Commerce Exam 1 Flashcards
Consumer
Someone who purchases good or services to satisfy needs or wants
Goods
Items that you can see or touch (tangible)
Services
Things done for you by others
Needs
Things that are necessary and essential such as water
Wants
Things that are not essential but we would like to have
Money
Any token that people accept as payment in exchange for a good or service
Price
The amount of money the consumer is prepared to offer in exchange for a good or service
Profit
Remains after all business expenses deducted after sale revenue
Barter
The swapping of one good or another
Collective wants
The desire of a community to have certain goods or services such as having schools, parks, etc.
Personal wants
Wants which are only demanded by one person
Durable goods
Goods that have a long lifespan and do not need to be frequently replaced
Non-durable goods
Goods that need are purchased frequently and have a short lifespan. They are less expensive
Substitute
A good that is alternative for another good eg. butter and jam
Complementary goods
Goods that generally go well with other goods eg. milk and cereal
Gross income
Total income
Garnish
To take money out of your bank account to pay for debts
Creditor
Someone you owe money to
Writ of execution
A court order that allows an official to take part or all of you property
Cash
Money in coins or notes
Credit
Money loaned and money has to be payed back before a set date or there will be extra fees
Direct Debit
Give a company permission to take money from your bank account on an agreed date
Lay-by
A service that allows you to purchase goods when you do not have the money to pay upfront
Electronic transfer
EFTPOS (electronic funds transfer at point of sale)
Opportunity cost
When you purchase something and you lose the opportunity to purchase something else as you have no more money
4 factors of production
Capital, Land, Labour, Enterprise
Tangible and non-tangible
Can be touched and incapable of being touched
Resource
Something that can be used and can be a good or service
Supply
Something you cam give to others
Demand
When something is wanted and can be worth a high value
Impulse Buying
When you purchase something in the moment later realising that there is no use of it
