exam revision Flashcards
Relative scarcity
the comparison of the availability of resources between two or more entities
Whats a want
have a desire to possess or do (something); wish for.
whats a need
require (something) because it is essential or very important rather than just desirable.
whats surplus budget
when tax revenue is greater than government spending.
what are positives of surplus budget
Running a budget surplus means there is additional money to spend at the end of the accounting period, which is generally a fiscal year. This extra cash can be used to pay off debts or be reinvested in other projects.
what are negatives of surplus budget
The main risks of running a budget surplus are the decline in investment revenue and higher taxation. When companies or governments run a surplus, they’re not spending or investing as much.
whats supply
the total amount of a specified product or service that is available to customers
whats demand
Demand is an economic concept that relates to a consumer’s desire to purchase goods and services and willingness to pay a specific price for them
whats deficit budget
A budget deficit occurs when government expenses exceed revenue
what are posatives of deficit budget
a government is able to spread distortionary taxes over time. Also, a deficit allows a government to allocate tax obligations across generations of citizens who all benefit from some form of government spending.
what are negatives of deficit budget
Deficits add to the national debt or federal government debt. If government debt grows faster than gross domestic product (GDP), the debt-to-GDP ratio may balloon, possibly indicating a destabilizing economy.
whats material living standard
Income per person. consumption or purchase of goods and services.
whats non material living standard
Intangible and refer to the qualitative aspects of our lives, enjoyment of nature and feeling safe in the community
what are imports
Goods or services that are brought into the country from overseas
what are exports
Goods or services that we send out to other countries
what is trade liberalisation
The lowering or removal of trade barriers and the facilitation of greater cross border flows
what is a Tariff’s
a tax or duty to be paid on a particular class of imports or exports.
what Quota’s
Quotas are import limits that prevent more than a set amount of a specific good from being imported into a country.
Whats C.P.I
the consumer price index is the price of a weighted average market basket of consumer goods and services purchased by households.
Whats Inflation
the measurable amount prices rise over a period of time, for good and services in an economy.
what is Customer/Consumer confidence
It is when someone is willing to use their leftover income confidently knowing that they will have enough to meet their needs in the future.
an economic indicator that measures the degree of optimism that consumers have regarding their overall financial situation and the overall state of a countries economy.
what is the Macro economic policy
aims to provide a stable economic environment that is conducive to fostering strong and sustainable economic growth.
what is the micro economic policy
Microeconomic policies improve the efficiency of product markets, factor markets and industries. This then improves the productivity of the economy through increases to aggregate supply.
What are the responsibility’s of the Federal Government
foreign affairs, social security, industrial relations, trade, immigration, currency, defense.
What are ethe responsibility’s of the State Government
schools, hospitals, conservation and environment, roads, railways and public transport, public works, agriculture and fishing, industrial relations, community services, sport and recreation, consumer affairs, police, prisons and emergency services.
What are ethe responsibility’s of the Local Government
parks and recreation services, police and fire departments, housing services, emergency medical services
Outline why interest rate rises affect consumer confidence?
2 Marks
When interest rates are higher consumers would rather save than spend as prices would be higher so they could wait until interest rates go down and then they might decide to spend.
Outline why would a government choose to support a domestic industry? How can they attempt to do this? 4 Marks
To pump money back into the Australian economy and provide jobs for people living locally
Describe reasons or economic factors a government must first consider before supporting/bailing out an industry/business? 3 Marks
Because if they bail on an industry that provides lots of employment possibilities it could be really bad for the economy
Define material and non material living standard. Explain what a wellbeing budget may include. 6 Marks
Material living standards are when a consumer purchases or consumers goods and services.
non material living standards are when intangibles are referred to the qualitative aspects f our lives like the enjoyment of nature or feeling safe in the community.
Define relative scarcity. Explain why this is important in Economics. 6 Marks
relative scarcity is when the availability of resources between two or more entities. this is important because there are limited resources and the are finite resources, so they will eventually run out .
What are all the business types?
sole trader
partnership
private limited company
private company
public company
public listed company
social enterprise
government business enterprise
what is a sole trader
a business who runs and owns the business by one person.
what is a partnership
a partnership which is controlled by 2-20 people own the business
Whats a social enterprise
A social enterprise is an organization that applies commercial strategies to maximize improvements in financial, social and environmental well-being
Whats a private company
a company whose shares may not be offered to the public for sale
whats a government business enterprise
A business owned and operated by the government
what’s competitive advantage
Competitive advantage is when a busniness has an edge over the competition/competitors
Whats innovation
innovation is when a business create something new or when they develop and update products from the past to make them better.
what’s globalisation
Globalisation is the expansion of business operations into other countries as a result of the removal of the economic barriers and the increase in the global technology
what are stakeholders
someone who has a vested interest in the operation of a company or business
what are examples of stakeholders
Customers
Employees
suppliers
consumers
community
what is market segmentation
Market segmentation is a marketing strategy that uses well-defined criteria to divide a brand’s total addressable market share into smaller groups
what is corporate social responsibility (CSR)
describes how a company manages its industry and takes responsibility for its social impact
What is the triple bottom line
an accounting framework that incorporates three dimensions of performance: social, environmental and financial
what are examples of CSR
Reducing carbon footprints.
Improving labor policies.
Participating in fairtrade.
Diversity, equity and inclusion.
Charitable global giving.
what are examples of triple bottom line
Unilever – aims to reuse 100% of plastic packaging, by 2025.
Unilever – aims to reuse 100% of plastic packaging, by 2025. …
What are the management styles
Autocratic
Persuasive
Consultive
participative
Laizze-fair
What is an autocratic management style
When one person makes all the decisions and doesnt take other opinions
what is a persuasive management style
puts decision-making totally in the hands of managers but encourages managers to share the logic and rationale behind their decisions. This helps team members feel more connected to the decision-making process
what is a consultive management style
While the leader has the authority to make the final decision, they prefer to listen to every team member’s viewpoint before acting.
what’s a participative management style
Managers seek employee input before making decisions or implementing changes that can impact the rest of the company
What is a Laissez-fair management style
Laissez-faire leaders allow their followers to have the autonomy to make their own decisions and manage their own desks.
What are the Management skills
contingency, delegation, interpersonal skills, decision making and problem solving
Identify at least three stakeholders of a business. Define and analyse how Corporate Social Responsibility can effect these stakeholders and justify your response using two examples. 6 Marks
Explain how conflicts of interest may occur when companies develop their Corporate Social Responsibility Policy. 3 Mark
Compare (Similarities and differences) 2 types of business ownership? 2 Marks
Company - A private company is the most common type of company structure in Australia, and usually has between two and 50 private shareholders
Partnership - owned by 2-20 people
They both have low startup costs
Similarities - they are both run by multiple people rather than an individual.
Differences - in companies the Shareholders own the company but the directors operate it. in a partnership the shareholders do both. they own and run it.
Define competitive advantage and explain why this is important for business? 2 Marks
Your competitive advantage is when your business has an edge over the competition and when your business is set apart from the rest.
This is important because they can out perform the competition, therefore making more profit.
Outline the different management styles.
Autocratic
persuasive
lazize-fair
consultive
participative
Describe the relationship between one management style and management skills?
Management styles are contingency, delegation, interpersonal skills, decision making and problem solving. But Management Skills are Autocratic, Persuasive , Consultive , participative , Laizze-fair.
The type of management style that a manager selects will determine the range and degree of skills they use, and the way in which they use those skills.
E.g. participative manager would use communication and decision-making skills. An autocratic manager would also use the same skills, but use them very differently
What is credit
the ability to obtain goods and services before payment, based on the fact that the payment will be made in the future
what are the types of credit?
Credit Card, Pay loan
What is debit
a sum of money that is owed or due
what is E commerce
What is Good debt
Good debt is debt that makes you money and improves your overall financial picture.
what is bad debt
Bad debt loses you money or something that you owe. Like Credit card debt, car loans, etc.
What are Buy now pay later schemes?
Examples?
Buy now, pay later is a type of short-term financing. Consumers can make purchases and pay for them over time after an up-front payment.
What are the advantages to Buy now pay later schemes?
You don’t have to pay the full amount on the spot. you can pay small amounts over a period of time to pay it off slowly
what are the negatives to Buy now pay later schemes?
high late payment fees
what is budgeting?
a financial plan that will help you make smart financial choices today while preparing for tomorrow
what is income?
money received, especially on a regular basis, for work or through investments.
what are expenses?
Outline three forms of credit
3 Marks
Credit Card,
Define corporate social responsibility. (1 Mark) Outline what is meant in business by the “triple bottom line. (2 Marks) How can McDonalds or a large business of your choice be considered a corporate socially responsible business. (2 Marks) Explain how this benefits both the community and the business. (2 Marks)
250-300 words
CSR describes how a company manages its industry and takes responsibility for its social impact and the triple bottom line is a accounting framework that incorporates three dimensions of performance: social, environmental and financial. McDonalds could be considered a corporate social responsible business because they are socially influential. this being because of the public knowing McDonalds because of their well know fast food or the ads we see on TV everyday. This can benefit both the community and McDonald’s. It can benefit the community by being more accessible and having enough supply to provide for the amount for demand on the products at McDonalds. For McDonalds it can be beneficial as the consumers consistently purchase the goods meaning they make profit so they can continue working, pay staff as well as keep the shops open whilst providing enough for the company.
Outline BNPL schemes (2 Marks) and discuss why it is considered a contentious product. (2 marks) In your answer discuss two advantages (2 Marks) and two disadvantages (2 Marks) of BNPL products. (8 Marks)
250- 300 words
The buy now pay later scheme is where you pay in sections/ you pay a certain amount each month for a period of time to pay the product off. This can be contagious because BNPL payments can be easier to manage than credit card repayments. two positives of the BNPL are that you don’t have to pay in full, you can pay in small increments at a time and you don’t have to pay any interest for BNPL. But two disadvantages are
