Legal Studies and Economics Glossary

A collection of vocabulary flashcards keying in on core legal, economic, and business terminology extracted directly from the lesson material.

Absolute majority

more than half of the total votes or seats

Absolute monarchy

a system where a monarch has unlimited power to rule

Act of Parliament

a bill that has been passed by parliament and received royal assent, becoming law

Adversarial system

a legal system where two opposing sides (prosecution and defence) present their case before an independent judge or jury, who decides the outcome

Age pension

a fortnightly Australian government payment to people aged over 67, subject to income and assets tests

Aggregate demand

the sum or total value of all spending or demand on final (finished) goods and services produced by a nation and measured over a period of time

Alternative dispute resolution (ADR)

ways to solve legal disputes without going to court, such as mediation, arbitration or negotiation; usually faster, cheaper and less stressful than court proceedings

Australian Constitution

the legal document that establishes the rules and framework for the government of Australia, including the division of powers between the Commonwealth and the states

Balance of probabilities

the standard of proof in civil trials

Beyond reasonable doubt

the standard of proof required in a criminal trial

Circular flow model

a simplified model of the economy that shows the movement of money, goods and services between households, businesses, the government and overseas sector

Civil law

deals with non-criminal matters involving disputes between individuals and organisations; covers things like contracts, property damage, defamation and family matters. The outcome is usually monetary compensation, not jail.

Common law

law developed by judges through court decisions and precedents rather than through parliament

Consumer Price Index (CPI)

a measure that tracks changes in the prices of a basket of goods and services that typical Australian households buy; it is used to calculate inflation

Criminal law

the area of law dealing with crimes against society that can result in punishment such as fines or imprisonment

Doli incapax

a legal presumption that children aged between 10 and 13 are not capable of knowing their actions are seriously wrong; the prosecution must prove otherwise

Double majority

the requirement for a referendum to pass with both a national majority and a majority in at least four states

Fiscal policy

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

Gross Domestic Product (GDP)

the total value of all goods and services produced in a country over a specific period, usually one year or quarter

Monetary policy

the Reserve Bank using the cash rate to achieve economic objectives

Rule of law

the principle that everyone, including government officials, must follow the law and be held accountable equally

Separation of powers

the functions of government are spread across the legislative, executive and the judiciary

Statute law

laws made by parliament through the formal process of passing legislation

Tort law

the area of civil law dealing with wrongs that cause harm to others (but aren’t crimes); the main tort is negligence (when someone fails to take reasonable care and causes injury or loss)

Westminster system

the parliamentary system inherited from Britain, based on responsible government and separation of powers