Business and economics Flashcards
(23 cards)
Economic activity at its highest
peak
Lowest period for production
trough
businesses produce more and hire more employees
expansion
production is cut down
contraction
inflation is increasing
expansion
unemployment at its highest
trough
How inflation is measured
Inflation is measured by the percentage increase or decrease.
State government responsibilities
-Manages public hospitals
-responsible for hospitals
-ambulances and emergency services
difference between minor and major consumer decisions
A minor consumer decision is a decision that involves low cost, low risk and low involvement from the customer. Examples of minor decisions are:
-buying a pack of gum
-ordering a pizza for dinner
-choosing a shampoo from a range of brands
Name three sections that create a business plan
-Financial plan
-operations plan
-marketing plan
-management plan
Frictional
Those seeking first employment or switching jobs
-Students moving from education into the workforce.
Structural
Those seeking employment due to their job becoming outdated/obsolete due to a skillset that is no longer useful.
-A cashier at a supermarket losing their job due to self-serve machines.
Cyclical
Those unemployed as a result of a poor economy.
Seasonal
Those unemployed due to businesses slowing down / shutting down due to seasonal changes.
-A strawberry picker no longer provided work during autumn and winter.
comprehensive car insurance
Covers both third party and damage to your own car regardless of who’s fault it is
Third-party car insurance
The minimum level insurance, does not cover your own car or injuries, covers damage you caused to other people’s property
Internal factors
These factors relate to the consumers lifestyle and way of thinking likes dislikes
external factors
Are usually beyond the consumers control for e.g. price marketing strategies
Price elasticity
Needs like eggs and petrol donts rise in price as the demand stays the same as people need them. In certain seasons people do not need strawberries making it price elastic as the price varies.
fiscal policy
The fiscal policy is used to adjust the economy to a desired level where prices are steady.
monetary policy
encourages strong and sustainable growth in an economy. It ais to control inflation, preserve the value of money, manage interest rates and the total supply of money circulating in the economy.
-Impacts the change of the cash rate, which influences interest rates on unsecured loans.
Local Government
-environmental services; sanitisation, clean water
-dispose human waste
-community based healthcare services
Federal government responsibilities
funds healthcare systems Medicare, PBS
