Semester 2 Exam Revision Flashcards
Urbanisation
The growth and expansion of urban areas
Population distribution
The pattern of where people live
Population density
The number of people living within one square kilometre of land
Megacity
A city with more than 10 million inhabitants
The three big economic questions
- What goods and services should be produced, and in what quantities?
- What methods should be used to provide those goods and services?
- To whom should those goods and services be distributed?
Infrastructure
The total of all the means of transport and communication within an economy
Target market
Process of dividing the total market for a product into parts known as segments
4 skills that good entrepreneurs need to have
- Communication skills
- Marketing skills
- Resiliency skills
- Decision making skills
Bait advertising
False advertising in the market. It occurs when there is an advertised sale price but it is not really that price
Exclusive dealing
Occurs when one person trading with another imposes some restrictions on the others freedom to choose with whom, in what, or where they deal
Predatory pricing
One way in which a business may misuse it’s market power
Price fixing
Illegal for competitors to work together to fix prices rather than compete against each other. This restricts competition
Misuse of market power
A business with a substantial degree of power in a market is not allowed to use this power for the purpose of eliminating or substantially damaging a competitor or to prevent a business from entering into a market
Resale price maintenance
It is illegal for suppliers to:
- Put pressure on businesses to charge their recommended retail price or any other set price
- Stop resellers from advertising, displaying or selling goods from the supplier below a specified price
