chapter 3 economics Flashcards
definition producer
an individual or buisness that makes,grows or supplies goods and services.
definition consumer
a person that uses income to buy goods and services to satisfy their needs and wants.
definition consumer sovereignighty
the situation in the economy where the needs and wants of consumers control what is produced. consumer sovernighnty also means that the consumer reigns sumpreme in the producer consumer relationship.
needs are
-water
-food
-shelter
and we need them inn order to survive
wants are
- unlimited
- competitive
- they can be staisfied
- they are complementry( meaning leading to other wants like for example going to the cinema to watch a movie you know you’ll be hungry so you buy popcorn though you know you’ll also need a drink to wash it down. )
definition interdependent
describing the way consumers, workers, businesses and governments are connected to each other and rely on each other.
An example could be how consumers rely on producers to produce goods and services and producers rely on consumers to buy their goods and services so that they can make an income.
define fair trade
trade in which fair prices are paid to producers in deveoping countries to help reduce poverty.
how much of cocoa in west africa is produced by small families
90%
how did fair trade chocolate first start out like
Initially fair trade chocolate was only sold by small specialised firms and consumershad to pay relatively high prices.
how did consumers help make majority of the chocolate in australia sold fair trade certified
as consumer interest grew in fairtrade products many firms found it worthwhile to join fairtrade.
how many litres of water does it take to fill up a one litre water bottle
2 litres
the 4 resources firms use to make goods and services
Land-resources from the natural environment, including plants and animals
labour- the resource provided when people do work - physical and mental
enterprise- the resource provided by people who organise fund or magage production
capital- human- made resources such as tools, vehicles,machinery and building
what profit strategy do firms use
cost plus pricing strategy
why is collusive behaviour illegal
It’s when firms come together to decide a price ,which ends up being a high price. which is unfair to the customers since all the prices are the same. companies can be fined
why would someone ask to have their coffee in a keep cup
since people like to use keep cups to keep non- reusable cups out of landfill.
