2 Economics + Business Flashcards
Goods and Services
Products made for consumers. Goods are tangible products that can be touched, such as bread. Services are intangible products that cannot be touched but benefit the consumer in some way, such as tutoring
Goods and Services Tax (GST)
Tax added to the value of some goods and services. Currently in Australia the tax is 10% of the value of goods and services sales
Gross
Tax or other contributions that have not been deducted
Gross Domestic Product (GDP)
The total market value of all goods and services produced Whithorn a country in a given timeframe
Import
To bring goods in from another country to be sold within a country
Industry
The productive activity of manufacturers or businesses that are involved in the process of making goods and services
Inflation
When the general level of prices paid for goods and services over a certain period of time increases
Interdependence
A Key Concept in Economics and Business: refers to he way participants in the economy rely on others to satisfy wants and needs
Interest Rates
The amount a borrower must pay to a lender for the use of assets such as money- usually expressed as a percentage of the total amount borrowed
Labour Market Reform
Reducing or eliminating government power in an industry to promote better competition in that industry
Labour Resources
Inputs from human effort (physical and/ or mental) used in the production of goods and services
Living Standards
The level of wealth, material goods, comfort and Life necessities available to people living in a geographical area
Segmentation
Dividing into parts
Shares
A unit of ownership in a publicly listed company
Specialisation
A Key Concept in Economics and Business: focusing on the production of a particular good or service in order to produce it more efficiently
Spend
Pay out money to buy goods and services
Subsidies
Payment by the government or a public body to assist a producer or industry to keep the price of goods and services low or competitive
Surplus
The portion of a product that is more than can be consumed
Surplus Budget
When government revenue is greater that government expenditure
Trade
Buying, selling or exchanging goods or services between people, countries, etc
Unemployment Rate
The percentage of people who are in the labour force who are unemployed. The labour force includes those who are employed and unemployed
Investing
Putting money into shares, properties or other financial schemes in the hope of making a profit
Macroeconomic Policy
Economic policy that focuses on an industry or market segment; it focuses on improving production over the medium to longer term
Market
The organised exchange of goods, services or resources between buyers and sellers
Material Living Standards
Standards that can be easily measured in terms of income per person, or consumption or purchase of goods and services
Microeconomic Policy
Economic policy that affects a particular company, industry or market. It focuses on promoting competition, productivity and efficiency
Natural Resources
Inputs from nature such as water, forests and fertile land used in the production of goods and services
Non-Material Living Standards
Standards that are not easily measured as they are intangible, and refer to the qualitative aspects of our lives, such as enjoyment of nature and feeling safe in the community
Product
An item (either a good or service) that is offered for sale
Profit
The difference between what is earned and what was spent in order to buy, operate or produce something
Recession
When economic growth falls for two or more quarters in a row
Revenue
Income a business receives from its business activities such as the sale of goods and services to customers
Saving
Keeping money so it can be used later
Scarcity
A Key Concept in Economics and Business: having limited resources to achieve unlimited needs and wants
Seasonally Adjusted
A statistical method that removes seasonal variation in time series data to gain a truer representation
