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Subjects > BUSINESS: Economics - Term 1 > Flashcards

BUSINESS: Economics - Term 1 Flashcards

1
Q

What are GOODS?

A

physical items

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2
Q

What are SERVICES

A

jobs or tasks we pay others to perform for us

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3
Q

complementary wants example:

A

bread and butter
shoes and socks
milo and milk

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4
Q

Wants are essential?

A

No - they are things we desire in order to live our lives

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5
Q

Needs are essential?

A

Yes - they are items essential for everyday survival (eg: water, food, shelter, healthcare, clothing)

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6
Q

What is the ECONOMIC PROBLEM?

A

scarcity (limited amount of resources) vs unlimited needs & wants

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7
Q

What is the solution to the ECONOMIC PROBLEM?

A

satisfy wants & needs which varies for each group

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8
Q

What is OPPORTUNITY COST?

A

what you give up when you choose to use your economic resources in a particular way
= value of opportunity lost (next best alternative)

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9
Q

What is another word for OPPORTUNITY COST?

A

next best alternative

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10
Q

Pure market is controlled by:

A

business and consumer

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11
Q

Controlled market is controlled by:

A

entirely government

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12
Q

Mixed market is controlled by:

A

Government, business and consumer (all work together)

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13
Q

High price = ____ demand

A

low

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14
Q

Low price = ____ demand

A

high

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15
Q

Supply line benefits _____

A

producers

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16
Q

Demand line impacts _____

A

consumers

17
Q

What is the EQUILIBRIUM

A

where supply and demand meet to determine price

Market price

agreement between producers and consumers

18
Q

5 main factors affecting DEMAND (5 shifters of demand)

A
  1. tastes/preferences
  2. number of consumers
  3. price of complementary/related goods
  4. income
  5. expectations
19
Q

5 main factors affecting DEMAND (5 shifters of demand)

A
  1. tastes/preferences
  2. number of consumers
  3. price of complementary/related goods
  4. income
  5. expectations
20
Q

5 main factors affecting SUPPLY (5 shifters of supply)

A
  1. price of resources
  2. number of producers (competition)
  3. technology
  4. tax and subsides
  5. expectations
21
Q

5 main factors affecting SUPPLY (5 shifters of supply)

A
  1. price of resources
  2. number of producers (competition)
  3. technology
  4. tax and subsides
  5. expectations
22
Q

what does a Cost Benefit Analysis (CBA) do?

A

Compares the positive benefits of a project, policy or decision with the negative aspects or costs associated with the same project or activity.

Helps individuals, businesses and governments to choose the next best alternative (opportunity cost) to achieve maximum satisfaction of their needs and wants.
[ helps reduce the mistakes that could possibly be made ]

23
Q

what does CBA look at?

A

environmental, social and financial

Benefits - what does it satisfy? what are the benefits of this decision

Costs - what is the downside?

Opportunity cost - what is the next best alternative? what could have been done with that money/space instead?

24
Q

Decrease in demand - line shifts to the _________

A

Left

25
Q

Increase in demand - line shifts to the ______

A

right

26
Q

decrease in supply - line shifts to the _____

A

left / higher

27
Q

increase in supply - line shifts to the _____

A

right / lower

28
Q

what are the 4 types of resources

A

land, labor, capital, enterprise

29
Q

for resources to be available they must have these 5 characteristics:

A
  1. limited
  2. known about
  3. accessible
  4. useful in production
  5. able to satisfy wants
30
Q

what is the producers motive?

A

to get a profit and make as much money as possible

31
Q

what is the consumers motive?

A

to satisfy their wants for the cheapest price they can

32
Q

what is an example of each type of resource?
(land, labor, capital, enterprise)

A

land = water
labor = cutting a tree
capital = tools and machinery
enterprise = CEO of a business

33
Q

what is land (resource)?

A

land includes all natural materials or resources used in the production of goods and services

34
Q

what is labor (resource)?

A

the effort used in the production of goods and services (eg: cutting a tree)

35
Q

what is capital (resource)?

A

included resources made by labor to assist in the production of goods and services (eg: machinery/tool (hammer) )

36
Q

what is enterprise (resource)?

A

the act of brining together the factors or production in order to produce goods and services

37
Q

DEFINE economics?

A

predicts and studies human and group activity to predict future trends.

involves decision making based on available resources

goal is to achieve satisfaction (resolution) which varies for each group

38
Q

MICRO groups = ______

A

individuals & households

39
Q

MACRO groups = ________

A

government & global

Subjects (2 decks)

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