Needs and Wants
What are needs?
Things we must have to survive, like food and water.
What is demand?
The desire and willingness of consumers to buy something.
What is a consumer?
Someone who buys goods and services.
What are the factors of production?
The four resources used to make goods and services.
Money people earn from working.
Income
The two groups in the two-sector circular flow model are...
Households and Businesses
What are wants?
Things we would like to have but can live without, like gaming consoles or lollies.
When price goes up, demand usually goes down — this is called the _____.
The law of demand
What is a business?
A place or organisation that sells goods or services for profit.
What is land?
Natural resources like land, forests, or water.
Work someone does without getting paid is called
Voluntary work
Households provide this to businesses in return for income.
labour
What is scarcity?
The economic problem where wants are unlimited but resources are limited.
What are substitutes?
Goods that are often bought instead of each other, like Coke and Pepsi.
What is interdependent? / What is interconnection?
Consumers and producers relying on each other.
The factor that involves starting businesses and taking risks is?
Enterprise
What is an internship?
A student working for experience in a field.
Businesses provide these to households.
Goods and Services
What is opportunity cost?
The “next best option” you miss out on when you make a choice.
What are complementary goods?
Goods that are bought together, like burgers and chips.
What is responding to healthy demand?
Healthier preferences: adding salads or low-sugar options.
Tools, machines, and buildings used in production are called?
Capital
What is the age pension?
Income retired people may receive from the government.
The model showing movement of money and resources between households and firms is called...?
The circular flow model
Scarcity forces people to do this, because they can’t have everything.
Make choices
One thing that can increase demand even if price stays the same.
Advertising
Advertising
When customers want eco-friendly products, businesses may change this.
packaging / materials / product ingredients
Human effort and workers used to make products is called?
Labour
Income people save during working life to use after retirementis called...?
Superannuation
In the circular flow model, money goes from households to firms when households do this.
Buy goods and services.