Markets & Consumers
What is a producer?
someone who makes or supplies goods or services.
What is one legal responsibility businesses must follow?
One legal responsibility is to provide safe products that meet standards (e.g., food safety).
What is income?
Income is the money a person or business receives (e.g., wages or sales).
What is a product?
A product is a good or service that is made to meet consumer needs.
What does a cost-benefit analysis compare?
It compares the advantages (benefits) and disadvantages (costs) of a decision.
What is a consumer’s role in the economy?
A consumer buys or uses goods and services, helping to create demand.
Name one consumer right and why it matters.
Right to be informed – consumers should have accurate details about the product (e.g., ingredients or materials).
What is profit?
Profit = Total Revenue – Total Expenses. It’s what’s left after all costs are paid.
What makes a business competitive?
Being unique, offering better service, or having lower prices helps a business stand out.
Why might a business consider customer feedback before launching something new?
Feedback helps a business understand what customers want, reducing the risk of failure.
What is a market? Give an example.
A market is any place (physical or online) where buyers and sellers interact. Example: a local farmers’ market or an online clothing store.
What is the difference between legal and ethical responsibilities?
Legal responsibilities are required by law (e.g., paying taxes). Ethical responsibilities are based on doing what’s right (e.g., sustainability).
What is a financial statement used for?
A financial statement shows how much money a business makes, spends, and saves — it helps with budgeting and planning.
Name two traits of a successful business manager.
Good business managers are usually organised, creative, good communicators, and decision-makers.
How can a business evaluate if a new idea is financially worthwhile?
They can calculate expected costs and income, and research how similar ideas have worked for others.
What does “responding to consumer preferences” mean?
It means adapting products or services based on what customers want — e.g., adding vegan options if customers ask for them.
Why is it important for businesses to follow Australian Consumer Law?
It protects consumers from unsafe products or false advertising and ensures fair treatment in the marketplace.
What does “tracking expenses” mean and why is it important?
It means watching what a business spends money on and making sure they stay within budget.
How does marketing help a business succeed?
Marketing attracts customers by promoting products through ads, social media, or special deals.
List two costs and two benefits a business might consider when making a decision.
Costs: buying equipment, hiring staff.
Benefits: reaching more customers, making more sales.
What are the four key elements of the producer-consumer exchange?
The four elements are: product, price, exchange/payment, and delivery of value/service.
Explain how a business can balance profit with social responsibility.
By using sustainable practices, paying fair wages, and being transparent, a business can earn profit while acting ethically.
Why is it important for businesses to pay taxes?
Taxes fund public services like schools and hospitals. It’s a legal obligation that supports the community.
Explain how branding can influence customer loyalty.
Branding builds trust and recognition — loyal customers return because they like the style or message.
Describe the steps a business takes to make an informed financial decision.
Identify the goal
Research options
List costs and benefits
Choose the best option
Evaluate the outcome