Flashcards
Commerce
Cards in this deck (6)
- 14 factors of production Land Labour Capital EnterpriseOpportunity COst
The lost alternative use to which resources could be allocated.
Eg. The opportunity cost of going to the movies would be concert that you could have attended instead. - 2The 3 basic economic questions 1. What types of goods and services and how much is to be produced? 2. How should production be organised? 3. For whom are the goods, services and incomes to be produced?4 economic systems
Market Capitalism
Planned Socialism
Planned Capitalism
Market Socialism - 3Market Capitalism - the market dictates what is produced. Consumers make their decisions based on pricing of goods and services so make most decisions. There is mostly private ownership of businesses.Planned socialism - much government decision making about what goods or services are produced. There is much government ownership of businesses.
- 4Planned capitalism - government direction of how resources are used but maintaining structure of private enterprise. Eg. Nazi Germany during World War 2.Market socialism - consumers purchase goods based on pricing but most businesses are owned by
the government. - 5Equilibrium Price At the equilibrium price, the quantity consumers demand is exactly the same amount that producers are willing to supply. This creates an efficient use of resources as there is no waste or surplus, and there is no unmet demand or shortage.Demand
When the price of a product increases, the demand for that
product is likely to decrease.
When the price of a product decreases, the demand for that
product is likely to increase. - 6Supply As the price of a product goes up, the supply of that product is most likely to increase. As the price of a product drops, the supply of that product is most likely to go down.Employment as classified by the ABS
All persons aged 15 years and over who (during the week of the employment survey) worked for one hour or more for pay, profit, commision or payment in kind in a job or business or on a farm.
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- Flashcards on Commerce, created by foreverkiki.k on 28/05/2015.
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