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Commerce > Exam > Flashcards

Exam Flashcards

1
Q

Define market

A

A situation where potential buyers are in contact with potential sellers and there is a means of exchange.Types of markets we need

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2
Q

Define Consumer sovereignty

A

The consumer is “king” (sovereign ). Meaning the consumer has the power to influence what G+S will be produced in a market economy.

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3
Q

The three basic economic questions

A

~ What to produce ?
~ How to produce ?
~ For whom to produce ?

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4
Q

Economic problem

A

Assumes that economic resources are limited and that consumer needs and wants are unlimited.This creates the economic problem called scarcity

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5
Q

What’s innovation

A

An idea or invention that is completely new. Can result in new products and services or lead to improvement in existing products .

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6
Q

Enterprising

A

Having the ability and capacity to come up with original and creative ideas and its to action.Often involves being able to think outside the box

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7
Q

Entrepreneurs

A

People willing to take risks and start new business ventures with the intention of making money.They are not afraid to take risks and will work hard to achieve their goals and objectives

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8
Q

Attributes of an entrepreneur

A
  • risk taker
  • confident
  • Hard working
  • Embraces change
  • strong leadership skills
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9
Q

Exports and examples

A

Australian-made goods and services sold overseas.Example coal , natural gas and beef

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10
Q

Starting a business - things to consider before opening up a business

A

Their is high failure rate for new businesses

It takes hard word , persistence and adequate resources and planning to give the business the best possible chance of success

_ Selecting right location
_start from scratch or but an existing business

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11
Q

Right location

A

-consider the target market so you can choose the best local that will give you the best chance of success
Example - selling heavy winter coats in far North Queensland when temps barely fall below 25* will not attract a large enough target market
Again highly price gourmet food is unlikely to attract people in town that has high unemployment and low income levels than the average

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12
Q

Target market

A

The market to which a business is specifically aiming its product or service

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13
Q

Established business pros & cons

A

Pros

  • may be apart of a franchise
  • failure rate is lower than starting a business one form starch
  • reputation , with brand awareness ( could work both ways tho )

Cons

  • Higher cost ( paying for rep )
  • less independence and your own touch
  • Difficulty taking over someone else’s ideas
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14
Q

From starch businesses pros & cons

A

Pros

  • if you want maximum independence
  • get to call the shots - staff , where it’s located how it’s set up
  • usually cheaper
  • not paying goodwill

Cons

  • much higher failure rate
  • hard to build up a rep and can take a while
  • finance difficulties , banks cautious about new businesses
  • requires a lot of time and research
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15
Q

Goodwill

A

Found by subtracting the purchase price of a business from the value of the business net assets.Will be higher in businesses with more established reputations

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16
Q

Franchise

A

Created when the owner of a successful business ( the franchiser )expands their business.They do this by charging interested people a fee to use the franchisers business name and model

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17
Q

The three owner structures

A
  • sole trader
  • Partnership
  • Private company
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18
Q

Sole trader pros & cons

A

Advantages

  • the owner makes all decisions about running of the business
  • the sole trader keeps all the profits themselves
  • cheap to set up

Disadvantages

  • can be difficult to obtain finance
  • unlimited liability
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19
Q

Sole trader info & examples

A

Info

  • owned by one , though owner may have employees
  • income tax is assessed according to personal tax

Examples - milk bar , carpenter , hairdresser

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20
Q

Partnership info and examples

A

Info

  • The business is owned by 2-20 partnership
  • profits are distributed according to a pre - determined formula

Examples : lawyer , doctors , accountants

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21
Q

Partnership pros and cons

A

Advantages

  • share workload who may have difference expertise
  • greater access to resources and money

Disadvantage

  • unlimited liability
  • can lead to disagreements about running of the business between partners
  • problems many arise if one partner wants to leave the business
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22
Q

Opportunity cost

A

The lost alternative uses to which economic resources could been allocated .This is because of scarcity we have choose between both both resources . A Example is when a area of land is made into a skate ramp.This means the alternative use such as the park is lost.

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23
Q

Economics

A

Is the study of how individuals and groups make decision with limited resources so as to satisfy consumer needs and wants.It deals with the production distribution and consumption of goods and services

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24
Q

Complimentary produces

A

Are those produces that are used alongside a main product.For example a Coffee Pod Machine requires coffee pods to work.

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25
Q

Substitute Produces

A

Are products that would be used instead of another product.You would use either a laptop or a desktop, you would not require both produces.

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26
Q

Define assets

A

Assets are those items that a business owns such as equipment , cars or premise .Anything of value which is owned by the business

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27
Q

What are the 3 levels of government ;

In charge of what ??

A

Local : Libraries , motor vehicles, animal control , parks , street signs , footpaths , garbage

State : Schools , hospitals , forestry , police , fire brigade

Federal :Posts , defence force , passports , imports and exports , jails and currency

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28
Q

What is the concept of representative democracy

A

A type of democracy founded on the principle of elected officials acting on behalf of groups of people

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29
Q

What are the 2 main political parties

A
  • Liberal

* Labour

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30
Q

What is a double majority

A

To pass a referendum , a double majority must occur .This includes

  1. ) The population as a whole (50% + 1 )
  2. ) 4/ 7 states need to agree
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31
Q

How do we know what level of government is responsible for what ?

A

The constitution ( the common wealth of Australia Constitution Act 1901) .Section 51.This tells us what the federal and state governments are responsible

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32
Q

How can we change the constitution

A

We can change the constitution by holding a referendum.The referendum only requires a yes/no answer. It can only be passed when a double Majority happens

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33
Q

Who is eligible to vote ?

What is the fine ?

A

1) Austrlian citizen
2. Over 18 years old
3. Enrolled to vote

$25

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34
Q

Name the 6 factors of demand

A
  • Price of substitutes
  • Expectations
  • Price of complementary
  • Price of product
  • Income
  • Preferences
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35
Q

What is a representative democracy

A

Australia is a representative democracy.This means that the government is representative of the democracy of the people .

The politicians are elected from the community’s

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36
Q

Name the major political parties

A

Labour
Liberal
Nationals
Greens

37
Q

What is the difference between the senate and house of representitives

A

The house of Rep’s is the lower house and consist of 150 seats

Senate is the upper house and consists of 76 seats

Senate is Red

House rep is green

38
Q

How many seats in the senate

A

76 seats

39
Q

How many seats in the House of Representatives

A

150 seats

40
Q

Who can vote

A
  • must be over 18
  • must be an Austrlian citizens
  • living at an address for at least one month
  • Hasn’t been in jail for over 3 years
41
Q

How often are elections held (Federal )

A

Every 3 years

42
Q

How often are elections held (state )

A

Every 4 years

43
Q

What is an electorate

A

A geographic area consisting of approx 80,000 others who vote in a representative

There are 150 electorates

Mine is Flinder’s

44
Q

What is preferential voting

A

A voting system which votes are allocated in order of preference.Where there is no clear majority , the person with the least votes has their votes reallocated to second preferences

Eg.) [1] Joe
[2] Kelly
[4]Bob
[3] Miah

45
Q

Who is the leader at federal level

A

Malcolm Turnball ( Liberal )

46
Q

Who is the leader state

A

Daniel Andrews (labour )

47
Q

Private Company

A

The business can have between 1-50 shareholders

  • private company is a separate legal entity and therefore the company pays tax on any profits made
  • has Pty Ltd after its name which stand for proprietary limited

Example
Aldi , supermarkets , taller stalls

48
Q

Business ethics

A

The moral guild lines and principles a business should follow.

49
Q

How to be ethical producer

A
  • if using supplies form poor counties ensure fair price is paid
  • establish partnerships with supplies that have ethical polices in place
50
Q

How to be an ethical consumer

A

Do research and buy products from businesses with a strong ethical rep
-for ethical to use products that haven’t been tested on animal

51
Q

Resources ??

A

Land -natural resources

  • Pastures ; crops and farm animals
  • Mineral reserves ; which could be used in construction
  • oceans which provide fish to eat , pearls to wear
  • Forests for timber to build buildings and specimens for medical research

Capital - man made machinery and equipment
*increases the efficiency of the production process and included computer ,ladder , trucks

Labour - work /effort
*person power available to work in the production process

Enterprise - having the qualities that make the posses the ability to combination resources and taking advantage of the mark opportunies

52
Q

The difference between wants and needs

A

Need - necessarily for survival
* Water , food , shelter

Wants -non essential items ( enhance our standard of living )

  • toys
  • mobile phones
  • computer games
53
Q

Equilibrium,

A

Where producer supply equals consumers demand.

54
Q

Scarcity

A

Economic problem whereby there is not enough resources to satisfy unlimited needs and wants

55
Q

Factors of supply

A

ACE

  • Availability of resources
  • Available labour and land
  • New discoveries of raw materials
  • Natural disasters
  • Cost of raw materials
  • Wage increase
  • Price increases of parts and fuel
  • interest rates increase / decrease
  • Efficiency of production
  • New production methods
  • Staff training
  • Reducing waste
  • New machinery and technology
56
Q

Define Demand

A

Law demand states that the price and quantity demanded are inversely proportionate .As price rises the amount demanded will fall as less consumers will be willing and able to pay that price and vice versa.

57
Q

Define supply

A

When prices increase producers yes will be more willing to supply more as they will make more profit.As prices fall suppliers will be willing to supply less as profits are less

58
Q

Economic issue

A

Governments stance on the issues

I

59
Q

Opposition

A

Shadow ministers

60
Q

Frontbenchers

A

Members allocated s ministerial portfolios

eg.)) Julie Bishop-minister for foreign affairs

61
Q

Backbenchers

A

Members of parliament with no special responsibility

62
Q

Cabinet

A

Meeting of senior minsters

63
Q

Define government

A

System of political rule and administration over a society

64
Q

Owners Equity

A

The owners investment in the business

65
Q

Cost benefit analysis

A

When deciding what choice with limited Involves making a list of the cost and benefits of each alternative proposal and comparing them to reach a conclusion

66
Q

Price mechanism

A

Markets determine the three basic economic questions through something called the price mechanism .The price mechanism is the system whereby prouder supply and consumer demand interact in the marketplace to set prices for goods and services

67
Q

What to produce? explain a bit

A

*show we watched
Factors
-If other consumers would find this food good?
-If no one likes in the lemon dessert the lemons will be allocated towards something consumers do like .
-So consumer sovereignty

68
Q

How to produce ?

A
  • Determine location
  • How it’s going to be produced
  • The ingredients
  • staff
  • Producer determines how it’s made , should still keep the consumers point view in mind
69
Q

For whom to produce ?

A

How much money will go towards his workers and how his profit will be split with business partners ( if their is any )
-How the economic benefits from production will be distributed

70
Q

Define economic resources

A

Are the inputs that is required by the producer to complete the production process.

71
Q

Resources allocation

A

The way in which land , labour , capital and enterprise are used to satisfy what to produce , how to produce and for whom To produce

72
Q

What does the government do?

A

All groups need some way of maintaining order between individuals to achieve common or shared needs.This where government comes in. The government does the following things to ensure that the community is working towards common aims
~ Security (defending from violent or invasion )
~Order (Protecting individuals in the community )
~Justice (means to resolve problem ; courts )
~Public words and essential services ( maintaining roads &hospitals

-social welfare ( sick and poor )

73
Q

Tariff

A

The tax on imported goods.Tariffs make imports more expensive , this discourages purchases

74
Q

Globalisation

A

Is the expansion of business operations into other countries through the removal of economic barriers and increases in global technology.This has freed up international trade

75
Q

Define trade

A

The exchange of goods and services between nations

76
Q

Who do we import from

A 
Japan 
Untied states 
China 
Thailand 
Singapore
77
Q

Who do we export from

A 
India 
USA
China 
Japan
Korea
78
Q

Good and services we import

A

Gold , medicines , petrol , motor vehicles

79
Q

Good and services we export

A

Coal , beef , gold , education

80
Q

Multinational companies & why these companies are growing

A

Organisations that operate in more than one country ;their head office is based in one country but they have branches in other countries

81
Q

Who is responsible for preparing the 2016-17 federal budget

A

Scott Morrison treasure prepares the budget

82
Q

Scott Morrison political party

A

Liberal party

83
Q

Two greatest sources of revenue for the federal government

A

Income tax receipts $278 billion

Sale taxes $62 billion

84
Q

Largest area of expenditure

A

Social security & welfare $158.61 billion

Health $ 71.41 billion

85
Q

Budget set to be in surplus or deficit

A

Deficit , government spending more than me have

86
Q

Expenditure

A

Money spend my gov . Spent on essential services required

87
Q

Revenue

A

The money earns my gov . Comes from Taxes

88
Q

Good &service

A
  • good - food tangible

* service - staff intangible

Commerce (1 decks)

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