Test 4 - Economics and Ethics Flashcards
What is inflation
A sustained rise in the cost of goods and services
What organisation manages the cpi
The RBA
What is the inflaiton rate?
The percentage rate change in CPI from one quarter to the next
What occurs in times on greater inflaiton?
More time is spent searching for lower prices
Market behaivor changes
Less goods and services will be imported
Profit margins get squeezed profits may decrease Lower spending on luxury items
Debt may increase as people may take out more loans
What is the basic economic cycle process?
Recession trough recovery
What are some things that occur with a better economy?
More disposable income means increased demand for goods and services.
The demand > supply
Managgers and operators will increase prices due to this demand. Customer have money now, proces can be increase, they have the ability to pay more
What occurs when IR is lower
Pushes economy faster:
- Little incentive to save
- Less money made on savings
- Puts money into economy
- Increased spending
What occurs when IR is higher
Slows the economy
- Profitable to put money into bank
- Takes money out of economy
- Less spending
What occurs during rising unemployment rates?
- Lower consumer Spending
- Lower demand for goods and services
- Spending is focused on essential items, not luxury goods
- Over-supply of labour may result in lower pay levels
- Specialised skills + experience are lost when people are sacked
- Staff may be motivated by fear of losing their job
What occurs during falling unemployment rates?
- Consumers can spend more
- Greater demand for goods and services
- Consumers may spend more on luxury items
- Shortages in labour puts upward pressure on pay
- Higher wages increase business costs
- Workers are more motivated if business is doing well
What is unskilled and skilled labour?
Skilled: Labour that requires specialised skills
Unskilled: Jobs roles can be filled by people without special qualifications or skills
Summarize the supply of labour
If there’s a shortage of people with specialised skills, demand is high for skilled labour and supply is low
- Offers of higher wages may attract special skills
What are green gifts?
Branded, reusable shopping bags, water bottles and stationery made our of recycled goods shows a commitment to the environment
Donation to good causes
The business can promote their goodwill . Being associated with a good cause builds an image of the business that cares about the community
Exceed expectations in service
WOM promotion will grow out of treating customers better than competitors and providing exceptional service, eg deliver products in time, adding free service and support
Ethical considerations
A positive public image will develop from treating sutomers and suppliers honestly, following througgh on promises and delivering guarantees and warranties
COrporate sponsorship
A business relationship where two parties make an economic exchange. Its not a donation. Public image is created by building associations with otehr corporations.
This sponorship canbe a combination of payments, providing support by providing free office space, food, clothing or staff. These provisions will mena the sponsor recieves benefits related to
- Vislibility- Logos and slogans
- Positioning-
- Publicity- Sponsors are menioned and thanked
- Market Research- Company will decide what to sponsor based on demographics of the people involved
What do businesses need to do about climate change?
Businesses need to actively (and publicly) be trying to reduce their carbon footprint, otherwise it will negatively affect the public image of their business
What is pollution
he presence on, or introduction into, the environment of a subsance which has harmful or poisonous effects
What is pollution control?
An environmental management process that manages what happens with pollutants that a business generates
(Disadvantage: Reactionary)
What is Pollution prevention?
Strategies to prevent pollution from occuring in the irst place (Advantage: Proactive)
What is energy?, ALso what is renewable energy?
Power derived from the utilisation of physical or chemical resources, especially to provide light and het or to work machines
Renewable energy: Energy from a source that is not depleated when used, such as wind or solar power
What responsibilty do businesses ahve regarding this?
Reduce the amount of energy used on workplace:
- Flourescent lighting
- Insulation
- Swiching off lighting and equipment when not in use
- Replace existing equipment with new, more efficient
- Recylce and re-use materials
Explore ways of using renewale energy sources
What is animal testing
The use of animals in research and development projects, especially for purposes of determining the safety of substances such as food, make-up or drugs
