economic environment

Question 1

barter

Answer 1

swapping or exchange of one good for another

Question 2

business cycle

Answer 2

cyclical fluctuations in economic activity

Question 3

consumption

Answer 3

purchasing of goods and services to satisfy needs and wants

Question 4

corporate social responsibility

Answer 4

businesses consider the interest of stakeholders, society and the environment when making decisions

Question 5

depression

Answer 5

serve contraction in economic activity

Question 6

economy

Answer 6

activities undertaken for the purpose of production, distribution and consumption of good and services

Question 7

exports

Answer 7

goods and services sold by local businesses to overseas consumers

Question 8

fiscal policy

Answer 8

use of federal governments budget to achieve economic objectives

Question 9

globalisation

Answer 9

process that sees people, goods, money and ideas moving around the world faster and cheaper than before.

Question 10

global sourcing

Answer 10

seeking out cheapest materials and supplies across national borders as if they were one large market.

Question 11

imports

Answer 11

goods and services purchased by local consumers from overseas businesses

Question 12

inflation

Answer 12

general increase in prices across the market causing money to lose value

Question 13

innovation

Answer 13

adding or significantly improving a product, service or process

Question 14

interdependance

Answer 14

joint dependance between participants in an economy (reliance of consumers to businesses to workers to government ect.)

Question 15

interest

Answer 15

price that must be paid in order to use someone else’s money

Question 16

investment

Answer 16

use of money to purchase equipment or premises for the establishment of a new business or expansion

Question 17

labour market

Answer 17

buying and selling of labour

Question 18

law of demand

Answer 18

states that the quantity of a service or good demanded varies inversely to price

Question 19

law of supply

Answer 19

states that the quantity of a service or good supplied varies directly with price

Question 20

market

Answer 20

exchange of goods, services or resources between buyers or sellers occurs

Question 21

market equilibrium

Answer 21

point at which the demand and supply curves intersect

Question 22

monetary policy

Answer 22

RBA using interest rates to achieve economic objectives

Question 23

price mechanism

Answer 23

interaction of forces of demand and supply that determines the price of goods and services

Question 24

production

Answer 24

creation of goods and services

Question 25

recession

Answer 25

mild contraction in economic activity

Question 26

saving

Answer 26

regularly putting aside money for the future

Question 27

transnational corporation

Answer 27

large business that has branches in more than one country