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Humanities Revision (Different types of markets (Retail markets (Markets…
Humanities Revision
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The Functions Of Money
Money allows us to exchange goods and services using a common means of exchange we all accept. Employees exchange their labor for money, and all businesses accept money in exchange for the goods and services they supply.
We use money to put a price on the goods and services we exchange. The price is a measure of what we believe the goods or services to be worth, when compared with other goods and services.
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- Standard of deferred payments
Using money allows us to purchase goods and services on credit, with both buyer and seller knowing how much has to be paid at a later date.
Business practices that are prohibitedby the competition and consumer Act that are regulated by the ACCC
Price Fixing
It is illegal for two businesses in competition with each other to agree to set identical prices for their
products.
Predatory pricing
When businesses mark their prices extrmely low and continues to do so until their competing business is run out of business.
Exclusive dealing
Exclusive dealing involves one business trading with another while imposing restrictions on that other
business’s freedom to deal with its competitors
Mergers and take-overs
When two or more businesses decide to join together, this is known as a merger. When one business
decides to buy out a competitor, this is known as a take-over or an acquisition. Sometimes a merger or takeover in a particular market may lead to reduced competition in that market.
Supply and demand
Surplus is when there isn't much demand but there is a tremendous amount of supply provided. In this situation, in can become incredibly hard for producers to sell all there supply.
Shortage is when there is a good amount of demand but not much supply. in this situation some consumers may not receive an item they had wished to purchase earlier.
Sometimes. when there is a shortage in supply, The prices can go up dramatically as not much people can receive what they want.
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aside some of their income as savings. This money is usually deposited in a bank or similar financial
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Entrepuneurs
Entrepreneurs are people who create new products or build on existing products and create a business out of them.
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Target Market -
In order to have a successul business, Managers need to be able to think of the most suitable target consumer. For instance an add for baby food will not be aimed at teenagers and the launch of the latest technology will not be aimed at Babies.
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The Australian Consumer Law makes it clear that sellers are expected to advertise and promote their
products honestly. It is illegal to do anything that might mislead the customer, or trick them into buying something they might not have bought if they had known all the facts
- Misleading or deceptive conduct — Advertisements must not use words that make claims about a product that are not true. This includes claims about low prices, or goods being ‘on special’.
- Unconscionable conduct — This is any business conduct that is unfair or unreasonable.
- Offering gifts and prizes in connection with the supply of goods and services and then not providing them.
- Conduct that may mislead the public — for example, using a brand name similar to a well-known brand, or using an Australian-made logo when the product was made overseas.
5. Bait advertising — This refers to a business attempting to attract customers by advertising some products at lower prices, but stocking very few of those products. When the advertised products quickly run out, customers are then directed to higher priced items.
- Referral selling — This occurs when a business offers a customer a special deal or special price if the customer refers other potential customers to the seller and those customers make a purchase.
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The total of all consumers in the economy is sometimes called the household sector. The total of all producers is sometimes known as the business sector.