Commerce - S1 Flashcards
Opportunity Cost
Is the value of the next best alternative use of resources. What you lose when you chose something else
Relative Scarcity
When a particular resource (Labour, Capital, Natural) is in short supply in one or more areas when compared to the demand of it
Needs
Goods or services that are necessary for survival
Wants
Goods or services to improve quality of life
Labour Resource
A resource in the form of someone doing something, providing a service. Examples- Bricklayer, Chef, Store Manager
Capital Resource
Something that is manufactured to produce/transport goods and services for purchase. Examples- Machinery, building, roads
Natural Resource
Resource that comes from nature. Examples- Tree, coal, metals
Traditional/Subsistence Economy
An economic system in which people produce enough for their own survival. Money isn’t used
Free Market Economy
economic system, private individuals exchange g+s with consumers in a free market, they keep the profit.
Planned Economy
All productive resources are owned by the government on behalf of the people. No private enterprise in system. Government determines the what, how and whom in production.
Planned Economy
All productive resources are owned by the government on behalf of the people. No private enterprise in system. Government determines the what, how and whom in production.
Mixed Economy
An economic system in which resources are owned by both private enterprises and government. What, whom and how of production determined by both
Consumers
Buys goods and services
Pays Taxes
Earns Wages
Producers
Produce goods and services
Goal to make profit
Pays Wages/Taxes
Government
Chargers taxes
Pays wages
Spends on goods and services
Financial Institutions
Hold Savings
Lends money
Goal to make profit
Concept of Production?
The process of making or selling goods or services to satisfy human needs
Free Enterprise
An economic system in which private businesses operate for more profit with mostly no government control
Entrepreneurship
The act of setting up a business in search of profit
Reasons for decline of Aus car industry
Pressure from imports
Production of cars in high volumes didn’t meet demands
Increased competition from overseas
Commodity
Is a natural resource such as oil, coal and copper
Representative Democracy
A political system based on citizens voting to elect representatives
Liberal Democracy
A form of government in which authority is vested in the citizens
Parliamentary Democracy
System of government in which people elect representatives to a parliament to make laws.
