HASS - Economics and Business Year 8

Markets

Any structure that allows buyers and sellers to exchange any type of goods or services

Free Market

An economic system where prices of goods and services are determined by supply and demand, with limited government intervention

Goods

Physical things

Services

Things people do for us

Chain of Production

The sequence of steps and activities involved in transforming raw materials into finished goods or services that are available for consumers

Employer(s)

Businesses/someone that employ workers to produce goods and services

Employees

People who work for a business

Wage

The amount of money that a worker is paid based on the work they do

Minimum Wage

The lowest amount of money that a worker can be paid

Australian Made

A product that has undergone its last substantial transformation (or making) within Australia

Transaction

An agreement between a buyer and a seller

Voluntary Exchange

A transaction where two or more parties freely agree to trade goods or services because they believe the trade will benefit them

Consumer

A person who purchases goods and services

Retailer

A person or business that sells goods to the public in relatively small quantities for use or consumption rather than for resale

Leased

A contract that allows a person to use a property for a period of time, usually in exchange for rent (money)

Tenant

A person who pays rent in exchange for living in a house owned by someone else

The Law of Supply

The higher the price that a good or service can be sold, the higher the quantity that producers are willing to supply

The Law of Demand

When prices rise, the quantity demanded decreases and when prices fall, the quantity demanded increases

Market Forces

Changes in supply and demand that affect how much people are willing to pay for or sell goods and services

Price Mechanism

The way price can affect the supply and demand of goods and services

Profit

The amount of money a business earns after taking away its expenses

Loss

Negative financial outcome

Factors of Production

Economic resources are divided into four categories

Land | Labour | Capital | Enterprise

Resources

Natural or manufactured materials that can be used to produce goods and services

Income/Revenue

The total amount of money a business earns from selling goods and services

Cost/Expenditure

The amount of money used to pay for things used in making a profit

Income Tax

A tax that is taken from a person's income

Goods & Services Tax (GST)

A tax that is taken from consumers when they buy most goods and services

Tax-Free Threshold

The income level at which a person begins paying income taxes

Australian Taxation Office (ATO)

The Australian Government's principal tax collection agency

Tax File Number (TFN)

A personal reference number used by the government to identify people for tax purposes

Labour Market

The supply of and demand for labour, also known as the job market

Artificial Intelligence

Artificial intelligence (AI) gives machines and robots the ability to think and act more like humans

Living Standards

The level of wealth, material goods and comfort available to people

Work-Life Balance

The relationship between a person's work and lifestyle, and the impact they have on each other

Outsourced

To have obtained goods and services from outside suppliers to reduce costs

Competitors

Rival businesses that make products in the same market

Developing Countries

Less economically developed countries that have some difficulties in supporting the needs of their people

Marketing

Activities that businesses undertake to promote the buying or selling of product

Service

Businesses offering intangible services like tutoring, legal advice, etc

Workers' Unions

Organised associations of workers that are formed to protect and further the workers' rights, interests and working conditions

Strike

A refusal to work as a form of protest until something is done to address the workers' concerns

Entrepreneur

A person who operates organises and assumes the risk of a new business

Enterprise

Skills used to coordinate production of goods and services

Attribute

Personality trait

Skills

A particular ability developed through training and experience that is useful in a job

Innovation

The development of a new idea or product

Competitive Advantage

A condition or quality that makes a business more successful than its competitors.

Start-up Company

A new business in its initial stages of operation that is developing a product or service that is new and innovative

Goal

A purpose or aim that a person or business wants to achieve

Objective

An action that a business plans to do to achieve a goal within a time frame

Short-Term Financial Goal

An objective which the business aims to complete within one year

Long-Term Financial Goal

An objective which the business believes will take longer than one year to complete

Customer Satisfaction

A measure of how happy customers feel when they do business with a company

Customer Retention

The ability of a business to keep customers for a period of time

Reputation

The opinion that customers in general have about a business based on their past dealings with the company and the quality of the product and/or service the business sells

Market Share

The number of products or services that a company sells compared to the number of the same product or service sold by other companies

Corporate Social Responsibility (CSR)

Business practices that are ethical and socially responsible

Financial Objectives

A financial result and individual or a business plans to achieve within a time frame

Circular Economy

An economic system aimed at eliminating waste and the continual use of resources

Budget

A financial plan listing expected expenses and income during a particular period

Direct Taxation

A tax that is paid by the person or business to the Australian Taxation Office, for example, income tax

Indirect taxation

A tax that can be passed on to others by the person or firm on whom it is levied, for example, goods and services tax (GST)

Salary

Paid on an annual basis in regular amounts (eg. fortnight or monthly) and is unrelated to the number of hours worked or the age of the worker

Personal Income

Refers to funds that are earned by an individual and are received by them in the form of salary, wages or shares of a profit a business makes or return on investment

Progressive Taxation System

A system in which the percentage of tax paid increases as individuals' income levels increase

Tax Brackets

Categories which link a range of personal income to the level of income tax each person has to pay to the government

Gross Income

Refers to the total income before tax deductions are included

Net Income

Refers to the income you receive after tax has been paid to the government

Working From Home (Advantages)

Saves travel time, and is able to concentrate better, stops the spread of illness, more flexibility to work when you want to

Working From Home (Disadvantages)

Some jobs cannot be worked from home, for example, surgeons and transportation workers, isolation

What are some examples of goods?

Food, Clothing

What are some examples of services?

Hairdressing, Transportation

What happens to the price of a product that is oversupplied and that no one wants?

The price goes down

What happens to the price of a product that is undersupplied and that many people want?

The price goes up

What is the main goal of every business?

To make a profit

What are ways for a business to reduce their expenses?

Outsourcing, using cheaper materials, paying lower wages (but not below the minimum wage)

What is the role of the Australian taxation system?

To benefit the community, to provide revenue for public services and infrastructure

What are the three main taxes in Australia?

Income Tax, GST, Company Tax