Test Flashcards
What are needs?
Goods or services that are essential for life.
What are wants?
Things that people want and don’t need.
What are consumers?
A person who purchases goods or services for their own personal use.
What are producers?
A person, company, or country that makes, grows or supplies goods of commodities.
What is supply?
A quantity of goods and services that producers are willing to sell at a given price.
What is demand?
The quantity of goods and services that consumers are willing to buy at a given price.
What is the market?
A regular gathering of people for the purchase and sale of goods.
What is inflation?
Price rises
What is recession?
A downturn in an economy that follows two or more quarters of negative growth; usually less severe than a depression.
What is depression?
A period during which there is a significant slump in economic activity.
What are macroeconomics?
The branch of economics concerned with large-scale or general economic factors, such as interest rates and national productivity.
What are micro economics?
The part of economics concerned with single factors and the effects of individual decisions.
What is primary industry?
Those businesses in which production is directly associated with natural resources
What are natural resources?
Materials or substances occurring in nature which can be exploited for economic gain.
What are capital resources?
Goods made and used to produce other goods and services. Examples include buildings, machinery, tools and equipment.
What are human resources?
The personnel of a business or organization, regarded as a significant asset in terms of skills and abilities.
What impact does drought have on economy?
Farmers produce less crops and lose money
If water is scarce, farmers pay extra to use different sources of water. Prices rise for scarce products.
How does a pay rise to employers earning under $70 000 will impact the economy?
Leads to higher prices
What caused the Global Financial Crisis in the USA?
The financial crisis happened because banks were able to create too much money, too quickly, and used it to push up house prices, eventually debts became too high to pay and it all resulted in a global financial crisis.
What are the two branches of economics?
Micro and macro economics
What does GDP stand for and what does it measure?
GDP stands for Gross Domestic Product
This is the total value (expressed in dollars) of all goods and services produced across the nation in a given year.
What happens to home buyers when interest rates go up?
When they pay back the bank, they have to pay much more than they borrowed which leaves them with less money than intended.
What role does the government have during periods of economic instability for a nation?
- Managing level of macroeconomic demand
- Progressive taxes
- Welfare benefits
- Minimum wages
How a pay rise to employers earning under $70 000 will impact the economy?
Leads to higher prices and more money going into the economy
