Commerce topic 2 Glossary

barter

barter

the swapping and exchanging of one good for another

business cycle

the cyclical fluctuations in the general level of economic activity

consumption

the purchasing of goods and services to satisfy needs and wants

corporate social responsibility

when businesses consider the interests of stakeholders, society and the environment when making economic and business decisions

depression

a severe contraction in the level of economic activity resulting in business failures, high levels of unemployment and falling prices

economy

activities undertaken for the purpose of production, distribution and consumption of goods and services in a region

exports

goods and services sold by local businesses to overseas consumers

fiscal policy

the use of federal government's budget to achieve economic objectives

globalisation

the process that sees people, goods, money and ideas moving around the world faster and more cheaply than before

global sourcing

seeking out the cheapest materials and supplies across national borders

imports

goods and services purchased by local consumers from overseas businesses

inflation

a general rise in prices across all sectors of the economy, causing money to lose its value

interdependence

reliance of consumers, workers, businesses and governments on each other

interest

the price that must be paid in order to use someone else's money

investment

the use of money to purchase equipment or premises for the establishment of a new business

labour market

the buying and selling of labour

law of demand

states that the quantity of a good or service demanded varies inversely to price

law of supply

states that the quantity of a good or service supplied varies directly with price

market

where the exchange of goods, services or resources between buyers and sellers occurs

monetary policy

The Reserve Bank using interest rates to achieve economic objectives