2 Economics + Business

Question 1

Goods and Services

Answer 1

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

Question 2

Goods and Services Tax (GST)

Answer 2

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

Question 3

Gross

Answer 3

Tax or other contributions that have not been deducted

Question 4

Gross Domestic Product (GDP)

Answer 4

The total market value of all goods and services produced Whithorn a country in a given timeframe

Question 5

Import

Answer 5

To bring goods in from another country to be sold within a country

Question 6

Industry

Answer 6

The productive activity of manufacturers or businesses that are involved in the process of making goods and services

Question 7

Inflation

Answer 7

When the general level of prices paid for goods and services over a certain period of time increases

Question 8

Interdependence

Answer 8

A Key Concept in Economics and Business: refers to he way participants in the economy rely on others to satisfy wants and needs

Question 9

Interest Rates

Answer 9

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

Question 10

Labour Market Reform

Answer 10

Reducing or eliminating government power in an industry to promote better competition in that industry

Question 11

Labour Resources

Answer 11

Inputs from human effort (physical and/ or mental) used in the production of goods and services

Question 12

Living Standards

Answer 12

The level of wealth, material goods, comfort and Life necessities available to people living in a geographical area

Question 13

Segmentation

Answer 13

Dividing into parts

Question 14

Shares

Answer 14

A unit of ownership in a publicly listed company

Question 15

Specialisation

Answer 15

A Key Concept in Economics and Business: focusing on the production of a particular good or service in order to produce it more efficiently

Question 16

Spend

Answer 16

Pay out money to buy goods and services

Question 17

Subsidies

Answer 17

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

Question 18

Surplus

Answer 18

The portion of a product that is more than can be consumed

Question 19

Surplus Budget

Answer 19

When government revenue is greater that government expenditure

Question 20

Trade

Answer 20

Buying, selling or exchanging goods or services between people, countries, etc

Question 21

Unemployment Rate

Answer 21

The percentage of people who are in the labour force who are unemployed. The labour force includes those who are employed and unemployed

Question 22

Investing

Answer 22

Putting money into shares, properties or other financial schemes in the hope of making a profit

Question 23

Macroeconomic Policy

Answer 23

Economic policy that focuses on an industry or market segment; it focuses on improving production over the medium to longer term

Question 24

Market

Answer 24

The organised exchange of goods, services or resources between buyers and sellers

Question 25

Material Living Standards

Answer 25

Standards that can be easily measured in terms of income per person, or consumption or purchase of goods and services

Question 26

Microeconomic Policy

Answer 26

Economic policy that affects a particular company, industry or market. It focuses on promoting competition, productivity and efficiency

Question 27

Natural Resources

Answer 27

Inputs from nature such as water, forests and fertile land used in the production of goods and services

Question 28

Non-Material Living Standards

Answer 28

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

Question 29

Product

Answer 29

An item (either a good or service) that is offered for sale

Question 30

Profit

Answer 30

The difference between what is earned and what was spent in order to buy, operate or produce something

Question 31

Recession

Answer 31

When economic growth falls for two or more quarters in a row

Question 32

Revenue

Answer 32

Income a business receives from its business activities such as the sale of goods and services to customers

Question 33

Saving

Answer 33

Keeping money so it can be used later

Question 34

Scarcity

Answer 34

A Key Concept in Economics and Business: having limited resources to achieve unlimited needs and wants

Question 35

Seasonally Adjusted

Answer 35

A statistical method that removes seasonal variation in time series data to gain a truer representation