Economic Essentials
This term describes the total value of all goods and services produced in a country in one year.
What is GDP?
These are the four elements of the marketing mix, all starting with the same letter.
What are the 4 Ps? (Product, Price, Place, Promotion)
This person takes on financial risk to start a new business in the hope of making a profit.
Who is an entrepreneur?
She is one of Australia's wealthiest people, made her fortune in iron ore mining, and shares a first name with a ballerina from the 1800s.
Who is Gina Rinehart?
If you borrow $1,000 at 5% simple interest per year for 2 years, this is the total interest you'll pay.
What is $100? (5% × $1,000 × 2 years)
When prices rise over time and your $10 note buys less than it used to, this is happening.
What is inflation?
In a SWOT analysis, the 'T' stands for this — something external that could harm the business.
What are Threats?
Money raised by selling shares of ownership in a company to the public for the first time is called this.
What is an IPO (Initial Public Offering)?
If your business sells $10,000 worth of product but spends $12,000 to make it, you have made this (not profit!).
What is a loss?
Australia's compulsory retirement savings system, where employers pay at least 11% of your wages into a fund
What is superannuation?
The value of the next best option you give up when making a choice is called this.
What is opportunity cost?
This letter in PESTLE analysis considers minimum wage laws, consumer rights, and workplace safety regulations.
What is L — Legal?
Canva, Atlassian and Afterpay are all examples of this type of business, originally from Australia.
What is a startup (or tech startup / unicorn company)?
You've opened a lemonade stand and your rival across the road halves their prices. In SWOT terms, this is an example of this.
What is a Threat?
This document is a plan showing your expected income and spending over a set period, helping you avoid overspending.
What is a budget?
This law states that as the price of a product rises, the quantity demanded will generally fall.
What is the law of demand?
A business owned by its members who share profits and decision-making is called this.
What is a cooperative?
This type of business model lets you use the brand and processes of an existing successful business for a fee.
What is a franchise?
This global e-commerce giant, founded in a garage in 1994, is now one of the world's most valuable companies.
What is Amazon?
When a bank charges you interest on both the original amount AND the interest already earned, it's called this.
What is compound interest?
A period of two or more consecutive quarters of negative economic growth is called this.
What is a recession?
This financial document shows a business's revenue, costs, and profit or loss over a period of time.
What is an income statement (or profit and loss statement)?
A brief document summarising a business idea, target market, revenue model, and goals is called this.
What is a business plan?
A business owner prices their product at $4.99, $19.99, and $99.99 — always just under a round number. What pricing strategy are they using?
What is charm pricing (or psychological pricing)?
This is the term for a sustained fall in the general level of prices — the opposite of inflation.
What is deflation?