Economics Flashcards

1
Q

What is a consumer?

A

A person who purchases goods and services for personal use

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2
Q

What is a producer?

A

A business which creates and supplies goods and services

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3
Q

What is the role of the government?

A

To set the rules for operation and balance the needs of the consumers and producers

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4
Q

What is a land resource?

A

A natural resource, materials or substances occurring in nature which can be exploited for economic gain

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5
Q

What is a labour resource?

A

A human resource, the people who make up the workforce of a business or organisation

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6
Q

What is a capital resource?

A

A manufactured resource, products made from a raw material by hand or machine

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7
Q

What is gross domestic product?

A

The total dollar value of all goods and services produced by a country, referred to as size of the economy?

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8
Q

Why is access to resources important for a country?

A

Resources can be used to created goods and services, which can be used for trade and building a stronger economy

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9
Q

What is a country’s workforce?

A

The total number of people who are physically able to do a job and are available for work

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10
Q

Why is a country’s workforce important?

A

They are relied upon to produce goods and services

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11
Q

What is a need?

A

Something that is necessary to live a healthy life, such as food, water or shelter

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12
Q

What is a want?

A

A desire for something, usually to satisfy a need, such as toys, games or designer clothes

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13
Q

What are wants that people desire?

A

Unlimited, because people are greedy and always want more, leading to relative scarcity

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14
Q

What is relative scarcity?

A

The fact that we do not have enough resources to satisfy all our needs and wants

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15
Q

What is opportunity cost?

A

The loss of one alternative when another alternative is chosen

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16
Q

What is an example of opportunity cost?

A

When you spend time and money watching a movie, you cannot spend that time watching footy and that money on dinner

17
Q

What is production possibility curve?

A

A graph that measures the maximum output of two goods using a fixed amount of input

18
Q

How does a consumer win?

A

By lowering the prices of goods and services a producer is providing

19
Q

How does a producer win?

A

By maximising its profits for owners and stakeholders

20
Q

How do consumers and producers rely on each other?

A

Consumers rely on producers to supply goods and services and producers rely on consumers to buy products so they can make a profit

21
Q

What is primary production?

A

An industry that extracts raw materials directly from the earth or sea, such as fishing or farming

22
Q

What is secondary production?

A

An industry that processes and manufactures products from raw materials, such as food processing and energy production

23
Q

What is tertiary production?

A

An industry that provides a service to customers, such as schools and restaurants

24
Q

What are goods?

A

Physical objects such as food and clothing

25
Q

What are services?

A

The act of performing work for others such as painting or washing

26
Q

What is gross domestic product per capita?

A

A measure of a country’s economic output, dividing the country’s GDP by total population