11 ATAR Business and Enterprise: Economic Activity and Business Spending Patterns

Vocabulary flashcards covering economic activity, business spending patterns, CPI, consumer confidence, social norms, consumer attitudes, and business public image.

Economic Activity

The production, distribution, and consumption of goods and services within an economy.

Business Spending Patterns

The ways in which businesses allocate their financial resources to various expenses and investments, including operating costs, capital expenditures, and strategic investments.

Capital Expenditures

Business investments allocated toward long-term assets.

Strategic Investments

Business spending allocated toward long-term growth and development.

Common Monthly Business Expenses

Regular operating costs incurred by a business, which include office supplies, wages, building lease, utilities, advertising costs, and business club association fees.

Consumer Price Index (CPI)

The gradual increase in the prices of goods and services over time.

High CPI

A Consumer Price Index rate of more than $2\%$, which reveals high economic activity, suggesting high consumer confidence and strong demand.

Low CPI

A Consumer Price Index rate of less than $2\%$, which reveals low economic activity, suggesting low consumer confidence and weak demand.

Consumer Confidence

A measure of consumers' optimism about the state of the economy and their willingness to spend now and into the future.

Social Norms

Generally accepted rules that govern acceptable consumer behaviour in society, shaped by cultural, social, and economic factors.

Consumer Attitudes

The feelings and opinions that consumers hold towards specific products, brands, or categories, formed by personal experiences, beliefs, values, and social influences.

Consumer Preferences

Consumers' likes or dislikes of a certain product, brand, or category, driven by consumer attitudes.

Public Image

A business's reputation as shaped by consumer perceptions of its products, practices, and values.

Patagonia

A multinational outdoor clothing and gear brand that built a positive public image and loyal customer base through sustainable sourcing, transparent supply chain practices, and support for environmental causes.