Economics & Business Flashcards
Needs and wants, what’s the difference?
Needs - something that someone requires to require
Wants - simply something that people desire to have and may or may not be able to obtain
Natural resources
resources that exist without actions of humankind
Labour resources
or human resources consists of human effort provided in the creation of products
Capital resources
Capital consists of human-made goods or means of production (machinery, buildings, and other infrastructure) used in the production of other goods and services
Traditional or subsistence economy
Producers are self-efficient, producing to survive rather than making a profit
Market capitalist economy
Marketers exchange goods and services with consumers in exchange for money
Planned capitalist economy
Individuals own the productive resources but the government determines what/how/who to produce it for
Market socialist economy
Productive resources are mainly owned by the government on behalf of the people of the country
Planned socialist economy
The government determines what to produce, how to produce and who to produce it for
Saving vs buying on credit - advantages, disadvantages?
Saving (adv) - can save you even more money. (Dis) companies can charge you interest
Buying (adv) can build your credit rating and earn reward points. (Dis) credit card fraud, credit card surcharges
What are the different participants in the Australian economy
Consumers, producers, financial institutions
How can the value of currency influence its exports and imports?
A weaker domestic currency stimulates exports and makes imports more expensive
How can trade with other countries influence our economy
Develop relationships, create more jobs, local income
