The Economic and Business Environment Flashcards
Law of Supply, Law of Demand, Corporate Social Responsibility, 5 Sector Economy, etc (32 cards)
Define a ‘Consumer’
An individual who purchases goods and services
Define the ‘Business Cycle’
The fluctuations in economic activity that occur over time.
Define ‘Supply’
Quantities of a commodity that producers are willing to sell for various prices
List the reasons for government intervention in the market
Prevention of environmental degradation and conservation of natural resources
Define an ‘Entrepreneur’
A person who is willing to take a risk and has the qualities required to turn an idea into a successful business.
How may producers give households income?
In the form of labour, land, capital or enterprise
Define ‘Environmental Degradation’ in a business context
Environmental degradation is the deterioration of the natural environment.
Write the full name of the ‘EPBC Act 1999’ and outline its role
The Environmental Protection and Biodiversity Conservation Act 1999 provides for the environment’s protection, conserves Australia’s biodiversity and promotes ecologically sustainable development.
Define the ‘Scarcity Principle’
The more difficult a commodity is to obtain, the more valuable it becomes (value increases).
Define ‘Corporate Social Responsibility’
An approach to business that promotes sustainable development economically, socially and environmentally.
List the 5 sectors of the economy
Household, firms, financial, government and overseas (HFFGO)
List the key factors of an ‘Economic Contraction’
The downswing of the business cycle towards a trough –> Decrease in output/production, increased unemployment, decreased wages and decrease in consumer spending
Define ‘Surplus’
When there is an excess of goods that could not be sold.
Define ‘Economics’
The study of the production of goods and service, its distribution within the community and how they are produced
List the 4 types of markets in the economy
Retail markets, labour markets, financial markets and stock markets
Describe the ‘Technology Investment Roadmap’
Made in 2020, it focuses on investing in low-emission technologies to encourage technological innovation and reduce overall emissions.
Define the ‘Law of Demand’
As price increases, the demand decreases. Price is inversely varied with quantity.
List the key factors of an ‘Economic Expansion’
The upswing of the business cycle towards the peak –> Increase in output/production, decreased unemployment, increased wages and increase in consumer spending
List some qualities of an ‘Entrepreneur’
Has great ideas and puts them into action, looks out for opportunities, is willing to take risks, creative, self-confident
List the 4 phases of the ‘Business Cycle’
Expansion, Peak, Contraction, Trough
List some examples of everyday technologies or technological activities
Advertising boards / billboards, megaphone systems, automated doors
Define ‘FOP’
Factors of production are
