Economics and Personal Finance Review

Vocabulary flashcards covering financial planning, saving, debt, investment, economic models, international trade, globalisation, specialisation, competitive advantage, and innovation based on the lecture syllabus.

Specialisation

An economic concept where production focuses on specific goods and services, explaining why certain products available locally are produced overseas rather than in Australia.

Competitive Advantage

The advantage businesses seek to create and maintain in global and domestic markets to outperform competitors.

Supply Chain

A network involved in producing and delivering goods and services, which can operate on a global scale with various advantages and disadvantages for market participants.

Five-Sector Circular Flow Model

An economic framework that illustrates the operations and interconnections of key participants, leakages, and injections in the Australian economy.

Leakages and Injections

Flows within the five-sector circular flow model that withdraw money from (leakages) or introduce money into (injections) the economy, influencing overall economic activity.

Key Participants in the Australian Economy

Major economic agents whose interactions drive the circular flow, specifically consumers, producers, workers, and the government.

Good Debt vs. Bad Debt

The distinction between financial obligations that provide long-term benefits or investment growth (good debt) and those that create unproductive financial risk or drain resources (bad debt).

Opportunity Cost of Not Saving

The financial opportunities, security, or future benefits that consumers forfeit when they choose to spend money instead of saving.

Financial Risks

Hazards encountered in consumer and financial choices, including scams, excessive debt, and identity theft.

Imports and Exports

Imports are products brought in from overseas, whereas exports are goods sold to foreign trading partners; both influence economic activity.

Globalisation

The increasing economic integration and global trade links, such as partnerships in the Asia region, that impact the Australian market.

Innovation

The development and application of new ideas or methods used by businesses to establish and retain a competitive advantage.

Aboriginal and Torres Strait Islander Businesses

Indigenous enterprises that develop unique market opportunities locally and globally.