ECB- Competing as a business in the global economy

A ___________is a situation where the organised exchange of goods and services take place between buyers and sellers.

• shopping centre

• market

• goods

• services

The _________________system of a country is used to answer the three important economic questions: What to produce; how to produce; and for whom to produce?

• business

• goods

• economic

• services

Australia’s economy is largely a __________________economy.

• market

• combined

• traditional

• independant

The three economic questions are answered by the market through the laws of ___________________and ___________________.

• goods, services

• supply, demand

• traditional, market

Resources are only used to make things that people will buy and are ______________________

• profitable

• scarce

• infinite

Australians households provide economic resources to businesses in the form of the factors of production — land, labour, capital and enterprise. Businesses provide goods and services to households. This is known as output or production.

What is this model called?

• GDP process

• The Circular Flow of Income

• How Government works

The government sector takes a portion of people’s incomes in the form of taxation (T), which represents a _________________from the circular flow.

• injection

• leakage

• goods and services

Competitive advantage is an attribute that a business aims to create and maintain in order to distinguish itself from the competition in the market.

• True

• False

Cost leadership strategies involve actions by

businesses aimed at ____________________________

• lowering staff injuries

• lowering production costs

• lowering advertising incentives

Differentiation means developing and marketing goods

and / or services to customers that _________________________________

• Are in competition

• Produce quality goods

• Differ from business rivals