Economics Flashcards
Scarcity
Demand is high & supply is low
Demand
Amount of particular G or S that consumers willing to buy/ want at a given time
Competition occur:
Between sellers in marketplace to get consumers money
Supply
Amount of product available to be purchased
Resources
G&S used to meet need & wants
Land, labour, capital & enterprise…
Combined to produce G&S for consumption
Relationship between supply and demand?
Both relate & depend on the amount of goods available. If demand is at a certain level then supply will meet it. If demand is high, price rises. Demand is low, prices drop
How does scarcity affect marketplace
If something is scarce & there’s a high demand, consumers willing to pay ^
Consumerism
Using resources, consuming, practice of consumption of goods
5 diff areas within a marketplace
Competition between buyers & sellers- buyers compete with sellers for money in their pocket- they do this by advertising, lighting, music & shelving
Sellers & sellers: business compete between each other for retail dollar- strategies = sales, location
Price: supply & demand dictated by buyers
Convenience: shoppers go where it’s most convenient
Marketing: average consumer exposed to an average 500 marketing strategies each day
Ethical consumer
Consider > just their own wants. Makes choices that have the greatest + global effect
Environmentally: trees, ethical treatment of animals, carbon footprint
Socially: childhood labour/ slavery
Competition will usually
Increase supply
What is said to ^ when workers make more of a given product today than they made during the same time in past
Productivity
When there’s not enough resources to satisfy human wants
Scarcity
In a monopoly
There’s only one seller
Market equilibrium is achieved
At a price which quantity demanded equals quantity supplied
Problem of scarcity caused by
Unlimited wants & limited resources
Ethical consumerism
Eg: buying products which are fair trade(companies that produce products in an ethical manner), recyclable or good 4 environment. Ethical consumers think more than jus own wants - make choices that have great & global affect. Being ethical when consuming
Why some manufactures may choose to use unethical practices:
- to achieve max profit
- cheapest labour & option
- low attention paid to problems eg: workplace safety & labour rights
- benefits company
- only place/way that they can continue making money & run business
Opportunity cost
Choosing something over another or what you miss out on. If had choice between building school & factory & I chose school. The opportunity cost = not building factory & the benefits that could’ve been achieve from it.
Shortage
When demand is ^ but not enough supplied
Effects a surplus has on price & why
Surplus reduces price of good coz there’s too much of product that was demand and so the retailer wants to get rid of the surplus
At price has equilibrium price been met & why
Price where quantity demanded equals quantity supplied so that both producers & consumers are happy. Products don’t have surplus or a shortage & made biggest profit possible
Renewable resource
Source of E that’s not depleted by use
What influence consumer to buy
Advertising, scales, competitions, use of celebs, adjectives, shelving, convenience, spruikers
Renewable resource
Source of E that’s not depleted by use
Primary production
Includes all business in which production is directly associated with natural resources
Eg: farming, mining, fishing, grazing & forestry
Tertiary Production
Businesses provide a service
Eg: retailers, dentists, solicitors, banks & museums
Quaternary production (under tertiary)
Services that involve transfer & processing of info & knowledge
Eg: telecommunications, computing, finance & education
Quinary production
Services that’ve traditionally been performed in home.
Eg: hospitality, tourism, child care, craft-based activities
Demand for quinary services ^ coz of social & lifestyle changes & increase in 2-income households
Supply & demand
Producers need to know what optimum amount of product needs to be supplied to meet demand & make biggest profit
Stock Market
Global financial platform for investing in companies.
- investing in companies for hope to get profit
Share
Portion of company that can be sold or bought
Secondary production
Business that take output of business in Primary sector & process it into finished or semi-finished product.
Eg: steel (Fe) & car manufacturers
