Basic Economic Theory
What are needs?
Needs are the basic needs for survival.
Define a market.
A market is any place where buyers and sellers meet.
What is the law of Demand?
A sole trader is when a single person owns a business. It is an informal business type.
Define a full-time employee.
Someone who works on average 38 hours a week.
Define the economic problem.
The economic problem is that there is unlimited demand but limited resources.
Define market system
A market system is the network of buyers and sellers that come together to exchange goods and services.
What is the law of Supply?
The law of supply states, that an increase of price leads to an increase of demand.
What is a corporation?
A corporation is an organisation that acts like a single entity by law.
Downsides of being a casual employee?
Some downsides of being a casual employee is that there is no sick or annual leave pay.
Define Scarcity
What are some examples of market systems?
- Monopoly
- Capitalistic
- Socialistic
What is a movement along the D and S curve?
An increase of price (a price related factor) will results in a movement in the demand and supply curve.
What are some downsides of being a sole trader?
What is an apprentice or trainee?
An apprentice or trainee is a person working towards a qualification but must be formally registered, mostly through a contract between a registered training provider.
Define wants
Wants are what people desire to have but do not need for their survival.
Define capitalistic market
Where private individuals or businesses own capital goods.
What is a shift of the Demand and Supply curves? give an example.
A non-price related factor that changes conditions results in a shift of the Demand and Supply curve. e.g. a new type of corn seed is used that increases crops shifting the supply curve to the left.
What are the 4 factors affecting business opportunities?
- geographical
- political
- social
- Economic
Benefits of being a full time employee?
Some benefits of being a full-time employee are:
What are the 4 economic questions?
1. What do we make
2. How much do we make
3. How do we make it
4. For who do we make it for
What is excludability?
When some people have access to a good or service but other people do not. Different to rivalry. This could be, someone has access to a service for free but other people have to pay.
Define contraction in the demand curve.
Contraction along the demand curve means that there is a decrease in demand due to an increase of price.
Define privatisation.
Privatisation is the transfer of ownership from a government owned and operated business to a private sectors.
What is a fixed term or contract employee?
A fixed term or contract employee is an employee that is employed on fixed term or contract basis for an agreed length of time or to perform a specific task.