exams Flashcards
(44 cards)
What is relative scarcity
Do not have enough resources to satisfy all our wants and needs, scarcity in economics: everything is relative
What is opportunity cost
refers to the benefit that was lost due to an individual taking a different course of action. The benefit a person could have received
What is consumer sovereignty
The situation in an economy, where the desires and needs of consumers control the output of producers
What are needs and wants
Needs are goods or services that are required (for example food, water, shelter)
Goods are goods or services that are not necessary but we desire or wish for (for example expensive car/ house, newest clothes
What is the private sector
Composed of organisations that are privately owned or operated, and not part of the government. Usually include corporations partnerships.
What is the public sector
Composed of organisations that are owned and operated by the government. Includes federal, state or municipal governments.
What is a market
Medium that allows buyers and sellers of a specific good or service to interact in order to facilitate an exchange.
What is corporate social responsibility
A corporations initiatives to assess and take responsibly for a company effects on environmental and social wellbeing.
What are economic resources
Goods or services available to individuals and businesses used to produce valuable consumer products. Includes land, labor and capital.
What is oversupply
An excessive amount of goods or other substance. Oversupply results when demand is lower than supply.
What is shortage
A situation in which demand for a good or service exceeds available supply.
What is equilibrium
A state where economic forces such as supply and demand are balanced
What are substitutes
Is a product or service that a consumer sees as the same or similar to another product
What are complements
a good or service that is used in conjunction with another good or service
What are factors that affect supply and demand?
Change in price Tax decrease Decrease in cost of production Fall in demand Weather Shifts in supply curve
What is a sole proprietor
A person is the exclusive owner of a business, entitled to keep all profits after tax has been paid, but liable for all losses; a sole trader.
What is a partnership
An arrangement in which two or more individuals share the profits and liabilities of a business venture.
What is a private limited company
Companies which are owned by small, private groups of people or entities (founders, management, private investors). They offer limited liability for its shareholders but places certain restrictions on its ownership.
What is a public listed company
Corporations which ownership is dispersed among the general pubic in many shares of stock which are freely traded on a stock exchange or over counter markets.
What are the three economic questions ?
What to produce - concerned with how we allocate resources.
How to produce - what combination of resources will be used.
For whom to produce - concerned with how the goods are allocated/distributed.
What is a court hierarchy
The court is structured where different levels or bodies are ranked or ordered, depending on their importance.
Examples of Court hierarchy
High court of Australia, supreme court of Victoria, county court of Victoria, magistrate court.
What is civil law
The system of law which is concerned with private relations between members of a community rather the criminal, military or religious affairs.
What is criminal law
A system of law which is concerned with the punishment of offenders.
