The Economic & Business Environment 1
What is a market?
Any situation where buyers and sellers come together to exchange goods and services.
What is the difference between a need and a want?
A need is necessary for living.
A want improves comfort or enjoyment but is not essential.
Part of the business cycle where spending increases and businesses expand is known as what?
A Boom
a) What number does an Australian worker generally need for taxation purposes?
b) Why do governments collect tax?
a) Tax File Number (TFN).
b) Tax is collected to fund public services and government programs.
What part of the business cycle is caused by a lack of spending?
A recession
A supermarket lowers its prices because a new supermarket opens nearby.
What business factor has influenced this decision?
Competition
A severe contraction in the level of economic activity resulting in many business failures, high and sustained levels of unemployment and sometimes falling prices is known as what?
Depression
What is the difference between negotiation and mediation?
Negotiation involves parties resolving the issue themselves.
Mediation involves an independent third party helping them reach agreement.
As prices for a good or service increase, the quantity that businesses are willing to supply will increase. If the price decreases, the supply of that good or service will decrease. This known as what?
Law of Supply
A café earns $8,000 in sales but has $6,500 in expenses. What is its profit?
$1,500
As prices increase, less people want a particular product. If the price decreases, more people want the product. This is known as what?
Demand
Name the THREE types of employment contracts.
BONUS (300 EACH): Outline each type of employment contracts.
Modern awards: Refer to the legally enforceable minimum terms and conditions that apply to a business/industry.
Enterprise agreements: A negotiated agreement about pay and conditions made at a workplace/enterprise between an employer and a group of employees OR union.
Common law contracts (or individual contracts): Cover employees who are not under any award or enterprise agreements.
The point at which the demand and supply curve intersect is known as what?
The equilibrium
A worker receives money in return for completing work for an employer. What is this payment generally called?
Remuneration (pay)
The process by which the world is becoming increasingly interconnected as a result of increased trade and cultural exchange
Globalisation
A company introduces automation that completes some repetitive tasks previously performed by employees.
Identify ONE opportunity and ONE challenge this could create for workers.
Opportunity: new skilled roles/increased productivity.
Challenge: job loss/retraining/change in required skills.