Topic 1
Topic 2
Topic 3
Topic 4
Topic 5
100
Our wants are unlimited yet our resources are scarce
What is the economic problem?
100
Firms produce whatever goods and services are in demand.
What is consumer sovereignty?
100
All things being equal
What is ceteris paribus?
100
Demand for labour is determined from the demand of goods and services.
What is derived demand?
100
Where one country's currency is exchanged for another
What is the foreign exchange market?
200
Labour, natural resources, capital and enterprise
What are the factors of production?
200
Wages, Rent, Interest and Profit
What are the sources of consumer income?
200
When a decrease in price causes the quantity demanded to rise.
What is an expansion in demand?
200
Total demand for goods and services within an economy
What is aggregate demand?
200
a special type of long-term security (loan) taken out by the government
What is a bond?
300
This describes the operation of the economy and the linkages between the main sectors.
What is the five-sector circular flow model?
300
DVD's and DVD players
What is a complementary good?
300
Homogeneous product, no barriers to entry
What is pure competition?
300
Total output / Labour input
What is labour productivity?
300
Profit returns received by shareholders
What is a dividend?
400
total leakages are greater than total injections
When does disequilibrium occur?
400
Maximising profits, meeting shareholder expectations, increasing market share, maximising growth, satisficing behaviour.
What are the goals of the firm?
400
A rise in consumer incomes and a rise in the price of substitute goods
What are factors that cause an INCREASE in demand?
400
Encourages the labour force to increase education and skill levels.
What are economic benefits of inequality?
400
A medium of exchange, a measure of value, a store of value and a method of deferred payment
What is money?
500
Savings respresents this on the cicrular flow of income.
What is a leakage?
500
A furniture store chooses to locate in a region where there are many timber yards.
What are external economies of scale?
500
A decrease in the quantity of resources available and regulation restrictions.
What are factors causing a DECREASE in the supply of a good?
500
Individuals who have jobs but would like to work more hours
What is underemployment?
500
Increasing interest rates to reduce economic activity
What is tightening of monetary policy?
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