SOSE Exam Study

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  1. Definitions
    Define "primary needs"
    Primary needs are basic requirements for survival. These include food, water, shelter and clothes.
  2. Definitions
    Define "secondary needs"
    Secondary needs, or wants, are things that we want in order to make life easier or more pleasurable, but they are not absolute necessities.
  3. Definitions
    Define "budget"
    A budget is a plan that lists expected income and expenditure or a given time, usually made with a view to controlling and making best use of limited finance.
  4. Definitions
    Define "expenditure"
    Expenditure is money outlaid to procure goods or services.
  5. Definitions
    Define "fixed expenses"
    Fixed expenses are any expenses that do not change from period to period such as loan payments.
  6. Definitions
    Define "variable expenses"
    Variable expenses are costs that change in proportion to the activity of a business.
  7. Definitions
    Define "income"
    Income is money received on a regular basis for work or through investments.

  8. Definitions
    Define "entrepreneur"
    An entrepreneur is a person who organizes and operates a business or businesses, taking on financial risk to do so.
  9. Definitions
    Define "import"
    To import is to bring goods or services into a country from abroad for sale.
  10. Definitions
    Define "export"
    To export is to send goods or services to another country for sale.
  11. Why is an income an essential part of our economy?
    Incomes are important so that people can purchase their needs and wants.

  12. What is the difference between needs and wants?
    A need is something that you cannot survive without whereas a want is something you buy to make life more pleasurable and is not vital for survival.
  13. What are 3 reasons why it is important to work?
    • 1. To earn an income
    • 2. To provide needs
    • 3. Using skills in a positive way
    • 4. Meeting and mixing with new people
    • 5. Doing something you love and are passionate about
    • 6. Increasing your self esteem and confidence
    • 7. To develop natural strengths and talents

  14. Why does a person receive pocket money?
    Sometimes pocket money is received for doing household chores around the house. It is given by parents or guardians.
  15. Why would a person under the age of 15 not be able to receive a job?
    • A person under the age of 15 may not be eligible to get a job because there are strict rules that apply such as:
    • They cannot serve alcohol
    • They cannot operate heavy machinery
    • Jobs they could do would be:
    • Paper rounds
    • Working at a supermarket checkout
  16. Describe the characteristics of entrepreneurs
    • An entrepreneur is someone who is prepared to take financial risks. They are:
    • Creative
    • Independent
    • High energy
    • They learn from failures
    • Competitive
    • They are willing to work long hours
    • They have an eye for opportunity
    • Self-confident
    • Enjoy being in charge
    • Willing to take risks
  17. Why would it be an advantage to combine work and study?
    It would be an advantage to combine work and study as you would be earning an income and also bettering your knowledge for a future career.

  18. What is the difference between a wage and a salary?
    • Salary: A fixed regular payment typically monthly
    • Wage: A fixed regular payment typically weekly

  19. Why would someone receive overtime?
    If you work more than your allocated hours.

  20. Who is a shareholder and why would they receive a dividend?
    A shareholder is someone who owns part of a company. They receive a dividend when their company receives an income.
  21. Who would receive an income from welfare payments?
    • Disabled people
    • People who don't receive an income
    • Elderly
  22. How would a real estate agent or a car sales person receive an income?
    • Real estate agents: get an income when they sell a house. They don't receive a fixed income and usually get around 5 or 6% of what their sale house sold for.
    • Car sales person: get an income when they sell a car. They don't receive a fixed income and usually get around 20-25% of what their sale car sold for.
  23. What is the purpose of taxation?
    To raise money for services the government provide.

  24. Definitions
    Define "royalties"
    Musicians, artists and writers earn their income from royalties when their pieces are bought.
  25. Definitions
    Define "rent"
    A tenants regular payment for use of a landlords property or land.
  26. Definitions
    Define "profit"
    A financial gain or the difference between the amount spent and earned.
  27. Definitions
    Define "fee"
    A payment made for professional advice or service.

  28. Definitions
    Define "superannuation"
    A regular fund paid out of an income going towards ones pension.
  29. Definitions
    Define "GST"
    (Goods and Services Tax) A broad sales tax of 10% on most goods and services in Australia.
  30. Definitions
    Define "PAYG"
    (Pay As You Go) Income tax for salary and wage earners that is deducted by the organisation each payroll and paid to the Australian Tax Office.
  31. Definitions
    Define "utilities"
    The state of being useful, profitable or beneficial.
  32. What is the purpose of creating a budget?
    To lay out what you will spend money on and how much you will earn and to keep track of where your money is.
  33. Discuss what advice you would give to someone who would like to save money for an expensive item.
    I would say that they need to save half of their income for the item and use the rest for primary needs.
  34. Describe reasons for saving money.
    • For buying needs
    • For buying wants 
    • Saving for later use
  35. Describe how impulse buying can affect a person's budget.
    • Impulse buying will affect a budget because impulse buying means buying on the spot and a budget is a pre-planned way of using your money.
  36. Describe why it is important for a budget to be not too restrictive.
    • Just in case you decide to impulse buy or if something happens in your life and you have to change things around.
  37. What are the steps of responsible financial management?
    Consider whether or not you are satisfied with your financial position - you may have to cut back on spending.
  38. Outline the consequences for poor financial management.
    You may end up in dept or may go broke.
  39. Definition
    Define "default notice"
    In finance, default occurs when a debtor has not met his or her legal obligations according to the debt contract.

  40. Definition
    Define "credit bureau"
    A company that collects the credit ratings of individuals and makes them available to credit card companies, financial institutions, etc.
  41. Definition
    Define "repossession"
    The action of regaining possession of something.
  42. Definition
    Define "mortgagor"
    The borrower in a mortgage, typically a homeowner.

  43. Definition
    Define "mortgagee"
    The lender in a mortgage, typically a bank.
  44. Definition
    Define "mortgage"
    The charging of real (or personal) property by a debtor to a creditor as security for a debt.

  45. Definition
    Define "debtor"
    A person or institution that owes a sum of money.
  46. Definition
    Define "bankrupt"
    A person judged by a court whose property is taken and disposed of for the benefit of creditors.
  47. Definition
    Define "creditor"
    A person or company to whom money is owed.

  48. What are the eight options available to a period that cannot repay a loan?
    • 1. Pay the amount owed
    • 2. Negotiate a change in your repayments
    • 3. Apply for a hardship variation
    • 4. Refinance the loan
    • 5. Negotiate a postponement of repossession
    • 6. Sell your goods and repay the loan
    • 7. Voluntary surrender
    • 8. Apply for bankruptcy
Card Set:
SOSE Exam Study
2013-06-11 13:25:17
Society Environment

Semester 1, Year 9, SOSE Study and Revision
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