commerce

yearly exam

Expansion

the economy grows, jobs increase, and consumer spending rises.

Peak

The highest point of the business cycle before economic slowdown occurs.

Recession

A phase where the economy shrinks, leading to job losses and decreased consumer spending.

Trough

The lowest point of the business cycle before recovery begins.

what are the phases of the business cycle?

expansion, peak, recession and trough

Causes of Business Cycle

Factors like spending and consumer confidence

give an examples of an economic event

Great Depression- severe economic recession

Key Features of Recessions

High unemployment, low spending, and falling prices (deflation).

Key Features of Booms

Low unemployment, high spending, and rising prices (inflation).

Demand

the amount of a product people want to buy at a certain price.

Law of Demand

when prices go down, people buy more.

when prices go up, people buy less.

Supply

The quantity of a product that businesses are willing to sell at a given price.

Law of Supply

when prices go up, businesses sell more.

when prices go down, businesses sell less.

Equilibrium

The point where the demand and supply curves meet. This is where the price and quantity are balanced.

Price Mechanism

the way supply and demand determine prices in the market.

Factors Affecting Demand

Income, tastes, population, substitute goods, complementary goods, and expectations.

Factors Affecting Supply

Efficiency, production costs, weather, and the number of suppliers.

Supply Table

A table showing how much a seller is willing to sell at different prices.

Demand Table

A table showing how much a buyer is willing to buy at different prices.

Supply Curve

slopes upward, showing that sellers are willing to sell more at higher prices

Demand Curve

slopes downward, showing that buyers are willing to buy less at higher prices

Standard of Living

A measure of how well individuals are living.

GDP per Capita

Total value of goods and services produced per person.

Economic Growth

Measures the increase in production of goods and services.

Income Distribution

Measures how evenly income is distributed among people.

Environmental Sustainability

Measures how well the economy can meet current needs without harming future generations.

Unemployment

The condition where individuals who are willing and able to work cannot find jobs.

Labour Force Survey

A method used to measure unemployment by interviewing individuals aged 15 and over.

Cyclical Unemployment

Unemployment that occurs during economic downturns due to decreased spending.

Structural Unemployment

Results from changes in technology or production methods.

Seasonal Unemployment

Job losses that occur due to seasonal fluctuations in demand.

Frictional Unemployment

Temporary unemployment that occurs when individuals are between jobs.

Consumer Price Index (CPI)

used to measure inflation

calculates the average change in prices of a basket (food, clothing, housing etc.) of goods and services

Demand-side Inflation

excessive demand for goods and services.

Supply-side Inflation

increased production costs.

Impacts of Inflation

Reduced competitiveness, undermined economic growth, and affected income distribution.

Reasons to Leave Home

Pursuing education, employment, seeking independence, or family disagreements.

Types of Accommodation

Options include renting an apartment, share housing, or university colleges.

Key Considerations for Leasing

Understanding rights, reviewing agreements, and communicating with landlords.

Establishment Costs

One-time expenses when moving into a new place

Ongoing Costs

Recurring expenses

Financial Strategies

Monitoring spending, budgeting, and shared living arrangements to manage finances.

Tax File Number (TFN)

A unique identifier required for tax purposes in Australia.

Major Purchases

Considerations for buying mobile phones and cars, including costs and financing options.

Payment Methods

Various ways to pay for purchases, including cash, credit, and lay-by options.

Consumer Protection

Laws that safeguard consumers from unfair practices and ensure rights are upheld.