Y10 - Commerce Yearly Exam w/ Glossary

Criminal law

Criminal law

law involving cases where the parliament has declared some action to be illegal

Dorothy Dixer

a rehearsed question asked of a government Minister by a backbencher of their own political party

consumer/household sector role

made up of consumers who own land, labour, capital, enterprise.

consumers buy from services so businesses can use this money to expand businesses

hung parliament

When two major parties have same number of seats in the House of Representatives in an election = a 'hung parliament'

Neither side is in a position to form a government on its own

Minor representatives or independents have to decide to support one or the other side leading to a party forming government

Anarchy

disorder or confusion due to the absence of government or laws

Ballot Paper

a piece of paper on which a voter records her or his vote.

Budget Deficit / Surplus

A budget deficit occurs when government expenses exceed revenue. A budget surplus occurs when revenue exceeds government expenditure.

Cabinet

the group of select government ministers that meets regularly to decide major issues of government

Circular Flow Model

a model of the economy which shows how money and goods and services move between different economic agents in the economy.

Company Tax

direct tax levied on the income or capital of corporations and other similar legal entities.

Committal Hearing

a hearing in a Local Court to decide whether there is enough evidence to put a person on trial for an indictable (serious) offence

Constitution

a document that outlines the powers of the parliament

Democracy

a system of government where political power lies with the people

Direct Tax

Taxes imposed directly onto the incomes of individuals and companies e.g. income tax and company tax

Economy

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

Entrepreneurship

setting up a business or businesses, taking on financial risks in the hope of making a profit

Judge

a court official who has the power to make decisions on matters brought before a court of law

Law of Supply

As the price of a good or service increases, the quantity of goods or services that producers are willing and able to offer will increase. The law of supply says that as the price of an item goes up, suppliers will attempt to maximise their profits by increasing the number of items for sale.

Microeconomics

the study of economics at the level of the individual firm, industry or consumer/household

What is a minority government?

A political party does not have a majority of overall seats in the parliament but they have still formed a government.

What is parliament?

Consists of two Houses (the Senate and the House of Representatives), and the King, represented in Australia by the Governor General.

What is public law?

Deals with disputes that affect the community.

What is seasonal unemployment?

Occurs when people are unemployed at particular times of the year when demand for labor is lower than usual. (eg someone who works at a holiday resort)

What is the Senate?

The upper house of the Federal Parliament, consisting of 76 senators.

What is separation of powers?

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

How are small businesses defined?

Annual turnover of $10 million or less and fewer than 20 employees.

What are statute laws?

Laws made by parliament.

What is the stock market?

Place where shares in public companies are bought and sold.

What is structural unemployment?

Involuntary unemployment caused by a mismatch between worker skills and employer demands.

What causes structural unemployment?

Technological changes that make job skills obsolete.

(e.g manufacturer has new machinery that does human job)

What is a tort?

Civil wrong that causes loss or harm.

government sector role in flow model

taxation (leakage) collects tax from incomes

gov expenses (injection) uses this money on health, education, welfare, infrastructure

price mechanism

refers to how forces of the amount of demand and supply will decide the price and supply of a certain good or service.

Market equilibrium:

the point where demand and supply curve intersect

It is the point where the sellers and the consumers agree on a price and will be willing to exchange the good or service for money.

Financial market

intermediaries/negotiators between savers and borrowers in an economy.

Saving or depositing into a bank

Online businesses

Using internet

Electronic commerce (e-commerce) Allow people to buy internationally and look through variety of goods and services

Offshore businesses

Businesses get their functions done in other countries

Take advantage of cheaper production in developing countries results in cost savings

E.g sweatshops

features of a recession

income and production low, high unemployment, low inflation, demand low, unused resources, interest rates are low, few investment opportunities

features of an economic boom

consumer and business confidence is high, economy cannot keep producing goods and services infinitely, income and production at highest level, full use of all resources, high salaries, businesses compete for scarce amount of workers available, increases in demand = increase in price, quick rise of inflation

what is a market and examples

any situation where buyers and sellers exchange good and services

- retail

- labour (jobs)

- financial (bank)

- stock

3 reasons for government intervention in the market

- energy pricing (coal and petrol)

- preventing environmental degradation (creating regulations, ban littering)

- conserving natural resources (stop overuse)

entrepeneurship

someone willing to take risks and has the qualities required to turn an idea into successful business

why is CSR good for business

CSR = consider the interest of stakeholders, society and environmental

consumers find out businesses demonstrating good or bad csr and reward them accordingly by purchasing products

may cost more in short term but is more beneficial in long term

causes of the GFC

- lehman brother collapse

- USA house prices rise

- interconnectedness from trade meant flow on effects

impact on businesses from GFC

- business couldn't invest as credits limited

- export challenges

- reduced demand for Aus exports

- stock market chaning rapidly

- reduced economic growth from reduced spending

supreme court

highest in STATE

serious criminal matters, murder, treason

appeals from local and district courts

high court

no jury, in canberra, appeals from state court, concerning the constitution

laws affecting parliament

decision applies to whole country

circle sentencing

to remove barriers between indigenous and legal system

- representatives, elders, victims gather to talk and decide appropriate punishment

parts of law of tort

negligence: not taking care

defamation: injuring other's reputation

nuisance: interfering with peoples rights to quietly enjoy property

tresspass: interfere with property

rights and responsibilities of australian

rights:

freedom of speech, leave country with passport, protected from discrimination, apply to work with police

responsibilites: enrol to vote, pay taxes

what are independents in political parties

Those not belonging to political party

Powerful position when there is no majority

Relies on independents to support Bills passing

parliamentary majority

Principle that the party with the majority of seats in the House of Representatives forms the government, and the leader of said party becomes prime minister

Minority Government

When a government has fewer seats than the Opposition, but is still able to be governing party because it has support of crossbenchers

separation of powers and why it exists

legislative - makes laws, executive - enforces laws, judicial - judges swear to uphold principles of fairness and justice

balances power, to protect citizens and share functions

acts as a safeguard by ensuring no branch has too much power and that the democratic process occurs fairly

judicial branch

court system to resolve disputes and uphold justice and fairness

barriers to accessing law and justice

cost, time, distance, procedures/knowledge, language barrier

types of income

earned/factor income: from wage

unearned: from property or assets paying in rent and dividend

transfer payments: from gov subsidies

income in kind: substituting income for good or service (company car)

aus top import goods

Personal travel

Motor vehicles

Petroleum

Telecommunications equipment

Freight services

positive effects of imports

- range for consumers to buy

- aus producers forced to be more efficient and compete

- other countries will buy exports from us

- peaceful relationships

negative impacts of globalisation FOR TRADE

unfair working conditions for workers in poorer countries

Large multinational corporations may shift production to poorer countries so labour is cheaper

Workers forced to work long hours in unsafe and unhealthy factory environments

Multinational corporations (MNCs) locate in countries where there is not as much environmental regulation

Exploitation/taking advantage of natural resources

Damage to natural environment with no benefit to local communities

Aggregate Demand

measures the total amount of demand for all finished goods and services produced in an economy

Barter

the swapping or exchanging of one good for another

Depression

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

Globalisation

a process in which national economies have become increasingly inter-connected and inter-dependent

International Trade

is the exchange (buying and selling) of goods and services between different countries

What is real GDP?

The total value of all goods and services produced in a country in a given period of time (usually a year) adjusted for inflation.

What is a subsidy?

Cash payment by the government to help producers compete.

financial sector role in flow model

intermediaries between savers and borrowers in the economy. They receive savings from individuals and businesses and lend this money to others.

types of businesses

online, on demand, small and large, global (TNC), offshore (sweat shops), government (aus post), non for profit (charities)

negative impacts of globalisation for BUSINESS

- increased competition for consumers attention against global businesses

- increased unemployment as they cannot compete with cheap imports (some industries)

- environment issues: transport means greenhouse gas, and countries begin to rely on fossil fuels

- social issues: workers are exploited and moved around often

role of jury, and what they must do

be independent and decide what they believe happened based on evidence heard in court

must: listen, put aside bias, be fair, understand

statutory interpretation

judges interpreting words in laws that are made by parliament, their meaning must apply to cases from now on

liberal party aims

Government minimises taxes and interference in daily life

Encourages private businesses and doesn't compete with them

Humane society where role of law and justice are maintained

causes of income inequality

Economic downturn mean businesses cut production, people work less or are unemployed

People with low income suffer during inflation, no purchasing power

Capitalist economic system: those with 'better labour' receive higher wages

why do we export

to help pay for the goods and services we import

gets rid of excess specialised goods

created jobs, allows businesses to develop efficient methods

aus top import countries

China

United states

South korea

Japan

Germany

negative effects of imports

- jobs lost to cheaper labour

- imported resources can lower employment

- affect exchange rate of AUD

- harmful species and diseases enter country

positive impacts of globalisation for trade

Globalisation a driving force for economic growth

New markets created from free trade

Selling more = more profit

Companies and workers become wealthier

Standard of living improves

Resources used efficiently to produce goods and services

Business Cycle

the cyclical fluctuations in the general level of economic activity

Budget

The budget is a document outlining where the government plans on receiving money (receipts) and where it intends to spend that money (expenditure).

Civil Law

deals with non-criminal matters involving disputes between individuals and organisations

Common Law

laws which are developed by judges on a case by case basis, building on the precedent and interpretation of earlier court decisions.

Consumer Price Index (CPI)

measures the overall change in consumer prices based on a representative basket of goods and services over time.

Corporate Social Responsibility

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

Constitutional Monarchy

a form of government in which a non-elected monarch acts as the head of state. There are usually constitutional limits on their power

Court

a place where people can resolve disputes relating to law

Customary Law

comprehensive systems of governance in Aboriginal and Torres Strait Islander cultures, including ownership and custodianship, caring for Country/Place responsibilities, kinship, ceremonial duties, marriage and childcare, as well as sanctions and dispute resolution processes

Cyclical Unemployment

unemployment rises and falls with changes in the economic cycle. (e.g GFC workers were laid off)

Economic Growth

a measurement of the increase in a country's gross domestic product (GDP)

Economies of Scale

the cost advantages to a business due to their scale of operation

Exchange Rate

the value of one nations currency in terms of another.

Exports

goods and services sold by local (Aus) businesses to overseas consumers

Federal Parliament

the House of Representatives and the Senate

Fiscal Policy

the use of the federal government's budget (adjusting spending levels and tax rates) to achieve economic objectives.

Foreign Direct Investment (FDI)

when a firm or an individual establishes physical assets in another country

Free Trade Agreement

an international treaty between two or more economies that reduces or eliminates certain barriers to trade in goods and services, as well as investment.

Frictional Unemployment

occurs when people are in between jobs. For example, a school-leaver may take some time to get their first job.

Gross Domestic Product (GDP)

the total value of all goods and services produced in a country in a given period of time (usually a year)

GDP per capita

the total value of all goods and services produced in a country in a given period of time (usually a year) divided by its total population.

House of Representatives

the lower house of Federal Parliament, sometimes called the people's house. It currently consists of 151 members who represent each "electorate" or "seat".