Keywords Flashcards
Barter
Trade that takes place without money; goods and services are exchanged for one another.
money
Any object that can be exchanged for goods and services.
indirect trade
Trade that occurs when money is used to pay for goods or services.
promissory note
A piece of paper on which a person writes a promise to pay another person a certain sum of money sometime in the future.
medium of exchange
An item that is used to make trade easier. Example: money.
cheque
a written instruction to a bank ordering them to pay a certain sum of money to the person named on the cheque.
bank card
a piece of plastic with certain characteristics issued by the bank which allows the holder to conduct electronic banking.
credit card
A type of bank card which allows the holder to borrow money in order to make payments.
debit card
A type of bank card which allows the holder to use money that they have already deposited to make payments.
need
Something you have to have in order to stay alive.
want
Something you would like to have but do not need.
households
groups of individuals who live together.
community
a large group of people who live or work together.
collective
belonging to everyone
public goods and services
goods and services that the government provides and everyone in a community uses.
standard of living
the level of income, wealth, material goods and necessities available to a person
primary needs
our most basic survival needs
secondary needs
needs that develop once our primary needs have been satisfied
recources
the things we need to produce goods and services
scarce
only a small / limited quantity available
non-renewable resources
resources that can’t be replaced in a person’s life time
renewable resources
resources that can be replaced
economic problem
unlimited needs and wants but limited resources
economics
the study of needs and how to satisfy them
goods
things we consume
services
work done for the benefit of another
consume
to use up or finnish
consumer
a person / business that consumes
government agancy
an organisation that supplies goods or services to people. Example: Telkom
producers
people or organisations who make goods and / or services.
entrepreneurs
people with skills that start their own businesses
operating costs
cost of running a business
constitution
all the laws governing a country
grant
an allowance which means that no payment is required
effectively
choosing the best option to get what you need at the best price at the best time
efficiently
getting the best results from what is available with the least possible waste in time and materials
market share
the part of the market in which you sell your goods and services
What is an informal business?
a business not regulated or controlled by the government.
What is a formal business?
A business that is regulated or controlled by the government
What are accounting records?
books or records that are drawn up by a business to keep track of all their transactions and business deals.
What is tax?
A payment charged by the government to pay for the provision of goods and services that are needed to run the country.
What is VAT?
Tax paid on the goods and services that you buy.
What is an expenditure?
money you spend
What is a deficit?
The extra amount of money you need when your expenses are more than your income
What is a surplus?
when you have money left over after you have paid all your expenses
What is a budget?
a money plan to make sure that you do not spend more than you earn
What is investing?
Taking money you have saved and using it to make more money.
What is income?
money earned by a business or person
What is an expense?
Costs that a person or business has.
What is a statement of Net Worth
a list of assets and liabilities
What is insurance?
An agreement whereby a company agrees to pay for loss of or damage to your business in return for a monthly fee.
What is a transaction?
A business deal
What is a source document?
A record of a transaction that took place in a business
What is a current account?
A bank account used for daily transactions
What are finances?
money or funds
What is capital?
what the owner puts into their business
What are assets?
possessions that are used to run a business
Hierarchy of needs:
Self actualization Esteem love/belonging Safety Physological
