What is the Five Sector Circular Flow Model and what are the symbols associated with each part of it?
Shows the connections between different sectors of our economy.
Income = Y
Consumption = C
Savings = S
Investment = I
Taxation = T
Gov. Expenditure = G
Imports = M
Exports = X
What are the four phases of the business cycle?
- Expansion - increase in production, decrease in unemployment, increase in wages, increase in consumer spending.
- Peak - height of economic activity
- Contraction - Decrease in production, increase in unemployment, decrease in wages, decrease in consumer spending
- Trough - lowest point of economic activity
What is demand, supply and equilibrium?
Demand - Refers to how much of an item is needed/wanted
Supply - Refers to how much of an item there is to buy
Equilibrium - Quantity demanded is equal to quantity supplied.
What are the types of business structure?
Sole trader - One person operates
Partnership - 2 or more people operate
Trust - obligation placed on people to hold income for beneficaries
Company:
PUBLIC - listed on the ASX
PRIVATE - Not on ASX, privately owned.
Different types of business are?
Online - operated online
On-demand - used when needed (uber)
Micro, small, medium and large - dependant on employee counts
Global - operates internationally
Offshore - Operates/manufactures in other countries
Government - Operated by Gov.
Not for Profit - Charities usually
Why do people work?
Earn an income
Add to super
make friends
ability to buy needs and wants
being part of a team
increasing self esteem
Types of employment
Full-time - Ongoing, 38 hours or more
Part-time - less than 38 hours, ongoing, hours may be fixed/week
Casual - employed as needed, hours vary, no permanent roster
Self employed - Works for themself
What are the 3 types, and 2 subtypes of industry?
- Primary - Production associated with natural resources
- Secondary - Take items from primary and process into (semi) or finished items.
- Tertiary - Provide services
3a. Quarternary: Transfer and processing of information
3b. Qiunary: Services performed in the home
What are the three types of Employment Contract?
- Awards: set minimum pays and conditions for employees across Australia
- Enterprise Agreements: Employees negotiate pay and other conditions with the employer instead of taking the award for their profession.
- Common Law Contract: Pay and other conditions are freely negotiated, no award to stick to.
What is Tax?
Tax is money collected by the government from things like income, selling of shares, buying luxury cars, selling property (not your house though)
What is Superannuation?
Superannuation (super) is a retirement fund mandatory to all people in Australia. It is the money you live off after retirement and before accessing a government pension.
What are the five steps for resolving workplace disputes?
- Grievance procedure: A formal complaint to a manager
- Negotiation: Involved parties attempt to reach a resolution by discussing the issue.
- Mediation: A third party sits in on negotiations to reach an acceptable solution.
- Conciliation: Fair Work Commission acts as the mediator, trying to reach acceptable solution.
- Arbitration: Fair Work Commission makes a legally binding decision that both parties must follow.
What are the four ways to assess the performance of an economy?
- Standard of Living: Cost of living
- Economic Growth: GDP growth
- Income Distribution: Highest and lowest income earners average wages.
- Environmental Sustainability: Spending on the environment/growth from natural resources and mining
Causes of Inequality are?
- Unemployment/underemployment
- Inflation/poor currency values
- Capitalism economic system
- Increases in the cost of production
- Technology taking jobs
What is Government Macroeconomics?
What does it involve?
Looks at the total demand for goods/services in an economy.
Involves:
- National spending
- National output
- National income
- Employment
- Living standards
What is Government Microeconomics?
What does it involve?
Looks at the operation of particular businesses, industries, markets, sector of the economy.
Involves:
- Trade liberalisation - Removal of restriction on trade
- Labour market reform - Reduction of labour costs
- Market deregulation - Removal of government intervention in industry.
What is a surplus and deficit budget
Surplus: Income is greater than expenditure
Deficit: Income is less than expenditure
What is a tariff?
A tariff is a tax imposed on the goods and services coming from another country
What is inflation?
Inflation is the increase in the level of prices of the goods/services that households buy.
Define Law
The system of rules that a country recognises as a regulation of the actions of its members.
Define Morals
The categorisation of decisions/laws/actions into rights and wrongs.
Define Ethics
Ethics aims to answer what you should do. They serve as a reference point for our morals.
What are the four reasons for the law?
- Establish boundaries
- Protection
- Freedom
- Resolve disputes
What is Australia’s age of criminal liability?
10 years old
