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Flashcards in Humanities 8 Deck (19):

What is a need and a want?

Things that are essential for survival whilst wants are not essential but would make it better


What is expenditure?

Money out laid for goods and services


What is a budget?

A limited amount of money that must be divided between needs


What is a consumer?

Someone who buys goods and services for personal use


What are goods and what are services?

Goods are objects bought by a consumer whilst services are things consumers pay others to do for them


What is the demand curve and the law of demand?

The demand curve indicates how much of a good or service consumers will buy at a certain price. The law of demand states that as the price goes up, consumers will demand less


What is the supply curve and the law of supply?

The supply curve indicates how much producers will supply at a given price. The law of supply states that the higher the price the more product will be supplied


What is the Equilibrium?

The point of which supply and demand are equal. Suppliers are selling all the goods they have produced and consumers are getting all the goods they demand


What is market price?

The price for which a good or service is offered in the market place. In an efficient economy that is the equilibrium


What is demand and supply?

Demand is how many people want it and supply is how much is being produced


What is the difference between surplus and shortage?

Surplus is when you have an amount over that of which is needed versus shortage which is when you have less than being demanded


What is a subsistence economy?

The community only produces what it needs to survive and so has none left for trade. Examples are Inuit in Greenland


What is a market capitalist economy?

The market largely determines the economic depictions of that nation but the government still has a say. Examples are Australia and America


What is a market socialist economy?

The government largely determines economic decisions but are slightly effected by the market


What is a planned economy and what are examples?

Almost all economical decisions are made by an authorised person or group. Examples are North Korea


What is superannuation?

Superannuation is a proportion of your salary that is put away into an investment account that you can only access when retired. This is so you have money to live on June there is no longer a salary coming in but the bills continue.


What are disadvantages and advantages in saving?

The advantages of saving money are that it can be kept future use and in for use in cases of emergencies. Money saved in bank accounts earn interest and keeps it safe from burglary. It is also easy to keep record of accounts since banks keep statements of transactions. The disadvantages of saving money is that it does take longer and you need to control what you buy.


What are advantages and disadvantages in using credit cards?

Advantages of credit cards are ease of purchase and emergency use. It allows you to get things quicker and easier than it would be to save. Disadvantages of credit cards are high interest rates, debt, overspending and possible scams.


What is budgeting?

It is the process of creating a plan on how you will spend your money. It allows you to determine in advance whether you would have enough money to do the thing you need and want.