Economics - key terminology

Economics explores

• how individuals, groups, businesses and governments interact with each other in markets. It focuses on how resources are allocated to satisfy needs and wants.

• how producers interact with consumers by providing goods and services that meet their needs and wants. It focuses on the skills that contribute to business success.

An example of a need would be

• food for breakfast - cereal, milk

• a school uniform

• shelter - somewhere to live

• all answers are correct

An example of a want is

• bread

• a car costing less than $40 000

• a holiday in a luxury beach resort

• computer games

A (a)   refers to a situation where buyers and sellers interact in the organised exchange of economic resources for goods and services.

An example of a good is

• bread

• visiting a dentist to get your teeth cleaned and polished

• your dog getting a bath and groom at the local dog salon

• all answers are correct

An example of a service is

• your dog being bathed and groomed at the local dog salon

• visiting a dentist to get your teeth cleaned and polished

• visiting an accountant to get your tax done annually

• purchasing groceries at Coles through the checkout so you don't have to pack your own bags

A consumer is

• a person who makes use of goods and services

• a business who produces goods

• a business that offers a service

• no answers are correct

A business that provides a good or service e.g. a farmer who grows corn is called a

(a)  

The supply of goods and services to places which are convenient for consumers (e.g. a truck moving t-shirts to Target) is called

• manufacturing

• consumption

• distribution

• circular flow

An example of a renewable resource is

• coal

• gas

• soil

• water