Economies of large-scale production

Are reductions in average per unit production costs that are gained when a firm’s fixed costs (e.g. for product design, equipment, material or advertising) can be spread more thinly across a larger level of output.

consists of institutions that help to organize the production and distribution of goods, services and incomes. There are different types of economic systems — traditional, pure market, purely planned, and mixed economy (prominently market-based economies).

Is the natural situation towards which all free and competitive markets tend to move. It exists only when the quantity demanded exactly equals the quantity supplied, and there is no market glut or shortage.

Is the unique price for a particular good or service that is determined in a market when the quantity demanded is exactly equal to the quantity supplied. At equilibrium, there is no market glut nor shortage.

Factors or conditions of demand

Are the non-price influences on the quantity of a particular good or service that buyers are prepared to purchase or demand at a given price (e.g. changes in disposable income, tastes, confidence, interest rates, seasons, the price of substitutes and complements). When demand conditions change, this shifts the position of the whole demand line horizontally to the right (an increase in the quantity demanded at a given price) or to the left (a decrease in the quantity demanded at a given price) of the original demand line, thereby affecting the equilibrium price.

Factors or conditions of supply

Represent the non-price influences on the quantity of a particular good or service that sellers are prepared to produce or sell at a given price (e.g. production costs like wages, electricity, materials, interest rates, along with government taxes, and climatic conditions). When supply conditions change, this shifts the position of the whole supply line horizontally to the right (an increase in the quantity supplied at a given price) or to the left (a decrease in the quantity supplied at a given price), thereby affecting the equilibrium price

Is an institution where buyers (borrowers) and sellers (lenders) of credit or finance negotiate a price that is called the rate of interest.

Foreign exchange market

Is an institution where buyers and sellers of international currencies exchange or swap currencies at a price that is called the exchange rate.

Is a good that is identical to another and there is no product differentiation. In other words, one good is an exact substitute for another in a given market

International competitiveness

Relates to whether a business or country is able to produce and sell its goods and services profitably at prices that are below those for similar goods or services made abroad.

Is an institution where buyers and sellers of labour resources (i.e. physical power and mental talents of workers) negotiate a price that is called a wage.

States that as the price of a particular good or service rises, the quantity demanded contracts; whereas if the price falls, the quantity demanded expands. There is a movement along the demand line.

States that as the price of a particular good or service rises, the quantity supplied expands; whereas as the price falls, the quantity supplied contracts. There is a movement along the supply line.

Is simply an institution or organisation where buyers (who create a demand for the item) and sellers (who control the supply of the item) of an individual good or service negotiate an agreeable price.

Exists where the operation of demand and supply, and the price system, cause resources to be allocated in ways that reduce the general satisfaction and wellbeing of society. For example, some socially beneficial goods may be under-produced, while socially undesirable goods may be overproduced in the absence of government intervention.

Exists when a firm has much control or influence in a market (it is a price maker) because competition is limited and it has a monopoly or is an oligopoly.

Occurs at a price that is below the equilibrium price, where the quantity demanded is greater than the quantity supplied.

Refers to the nature and level of competition that exists in particular markets (e.g. perfect or pure competition, monopolistic competition, oligopoly and perfect or pure monopoly).

Market surplus or glut

Occurs at a price that is too high and above the market equilibrium price. Here the quantity demanded is less than the quantity supplied.

Material living standards

Refer to how well-off an individual or society is when measured in terms of its income, production or consumption levels of goods and services per person per year.

Is the type of economic system found in Australia and many other countries. Here, most decisions about the allocation or use of resources are generally made by consumers through the market or price system, while most businesses or the means of production are owned by private individuals (i.e. capitalism or private enterprise are dominant).

Monopolistic competition

Occurs when there are quite a few sellers of each product. These products are similar but not identical, since each seller’s product is differentiated from that of its rivals by particular features including brand names and design.

Movement along the demand line

From one point to another is caused by a rise or fall in the level of prices. Following the law of demand, a rise in price causes demand to contract, while a fall in price causes demand to expand.

Movement along the supply line

From one point to another is caused by a rise or fall in the level of prices. Following the law of supply, a rise in price causes supply to expand, while a fall in price causes supply to contract.

Non-rural commodity markets

Are institutions where buyers and sellers of raw materials extracted from the ground, negotiate prices.

Exists when the level of competition is limited because a few large firms control the output of an industry.

Is a precondition for a pure market economy. Here, buyers and sellers have complete and accurate information so they can make rational decisions.

Perfect or pure competition

Exists when there are many sellers of a good or service in a market and each seller has little market power in setting prices.

Perfect or pure monopoly

Occurs when competition in a particular industry or market is weak, and a single firm controls the output of an entire industry.

Refer to monopoly-type markets where firms face little or no competition and can set their own prices.

Those firms operating in strongly competitive markets where there is strong competition and firms have no power to set the prices they receive

Product differentiation

In a given market exists when one good is not an exact substitute for another because of some distinguishing product features. This gives sellers more market power.

Is an institution where buyers and sellers of land, houses, units and industrial sites (property) negotiate a price.

Refers to the quantity of goods or services that can be bought with each dollar of income. It is affected by prices and inflation.

Is a concept that compares the price level of one good or service against the price of another (e.g. the price of lamb versus the price of chicken). Changes in the relative price of one good against that for another are likely to affect relative profits and hence decisions made about how resources will be used or allocated.

Is a concept that compares profits gained from producing one particular good or service against those gained from producing another. This is affected by changes in relative prices. Relative profitability is used to help guide most business decisions.

Rural or agricultural commodity markets

Are institutions where buyers and sellers of farm produce (e.g. grains) negotiate prices.

Shift in the position of the demand line

Is caused by changes in non-price conditions affecting the quantity of a good or service bought at any given price.

Shift in the position of the supply line

Is caused by changes in non-price conditions affecting the quantity of a good or service sold at any given price.

Is an institution where buyers and sellers of company stocks negotiate share prices.

Represents the amount of a good or service that sellers are prepared to produce or sell at a given price.

Demonstrates the relationship between PRICE and Quantity supplied

ECONOMICS

Flashcard

•

Business

•

12th Grade

•

Practice Problem

•

Hard

Baylen Collins

FREE Resource

Student preview

49 questions

Show all answers

FLASHCARD QUESTION

Front

Barriers to entry

Back

Limits the number of producers in some markets and may reflect high start-up costs, government regulations and product patents.

FLASHCARD QUESTION

Front

Carbon trading market

Back

Is a scheme designed to put a price on pollution by firms and consumers of goods and services. Polluters must have permits or carbon credits to cover each tonne of CO₂ emissions. The price of these offsets is determined by demand relative to the supply. By establishing a price and making pollution costly and less profitable, polluters change their behaviour and find cleaner products and production methods.

FLASHCARD QUESTION

Front

Community market

Back

Is a local institution, perhaps in a suburb or small town, where buyers and sellers of crafts, foods, used wares and plants meet to negotiate prices.

FLASHCARD QUESTION

Front

Consumer sovereignty

Back

Is where the particular types of goods and services produced reflect what individual consumers purchase, rather than this decision being made through government planning.

FLASHCARD QUESTION

Front

Cryptocurrency markets

Back

Involves buyers and sellers of virtual or digital currencies. Often trading these currencies is seen as an investment where profits can sometimes be made as a result of changes in their price over a period of time.

FLASHCARD QUESTION

Front

Demand

Back

Represents the amount of a good or service that consumers are prepared to purchase at a given price. The quantity demanded varies inversely with price.

FLASHCARD QUESTION

Front

Demand–supply diagrams

Back

Are used to illustrate, hypothetically, how buyers (demanders) and sellers (suppliers) of a particular type of good or service help determine the market price at which the item sells.

Access all questions and much more by creating a free account

Create resources

Host any resource

Get auto-graded reports

Continue with Google

Continue with Email

Continue with Classlink

Continue with Clever

or continue with

Microsoft

Apple

Others

Already have an account?

Similar Resources on Wayground

40 questions

19 3D graphics

Flashcard

•

University

40 questions

Collaboration in Software Development

Flashcard

•

11th Grade

49 questions

Research and Investigation Concepts

Flashcard

•

11th Grade

51 questions

Audit of Airlines

Flashcard

•

University

34 questions

6.1 Introduction to the Atmosphere

Flashcard

•

11th - 12th Grade

45 questions

S1 Final Review (Chem)

Flashcard

•

KG - University

47 questions

Healthy Living, OET B1,2.

Flashcard

•

11th Grade - University

44 questions

Vocabulary Flashcards

Flashcard

•

University

Popular Resources on Wayground

15 questions

Fractions on a Number Line

Quiz

•

3rd Grade

20 questions

Equivalent Fractions

Quiz

•

3rd Grade

25 questions

Multiplication Facts

Quiz

•

5th Grade

54 questions

Analyzing Line Graphs & Tables

Quiz

•

4th Grade

$fractions$

22 questions

fractions

Quiz

•

3rd Grade

20 questions

Main Idea and Details

Quiz

•

5th Grade

20 questions

Context Clues

Quiz

•

6th Grade

15 questions

Equivalent Fractions

Quiz

•

4th Grade

Discover more resources for Business

13 questions

BizInnovator Startup - Experience and Overview

Quiz

•

9th - 12th Grade

15 questions

SMART Goals Setting

Quiz

•

9th - 12th Grade