Germany Jahrgangsstufe 8 Economics and Law
Chapters: 4
1. Economic decisions in private households
Consumer decisions · Money and payments
- The Problem of Choice: Scarcity and Opportunity Cost – Our wants are unlimited but resources like money, time, land and workers are limited. This is scarcity, and it forces us to choose. The value of the next best option we give up is the opportunity cost. Economists study how people and societies make these choices. Every society must decide what, how and for whom to produce. Market, planned and mixed economies answer these differently, and a welfare state makes sure basic needs of all are met.
- Smart Ways to Manage Your Finances – Inflation makes prices rise, so the same money buys less. Money kept in a bank earns interest: simple interest is paid only on the original amount, while compound interest also earns interest on earlier interest, so it grows faster over time. A budget plans income into needs, wants and savings. Savings are kept safe; investments can grow but carry risk, and higher possible returns mean higher risk. Insurance shares risk among many people. Income tax is paid on income above a limit, at rates that rise with income.
2. Economic decisions in companies
Business processes and division of labour · Marketing decisions
- Marketing Management – Marketing means finding out what buyers need and meeting that need in exchange for value, at a profit. It has many functions (research, planning, branding, labelling, packaging, pricing, promotion, distribution, service) and five philosophies (production, product, selling, marketing, societal). The marketing mix is the 4Ps: product (with branding, labelling, packaging), price (shaped by cost, demand, competition, government rules, objectives and marketing methods), place (channels and physical distribution) and promotion (advertising, personal selling, sales promotion, public relations).
3. Legally responsible behaviour
Legal responsibility
- Criminal Law: Crimes, Offences and Defences – Criminal law lists acts the state treats as crimes and sets punishments. Most crimes need two parts: a guilty act (actus reus) and a guilty mind (mens rea). Offences can be against the person (fatal, like murder and manslaughter; non-fatal, like assault) or against property (like theft, robbery, fraud, criminal damage). Trying to commit a crime is itself an offence (attempt). Defences such as self-defence, insanity, duress or being under the age of criminal responsibility can remove or reduce guilt. The accused is presumed innocent; the prosecution must prove guilt beyond reasonable doubt in a fair trial.
4. Profile area (economics-social science school)
Household economics: extension · Business economics: extension · Law and responsibility: extension · Economics project
- Smart Ways to Manage Your Finances – Inflation makes prices rise, so the same money buys less. Money kept in a bank earns interest: simple interest is paid only on the original amount, while compound interest also earns interest on earlier interest, so it grows faster over time. A budget plans income into needs, wants and savings. Savings are kept safe; investments can grow but carry risk, and higher possible returns mean higher risk. Insurance shares risk among many people. Income tax is paid on income above a limit, at rates that rise with income.
- Marketing Management – Marketing means finding out what buyers need and meeting that need in exchange for value, at a profit. It has many functions (research, planning, branding, labelling, packaging, pricing, promotion, distribution, service) and five philosophies (production, product, selling, marketing, societal). The marketing mix is the 4Ps: product (with branding, labelling, packaging), price (shaped by cost, demand, competition, government rules, objectives and marketing methods), place (channels and physical distribution) and promotion (advertising, personal selling, sales promotion, public relations).
- Criminal Law: Crimes, Offences and Defences – Criminal law lists acts the state treats as crimes and sets punishments. Most crimes need two parts: a guilty act (actus reus) and a guilty mind (mens rea). Offences can be against the person (fatal, like murder and manslaughter; non-fatal, like assault) or against property (like theft, robbery, fraud, criminal damage). Trying to commit a crime is itself an offence (attempt). Defences such as self-defence, insanity, duress or being under the age of criminal responsibility can remove or reduce guilt. The accused is presumed innocent; the prosecution must prove guilt beyond reasonable doubt in a fair trial.