Year 10 Commerce Exam Revision Guide

Comprehensive vocabulary flashcards covering Economics, Legal Studies, Accounting, and Marketing concepts for Year 10 Commerce revision.

Economics

The study of how people use resources to satisfy needs and wants.

Needs

Essentials for survival, such as food, water, and shelter.

Wants

Things we would like but do not need for survival, such as Nike shoes or an iPhone.

Collective wants

Wants for the community, such as hospitals.

Recurring wants

Wants that are needed regularly, such as bills.

Complementary wants

Wants that go together, like a car and petrol.

Substitute goods

Alternative goods, such as Pepsi vs Coke.

Land

Natural resources used in the factors of production.

Labour

Human effort or work used as a factor of production.

Capital

Tools, machines, and buildings used in production.

Enterprise

The skills and ideas of entrepreneurs used in production.

The Economic Problem

The situation where wants are unlimited but resources are limited (scarce), requiring choices to be made.

Demand

How much consumers are willing and able to buy at different prices.

Law of Demand

An inverse relationship where if Price increases, Demand decreases, and if Price decreases, Demand increases.

Supply

How much producers are willing and able to sell at different prices.

Law of Supply

A positive relationship where if Price increases, Supply increases, and if Price decreases, Supply decreases.

Production Possibility Curve (PPC)

A model that shows the maximum combinations of two goods an economy can produce with limited resources.

Opportunity cost

What you give up when making a choice.

Efficiency (PPC)

Operating on the curve, where all resources are used fully.

Unattainable (PPC)

A point outside the curve that is not possible with current resources.

Laws

Rules recognized and enforced by society and government; breaking them leads to serious consequences like fines or jail.

Rules

Guidelines set by organizations (e.g., schools) where breaking them leads to smaller punishments.

Rights

Freedoms that individuals are entitled to, such as education and voting.

Responsibilities

Duties to respect the rights of others.

Social cohesion

A function of law that promotes peace, harmony, fairness, and equality while reducing discrimination.

Social progress

A function of law that improves health, expands education, protects the environment, and raises living standards.

Public Law

Law dealing with the relationship between government and citizens, including criminal, constitutional, and administrative law.

Private Law

Law dealing with disputes between individuals or organizations, such as contract and tort law.

Negligence

A civil wrong under tort law involving carelessness that causes harm to another person.

Defamation

A civil wrong under tort law involving damaging someone's reputation.

Magistrates Court

The court that handles minor (summary) offences such as traffic offences and small thefts; most cases start and finish here.

Supreme Court

The highest court in SA at the trial level, dealing with the most serious criminal cases like murder and manslaughter.

Burden of proof

Refers to who must prove the case; in criminal law it is the government, and in civil law it is the person bringing the case.

Standard of proof (Criminal)

The level of proof required in a criminal trial, which is $beyond reasonable doubt$.

Standard of proof (Civil)

The level of proof required in a civil trial, which is the $balance of probabilities$.

Deterrence

A reason for legal sanctions intended to stop future crime.

Plaintiff

The person who starts a legal case in civil law claiming they have been wronged or harmed.

Defendant

The person who is being accused or sued and must defend themselves.

Accounting Entity Principle

The principle that a business is treated as separate from the owner’s personal finances.

Accounts Payable (Creditors)

Money a business owes to other businesses or suppliers for goods or services received but not yet paid for.

Accounts Receivable (Debtors)

Money that customers owe to a business for goods or services they have received but not yet paid for.

Assets

Things of value used by a business to make money.

Intangible assets

Assets with no physical form, such as patents, trademarks, and goodwill.

Liabilities

Debts owed to other people or organisations.

Owner’s Equity

The owner’s share of the business, calculated as $Capital - Drawings + Profit/Loss$.

The Accounting Equation

$$Assets = Liabilities + Owner’s Equity$$

Balance Sheet

A financial report showing the business's financial position (Assets, Liabilities, and Owner's Equity) at a specific date.

SWOT Analysis

A marketing tool identifying Strengths, Weaknesses, Opportunities, and Threats.

Premium Pricing

A strategy using a high price to create a high-quality image.

Penetration Pricing

Setting a low price to enter a market.

Psychological Pricing

Setting prices such as $\$9.99$ instead of $\$10$ to appeal to consumer psychology.

Captive Pricing

Pricing a core product cheaply but keeping extras expensive.

Demographic segmentation

Dividing a market based on age, gender, income, or occupation.

Psychographic segmentation

Dividing a market based on lifestyle, values, or personality.