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Products (goods) and actions (services) that satisfy wants and needs.
Goods and Services
Income earned from land or property.
Rent
Money spent by households on goods and services.
Consumer Spending
Income not spent, usually placed in a bank or invested.
Savings
Money collected by the government from households and firms.
Tax
Inputs used to produce goods and services – land, labour, capital, enterprise.
Resources
Which of the following is an example of income?
A. Electricity bill
B. Rent payment
C. Wages from a job
D. Grocery shopping
C. Wages from Job
Before signing a lease agreement, you should:
A. Sign immediately
B. Read and understand the terms
C. Ignore the conditions
D. Ask a friend to sign for you
B. Read and understand the terms
____ are a form of property tax charged by local authorities (such as city or district councils) to property
Rates
-this is the movement of either resources or goods and services between households and firms
Real Flows
Human effort used in production (e.g. work done by employees).
Labour
Which expense would be considered a need?
A. Netflix subscription
B. New video game
C. School uniform
D. Concert tickets
C. School uniform
A financial plan that estimates income and expenses over a specific period, used for planning and controlling financial activities.
Budget
-Financial obligations or debts that a business owes to external parties.
Liabilities
- this is the movement of money between households and firms
Money Flows
Money received by households for providing resources (wages, rent,
Income
If your income is $500 per week and your expenses are $450 per week, your budget has:
A. A deficit of $50
B. A surplus of $50
C. A surplus of $450
D. No surplus or deficit
B. A surplus of $50
Individuals or groups that have an interest or stake in the activities and performance of a business, including employees, customers, suppliers, investors, and the community.
Stakeholders
What is a dividend?
A. A tax on investments
B. Money paid to shareholders from company profits
C. A bank fee
D. A loan repayment
B. Money paid to shareholders from company profits
- refers to the first-round effect following of an event
Direct Effect
Income earned from labour (working).
Wages
Income earned from enterprise (after business costs).
Profit
Money received by firms from selling goods and services.
Revenue
-Resources owned by a business that have economic value and can provide future benefits.
Assets
-refers to the second round of effect following a direct effect
Flow on effects