Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

EBS 2018 > Term 1 > Flashcards

Term 1 Flashcards

Leaen stuff

1
Q

What is the basic economic problem?

A

Not enough resources to fufill everyone’s wants.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Define opportunity cost

A

The next best altrrnative after making a choice.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is the rule of 72?

A

72/i=time to double assuming interest is all reinvested.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Is opportunity cost always expressed in monetary terms?

A

Usually it isn’t but it can be.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is a consumer good?

A

A good that is used to satisfy a consumer’s wants and needs.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is an economic goods?

A

A good that has a degree of scarcity and therefore an opportunity cost.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is a free/abundant good?

A

A plentigul good that can be reproduced at no cost.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

When a choice is made there will always be an…

A

opportunity cost.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Choiced are made based on…

A

Limited means

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

If scarcity was eliminated there would be no…

A

Economic problem

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Give examples of free goods…

A

Rain
Sunshine
Stars
etc..

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is an alternative name for opportuniry cost?

A

Real cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is a tangible good?

A

An object with a physical presence.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is the Law Of Demand

A

Price up = QD down
Price down = QD up
Assuming CP

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What does a shift in the demand curve mean?

A

Change in demand (Ceteris Parabus factors affected)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are limited means?

A

Income, Time, Skill

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is a command econonmy?

‘Planned’ economy

A
  • Controlled by government
  • Less private sector

eg. North Korea

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is a Market economy?

‘Freedom’ ‘ liberal society’

A
  • Limited role for government
  • Many private property rights
  • Not many over 100 people as government always involved.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is a Mixed economy?

‘Freedom’ ‘ liberal society’

A

-A mix of Command and market based allocation
-A mix of private and state with varying degrees
contributing to GDP
-Some state welfare, planning, education, health
-Role for market enterprises

eg. New Zealand 70% Private, 30% State

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

How can values and character affect decision making?

A

People base decisions on their values and can therefore determine consumer demand for goods and services.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Define Demand

A

Being willing and able to pay for a good or service.

NB: Demand ISNT Wants

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is a demand schedule?

A

A table linking P and QD for a particular product.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is market demand?

How is it calculated?

A

A summation of all individual demand.

Add up QD from each consumer at each price

24
Q

Change in price causes a change in…

A

Quantity demanded

25
Q

What are the Ceteris Parabus factors?

A

Tastes, Income, P of substitutes, P of complements.

26
Q

What is an inferior good?

A

A good that decreases in demand as income rises. Vice Versa

27
Q

What is saving?

A

All money not spent on current consumption.

28
Q

In economic terms, is buying property and shares an investment?

A

No, Investment is purcase of capital.

29
Q

Name the types of earned income…

A
  1. Salary - Calculated anually, Paid fortnightly
  2. Wages - Calculated hourly, Paid Weekly
  3. Commision - Usually Percentage value
  4. Fees - Set amount charged for a service
  5. Bonuses - Not guaranteed
30
Q

Name types of unearned income (Y from ownership)

A
  1. Ownership of property
  2. Capital (Money)-lent out for interest
  3. Royalties
  4. Shares/Financial assets.
31
Q

How do you earn money from shares?

A
  • Dividends paid out by company in cents per share (Not guaranteed)
  • Capital Gain when shares is sold at a higher price than which it was bought for.
32
Q

What is gross income and net income?

A
  • Gross income is income earned before tax

- Net income is income earned after tax

33
Q

What are the main factors that affect income?

A
  • Age
  • Educatiom
  • Performance
34
Q

What is credit?

A

A form of deterred payment

ie take possesion of product immediately and pay off overtime.

35
Q

What are some sources of credit?

A
  • Banks
  • Finance companies
  • Sotres
  • Credit card companies
  • Loan sharks
36
Q

What is a mortgage?

A
  • Long term loan

- To purchase house

37
Q

What is interest?

A

The cost of borrowing.

38
Q

What is the difference between Finance Rate and Interest Rate?

A

Finance rate includes interest and other fees and costs.

39
Q

What interest free loans are there?

A

Student loans, credit cards within time limit etc.

40
Q

If not stated otherwise, what is interest rate in?

A

% per year

41
Q

What is the principal in a loan?

A

The original amount borrowed

42
Q

What is a person who has insuffiicient funds to pay back debts?

A

Bankrupt

43
Q

Is layby a form of credit?

A

Nooo

44
Q

What is a service?

A

When activities are done for someone else.

45
Q

What makes you bankrupt in NZ?

A

A person whi has a combined debt of $1000+ and cannot pay it off can be made bankrupt.

46
Q

What can faliure to control credit lead to?

A
  • Repossession of assets
  • Personal bankruptcy
  • Mortgage sale of home
47
Q

What are 2 subcategories of expenditure in a budget?

A

Necessary Spending and Discretionary Spnding.

48
Q

What is another name for necessary spending?

A

Fixed spending

49
Q

What is surplus?

A

When income is greater than expenditure.

50
Q

Does expenditure include savings?

A

No

51
Q

What is another name for discretionary spending?

A

Variable spending.

52
Q

What is defecit?

A

When expenditure is greater than income.

53
Q

What can a budget do?

A
  • Help people allocate their income
  • Help people save and plan for the future
  • Identifies areas of spending that may be able to be reduced.
  • Provides guidance on how much to spend.
54
Q

Whate is aggregate household spendkng?

A

Combine all money that households use to buy goods and services.

55
Q

Are capital gains a form of income?

A

YES

56
Q

What is income earned by the hour?

A

Wages

57
Q

Did You Learn A Very Much?

A

Nyes

EBS 2018 (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions