Year 10 Commerce - Semester One Review

Consumer behaviour is influenced by ethical and unethical business practices, advertisements, and various factors affecting consumer choice, including psychological, sociocultural, economic, and governmental influences.

Marketing involves creating, communicating, delivering, and exchanging offerings. The 4Ps of the marketing process are Product, Promotion, Place, and Price. Maslow’s Hierarchy of Needs includes Physiological, Safety, Social, Esteem, and Self-actualisation needs.

Types of innovation include product and process innovation.

Social media, blended marketing, and open innovation are important tools in modern marketing strategies.

Digital technology is increasingly important in the workplace.

Business productivity is related to achieving business objectives. Concepts such as Just in Time (JIT) and Social Enterprise are relevant. Key elements of the operations system include inputs, processes, and outputs. A code of ethics or code of conduct is essential for business operations and businesses can improve their economic standing through improved practices.

Economic measurements include GDP for measuring growth, inflation for measuring price changes and the unemployment rate for measuring participation in the workforce. These metrics are important when discussing living standards and opportunity cost.

Basic accounting information and key terms are essential

Types of innovation include product and process innovation.

Social media, blended marketing, and open innovation are important tools in modern marketing strategies.

Digital technology is increasingly important in the workplace.

Basic accounting information and key terms are essential

Social Enterprise

Social Enterprise Name: Who Gives A Crap (Australia)

Purpose/Social Aim: The purpose of Who Gives A Crap is to provide eco-friendly toilet paper while helping improve sanitation around the world. They donate 50% of their profits to build toilets and provide clean water in developing countries.

Profit or Non-Profit: It is a for-profit social enterprise, but it uses a large portion of its profits to support social causes.

Corporate Social Responsibility (CSR)

Organisation Name: Qantas (Australia)

CSR Initiatives: Qantas focuses on reducing its environmental impact through carbon offset programs, using sustainable aviation fuel, and committing to net zero carbon emissions by 2050. They also support community programs, including diversity and inclusion projects and partnerships with Indigenous communities.

How They Achieve It: Qantas achieves its CSR goals by investing in renewable energy, supporting ethical suppliers, and encouraging customers to offset their flight emissions.

Impact on Reputation: These CSR initiatives improve Qantas' public image, showing customers that the company is committed to sustainability and social responsibility. This helps attract eco-conscious travelers and builds customer trust.

Business Marketing & Innovation Notes

Market Share

Proportion of the market controlled by a business based on total sales value.

Higher market share indicates stronger dominance in the industry.

Branding for Market Leadership

Strong branding helps businesses stand out in the market.

Builds customer loyalty and trust.

Consistent brand image boosts market leadership.

Product Placement

Used to promote products indirectly in:

Television shows
Movies
Social media
Video games

Helps keep the product in the consumer's mind without direct advertising.

Customer Profile

Identifies target customers based on:

Age
Gender
Income
Lifestyle
Interests
Location

Target Market

The specific group of people a product/service is aimed at.

Understanding target markets helps businesses create tailored marketing campaigns.

Marketing the School to the Public

Ways the school markets itself:

Social media (Instagram, Facebook)
School website
Open days and tours
Local community events
Brochures and newsletters

Suggestions for Future Marketing

Virtual tours on the website
Student testimonials videos
Collaborations with local businesses
Highlighting student achievements through social media

Market Environment Analysis

Research trends in education (e.g., STEM programs, mental health support)
Understand what students and parents want (e.g., smaller class sizes, extracurricular activities)
Analyse competitor schools (facilities, curriculum, reputation)

Customer & Employee Consultation

Use surveys for feedback
Regular meetings with staff
Parent and student suggestion boxes

Seeking Advice & Resources

Business advisers
Government grants
Professional development courses
Intellectual property (IP) protection for unique programs

Innovation & Strategic Planning

Encourage creative ideas from staff and students
Develop a responsive plan to adapt to market changes
Use technology (apps, e-learning platforms)

Employee Training & Empowerment

Workshops on innovation
Allow staff to pitch ideas
Reward innovative ideas

Questions for tmr Test

Distinguish between profit and innovation
Explain mallows theory of motivation
Identify the three elements of the operations system, use examples
Discuss the use if technology in the workplace in your report , highlight the importances advantage and disadvantages
Define Business Productivity And business objectives , explain how productivity give to one business objective
Explain the difference between code of conduct and code of ethics

RANVIR SINGH

Unemployment results in a reduction in government revenue. This is because the government collects less revenue in the form of income taxes. The government also collects less tax on other items related to spending, because those who are unemployed have lower disposable incomes.

Business Contributions To UnEmployment

lower levels of production require businesses to employ fewer workers (than higher levels of production).
businesses need to remain competitive to survive (Implemented Automated CAD machines will increase the business competitive advantage
Automated machines such as CAD can save time and money for the businesses and therefore choose automated production lines as opposed to hiring humans.

Employment + Social Wellbeing

Both the availability of jobs and the earnings they pay are relevant for well-being.

Not only they increase people's command over resources, but they also provide people with a chance to fulfil their own ambitions
to develop skills and abilities
to feel useful in society and to build self-esteem.

Societies with high levels of employment are also richer, more politically stable and healthier.

The experience of unemployment is one of the factors that have the strongest negative impact on people's subjective well-being, with effects that are much larger than the income loss associated with unemployment.

Identify what GDP stands for.

GDP stands for Gross Domestic Product.

Explain one possible reason why we measure GDP.

We measure GDP to understand the overall health of a country’s economy and how much goods and services it is producing.

Outline at least three factors that affect a nation’s progress, but are not measured by GDP.

Environmental health (e.g. pollution, natural resource depletion)
Work-life balance and mental wellbeing
Income inequality or wealth distribution

In your own words, define ‘economic depression’.

An economic depression is a long-lasting and severe decline in economic activity, where businesses close, many people lose jobs, and the economy shrinks significantly.

Summarise the consequences of a depression.

High unemployment rates
Decreased consumer and business spending
Increased poverty and hardship
Government revenue drops, making it harder to fund services

Explain how you think producing more and more goods and services each year might affect our environment.

Constantly increasing production can lead to more pollution, deforestation, waste, and use of non-renewable resources, which damages ecosystems and contributes to climate change.

What percentage change in GDP do economists like to see? Determine (decide) why you think this is.

Economists generally like to see a GDP growth of around 2–5% per year, as it indicates stable and sustainable economic growth without high inflation or overheating the economy.

Examine Source 2. Why do you think there was a significant decline in GDP growth in 2020?

There was a major drop in GDP growth in 2020 likely due to the COVID-19 pandemic, which caused lockdowns, business closures, job losses, and reduced global trade. and lost of economic spending

Refer to the Chart Pack at the Reserve Bank’s website and find the latest GDP figures.

Trends you might notice:

Strong growth post-pandemic recovery (2021–2022)
Possible slowing in 2023–2024 due to inflation control measures and interest rate rises.

Create a diagram or infographic showing how increases in GDP can lead to increased employment and improved living standards.

18.2

Here are clear and well-explained responses to each question:

In your own words, define ‘inflation’.

Inflation is the general rise in prices of goods and services over time, meaning your money buys less than it did before.

Identify the Reserve Bank’s target inflation rate.

The Reserve Bank of Australia (RBA) aims to keep inflation between 2% and 3% on average over time.

Explain how the ABS measures inflation.

The Australian Bureau of Statistics (ABS) measures inflation using the Consumer Price Index (CPI), which tracks changes in the prices of a basket of commonly purchased goods and services, like food, transport, and housing.

Determine which of the following may contribute to an increase in inflation caused by strong demand.

a. Consumer confidence falls.

No – If people are less confident, they spend less, which reduces demand and may lower inflation.

b. Business confidence rises.

Yes – Confident businesses may hire more and invest, boosting economic activity and demand, which can push prices up.

c. Income tax is increased. No – Higher taxes reduce people’s disposable income, lowering their ability to spend and decreasing demand, which can reduce inflation.

Examine Source 6 and describe Australia’s inflation trend from 2015 to 2020.

(Assuming Source 6 shows CPI data)

Between 2015 and 2020, Australia’s inflation remained relatively low and stable, mostly staying within or below the RBA’s target range, with a significant dip in 2020 due to the COVID-19 pandemic and reduced consumer spending.

Explain why people on the aged pension are more likely to be affected by higher inflation rates than employed people.

Pensioners live on fixed incomes, so when prices rise, they may struggle to afford everyday items. In contrast, employed people might receive wage increases that help them keep up with inflation.

Research hyperinflation in Zimbabwe – 200-word paragraph

In the late 2000s, Zimbabwe experienced one of the worst cases of hyperinflation in history. By November 2008, inflation reached an estimated 79.6 billion percent per month. The crisis began due to excessive printing of money by the government to fund a war in the Congo and to pay off debts, combined with declining agricultural output after land reforms. As prices soared daily, people lost confidence in the local currency. Basic items like bread cost trillions of Zimbabwean dollars. Supermarkets couldn’t keep up with price tags, and people had to carry bags of cash just to buy essentials. The government eventually abandoned its currency and allowed foreign currencies like the US dollar to be used instead. This economic collapse led to massive unemployment, widespread poverty, food shortages, and a breakdown in social services. The hyperinflation severely damaged the economy and forced millions to emigrate. It became a warning to other countries about the dangers of poor economic policy and uncontrolled money supply.

Living Standards

GDP per capita
total leisure time enjoyed each year
access to healthcare services
academic levels
access to education
life expectancy
public safety
literacy rates
levels of infrastructure
political stability
prevalence and incidence of diseases
personal freedom, and
environmental quality.

Non Material Living Standards

freedom of speech – such as being able to peacefully protest against the government of the day
free elections – that provide the right to choose and dismiss parliamentary representatives
low levels of crime and discrimination – where citizens can live without fear of constant crime or being treated differently because of factors such as race, disability, sexuality or age
preservation of the environment – allowing citizens to enjoy nature, breathe clean air and drink clean water
adequate leisure time – so that employees have adequate rest periods away from work and time to spend with family.

In Economics as resources are limited this creates the concept of opportunity cost. When we talk about resources, this includes Natural Resources such as Land, Human Resources such as Labour and Financial resources such as Capital ($).

As decisions are made around using resources and the fact that they are limited causes further thoughts as us as Economists.

E.G. If a business spends 10,000 on a project that means that the money they could have invested on their next option is lost.

For example, let’s say you have 10 and you can either buy a book or go to the movies. If you choose to buy the book, the opportunity cost is the enjoyment you would have gotten from going to the movie

It's a way of thinking about trade-offs — every time you make a choice, you're also making a choice to not do something else that could also be valuable.

Opportunity cost helps you consider not just the money or time you spend on something, but also what you're giving up by not choosing another option.

The purpose of accounting is to provide business owners with financial information that will assist them in making decisions about the activities of their firm.

The users of Accounting information include:

the owner
Accounts Receivable
Accounts Payable
banks and other lenders
prospective owners
the government through the Australian Taxation Office (ATO).

Financial data

Raw facts and figures used to create financial information

Financial information

Sorted, classified, and summarised financial data into a more understandable form

• Information that is not expressed in dollars and cents

Develops a more accurate picture of the firm's circumstance

Still important considerations when considering the ‘success’ of the business

Staff turnover
Customer complaints
Followers on social media

The financial decisions that a business makes often have non-financial consequences.

Accounting is increasingly concerned not just with the financial parameters of decision-making but also with its ethical ramifications.

Ethical considerations include the social and environmental consequences of a financial decision.

For example, the choice of photocopier a business considers to purchase is a financial decision but there are ethical ramifications.

Can the toner cartridges be recycled?

As this impacts the environment

Is it Australian-made?

To encourage local employment which impacts society

An Accounting Conceptual Framework sets guidelines on how to complete the accounting process.

More information can be found here.

Account Conceptual Work

Guidelines that help accountants determine:
The accounting processes should be completed using Accounting Assumptions
The qualities of Accounting Financial Information using Qualitative Characteristics

Accounting Consumptions

Accounting assumptions are the generally accepted rules which govern the way Accounting information is recorded and include:

Accounting entity assumption
Going concern assumption
Period assumption
Accrual basis assumption.

Accounting entity assumption

– the assumption that the records of assets, liabilities and business activities of the entity are kept completely separate from those of the owner of the entity as well as from those of other entities.

Going concern assumption

– the assumption that the business will continue to operate in the future, and its records are kept on that basis.

Period assumption

– the assumption that reports are prepared for a particular period of time, such as a month or year, in order to obtain comparability of results.

Accrual basis assumption

– the assumption that revenues are recognised when earned and expenses are recognised when incurred, so profit is calculated as revenue earned in a particular period less expenses incurred in that period.

Qualitative characteristics are the qualities we would like our Accounting reports to possess and include:

Relevance
Faithful representation
Comparability
Verifiability
Timeliness
Understandability.

Relevance – is the information in the report useful for decision-making?

Faithful representation – does the information in the report faithfully represent real-world economic events and is the report free from any bias?

Verifiability – is the information in the report able to be checked by multiple independent observers who would agree that a real-world economic event is faithfully represented?

Comparability – can the reports be compared over time?

Timeliness – is the information available to decision-makers when they need it?

Understandability – is the information presented in an easy-to-understand manner?

In your own words, define ‘inflation’.

Inflation is when the prices of goods and services in the economy go up over time, which means your money doesn’t buy as much as it used to.

Identify the Reserve Bank’s target inflation rate.

The Reserve Bank of Australia (RBA) aims to keep inflation between 2% and 3% on average over time.

Explain how the ABS measures inflation.

The Australian Bureau of Statistics (ABS) measures inflation by tracking the Consumer Price Index (CPI), which is the change in prices of a “basket” of common goods and services like food, transport, and housing over time.

Apply and analyse

Determine which of the following factors may contribute to an increase in inflation caused by strong demand. Explain why or why not.

a. Consumer confidence falls

No. When consumer confidence falls, people are less likely to spend money, reducing demand. Lower demand can actually decrease inflation.

b. Business confidence rises And Their

Yes. Higher business confidence can lead to more investment and hiring, which boosts production and consumer spending. This increase in demand can push prices up, causing inflation.

c. Income tax is increased

No. Higher income taxes reduce the amount of money people have to spend, which lowers demand. This can slow inflation or even reduce it.

Examine Source 6 and describe Australia’s inflation trend from 2015 to 2020.

Between 2015 and 2020, Australia’s inflation rate stayed mostly low and stable, generally within or slightly below the RBA’s target of 2–3%. However, towards 2020, inflation likely dropped due to the COVID-19 pandemic and weaker demand in the economy.

Due the increasing

Explain why people on the aged pension are more likely to be affected by higher inflation rates than employed people.

Aged pensioners have fixed incomes, so when prices rise, they can’t earn more money like employed people might through wage increases. This makes it harder for them to afford essentials, which affects their quality of life more severely.

Research hyperinflation in either Zimbabwe or Venezuela. Write a 200-word paragraph describing how the economy and the people were affected.

Example (Zimbabwe):

In the late 2000s, Zimbabwe experienced one of the worst cases of hyperinflation in history. Prices doubled every day, and at its peak in 2008, inflation reached a rate of 79.6 billion percent per month. The government kept printing money to deal with debt and a collapsing economy, but this only made the problem worse. People lost faith in the local currency, with basic goods like bread and fuel becoming unaffordable. Savings became worthless, and workers were sometimes paid in wheelbarrows full of money. Shops stopped accepting Zimbabwean dollars, and many people turned to using US dollars or South African rand instead. Businesses closed, unemployment rose sharply, and millions of people fled the country in search of work and food. The crisis had devastating effects on health, education, and living standards. Eventually, Zimbabwe abandoned its currency in 2009 and began using foreign currencies to stabilise the economy. Hyperinflation caused immense suffering and destroyed trust in the government and financial system.