5 sector flow
What is a injection?
Money or spending that enters the circular flow of income, boosting economic activity
What is the Business cycle?
A business cycle is a cycle of fluctuations in the Gross Domestic Product (GDP) around its long-term natural growth rate.
What is a Market?
A market exists in any situation where buyers and sellers come together to exchange goods and services.
What is demand?
Demand is the quantity of a product that consumers are willing to purchase at a particular price at a given point in time.
What are some types of businesses?
Online Businesses, On-Demand Businesses, Global Businesses, Offshore Businesses, Government Businesses, Not-for Profit Businesses.
What is a leakage?
Money withdrawn from the circular flow of income, reducing spending in the domestic economy
What are the phases of the business cycle?
Expansion (growth, low unemployment), Peak (highest point of activity), Contraction/Recession (decline, rising unemployment), and Trough (lowest point, recovery begins)
What are some types of Markets?
retail markets, labour markets, financial markets, stock markets.
What is Supply?
Supply refers to the quantity of a good or service that businesses are willing and able to offer for sale at a given price, at a given point in time.
What is the difference between small and large buisness?
Small businesses being agile, personal, and resource-constrained, while Large businesses offer stability, extensive perks, and complex hierarchies but can suffer from bureaucracy and slower decisions
What 5 sectors comprise the Australian economy?
Household Sector, Firms Sector, Financial Sector, Government Sector, and Overseas Sector
What is a Boom?
A boom is a period of rapid economic expansion that involves low unemployment and rising prices.
What is being bought and sold on labour markets?
On labor markets, people sell their ability to work (labor/skills), and businesses buy it to produce goods and services, with wages acting as the price.
What is Market Equilibrium?
Market equilibrium is the state where the quantity of a good or service that producers supply is equal to the quantity that consumers demand.
What do Government Businesses do?
Governments create businesses (State-Owned Corporations/Enterprises) to provide essential services (utilities, transport), ensure access in remote areas.
What is the difference between Imports and Exports?
Imports are goods and services brought into a country, while Exports are goods and services sent out to another country.
What is the difference between a boom and a recession?
a boom is the peak of growth, while a recession is the trough, or downturn, in the natural ebb and flow of economic cycles.
Outline how retail markets have changed over the past 15 years?
The past 15 years has seen a huge increase in online shopping.
Define the law of demand?
decreases. If the price decreases, the demand for that good or service increases.
Define a Not-For-Profit business?
A Not-For-Profit (NFP) is an organisation that operates for a specific purpose (like community welfare, arts, or recreation) rather than for the financial gain or profit of its owners or members
What is consumption?
Consumption is the final use of goods and services by individuals or households to satisfy their needs and wants
what is inflation?
The rate at which the general price level of goods and services rises, causing money to lose purchasing power, meaning your currency buys less than it used to.
What is being bought and sold on financial markets?
Financial markets facilitate the buying and selling of a wide range of assets, including stocks, bonds, commodities, currencies, and derivatives.
Define the law of supply?
If the price decreases, the supply of that good or service will decrease.
When did online business get popular?
Particularly with the rise of smartphones and a massive acceleration during the COVID-19 pandemic in 2020.