Business and Economics exam flashcards (S2 Y9)

What is disposable income?

Money left after tax has been taken out of your pay. It can then be used for spending or saving.

What is gross income?

The total money you earn before tax is taken out.

What is income tax?

Money paid to the government from the money you earn.

What is the difference between gross income and disposable income?

Gross income is the total money earned before tax. Disposable income is the money left after tax has been taken out.

What is discretionary spending?

Money spent on things you want but don't need.

What is non-discretionary spending?

Money spent on things you need, such as food and bills.

What is the difference between discretionary and non-discretionary spending?

Discretionary spending is on wants, while non-discretionary spending is on needs.

What is a budget?

A plan for how you will spend and save your money.

What are savings?

Money you put aside to use in the future.

What is financial risk?

The chance of losing money or having money problems.

What is overspending?

Spending more money than you can afford.

What is insurance?

Protection that helps cover the cost of unexpected events.

What is superannuation?

Money saved by your employer for your retirement.

What is material wellbeing?

Having enough money and possessions to meet your needs and wants.

What is competition?

When businesses try to attract the same customers.

What is a competitive business?

A business that tries to do better than other businesses.

What is market research?

Collecting information about customers and what they want.

What is marketing?

Promoting a product or service to attract customers.

What is selling?

Exchanging a product or service for money.

What is public relations (PR)?

Managing how the public sees and thinks about a business.

What is product differentiation?

Making a product different from competitors' products.

What is human resource management (HRM)?

Managing employees and looking after workers in a business.

What is an entrepreneur?

A person who starts and runs their own business.

What is a trade union?

An organisation that protects workers' rights and interests.

What is an employer association?

An organisation that represents and supports businesses and employers.

What are minimum employment entitlements?

The basic rights workers must receive, such as minimum pay and leave.

What is the Fair Work Ombudsman?

An Australian government organisation that makes sure workplaces follow employment laws.

How do you calculate disposable income?

Subtract income tax from gross income.

How do you distinguish between needs and wants when budgeting?

Needs are things you must spend money on, such as food and bills. Wants are things you would like but don't need.

What should you consider when creating a budget?

Your income, spending, savings and the difference between needs and wants.

How do you calculate a savings time frame?

Work out how much money you need to save, then divide it by how much you can save each week or month.

What are some warning signs of a scam?

Unexpected messages or offers, requests for personal or banking details, suspicious links, pressure to act quickly and offers that seem too good to be true.

What should you do if you think something is a scam?

Don't click suspicious links or share personal or banking details. Stop communicating and check the message with a trusted source.

What is the difference between competition and a competitive business?

Competition is when businesses try to attract the same customers. A competitive business tries to do better than other businesses.

What are market research, marketing, selling, PR and product differentiation?

Market research: collecting information about customers and what they want. Marketing: promoting a product or service. Selling: exchanging a product or service for money. PR: managing how the public sees a business. Product differentiation: making a product different from competitors' products.

What do entrepreneurs and HRM involve?

An entrepreneur starts and runs their own business. HRM involves managing employees and looking after workers in a business.

What is the difference between a trade union and an employer association?

A trade union protects workers' rights and interests. An employer association represents and supports businesses and employers.

How can you describe data trends using figures?

Identify the trend and support your description with specific figures from the data.

What should you include when explaining workplace rights?

Explain workers' minimum employment entitlements, such as minimum pay and leave, and the role of the Fair Work Ombudsman in making sure workplaces follow employment laws.

What is the role of the Fair Work Ombudsman in Australia?

It is an Australian government organisation that makes sure workplaces follow employment laws.

How do you write a developed response in Economics and Business?

Include a clear explanation, relevant examples, evaluation and a conclusion.