Economics Test Revision Flashcards

Flashcards based on Economics Test Revision Notes to help review essential skills, economic concepts, scam protection, and business strategies.

What is resilience?

The ability of individuals, businesses, or economies to recover quickly from difficulties, setbacks, or shocks.

Why is resilience important economically?

Mitigates economic shocks, ensures business continuity, and facilitates adaptation & growth.

What is innovation?

The creation and implementation of new ideas, products, processes, or business models that create value.

Why is innovation important economically?

Drives economic growth, increases productivity & efficiency, creates competitive advantage, and solves societal problems.

What is adaptability/flexibility?

The capacity to adjust to new conditions, changing circumstances, or unforeseen challenges.

Why is adaptability/flexibility important economically?

Navigating dynamic markets, maximizing resource allocation, and promoting survival & growth.

What is problem-solving?

The process of identifying problems, analyzing potential causes, and developing and implementing effective solutions.

Why is problem-solving important economically?

Overcoming barriers to productivity, identifying new opportunities, and driving continuous improvement.

What is critical thinking?

The objective analysis and evaluation of information in order to form a judgment.

Why is critical thinking important economically?

Informed decision-making, identifying opportunities & risks, and avoiding fallacies & biases.

What is collaboration/teamwork?

Working jointly with others to achieve a common goal or shared outcome.

Why is collaboration/teamwork important economically?

Increased productivity & efficiency, innovation & creativity, and specialization & division of labor.

What is entrepreneurship?

The activity of setting up a business or businesses, taking on financial risks in the hope of profit.

Why is entrepreneurship important economically?

Job creation, innovation & economic dynamism, resource allocation, and wealth creation.

What is the economic definition of 'work'?

Activities undertaken to produce goods or services, usually in exchange for payment or for the purpose of earning a living.

What is the key question to justify 'work' vs. 'non-work' activity?

The primary purpose of the activity is to produce something of economic value (goods/services) for which someone is paid or earns income, or could be paid.

What is phishing?

A scam where someone pretends to be a reliable source in an online message to trick you into giving away private information or downloading harmful software.

What are the strategies for creating strong passwords?

Use long, complex passwords (12+ characters) with a mix of uppercase/lowercase letters, numbers, and symbols; use a password manager; never reuse passwords across accounts.

What is multi-factor authentication (MFA) and how should it be used?

Adds an extra layer of security requiring more than just a password (e.g., a code to your phone, fingerprint scan); enable MFA on all accounts that offer it.

What is a need?

Something essential for survival or basic well-being.

What is a want?

Something that is desired but not essential for survival.

What are the social benefits of entrepreneurship?

Create products/services addressing societal needs, community development, and increased consumer choice.

What are the economic benefits of entrepreneurship?

Job creation, innovation, wealth creation, increased competition, and export opportunities.

What is Atlassian?

Founded by Mike Cannon-Brookes and Scott Farquhar in Sydney, providing software development and collaboration tools.

What is a target market?

A specific group of consumers or businesses that a company aims to reach with its products or services.

What is competitive advantage?

A factor that allows a company to produce goods or services better or more cheaply than its rivals.

How does innovation provide a competitive advantage?

Continuously developing new or significantly improved products, services, or processes.

How does cost leadership/pricing provide a competitive advantage?

Focusing on being the lowest-cost producer in the industry.

How does quality/differentiation provide a competitive advantage?

Providing superior quality, unique features, or excellent customer service to set a product apart.

What is a cash budget?

A financial plan estimating all cash inflows (receipts) and cash outflows (payments) over a specific period, determining the projected cash balance.

What are receipts (cash inflows)?

Money coming in (e.g., wages, sales, interest earned).

What are payments (cash outflows)?

Money going out (e.g., rent, utilities, groceries, loan repayments).

How do you analyze whether a financial goal is achieved?

Compare projected closing balances from your cash budget against your financial goal.

What are some changes to improve savings?

Seek additional income, sell unused items, identify discretionary spending, set and stick to budget limits, negotiate bills, reduce impulsive buying, and 'pay yourself first'.

What are the advantages of current AI use in Australian businesses?

Automates repetitive tasks, enhances decision-making, reduces costs, improves customer experience, enables innovation, and provides flexibility.

What are the disadvantages of current AI use in Australian businesses?

Job displacement/reskilling, high implementation costs, ethical concerns & bias, over-reliance & lack of human oversight, data security risks, and potential overwork.

What are the future uses of AI in Australian Businesses?

Hyper-personalization, advanced analytics & prediction, autonomous systems, generative AI, AI in healthcare, and sustainable practices.

What are some current AI uses by the Commonwealth Bank of Australia (CBA)?

CBA uses AI for 'Smart Alerts', 'Benefits Finder', and advanced fraud detection.