Outcome 1

Question 0

Opportunity cost

Answer 0

The cost of an alternative that must be forgone in order to pursue a certain action. Put another way, the benefits you could have received by taking an alternative action.

Question 1

What is scarcity

Answer 1

The basic economic problem that arises because people have unlimited wants but resources are limited. Because of scarcity, various economic decisions must be made to allocate resources efficiently.

Question 2

What are some distinctive features of the Australian economy, including ownership, allocation of resources and the roles of households and businesses.

Answer 2

Australia is a market capitalist economy, businesses have 80% of resources and the government has 20%, households control the demands of consumers while the government is supplying us with things like education, licensing and public transport.( businesses supply and demand).

Question 3

Market power

Answer 3

All producers will seek to maximise sales therefore maximising profit, at some point their market power may affect the efficient allocation of resources.

Question 4

What is oligopoly

Answer 4

Several firms in the same industry, advertising and brand names are important an example would be supermarkets and banks.

Question 5

What is monopoly

Answer 5

Brand names are important, quite a few firms in the industry an example would be clothing manufactures.

Question 6

What is price discrimination

Answer 6

When for the exact same good or service businesses will charge different prices for different customers.

Question 7

What is pure competition

Answer 7

Occurs when there are many producers each selling a homogeneous product or service where there is no product differentiation.