Markets, Circular Flow & Core Concepts
Any situation where consumers and businesses interact to exchange goods and services.
What is a market?
In the circular flow model, households mainly provide this to businesses.
What is labour?
When the price of a good increases, demand does this.
What is decreases?
This is an example of an indirect tax in Australia.
What is GST (Goods and Services Tax)?
Someone who owns a property and leases it to others.
What is a landlord?
Scarcity exists because of this relationship between resources and wants.
What is resources are limited but wants are unlimited?
Businesses provide these back to households.
What are goods and services?
Businesses are willing to supply more goods when this happens.
What is the price increases?
In this tax system, people with higher incomes pay a higher rate of tax.
What is a progressive tax system?
Paying to use a property for a set period of time.
What is leasing?
This type of economy allows both the market and the government to make economic decisions.
What is a mixed market economy?
Households receive this in exchange for labour.
What is income (wages)?
When many customers want the same product at the same time, this is called this.
What is high demand?
True or False: A mixed market economy means the government controls all decisions.
What is False?
True or False: Leasing means buying a property outright.
What is False?
In a market, buyers and sellers interact to decide this.
What are prices?
True or False: In the circular flow model, households provide labour and businesses provide goods and services.
What is True?
True or False: Businesses set prices using supply and demand conditions and production costs.
What is True?
Revenue means this for a business.
What is money earned before expenses are deducted?
Landlords supply this in the housing market.
What is rental accommodation (housing)?
This economic concept explains how households, businesses and governments rely on each other.
What is interdependence?
This group collects taxes and provides public goods in the circular flow model.
What is government?
If supply is low and demand is high, products are likely to do this.
What is sell out quickly / increase in price?
The total money a business keeps after costs is called this.
What is profit?
Tenants create this in the housing market.
What is demand for rental properties?