business and economics

Question 1

internal factors

Answer 1

Also known as ‘personal’ factors.
These factors relate to the consumer’s lifestyle and way of thinking.

-personal
-social and culture
-ethical and environmental
-psychological

For example, occupation or likes/dislikes.

Question 2

external factors

Answer 2

These factors are usually beyond consumer control.

-price
-marketing strategies
-finance

For example, price or marketing strategies

Question 3

price elastic

Answer 3

Price elastic is when the demand for a product, such as summer fruit, has a large drop off due to the price increase. If the supply of the product reduces, the price usually increases.

For example, summer fruit tends to be more expensive during the winter season as it is difficult to grow. Consumers will then avoid purchasing summer fruit due to the price increase.

price increase= reduced demand

Question 4

price inelastic

Answer 4

Price inelastic is when an increase in price has little to no impact on the demand for a product.

For example, the price of essential items, such as milk, bread and eggs, usually has little to no impact on the demand for these products

price increase= little to no effect on demand

Question 5

external factor marketing. what and how

Answer 5

Marketing is a business strategy that aims to increase consumer awareness of a product and to create a positive image about that product or brand.

Advertising in newspapers, magazines, TV, radio, internet, etc.
Sale promotions and incentives (50% off or ‘buy one, get one free’)
Customer service and personal selling (such as a sales representative at a car dealership)
Social media
Internet/digital marketing

Question 6

debt cycle

Answer 6

If you borrow money, whether it be from the bank or family, you must repay the full amount owing. If you fail to repay your bank loan, you may end up in a debt cycle. This is when you accumulate more debt through interest due to not keeping on top of your current debt payments.

Repaying your loan on time can result in an excellent credit rating / score!

Question 7

internal factor- personal

Answer 7

Consumers are not the same – they differ in age, lifestyle, occupation, gender, etc.

These differences have an impact on purchasing decisions.

For example:
When going on a holiday, do you think the young generation OR the mature age generation is likely to go on a ‘cheaper’ holiday? What about the families - the family with young children and financial commitments OR the family with adult children and little to no financial commitments?

Our personal circumstances can impact our purchasing behaviour.

Question 8

internal factor- social and culture

Answer 8

We are also influenced by our values and beliefs, such as our nationality, religion or racial background.

Question 9

internal factor- ethical and environmental considerations

Answer 9

As a consumer, you may consider the ethical and environmental considerations. You may ask yourself if the product was sourced and produced in a sustainable and environmentally friendly manner.

Question 10

psychological

Answer 10

This relates to the level of motivation a consumer has when purchasing a product.

Are they in urgent need to purchase the product?
Or are they simply purchasing the product due to a social need?

What exactly is motivating consumers to purchase the product?

Brand loyalty (such as loyalty to Apple or Samsung) can influence our purchasing behaviour. Marketing strategies, such as special campaigns, can help a business gain consumer loyalty. Consumers are then motivated to continue purchasing products from this business, and this business only.

Question 11

opportunity cost

Answer 11

When you purchase a product or service, you have incurred an opportunity cost.
In other words, if you had decided not to spend your money purchasing one item, what benefits could you have gained making a different purchasing decision?

For example, let’s just say you go over to the servo (Fast Fuel) to buy $5 chips twice a week.
This means your weekend spending money is now reduced by $10 (this is the opportunity cost – you have lost the opportunity to spend $10 over the weekend).

Question 12

cost benefit analysis is

Answer 12

A cost-benefit analysis is another way of analysing and assessing your purchasing decision.
The benefits gained by making the purchase need to be identified and added up, and then the cost will be incurred by making that purchase need to be subtracted.

In other words, you need to weigh up the positives and negatives of your purchase.

Question 13

comprehensive insurance

Answer 13

Comprehensive insurance
Covers loss or damage to your car as well as accidental damage to other people’s property

Question 14

third party insurance

Answer 14

Third party insurance
Covers your legal liability for damage to other people’s property caused by a motor vehicle accident that is your fault.

Question 15

efficiency

Answer 15

Efficiency is about producing goods without wasting any resources such as time, effort and money.

Question 16

productivity

Answer 16

Productivity is used to measure efficiency. The idea is to:
increase your output (final product) &
decrease your input (resources)
without jeopardising the quality of the output

Question 17

ways to improve productivity

Answer 17

If a business wants to increase productivity, there is a range of areas that can be worked on within that business:

Investing in and implementing new technology applications
Capital investment in equipment and facilities
Using ‘Just-In-Time’ (JIT) inventory management system
Training and upskilling of their workforce.

Businesses want to do things right the first time – by doing so, they will reduce costs and eliminate waste.

Question 18

investment in application of technology

Answer 18

Technology assists manufacturing industries to
produce products in greater quantity
of consistent quality
and in shorter production time

Machinery
Information Technology (Computers)
Manufacturing Technology (robotics)
Medical Technology (x-ray machines)
Mining Equipment (hydraulic mining shovels)
Telecommunication (radio, internet, telephone, etc)
Recycling technology (PureCycle Technology – removes odour, colour and contaminants.

Question 19

innovation

Answer 19

The introduction of new things or methods; improving the current work practices, procedures and products.

Question 20

capital investment in equiptment and facilities

Answer 20

The quality of the equipment will directly impact the productivity of a business.

If your equipment is regularly maintained, the likelihood of breakdowns or production downtime is unlikely to occur

Your equipment will eventually become obsolete (out of date). It’s important to recognise when to upgrade your equipment and facilities.

Lastly, productivity can increase through redesigning workstations, moving equipment to create a more logical flow, etc.

Question 21

just in time inventory management systems

Answer 21

Inventory is the storage of raw materials, component parts and finished goods.

Inventory control ensures the right quantities of parts and materials are available when required.
What do you think happens if we have too much stock?
What do you think happens if we don’t have enough stock?

Inventory control prevents:
Too much stock, which can result in out-of-date stock and/or theft
Not enough stock, which can halt (stop) the production line.
The ‘Just-in-Time’ inventory management system was introduced by Toyota in the early 1970’s.

• This inventory management system aims to avoid holding any stock (inputs or finished products).
• Supplies arrive just as needed for production and finished products are immediately dispatched or sold to customers.

Question 22

training and upskilling for workforce

Answer 22

A positive work environment can result in a productive work environment.

Well-trained staff are usually efficient and productive. They’re less likely to make mistakes, which can reduce the amount of resource waste.

When also motivated and loyal  More productive and efficient workforce
Multiskilled employees  More flexible, creative and innovative workforce
Valued employees  More willing to adapt to change

Question 23

cross training

Answer 23

Businesses may consider cross-training their staff (being able to work in a variety of departments). Being multiskilled can reduce the likelihood of mistakes being made through boredom or slowdown in production if a worker is absent.

Staff who feel valued by the business are likely to adopt new technologies and improve productivity due to heightened feelings of motivation and confidence.

Question 24

just in time inventory- benefits and potential problems

Answer 24

BENEFITS
No need to pay for storage
No out-of-date stock
No stock loss due to theft

POTENTIAL PROBLEMS
Insufficient stock
Efficient inventory control necessary

Question 25

organise structure

Answer 25

It is important for businesses to have an organisational structure in place.
Organisation structure = how a business organises their employees

An organisation structure determines:
Who does what
Who is responsible for whom and for what
Who makes the decisions

Question 26

flatter

Answer 26

Smaller businesses tend to use the flatter structure.
Features:
Improved communication due to fewer layers of staff
Employees are now involved in the decision making
Increased use of employee knowledge, skills and experience
Workers feel greater levels of empowerment and motivation

Question 27

netowrk structure

Answer 27

Features:
Functions are outsourced (outside the company)
Flexible and can adapt to changes in consumer demand and choices

Question 28

matrix

Answer 28

Often used when businesses are undertaking a project or an assignment

Features:
Forms a team of specialists from different functional areas, such as marketing, finance, etc.
Improved communication channels
Interdepartmental rivalries (competition between departments) are often reduced
Increased number of innovations being put forward due to the ‘cross-pollution’ of ideas

Question 30

how technology helped business become innovative : robotics

Answer 30

Robotics will perform tasks at a quicker rate and are unlikely to make mistakes.

In hospitals, surgeons have started using robotic equipment to perform their surgeries

Robotics tend to perform tasks traditionally completed by human beings.

Question 31

how technology helped business become innovative : big data

Answer 31

Big data is when you use a wide variety of data sources to collect and analyse information.

Consumer data can be valuable information.

Businesses collect data through:
Loyalty programs,
Call centre transcripts,
Social media,
Existing databases from other businesses
And more

Question 32

the cloud

Answer 32

The ‘cloud’ is a term used when referring to accessing computer, information technology (IT) and software applications through a network connection.

OneDrive is an example of a cloud service provider.

The cloud allows businesses to access resources from any location, as long as you have access to a computer.

Question 33

advantages and disadvantages of 3D printing

Answer 33

The application of 3D printing has many businesses recognising the opportunities it creates.

Advantages:
Creates customisable and complex designs
Lower costs as the business does not need to purchase expensive equipment
Creates less waste

Disadvantages:
Less choices in materials, colours and finish
If the 3D printer is large, the business will then need to find the space

Question 34

triple bottom line

Answer 34

The triple bottom line = financial, social and environmental.

Financial: concerned with profit and loss.

Social: concerned with how people (within and outside) the business are affected by the business.

Environmental: concerned with how the business impacts the natural environment.

Question 35

triple bottom line: social

Answer 35

A business can improve its social performance by:
Providing safe working conditions
Providing sufficient training
Paying above minimum wages
Allowing employees to have a healthy work-life balance
Treating employees and members of the community with respect and fairness
Purchasing supplies from local and/or socially responsible suppliers

Question 36

social enterprises

Answer 36

Social enterprises are businesses that trade to intentionally tackle social problems, improve communities, provide people access to employment and training, or help the environment.

Social Enterprises will often take it a step further by:
Providing employment to disadvantage people (homeless, newly released from prison, etc)
Using majority (at least 50%) of their profits to work towards their social mission

Question 37

triple bottom line: environmental

Answer 37

A business can improve its environmental performance by:
Reducing the wastage of resources
Provide greater protection and/or restoration to the natural environment
Using renewable energy (wind power, solar energy, etc)
Using recyclable materials / resources
Purchasing resources from eco-friendly suppliers

Question 38

applying the bottom line: benefits

Answer 38

Improving your social and environmental performance can improve your financial performance

Advantages:
You may enhance your business reputation and image
You may attract and retain employees
Customers are likely to be loyal to a socially and environmentally responsible business

= Improved profits (which improves your financial performance

Question 39

business ethics

Answer 39

Being ethical means behaving in a manner that is deemed ‘correct’ or ‘appropriate’ by society.

Pretend you’re serving a friend at work. Your friend has just asked you if you can discount the total cost by 50%. They’ve also asked if you can include a free item.

ethical and illegal are 2 different things

Question 40

code of ethics/conduct

Answer 40

A business may have a Code of Ethics or a Code of Conduct.

A Code of Ethics provides written guidelines to its workers and management to help them conduct their actions in accordance with the values and ethical standards of that business.

In other words, it is detailing what is acceptable and unacceptable in the workplace.

Question 41

code of ethics: ethics committeee

Answer 41

An ethics committee is a person or group of people appointed to ensure the Codes are upheld.

They:
Collect & monitor info
Develop policies & procedures
Keep staff informed about ethical behaviours
Ensure ethics training occurs regularly
Enable employees to raise concerns about any values / principles
Reward / recognize employees who uphold the Codes

Question 42

improving australias GDP

Answer 42

In order to improve Australia’s GDP, businesses could adopt the following four strategies:
Increasing their research and development spend
Adjusting marketing strategies
Improving the skills of your workforce
Stepping up the production capacity

Question 43

GDP

Answer 43

The GDP (Gross Domestic Product) is the total monetary value of all the finished goods and services within a country.

In 2020, Australia’s GDP was $1.331 trillion USD

The more goods and services businesses sell, the higher the GDP.

In Australia, the mining industry makes a substantial (large) contribution to our GDP. However, we may not be able to rely on the mining industry forever.

Question 44

increasing R&D spend

Answer 44

In order to respond to the pressures of customers and competitors, businesses are encouraged to conduct research and development (R&D). For example, undertaking new product or software design.

R&D can help businesses gain a competitive advantage. How?

Not all businesses are able to afford R&D. Fortunately, federal and state governments are offering grants and tax incentives to businesses who can prove they’re undertaking R&D

Question 45

stepping up production capacity

Answer 45

In order to improve productivity, businesses are encouraged to update / replace / maintain equipment.

This may be an expensive upfront cost, but in the long-term may reward the business, such as through increased productivity and production capacity.

Question 46

what is economics

Answer 46

Economics isa social science concerned with the production, distribution, and consumption of goods and services. It studies how individuals, businesses, governments, and nations make choices about how to allocate resources.

Question 47

hwo to determine economic growth

Answer 47

We can determine economic performance through the following measurements:

1. Economic growth​
2. Inflation​
3. Levels of unemployment​
4. The level of money market interest rates​
5. Sustainability indexes

Question 48

economic ideology: adam smith

Answer 48

classical economics
Also called free market economy
Argues that the market works best when left alone by governments
The use and distribution of economic resources is decided by consumers and producers.
Economic resources are owned by individuals who use them to generate profit.

Question 49

economic ideaology- john maynard keynes

Answer 49

interventionist economics

Government needs to intervene in the economy to ensure the most efficient and fair use of resources.

Governments are obligated to use monetary policy (control the money supply) and fiscal policy (government budgeting and spending) to control the economy.

Aim of these policies:
To minimise inflation
To maximise employment

Question 50

economic ideaology: milton friedman

Answer 50

monetarism
Supports a free market economy with little government intervention except via monetary supply.

When productivity increases, the government must increase the money supply in direct proportion.

The aim is to keep prices stable and minimise inflation.

Question 51

inflation

Answer 51

The rate of increase in the price of goods and services​

Australia’s inflation in 2021was 3.5% but in 2022 it was 7.8%​

Question 52

positives and negatives of inflation

Answer 52

Inflation is another important measure of economicperformance.​

Positives:
Acts as an incentive for investors to invest in fixed assets (physical, long term), such as housing. This is because the value of the asset increases overtime.
Negatives:
As prices increase, consumer spending power decreasesLiving standardsfall​
Increases the local prices, which makes it difficult for Australian businesses to sell overseas.

Question 53

cpi

Answer 53

The consumer price index is the measure used in Australia to determine the level of inflation.

It is measured by calculating the average percentage price increase of a ‘basket’ of consumer items typically used by Australian households, such as food, clothing, health, transport, etc.

These CPI figures are complied by the Australian Bureau of Statistics (ABS) and are released quarterly and annually.

Question 54

target inflation rate

Answer 54

Why is the target inflation rate around 2 - 3% ?

The 2 - 3% target range does not significantly
influence people’s economic decisions, such as spending.

This target range was set in the early 1990s when inflation of around 2 to 3 per cent had already been achieved.

According to the ABS, Australia’s inflation rate in in Jan 2024 was 3.4% (but in 2022 it was 6.61%)

Question 55

unemployment rate - math

Answer 55

the number of unemployed people divided by the number of people in the labour force

Question 56

defenition of unemployed

Answer 56

An unemployed person is someone who is:
Aged 15 years and over
Not employed
Taking active steps to find work
Available to start work

Question 57

frcitional unemployment

Answer 57

Occurs because it generally takes time totransition between one job to the next​

Also occurs when students move fromeducation into the workforce full time aswell as when women move back to theworkforce after having children​

Question 58

cyclical unemployment

Answer 58

When the economy is in a period ofdownturn or economic recession, thedemand for goods and services falls.​

This leads to many employers reducingtheir workforce.​

Question 59

structural unemployment

Answer 59

Occurs when the workers available foremployment do not have the skills andexperience required for the jobs that areavailable​

Re-training of employees is required​

Question 60

seasonal unemployment

Answer 60

Occurs because the demand for certaintypes of employees changes according tothe season (e.g. fruit pickers)

Question 61

cost of high unemployment level

Answer 61

Income Tax Revenue Falls (unemployed people are not paying income tax)
Government Expenses Rise (unemployment benefits need to be paid – Centrelink)
Increased Rates of Crime, Family Breakdown and Regional Decay
Wasted Labour Resources
Individual Costs (deskilling, lowered self-esteem, increased stress levels)

Question 62

the level of interest rates

Answer 62

Interest rates can be:
The cost of borrowing money.
The money received for depositing money in a savings account.

Question 63

from an economic pov: level of interest rates

Answer 63

High interest rates = less economic growth as investors are unlikely to borrow money to invest in new business ideas / expand existing businesses.

Low interest rates can discourage people from saving, so governments must strike a balance with interest rates.

The Australian Government often encourages banks to increase interest rates when the economy is booming to prevent it from overheating.

Overheated economy = the demand for goods and services increases faster than supply, driving up inflation.

Question 64

indexes

Answer 64

Indexes is an indicator or measure of something.

In economics, we use a range of indexes to measure the following:
Sustainability – sustainable development goals
Quality of Life – crime rates, the availability of health and education services, etc.
Environment – quality of air, global warming, etc
Resource Depletion (reduction) – effect of mining, etc

Question 65

sdg

Answer 65

Sustainabilitymeans meeting our own needs without compromising the ability of future generations to meet their own needs.
The sustainable development goals were adopted by world leaders at a United Nations summit in 2016-2017.
Designed to increase efforts to end poverty, fight inequalities and tackle climate change.
Based on a range of different measures.
Each country’s progress is monitored.

Question 66

phases of the business cycle: expansion

Answer 66

-increasing consumeer spending
-buisness expectations increasingly optimistic
-increasing buisness investment
-sales and profits rising
-unemployment levels falling

Question 67

phases of the business cycle: contraction

Answer 67

-decreasing consumer spending
-business expectations increasingly pessimistic
-decreasing business investments
-sales and profiits falling
-unemployment rising

Question 68

phases of the business cycle: peaks

Answer 68

• wages and saleries at high levels
  -business operating at full capacity
• sales and profits at highest levels
• low level of unemployment

Question 69

phases of the business cycle: troughs

Answer 69

-wages and saleries at low levels
-buisness operating at below full capacity
-sales and profits at lowest levels
- consumper spending at lowest levels
-high level of unemployment

Question 70

living standards

Answer 70

Living standards is the level of material welfare of a community, class or person.

In other words, it is the level of wealth, comfort, material goods and necessities available to a certain socioeconomic class or geographic area.

Question 71

measuring living standared

Answer 71

Living standards can be measured by factors such as:
​
Rates of economic growth​
Income per person​
The amount of goods and servicesconsumed by a country​​

Question 72

relationship between living standared and economic growth

Answer 72

If the living standard in a country is high, then this generally means that economic growth is sustainable and the economy is successful.

There are a number of benefits associated with increased economic growth:
Increased consumption (purchasing goods and services) = improved access to goods and services = improves living standards.
Increased job opportunities = more people are paying tax which goes towards education, health, etc = improves living standards.
Reduced poverty and unemployment = increases income = improved access to goods and services = improves living standards.

Question 73

ways of measuring living standared

Answer 73

There are a few ways we can measure living standards:

GDP (Gross Domestic Product)
Where-to-be-born Index (initially referred to as the ‘Quality of Life’ index)
The Better Life Index
Happy Planet Index
Human Development Index

Question 74

GDP

Answer 74

Considered the most common economic measure of living standards.
Allows general comparisons between countries.

For example,
High GDP = higher wages = people are able to purchase goods and services to satisfy their needs and wants.

Limited as it does not consider healthcare, medicine, hospitals, education or income inequality.

Question 75

foreign ownership levels

Answer 75

Foreign ownership is when a person or business owns property in a country that they are not citizens of.
For example, multinational corporations, such as McDonalds, operate in nearly every country. McDonalds will be considered a ‘foreign’ business in Australia as their headquarters are located in USA.
Necessary for somecountries to ensure there is sufficientinvestment and money to develop sectors of the economy.​

High levels of foreign ownership means:
Some of the profits earned are taken out of the country.
If the company leaves, local people will lose their jobs (e.g. in 2017, Holden ceased manufacturing).

Question 76

budget deficit

Answer 76

Government Debt:
The government will occasionally spend money to stimulate the economy (such as funding roads, etc).
If the government spends more than it recieves, then it may run a budget deficit.
The government will then need to borrow money, which can result in debt and interest payments.

Question 77

house hold debt

Answer 77

Household Debt:
If a person is not able to work due to unemployment or has a lack of disposable income and high levels of debt, then this can have a negative impact on their living standards.

It can also impact the economy if a number of people are not able to manage their personal debt.

Question 78

why government intervene

Answer 78

To ensure the most efficient and productive use of resources

To optimise the use of our economic resources (maximise their benefit)

To establish laws and infrastructure to
ensure the economy operates efficiently and effectively

To establish and maintain basic living standards

To redistribute income and avoid huge differences in wealth

To balance competing economic and social interests

Such as economic growth vs. environmental sustainability.

Question 79

fiscal policy

Answer 79

The fiscal policy is used to adjust the economy to a desired level where prices are steady, the employment level is satisfactory and there is potential growth.
Usually implemented when the economy is slow moving or moving too fast

The Australian Government is responsible for the fiscal policy

Question 80

monetary policy

Answer 80

The monetary policy encourages strong and sustainable growth in an economy. It aims to control inflation, preserve the value of money, manage interest rates and the total supply of money circulating in the economy.

RESERVE BANK OF AUSTRALLIA is respoinsible for administering the monetary polciy

Question 81

fiscal policy- improvemnet of living standared

Answer 81

Training and Workforce Development
Highly skilled and flexible workers can improve Australia’s productivity and international competitiveness, along with maintain current living standards.

These workers are a result of public sector schools, TAFE colleges and universities, which are funded by the federal and state government.

Taxation
Individuals and businesses are required to pay tax, such as:
GST (Goods and Services Tax)
Income Tax
Medicare Levy (funds the National Disability Insurance Scheme)

Tax can improve living standards through the provision of hospitals, education, transport, pensions, grants, etc.

Furthermore, the progressive tax system is designed to reduce wealth differences by applying high tax rates to high income earners

Work Visas and Migration
If there is a skill shortfall in the Australian workforce, the federal government will make various visas / programs available to source additional workers outside of Australia
The skilled migration program is one scheme offered by the government.
Targets potential immigrants with skills and abilities that will contribute to the Australian economy.
This program is permanent – the immigrant can permanently live in Australia.

Question 82

TTS- government intervention

Answer 82

The temporary skill shortage (TSS) visa is another scheme offered by the government.
Supports businesses that have skill shortages in their workforce.
The length of this visa varies between 2 – 4 years.

Question 83

HEALTHCARE- medicare- government intervention

Answer 83

Publicly funded healthcare system for all Australians.

Gives access to doctors, medical specialists, optometrists and other health professionals for free or at a reduced cost.

Also includes free care as a public patient in a public hospital and lower cost prescriptions.

Question 84

heath care- federal- government intervention

Answer 84

Responsible for setting the national health policy.

Funding health systems such as Medicare and PBS (Pharmaceutical benefits scheme)

Question 85

health care- state government- government intervention

Answer 85

Manages public hospitals, such as Casey hospital

Responsible for ambulances and emergencies services

Delivering preventive services such as immunisation programs

Question 86

local - health care- government intervention

Answer 86

Environmental services (such as sanitation – clean drinking water, disposal of human waste, etc)

Range of community-based health and home-care services

Question 87

government intervention- education

Answer 87

The provision of education in Australia encompasses four sectors:
Early childhood education (preschool)
Primary education (primary school)
Secondary education (high school)
Tertiary education (universities, TAFE and vocational education and training)

HELP (Higher Education Loan Programme) available for university students – repayment of student fees due after graduation – no interest charged.

Government schools educate approximately 60% of Australian students.

Question 88

income levels

Answer 88

Your income will influence your wealth levels.

According to the ABS (Australia Bureau of Statistics), income and wages have been growing at a slow rate over the past 4 years.

Salaries will vary across gender – on average:
Male employees earn more than female employees.
Female employees make up more of the part-time workforce

Question 89

Influences on Wealth and Income in Australia: Occupation

Answer 89

Your occupation will influence your wealth levels.

People in Australia are employed in the private (non-government) or public sector (government).

People working in the public sector earn more than those working in the private sector (around $319 more per week).

Private sector comprised 81% of all employees

Question 90

Influences on Wealth and Income in Australia: Inheritance

Answer 90

Your inheritance will influence your wealth levels.

Inheritance is when you receive property, money or other assets from a relative/ancestor by legal succession or will.

Inherited wealth is one way that inequality is generated. Wealthier households tend to receive larger inheritances, on average, than poorer households. ‘The rich get richer’.

Question 91

Influences on Wealth and Income in Australia: Education: Skills & Qualifications

Answer 91

Your education will influence your wealth levels.

A bachelor’s degree had the most impact on career advancement. Most higher-status jobs require university qualifications.

Traineeships, TAFE certificates and diplomas had an early increase on earnings, but it flattened out.

It is mainly males whose earnings are affected positively by apprenticeships (due to pay inequality).

Question 92

Influences on Wealth and Income in Australia: Geography & Location

Answer 92

Your location will influence your wealth levels.

A person living in a remote area is likely to be paid more than a person living in a large city. This is because it is harder to find and retain employees in remote areas.

The government will occasionally offer incentives to encourage individuals to work in remote communities.

A number of jobs are fly in, fly out (FIFO) where employees go to their job for a few weeks and then fly home to family, rather than relocate permanently to the area where they work.