialadvicepaper.CivicsandCitizenshipisgivenattentionintheMelbourneDeclarationonEducationalGoalsforYoungAustralians(2008)whichstatesthatallyoungAustraliansshouldbecomeactiveandinformedcitizens.Thequestionwenowneedtoansweriswhatexactlydowemeanby“active”and“informed”?IrepresentedEBENSWattheACARACivicsandCitizenshipNationalForumon19March2012.ThisfeedbackisnowbeinganalysedandadraftShapeoftheAustralianCurriculum:CivicsandCitizenshipwillbereleasedfornationalconsultationinmid-2012.OursubjectshaveheavyconnectionstoCivicsandCitizenshipandthisaspectoftheAustralianCurriculumwillhavemajorimplicationsforus.AgainitisimportantthatmembersstayabreastofdevelopmentsinthisareaandhelpshapetheCivicsandCitizenshipcurriculum.AttheforumtherewasadeepdesiretoensurethataqualityandmeaningfulcurriculumisproducedforyoungAustraliansandarecognitionthatpoliticallyawareandengagedstudentsnowandlaterinlifecancontributetoastrongandeffectivedemocracyinAustralia.

Financial LiteracyEBENSWiscommittedtosupportingteachersinimplementingtheNationalConsumerandFinancialLiteracyFramework(seetheEBENSWwebsiteforacopyofthisdocument).LastyearEBEVicePresident,LizCriddleandmyselfparticipatedinaSydneyMorningHeraldarticletitled“Financialguidanceonthemoney”whichwehave



includedinthiseditionofthejournal.Thereisasubstantialamountofresearchwhichsuggeststhatschoolscanplayavitalroleinimprovingthefinancialliteracyoffuturegenerationsandpreventingalotofthepainanddistressthatcanbeexperiencedinlifeasaresultoffinancialdifficulties.TheAustralianCurriculumwillrequirefinancialliteracytobeintegratedacrossthecurriculumandasteachersofoursubjectsweareinagoodpositiontotakealeadershiproleinthisarea.Therewillbeprofessionaldevelopmentopportunitiesbasedonfinancialliteracyavailableatthe2012BusinessEducatorsAustralasiaNationalConferencereferredtoabove.

White Paper on Australia in the Asian CenturyThereiswideconsensusthatthiscenturywillbeknownasthe“AsianCentury”.In2011thePrimeMinistercommissionedaWhitePaperonAustraliaintheAsianCentury.

ThepurposeoftheWhitePaperistoidentifywhatactionAustraliashouldtaketomeettheopportunitiesandchallengesarisingfromtheAsianCentury.EBENSWmadeasubmissionbasedonthe2011IssuesPaper,AustraliaintheAsianCentury,whichwehaveincludedinthiseditionofthejournal.Therestofthesubmissionscanbeaccessedatasiancentury.dpmc.gov.au.Intermsofeducation,therecanbenodoubtnowthatallteacherswillneedtogivemoreattentiontoAsiaintheirclassroomsinthefuturewith“AsiaandAustralia’sengagementwithAsia”identifiedasacross-curriculumpriorityintheAustralianCurriculum.Oursubjectshavealottoofferthispriority.IfyoumissedtheNationalStatementonAsiaLiteracyinAustralianSchools2011–2012,youwillbeabletofindacopyofthisdocumentontheEBENSWwebsite.

Field trip for teachersTheAsiaEducationFoundationisofferinganoverseasincountrystudyprogramforbusinesseducators.Titled“RidingtheIronRoosterforEconomicReform”,itwillbeheldfromthe1July–12July2012(endofterm2schoolholidays)andwillenableparticipantstoexperiencetheeconomicpowerhousethatismodernChina(the“world’sfactory”).SeetheEBENSWwebsiteforfurtherdetails.

2012 CPA Australia Plan Your Own Business Enterprise CompetitionThe2012CPAAustraliaPYOECompetitioniscurrentlyunderway.Thereisnobetterwaytoteachstudentsaboutbusinessplanningthanthroughthiscompetition.Inthiseditionofthejournalyouwillfindthewinningentriesfromlastyear’scompetition.WelookforwardtomanyentriesfromstudentsaroundNSW.Pleasenotethedeadlineforentriesis22August2012(Term3,Week6).Furtherdetailsareavailableinthiseditionofthejournal.

2011 Professional Teachers’ Council NSW Annual Presentation EveningOnthe28November2011PTCNSWhelditsAnnualPresentationEvening.CongratulationstoEBENSWImmediatePastPresidentandcurrentDirector,LynKirkbywhowasawardedanOutstandingProfessionalServiceAward(moreinformationonthisawardcanbefoundinthiseditionofthejournal).EBENSWasanorganizationwaspresentedwithaCertificateofAppreciation“inrecognitionoftheassociation’svoluntarycontributionduring2011toqualityeducation,thestudentsofNSWandtheteachingprofession”.Thankyoutoalldirectors,membersandofficestaffforyoureffortsduring2011.



New EBE NSW Board MemberEBENSWwelcomesProfessorJohnLodewijksasanewboardmember.John’snominationwasunanimouslyendorsedbydirectorsatthelastEBENSWBoardMeeting.JohnholdsthepositionofHeadofSchool(EconomicsandFinance)attheUniversityofWesternSydney.WelookforwardtoworkingwithJohnduring2012andbeyond.

Thankyoutoourjournalco-editorsKateDallyandJenniferGibsonwhohavepreparedthiseditionofthejournalformembers.Ialsothankallthecontributorstothiseditionofthejournal.Allmembers

areinvitedtosubmitanarticleforpublication([email protected]).Furtherinformationaboutsubmittinganarticlecanbefoundinthiseditionofthejournal.Contributingtothejournalisonewaytodemonstrateprofessionalcompetence,accomplishmentorleadershipforthepurposesofaccreditationwiththeNSWInstituteofTeachers.Itisalsoaneffectivewaytoengageinprofessionaldialogueandsharingwithotherteachers.

Allgoodwishesforasuccessfulandproductiveterm2.

JoeAlvaro




10 The EBE Journal – 2012 Issue 1

��The EBE Journal – 2012 Issue 1

Education

ReprintedwiththepermissionofTheSydneyMorningHerald.

1� The EBE Journal – 2012 Issue 1

TheGlobalFinancialCrisishascreatedallsortsofquestionsabouttheefficiencyoffinancialmarketsandtheusefulnessofeconomictheoryinexplainingwhathappened.Inthisarticleweexaminetwoissuesthathavenotbeenresolvedandmayinfuturehaveconsiderableconsequencesfortheglobaleconomy.

1. What is the future of the American dollar?Formostofthepost-warperiodtheUSdollarhasservedastheworld’sreservecurrency.Thosecountriesthatpersistentlyrunacurrentaccountsurplus,orinotherwordssavemorethantheyinvestdomestically,oftenholdtheirforeignreservesinUSdollars.Forexample,Chinahasinternationalreservesof$US2trillionofwhich$US1.5trillionisheldinUSdollars.Muchoftheseforeignexchangereservesaresittinginlow-yielddollar(oreuro-denominated)governmentbonds.WhydocountriessuchasChinaandJapanandEastAsianeconomiesholdsuchhighlevelsofforeignexchangereserves(especiallyinlow-yield$USgovernmentbonds)andwhatwouldhappeniftheystarteddiversifyingawayfromthe$US?

PartoftheexplanationrelatestowhatiscalledtheDutch-Disease.Thisoccurswhenasignificantsurgeofexportearnings(forexample,fromamineralsboom)pushesupthevalueofthelocalcurrencythroughadditionalexportearningsandthehigher

Two Unresolved Issues Emanating from the Global Financial Crisis

by John Lodewijks, University of Western Sydney

exchangeratedisadvantagesotherexportindustriesandimport-competingsectors.Itmayalsoencourageexcessivespendinginthelocaleconomythathasinflationaryconsequences.Theseconsequencescanbeavoidediftheexportearningsareheldoffshore,inanothercurrency–perhapsinasovereignwealthfund.In2007,beforetheglobalfinancialcrisis,investmentsinsovereignwealthfundsaccountedforabout$US3.5trillion.Theirvaluemaynowhavedroppedto$US2trillion.

AnotherreasontoholdsubstantialforeignexchangereservesrelatestotheadverseexperiencesoftheAsianFinancialCrisisof1997.ManyofthelocalAsiancurrenciescameunderattackforspeculators,inthecontextofconsiderablecapitalflightfromforeigninvestors,andcurrencyvaluesplummeted.Moreover,rescuepackagesformulatedbytheInternationalMonetaryFundimposedallsortsofdifficultconditionsandunpopularpoliciesonrecipientcountries.ToavoidtheseproblemsinfutureAsianeconomiesconsciouslydecidedtobuildupsubstantialforeignexchangereservestodefendtheircurrenciesintimesofspeculativeattacks.

Finally,countriesmayholdsubstantialreservesinforeigncurrenciestokeepthevalueoftheircurrencylow(andhencecompetitiveinexportmarkets).Exportsuccesspushesupthevalueofthecurrencyasforeignexchangeisconvertedintodomesticcurrencyraisingthedemand


Unresolved issues and the GFC

forthelocalcurrency.Thegovernmentcanoffsettheriseindemandfordomesticcurrencybyincreasingthesupply–tobuyuptheforeignexchangeandholdit.Theseforeignexchangereservesareoftenheldindollar-denominatedUSTreasurysecurities.Inthiswaytheycankeepthevalueofthecurrencylowandkeepanundervaluedexchangeratethatsupportsexportcompetitiveness.ThishasbeenacontinualcomplaintmadeagainsttheChinesebytheAmericans.TheRenminbihasbeenallowedtoappreciatesince2005butin2008theypeggedittotheUSdollaragain.China’scentralbankbuysdollarsfromChineseexportersandusesthemtobuyinterest-earningUSassets.Theysterilizethelocalliquidityincreaseviaissuingdebtandsopreventinflationathomeandappreciationofitscurrencyabroad.

Whatarethecostsofthisstrategy?Byparkingforeignexchangereservesinlow-yieldinggovernmentbondsyouhavesecuritybutlowreturns.Therearethenopportunitycostsofplacingmoneyinlow-yieldingassetswhenmoreproductive(albeitriskier)investmentopportunitiesareavailable.IthasbeenestimatedthatadollarsworthofphysicalcapitalinIndiawouldproduce58timesthereturnsavailableintheUnitedStates.BecauseUSgovernmentdebthassuchlowreturns,someofthesurplusofsavinginChina,JapanandGermanyhasbeenusedtopurchasesecuritizeddebtwithperhaps40to50percentofallUSgeneratedsecuritiesheldbyforeignersbeforetheCrisis.TheseinvestmentssustainedtheUSboom,asmuchofthehousingboomwasfinancedbynon-resident,andtheinevitablecollapseoftheboomwasfardeeperasaconsequence.

TheUSnowfindsitselfwithconsiderablegovernmentdebtobligations.WhatifUSinflationrateswereconsciouslyincreased

toreducetherealvalueofthesedebts?ForeigncentralbanksandsovereignwealthfundswhoboughtUSTreasurybillsandbondswoulddumpdollarsandtheUSdollarwouldfallprecipitously.IfthedollarfallsthenChinesedollar-denominatedsecuritiesareworthlessintermsoftheirowncurrency.Ontheotherhand,AmericanassetsarecheapertopurchasebuttheUShassofarresistedforeignownershipofitsmostimportantcorporations.Chinaalsorestrictscitizensandfirmsfromholdingforeignassets.TheUSmayrespondbyraisinginterestratestodefendthedollarbutthatwouldbenefitthosethatholdUSgovernmentdebt.Forexample,a1percentinterestratemeans$15billionflowstoChina.A5%interestratemeansa$75billionoutflow.

IftheUSdollardidcrashtherewouldbeaneedforanewglobalreservecurrencythatexhibitsstrengthandstability.Wouldthe$USbereplacedbytheChineseRenminbiorbySpecialDrawingRights?Onapositivenote,wouldthefallinthe$USsignificantlyincreaseUSexportstorectifytheircurrentaccountimbalanceandwouldthenowmoreexpensiveimportsreducetheabilityoftheChinesetoexporttoAmerica?MightthisfixtheimbalancebetweentheUScurrentaccountdeficitsandtheChinesecurrentaccountsurpluses?OrwillthisrequiretheAmericanhouseholdtofundamentallychangetheirattitudetodebtandconsumptionwhiletheChineselearntosaveless?ThelatterisunlikelyasmostChinesecontinuetopurchasetheirhomesincashandsoneedtosaveandtherearenoorlimitedsafetynetsavailableinoldagewiththeonechildpolicy.Chinawouldhavetosubstantiallyimproveitspensionandsocialsecuritysystem,andwageswouldneedtorisesignificantly,toraiseChinesehouseholdconsumption.


2. Will the European Monetary Union Collapse?SovereigndebtdefaultsinEuropearenowadistinctpossibility.Unsustainablelevelsofsovereigndebt–theso-called‘Eurozonecrisis’–isathreattotheexistenceoftheEuropeanMonetaryUnionasitisnotclearhowmanycountriescanbebailedout.ThisisparticularlyanissueforcountriessuchasGreece,Ireland,Italy,PortugalandSpain.Unlessrescuepackagesaresizeableenoughandcredible,someofthesecountriesmayhavetoexitthemonetaryunionandadoptanewdevaluedcurrency.Moreover,ifanationexitsthemonetaryunionanddefaultsondebtsheldbyothermembernations,theymayalsobeexpelledfromtheEuropeanUnion.

Publicsectorbailoutsoftroubledfinancialinstitutions(andcountries)hasleadtorisinggovernmentindebtednesswhereinaworse-casescenariobudgetsareconsumedentirelybyinterestpaymentsondebt.InIrelandthegovernmentguaranteedallthedebtsofthebiggestIrishbanksandfacesabudgetdeficitof32percentofGDP.InthecaseofIcelandwherethebankingsystemcollapsed,debtsamountto850percentoftheirGDP.

Thecausesofthissituationaremanyfold.TheimmediateproblemrelatestothecontagioneffectsofthecollapseoftheUSsub-primemortgagemarketandtheresultingcrisisinthemostsophisticatedfinancialsystemintheworld.However,housingstressandrealestatebubblesaffectedsomeEuropeancountriesmorethanothers.Only40percentofGermansowntheirownhousewhilethefigureisalmostdoubleintheUK.Germanbanksonlyloantoamaximumof60percentofaproperty’svalue.InFranceitisstricterandborrowingisbasedonapercentageofyourincome,usuallyonethirdofyourgrossincome.Moreover,bankcanbesuedforreckless

lending.InFrancethereisafarlowerlevelofhouseholddebtandthisisalsoreflectedinhomeownership.InDenmarkborrowersarelimitedtoborrowingatmost80percentofthevalueofthehouseandthemortgageoriginatorhastobearthefirstlossesintimesofmortgagestress.Indeed,itisoftenstatedthatBritaindidnotjointheEurobecauseofitsmortgagemarket–mortgagesaresomuchlargerthere–andhenceitsinterestratesaretoopoliticallyimportanttobesetexternally.

YetEuropeanbankswerealsohighlyleveraged,andmadehigh-riskloansinparticulartoemergingEurope,andsosharedsomeofthesamevulnerabilitiesastheUSeconomy.EveninacountrysuchasGermanywhichdidnotexperienceacreditboomorinflatedrealestatepricesorexcessiveborrowingforconsumptionwhileexhibitinghighfiscalresponsibility–didhaveitsbankslendaggressivelytoIcelandbanks,USsubprimeborrowersandIrishrealestatebarons.Prudentfinancialbehaviourathomedidnottranslatetothesamebehaviourabroad.

Afocusoncurrentdilemmas,however,obscuresmoredeep-seatedstructuralproblemsassociatedwithamonetaryunion.In2001whenGreeceenteredtheEuropeanMonetaryUnionitcouldnowborrowlongtermfundsatroughlythesamerateastheGermans.TheadoptionofEuroallowedsomecountriestoborrowandconsumemorethantheyotherwisewouldandtheybecameheavilyindebtedtobankselsewhereinEurope.Theendresultwasthattheirexportsweredearer,wageshigher,andbudgetandcurrentaccountdeficitslarger,thanthatconsistentwithresponsibleeconomicmanagement.Somestatisticalmanipulationoftheofficialeconomicdatahidtheextentoftheproblemsevenbeforetheglobalfinancial



crisisoccurred.DeficitfiguresweretotallyunderstatedbymovingexpensesoffthebookssothatareportedbudgetdeficitoflessthanthreepercentofGDPactuallycorrespondedtoarealdeficitofaround15percent.Similarmanipulationtookplacewithrespecttothereportedinflationrate.InGreeceparticulardifficultiesrelatedtothewagebillofthepublicsector,thegenerouspensionsandveryearlyretirementage,theexpensiveeducationandhealthsystemthatdeliveredpoorqualityoutcomes,andtheverylowtaxcompliancewithwidespreadunderstatingofincomeandlittleeffectivetaxpenalties.

Giventhesedifficultiestheremediesarenotclear.Inmid-2008theEuropeanCentralBankincreasedinterestratesandrefusedtoadoptanaggressiveexpansionarypolicy.Onlylaterdidpolicybecomemorecounter-cyclicalwhilethecurrentcontractionarypoliciesinEuropearethreateningtolowerglobalaggregatedemand.SomeobserversnotethatsomecountrieslikeGreeceneedtobeexcludedfromtheEuropeanMonetaryUniontokeeptheUnionviable.OthersnotethattherearenowtwoEuropesandwemighthavetodividetheEurozoneintotwosubregions(thosethathaveefficienteconomiesandsensible,prudenteconomicmanagementandthosethatdonot).OritmaybethatGermanyissuchaproductiveeconomythatitshouldgoitalone,asitsstandardsofmonetaryandfiscaldisciplinecannotbematchedelsewhereinEurope.Anotheralternativeisafiscalunion–acentralbodythatsettaxesandgovernmentspending


–tocomplementthemonetaryunion.Withamonetaryunion,acountrylosesitsexchangeratepolicyanditsindependentmonetarypolicy.Afiscalunionwoulddepriveitofitsfiscalpolicy.Fewcountriescouldagreetothatlossofsovereignty.

PostscriptIfforeigngovernmentsnolongerwishtoholdUSgovernmentdebtitpresentsdireconsequencesfortheAmericandollarandfortheAmericaneconomy.HighinterestratesmayusherinanotherperiodofrecessionoraversionofJapanesestagnationthathaspersistedfordecades.ItmayresultinanewglobalpowerstructurewheretheUShascometothe“endofinfluence”.Meanwhile,sovereigndebtissuesinEuropemaythreatentheexistenceoftheEuropeanMonetaryUnionoreventheEuropeanUnionasawhole.Wecertainlydoliveininterestingtimes!

Useful referencesStephenS.Cohen&J.BradfordDeLong.2010.The End of Influence,Basic,NewYork

PaulKrugman.2007.The Conscience of a Liberal.Norton,NewYork

MichaelLewis.2011.Boomerag: The Meltdown Tour.AllenLane,NewYork

RaghuramG.Rajan.2011.Fault Lines.PrincetonUniversityPress,Princeton

NourielRoubini&StephenMihm,2011.Crisis Economics.Penguin,NewYork

JosephStiglitz.2010.Freefall.Penguin,London.


Incomeinequalityincreasedinmorethanthree-quartersofOECDcountriesfromthemid-1980stomid-2000s.ThedisparitiesintheU.Sareparticularlystark.Thetop1percentofAmericanhouseholdsaccountedforonly8.9percentofincomein1976,butthissharegrewto23.5percentofthetotalincomegeneratedintheUnitedStatesin2007.Ofeverydollarofrealincomegrowththatwasgeneratedbetween1976and2007,58centswenttothetop1percentofhouseholds.In2007thehedgefundmanagerJohnPaulsonearned$3.7billion,about74,000timesthemedianhouseholdincomeintheUnitedStates.InthispaperwehighlightaspectsofU.SincomeinequalitypresentedinbookswrittenbyPaulKrugman(2007)andRaghuramG.Rajan(2011).

WhatwerethecausesoftheincreasedUSincomeinequality?Rajanpointstoskills-biasedtechnicalchange,immigrationandtrade.Technologicaladvancehasreducedthedemandforcertainlower-skilledoccupationswhileincreasingthedemandsforhighlyeducatedandtrainedworkers.Moreover,aninfluxoflower-skilledmigrantsandcheaplabour-intensiveimportsfromplaceslikeChinahasplacedpressureonthewagesoflowerincomeAmericans.Rajannotesthattheeducationsystemhasbeenunabletograduateenoughstudentswiththenecessaryhigher-levelskillstotakeadvantageofthechangesintechnology.Thedemandforuniversitygraduatesexceedssupply.Toomanystudentsaredroppingoutofhighschoolandcollegeandsolocked

Income Inequality and the American Dilemma


outofproductivejobs.Apoorlearningexperienceathighschoolmayleavestudentsunpreparedfortherigoursandcostofauniversityeducation.CostsofaprivateuniversityintheUSmaybetoohighandevenstateuniversityfeesareincreasing.Therearealsodifferencesinaptitudeforeducationrelatedtoearlychildhoodlearningenvironmentsandbehaviouralexpectations–AfricanAmericansandHispanicshavebeenhardesthitbypoorschooling.Overall,Rajanisaysthatthemostimportantreasonforgrowinginequalityisthegrowingtechnologicaldemandforskilledworkersandthelaggingsupplybecauseofdeficienciesinthequantityandqualityofeducation.

Krugmanhasadifferentexplanation.Hesaysthatskills-biasedtechnicalchange,immigrationandtradearecommonexplanationsbutatbesttheypointtoarisinggapbetweenless-educatedandmore-educatedworkersbutthatisonlypartoftheinequalityincrease–eventhecollegeeducatedhaveseenwagegainslagbehindproductivity.Itdoesnotexplaintheexcessivegainsattheverytopoftheincomedistribution.Krugmansaysthat‘NootheradvancedcountryhasseenthesamekindofsurgeininequalitythathastakenplaceintheUS’andthatiftechnologyandglobalisationistheanswerthenthesamesortofinequalityshouldhaveoccurredinEurope.ButithasnotsotheremustbeotherfactorsintrinsictotheUSexperiencethatareresponsible.

Amajorissueofdiscussioniswhathashappenedtomiddle-classAmerica?Some


Income inequality and the American Dilemma

studiesreportthatwhileUSGDPpercapitaincreasedby10percentbetween2000and2008–medianhouseholdincomewas4%lower.Themedianincomeofmalesintheirthirtiestodayisreportedtobelowerthanitwasthreedecadesago.ThereisheateddebateonwhetherAmericanmedianincomehasrisenorfallensincetheearly1970s.Studiessuggestthatithaseitherrisenmodestlyoractuallydeclineddependingonwhetheryouarejustlookingatmalesorhouseholds,whetheritisadjustedforinflationandhoursworked,andthetimeperiodstudied.Lookingatfamiliesithasrisenbyabout16percentfrom1973to2005buttheincreasehasmainlyreflectedlongerworkinghoursthroughgreaterfemalelabourforceparticipation.Since1980medianfamilyincomehasrisenonlyabout0.7percentayear.Formen,medianinflation-adjustedearningshavefallenslightly.Ifthegainsinproductivityhadbeenevenlysharedacrosstheworkforce,thetypicalworker’sincomewouldbe35percenthighernowthanitwasintheearlyseventies.Whilethetop10percentofthewagedistributionsawspectaculargains,therestofthedistributionachievedfarlessthanthe35percentaverage.Averageincomehasgoneupsubstantially,ashaslabourproductivity,butnotmedianincome.

KrugmansaysthatPostwarAmericawasamiddle-classsocietywithnarrowincomegaps,andafarmoreequaldistributionofincomeandwealth.Ownershipofwealthwaslessconcentrated.Therewasnoextremeinequality.Mostpeoplelivedrecognizablysimilarandremarkablydecentmateriallives.Itwasa‘goldenage’thatlasteduntilthe1980s.Thereafter,inequalityincreasedasthewelfarestatewasrolledback,unionsbecamelessinfluentialandtaxratesonthewealthywerereduced–thereweredramaticdropsinthetopmarginal

taxrate.Between1979and2006thetoptaxrateonearnedincomewascutinhalf,thetaxrateoncapitalgainswascutalmostasmuchandthetaxrateoncorporateprofitswascutbyaquarter.Theresultwasrunawaygrowthofexecutivepaywhileattheotherendtheminimumwagein1966,inrealterms,washigherthanitistoday.In1966thetypicalmaleinhisthirtieswasearningasmuchashismodernequivalent.

WhataresomeofthedistinctivefeaturesoftheincreasedinequalityintheUS?Incomeredistributionhashurtminoritiesdisproportionatelymore.TheAfrican-Americanpovertyrateistriplethewhiterateandtheunemploymentrateisdouble.Thedifferencesarealsoapparentinratesofcrime,drugandalcoholaddiction,female-headedhouseholdsandwelfaredependency.Thereisalsoastrongsenseofunfairness,injusticeanddeprivationonthepartofAfrican-Americansinthattheyfeeltheyhavebeendealtabadhandintermsofresourcesoftheirparentsandresourcesoftheirneighbourhoods.Theymaylegitimatelycomplainthattheylacktheskillsandassetstocompeteeffectivelyinthecurrentlabourmarketpartlybecauseofthelowqualityofschoolingtheyhavereceived.ItmightbenotedthatintheUSonly34percentofyouthsfromhouseholdsinthebottomquintileoftheincomedistributiongotocollege,whereas79percentofthosefromthetopquintiledo.Only11percentofthebottomquintilegraduatewhile53percentofthetopquintiledo.

Middle-classAmericaisalsoworriedabouttheirchildren’sfutureandconcernedthattheyarenotgettingthequalityeducationtheyneedtocompeteinthelabourmarket.Theriseinmiddleclassdebtwasnotluxury-drivenbutmainlyspendingonhousingtogetintogoodschooldistricts,


giventhehighlyunevenqualityofUSbasiceducation.Anothermajormiddle-classconcernrelatestotheeffectsofunemploymentinacountrythatdoesnothaveageneroussafetynet.Rajannotesthatfrom1960until1991recoveriesfromrecessionweretypicallyrapid–theaveragetimetorecovertopre-recessionoutputlevelswaslessthantwoquartersandlostjobswererecoveredwithineightmonths.Sincethenithastakenfarlongertorecoverlostjobs–2to3years–butunemploymentbenefitslastonlysixmonthsandtheunemployedloseaccesstoemployer-providedhealthcareinsurance.InsecurityovermedicalexpensesisthesinglebiggestfinancialriskthatworkingAmericansface.Fearoflosinghealthinsurancepervadesmiddle-classAmerica.ItappearsclearthattheUSdoesnotprovideanadequatesafetynetifrecessionsareprolongedgiventheshortdurationofunemploymentbenefits,theabsenceofuniversalhealthcareandthemodestoldagepensionsanddisabilitypaymentsprograms.

Sowhatcanbedonetoimprovethesituation?Krugmansupportsaguaranteeduniversalhealthcareprogram.Hesaysabout15percentofthepopulationhasnomedicalinsuranceatall.Moreover,thecurrenthealthcaresystemishighlyinefficientandwhileAmericaspendsmoreonhealthcarethananyoneelse,healthoutcomesaredisappointing.Healthoutcomeshavenotimprovedcommensuratewithhealthexpenditures.Twentypercentofthepopulationaccountsfor80percentofmedicalcostsandmedicalinsuranceisbecomingfartooexpensivewithannualfamilypremiumsof$US 11Kin2006.Secondly,hebelievesweneedtoreversetaxcutsforthewealthyandtoclampdownonexecutiveremuneration.Rajanalsoagreesthatcompensationshouldbemorelong-termandpaidout

Income inequality and the American Dilemma

graduallyovertimetodiscourageexcessiverisktaking.Thoseexecutivesthatwerepaidthemostbeforethecrisiswerealsotheonesthatperformedmostpoorlyintermsofreturnsandhadthehighestexposuretotoxicsubprimemortgages.Thefocusonshorttermprofitsencouragedexcessiverisk-takingthateventuallywaspaidforbythetax-payerinbailoutsoffinancialcorporations.SimonJohnson(2009)pointedoutthattheeconomicwealthofthefinancialsectorintheUSgeneratedpoliticalweightintermsofcontributorstopoliticalcampaignsandthatinturnmayhaveinducedgovernmentandfinancialregulatorstoturnablindeyetotheexcessesinthefinancialsystem.

RajanandKrugmansupportmorefundingforearlychildhoodsupportintermsofbetternutrition,healthcare,andearlyeducationinitiatives–preschoolprogramsandday-carecentres.Theysupportfurtherfinancialaidtoencourageparticipationintertiaryeducationwithstudiessuggestinga$US1000studentsubsidyincreasescollegeattendanceratesbyroughly4percentagepoints.Anothersuggestionistoextendunemploymentinsurancebenefitsbasedonthelengthofrecessions.Krugmanbelievesthatthereshouldbebasicrightsofaccesstohealthcare,educationandhousingforallcitizens,andthatweneedsupportiveinstitutionsthatlimitextremesofwealthandpovertythatweseeintheUStoday.

ReferencesSimonJohnson.2009.‘TheQuietCoup’TheAtlanticMay.

PaulKrugman.2007.The Conscience of a Liberal.NewYork:Norton.

RaghuramG.Rajan.2011.Fault Lines.Princeton:PrincetonUniversityPress


crossword

EXAMINATION VERBS

Across6. makeajudgement8. inquireinto11.identifyissuesandprovidepointsfor

andagainst12.statethemeaning13.showhowthingsaredifferentoropposite

Down1. drawmeaningfrom2. showhowthingsaresimilarordifferent

3. suggestwhatmayhappen4. supportanargument5. presentrememberedideas7. providereasonsinfavour8. makeajudgementbasedoncriteria9. makeclear10.recogniseandname13.produce,design14.identifytherelationshipbetween

components

Solution–seepage51

ContributedbyKateDally

�0 The EBE Journal – 2012 Issue 1

word search

ACCOUNTING AND FINANCEInstructions:

Findeachofthefollowingwordsinthewordsearch.Thenwriteeachwordinasentencetoshowthatyouunderstanditsmeaning.

F W T T A I Z S T M G N O E RK W B F G N N R T N J W V X EE C E A A N E T I N N J L T TG A D R T Y I S E E A O U E AA P N D J E A W R R N R W R IR I S R Y E G S O G N E G N NE T V E L S E A T R R A Z A EV A C V Y Q W E G U R F L L DE L O O U M R E T T R O H S PL J M I T M A N W Q R C B W RY N T K F R E H L Q V O T S OG Y X Z I B Y T I U Q E M Z FR H G N E F A C T O R I N G IA K G D L L I B K N A B X G TV E N T U R E P U H Q B Y R S

BANKBILL

BORROWING

CAPITAL

DEBENTURE

DEBT

EQUITY

EXTERNAL

FACTORING

GEARING

GRANTS

INTERNAL

LEASING

LEVERAGE

LONGTERM

MORTGAGE

OVERDRAFT

OWNERSEQUITY

RETAINEDPROFITS

SHORTTERM

VENTURE

ContributedbyKateDally

2�The EBE Journal – 2012 Issue 1

FAIRTRADE EXERCISELouie Traikovski, Oakleigh Greek Orthodox College

RationaleStudyingFairtradeenablesstudentstoundertakeanexaminationofBusinessEthics,CorporateSocialResponsibility,GlobalisationandOperationsManagement.Italsoshowsthemhowtheirdecisionsasconsumerscanimpactuponotherslessfortunate.Finally,studentsdeveloptheirresearchinganddebatingskillsusingFairtradeasthedesignatedtopic.

student skills

UnderstandVisitthewebsiteoftheFairTradeAssociationofAustraliaandNewZealandatwww.fta.org.auandanswerthesequestions.

1.Define: a.fair-trade b.thirdworld c.producer

d.supplychain

2.When,whereandhowdidFairtradelabellingoriginate?

3.WhichFairtradeproductscurrentlyexistinAustralia?

4.WhichhemispheredoesFairtradeworktowardsbetteroutcomesfor?

5.HowdoesFairtradebenefit: a.consumers? b.producers? c.importers? d.licensees?

6.Whyisitimportanttodistinguishbetweencertificationandlabelling?

7.WhatadvantagedoesFairtradecertifiedproductshaveoverorganicallycertifiedproducts?

8.HowcanstudentsbecomeadvocatesofFairtrade?

ResearchUsetheinternettoresearchanAustralianproductwhichsubscribestoFairtrade.Findout:1.Nameofproduct2.Nameofcompany3.Whencompanybecameinvolvedin

Fairtrade4.Whycompanybecameinvolvedin

Fairtrade5.Pricedifferencebetweenproductand

similarnon-Fairtradeproduct

DebateDivideclassintoproandconsidesandjudgingpanel.Eachgroupistoswaprolesforeachstatement.

Debatethesestatements:

1.Fairtradeaddsunfairlytocostofproductsforconsumers

2.Fairtrademeansthatthirdworldproducerswillneverlearntosurviveindependently

3.InvolvementinFairtradebycompaniesisanunnecessaryburdenwhichcompetitorsoftendon’tcarry.

�� The EBE Journal – 2012 Issue 1

A Australian Bureau of Statistics website (www.abs.gov.au)

Clickon“Topics@aGlance”,then“People”,then“CrimeandJustice”.

Uptodatestatisticstokeeptextbookscurrent.

Board of Studies NSW

ThefollowingareavailableontheBoardofStudiesNSWwebsite:

1.LegalStudiesSyllabus

2.“AssessmentandReportinginLegalStudies”document

3.LegalStudiesSampleAssessmentSchedule

4.LegalStudiesHSCExaminationRubrics

5.LegalStudiesPerformanceBandDescriptions

6.PastLegalStudiesHSCExaminationPapersandNotesfromtheMarkingCentres(notethatonlythe2011paperisbasedonthenewHSCLegalStudiessyllabuswhichwastaughtforthefirsttimeinterm4,2010/2011).

7.LegalStudiesSpecimenPaper

A – Z Survival Guide for the Teaching of the Board of Studies NSW Legal Studies Syllabus (Updated for 2012)

by Joe Alvaro, Marist College North Shore, NSW

B

8.SupportMaterialforLegalStudiesThis129pagedocumentcoversboththenewPreliminarycourseandtheHSCcourse.

Itcontains:–StructureandcontentoftheLegal

Studiessyllabus– Programmingthecourses– SamplePreliminaryandHSCcourse

programs– SamplePreliminaryandHSCassessment

tasks– Theresearchandinvestigationprocess– Analysingawebsite

Cases

FindcourtcasesattheAustralasianLegalinformationInstitute(www.austlii.edu.au)

Dot Points in the Syllabus

Attheendofeachtopiccuteachdotpointinthesyllabusoutandhavestudents(ingroups)rearrangethedotpointsinorderundereachunitofthetopic.

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23The EBE Journal – 2012 Issue 1

NSW Legal Studies Syllabus

Enhance TV (www.enhancetv.com.au).

Use television programs to teach parts of the syllabus.

Every week “Enhance TV” will email you the details of the Legal Studies TV programs that are going to be screened during the following week. All government schools and most private school are licensed by Screenrights to record programs from television.

Films

The following law films may be useful. Teachers should watch the film first themselves before showing it to the class. Lack of time may not allow the full film to be viewed. Parts of the film could be shown. Alternatively, students can be informed about the film and asked to watch it at home for homework.

– “The Castle”

– “Blue Murder”

– “Presumed Innocent”

– “To Kill A Mockingbird”

– “Dead Man Walking”

– “Adam’s Rib”

– “Witness For The Prosecution”

– “Lord Of The Flies”

– “Reversal Of Fortune”

– “Evil Angels”

– “Blue Murder”

– “Death And The Maiden”

– “Anatomy Of A Murder”

– “The Last Man Hanged”

– “Hotel Rawanda”

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F

Government Organisations

Students will need to be familiar with NSW Government Departments for Part II – The Individual and the Law (Resolving disputes with the state) in the Preliminary Legal Studies course. There is a directory at www.directory.nsw.gov.au/atoz.asp (click on “Portfolios”), which also gives the name of the relevant minister.

Tribunal websites like the Native Title Tribunal website is useful for the Preliminary Legal Studies course (Part I: The Legal System – Unit 5 – Law reform in action – Native Title) with multimedia resources available (www.nntt.gov.au).

“Hot Topics: Legal Issues In Plain Language”

Four issues are published each year by the State Library of NSW Legal Information Access Centre (www.legalanswers.sl.nsw.gov.au/hot_topics/).

“Hot Topics” are available in all public libraries in NSW and by subscription. Some issues are also available on the website (e.g. “Young People and Crime”, “Consumer Credit”, “Courts”, “Cyberlaw” and “Prisoners”). The Hot Topics Live Event “Young People and Crime” held in 2011 was recorded and is available on the website.

“Private i – Your ultimate privacy survival guide” Magazine

Aimed at youth, this magazine is available from www.privacy.gov.au (click on “Privacy Youth Portal”). Also available is the video “Your privacy is important think before you upload!” with teaching resources.

Privacy can be taught as an example in the preliminary course ( Part II: The Individual and the Law – Unit 3 – Contemporary issue: The individual and technology).

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Judges in action

As cameras are not allowed in courtrooms in Australia, show some cases from the “Judge Judy” and “Judge Joe Brown” tel-evision programs (available on YouTube), especially when teaching about the terms “plaintiff” and “defendant” and resolving disputes between individuals. Compare the court cases with how they would be con-ducted in Australia.

Know the syllabus

Students should be given a copy of the syllabus and they should use it regularly in class and as a guide when studying for examinations.

The “Principal focus” and “Themes and challenges” sections in each topic should not be ignored. Students should be learning the skill of using the syllabus to learn the subject matter in year 11 (e.g. ticking off dot points,writing in relevant legislation and cases, adding own notes etc. ).

“Themes and challenges” Activity – At the end of each part/topic put up five sheets of butchers paper on the walls of the classroom with each dot point under “Themes and challenges to be incorporated throughout this topic” for the relevant part/topic on each sheet. In pairs students go around the classroom and write concepts, terms, examples, legislation, cases, institutions, and media reports which relate to each theme and challenge. When all students have written on each sheet, present the sheets to the whole class and discuss what has been written.

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Legislation

Find Commonwealth legislation at www.austlii.edu.au.

Find NSW legislation at www.legislation.nsw.gov.au

Mock Trial Competition

The Law Society of NSW (the representative body for all solicitors in NSW) conducts this competition where students form teams and participate in a court case taking on roles such as barristers and witnesses, against other schools. The Mock Trial Competition can be referred to during Legal Studies lessons with team members speaking about their experiences during class discussions. Legal Studies students may wish to be in the audience during competition rounds.

See www.lawsociety.com.au/mocktrial

National Law Week

Held each year (14 – 20 May in 2012). See www.lawweek.com.au

Organisations

In “Part II: The individual and the law” in the Preliminary Legal Studies course students need to learn about non-legal methods of resolving disputes with the state, including “interest groups, including non – government organisations”.

Small group oral presentation task Allocate one of the following N.G.Os./interest groups to a small group:

•

N

O


– GreenpeaceAustraliaPacific– FriendsoftheABC– Women’sElectoralLobby– Justiceaction– ActionforAboriginalRights– FriendsofCallanPark– EnoughIsEnough– Choice– RighttoLifeAustralia– Anotherinterestgroup/N.G.O.after

teacherassessessuitability.


P

Studentsresearchthefollowingabouttheinterestgroup/N.G.O.(usingtherelevantwebsiteandotherinformationtheymayfind):

– Theneedforthegroup/Whyitwassetup?

– Typeoflawsthegroupisinterestedin.

– Statedecisions/lawsithaschallenged/ischallenging.

–Eventsandactivities– Howeffectivethegroupisin

achievingjusticeforindividuals/itsmembers.

Parliament

BoththeNSWandAustralianParliamentwebsitesareusefulresourceswhenteachingtheLegalStudiessyllabus.Studentscanvisittheselawmakinginstitutions(“statutelaw”)viavideoonthewebsites,ABCtelevisionandradio(forFederalParliament)orduringafieldtrip.Playthe“PasstheBill”gameontheAustralianParliamentwebsite(under“Educationresources”)whichisveryusefulwhenteachingtheprocessoflawmakinginFederalParliament.

Internet task:

Part II – The individual and the law

Profile – My State Member of Parliament

*GototheNSWParliamentwebsiteatwww.parliament.nswgov.auClickon“LegislativeAssembly”Clickon“Members”onthelefthandsideScrolldownto“ContactingYourLocalMember”andclickon“DirectoryofMembersofParliament”Clickon“MPsbyelectorate”Findyourelectorateandclickonit.

Note: If you do not know your electorate you can telephone the State Electoral Office on 1300 135 736, or the Legislative Assembly Procedure Office on (02) 9230 2355.

•



1.MylocalStateMPis___________________________________________________ .

2.Iliveintheelectorateof________________________________________________.

3.Myelectoratecoverstheprincipalsuburbs/townsof_________________________

____________________________________________________________________

Checkthatthesuburb/townyouliveinisinthislist.

4.MP= _______________________________________________________________

5.StateMPs.whorepresentanelectoratearefoundintheLowerHouseoftheNSWParliament(LegislativeAssembly)/UpperHouseoftheNSWParliament(LegislativeCouncil).Circle the correct answer.

6.a)IdentifythepoliticalpartyyourMPisamemberof

____________________________________________________________________

b)MPswhoarenotmembersofapoliticalpartyaredescribedas

__________________________________________________________________

7.a)IsyourMPaMinisteroraShadowMinister?______________________________

Ifyes,identifytheirportfolio/s*

____________________________________________________________________

* Portfolio – a minister’s particular area of responsibility.

b)ExplainthedifferencebetweenaMinisterandaShadowMinister.

____________________________________________________________________

____________________________________________________________________

____________________________________________________________________

____________________________________________________________________

8.Contactdetails:

Address_____________________________________________________________

Phone____________________________Fax_____________________________

Email______________________________________________________________



9.a)WritedownonepositionyourMPhasheldinNSWParliamentinthepastwhichtheynolongerhold(see“ParliamentaryActivity”)

____________________________________________________________________

b)Forhowlongdidtheyholdthisposition?

____________________________________________________________________

10.a)Thepopulationofmyelectorateis ___________________________________

b)Thenumberofpeopleenrolledtovoteinmyelectorateis ________________

c)Explainwhythefigurein10bislowerthanthefigurein10a.

____________________________________________________________________

____________________________________________________________________

____________________________________________________________________

____________________________________________________________________

11.IsthereanyinformationundertheMP’s“PersonalProfile”?________________

Ifyes,writedownonethingyoudidnotknowabouttheyourMP.__________________________________________________________________

Ifno,identifyareasonwhythe“PersonalProfile”isblank? ____________________________________________________________________

____________________________________________________________________


duringpausingistoletstudentsknowthattheywillhavetimetothinkaboutthequestionafteritisasked(Turneyetal.,1983),havestudents“jotdownideas”afterthequestionisasked(Woolfolk,1990,page410)orhavestudentsinitiallydiscussthequestioninpairswithanotherstudent(Woolfolk,1990).Thisstrategyenablesteacherstocaterforindividualdifferencesintheclassroom,givingallstudentsanopportunitytohaveagoatthequestion.

3. Answering one’s own questions–“Whenyourquestionismetwithblankstares,rephrasethequestionoraskifanyonecanexplaintheconfusion”(Woolfolk,1990,page411)insteadoftheteacherjustgivingtheanswer.

4. Repeating all or many answers –Thiscan“slowdownthepaceofalesson...leadstounnecessaryteacherintrusionindiscussionandinhibitsthedevelopmentinpupilsofworthwhilelisteninghabits”(Turneyetal.,1983,page80)asstudentsmaystoplisteningtoeachotherastheyrelyontheteacheralwaysrepeatingtheanswer.

5.Ignoring some students–Makeanefforttocoverallareasoftheclassroomwherethestudentsaresitting.“Itisnaturaltofavourunconsciouslycertainpartsoftheroomandtodirectmorequestionstopupilsseatedinthoseareas.Forexample,pupilsseatedatthesidesofthefrontoftheclassroommaybeignoredwhentheteacherstandsveryclosetothecentrefronttables”(Turneyetal,1983,page75).Allowallstudentstothinkaboutthequestionratherthancallingonastudentandthenaskingaquestionasthismaycausesomestudentstoswitchoff(althoughcallingonastudentmaybeaneffectiveclassroommanagementtechniqueifaparticularstudentisnotpayingattentionormayhelpastudent

Questioning

Withallthecurrentemphasisontechnology,basicteachingskillssuchasteacherquestioningcanbeoverlooked.EffectivequestioningcanprovideusefulfeedbacktoteachersabouttheknowledgeandskillsstudentsaregaininganditcanallowstudentstopracticetheiroralcommunicationskillswithregardstoLegalStudies(syllabuspreliminarycourseoutcomeP9.“communicateslegalinformationusingwell-structuredresponses”).Howeverthefollowingshouldbeavoidedwhenquestioning:

1. Over-Questioning –Ithasbeenargued(Dillon,1981)that“forchildreninquestion-dominatedclassrooms,thequestion-answerrelationshipexistingbetweenteacherandtaughtmayinduceastateofdependencyandpassivityinthepupils.Caremustbetakentoensurethat,inaskingquestionsoftheirpupils,teachersdorequirethoughtfulprocessesandquestioningisnotsimplyamechanicalprocessinwhichthepupilisalwaysasubordinatepartner”(Turneyetal.,1983,page79).Onewaytoavoidthissituationistoinvitestudentstoaskquestions(Turneyetal,1983)whichmayrequireteacherstoallowtimeforthisduringtheirlessonsastheytrytogetthroughthesyllabusbytherequireddeadlines.

2. Not pausing for enough time –Givestudentsenoughtimetothinkaboutquestions.“Whenteacherslearntowaitatleastfivesecondsbeforecallingonastudenttoanswer,studentstendtogivelongeranswers;morestudentsarelikelytoparticipate,askquestionsandvolunteerappropriateanswers(Woolfolk,1990,page410).Strategiestomanagethesilence


Q


whoisquiettoparticipateandanswerquestions).

6.Students calling out answers–Establishtherulethatstudentsmustputuptheirhandandwaittobeaskedtospeakorstudentswillnotfeellistenedtowhentheteacherisnotabletorespondtonumerousanswersbeingcalledoutinresponsetoaquestion.“Itisadvisabletoavoidquestionsintheform“Doyouall…?”and“Doeseverybody….?”as“theresponsetosuchquestionsislikelytobedisorderlychorusanswering”(Turneyetal.,1983,page80).

7. Accepting answers without making comments if they are wrong or not entirely correct–“Whateveryoudo,don’tletmisunderstandingsgouncorrected”(Woolfolk,1990,p.411).

8.Double or multiple questions –Thisformofquestioningcanbeaproceduralobjectioninacourtroomandissometimesusedwhencommunicatingwithotherssocially(e.g.“Howwereyourholidays?“Theywentquickdidn’tthey?”,Doyoufeelrested?”).Theyleadtoconfusionandshouldbeavoidedintheclassroomaswell(e.g.“whatistheroleofcourtsinourlegalsystemandhoweffectivearetheyinresolvingconflictandachievingjustice?”).Thesetypeofquestions“requirepupilstoperformseveraloperationssimultaneouslyandmaydiscouragepupilswhoareabletocompleteonlyoneofthese”(Turneyetal.,1983,page75).

“Law Report” radio program

QualifiedlawyerDamienCarrickpresentsthisprogramonTuesdaysat5.30pm(repeatedonWednesdaysat5.30am)on

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ABCRadioNational.ItfrequentlycoverstopicsintheLegalStudiessyllabus(e.g.aprogramonthefirstInternationalCriminalCourtjudgementairedon20March2012).Onthewebsite(www.abc.net.au/radionational/programs/lawreport)pastprogramsandtranscriptsareavailable.Radioprogramscaterforstudentswithauditorylearningstyles.

State Library of NSW – Legal Information Access Centre (L.I.A.C.)

Afreeservicewithspecialistlibrarians.Studentsandteacherscanaccessthe“HSCLegalStudies”sectionofthewebsite(www.legalanswers.sl.nsw.gov.au).

Anexcursioncanbeorganisedtothecentrewhereaspecialistlibrarianwilltalktoaclassabouthowthecentrecanhelpwithresearchassignments.ThiswillalsogivestudentsanopportunitytovisittherestoftheStateLibraryofNSW.Studentsshouldbeencouragedtovisitthecentreontheirownaswell,afterschool,duringtheweekendandduringschoolholidays.

L.I.A.C.islocatedintheStateLibraryofNSW,MacquarieSt.,SydneyTelephone:(02)92731558Email:[email protected]

Textbooks

Textbooksshouldnotbetreatedassyllabusesbyteachersorstudents.Textbookscanleavepartsofthesyllabusoutoraddcontentthatisnotpartofthesyllabus.Somepartsofatextbookmaynotbeuptodate(e.g.notcoveringtheAustralianConsumerLawwhichcommencedon1January2011intheConsumersHSCOption).Theclasstextbook



shouldbesupplementedwithotherresourceslike“HotTopics”aboveandtheLegalStudiessectionofNSWHSCOnlineatwww.csu.ed.au/.

Universities

AspartofitsSchoolActionPlan,theUniversityofWesternSydneyhasaregisterofacademicspeakersavailabletospeaktostudentsinschools,includingLegalStudiesstudents.Emaill.venables@uws.edu.auforalistofspeakers,theirareasofexpertiseandsamplesoftopics.Phone(02)96787423

TheBondUniversityFacultyofLawconductsanannualmootingcompetitionforschools.Visitwww.bond.edu.au/competitions.

TheUniversityofNSWconductstheannualessaycompetitionforyear11and12students(www.ilc.unsw.edu.au/news/2012/.../unsw-law-essay-competition).

Verbs (Key terms) in questions

Studentsmustanswertothedirectivetermsinquestions.Forexample,studentsneedtobetaughtthatiftheyareaskedto“identify”andtheystartoutliningordescribingtheywillnotgainmoremarksandmaybewastingtimethatshouldbespentonotherquestionsintheexamination.

“What’s New” from the NSW Department of Fair Trading

Visitwww.fairtrading.nsw.gov.auClickon“SubscribetoeNewsservices”.KeepuptodatewithallthelatestnewsfromtheDepartmentofFairTradingviaemailupdates.ExcellentresourcesfortheHSCConsumersOption.

Excursions

Studentsandteachersareabletoentercourtroomsincourts(e.g.Local,District,Supreme)andwatchcourtcases.Ithasbeenknownforjudgestospeaktogroupsofstudentsandanswerquestionsifthereissomefree/quiettime.

StudentsandteachersareabletowatchcasesintheConsumer,TraderandTenancyTribunal.TherearevenuesalloverNSW.Gotowww.cttt.nsw.gov.au,thenclickon“DisputeResolution”,thenclickon“Hearinglists”.

TheSyllabusstatesthat“itisstronglyrecommendedthatifpossiblestudentsshouldhavetheopportunitytoobservetheoperationofoneormorecourtsortribunalsincivilandcriminalcases”(page11).

Studentscanlearnmoreaboutpost-sentencingoptionsbyvisitingMaitlandGaolandgoingonaguidedtourgivenbyanex-inmateorex-warder(www.maitlandgaol.com.au).

You

Havingpairofscissorshandywhilereadingnewspapers(includinglocalnewspapers)canbeusefulwhenteacherscomeacrossnewsreports,opinioncolumnsandletterstotheeditorwhichrelatetothesyllabus,insteadofthinkingthatsomethingmayberelevanttouseinclassandthenturningthepageandforgettingaboutit.A“MediaReport”liketheonebelowcanhelpstudentsreflectonanewspaperarticleandlinkittothesyllabus.Itcanalsohelpwhentheyarestudying,providingstudentswithasummaryofthearticle.

Media Report •

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Legal Studies Media Report

Source–Newspaper name: ____________________________________________

–Date:________________________________________________________

Article – Writer: ______________________________________________________

– Title: ________________________________________________________

Description of the article: ___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

Legal issues: ___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

Legal terminology used: ___________________________________________________________________

___________________________________________________________________

Link to the Legal Studies Syllabus:

–Themesandchallenges:

___________________________________________________________________

–Studentslearnabout: ___________________________________________________________________

–Studentslearnto:______________________________________________________________________________________________



“Zero tolerance” and other terms – Learn the legal terminology

Studentsneedtolearnanduselegalterminology.Play“DefinitionBingo”.Writedownlegaltermsonthewhiteboardordisplaythemusingacomputer.Studentstochoosesixtermsandwritethemdownontheir“Bingo”card(seebelow).Teacherreadsoutthedefinitionofeachtermandstudentscrossoffthecorrespondingtermiftheyhaveitontheircard.Firststudenttocrossoffallsixboxesisthewinner.


Z References

BoardofStudiesNSW.,2009,LegalStudiesStage6Syllabus,Sydney

Dillon,J.T.,1981,‘ToQuestionandNottoQuestion:II,Non-QuestioningTechniques’,Journal of Teacher Education,32(6)

Turney,C.etal.,1983,Sydney Micro Skills Redeveloped Series 1 Handbook,SydneyUniversityPress,Sydney

Woolfolk,A.,1990,Educational Psychology,PrenticeHall,NewJersey

Definition Bingo


Economics

Teachersmayfindthefollowinggame–calledtheUltimatum Bargaining Game - usefulinstimulatingstudentinterestinissuesrelatedtoequityandfairnessineconomicdecision-making.Theaimoftheultimatumbargaininggameistoillustratetheconceptsoffairnessandequityevenin‘win-win’situationswherebothpartiescanbebetteroffiftheyagreetodoadeal.

Inthisinteractivegame,theclassissplitequallyinto‘proposers’and‘responders’.Soinaclassof30,15studentstakeontheroleofaproposerandtherestareresponders.Proposersarethenaskedtopair-upwitharesponder.Sotherewillbe15pairs.Theproposeristhenaskedtosplitahypotheticalamountofmoney(say$10)withtheresponderinwhateverwayheorshechooses.Forexample,theproposermightoffera70:30splitwiththeproposerkeeping$7andtherespondergetting$3.Therespondercaneitheracceptorrejectthisproposal.Iftheofferisrejectedthenbothpartiesreceivenothing.Iftheofferisacceptedthenbothpartiessplitthe$10aspertheofferproposed-$7fortheproposerand$3fortherespondent.Whatevertheoutcome,inthenextroundtheproposerhastofindadifferentpartnertopair-offwith.Perhapsplayfiverounds–sotheproposerhasfivedifferentclassmemberstostrikeadealwith.Noteonlyonesplitisofferedpertradingpartneranditiseitheracceptedorrejected–itisaoneoffdealwithnonegotiationsinvolved-andthentheproposermovesontothenextresponder.

Games that Enhance Learning in Economics


Thenswitchtherolesaround–proposersbecomerespondentsandviceversa–andplayanotherfiverounds.Afterthetenrounds(orwhatevernumberofroundstheteachersthinksfeasibleintheavailabletime)eachstudentcalculateshowmuchmoneytheyaccumulated–soteachersneedtokeeptrackofdonedeals.Teachersshouldrecordallthesuccessfulandtheunsuccessfuldeals.Thendeclarewhichstudentsmadethemostamountofmoney,whocamesecondandhowmuchetc.

Thisisaformoflearningthroughinteractiveexperiments.Itisafungamebutitalsohighlightstheextenttowhichindividualbehaviourisrationalfromastrategicpointofview,andtheroleoffairnessinbargaininggames.

Thetheoryoftherationalconsumertellsusthattheresponderwillacceptanyamountabove$0,sincetheywouldbebetteroffthanhavingnothing.However,inthisexperimentyouwillseethatnarrowself-interestistemperedbynotionsoffairnessandequity.Forexample,iftheproposerofferstosplittheamountbygiving1ctotheresponder(andwishingtokeep$9.99forthemselves),theresponderwillmostlikelyseethissplitasunfairandrejecttheoffer,sothattheproposalwillendupwith$0aswell.Thisshowshowintheultimatumbargaininggame,fairnesscomesintoplayandwillimpactonhowtheplayersmaketheirdecisions.

Ihaveplayedthisgamewhere500studentsparticipatedbutonlyplayedtwo


Economics

rounds.Theaverageproposaldemandwas$6.01forround1and$6.09forround2.Theresponderacceptanceratewas64%forround1and62%forround2.Thebargraphs1and2illustratetheresultsofround1andround2,showingthenumberofproposalsacceptedandrejectedateachprice.Thepricesintheexperimentareroundedofftothenearestdollarforthisanalysis.

R ound 1 R esu lts

0102030405060708090

100

1 2 3 4 5 6 7 8 9 10P ro p o ser D em an d

Num

ber o

f Pro

posa

ls Rejec tedAccepted

Figure1

Figure2

Theproposalsareheavilyconcentratedtotherightofthe$5mark,showingthatmostproposerswantedmorethanhalfofthemoney,yet$5wastheproposalwiththehighestfrequency,andmostlyseenasfairbytheresponders.Allproposalslessthan$5–altruisticbehaviour?–wereaccepted.Forproposalshigherthan$5,manywererejectedandregardedas

R o und 2 R esults

0

5

10

15

20

25

30

35

1 2 3 4 5 6 7 8 9 10Pro p o ser D em and

Num

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f Pro

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Rejected

Accepted

“unfair”or“spiteful”andtheresponderswantedto“punish”thissortofbehaviorevenatacosttothemselves–bothpartiesendupwithnothing.Inround2,therearerelativelymoreproposalshigherthan$5thaninround1.Thiscanbeexplainedbythelargeamountofacceptedproposalsof$5inround1,andinresponse,proposerswantedtotryandgetmoreinround2.Thisalsoledtomorerejectionsinround2,whichagainshowstheconsiderationoffairnessintheresponders’decision.

Thefollowingstudentcommentsshowthestudent-teacherinteractionprocess.Theteacher’scommentsareinitalics.

Student 1:Interestinglittlegame.IwasaproposerandIoffered6–4twice.Itwasacceptedthefirsttimeandrejectedthesecondtime.Notingthatunlesstheofferwas10–0,wheretherespondershouldbeindifferentwhethertoacceptorreject,allotheramounts,ifaccepted,willbeofbenefittobothparties.Iguessitdemonstrateshowpeoplereacttorealorperceivedinjustices.Apersonwouldrather,outofspite,havebothpartiesgetnothing,thanacceptanunfairdistribution.Ithinkat5–5,itshouldbe100%acceptancerateas1)acceptancewillofferbothpartiesbenefitsand2)it’safairdistribution.Soasthedistributiongetsmoreandmoreunfair,theresponderwouldhavetodecidewhethertoaccepttheunfairdistributionorpunishtheproposer.

Ithinktheremustbeatippingpoint,whereat,anythinglessfair,theresponderwillreject,andanythingfairer,theresponderwillaccept.Thetrickfortheproposeristofindthatpointandproposethatamountfromthatpointon.Toobadthegameisonlyrepeatedonce!

Student 2:OnethingIjustthoughtofwas,doesthatfactthatweareusingvirtualmoneyaffectit?i.e.becausewewillnotgetany‘real’worldbenefits,it’seasierforusto


Economics

reject?Maybeyoushouldtrythiswithrealmoneynexttime.

Great comments. You have got out of it exactly what I wanted you to get out of it. Rationally you should accept any offer greater than zero as it is a win-win situation. But justice, equity and fairness issues intrude leading to an equity-efficiency trade-off. That is why equity issues are so important.

Student 3:IguessIamgettingafreemealbyclickingaccept.ButIdon’tlikesomeoneelsegettingmorethanme.Butthegameisstronglybiased(proposerdecidesthesplit)where’sthebargainingpartofthisgame?Itisjustonewaybargaining.Ithinkweshouldbeallowedtoproposeacounterofferforthisgametobeaproperbargaininggame.

That is called envy. It also means that your utility or happiness depends on your relative position among others. This may well be a characteristic of many consumers but it is different that the simple self-interested individual behavior that we commonly assume. On your second point, I agree.

Student 4: Ithinkthegamealsodependsonthenumberoftimesorroundswhichyougettoofferandaccept.Forexampleiftherewasonlyoneroundandtheofferergivesmeanofferof9 –1theonlyrationalthingformetodowouldbetoacceptitasIwouldgetnothingintotalotherwiseand1isobviously>0.Nowifthereare2roundsthewholeequationchanges.Iftheguyoffersme9 –1Iwoulddeclineandbothofuswillgetnothing.IfIacceptedtheofferIwouldget$1fortheroundbutitwouldsendmyoffererthewrongmessage.Itwouldmaketheoffererbelievethat9 –1isfairandthatIamactuallyhappywith9 –1andhencehewillcontinuetomakeanother9 –1offer.NowthisisnottruebecauseIcanactuallygetmoremoneythanjustatotalof$2,althoughthereisan

elementofrisk.Nothingventured,nothinggained.

AfterIdeclinethefirstoffertheoffererwillrealisethatofferingme9 –1wouldmostlikelyresultinanotherrejection.Alsoifhemakesanofferof8–2hewouldfeelthathewouldbetakingariskandheactuallyhasmuchmoretolosethanme(responder).Sothereisahighchancethathewillhedgehisbetsandoffer6–4or7–3whichIwouldhappilyaccept.Asthenumberofroundsincreasestheoffererwillhavetooffermoreandmoretokeeptheresponderhappy.Asthenumberofroundsreachedinfinityoraverylargenumbertheofferings,itshouldactuallybecome5–5.

I agree. This is the difference between one-off games and repeated games.

Student 5:Ifthesumofmoneyusedintheexperimentwas$10,000theresultswouldbeverydifferent(assumingrealmoneywasused).Ifwewereoffered10%oftheamount,Ithinkmostpeopleintheirrightmindwouldtakethe$1000,noquestionsasked.Iwouldassumeno-onewouldreject$1000becauseoftheinequality.SoIguesstheexperimentonlyappliesinconsiderationofthesefactors;acomputedsumwasused,andthesumwasonly$10.

Not sure about that. Witness the breakdown of World Trade Organization talks. The rich countries were offering cuts in agricultural protection levels and subsidies. But the developing countries said no - the process was inequitable. The talks collapsed. Poor countries walked away from deals that would have considerably increased their export income.

Whatthisgameindicatesisthatifthetaskispresentedinaninterestingwaystudentswillvoluntarilyjoin-inanddeepentheirunderstandingofconceptsandbestimulatedtoasksearchingquestionsofthematerial.


EBE International Teacher ProfileNAME: Melanie WalkerLOCATION: Hong KongSCHOOL: Australian International School Hong KongPOSITION: Humanities TeacherTIME OVERSEAS: This is my 4th year in Hong Kong

1.WhatareyoudoinginHongKong?

IamteachingattheAustralianInternationalSchool.Also,livingheremeansthattravelisoftenapossibility.Iamconstantlylearningaboutthejoysandfrustrationsoflivinginadifferentcountry.

2.Howdidyoufindyourselfinthisjob?

ThejobwasadvertisedinTheAustraliannewspaper.AfriendofminehadpreviouslyworkedhereandshehadtoldmequiteabitaboutlivingandworkinginHongKong.

3.WhatwereyoudoingbeforeyouleftAustralia?

TeachinginSydneyandtheninNewcastle.

4.WhatwereyourfirstimpressionsofHongKong?

AsIarrivedlateatnight,atfirstIdidn’tseemuch.Thefollowingmorning,IopenedthecurtainstodiscoverVictoriaHarbour.Itwasprettyamazing.ThefirstdaywasveryoverwhelmingandIcertainlygotlostwanderingaroundCentralHongKong.

5.YouteachBoardofStudiesNSWcoursesattheschool.Whatsubjectsdoyouteach?

BusinessStudies,CommerceandGeography

6.WhataresomechallengesyouhaveteachingthesesubjectsinHongKong?

ItisreallyeasytofallintothetrapofthinkingallthestudentsunderstandAustralia.SomeofthemhavenevervisitedAustralia,letalonelivethere.InoneofmyfirstYear10Geographylessonson‘LandandWaterManagement’,agirlpolitelyraisedherhandtoaskwhoMurrayDarlingwas.Iamalwaysremindingmyselfto‘assumenothing’.

7.HowdoyouincorporateAsiaLiteracyintoyourlessons?

AsiaLiteracyisintegratedinavarietyofwaysatourschool.AllstudentslearnPutonghua,whichistheofficialnameforStandardChineseinthePeople’sRepublicofChina.Thisisawonderfulexperienceforourstudents,asitextendsthembeyondtheHongKonglocalCantonesedialectandtheEnglishusedwithintheclassroom.

Beyondtheclassroom,wecelebrateaspectsofChinesecultureasmuchaspossible.ChineseWeekfocusesonmusic,food,activitiesandgames.

NSW


Profile

StudentsandstaffalsohavetheopportunitytotravelintomainlandChinaforarangeofsportingcompetitionsandculturalactivities.

8.Howlonghastheschoolbeenoperating?

Theschoolwasestablishedin1995.

9.ArealltheteachersattheschoolfromAustralia?

Theschoolisatrulyinternationalorganisation.WhilstmostteachersarefromAustralia,wealsohavelocalChineseteachersaswellasstafffromNewZealand,AmericaandtheUnitedKingdom.

ThereisahealthyrivalrybetweentheteachersfromMelbourneandSydney.

10.Whatarethestudentslikethatattendtheschool?

Thestudentsarewonderful.Theyarereallydiligentandkeentodowellintheirassessments.

Approximately70%ofthestudentsareAustralianPassportholders,althoughthetraditional‘expat’numbersaresmallerthanyouwouldexpect.

Moststudentsarewell-travelledglobalcitizens.

11.What’shappeninginthebusinessworldthereinHongKongatthemoment?

ThereisalotofdiscussioninthemediaaboutChina’sgrowth.Manysectorsseemtobeperformingwellincludingconstructionandresidentialproperty.

GamingrevenueinMacauhasbeenincreasing,whichmanyChineseseeasignoffutureprosperityandsuccess.

12.WhatadvicedoyouhaveforBusinessStudies,Commerce,EconomicsandLegalStudiesteacherswantingtoteachoverseas?

Iwouldhighlyrecommendgainingsomeexperienceoverseas.Evenifitisn’tonyour‘bucketlist’,Iwouldrecommendthatpeopleconsiderit.

WhilstyoumaybeawayfromNSWprofessionaldevelopmentopportunities,Ithinkteachingheregivesyouanewskillsset–italsoexpandsyousenseofindependence,adventure,adaptabilityandempathy.

IwoulddefinitelyrecommendundertakingaTESOLcourse.

13.Hasyourpatienceeverbeentested?

Yes–thetaxiridesherecansometimesfeelliketherollercoasterattheSydneyEasterShow.

14.WhatdoyoumissthemostaboutAustralia?

Ireallymissmyfamily.IalsomissAustraliansupermarkets,blueskiesandapatchofbuffalolawntocallmyown.

If you know someone teaching overseas and think our members would benefit from hearing about their experiences please contact: [email protected]

Imagesource:WikimediaCommons

�0 The EBE Journal – 2012 Issue 1

Plan Your Own Enterprise CompetitionWinning entry 2011 – ‘Ba Ba Manure’ by Jessica Kirkpatrick of Ballarat Grammar School

Excerptsincludedbelow.Thefullbusinessreportcanbefoundonourwebsiteinthemembersloginsection.

Judgescommentsonwinningentry2011includedbelow.

For2012Entrydetailsseepage43.

Appendix 6 – Business card

Appendix 4 – Break Even Analysisand Contribution Margin

Appendix 7– Advertisement to be displayed in shops

The tabs are removable and act as business cards and the poster is brightly coloured to attract attention. To be printed at A4 size.


Competition

Ba Ba Manure – Jessica Kirkpatrick 2011 National Winner – Division One

Judges Comments

Overview of the CompetitionCPAAustraliaPlanYourOwnEnterpriseCompetitionisavehiclethroughwhichstudentscandevelopanddemonstratetheirunderstandingofsmallbusinessplanning,theconceptsandprocessesthatmakeupaplan,andapplytheirentrepreneurialandinnovativethinkingtoanopportunityorneedtheyhaveidentifiedinamarket.

Weencouragestudentstokeeptheproductorserviceandthescaleofthemarketsimpletoavoidtheplangettingtoounwieldyandcomplex.(Manyofthemorecomplexplansweseeasjudgesdon’tquite‘addup’whenyouconsiderthemarketassumptions,theforecastedfinancialsand‘break-even’andthefutureprospectsofthebusiness.)

Overview of the Plan Jessica’sconceptwastotakeawasteproduct–sheepmanure–andturnitintoacommercialproductinawell-recognisedmarket,atanenterprisescalewhichshecouldmanage.Herhands-onknowledgeandexperienceoflivingonasheepfarmenabledhertodescribethepracticalitiesofrunningsuchanenterprise.Itisasimpleconcept,andtheplaniswellthought-throughandlogical.

The Name and Logo Thenameandlogoislightandbrighttocapturetheattentionsofcustomers,clearlysignallingthepurposeofthebusinessandtheproductitisselling.

Mission statement Themissionstatementsetsaclearpictureoftheenterprise;“providingwellpackagedhighqualityandaffordablebagsofsheepmanure”toadefinedmarketarea,andprovidingaservicetofarmersbycleaningoutunderneathshearingsheds.

Prime Function Jessicaeffectivelydescribedtheprincipleprocessofthebusiness–negotiatingwithfarmerstocleanoutfromundertheirshearingsheds,extracting,packaginganddistributingthemanure.

Business Location Principlebusinesslocationwillbethefamilyfarm,withroadside“honoursystem”distributionpointsatToolernVale,Beaufortandatthehomefarmgate.

Legal Structure Jessicaelectedtooperatethebusinessasapartnershipwithherbrother.Theplansillustratesthatshehadalsoresearchedtheoptionofbeingasoletrader

Staffing Requirements Theproductionprocessforextractingthemanurefromunderthesheds,packaging,stackingandloadingthebagswasusedtodescribetheinterchangeablejobsinvolvedinproduction.Shedescribedasetofcharacteristicsshewasseekingfromemployees,whichprovidesagoodinsightintohowsheexpectedthepeopletoworkasateam.


Competition

TheplandidnotdescribetheotherrolesthatwillberequiredinthebusinesssuchasAdministration,Finance,BankingandCustomerService(enquiriesandordertaking).

Licensing and Legal requirement Asamicroenterprise,andbeingasimpleenterprisebelowtheGSTthreshold,thereareminimalrequirements.Jessicadidnotaddresstheneedtoregisterthebusinessname.Asthebusinessexpandsandgrows,therewouldneedtobemoreinvestigationintobusinessregulationandmanagementofriskthroughinsurancesandqualitysystemsandsoforth.

Marketing Plan TheMarketingPlancoversthefourP’sandaSWOTanalysis.

Jessicahastakenveryhands-onapproachtoseekingfeedbackfrompotentialcustomerstoassessthepotentialdemand.

Tokeepthepricebelowcompetitors,Jessicahasdecidedonaverylowcostdistributionsystemofsellingretailatroad-sidestallsinthreelocationsanddeliveriesforbulkorders.

ThemarketingplanwasappropriateforthetypeofenterpriseJessicawasresearching.

Financial Plan – Financial Goal Thefinancialgoalofthebusinessistoprovidethepartnerswithpaidlabourofapproximately$3421paplusa50%tshareofthebusinessprofitof$7232pa.

Start-up Costs Thestartupcostsforthistypeofmicroenterpriseareminimal.

Profit & Loss Forecast AProfitandLossForecastforthefirstmonthwasprovidedshowingtheenterprisewouldbeimmediatelyprofitable.

NoP&Lwascalculatedfortheendoffirstyear.

Cash Flow Forecast Jessicahadestablishedthattheprimaryconstraintonthisbusinesswastimeavailablebythepartnerstoproducetheproduct,ratherthantryingtopredictdemandfromcustomers.

Thebreakevenshowsthebusinesswillneedtosell53bagsamonthtobreakeven.

Future Prospects Jessica’sfirstconsiderationforfutureprospectsisonwhetherthebusinesscouldaffordavacuummachinetostartreducingmanuallabourtoextractthemanurefromunderthesheds.

Thenextstageingrowthwastoconsidermoredistributionpoints.

Nolongertermconsiderationwasprovidedforfutureprospects.

Overall ThejudgesacknowledgetheworkJessicaputintothisplan.Shewasabletodemonstratethroughtheplanthatshehadagoodunderstandingofthesmallbusinessplanning.Theentrepreneurialelementofthisplanwasturningwasteintoacommercialproduct








Submission

ECONOMICS & BUSINESS EDUCATORS NSW

Submission to the Australian Government – White Paper on Australia in the Asian Century 26 February 2012

EconomicsandBusinessEducatorsNSW(EBE)isawell-respected,longestablishedprofessionalassociationforteachersofEconomics,BusinessStudies,LegalstudiesandCommerce.Professionaldevelopment,teachersupportandrepresentationarethereasonsforitsexistence.

EBEwasestablishedto“contributetohighqualityeconomicsandcommercialeducationinschools,tertiaryinstitutionsandinthegeneralcommunity”.EBEisanincorporated,publiccompanywithmembershipopentoallinterestedintheteachingofBusinessStudies,Commerce,EconomicsandLegalStudies.

EBEapplaudstheFederalGovernmentsinitiativeofcommissioningaWhitePaperonAustraliaintheAsianCenturyandurgestheGovernmenttoconsiderthevitalrolethatschoolsplayinshapingtheknowledge,skills,attitudesandvaluesoffutureAustralians.

ThroughtheirstudiesofBusinessStudies,Economicsandintheyoungeryears,Commerce;studentscanlearnabouttheAsianCenturyanditsimpactonAustraliaandworldeconomies.TheycanexamineandanalysestatisticssuchasthoseincludedintheDecember2011IssuesPaper–andtakewiththemintotertiarystudiesandtheworkplace,arealunderstandingoftheimpactthediverseregionwhichisAsia–hashadontheirlivesanditspotentialtoaffecttheirfuture.

Properlyresourcedandsupported,includingbyadequateteacherprofessionaldevelopment;AustralianschoolscanincorporateteachingaboutAsiainthecurriculumandensurethatstudentsemergefromtheirschoolyearsequippedtoparticipateinandbenefitfrom,the‘AsianCentury’.

EBEsupportstheAsiaEducationFoundation’s(AEF)viewpoint(expressedintheir17thofFebruarysubmission);thatpasteffortstofurtherlearningaboutAsiahavelackedcontinuityandplanningandhavefailedtobeadequatelyfunded–andthatthismustchange.

EBEalsosupportstheAEF’spositionthatthenextstepsmustnotonlypositionAsialiteracyasakeypolicyobjectiveofschoolingbutbesupportedbyinvestmentinalong-termnationalstrategicplan.

TheAEFsubmissionrightlypointsoutthatanystrategytoboostAustralianschoolstudentsknowledgeofAsiamustbebipartisanandlong-term(e.g.fifteenyears),anationaleffortandsupportedbyacommitmenttothelevelofsustainedfundingrequiredtosucceed.

EBEiswillingtoworkwiththeFederalGovernmenttofurtherimprovestudentunderstanding,skills,valuesandattitudesinrespecttoAsia–bydevelopingqualityteachingresourcesandteacherprofessionaldevelopmentcourses.

JoeAlvaro,EBENSWPresident


Congratulations to Economics and Business Educators NSW Director, Lyn Kirkby

Citation:Lyn Kirkby, Economics and Business Educators NSW

In recognitionofasignificantcontributiontoEconomicsandBusinessEducatorsNSW(EBE NSW) in the areas of leadership, building capacity, and enhanced administrativeefficiency.AsaDirectorofEBENSWsince2006,andasPresidentsince2009,LynKirkbyhasstrengthenedthepositionoftheassociation inthenationalandstateeducationallandscape.

Lyn’s commitment to supporting teachers, particularly those new to the profession,continuestobenefittheassociationandtheprofession.ShehasactivelyencouragedtheprofessionalgrowthofEBEDirectorswhilemodellingarespectfulandskilfulleadershipstyle.

Lyn’sdisciplineexpertise,particularlyintheareaofEconomics,hasseenhercontributegenerously to the association at all levels. This has included delivering HSC studentlectures,participating inBoardofStudiesNSWcurriculumdevelopment,coordinatingthe EBE Trial HSC Economics paper, contributing to the development of professionalteachingstandards,andcollaboratingwithBusinessEducatorsAustralasiainpreparationforthedevelopmentoftheAustraliancurriculuminEconomicsandBusinessStudies.

On Monday 28 November 2011 the Professional Teachers’ Council NSW held its Annual Presentation Evening. The immediate Past President of EBE NSW and current Director, Lyn Kirkby was awarded an Outstanding Professional Service Award by the Hon. Adrian Piccoli MP, Minister for Education as an acknowledgement of excellence in the teaching profession and the outstanding work she has undertaken through EBE NSW.

Lyn Kirkby accepting her award from the Hon. Adrian Piccoli MP

BelowisLyn’scitation.CongratulationsLyn.


Examination Verbs Answers –Across6. Appreciate

8. Examine

11.Discuss

12.Define

13.Contrast

Down1. Interpret

2. Compare

3. Predict

4. Justify

5. Recall

7. Recommend

8. Evaluate

9. Clarify

10.Identify

13.Create

14.Analyse

Solution

Advertising Rates for ‘The EBE Journal’

EBE welcomes advertisements for publications relevant to the areas of Business Studies, Commerce, Economics and Legal Studies.

Full Page $275 Half Page $165 Quarter Page $100

These prices include GST and are based on the advertiser supplying the advertisement either on CD, or by email to [email protected]

A clear hard copy should also be forwarded to our office.

The journal is published twice a year and the deadline for submission of material is one month prior to publication.

Further details can be obtained by contacting EBE as follows:

Phone: (02) 9564 5007 • Fax: (02) 9564 5309 Email: [email protected] • PO Box 67 Leichhardt NSW 2040

Documents

Journal of the Economics and Business Educators New South ... · and Reporting Authority (ACARA) has now commenced the curriculum development process for Civics and Citizenship with