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Flashcards in Economics Test Deck (33)
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1

Economics

The study of how people choose to use scarce resources.

2

Four factors of production

Land
Labour
Capital
Enterprise

3

Equilibrium

When supply and demand are in balance this is market equilibrium.
-> quantity demanded=quantity supplied

If demand is greater than supply there is going to be a shortage of goods

If supply is greater than demand there is going to be oversupply

4

Scarcity

Unlimited wants or needs for limited goods and services.

5

Economic good

Are scarce and not enough available to meet our wants.

6

Free goods

Are not scarce and there is enough available to meet our wants.

7

Difference between producer and consumer

Producers make goods and services
Consumers buy and use the products

8

How does scarcity occur

Scarcity occurs when people want more than there is available

9

To stop us from buying on impulse we

Should create a list and keep to a budget to avoid such mistakes

10

Types of market structure

Monopolistic- clothing industry
Pure or perfect- fruit and vegetables
Duopoly- Coles and Woolworths
Oligopoly- car manufacturing
Monopoly- Australia post

11

Fraud/Scam

A scheme intended to gain personal and financial information

12

Consumer

Someone who buys and uses goods and services

13

Producer

Someone who provides goods and services

14

Good

Physical things that you can see and touch

15

Service

Actions that other people might perform for us and are not physical items

16

Market

A place where people exchange goods and services

17

Law of demand

If the price increases the demand decreases and vice versa
-> demand rises as price falls

18

Law of supply

As the price increases the quantity also increase
-> the higher the price the higher the quantity supplied

19

Consumer demand

Price
Quality
Brand
In trend
Peer pressure
Advertising

20

Need

Something we can't do without
E.G. Food, water, shelter

21

Want

Not absolutely necessary

21

Demand

Willing and able to buy to buy at a particular price

21

Demand schedule

A table of the quantity demanded of a good at different price levels
->Used to make a demand curve (demand curve always goes down)
-> TALL: Title, Axis, Labels, Line

22

Supply

Is the quantity of goods and services a producer is willing to make

23

Circular flow of income

Government
Household
Financial
Overseas
Business/producer

24

Australian consumer law

Protects the rights of both buyers and sellers

26

Acceptable quality

Suitable for purpose
Safe to use
Last a reasonable time
Of acceptable appearance (fit description)

{if not we have the right to the 3r's}

27

3R's

Replacement
Repair
Refund

29

Product Recall

Retrieving goods from consumers with compensation

30

ACCC

Australian Competition and Consumer Comission
-> role is to protect consumers from unsafe products and inform them of potential risks and regulate industry