Opportunity Cost
The economic term for the next‑best alternative given up whenever a choice is made.
As price increases, quantity supplied usually what?
Increase
What is competitive advantage?
A business trait that lets a firm outperform rivals—by being cheaper, faster, or better.
What is innovation?
The improvement of a new idea, method, or product in business is called innovation.
Who is usually the target of a scam?
Vulnerable people.
You choose to spend $20 on lunch instead of saving it. What is the opportunity cost?
The savings or anything else that could’ve been done with the $20.
Give one factor that can decrease supply of strawberries.
bad weather / crop disease / labour shortage
List one way a business can gain a competitive advantage.
By offering lower prices / better quality / faster service / better location.
An example of product innovation
Adding face‑recognition unlock to smartphones is an example of this kind of innovation.
Under Australian Consumer Law, state the remedies a customer can demand if a product has a major fault.
A refund, replacement, or compensation for loss
Give an example of a non-financial opportunity cost someone might face.
Missing time with friends or sleep to study for an exam.
What is the Law of Demand?
The law that states: as price falls, quantity demanded rises—all else equal.
It encourages repeat purchases and reduces customer switching. What is it?
Brand loyalty gives a business long-term competitive advantage.
What is process innovation?
The implementation of new or significantly improved production or delivery methods.
Describe an example of a phishing scam.
E.g., A suspicious email often with a 'dodgy' link which will corrupt your device and/or steal information.
A business owner uses their factory to produce clothing instead of electronics. What is the opportunity cost?
The profit or output the business could have earned from producing electronics.
What is it called when quantity demanded and quantity supplied are the same?
Market equilibrium
A business uses local ingredients and advertises this in its branding. How could this give it a competitive advantage?
It may appeal to environmentally or ethically conscious customers.
What is an example of marketing innovation?
Using TikTok challenges to advertise a soft‑drink brand illustrates marketing innovation.
Rank these options from lowest to highest risk: government bond, term deposit, shares
term deposit (lowest), government bond, shares (highest)
Explain why opportunity cost is an important concept when governments make spending decisions.
It helps them consider what benefits are lost by choosing one project over another.
Explain what direction the demand curve shifts for petrol if electric cars become cheaper and more popular.
It shifts left (demand decreases)
How can technology give a business a competitive advantage?
It can improve efficiency, offer new services, reduce costs, or enhance customer experience.
What is culture innovation in a business?
Google’s ‘20 percent time’ policy (staff work on passion projects) is aimed at fostering innovation in this company‑wide area.
How do simple and compound interest differ?
Simple interest is calculated on the principal, or original, amount of a loan. Compound interest is calculated on the principal amount and the accumulated interest of previous periods