Business and economics

Question 1

Economic activity at its highest

Answer 1

peak

Question 2

Lowest period for production

Answer 2

trough

Question 3

businesses produce more and hire more employees

Answer 3

expansion

Question 4

production is cut down

Answer 4

contraction

Question 5

inflation is increasing

Answer 5

expansion

Question 6

unemployment at its highest

Answer 6

trough

Question 7

How inflation is measured

Answer 7

Inflation is measured by the percentage increase or decrease.

Question 8

State government responsibilities

Answer 8

-Manages public hospitals
-responsible for hospitals
-ambulances and emergency services

Question 9

difference between minor and major consumer decisions

Answer 9

A minor consumer decision is a decision that involves low cost, low risk and low involvement from the customer. Examples of minor decisions are:
-buying a pack of gum
-ordering a pizza for dinner
-choosing a shampoo from a range of brands

Question 10

Name three sections that create a business plan

Answer 10

-Financial plan
-operations plan
-marketing plan
-management plan

Question 11

Frictional

Answer 11

Those seeking first employment or switching jobs
-Students moving from education into the workforce.

Question 12

Structural

Answer 12

Those seeking employment due to their job becoming outdated/obsolete due to a skillset that is no longer useful.
-A cashier at a supermarket losing their job due to self-serve machines.

Question 13

Cyclical

Answer 13

Those unemployed as a result of a poor economy.

Question 14

Seasonal

Answer 14

Those unemployed due to businesses slowing down / shutting down due to seasonal changes.
-A strawberry picker no longer provided work during autumn and winter.

Question 15

comprehensive car insurance

Answer 15

Covers both third party and damage to your own car regardless of who’s fault it is

Question 16

Third-party car insurance

Answer 16

The minimum level insurance, does not cover your own car or injuries, covers damage you caused to other people’s property

Question 17

Internal factors

Answer 17

These factors relate to the consumers lifestyle and way of thinking likes dislikes

Question 18

external factors

Answer 18

Are usually beyond the consumers control for e.g. price marketing strategies

Question 19

Price elasticity

Answer 19

Needs like eggs and petrol donts rise in price as the demand stays the same as people need them. In certain seasons people do not need strawberries making it price elastic as the price varies.

Question 20

fiscal policy

Answer 20

The fiscal policy is used to adjust the economy to a desired level where prices are steady.

Question 21

monetary policy

Answer 21

encourages strong and sustainable growth in an economy. It ais to control inflation, preserve the value of money, manage interest rates and the total supply of money circulating in the economy.
-Impacts the change of the cash rate, which influences interest rates on unsecured loans.

Question 22

Local Government

Answer 22

-environmental services; sanitisation, clean water
-dispose human waste
-community based healthcare services

Question 23

Federal government responsibilities

Answer 23

funds healthcare systems Medicare, PBS