Key Concepts
Money flow from households to businesses that is received in exchange for goods and services
What is Consumption Spending
A sector of the circular flow diagram that collects interest and injects loans/mortgages
What is the Financial Sector
The curve that shows how many goods consumers are willing and able to buy at different prices
What is the Demand curve
The equation to calculate profit
This 1876 invention by Alexander Graham Bell forever changed how people communicate.
Revenue less expenses
What is Profit
The sector of the economy that collects taxes
What is the Government
The curve that increases (shifts right) if workers are more productive
What is the Supply Curve
The cost to a business that doesn't change no matter how many units of goods they sell.
What is fixed cost
This superhero’s alter ego is Peter Parker, a photographer from New York City.
Who is Spiderman
Money earned from providing a service
What is Fees Received
The real flow that flows from households to businesses
What is Labour/Resources
The direction that the demand curve shifts to if a negative review on a Facebook community page damages the reputation of this business
What is a shift to the left
The total amount of profit for a business that has $50,000 in sales, $9,500 in wages, $5,000 in advertising cost and $13,000 in materials.
What is $22,500
Signed in 1840, this agreement between Māori chiefs and the British Crown is considered New Zealand’s founding document.
What is Te Tiriti o Waitangi
Whether a business can survive financially in the long term
All the money flows between the business and financial sector
What are Investments and Interest
The direction the supply curve shifts if a business' supplier increases the cost of their goods and services
What is a shift to the left (decrease)
The accounts that will change in an income statement if businesses have to increase the wages that they pay their employees.
What is wages(expenses) and profit
This dairy co-operative is one of New Zealand’s largest exporters and is owned by thousands of farmers.
What is Fonterra
Indirect taxes that businesses pay the government
Goods and Services Tax (GST)
Money flow received by businesses in exchange for exports
What is export receipts
The term for when the demand for goods and services is more than the supply of goods and services
What is a shortage
The accounts that will change if a business has to decrease the amounts of goods that they sell.
What is Sales(revenue) and Profit
This term describes someone who starts and operates their own business, taking financial risks to do so.
What is an Entrepreneur