Economics & Business Test


Year 8 Economics and Business Flashcards on Economics & Business Test, created by Jo Barrow-Jones on 06/14/2021.
Jo Barrow-Jones
Flashcards by Jo Barrow-Jones, updated more than 1 year ago
Jo Barrow-Jones
Created by Jo Barrow-Jones over 1 year ago

Resource summary

Question Answer
Define opportunity cost The next best alternative given when a choice is made.
What is the market? The exchange of goods and services between buyers and sellers.
Define scarcity The concept of people having unlimited needs and wants, but only having limited resources available to satisfy them.
What is the basic economic problem? Scarcity.
What is an economic system? A way of organising the production and distribution of the nation's goods, services and incomes.
What are the 3 basic economic questions? What to produce? How to produce? For whom to produce?
What is specialisation? Where a worker, business or nation focuses on the production of a limited range of goods or services in order to increase production and make the most efficient use of resources.
An example of specialisation and how it is more efficient. It would take a long time for 1 person to make a whole t-shirt, whereas with specialisation the business can produce many more t-shirts in the same amount of time.
What is the economic system in Aust. called? What does this mean? Market capitalist economy means that the market answers most of the economic questions.
Example of trade within and with another country for Australia. Other country: Australia exports iron ore, coal, gold and wheat. We import fuels cars and electrical equipment. Within: I sell cupcakes in exchange for money.
Define interdependence The way all parts of the economy affect and rely on each other.
Draw the basic circular flow model. -
Who is at the centre of Australia's market system? Consumers and producers.
How do we satisfy our needs and wants? By working to earn money, and then buying goods and services from businesses that produce them.
Define labour. The human skills and effort required to produce goods and services.
What does the basic circular flow model show? The flow of goods and services and the flow of money between households and businesses. How labour is exchanged for money and how that money is used to purchase goods and services. It tells us about the financial relationship between consumers and producers in our market system.
Draw the expanded circular flow model. --
How do markets attempt to solve the economic problem? Through the interaction of supply and demand.
What is demand? The qty of a product that consumers are willing to purchase at a particular price at a given point in time.
What does the law of demand state? The qty of a good or service demanded varies inversely to price?
What is supply? The qty of a good or service that businesses are willing and able to offer for sale at a given price, at a given point in time.
What does the law of supply state? The qty of a good or service supplied varies directly with the price.
Where does a market exist? Any situation where buyers and sellers come together to exchange goods and services for money.
What are the different types of markets? Retail, labour, financial, stock.
Where are retail markets? Shopping areas in CBD's, Huge suburbian shopping malls Local shopping centres Shopping strips & groups of shops Online shopping websites
What are labour markets? The supply and demand for labour, where employees provide the supply and employers provide the demand.
Who are the sellers? And buyers of labour? sellers: potential employees Buyers: Employers.
How does the labour market operate? signs with job vacancies and newspaper advertisements. Online job boards like seek Anyone receiving unemployment benefits must have an active role in looking for work.
What is profit? what remains after all business expenses have been deducted from the money that has been collected from selling goods or services
What is a financial market? A market in which people trade financial securities and derivatives at low transaction cost.
The functions of money: Medium of exchange, Measure of value, Store of value, Standard of deferred payments.
What is interest? a charge made for the use of money that has been deposited or borrowed
What is the stock market also called? Share market
What is the stock market? A relationship between buyers and sellers. It is shares in companies that are bought and sold.
What is a share? A unit of ownership in a company. Bought and sold through the stock market.
What is the stock market known as in Australia? Australian securities exchange (ASX)
What is capital growth? An increase in the value of shares or property over time
Example of a supply and demand graph ___
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