Questions and Answers
What does the term 'target market' refer to?
Market forces increase prices when supply rises and demand declines.
False
What characterizes an expansion in the business cycle?
What act provides consumer protection in Australia?
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The agency responsible for implementing consumer protection under the CCA is the _______.
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A recession is defined as a period of weak or negative growth.
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What is the term used for the low point of the economic cycle?
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Match the following terms with their definitions:
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The _____ market is concerned with the buying and selling of shares of companies.
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What happens to share prices when more people buy shares?
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Match the following phases of the business cycle with their descriptions:
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Unsolicited consumer agreements are covered under the Competition and Consumer Act 2010.
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What is a financial market primarily used for?
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Name one negative impact of technology on businesses.
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What happens to supply when the price of a product increases?
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A shift to the left on the supply curve indicates an increase in supply.
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What is market equilibrium?
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The quantity of a good or service that consumers are willing to purchase at a given price is known as __________.
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Match the following terms related to the price mechanism:
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What would cause an outward shift of the supply curve?
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A contraction in supply occurs when there is an increase in the price of the good itself.
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Explain the relationship between price and supply in the context of the law of supply.
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An __________ in supply occurs when external factors affect the supply of the good rather than its price.
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What effect does improved climatic conditions have on supply?
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Study Notes
Entrepreneurship and Innovation Types
- Drivers focus on solutions they perceive as superior to others.
- Explorers are intrigued by unresolved complex problems.
- Crusaders are mission-driven, prioritizing purpose over business solutions.
- Captains capitalize on unexpected opportunities.
Key Concepts in Business
- Entrepreneurship: A process undertaken to solve work challenges or achieve social objectives; an entrepreneur assumes financial risks for potential profits.
- Innovation: Involves implementing changes to established methods, ideas, or products.
- Corporate Social Responsibility (CSR): Corporations bear responsibility for their economic, social, and environmental impacts.
- Ethical Decision Making: Evaluating and selecting alternatives consistent with ethical values.
Circular Flow of Income
- Displays the link between consumers and businesses, illustrating financial exchanges within the economy.
- Examples include Harry buying prepackaged goods, like five green olives.
- Incorporates elements such as imports, taxation, savings, exports, investment, and government expenditure.
Business Cycle Overview
- The business cycle indicates periodic fluctuations in economic activity.
- Boom: Characterized by high employment, consumer spending, and economic growth.
- Recession: A downturn where consumer spending decreases, leading to higher unemployment and reduced wages.
- Economic Downturn: Businesses fail, investment drops, and consumption diminishes, increasing reliance on social welfare.
- Expansion: Economic recovery marked by increased consumer spending, falling unemployment, and rising wages.
Price Mechanism
Demand
- Demand refers to the quantity of a good or service consumers are willing to buy at a specific price.
Supply
- Supply consists of the quantity firms are willing to sell at different price levels.
- Law of Supply: Rising product prices lead to an increase in supply.
- Supply Curve: Generally upward sloping, reflecting lower supply at lower prices.
- Shifts in Supply Curve: Changes can occur due to factors other than price, affecting quantity and pricing dynamics.
Market Equilibrium
- Represents the point where supply equals demand, shown by the intersection of the demand and supply curves.
- Price equilibrium: The price at which quantity supplied equals quantity demanded.
Market Types
- Retail Markets: Outlets for goods and services (e.g., supermarkets).
- Labour Markets: Interact between supply (employees) and demand (employers).
- Financial Markets: Platforms for trading financial instruments like bonds and equities.
- Stock Markets: Focus on buying and selling shares, impacted by investor demand.
Government Intervention
- Governed by the Competition and Consumer Act 2010 (CCA) which protects consumer rights, including issues like unfair contracts and product safety, enforced by the Australian Competition and Consumer Commission (ACCC).
Impact of Technology
- Negative aspects affecting business, economy, and society:
- Business: Cybersecurity threats, privacy issues, job loss, decreased cohesion, and productivity challenges.
- Economy: Job displacement, income inequality, privacy concerns, and market concentration.
- Society: Social isolation, mental health issues, attention span reduction, and pervasive ethical dilemmas.
Summary of Entrepreneurship and Innovation
- Embodies a fusion of creativity, risk-taking, and the drive to solve problems while addressing market needs and societal challenges.
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Description
Explore the different types of entrepreneurs, including Drivers, Explorers, Crusaders, and Captains. This quiz will help you understand the unique characteristics and motivations that define each entrepreneurial type. Test your knowledge and see how well you comprehend the essence of entrepreneurship!
