Basic Economics
What is the study of how people use resources to satisfy their wants and needs?
Economics
Describe an economy
How a society manages its limited resources to produce, distribute, and consume goods and services.
This sector provides the 3 factors of productions
Household
The CEO has been discovered as a prolific murderer
Stock Drops
Buying Shoes instead of a Shirt
The opportunity cost is a shirt
This is how many sectors in the circular flow model
5
The term for items that satisfy a want or need.
Goods and Services
Describe a capitalist economy
Private ownership of the means of production, where businesses and individuals own and control resources.
Name the three factors of production
Labour, Land, and Capital
The business unveils new plans to create a revolutionary cancer curing drug.
Stock Rises
A city has $1 million for a park, public transport, or library renovation. They choose transport.
The opportunity cost is the park and library renovation.
Name the letter t relates to in the circular sector economy
Taxation
The term for the next best alternative you give up when making a choice.
Opportunity Cost
Describe a socialist economy
State ownership of the means of production and government control over economic planning to distribute wealth and resources more equally among the population.
The Basic Economic Problem
Unlimited human wants and needs are met by finite resources.
The business has been found to have safety issues within their factories.
Stock Drops
You have a weekend to study, do an art project, or go on a trip. You choose to study.
The opportunity cost is the trip or art project.
Name all the sectors within the circular flow model.
Household, Production, Financial, Government, and International.
What is the difference between a want and a need?
Needs are essential for survival; wants are things you would like to have but don’t need.
Describe a Planned economy
Financial decisions are made according to government plans.
The 3 main reasons people work
Financial, Social, and Personal
A company is hiring and looking for new talent
Stock Neutral (likely)
The opportunity cost is the drink and $2
Customer Expenditure, Factors of Production, Income, and Goods and Services
Describe a tariff
A tax on goods being imported into a country.
Describe a market economy
Production, distribution, and pricing of goods and services are determined by supply and demand.
The 4 types of paid work
Full-time, part-time, casual, and independent contract.
An oil company has been found to be environmentally unfriendly.
Stock Rise (likely)
You choose to go to university
The freedom outside of studying or applying and working a full-time job
Name the 3 injections and 3 leakages that leave and enter the cycle of income.
Savings, Taxation, Imports (Leakages), Investment/Loans, Government Spending, and Exports (Injections)