1.I Contributions Of Businesses To Economic And Social Wellbeing Flashcards
Define economy.
A system set up with 3 steps to determine (1) what to produce, (2) how to produce and (3) to whom production will be distributed.
Identify and define Australia’s economic system.
Australia operates in a market capitalist economy. Products and services are provided by private buyers and sellers.
Explain businesses’ contribution to employment.
Employed Australians will use the wage they have earned to buy goods and services to meet their needs and wants, supporting businesses and opening up further opportunities for job creation.
Explain businesses’ contribution to taxation revenue.
Businesses also provide the public with goods and services that, when taxed, provide the government with additional revenue.
Explain businesses’ contribution to economic growth.
Economic growth occurs when a nation increases the real value of goods and services over a period of time. One common measure to check whether economic growth has occurred is to see whether our gross domestic product or GDP has grown.
Define GDP.
GDP is the monetary value of all the finished goods and services produced in Australia over a specific period.
Gross
Domestic
Product
Explain businesses’ contribution to export earnings.
Exporting products overseas contributes to Australia’s balance of payments (BOP). The BOP is a record of trade and financial transactions between residents of Australia and residents of the rest of the world, over a given period. A favourable BOP exists when there are more payments coming in than going out.
Explain businesses’ contribution to research and development.
Businesses undertake this to expand their knowledge of products and processes. Researchers and scientists undertake R&D in a business to produce new products and improve existing products.
Explain businesses’ contribution to career and social well-being.
Providing employment: People who have jobs have the opportunity to build up their self-esteem by doing something that they consider to be worthwhile.
Explain businesses’ contribution to innovation.
For example, the way the mobile phone has changed all of society’s lives.
Explain businesses’ contribution to social responsibility.
Social responsibility refers to the way in which a business adheres to social norms and standards in society. Businesses need to ensure they are acting responsibly to keep their customers happy. This can be achieved by paying correct wages, not testing on animals, enforcing sustainability practices within their business
List the contributions of business to a nation.
- Employment
- Taxation revenue
- Economic growth
- Export earnings
- Research and development
- Career and social wellbeing
- Innovation
- Social responsibility
