Business & Living Standards Flashcards
GDP (Gross Domestic Product)
The total monetary value of all the goods and services produced by a country over a specific time period (usually a year)
GNI
Total income received by the country from its residents and business regardless of whether they are located in the country or abroud
GNP
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.
Inflation
A measure of how much the cost of something is increasing by
CPI
Consumer Price Index (used to measure inflation)
Basket of Goods
All the key products that people purchase which are used to measure inflation
Supply and Demand
Supply is how much of something there is, demand is how much of that thing is needed
Living Standards
The level of wealth, material goods, comfort and life necessities available to people living in a geographical area
Material Living Standards
Living standards which refer to our access to physical goods and services. (e.g. a house, a car, food etc.)
Non-Material Living Standards
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)
Absolute/Extreme Poverty
Not having basic human necessities such as enough food, water, shelter and clothing.
Relative Poverty
Not having the amount of income one needs to sustain the average living standards that we expect
Government Revenue
Income that a government receives predominantly from taxes, but also from non-tax sources such as loads and dividends from government-owned businesses
Macroeconomic Policy
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.
Expenditure
The amount of money spent by a person, business or government
Fiscal Policy
The government’s management of the federal budget-adjusting expenditure and tax rates to influence the performance of the economy.
Balanced Budget
Government spending is equal to the revenue it has received
Defecit Budget
Government spending is greater than the revenue it has received
Surplus Budget
Government has received more revenue than it has spent
Monetary Policy
Actions by the Reserve Bank of Australia (RBA) that affect the money supply and interest rates
Competitive Advantage
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
Consumer
Individual who purchases goods/services for personal use
Profit
Amount left over after deducting expenses from the revenue received by a business
Product
An item (either good/service) that is offered for sale
Economies of Scale
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
Marketing
Activities that businesses undertake to promote the buying or selling of products
Outsourcing
Obtaining goods/services which were previously provided by employees from within a business, by contract from a supplier outside the business
8 Dimensions of Quality
- Performance
- Features
- Reliability
- Conformance
- Durability
- Serviceability
- Aesthetics
- Perceived Quality
Innovation
Changing an existing product or process so that it is more effective
Gamification
Adding game mechanics into nongame environments, like a website, online community, learning management system or business’ intranet to increase participation
Market Segmentation
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)
Positioning
Distinct image for brand/product that differentiates it from similar brands/products in the market. (E.g. Kmart “low prices for life” campaign)
Business Culture
The ‘culture’ of a business influenced by values, beliefs, the vision for the business, habits, etc.
Labour productivity
Amount of goods/services that a worker produces in a given amount of time
ASEAN
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
