Economics Concepts
Define 'Scarcity'
What is "What is unlimited wants and needs but limited resources?"
What two participants in the economy are in what is referred to as the 'private sector?'
What is "individuals and firms?" (AKA, households and businesses)
What economic system is defined by cultural practices and production is shared by everyone?
What is a 'traditional economy?'
Define interdependence?
What is 'the way we rely on others to satisfy our wants and needs'
Define specialisation?
What is "when an individual/company/state focuses on producing certain types of goods and/or services?'
What are the four factors of production?
What is 'Capital, Enterprise, Land and Labour?'
What sector of the economy deals with taxes?
What is 'government sector?'
In a command economy, who makes the economic decisions of what to produce?
What is 'the government AKA the State"
What is one way individuals are dependent on firms?
What is 'consumers buy products from producers to satisfy their needs and wants?'
What is " to develop a more efficient and competitive production?'
What concept am I describing? "Making decisions on what to buy to satisy our wants and needs'
What is 'Making choices?"
What is it called when money leaves the economy? Provide an example from 1 sector in the economy?
What is a 'leakage?' (e.g taxes, saving, imports)
What type of economic system does Australia have?
What is 'market capitalist economy?'
What model is used to demonstrate the concept of interdependence and what does it show?
What is 'circular flow model, flow of resources and money?'
Define 'comparative advantage'
What is "the ability to produce a good or service for a lower opportunity cost?'
What concept am I describing? "The way we distribute our scarce resources to producers and consumers"
What is 'allocation and markets?'
What are the roles of the finance sector (banks) in the economy? (4 roles, 100 points each)
What is "hold savings, lend money, aim to make profits, pay taxes"
What are the features of a market capitalist economy?
What is 'private ownership of productive resources, What is produced is based on consumer demand. Producers are motivated to make profit"
What are two ways firms are dependent on individuals?
What is "depend on individuals for labour and spending?'
What can countries do when they need goods and services that they do not produce?
What is 'import goods from another specialised country?'
What are the three measures economists use to see how the economy is performing?
What is "GDP, inflation and the unemployment rate?'
Describe an 'injection' and list the different types of injection from the different economic participants
What economic system is based on government ownership of the factors of production BUT production is based of consumer demand ?
What is 'Market socialist economy?'
What is it called when the worlds countries become more interdependent?
What is 'globalisation?'
What are some positives and negatives for specialisation for individuals?
What are 'cheaper, higher quality goods available and potential for jobs/industries loss within a country?"