Business & Living Standards

Question 1

GDP (Gross Domestic Product)

Answer 1

The total monetary value of all the goods and services produced by a country over a specific time period (usually a year)

Question 2

GNI

Answer 2

Total income received by the country from its residents and business regardless of whether they are located in the country or abroud

Question 3

GNP

Answer 3

Includes the income of all a country’s residents and businesses whether it flows back to the country or is spent abroad. It also adds subsidies and taxes from foreign sources.

Question 4

Inflation

Answer 4

A measure of how much the cost of something is increasing by

Question 5

CPI

Answer 5

Consumer Price Index (used to measure inflation)

Question 6

Basket of Goods

Answer 6

All the key products that people purchase which are used to measure inflation

Question 7

Supply and Demand

Answer 7

Supply is how much of something there is, demand is how much of that thing is needed

Question 8

Living Standards

Answer 8

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

Question 9

Material Living Standards

Answer 9

Living standards which refer to our access to physical goods and services. (e.g. a house, a car, food etc.)

Question 10

Non-Material Living Standards

Answer 10

Living standards which cannot be measured in dollar terms and are intangible. (e.g. freedom of speech, low crime and discrimination levels, preservation of environment, adequate leisure time)

Question 11

Absolute/Extreme Poverty

Answer 11

Not having basic human necessities such as enough food, water, shelter and clothing.

Question 12

Relative Poverty

Answer 12

Not having the amount of income one needs to sustain the average living standards that we expect

Question 13

Government Revenue

Answer 13

Income that a government receives predominantly from taxes, but also from non-tax sources such as loads and dividends from government-owned businesses

Question 14

Macroeconomic Policy

Answer 14

Economic policy that affects the whole of the nation, such as budgetary policy and monetary policy. It targets changes that affect the entire economy, such as unemployment, economic growth and inflation.

Question 15

Expenditure

Answer 15

The amount of money spent by a person, business or government

Question 16

Fiscal Policy

Answer 16

The government’s management of the federal budget-adjusting expenditure and tax rates to influence the performance of the economy.

Question 17

Balanced Budget

Answer 17

Government spending is equal to the revenue it has received

Question 18

Defecit Budget

Answer 18

Government spending is greater than the revenue it has received

Question 19

Surplus Budget

Answer 19

Government has received more revenue than it has spent

Question 20

Monetary Policy

Answer 20

Actions by the Reserve Bank of Australia (RBA) that affect the money supply and interest rates

Question 21

Competitive Advantage

Answer 21

When a business is able to outperform similar businesses in a market; this may be due to factors such as skilled personnel and the ability to reduce costs and improve quality

Question 22

Consumer

Answer 22

Individual who purchases goods/services for personal use

Question 23

Profit

Answer 23

Amount left over after deducting expenses from the revenue received by a business

Question 24

Product

Answer 24

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

Question 25

Economies of Scale

Answer 25

Producing larger quantities of a good/service that result in a reduced unit costs of production.
Larger businesses have the advantage of lower costs of production because it’s cheaper to produce larger volumes of goods/services than smaller volumes

Question 26

Marketing

Answer 26

Activities that businesses undertake to promote the buying or selling of products

Question 27

Outsourcing

Answer 27

Obtaining goods/services which were previously provided by employees from within a business, by contract from a supplier outside the business

Question 28

8 Dimensions of Quality

Answer 28

1. Performance
2. Features
3. Reliability
4. Conformance
5. Durability
6. Serviceability
7. Aesthetics
8. Perceived Quality

Question 29

Innovation

Answer 29

Changing an existing product or process so that it is more effective

Question 30

Gamification

Answer 30

Adding game mechanics into nongame environments, like a website, online community, learning management system or business’ intranet to increase participation

Question 31

Market Segmentation

Answer 31

Dividing the market into groups of consumers with common needs and characteristics. E.g. Food (affected by culture/religion etc -> Maccas in India has no beef/pork)

Question 32

Positioning

Answer 32

Distinct image for brand/product that differentiates it from similar brands/products in the market. (E.g. Kmart “low prices for life” campaign)

Question 33

Business Culture

Answer 33

The ‘culture’ of a business influenced by values, beliefs, the vision for the business, habits, etc.

Question 34

Labour productivity

Answer 34

Amount of goods/services that a worker produces in a given amount of time

Question 35

ASEAN

Answer 35

Officially the Association of Southeast Asian Nations, is a political and economic union of 10 member states in Southeast Asia. A key trading partner for Australia