Year 10 Economics and Business Exam Vocabulary

A complete set of vocabulary flashcards based on Year 10 Economics and Business exam review notes, covering economic terms, policies, productivity metrics, command words, and income distribution figures.

GDP

The total market value of all goods and services produced within a country in a given time frame

Inflation

An increase in the general level of prices paid for goods and services over a certain period of time

Unemployment

People in the labour force who are actively seeking employment but cannot find work

Income

Money or value received through work, investments, business activities, or other financial sources over a specific period

Wealth

The total value of all physical and intangible assets a person or society owns, minus any debts

Quintile

Any of five equal groups or values that divide a statistical set or population into fifths

Lorenz Curve

A graphical representation of income or wealth distribution and inequality, which was developed by economist Max Lorenz

Gini Coefficient

A statistical measure used to gauge economic inequality, most commonly representing how income or wealth is distributed within a nation or social group

Macroeconomic Policy

The strategies and actions by government to manage the overall economy; these policies aim to achieve key economic objectives such as price stability (inflation), full employment and sustainable economic growth

Microeconomic Policy

Economic policy that affects a particular company, industry or market; it often focuses on promoting competition, productivity and efficiency

Federal Budget

A national government's official yearly financial plan detailing projected revenues (income) and expenditures (spending) for the upcoming fiscal year

Fiscal Policy

The government’s management of the federal budget, adjusting expenditure and tax rates to influence the performance of the economy

Monetary Policy

Actions by the Reserve Bank of Australia that affect the money supply and interest rates

Trade Liberalisation

Removing or reducing restrictions or barriers to trade between nations

Tariffs

Taxes on imported goods and services

Subsidies

Payments by the government or a public body to assist a producer or industry to keep the price of the goods or services low or competitive.

Quotas

A fixed, official limit or a proportional share of something

Deregulation

The reduction or elimination of government control of an industry to promote greater competition in that industry

Labour market reform

The process of reducing or eliminating government influence in an industry to promote better competition in that industry

Research and development

The systematic process a company or organization uses to create new products, services, or processes, or to improve existing ones

Productivity

A measurement of what is produced (output) from a given amount of resources (input)

Capital productivity

Measures the amount of goods and services that can be produced using a fixed amount of capital in a given amount of time

Labour productivity

A measure of how much economic output is produced for every unit of labour input, usually expressed as output per worker or per hour worked

Just in time inventory system

The process of ordering and receiving stock as it is needed to produce goods, not before. This process is used by some manufacturing businesses to increase efficiency and reduce waste.

Triple bottom line theory

A framework or theory that profit is not the only measure of a business’s success, but that its impact on people and the planet should also be considered as measures of success

What are three ways consumers are influenced by producers?

Advertising, product differentiation, and pricing.

How does advertising influence consumers?

It persuades consumers to buy products by highlighting benefits and creating brand recognition.

How does product differentiation influence consumers?

It makes a product appear different or better than competitors' products.

How does pricing influence consumers?

Discounts, sales and competitive prices can encourage consumers to purchase a product.

What is microeconomic policy?

Policies that affect individual businesses, industries and markets.

What is macroeconomic policy?

Policies that affect the economy as a whole.

Which policies are microeconomic?

Trade liberalisation, productivity policy, deregulation, labour market reform, and training/workplace development.

Which policies are macroeconomic?

Monetary policy, budgetary policy, and migration.

What is trade liberalisation?

Reducing restrictions on international trade, such as tariffs and quotas.

What is deregulation?

Reducing or removing government rules and restrictions on businesses.

What is monetary policy?

The RBA changes interest rates to influence spending, saving and investment.

What is budgetary policy?

The government changes taxation and spending to influence economic activity.

What are the three types of government budgets?

Surplus, deficit and balanced.

What is a budget surplus?

Government revenue is greater than government spending.

What is a budget deficit?

Government spending is greater than government revenue.

What is a balanced budget?

Government revenue equals government spending.

How can the RBA decrease consumer and business spending?

Increase interest rates.

Why does increasing interest rates decrease spending?

Borrowing becomes more expensive and saving becomes more attractive, reducing consumption and investment.

What are two ways a business can stay competitive?

Reduce costs and improve product quality.

How can reducing costs help a business compete?

It allows the business to lower prices or maintain profit margins.

How can improving product quality help a business compete?

It makes the product more attractive and helps differentiate it from competitors.

What are two steps in a marketing strategy?

Market research and target market selection.

What is market research?

Collecting information about consumers, competitors and market conditions.

What is target market selection?

Identifying the specific group of consumers the business wants to sell to.

What is productivity?

The amount of output produced from a given amount of inputs.

What is labour productivity?

The amount of output produced per unit of labour.

What is capital productivity?

The amount of output produced from a given amount of capital.

How can capital productivity be improved?

By upgrading technology/machinery and improving maintenance.

How can labour productivity be improved?

Through training and education, better working conditions, and improved technology.

What is the triple bottom line?

Measuring business performance based on profit, people and planet.

What does "profit" mean in the triple bottom line?

The business's financial performance.

What does "people" mean in the triple bottom line?

The business's social impact on employees and the community.

What does "planet" mean in the triple bottom line?

The business's environmental impact and sustainability.