Year 10 Commerce Yearly Exam - Our Economy and Law in Action

Vocabulary flashcards covering core economic concepts, policy tools, legal principles, and youth dispute resolution procedures from the Year 10 Commerce revision notes.

Scarcity

The economic condition where a resource or commodity has a limited supply.

The Economic Problem

The core economic issue that human wants are unlimited, but available resources are scarce, meaning choices must be made about which wants to sacrifice.

Real GDP

The total market value of final goods and services produced within a country over a specific period, adjusted to remove the effect of price changes (inflation) to reflect actual output changes.

Aggregate Demand (AD)

The total level of spending in an economy over a given period, calculated using the formula $\text{AD} = C + I + G + (X - M)$.

Transfer Payments

Government payments distributed to individuals without any direct exchange of goods or services in return, such as pensions and unemployment benefits.

Disposable Income

The total amount of income an individual or household retains after subtracting income taxes.

Wealth

The net value calculated by taking total assets (such as savings, property, and shares) and subtracting total liabilities (such as loans and mortgages).

Gini Coefficient

A statistical measurement of income inequality where $0$ represents perfect equality and $1$ represents complete inequality where one person receives all income.

Business Cycle

The natural periodic fluctuation of an economy between periods of expansion (growth) and contraction (recession) around a long-term trend line.

Fiscal Policy

A macroeconomic policy that adjusts government expenditure and revenue (receipts, primarily taxation) via the Budget to influence economic activity.

Monetary Policy

Macroeconomic action conducted by the Reserve Bank of Australia (RBA) to influence economic activity, primarily through manipulating the cash rate via Domestic Market Operations.

Cash Rate

The interest rate that commercial banks pay to borrow funds from the Reserve Bank of Australia (RBA) in the overnight money market.

Microeconomic Policy

Government action focused on specific individual businesses, industries, and markets to promote competition, enhance productivity, and lower prices.

Labour Force

The total workforce consisting of all employed and unemployed individuals aged $15$ and older who are working at least $1$ hour a week or actively seeking work.

Inflation

A sustained general rise in the prices of goods and services across the economy, measured quarterly by the Australian Bureau of Statistics using the Consumer Price Index (CPI).

Demand-pull Inflation

Inflation that occurs when aggregate demand exceeds aggregate supply, meaning too much money is chasing too few goods.

Cost-push Inflation

Inflation that occurs when businesses experience increased costs of production (such as wages, oil, or raw materials) and pass them on to consumers through higher retail prices.

Comparative Advantage

The economic principle where a nation produces a good or service at a lower opportunity cost relative to other trading partners, leading to mutual benefits from specialization and trade.

Actus Reus

The physical, voluntary conduct or omission committed by an accused person that constitutes a criminal offence ('the guilty act').

Mens Rea

The mental state of an accused person at the time of a crime, demonstrating intention, recklessness, or criminal negligence ('the guilty mind').

Adversarial System

A legal framework in which two opposing sides present their evidence and arguments before an independent, neutral adjudicator (such as a judge or magistrate).

Indictable Offence

A serious criminal charge (e.g., murder or armed robbery) heard in the District Court or Supreme Court, where guilt is determined by a jury and the sentence is imposed by a judge.

Legal Capacity

An individual's ability recognized under the law to perform legal actions or be held legally liable, determined primarily by age and mental state.

Doli Incapax

A legal doctrine meaning 'incapable of wrong', creating an irrebuttable presumption that children under the age of $10$ cannot be held criminally responsible.

Ronald Ryan

The last individual executed under capital punishment (hanged) in Australia, occurring in the year $1967$.

Civil Law

The branch of law handling non-criminal legal disputes between individuals or organizations, where a plaintiff pursues remedies such as monetary damages from a defendant.

Negligence

A civil tort involving the failure to exercise reasonable care, which results in harm or damage to another individual to whom a legal duty of care was owed.

Control Order

The most severe sentencing penalty available for juvenile offenders in NSW, serving a maximum duration of $2$ years inside a Youth Justice Centre.

Mediation

An Alternative Dispute Resolution (ADR) process where an independent, neutral third party guides opposing sides to reach an agreement without providing advice or imposing an outcome.

Conciliation

An Alternative Dispute Resolution (ADR) mechanism where a third party actively assists disputing parties, expresses opinions, and suggests solutions to help them resolve the matter.

Arbitration

An Alternative Dispute Resolution (ADR) process in which an independent third party listens to both sides and delivers a legally binding resolution.

Youth Justice Conference (YJC)

A formal conference where a young offender admits guilt and sits down with the victim, family members, a convenor, and police to acknowledge responsibility and arrange reparation.

Circle Sentencing

A community-based sentencing process for Indigenous offenders in NSW where community elders, the magistrate, victim, offender, and lawyers jointly determine an appropriate sentence.

United Nations (UN)

An international organisation founded in $1945$ with $51$ original members (now expanding to $193$) dedicated to safeguarding international peace, human security, and global rights.