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

2. 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!

3. 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)

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

5. 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

6. 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

7. 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.

8. 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

9. 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

10. 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

11. 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

12. 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)

13. 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

14. 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

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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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)

22. 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

23. 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

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

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

26. 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.”

27. 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

28. 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

29. 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?

30. 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