Key Concepts
The problem of people having unlimited wants, but limited resources
What is scarcity?
What are the 5 sectors in the circular flow model?
What is 'Households, Businesses, Financial, Government, and Overseas'?
A consumer making an effort to purchase goods and services that do not have a negative impact on other people, animals or the environment.
What is 'a socially responsibly or ethical consumer'
What are the four markets?
What is 'labor, housing, foreign and stock market'?
What is 'income tax'?
The way consumers make choices about what they buy to satisfy their needs and wants
What is 'Making Choices'
When demand decreased as prices rise, this is known as what law?
What is 'law of demand'?
The names of the federal and state regulatory bodies that aim to create a fair and competitive marketplace.
What is "Australian Competition and Consumer Commission (ACCC) = federal. Consumer Protection = WA"
What gets exchanged in the labour market
Describe three different types of taxes we pay various levels of government.
How we rely on others to satisfy wants and needs
What is 'Interdependence'
What is it called when both producers and consumers are happy with the price and supplied quanitity?
What is equilibrium?
An example of legal responsibilities of consumers
Take the time to consider what we are buying by reading descriptions and specs carefully, reading online reviews, read and follow the instructions for the good so you use the product correctly.
In what market would you find a 'landlord'?
What is the 'housing market'?
What is an example of government involvement in the economy
What is 'creating fair work laws to ensure discrimination does not occur in the workplace, ensure people are being paid a fair wage, and aren't being injured at work '
Where do buyers and sellers interact to exchange goods and services?
What is a 'Market'?
Identify 'leakages' in the circular flow model.
What is 'Savings, Taxation, Imports'?
Under consumer law, when buying a product you have an automatic guarantee. What does this mean?
The product will work to a reasonable level, or as you would expect it to. It must be safe, be of reasonable quality (won’t break after a few use) do all of the things that a person would normally expect it to
If you where to buy a share in a business, what does that get you?
What is 'Part ownership in the company and a share of that company's profit'?
What are three ways the government improve people's lives through government expenditure?
What is "providing disability and old age pensions for people who might not be able to afford their needs and wants" / "State gov't provides education and healthcare for people at free or subsidised rates so they can achieve good paying jobs and stay healthy regardless of their income level" / "Local gov't provides libraries, parks, and local pools for people in the community to make their lives more enjoyable."
How we distribute scarce resources among producers
What is 'allocation of resources'?
Identify 'Injections' into the circular flow model.
What "Investment, Government spending, and Exports"
If goods and services purchased by a consumer do not meet the consumer guarantee they have the right to a ...
Repair (have the issue fixed), replacement (be given a new good), or refund (money spent on good/service returned to consumer). Sometime even compensation if harm has been caused.
How can a person make income in the foreign exchange market?
Why is it a great idea for government to help fund education for it's residents?
well educated people are more likely to
1) elect good leaders to keep the country strong and successful
2) higher worker productivity which strengthens the economy
3) Helps people achieve higher overall living standards on their own without as much need for the government to support them financially