Consumers and Business - Markets

Question 1

4 things that reduce consumer sovereignty

Answer 1

Marketing
Misleading conduct
Planned obsolescence
Anti-competitive behavior

Question 2

What influences business operations?

Answer 2

1. skills
2. consumer demand
3. business opportunities
4. the amount of capital

Question 3

Productivity in the economy affects

Answer 3

1. outward shift in the PPC
2. higher economic output
3. greater competitiveness
4. lower inflation
5. improved living standards

Question 4

What are the firms’ motives

Answer 4

1. maximising profits
2. meeting shareholder expectations
3. increase market share
4. satisfying behaviour (profits, social
5. maximising growth

Question 5

Productivity effects

Answer 5

1. less wastage
2. lower production costs and high profits
3. lower inflation
4. higher income
5. improves Australia’s competitiveness within the industry internationally

Question 6

Advantages of internal economies of scale

Answer 6

1. bulk buying
2. recycling
3. specialisation
4. research
5. investment

Question 7

Advantages of external economies of scale

Answer 7

1. industry grow
2. localisation
3. cheaper investment funds

Question 8

Disadvantages of external economies of scale

Answer 8

1. pollution
2. taxation
3. concentration of an industry
4. production price rises

Question 9

How does technology change production methods?

Answer 9

1. increased productivity
2. existing resources efficiently
3. changes in methods of production
4. lower costs
5. increased efficiency
6. reduction/increase of workforce