Making Choices
Something we physically cannot survive without.
Needs
Physical products and things people do for us that we pay for.
Goods and services
Things people value when choosing goods and services.
Consumer preferences
When demand is greater than supply at the current price, it is called a what?
Shortage
What does scarcity mean?
Limited resources but unlimited wants
What type of producer is a wheat farm?
Primary (agricultural)
Complete the formula: Profit =______ - _______
Selling price − cost to produce
Focusing on producing only what you do best is called what?
Specialisation
Name the four factors of production.
Land, labour, capital and enterprise
Which type of consumer consistently makes purchases from the same shops and brands?
Loyal consumers
Which strategy uses prices like $9.95 instead of $10?
Psychological pricing
Producers and consumers needing each other is called what?
Interdependence
Sam has $20 and picks a burger over a movie ticket. What is his opportunity cost?
The movie ticket
In the circular flow, what do households receive from firms in return for their labour?
Income such as wages
A café switches to reusable cups and less packaging. Which type of consumer is it responding to?
Environmentally friendly consumers
Where the demand and supply curves meet is called what?
Equilibrium
What is the term for the amount consumers will buy at a particular price?
Demand
What does interdependence mean? Give an example.
Producers and consumers need each other.
Example - a bakery needs customers and customers need bread
A product costs $40 to make. With a 25% cost-plus mark-up, what is the selling price?
$50
What does the “T” stand for in FTA?
Trade