Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

year 10 term 1 > Commerce > Flashcards

Commerce Flashcards

1
Q

what are the four basic economic questions?

A

1- What to produce?
2- How much to produce?
3- How to produce?
4- How to allocate production or output amongst people of an economy?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is Land

A

Resources that occur naturally

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is Labour

A

Physical and mental effort of people who are working

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is Capital

A

Goods to make other goods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is enterprise

A

ability to combine other resources to earn a profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is a centrally planned government?

A

Government commands how resources are used and allocated.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is an example of a centrally planned government?

A

North Korea

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What are some pros of a centrally planned government?

A

Greater equality, can respond to a crisis quickly

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What are some cons of a centrally planned government?

A

No incentive to take risks with ideas and products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is a mixed market?

A

What to produce, how to produce and who gets products are mainly answered by firms. The government only interferes with public goods to help merit goods.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is an example of a mixed market?

A

Australia

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What are some pros of a mixed market?

A

there is incentive to take risks and work hard, and there is protection for those who cannot work.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are some cons of a mixed market?

A

Tax paid to fund public goods and services.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is a pure market?

A

What/how to produce and who receives all determined by price in the market and an individual’s income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is an example of a pure market?

A

United states

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are some pros of a pure market?

A

More efficient of allocation of resources. Whoever wants it more, produces more, prices rise and businesses produce.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What are some cons of a pure market?

A

Inequality, labour and environment exploitation, needs for individuals are prioritised.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

what are the five sectors in the circular flow model?

A

Household, firms, government, financial, overseas.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What does S stand for in the circular flow model and what sector does it relate to, and is it a leakage or injection?

A

Savings, financial sector, leakage.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What does I stand for in the circular flow model and what sector does it relate to, and is it a leakage or injection?

A

Investment, financial sector, injection

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What does T stand for in the circular flow model and what sector does it relate to, and is it a leakage or injection?

A

Taxation, government sector, leakage.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What does G stand for in the circular flow model and what sector does it relate to, and is it a leakage or injection?

A

Government expenditure, government sector, injection.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What does M stand for in the circular flow model and what sector does it relate to, and is it a leakage or injection?

A

Imports, overseas sector, leakage.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What does X stand for in the circular flow model and what sector does it relate to, and is it a leakage or injection?

A

Exports, overseas sector, injection.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What is the role of the household sector?

A

Households exchange income for goods and services.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What is the role of the firms sector?

A

Firms exchange goods and services for income.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What is the role of the financial sector?

A

Create money through lending to businesses.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

What is the role of the government sector?

A

injects money into the circle through government spending and causes a leakage by taxation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What is the role of the overseas sector?

A

The overseas sector turns a closed economy into an open economy.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

what is the equilibrium equation?

A

S+T+M=I+G+X

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

what will happen when leakages are bigger then injections?

A

the economy will contract.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

what will happen when injections are bigger then leakages?

A

the economy will expand.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

what happens when governments tax more then they spend?

A

Budget deficit.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

what happens when governments spend more then they tax?

A

Budget surplus.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

what happens when imports exceed exports?

A

Trade deficit.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

what happens when exports exceed imports?

A

Trade surplus.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

what can cause a economic contraction?

A
  • decrease in production
  • increase in unemployment
  • decrease in wages
  • decrease in consumer spending
38
Q

what can cause an economic expansion?

A
  • increase in production
  • decrease in unemployment
  • increase in wages
  • increase in consumer spending
39
Q

What is economic growth?

A

when an economy increases the amount of output of goods and services over a period of time

40
Q

what is the measurement of the growth of the economy?

A

Rate of growth pf Australia’s GDP

41
Q

how do you calculate the GDP?

A

C+I+G+(X-M)

42
Q

how do you calculate the percentage of economic growth?

A

GDP2 – GDP1 x 100
GDP1 1

43
Q

What is Australia’s recent economic growth performance?

A

Fairly strong, 28 consecutive years of economic growth until 2020. Since 2020, we have have a sharp spike in economic growth, which led to inflation.

44
Q

Compare Australia’s economy to an emerging economy.

A

Similar economic growth trends throughout covid, however were amplified on a greater scale as the government had less to spend to support the economy. Overall, those economies have achieved higher economic growth then Australia as they are industrialising and expanding at a rapid rate.

45
Q

Compare Australia’s economy to an advanced economy?

A

Unlike other advanced economies, Australia did not experience a severe recession in 2008 because of expansionary government policy. However, we all went into recession during covid. Australia’s economic growth is currently positive.

46
Q

How does the economy stabilise the economy?

A

By implementing macroeconomic policies to generate economic stability.

47
Q

What is a budget expansionary stance?

A

Where government aims to increase economic growth

48
Q

What is a budget contractionary stance?

A

where the government aims to reduce economic growth

49
Q

What was Australia’s Fiscal Policy response to Covid?

A
  • Expansionary stance to boost economic growth during Covid.
  • Australia’s fiscal response was the largest deficit since WW2 and pushed us towards 1 trillion dollars in debt by 2023-24,
  • However the increased injections through a range of stimulus packages and policies such as Jobseeker and Jobkeeper helped us avoid a prolonged recession.
50
Q

What is a monetary expansionary stance?

A

involves a reduction in interest rates to increase economic activity in the economy.

51
Q

What is a monetary contractionary stance?

A

involves an increase in interest rates to decrease economic activity in the economy.

52
Q

What was Australia’s monetary policy response to covid?

A
  • RBA cut interest rates from 0.5% to 0.1% in 2020, which was a historic low greatly reducing borrowing costs and mortgage repayments.
    -They also provided easy access to funding to banks to allow them to keep lending to customers.
53
Q

What is unemployment?

A

An economy is not maximising its use of resources to satisfy needs and needs.

54
Q

Define the working age population

A

People aged 15 and over who are employed and unemployed.

55
Q

Define the labour force

A

People aged 15 and over who are employed and unemployed, and one must be undertaking paid work for 1 hour or more per week, and unemployed people must be seeking work.

56
Q

How do you calculate the unemployment rate?

A

Unemployment x100
Labour force

56
Q

How do you calculate the participation rate?

A

Labour Force x100
working age population

56
Q

What is cyclical unemployment?

A

Caused by a contraction in the economy
e.g. -> cyclical unemployment rose by 7.4% in 2020 due to Covid and the recession.

57
Q

What is structural unemployment?

A

cause by a mismatch of available and required skills, often cause by new technology or changes in the patterns of consumer demand.
e.g. -> car manufacturing closed in 2017, 40,000 people became unemployed.

58
Q

What is frictional unemployment?

A

people who are between jobs, changing jobs voluntarily or from ongoing creation/destruction of jobs.

58
Q

What is seasonal unemployment?

A

Seasonal patterns of high and low activity in some industries.
e.g. ->Christmas casuals, fruit pickers.

59
Q

What is hardcore unemployment?

A

Some members in society who have a disability.
e.g. -> health issues, behavioural issues.

60
Q

What is hidden unemployment?

A

People who wish to work but are discouraged from looking for work due to lack of job opportunities.

61
Q

What is long term unemployment?

A

People who have been unemployed for more than 52 weeks.

62
Q

What is inflation?

A

the sustained increase in the general level of consumer prices over time.

63
Q

How do you measure inflation?

A

The Consumer Price Index

64
Q

How is Australia’s recent inflation performance?

A
  • Since 1991 RBA has targeted inflation to 2-3%, which was mostly successful.
  • COVID lockdown, people couldn’t spend so there was 0% inflation (demand pull).
  • 2021-2023 there was high inflation, peaking at 7% due to supply issues (cost-push inflation) and more consumer spending (demand pull).
  • Late 2023-2024 inflation starting to fall to 4.2% in December 2023 due to high interest rates making people spend less and save more.
65
Q

What is demand-pull factors of inflation?

A

More goods and services are being demanded than the economy can supply.
e.g. -> masks/hand sanitizer’s during covid 19.

66
Q

What is cost-push factors of inflation?

A

An increase in the cost of raw materials and labour.
e.g. -> Ukraine Russia wars pushed up energy and food price

67
Q

What is inflationary expectations?

A

People bring up their consumption/demand higher wages to avoid/compensate for anticipated price increases, which pushes inflation anyways.
e.g. -> house prices go up, buy houses earlier.

68
Q

What are overseas factors of inflation?

A

Increased prices of imports or a depreciation of our currency against trading partners that make all imports seem expensive in AUD.
e.g. -> Ukraine Russia war, oil supply shortages.

69
Q

what are government policies of inflation?

A

An increase in tax on certain goods or services or a decision to borrow more money from the public to finance spending (increasing supply of money in the economy)
e.g. -> cigarettes and alcohol have extra tax

70
Q

What is excessive increase in supply inflation?

A

When the rate of increase outstrips the growth rate of the economy. There will be an increased volume of money chasing the same amount of goods.

71
Q

What is a market?

A

A situation whereby buyers and sellers of goods and services interact for the purposes of exchange

72
Q

what is the law of demand?

A

As prices rise, quantity demanded falls.

73
Q

What is the law of supply?

A

As prices rise, quantity supplied rises

74
Q

What is the market equilibrium?

A

Price at which quantity supplied = quantity demanded

75
Q

What does an expansion/contraction along the demand curve mean?

A

A change in price.

76
Q

What does an expansion/contraction along the supply curve mean?

A

A change in price.

77
Q

How is an increase demand illustrated?

A

A shift to the right.

78
Q

How is a decrease in demand illustrated?

A

A shift to the left.

79
Q

How is an increase in supply illustrated?

A

A shift to the right.

80
Q

How is a decrease is supply illustrated?

A

A shift to the left.

81
Q

What is a product market?

A

What does an expansion/contraction along the demand curve mean?

82
Q

What is a factor market?

A

the market for land, labour and capital needed for the production of goods and services.

83
Q

How does the government intervene for the government?

A

by imposing band, taxes or fines.
e.g. -> Ban of manufacture and importing of CFCs (aerosols) in 1995 which were commonly used in fridges.

84
Q

How does the government intervene for low prices for essentials.

A

by imposing a price celling or a maximum price on a market.
e.g. -> price cap on Taylor Swift tickets.

85
Q

How does the government intervene for industries survive in difficult times?

A

imposing a price floor or minimum price for the good or service.
e.g. -> 1880’s min price for wool to protect farmers. The overproduction of wool led to 4.6 million bales of wool worth 2.7 billion dollars.

86
Q

How does the government intervene for discouraging use of certain products?

A

imposing a tax on the production or sale of the good
e.g. -> cigarette tax, worth 65% of the sale price. Goes up 6% per year.

87
Q

How does the government intervene for ensuring socially benefited goods and services are being produced?

A

by providing grants or subsidies to assist producers or by the government producing the good or service.
e.g. -> Active kids vouchers and creative kids vouchers. $50 twice per year towards sports and the arts.

88
Q

How does the government intervene for producing goods and services that business has no incentive to produce?

A

by providing them themselves. If a business made these they couldn’t stop free riders from benefiting from the increased safety and security.
e.g. -> street lights, ADF.

year 10 term 1 (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions