Sectors
This sector extracts raw materials directly from nature, like farming and fishing.
What is the Primary Sector?
This is the formula to calculate Cost Per Unit.
What is Total Costs ÷ Number of Items?
Water, food, and shelter are examples of these essentials for survival.
What are needs?
A laptop, chocolate bar, and textbook are all examples of these physical, tangible products.
What are goods?
This is the money a business earns from selling goods or services, calculated as Price × Quantity Sold.
What is revenue?
Fonterra, which processes milk into cheese and butter, operates in this sector.
What is the Secondary Sector?
Rent and insurance are examples of this type of cost that stays the same regardless of how much you produce.
What are Fixed Costs?
The latest iPhone, designer sneakers, and Netflix subscriptions are examples of these.
What are wants?
A haircut, medical treatment, and teaching a class are all examples of these intangible actions.
What are services?
This is what you get when you subtract total costs from total revenue.
What is profit?
This New Zealand company is in the primary sector and exports kiwifruit worldwide.
What is Zespri?
If your total costs are $150 and you make 50 items, this is your cost per unit.
What is $3?
People have unlimited of these, but resources are limited, creating the fundamental economic problem.
What are wants?
Unlike services, goods have this characteristic - they can be stored and kept for later.
What is storable (or tangible/physical)?
The process of turning raw materials into finished products, like making bread from flour.
What is manufacturing (or processing/production)?
This is the term for the sector that provides services like retail, healthcare, and education.
What is the Tertiary Sector (or Service Sector)?
This is the point where your total revenue equals your total costs, meaning you make no profit or loss.
What is the break-even point?
This is why we can't have everything we want, even though our wants are unlimited.
What is scarcity (or limited resources)?
When you get a haircut or attend a concert, this happens immediately - the service is consumed and cannot be stored.
What is consumed immediately (or intangible/perishable)?
Fisher & Paykel and Fletcher Building are both examples of this type of business organization where shareholders own the company.
What is a company (or limited company/corporation)?
If dairy farmers stopped producing milk, factories would have no raw materials to process. This demonstrates this relationship between the primary and secondary
What is interdependence (or dependency)?
If you sell cupcakes for $4 each with a cost per unit of $1.50, and you sell 40 cupcakes, this is your total profit.
What is $100? (Revenue $160 - Costs $60 = $100 profit)
A basic apartment in a safe area would be a need, but a luxury penthouse with a harbour view would be this.
What is a want?
A restaurant that serves food provides both goods and this, making it operate in multiple categories.
What is a service (or services)?
In the Pop-Up Market Day project, students must keep their startup costs under this dollar amount.
What is $30?