Economics Flashcards
What are a person’s wants an needs?
Wants are things we desire but are not necessary for survival or meeting the basic standards of living in a community. Needs are things that are required for basic human survival in a community.
What is the difference between goods and services?
Goods are physical items that can be seen and touched.
Services are the actions done for you by others to satisfy your needs and wants.
What does distribution involve?
Having the goods and services supplied to locations that are convenient to the consumer.
What does a market refer to?
The relationship between buyers and sellers, rather than any physical location.
What are all the sectors in the economy?
Household, business, financial, government and overseas.
What is the household sector?
The total of all consumers in the economy.
What is the business sector?
The total of all producers in an economy.
What is the financial sector?
It involves financial intermediaries such as banks, who manage money for producers and consumers.
What is the government sector?
Involves all three levels of government who collect rates and taxes for infrastructure development and welfare services.
What is the overseas sector?
Involves all importing and exporting between different countries.
How is Australia an open economy?
Australian businesses export goods and services to other countries; as well as consumers buy products that were manufactured in different countries and imported into Australia.
What are awards?
When people are paid wages above the set minimum.
What is a dividend?
An amount of money paid to shareholders resulting from company profit.
What is a disposable income?
The amount of money from a person’s income available for spending on goods after all taxes are paid.
What are some key questions that are involved in production?
What is to be produced, how it will be provided, and to whom is it sold to.
