Economics and Business Concepts

Flashcards generated from lecture notes on economics and business concepts.

Cost Benefit Analysis

A structured process of evaluating the potential positive and negative impacts of a project or policy decision, often by expressing them in monetary terms.

Comprehensive Evaluation (in CBA)

Considers all costs and benefits, including financial, social, environmental, and cultural impacts.

Monetary Valuation (in CBA)

Seeks to put a monetary valuation on all aspects, even those that are less tangible, allowing for a direct comparison.

Comparison of Scenarios (in CBA)

Compares the proposed project or policy with a “business as usual” or “no reaction” scenario.

Supply

The amount of a product producers are willing to sell at a given price.

Demand

The amount consumers are willing to buy at a given price.

How Supply And Demand affect wages

Higher demand and lower supply typically push wages up, and higher supply and lower demand typically push wages down.

Shift in a Supply Curve

Occurs when there's a change in the quantity of a good or service supplied at any given price point.

Financial Markets

Involve the trading of financial instruments like stocks, bonds, or currencies.

Consumer Markets

Involve the sale of goods and services to individuals for their personal use.

Industrial Markets

Involve the sale of goods and services to businesses for use in their operations.

Government Markets

Involve the sale of goods and services to government agencies.

Factor Markets

Involve the exchange of factors of production (labor, capital, and land).

Market Structures

Perfect competition, Monopoly, Monopolistic competition, Oligopoly.

Living Standards

Refers to the level of wealth, comfort, material goods, and necessities available to a certain class or individual.

Role of Government in Private Goods and Services

Revolves around creating an environment where private sector provision is efficient and beneficial through legal frameworks, regulation, and ensuring fair competition.

Role of Government creating private sector enviroment

Setting legal frameworks, regulating markets, and ensuring fair competition.

Government providing private services

The government directly provides these, often when markets fail to do so adequately.

Role of Government in Public Goods and Services

The government's role is crucial and provides goods and services that benefit all members of society, and are non-excludable.

Examples of Public Goods and Services

Roads, bridges, basic education, and public health services.

Funding for Public Goods and Services

Typically funded through taxes.

Role of Government in Common Access Resources

The government's role is to prevent overuse and ensure sustainable use.

Ethical Consumerism

Involves making purchasing decisions based on personal values, prioritizing ethically sourced, produced, and distributed products.

Unethical Consumerism

Refers to actions by consumers that are morally wrong, such as shoplifting or misusing coupons.

Ethical Business Practice Example

Ensuring fair wages and safe working conditions for all employees, regardless of location.

Competitive Advantage

The edge a company has over its rivals, allowing it to attract more customers and grow market share.

Innovation

The process of developing new and improved ways of doing things.

Factors Influencing Consumer Decisions

Age, lifestyle, income, psychological factors, gender, and personal preferences.

Elements of Marketing Campaigns

Defining clear objectives, understanding the target audience, crafting compelling messaging, choosing the right channels, setting a budget, and measuring results.

Consumer rights

If a product or service fails to meet the guarantees consumers can seek a remedy like a refund, replacement or repair

Organizations that Support Consumer Rights

Consumer Action Law Centre and the Australian Competition and Consumer Commission.

Blended Marketing and Open Innovation

Combining different marketing tactics and seeking ideas and solutions from outside the organization.

Advantages of Social Media in Business

Increased brand awareness, enhanced customer engagement, and boosted website traffic.

Disadvantages of Social Media in Business

Time wastage, privacy concerns, and addiction.

Economic Problem

Unlimited wants and limited resources.

Types of Resources

Labour, capital, and natural resources.

Opportunity Cost

What you forego when making a decision.