Introduction to Economics
Consumers and Business
Markets
Labour Markets
Governments
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 people who earn more are taxed more.

What is a progressive tax?

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 Government policy that outlines the revenue and spending of the Government

What is Fiscal Policy?

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

Reason for using a progressive tax system and paying social welfare payments

What is income distribution?

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 budget that aiming to spend more than it earns.

What is a deficit?

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

The policy where the government manipulates the interest rate to control inflation

What is monetary policy?

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