Scarcity & Choice
This is the basic economic problem where human wants are infinite but resources are limited.
What is Scarcity?
This term describes breaking down a large job into smaller, repetitive tasks for different workers.
What is Division of Labour?
The maximum percentage of your gross salary that you can choose to contribute to KiwiSaver.
What is 10%
Real
What is the currency of Brazil?
The regular payment made by a tenant to a landlord.
What is Rent?
The next best alternative foregone when a decision is made.
What is Opportunity Cost?
When a country or business focuses on producing only a narrow range of goods they are best at.
What is Specialisation?
This is the specific age when you are usually allowed to withdraw your KiwiSaver funds for retirement.
What is 65
If the NZD moves from 0.60 USD to 0.65 USD, we say the NZD has done this.
What is Appreciated (or strengthened)?
A sum of money (usually 4 weeks' rent) held by Tenancy Services to cover potential damages.
What is a Bond?
A school decides to spend its budget on a new gym instead of a science lab. Identify the "Choice" and the "Opportunity Cost" in this scenario.
The Choice is the Gym; the Opportunity Cost is the Science Lab.
This man is known as the creator of division of labour.
Who is Henry Ford?
Apart from retirement, name the other major life event for which you can withdraw your KiwiSaver savings.
What is buying your first home?
This group of New Zealanders benefits most when the NZD is "weak" or depreciates.
Who are Exporters (e.g., dairy farmers, tourism operators)?
Give one major "non-financial" advantage of renting over owning a home.
What is flexibility/mobility (easier to move) or less responsibility for maintenance?
Alcohol
What is a demerit good?
Name two disadvantages for a worker who performs the same small task all day.
What is boredom and loss of skills.
If a 16-year-old works part-time, identify the three parties that could potentially contribute money into their KiwiSaver account.
The Employee (the student), the Employer, and the Government.
Explain why a strong NZD might lead to lower inflation in New Zealand.
What is "it makes imported goods (like petrol/electronics) cheaper for Kiwis"?
This is the term for the difference between a house's market value and the amount still owed on the mortgage.
What is Equity?
Time, Money, Skills
What are limited resources?
Robots
What are capital goods?
260
What is the annual contribution from the Government.
Calculate: If the rate is 1 NZD = 0.90 AUD, how many Australian Dollars will you get for 500 NZD?
What is 450 AUD? ($500 \times 0.90$)
Name three ongoing costs of owning a home that a renter does not usually have to pay.
What are Council Rates, House Insurance, and Maintenance/Repairs?