short answer 1

Question 1

explain the differences between a minor and major consumer decision

Answer 1

minor decision - low stake and straightforward purchases

eg. gum, snack

major decision - has significant impact on consumer’s finance and life style

eg. buying a car

Question 2

mark buys a new iphone on the weekend. identify and explain two eternal factors that may have influenced on the purchase

Answer 2

The price of the iphone as mark may need to consider his fincancial status whether that’s receiving a loan, after pay or paying full amount upfront. along with if the iphone is worth the value of money and he can always opt for a older version or second hand.

Question 3

GDP has traditionally been used as a measure of living standards, but it has limitations. Outline three limitations of GDP as a measure of living standards.

Answer 3

1. doesn’t consider distribution of income
2. doesn’t capture non - market activities
3. doesn’t consider environmental and social cost

Question 4

what is third party insurance

Answer 4

provides coverage for damage on other people’s cars but if at fault doesn’t cover damages on yours

Question 5

what is comprehensive insurance

Answer 5

covers other parties and yours

Question 6

explain how inflation is measured

Answer 6

measured by CPI (Consumer Price Index) which is calculating the average price increase of a “basket” of consumer’s items used by Australian households, eg food, clothing, health, transport

Question 7

outline two factors that can influence the distribution of income and wealth in australia

Answer 7

education: people with higher levels of education or more specialised skills tend to earn higher income

inheritance + family wealth: inheriting money, property or others assets from family can give those a head start in building wealth

Question 8

Describe how the Just-in-Time inventory management system works. Also, outline two benefits and one potential problem with the Just-in-Time inventory management system

Answer 8

Description of JIT: designed to minimise inventory and improve efficiency

BENEFITS:
1. low inventory cost (save money on storage, insurance and risk of product being out of date)

2. increase efficiency - JIT allows companies to respond changes in customer demand and adjust their production which reduces waste

PROTENIAL PROBLEM:
1. delays or supplier problems