Commerce Exam 1

Question 1

Consumer

Answer 1

Someone who purchases good or services to satisfy needs or wants

Question 2

Goods

Answer 2

Items that you can see or touch (tangible)

Question 3

Services

Answer 3

Things done for you by others

Question 4

Needs

Answer 4

Things that are necessary and essential such as water

Question 5

Wants

Answer 5

Things that are not essential but we would like to have

Question 6

Money

Answer 6

Any token that people accept as payment in exchange for a good or service

Question 7

Price

Answer 7

The amount of money the consumer is prepared to offer in exchange for a good or service

Question 8

Profit

Answer 8

Remains after all business expenses deducted after sale revenue

Question 9

Barter

Answer 9

The swapping of one good or another

Question 10

Collective wants

Answer 10

The desire of a community to have certain goods or services such as having schools, parks, etc.

Question 11

Personal wants

Answer 11

Wants which are only demanded by one person

Question 12

Durable goods

Answer 12

Goods that have a long lifespan and do not need to be frequently replaced

Question 13

Non-durable goods

Answer 13

Goods that need are purchased frequently and have a short lifespan. They are less expensive

Question 14

Substitute

Answer 14

A good that is alternative for another good eg. butter and jam

Question 15

Complementary goods

Answer 15

Goods that generally go well with other goods eg. milk and cereal

Question 16

Gross income

Answer 16

Total income

Question 17

Garnish

Answer 17

To take money out of your bank account to pay for debts

Question 18

Creditor

Answer 18

Someone you owe money to

Question 19

Writ of execution

Answer 19

A court order that allows an official to take part or all of you property

Question 20

Cash

Answer 20

Money in coins or notes

Question 21

Credit

Answer 21

Money loaned and money has to be payed back before a set date or there will be extra fees

Question 22

Direct Debit

Answer 22

Give a company permission to take money from your bank account on an agreed date

Question 23

Lay-by

Answer 23

A service that allows you to purchase goods when you do not have the money to pay upfront

Question 24

Electronic transfer

Answer 24

EFTPOS (electronic funds transfer at point of sale)

Question 25

Opportunity cost

Answer 25

When you purchase something and you lose the opportunity to purchase something else as you have no more money

Question 26

4 factors of production

Answer 26

Capital, Land, Labour, Enterprise

Question 27

Tangible and non-tangible

Answer 27

Can be touched and incapable of being touched

Question 28

Resource

Answer 28

Something that can be used and can be a good or service

Question 29

Supply

Answer 29

Something you cam give to others

Question 30

Demand

Answer 30

When something is wanted and can be worth a high value

Question 31

Impulse Buying

Answer 31

When you purchase something in the moment later realising that there is no use of it