SCARCITY & OPPORTUNITY COST
There is not enough of something people want
What is scarcity?
Demand means how much people ______ something.
What is want?
Households provide this to firms.
What is labour?
The main source of government income.
What is tax?
Is Netflix a good or service?
What is a service?
Unlimited wants and limited resources force people to make these.
What are choices?
When price falls, demand usually does this.
What is increase?
Firms pay households this.
What are wages/salaries?
GST is this type of tax.
What is indirect tax?
Is Woolworths a producer or household?
What is a producer?
The next best alternative given up is called this.
What is oppertunity cost?
Supply focuses on producers being willing to do this.
What is sell/supply goods?
Households give firms this when buying goods.
What is consumer spending?
Income tax is this type of tax.
What is direct tax?
A student chooses Biology instead of Economics. What is the opportunity cost?
What is Economics?
Choosing to study instead of gaming means gaming is the ________.
What is the opportunity cost?
A demand curve slopes in this direction.
What is downward?
This model shows relationships between households and firms.
What is the circular flow model?
Benefits and subsidies are examples of government ________.
What is spending?
A business buying machinery is using this type of resource.
What is a capital resource?
The main economic problem is known as this.
What is scarcity?
A supply curve slopes in this direction.
What is upward?
Government receives this from households and producers.
What are taxes?
Name one reason governments provide goods and services.
Name the two groups shown in the basic circular flow model.
Answer: What are households and producers/firms?