EPF 4 - The student will demonstrate knowledge that many factors affect income

EPF 4 - The student will demonstrate knowledge that many factors affect income What we already know Income - the amount of money a business receives from the sales of its goods/services (Also called Revenue) Cost - The amount of money a company spends to get product into the store Expenses - The amount of money a company spends on the operation of the business Net Profit - The amount of money made after the cost of goods & expenses are subtracted out. This is the money we get to keep!

Net Profit = Revenue - (Cost + Expenses) P = R - (C + E) EPF 4 - The student will demonstrate knowledge that many factors affect income What we already know AND that . . . Net Profit = Revenue - (Cost + Expenses)

OBJECTIVE Be able to describe the factors that can lead to an increase in a company’s income

For Example, In the Home Remodeling Industry OBJECTIVE Be able to describe the factors that can lead to an increase in a company’s income For Example, In the Home Remodeling Industry https://www.youtube.com/watch?v=Lz-o8jOXL0s

OBJECTIVE Be able to describe the factors that can lead to an increase in a company’s income Physical Capital Improvements Increased Productivity Increasing Market Value Enhance Human Capital (Training & HR) Lower Cost of Production Economic Growth Increased Investment

OBJECTIVE Be able to describe the factors that can lead to an increase in a company’s income Increased Productivity: - An average measurement of the efficiency of production. It can be expressed as the ratio of output to inputs used in the production process.

OBJECTIVE Be able to describe the factors that can lead to an increase in a company’s income Enhance Human Capital (Training & HR): Enhancing all of the knowledge, talents, skills, abilities, experience, intelligence, judgment, and wisdom possessed individually and collectively by individuals in a population

OBJECTIVE Be able to describe the factors that can lead to an increase in a company’s income Physical Capital Improvements:  All of the equipment and all of the other physical things that a business owner or company invests money into when they want to produce something

OBJECTIVE Be able to describe the factors that can lead to an increase in a company’s income Lower Cost of Production: The costs related to making or acquiring goods that generate revenue for a firm. Examples include labor, raw materials, consumable manufacturing supplies and general overhead

OBJECTIVE Be able to describe the factors that can lead to an increase in a company’s income Increased Investment - To put resources (Land, Labor, Capital) into something with the expectation of some benefit in the future

OBJECTIVE Be able to describe the factors that can lead to an increase in a company’s income Increasing Market Value - the amount for which something can be sold in a given market (Just as in Supply & Demand)

OBJECTIVE Be able to describe the factors that can lead to an increase in a company’s income Economic Growth - the increase in the market value of the goods and services produced by an economy over time. It’s measured as the percent rate of increase in production

OBJECTIVE Be able to describe the factors that can lead to an increase in a company’s income (Review) Physical Capital Improvements Increased Productivity Increasing Market Value Enhance Human Capital (Training & HR) Lower Cost of Production Economic Growth Increased Investment

OBJECTIVE Be able to describe the factors that can lead to an increase in a country’s income

OBJECTIVE Be able to describe the factors that can lead to an increase in a country’s income Physical Capital Improvements Increased Productivity Increasing Market Value Lower Cost of Production Human Capital (Training & HR) Economic Growth Increased Investment

You may notice they’re the same OBJECTIVE Be able to describe the factors that can lead to an increase in a country’s income Physical Capital Improvements Increased Productivity Increasing Market Value You may notice they’re the same Lower Cost of Production Human Capital (Training & HR) Economic Growth Increased Investment

EXERCISE Find, summarize, & present a news article discussing a country’s efforts to achieve three of the goals below Physical Capital Improvements Increased Productivity Increasing Market Value Lower Cost of Production Human Capital (Training & HR) Economic Growth Increased Investment

EXERCISE Find, summarize, & present a news article discussing a country’s efforts to achieve three of the goals below (You can do a paper or PowerPoint) Physical Capital Improvements Increased Productivity Increasing Market Value Lower Cost of Production Human Capital (Training & HR) Economic Growth Increased Investment

EXERCISE Find, summarize, & present a news article discussing a country’s efforts to achieve three of the goals discussed (Examples) Physical Capital Improvements . . . . China’s government has made huge investments in factories, urban infrastructure and heavy machinery https://www.accenture.com/us-en/insight-outlook-beyond-capital-and-labor-china-productivity-frontier

EXERCISE Find, summarize, & present a news article discussing a country’s efforts to achieve three of the goals discussed (Examples) Europe: The “Reinvention of human capital policies is required to avoid increasing welfare state dependency among the unskilled and to reduce inefficiencies in human capital formation.” Human Capital (Training & HR) http://ftp.iza.org/dp4680.pdf

EXERCISE Find, summarize, & present a news article discussing a country’s efforts to achieve three of the goals discussed (Examples) “Fact: it costs significantly less to make products in low-cost countries than in local, developed nations. And you can easily compare the costs of a product manufactured in both locations to prove it.” Lower Cost of Production http://www.globalsourcesupply.com/blog/global-source-supply/low-cost-country-sourcing-means-lower-production-and-manufacturing-costs---and-more-

EXERCISE Find, summarize, & present a news article discussing a country’s efforts to achieve three of the goals discussed (Examples) Economic growth in the United States is constantly being driven forward by ongoing innovation, research and development as well as capital investment Economic Growth http://www.focus-economics.com/countries/united-states

EXERCISE PRESENTATIONS Find, summarize, & present a news article discussing a country’s efforts to achieve three of the goals discussed PRESENTATIONS

OBJECTIVE Be able to describe the factors that can lead to an increase in your personal income and standard of living . . . .

OBJECTIVE Be able to describe the factors that can lead to an increase in your personal income and standard of living . . . . Where Standard of Living is defined as - “The degree of wealth and material comfort available to a person or community.”

EXERCISE Be able to describe the factors that can lead to an increase in your personal income and standard of living Rank (A. B. C. etc.) the occupations listed below in terms of their usual income potential from highest to lowest . Restaurant Waiter B. Aerospace Engineer Professional Athlete D. Supreme Court Justice E. Nurse

EXERCISE Be able to describe the factors that can lead to an increase in your personal income and standard of living Rank (A. B. C. etc.) the occupations listed below in terms of their usual income potential from highest to lowest . Restaurant Waiter B. Aerospace Engineer Professional Athlete D. Supreme Court Justice E. Nurse Answer? C D B E A

What basis did you use for your Ranking? EXERCISE Be able to describe the factors that can lead to an increase in your personal income and standard of living Rank (A. B. C. etc.) the occupations listed below in terms of their usual income potential from highest to lowest . Restaurant Waiter B. Aerospace Engineer Professional Athlete D. Supreme Court Justice E. Nurse What basis did you use for your Ranking?

OBJECTIVE Be able to describe the factors that can lead to an increase in your personal income and standard of living Productivity Training & Education Geographic Location Sales Skills Market Value Supply & Demand Experience