Basic Economics
Something you desire but do not necessarily need
Wants
When price increases, quantity demand decreases
Law of demand
The point at which quantity demanded and quantity supplied meets
market equilibrium
The income received for labour
Something intangible that can be done for you
Services
The consumer's responsiveness to a change in price
elasticity of demand
What is excess demand?
People who are unemployed for greater than 12 months
Long term unemployment
Land, Labour, Capital, Enterprise
The 4 factors of production
Price of a good or service
Income
Age
Expectations of future prices
Factors affecting demand
When minimum wage is increased this is created.
Unemployment
Consists of all the employed and unemployed persons in the country at any given time. Also known as the workforce.
Labour force
not having enough of something to satisfy all wants and needs
Scarcity
Name 3 factors affecting elasticity of demand
Necessities or Luxuries
Close substitutes
complementary goods
Proportion of income spent
length of time since a price change
a minimum price set above the equilibrium price, intended to protect producers or workers by preventing prices from falling below a certain level.
Price floor
Who is NOT included in the Australian workforce?
The choice and trade off between two decisions
Opportunity cost
Distinguish between a monopoly and monopolistic competition
A monopoly has one major firm who is a price setter and high barriers to entry. A firm in monopolistic competition has many firms with differentiated products, relatively lower barriers to entry.
Define price ceiling and give 1 example
A price ceiling is the highest price a seller can charge for a product or service. Governments and other regulatory bodies impose price ceilings when they believe an item's supply and demand price is unfair. Eg. price of meat or price of wheat
Involves the laws, institutions and processes established to manage relationships between employers and employees.
Industrial relations systems