The following is an example of a questionnaire, to give you an idea when setting up your own.

QUESTIONNAIRE

INSTRUCTIONS: Please indicate your response to the following questions by placing a tick in the box
or by writing brief notes on the lines provided.

Gender: ( ) Male ( ) Female

Age Group: ( ) 18-25 ( ) 26-35 ( ) 36-45 ( ) over 46

1. Do your purchase your own clothing?

( ) Yes ( ) No

2. How often do you purchase clothing?

( ) weekly
( ) monthly
( ) annually
( ) when necessary
( ) on impulse
( ) special occasions

3. In response to question 2 (above), approximately how much do you on purchasing clothing

annually?

( ) under JA$20 000

( ) JA$20 000 – JA$40 000

( ) JA$40 000 – JA$50 000

( ) over JA$50 000

4. Do you purchase clothing using the traditional method (visiting a store looking around,
trying on and buying) or do you go online to shop.

( ) traditional

( ) online

5.
6.
7.
8. If you shop online, indicate the problem/s you sometimes face when shopping

( ) it is expensive
( ) takes too long for goods to be received
( ) cannot try on the clothing before buying them
( ) cannot return unsatisfactory purchases
 Other, please state ___________________________________________________________
___________________________________________________________________________

9. If you shop using the traditional method, indicate problem/s you face when shopping

( ) expensive
( ) opening and closing hours of the shops
( ) problems returning unsatisfactory purchases
Other, please state ___________________________________________________________

___________________________________________________________________________

10. Suggest ONE way in which traditional shops could improve the shopping experience of the
shopper/customer.
___________________________________________________________________________
___________________________________________________________________________

NOTE: the final question should be a question, in which the respondent is asked to give their
thought/suggestion.

Your questions should be listed in a meaningful way ie. In order, they should flow and not be
jumbled up. At least 10 questions should be on the questionnaire.

CONTINUED NOTES:

INSURANCE
Unexpected events may happen when individuals and businesses cannot afford to restore
themselves.

Insurance provides compensation for some of these events.

Insurance – coverage provided for an event that might happen. Eg. fire damaging property.

Assurance – coverage for an event that will happen eg. death.

Life assurance also differs from life insurance:

Life insurance will always result in a payment, because an investment element is combined
with an insure amount. So on the death of an individual with an assurance policy the
insured sum will be paid out in addition to investment bonuses.

Life insurance offers coverage for a set period of time and will be paid out only if a claim is
made. If there is no claim the policy will cease and no payments will be made when the
term ends.
Insurable risks – risks can either be insurable or non-insurable.

Insurance companies will only insure risks they can calculate. Ins (insurance) Actuaries use
statistics, probability charts and other data to calculate risks. There must be a large group of
persons requiring insurance for that risk.

PRINCIPLES OF INSURANCE – compensation will only be provided if the following is met:

a. Utmost good faith – telling the truth on the application form.

b. Insurable interest – insurance is not to make the individual rich. The ins. Company will
only insure against the risk if the insured suffers from what happened.
c. Proximate cause – the ins. Company will only honour the claim if the loss suffered is a
direct result of the risk happening.
d. Indemnity – compensation for loss. The idea to restore the person to where he or she
was before the loss.
e. Subrogation – the insurer takes the place of the insured eg. if your car was completely
wrecked in an accident, the ins. Company will compensate you but keep the wreck car.
As you might sell the car and profit from it.
f. Contribution - insurers come together to compensate the insured that no profit is made
by the insured ie. Ins. Companies talk to each other.
g. Average clause- The insured will be compensated in the same proportion or ratio that
he/she is insured at today’s value eg.

Example: One

A man insures his house 3 years ago for $1 200 000, but its value today is $2 400 000.
Under the average clause, if the roof of his house is damaged at an estimated cost of
$160 000 he will only be paid $80 000. This is so because he only insured his property
for half its value.

NOTE: He insured his house for $1 200, 000 (half of its rue value)

True value is $2 400 000

Damage $160 000

Payment $80 000 (half of the cost of the damage)

Example: Two

Mr Brown insured his house for $75 000 but his house is actually valued at $100 000. In
the event of total loss of his house, Mr Brown can only recover $$75 000 for which the
house was originally insured. However, if there was damage to the value (amount) of
$50 000, then only ¾ of the insured value would be received, that is $37 500.

NOTE: 50 000 divided by ¾ = 37 500

75 000 is ¾ of 100 000

POOLING OF RISKS – risks are calculated before they can be insured, this is normally
done by estimating according to past experience eg. the number of fires which occur in
 the previous years. Those at risk pay premiums into a pool, managed by an insurance
company, to compensate for losses suffered by themselves or others

Actuaries – persons who estimate the incident that occurred by the previous years.

Risks differ in nature and maybe divided into 2 groups:

a. Non-insurable risks – ins. Companies will not insure against risks they cannot calculate. Eg. i)
when the loss is inevitable. ii) where there is insufficient past experience to assess risk. iii)
if the proposer (person seeking insurance coverage) does not have insurable interest. iv)
against fair wear and tear such as rust and corrosion.
b. Insurable risks – ins. Companies will only insure against risks that they can calculate.

TYPES OF INSURANCE POLICIES – There are 2 main categories of insurance:

1. Life insurance
2. Non-life insurance

Life insurance – different from general insurance as the insured person cannot be compensated
(death benefits go to the beneficiaries)

1. Whole-life policies – payable on the death of the insured. However, the insured ceases the
paying of premiums at age 60.
Premium – the regular payments by the insured to the insurer for coverage against a risk.

2. Term policies – mortgage guarantee policies subscribed to by persons who need mortgages
on their houses.
3. Endowment policies – allow for a specified sum of money to be made payable on a specified
date or on the death of the policy holder, whichever comes first.
4. Special policies – developed to meet the needs of specific groups.
5. Home purchase policies – link the proceeds of an investment policy to the purchase of a
home.
6. Unit-linked policies – provide ordinary life cover as well as investment in a unit trust.

Non-life insurance policies:

a. Marine insurance:
i) Hull – provides coverage for the vessel itself and its fixtures.
ii) Cargo – provides coverage for loss or damage to cargo while travelling from one port to
another
iii) Freight – the charge for carrying cargo. The ship’s owner is given this at the beginning of
the journey although he is not entitled to it until he delivers the goods.
iv) Ship owner’s liability insurance – gives the ship’s owner cover for a number of events
which may be either his fault or caused by his employees. Eg. damage to another vessel
in a collision, injury to crew or passengers, pollution of beaches.

b. Fire, motor or aviation insurance – motor insurance is compulsory for all drivers and has 4
categories:
i) Minimum legal coverage – injuries to third parties on public roads
ii) Third party coverage – same as minimum coverage but also provides compensation
for property and legal fees of third party.
 iii) Third party, fire and theft – same as (ii) above, and in addition covers theft of
vehicle and damage caused by fire.
iv) Comprehensive – same as (iii) above and also covers damage to the insured’s
vehicle personal injury to the driver and loss of or damage to personal possessions in
the vehicle.
c. Aviation insurance – covers the aircraft against damage by accident and the operators
against claims from injury or death of passengers, crew or third party.
d. Accident insurance – property – covers a number of risks related to any type of property,
including accidental damage to machinery, plate glass, vehicles, burglary, loss of animal or
stock for different reasons.
e. Personal accident insurance – refers to accidents caused by a wide range of risks to persons
or groups of persons.
Celebrities usually take out this type of accident insurance in case of injury and they cannot
work.
f. Liability insurance – provides coverage for events which may be made against the insured.
Motorists, airline operators and ship owners are required to have these policies.
g. Public liability – provides coverage for firms which may have to pay claims for injury to
persons or property caused by their negligence
h. Employer’s liability – required by law. Employers must insure their workers for disease or
injury arising from any damage while at work.
i. Fidelity guarantee – ins. Companies will provide compensation against theft by employees.

ROLE OF INSURANCE – It allows us to enjoy an improved standard of living because we are able
through them to get a wider range of goods and services.

Ins. Companies provide coverage against personal risks which individuals would not be able to
manage.

Insurance provides contributions to the Balance of payment (BOP) due to earnings on invisible trade
(services)

NOTE: balance of payments – a financial account that records the value of all payments made
abroad by a country and the payments received from abroad over a period of time. (for goods and
services).

HOW DOES INSURANCE FACILITATE TRADE?

- Insurance companies encourages industry and facilitate trade by taking on risks of firms.
- Traders would not send goods over many miles if they were not assured that they would be
compensated for losses in transit.
- Ins. Companies provide a source of capital since they are institutional investors
- Ins. Companies are also involved in real estate, providing buildings, offices, plazas and
shopping centers, helping to develop construction and other related industries.

FACTORS OF PRODUCTION – economic resources that are used to produce goods and services.

There are 4 factors of production: Land/natural resources, capital, labour and entrepreneurship.
Factors of production can be classified as human or non-human. Human resource are the labour
force and the entrepreneurs.

Non-human resource is land.

Capital is both human and non-human. Labour is the physical and mental effort of man in the
production process.

Capital refers to all goods used to produce more goods.

Entrepreneurial skills/entrepreneurship refers involved in organizing the other 3 factors for

production.

Land – a natural factor. There are different types of land: eg. for building houses, recreational
purposes, factories etc.

Land is be the earth’s surface, above the earth’s surface ( gases in the atmosphere), seas and rivers,
land is also beneath the earth’s surface eg. petroleum, minerals etc.

Characteristics of land:

-land is fixed in supply

-it has no cost of production (it doesn’t cost anything to produce land itself as it is already here)

-it is geographically immobile – cannot move.

Labour – refers to those people who are available for work in the economy.

Characteristics of labour:

- Labour is the human factor – labour services are provided by man (includes woman too)
- Only the worker himself/herself can sell his/her services for them
- Labour services cannot be stored in the same way as units of land or capital
- Labour is geographically and occupationally more mobile than land
- Labour is not homogeneous – people have different skills and abilities.

Labour performs a very important function in the production process. Although we now have
improved technology that is replacing labour.

Labour force – the number of people willing to work in the economy.

Supply of labour – the total hours that they are willing to work eg. 5 men each working 25 hours
supply 125 man-hours.

SUPPLY OF LABOUR is dependent on 3 factors:

- The size of the population – large populations have a large supply of labour and vice versa
- The proportion of the population willing to work eg. tertiary students, housewives and
disabled persons decrease the supply of labour.
- The number of hours worked by each individual – overtime increases the supply of labour.

Efficiency of labour:

a. Level of education
b. Technology
c. System design – procedures and methods utilized in completing tasks.
 d. Monetary and other benefits
e. Type of the job training
f. Opportunities of upward mobility
g. System of management adopted by the organization
h. The nature of the job itself
i. Health and well-being of the workers ie. Physical and mental stress affect worker
performance.
j. Job security – worker can keep working there
k. Attitude of workers

Mobilization of labour – labour is organized or brought together for productive activity.

Community and voluntary, self-help groups such as Kiwanis, Lions, Business women’s association,
church organization etc. have taken on social and economic activities which are not provided
adequately or at all by the private or public sector.

These are known as non-governmental organizations (NGO’s). their major role is to provide services
for those in need eg. community centers offer skills training etc. through self-help programmes eg.
basic schools, are built and maintained.

Migration affects the labour force. It is the movement of people from one area to another including
internal and external movements.

Human are constantly on the lookout for opportunities to improve their circumstances in life.

Emigrants – people who migrate from one country to another

Immigrants – persons who settle in a country that is not their birth country. Persons may also be
termed aliens.

A country can experience internal and external migration.

Internal migration – movement of people from one part of the country to another part of the
country.

External/out-migration/emigration/international migration/sender population – people who

permanently change their residence to another country.

Brain drain – migration of professional, technical, skilled and semi-skilled persons of the labour force
to other countries.

EFFECTS OF INTERNAL MIGRATION OF THE LABOUR FORCE

a. Loss of qualified persons from communities – leads to underdevelopment of the community

b. Decrease in the labour force in that community – may affect the agricultural industry.
c. Inadequate social and other amenities to accommodate persons who move into other areas.

EFFECTS OF EXTERNAL MIGRATION ON THE LABOUR FORCE

a. Brain-drain –when professional persons leave there is a gap which may have to be filled at a
high cost.
b. Production is negatively affected when people migrate
 c. Many social and financial problems are created eg. children are left without parents who
might not have made adequate protection plans for them. This may burden the country to
provide resource care for these children.
d. Caribbean countries experience an inflow of foreign currency through remittances from
family members overseas supporting their relatives in the home country.

Capital – in economics this refers to goods used to produce other goods.

The purchase of capital goods is investment. Capital should not be confused with money. It is man
made goods used in production eg. a dressmaker’s sewing machine is her capital.

Features of capital

a. Capital is man made

b. Units of the same capital are homogeneous
c. Mobility of capital varies – with size and the job that the unit of capital is meant to perform
d. Capital can be imported – from other countries

Types of capital

- Working capital – raw materials used in the production process. Higher levels of output
requires more capital.
- Fixed capital – includes factories and machinery used in production. It remains fixed for a
certain period of time. This capital is also called ‘physical capital’
- Social capital – (infrastructure), normally provided by the government eg. roads, schools,
hospital, housing etc.
- Human capital – people’s abilities, knowledge and skills. This capital is important to
production. For human capital to grow there must be education, skills training and health
care for the citizens

Capital accumulation – the increase of capital stock of a country. For there to be capital
accumulation. Society must forgo present consumption. The public must consume less and save
more income. Firms will borrow these funds (savings) to purchase more capital – which will
increase production.

Advancement in technology is making capital more versatile. Capital is important, as it is

replacing labour in the workplace eg. ATM’s have replaced bank tellers in many banks.

Entrepreneurship/ entrepreneurial talent – the entrepreneur performs 2 functions:

a. Combines the other 3 factors of production in a profitable manner

b. Bears the risk of production. Risk involves paying for the factors required to produce goods
before any revenue is received from selling the good produced. Note that the entrepreneur
might receive a negative return (loss) for his services
c. The entrepreneur is important because all firms, small and large businesses start out with an
entrepreneur.