1.++Economic+Problem

= 1. Economic problem ﻿ = **Your task** 1. Press edit above 2. Move your cursor below your name (scroll down) - only work in the area under your name 3. Use Ms Stevenson's examplar as a guide

**Miss Stevenson's exemplar:** (note you can not use my topic! Go to your task sheet for more topic examples.)


 * ** Whose problem/issue is it: ** || My Grandmother who is 70 years old. ||
 * ** Key needs/wants: ** || Grandma wants a dog for companionship, exercise and security. ||
 * ** What are the technical aspects of the problem: ** || Grandma believes that pedigree dogs are superior to mixed breeds and accordingly will only consider pedigrees with papers ||
 * ** What are the financial aspects of the problem: ** || Grandma has $1,000 to spend on a new dog ||
 * ** What caused the problem: ** || Grandma has always had border collies and sadly her last dog died from old age. ||
 * ** Effects of the problem: ** || By spending $1000 on a dog, Grandma will have to rethink her Christmas budget for grandchildren this year as well as budget for ongoing dog maintenance and care costs. ||


 * Tom B**


 * Whose problem is it? || Me when i am older ||
 * Key needs/wants: || Im in need of a credit card that can suit the income that i make when i am older ||
 * What are the technical aspects of the problem? || Choosing which bank as well as what type of plan to have. ||
 * What are the financial aspects of the problem? || Choosing which card can suit my income and financial needs ||
 * What caused the problem: || The need of a form of credit to purchase goods and services ||
 * Effects of the problem: || Will be able to purchase goods and services ||


 * Harry B**

gearing to lower income. || that has a sustainable income. || investment. || over the years it will turn and i will start to invest. ||
 * Whose problem is it? || 30 year old doctor ||
 * Key needs/wants: || To lower his income tax ||
 * What are the technical aspects of the problem? || Choosing a investment house to use negative
 * What are the financial aspects of the problem? || Finding a house in the right price range, and one
 * What caused the problem: || Current tax is too high, looking for a long term
 * Effects of the problem: || I will lose a lot of money in the short term, but


 * Joshua C**

containing at least 3 bedrooms, 2 bathrooms, dining room and a living room. || and due to the broad possibilities in property investment and the immense variation between certain options, making a decision is very difficult. Furthermore, the businessmen, being rationally self-interested wants to make as much profit as possible with the specific amount he invests. || loan and therefore pay mortgage, causing the need to cut back on certain luxuries. Furthermore, he will have to invest a fair amount of time into the buying and renting of the house, taking time away from his job and leisure activities. ||
 * Whose problem is it? || A single, successful business man of 50 who lives in the CBD looking for a new property to invest in. ||
 * Key needs/wants: || This certain property must be within an urban society of Brisbane, and of a reasonable size
 * What are the technical aspects of the problem? || The man would prefer a house in an area with high demand in order to attract maximum interest and therefore, more profit. Furthermore he would rather the property be closer to his in order to have constant control over the house and be within range of any people who might be interested in order to pay regular visits. Also the businessman is interested mostly in houses in socio-economically wealthy areas in order to attract the most wealthy people and an increasing demand for property. This aspect of the house also determines how satisfied each family is with the house and the length of time they stay there. Since the businessman will be paying a mortgage it is essential he have someone staying in the house for a majority of the time. Finally, it is also desirable that the property possess pleasing aesthetics, capable size-wise of hosting a family, reasonable landscaping and significant car parking to cater for a broad range of customers. ||
 * What are the financial aspects of the problem? || The investor is looking to purchase a house of reasonable price, yet not too luxurious or costly as the costs may exceed the benefits. From the price range of approximately $800 000 to around $900 000 would suggest a great house in a prime location or even more a small mansion in the outer suburbs of Brisbane, overall appealing to wealthy families, new couples or house mates all looking for a slightly above average property, willing to pay a significant rent value. ||
 * What caused the problem: || The businessman wants to expand his investment into other areas of interest such as property
 * Effects of the problem || If the businessman is purchasing a $900 000, although he is successful he will still have to acquire a


 * Adam C**

etc. in the social domain. || so I therefore will only buy a Nokia, Samsung or BlackBerry phone. phone. I also require the phone to have a camera that can take photos of a reasonable quality. I do not want a touch screen or a flip or slide function because I believe that they are not as durable as normal phones. I also require my new phone to have standard calling and text messaging functionality. I have been with 3/Vodafone for a long time, and I want to remain with them. These requirements are all non-negotiable. || My budget is not flexible. || destroying it and therefore prejudicing me against touch screen phones. The $800 i spent on this phone is now a sunk cost. || unable to use this money on other goods and services, or put it into my bank account for future savings. ||
 * Whose problem is it? || My problem. I am a 15 year old BGS student who lives in Brisbane. ||
 * Key needs/wants: || I want a mobile phone for use in the contexts of making calls and text messages,
 * What are the technical aspects of the problem? || I believe that well known brands of phone are the best
 * What are the financial aspects of the problem? || I have a maximum of $50 per month ($600 per year) to spend on the plan of this phone.
 * What caused the problem: || About 2 weeks after I bought it, I accidentally dropped my iPhone, shattering the screen,
 * Effects of the problem: || By spending $50 per month (and $600 per year) I suffer the opportunity cost of being


 * Jack C**


 * Whose problem is it? || A 20 year old full time uni student ||
 * Key needs/wants: || A credit card to suit my income ||
 * What are the technical aspects of the problem? || There are different banks to choose from and different limits ||
 * What are the financial aspects of the problem? || My limited income will restrict the limit I have. ||
 * What caused the problem: || Having a credit card makes paying for wants/needs easier ||
 * Effects of the problem: || Having a credit card will mean that debt is easy to fall into ||


 * James C**


 * Whose problem is it? ||  || Whose problem is it? || Some dude. ||
 * Key needs/wants: || A new Credit Card, and which one is the best credit card, or other form of credit, for a young person. ||
 * What are the technical aspects of the problem? || Needs a credit card that has:
 * 0% intro Annual Percentage Rates on balance transfers for a full 18 months, then the Regular Annual Percentage Rates
 * 0% intro Annual Percentage Rate on purchases for a full 6 months, then the Regular Annual Percentage Rates
 * This holiday season get 5% Cashback Bonus in restaurants, department stores and clothing store purchase
 * 5% Cashback Bonus in categories that change like travel, gas, groceries, restaurants, home improvement stores and more
 * Get double Cashback Bonus on up to $1000 in holiday purchases on any online shopping through December 31st
 * Up to 1% unlimited Cashback Bonus on all other purchases
 * No Annual Fee
 * Transfers ||
 * What are the financial aspects of the problem? || This card needs to have a limit of $1,000 dollars maximum. ||
 * What caused the problem: || ||   ||
 * Key needs/wants: ||  ||
 * What are the technical aspects of the problem? ||  ||
 * What are the financial aspects of the problem? ||  ||
 * What caused the problem: ||  ||
 * Effects of the problem: || Can't buy cheap items over the internet ||


 * Christopher D**

Has to be suitable to use for L's. || saved $347.75 so far. My brother would have saved nothing - $20 || save up for the car. It will impact on amount of free time and time spent on school work. The opportunity cost of working for this money would be doing homework or studying. ||
 * Whose problem is it? || My/my brothers problem. ||
 * Key needs/wants: || We need a car to be able to drive when we get our drivers license. ||
 * What are the technical aspects of the problem? || The car has to be decent and in good shape, but not too expensive (in case we smash it :) ).
 * What are the financial aspects of the problem? || Cars that suit my criteria generally cost $2000-$5000 dollars, which is pretty expensive. I've only
 * What caused the problem: || The need of a car for when we get our L's, which is reasonably soon. ||
 * Effects of the problem: || It will take up a lot of time to work around the house and part time at a business to


 * Nick F**


 * Whose problem is it? || Mine ||
 * Key needs/wants: || I want a credit card and I want the most value for money ||
 * What are the technical aspects of the problem? || The card needs to be widly accepted and prefarably long intrest free periods ||
 * What are the financial aspects of the problem? || The intrest rate of the card, the annual fee and the the card limit ||
 * What caused the problem: || A growing want for goods but a limited cash has required me to run a buget in Deficit ||
 * Effects of the problem: || I am unable to purchase goods when I want them or when it's more economically viable e.g. sales ||

Ms Stevenson: James - I have deleted the original table and put in another .... see if this works now
 * James F**


 * Whose problem is it? || Write your answers in here and below ||
 * Key needs/wants: ||  ||
 * What are the technical aspects of the problem? ||  ||
 * What are the financial aspects of the problem? ||  ||
 * What caused the problem: ||  ||
 * Effects of the problem: ||  ||


 * Daniel G**


 * Whose problem is it? || Family ||
 * Key needs/wants: || Finding a suitable apartment to live in for under $1,500,000 preferably close to the city. ||
 * What are the technical aspects of the problem? || Finding a modern apartment close to the city that has 3 bedrooms and 2/3 bathrooms as well as undercover parking and other facilities such as a gym and a pool. ||
 * What are the financial aspects of the problem? || Sticking to a budget of $1,500,000. ||
 * What caused the problem: || Tired of living deep in suburbia and a house is getting too much to maintain ||
 * Effects of the problem: || We would have to sell our current home in order to afford an apartment and moving into an apartment would mean we would have to sell some furniture due to the fact that an apartment means smaller living space. ||


 * James H**


 * Whose problem is it? || My problem. ||
 * Key needs/wants: || To invest $10000 in three different shares. ||
 * What are the technical aspects of the problem? || I have to choose between three different shares, The Commonwealth Bank, ANZ Bank, and The National Australian Bank. ||
 * What are the financial aspects of the problem? || None. ||
 * What caused the problem: || My judgement to invest in three different shares. ||
 * Effects of the problem: || Possibly not choosing the best of the three shares. ||


 * James K**


 * Whose problem is it? || A theoretical 13 year old teenager. ||
 * Key needs/wants: || The teenager and his/her parents want to set up an intermediary account/savings account where he/she can save money from part-time work or pocket money from the parents. ||
 * What are the technical aspects of the problem? || The teenager wants to set up this account with his/her parents bank/building society and also wants to create an account which has minimal withdrawal access. This will increase the percentage of interest that he/she receives as funds are transferred into the account. The Piggy Bank Passbook account from Bendigo Bank is a starter bank account for children 13 years or below. An ANZ progress saver account is an easy way to save every month as savings increase with bonus interest, which would be ideal for a child's savings account. A Greater Building Society Little Buck's account is a passbook account for children under 18 years of age which converts to an Access Savings Account on the child's 18th birthday. ||
 * What are the financial aspects of the problem? || To open a Bendigo Bank Passbook account it costs $1 upfront and has an interest rate of 2.00% p.a. An ANZ Progress Saver costs a minimum $10 deposit to open and has an interest rate of 0.01% as a base variable rate and 6.00% as a bonus variable rate; it also has a $0 account keeping fee or transaction fees. To open a Greater Building Society Little Buck's account it costs $1 and has an interest rate of 1.00% p.a; it also has a $0 account keeping fee or transactions fees. ||
 * What caused the problem: || The problem was caused when the teenager had his/her wallet/purse stolen with all his/her savings inside it. After this the teenager and the parents decided to set up an account in order to save a percentage of the income he/she receives from a part-time job or some of the pocket money from his/her parents. ||
 * Effects of the problem: || The main opportunity cost to setting up this intermediary account is that funds will not be as readily available due to the minimal withdrawal access of all starter savings accounts. Also due to this he/she will not have the money to spend on goods and services and as savings are being leaked out of the economy, the circular flow of income will decrease and contract due to limited injection into the economy. ||


 * Thomas K**


 * Whose problem is it? || Mine :? ||
 * Key needs/wants: || A New Phone, with a decent plan that is affordable for me. ||
 * What are the technical aspects of the problem? || My mum would rather me stay with my current service provider, I however have no preference of provider so long as they are reliable and affordable. I just want the best plan. I would like the best phone I can get for the lowest amount of money and I need unlimited texting, calls are not important, however a data allowance may be. ||
 * What are the financial aspects of the problem? || I need to have moneys readily available to pay for this plan each month and any upfront cost this might incur. ||
 * What caused the problem: || My current plan gives me; no new phone, $30 cap, 25c texts, unbelievably expensive calls, no internet allowance. But i can haz free facebook :) I would go over this plan by $30-$40 each month which made me sadface. ||
 * Effects of the problem: || I found a plan with Virgin Mobile that costs $29 a month plus $5 for a new phone (total $34), gives me unlimited texts has unbeleivably expensive calls and has a 1 Gb data allowance. With this I also get to spend $50 a month on whatever calls I make at 99c a minute with a 40c connection fee, International texting etc. The opportunity cost of this is that each month I must make sure I have at least $34 in my bank account with which to pay Virgin Mobile as I don't want to go into overdraft. :) This is a good result for me as I get exactly what I wanted in the plan (unlimited texting) and a new phone which is epicness. ||


 * Kevin B**


 * Whose problem is it? || Write your answers in here and below ||
 * Key needs/wants: ||  ||
 * What are the technical aspects of the problem? ||  ||
 * What are the financial aspects of the problem? ||  ||
 * What caused the problem: ||  ||
 * Effects of the problem: ||  ||


 * Jeremy M**


 * Whose problem is it? || I am a 19-year-old employed college student. ||
 * Key needs/wants: || I am an avid buyer of goods and services, whether it is in the shop or online, but dislikes carrying around cash because of the inconvenience and the problem it would present if his wallet was stolen/lost. To combat this I have chosen to apply for a debit card as a replacement for cash. ||
 * What are the technical aspects of the problem? || The card must be easy to apply for and must be cheap to use (as in little/no fees). The card should be able to be used at ATM's, the shops and online and widely accepted. Also, the extra benefits of the card should be of usefulness to me  . The bank's performance financially also will be taken into consideration. ||
 * What are the financial aspects of the problem? ||  Each bank has different fees and cost for different cards but I have a reasonable amount of money from working so as long as the cost isn't too great I should be able to handle it. It should be noted that I have a job so I has a constant income. Of a lesser important note the bank account linked to the debit card has to be sufficiently beneficial and provide decent interest on my monetary holdings. ||
 * What caused the problem: || I want to buy several things online which I can't because they all require some type of card. Also, mentioned before I don't like carrying around cash. ||
 * Effects of the problem: ||  By applying for a debit card it entails quite a lot of responsibility, but provides a much easier way of purchasing goods and services. However, Jeremy could be subject to the hassle of opening a bank account and also the possibility of fraud whilst buying online. The opportunity cost of a debit card is either a credit card or an EFTPOS card, however I have done a cost/benefit analysis and determined that a debit card is most useful as I have seen the risks and the consequences of credit cards and an EFTPOS card has limited functionality. ||


 * Ash M**


 * Whose problem is it? || 50 year old plastic surgen who is retired ||
 * Key needs/wants: || A unit at the beach ||
 * What are the technical aspects of the problem? || Must have pool, ocean views and be in walking distnce of the beach and restruants ||
 * What are the financial aspects of the problem? || The property must be in the price bracket of $800,000 - $1,000,000 ||
 * What caused the problem: || He retired and his retirement fund consisted of $1,000,000 ||
 * Effects of the problem: || Means he would be movinng up to 2 hours from his family.He also wanted to buy a boat with the money but can not have both. ||


 * Rigel N**


 * Whose problem is it? || Mine. Rigel Ng, aged 15, dedicated gamer. ||
 * Key needs/wants: || A new computer (laptop) ||
 * What are the technical aspects of the problem? || 1.Because I am a dedicated gamer, the computer has to be able to load very high graphics games. 2. I am a boarder so it has to be lighter than 5kg for it to be convenient ||
 * What are the financial aspects of the problem? || I have only $2000 to spend ||
 * What caused the problem: || My old laptop is now 5 years old and fails to load any decent game. ||
 * Effects of the problem: || I can play games I desire. ||


 * Michael P**


 * Whose problem is it? || Mine ||
 * Key needs/wants: || Another GoPro HD helmet camera so that I can take high quality videos of sports and racing

e.g. motocross, snowboarding, car racing ||
 * What are the technical aspects of the problem? || A small helmet camera that can take videos in many different formats, HD, VGA and also timed, with a 3 burst shot and also single shot photo capability. also I would like some extras such as a chest strap, and LCD screen, another battery ||
 * What are the financial aspects of the problem? || it costs around $600 ||
 * What caused the problem: || Just a want really, i already have one but i would like to take videos from different angles ||
 * Effects of the problem: || i can only work on the holidays, although i already have been, maybe a little more time will be needed for the extra costs involved ||


 * Charlie Q**


 * Whose problem is it? || Mine ||
 * Key needs/wants: || A white cat, (not mixbreed, otherwise the color will not be pure and natural) within $1500 budget. ||
 * What are the technical aspects of the problem? || Choosing a cat with a right personality is always a problem me (and all other cat lovers). ||
 * What are the financial aspects of the problem? || Financial side is not really a problem for me, you can basically adopt a cat/kitten for free, to 'maintain' cat's healthy is another story, and as a cat lover, it wouldn't be a problem for me. ||
 * What caused the problem: || My mom has a serious cat (feline) phobia, and she has a 'no cat under my roof' rule. ||
 * Effects of the problem: || I can't have a cat for nearly four years now, and still won't have one until I can live by myself (under my own roof). ||


 * Andrew S**


 * Whose problem is it? || A 20 year old university student with a part time work ||
 * Key needs/wants: || A credit card ||
 * What are the technical aspects of the problem? || A small limit, low interest, no or low annual fee, reward points and long interest free period ||
 * What are the financial aspects of the problem? || Identifying a card which that best suits his financial resources ||
 * What caused the problem: || Desire to purchase goods that he cant afford at present and get the benefit of reward points ||
 * Effects of the problem: || Unable to purchase goods now, that he would like to purchase, because he cannot afford to ||


 * Archie S**


 * Whose problem is it? || A hypothetical 45 year old mother, small business owner is looking to open a new superannuation fund. In the past she has also worked for the government and had government superannuation funds. ||
 * Key needs/wants: || She wants to pay off her loans and comfortably retire by the age of 55. She wants to maintain independence after retirement and not have to depend on pension. ||
 * What are the technical aspects of the problem? || Of the three types of funds, industry, employer and commercial super funds, she is eligible for certain industry super funds, cannot have an employer fund (as she is a small business owner) and is eligible for commercial super funds. ||
 * What are the financial aspects of the problem? || Her income is not fixed and varies from month to month so determining how much she can comfortably put into super each month will vary. She sends her two children to an expensive private school and is paying off a loan. ||
 * What caused the problem: || She feels uncomfortable with putting all her money into one super fund and therefore wants to distribute here income as a safety precaution. ||
 * Effects of the problem: || <span style="font-family: 'Calibri','sans-serif'; font-size: 11pt;">Depending on which scheme she chooses and how much she wants to invest in it, it may slow down the rate in which she repays her loans over the years. ||


 * Eliot S**


 * Whose problem is it? || My Problem, I am a 25 year old Male. ||
 * Key needs/wants: || To retire at the age of 50. ||
 * What are the technical aspects of the problem? || To Find the Best superannuation scheme to afford 2 houses in the CBD ||
 * What are the financial aspects of the problem? || At the moment I am only able to afford to buy one house outside the CBD, but I am looking to sell the house and move closer into the CBD into an Appartment. ||
 * What caused the problem: || If I move into the CBD I will be able to sleep-in more and I will be able to go out with friends as I will be closer to different clubs and restaurants. ||
 * Effects of the problem: || It will take majority of my earings to buy a house in the CBD, and thus I will have less superannuation and less funds to spend on different goods and services. ||


 * David T**


 * Whose problem is it? || A businessman is unsure of which company to invest in to recieve the most profit. ||
 * Key needs/wants: || To buy a house ||
 * What are the technical aspects of the problem? || He wants a house that will suit his family ||
 * What are the financial aspects of the problem? || He doesn't have enough money ||
 * What caused the problem: || Currently lives in a small unit and doesn't fit his family ||
 * Effects of the problem: || Not enough room ||

<span style="font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: normal; margin: 7.5pt 0cm;"> || <span style="font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: normal; margin: 7.5pt 0cm;"> <span style="font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: normal; margin: 7.5pt 0cm;"> <span style="font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: normal; margin: 7.5pt 0cm;"> || <span style="font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: normal; margin: 7.5pt 0cm;"> || <span style="font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: normal; margin: 7.5pt 0cm;"> <span style="font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: normal; margin: 7.5pt 0cm;"> <span style="font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: normal; margin: 7.5pt 0cm;"> <span style="font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: normal; margin: 7.5pt 0cm;"> || <span style="font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: normal; margin: 7.5pt 0cm;"> <span style="font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: normal; margin: 7.5pt 0cm;"> <span style="font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: normal; margin: 7.5pt 0cm;"> ||
 * <span style="font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: normal; margin: 7.5pt 0cm;">Whose problem is it? || <span style="background: none repeat scroll 0% 0% #aaffaa; color: #008800; font-family: 'Arial','sans-serif'; font-size: 10pt;">Me ||
 * <span style="font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: normal; margin: 7.5pt 0cm;">Key needs/wants: ||
 * <span style="font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: normal; margin: 7.5pt 0cm;">What are the technical aspects of the problem? ||
 * <span style="font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: normal; margin: 7.5pt 0cm;">What are the financial aspects of the problem? ||
 * <span style="font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: normal; margin: 7.5pt 0cm;">What caused the problem: ||
 * <span style="font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: normal; margin: 7.5pt 0cm;">Effects of the problem: ||