commerce exam flashcards
define economics.
the study of how individuals and groups make decisions about our limited resources in order to satisfy out needs + wants.
what is a need? provide an example.
needs are necessary for survival. eg. water, food, shelter.
what is a want? provide an example.
non-essential items that enhance our standard of living. eg. phones, games, toys
define scarcity.
economic problem in which there is not enough resources to satisfy our unlimited wants.
define oppurtunity cost.
the lost alternative in a decision. because there is limited resources, choices must be made.
what are the three economic questions?
- what to produce?
- how to produce?
- for whom to produce?
what are natural resources? provide an example.
natural resources that come from the earth. for example, forests, water, minerals.
what are capital resources? provide an example.
man-made machinery and equipment to assist labour resources. for example, a whiteboard, a hammer, a fence.
what are labour resrouces? provide an example.
human work effort. for example, teachers, builders, students.
what are enterprise resources? provide an example.
using initiative, drive and personal goals to start and maintain a business. for example, bill gates.
what is a good?
a physical, tangible item.
what is a service?
an activity completed by a person or service in exchange for money.
define price mechanism.
where producer supply and consumer demand interact in the market to determine equilibrium price.
define equilibrium.
producer supply = consumer demand
what is the law of demand?
as the price rises, the amount demanded will decrease because less consumers will be willing to pay the price.
what are some factors that influence demand (other than price) ?
- price of substitutes
- advertising
- positive/negative publicity
- consumer trends
- preferences
- income levels
- expectations
what is the law of supply?
when prices increase, producers will be willing to supply more. when prices decrease, producers will be less willing to supply.
what are some factors that influence supply (other than price) ?
- availability of resources
- cost of raw materials
- efficiency of production
what is a non-legal rule?
a rule that applies to a group or organisation, but not society as a whole. for example, school uniforms.
what is a legal rule?
a rule that applies to all members of society. this includes criminal and civil law.
what are the principles of our legal system?
- equality before the law
- individual rights
- courts must be independent + impartial
what are some individual rights in our legal system?
- individuals being questioned by police have the right to remain silent.
- right to be warned that anything done/said may be used against them in court.
- right to an interpreter if individual does not understand english.
- individuals under 18 have the right to parent/guardian present during questioning.
what is criminal law?
criminal law is concerned with cases in which a person has committed an offence against the well-being of the community.
- the state (treason)
- a person (murder/assault)
- property (theft/damage)
- public order (traffic offences/abusive language)
define summary offence.
less serious offence.
define indictable offence.
more serious offence.
what is civil law?
concerned with cases in which there is a dispute between two private individuals.
- negligence (failure to take adequate care)
- nuisance (obstruction, inconvenience, damage to property)
- defamation (harming person’s reputation)
- trespass (entering property/handling possessions without permission)
what is the magistrate’s court for?
criminal: minor criminal offences such as traffic offences.
civil: up to $100,000 in damages.
branches of the magistrate’s court:
- coroner’s court
- koori court
- children’s court
age of usage at the children’s court
defendant aged between 10 and 17 when crime is committed, and under 19 on trial date.
what is the county court used for?
criminal: more serious offences are looked at here.
civil: unlimited amount in damages over $100,000.
what is the supreme court used for?
criminal: most serious criminal offences are looked at here.
civil: unlimited amount in damages over $100,000 and complex civil cases.
what is the high court used for?
constitutional matters.
what is the judge/magistrate’s role in the legal system?
- determines the facts of the case when no jury present.
- applies the law to the facts
- determines the outcome once a decision of guilt/innocence or liability has been made.
what is the jury’s role in the legal system?
- used for all serious criminal offences heard in the county/supreme court when defendant pleads not guilty.
- decides if defendant is guilty/innocent beyond reasonable doubt.
- not used in all civil cases, but can be requested consisting of six people.
what is the prosecutor’s role in the legal system?
- responsible for presenting a case in which an alleged offender has committed an offence.
what is the defendant’s role in the legal system?
- a person against whom either a criminal or civil matter is taken to court.
what is the defence’s role in the legal system?
- the person who represents the accused in court.
what is the barrister’s role in the legal system?
- legal advocate who is briefed by a solicitor to present the defence/prosecution case in court.
what is the plaintiff’s role in the legal system?
- the person who brings a civil action to court.
define democracy.
democracy is the power of citizens living within a city/state. voting in an election is one way that citizens can hold power.
define constitution.
a set of rules/guidelines that establishes law-making powers of a country.
what is a constitutional monarchy?
australia is a constitutional monarchy, meaning the queen (or now, king) is head of state, and the government holds power.
what is the crown?
governer general who represents the queen (or now, king). the governer general:
- appoints session times in parliament
- acts as commander in chief of defence force
- approves election dates
what is a preferential voting system?
a system of voting in which the voter indicates order of preference for candidates in an election.
compulsory voting
it is compulsory for all eligible australian citizens to enrol + vote in federal elections, by-elections, and referendums.
what is the role of the local government?
collects taxes from local property owners + receives grants from higher government.
what is the role of the state government?
collects taxes, recieves over half of money from federal.
what is the role of the federal government?
collects taxes on income, goods + service, company profits, to spend on national matters.
what is the house of representatives?
group of 151 members who decide on matters of national interest. (green)
what is the senate?
group of 76 members who decide on matters of national and international interest. (red)
