Consumer Choices
Something essential for survival, such as food, water or shelter.
What is a need?
An organisation that produces goods or services to satisfy needs and wants.
What is a business?
The idea that resources are limited, but people's wants are unlimited.
What is scarcity?
Money collected by the government from individuals and businesses.
What are taxes?
Something people would like to have but do not need for survival.
What is a want?
Money earned from work or other sources.
What is income?
The price of a good or service increases, the quantity demanded decreases, and as the price decreases, the quantity demanded increases.
What is the law of demand?
Examples: schools, hospitals, roads, police, or public transport.
Name one public service funded by taxes.
The next best alternative that is given up when making a choice.
What does opportunity cost mean?
A good is a physical product; a service is an activity performed for someone.
What is the difference between a good and a service?
As the price of a good or service increases, producers are willing to supply more of it, and as the price decreases, they supply less.
What is the law of supply?
To provide services, make laws, collect taxes, and help manage economic activity.
What is the role of government in the economy?
Examples: price, advertising, peer pressure, income, trends, or quality.
Name two factors that influence consumer decisions.
Electrician, Plumber, Professor vs. Supermarket shelf-stacker
What is a skilled job vs unskilled job?
This occurs when the quantity supplied is greater than the quantity demanded at a particular price.
What is a surplus?
To protect buyers from unsafe products and unfair business practices.
Why do governments create consumer protection laws?
This is the act of choosing between different goods and services.
What is consumer choice?
It can provide skills and qualifications that increase job opportunities and earning potential.
Why is education often linked to higher income?
This is the point where the quantity supplied equals the quantity demanded, resulting in a stable market price.
What is equilibrium?
Examples: changing taxes, wages, regulations, or infrastructure spending.
Explain one way government decisions can affect businesses.