Commerce Exam Flashcards
Economy
A system of the sale, production, distribution and consumption of goods and services by people and groups
Opportunity cost
The value of the next best alternative use of resources
Profit
money business earns - expenses
Revenue
This income a business receives from sales
Exchange rate
The amount of one currency that can be exchanged for another
Injection
Money that enters the economy
Leakage
Money that leaves the economy
Globalisation
The interconnectedness of countries around the world
Commodities
Raw materials that can be bought or sold
Economies of scale
Savings in costs resulting from higher levels of production
Import
Resources from a country into Australia
Export
Resources from Australia to another country
Natural resource
Come from nature
- coal
- fish
- wood
Labour resource
Physical skills of workers that are needed to sell goods and services
- store manager
- bricklayer
- nurse
Capital resource
Manufactured resources used to produce and transport goods and services
- machinery
- buildings
- trucks
Problem of scarcity
Not enough resources for all the needs and wants of society. Use opportunity to decide the best option for each resource
3 economic questions
What to produce?
How to produce?
For whom to produce?
Communism
Pure planned economy
Pure competition
Pure free market
Subsistence economy
Producers self sufficient, no money, use methods like hunting and farming
e.g. Alaska, Greenland
Market economy
Exchange goods and services, no government involvement, producers decide what to produce
e.g. Australia, Japan
Planned economy
Government owns resources and makes decisions, no private enterprise
e.g. North Korea, China
Mixed economy
Mix of planned and market economy, government and private enterprise
e.g. most countries a mix, some more one than the other
Consumers
- buys goods and services
- earn wages
- pay taxes
Producers
- produce goods and services
- aim to make a profit
- pay taxes
Government
- charge taxes
- pay wages
- provide benefits and services
Financial services
- hold savings
- lend money
- pay taxes
Overseas sector
- trade with countries
- import to and export from Australia
Expenditure
Expenses, spending money
Circular flow model
- Shows the relationship between consumers and producers
- shows how all sectors are important
Leakages in circular flow model
- saving
- taxation
- imports
Injections in circular flow model
- investments
- government spending
- exports
How Australia is linked to global economy
- trade
- labour
- technology
Why trade is important to Australia
- earn money from exports
- provides employment for Australians
- Australia can charge more for exports
- allows people to buy resources cheaper
Interest
the amount of money a person has to pay in addition to the original amount
- interest rate usually measures as a %
Principle
Money that was originally invested or loaned
Scam
A scheme that is deliberately dishonest
Why save money?
- to earn more
- to spend less
Setting a saving goal
- What do you want
- How much money you can put aside weekly
- How long it will take to reach your goal
Simple interest
Calculated on the principal of a loan
Compound interest
Calculated on the principal amount and the accumulated interest in previous periods
Good dept vs Bad dept
Good: making a loan for a purchase that will provide income or increase in value
Bad: making a loan for a purchase that will not provide interest or decrease in value
Fixed expenses
Predictable, know when you have to pay
- rent
Dept expenses
Money you owe or have to repay
- credit card payments
Unexpected expenses
Fall outside the categories of regular bills
- medical bills
Investment risk
The likelihood of of losing money in an investment scheme
Investor
Buys shares and invests in companies
Stockbroker
In between investor and share seller, help with exchange of shares
Types of scams
Charity, psychic (will cause trouble), romance, pushing emails (sounds like a bank), phone calls, Covid-19, impersonation
How to protect yourself from scams
- don’t click hyperlinks
- don’t respond
- don’t give strangers access to your computer
- use a source to verify if the contact is legit
Enterprising
Demonstrates initiative and willingness to undertake projects
Soft skills
Personal qualities that help a worker
- communication, teamwork skills
Hard skills
Learnable and teachable skills specific to the job
- computer skills, cooking skills
Modern award
Legal agreement on minimum wage and conditions
Enterprise agreement
Agreement made between employer and employee about wages and conditions
Fair work commission
Australia’s regulations of wages and work conditions
Unfair dismissal
A harsh, unjust or unreasonable reason for a worker’s dismissal
How covid changed workplaces
- working remotely
- increased awareness of physical and mental health
- social interactive environment
- benefits of flexibility and convenience
What does the fair work commission use?
The better off overall test
How to determine if there has been discrimination
- person is disadvantaged
- resulted in action being taken
How to determine if bullying has occured
- person behaved unreasonably to worker
- bullying repeatedly
- results in a health or safety risk
Reasons for summary dismissal
- theft
- fraud
- violence
