Yearly's Flashcards
(42 cards)
Law of demand
As prices increase, demand for that good or service decreases. If the price decreases, the demand for that good or service increases.
Law of supply:
As prices for a good or service increase, the quantity supplied will increase. If the price decreases, the supply of that good or service will decrease.
5 Sector Circular Flow Model
Consumer
Business
Financial (Banks)
Government
Overseas (Import and Exports)
Price Mechanism
refers to the forces of demand and supply in determining the price and quantity of a good or service.
Market Equilibrium:
The point at which the demand and supply curve intersect.
Different types of market:
Retail
Labour
Financial
Stock
Limited Liability:
if the business cannot pay its debts, a shareholder generally loses only the money he or she invested in the business
Unlimited liability:
when a business owner is personally responsible for all the debts of his or her business
Unlimited liability:
when a business owner is personally responsible for all the debts of his or her business
Business cycle:
the cyclical fluctuations in the general level of economic activity
Depression:
a severe contraction in the level of economic activity resulting in many business failures, high and sustained levels of unemployment and sometimes falling prices
Fiscal policy:
the use of the federal government’s budget to achieve economic objectives
Inflation:
a general rise in prices across all sectors of the economy, causing money to lose its value
Interdependence:
a joint dependence between participants in an economy; that is, the reliance of consumers, workers, businesses and governments on each other
Monetary policy:
the Reserve Bank using interest rates to achieve economic objectives
Recession:
a relatively mild contraction in the level of economic activity resulting in reduced spending, rising unemployment and a slow rate of economic growth
Plaintiff
an individual who initiates a case against another party
Prosecutor
a qualified lawyer who represents all levels of government in courts of law
Civil law
legal system based around rights and responsibilities
Criminal law
a legal system that regulates conduct in society to protect the community and provides sanctions against those who commit crimes.
Defendant
an individual whom the case is against or accused of
Adversarial system
a system used to determine facts in the adjudication system
Precedent
a rule that has been established in a prior case and used for future cases
Jury
a group of individuals, usually 12, who have to give a verdict in a legal cases on the basis of evidence
