Year 7 Economics

Impulsive consumers...

• Only buy things that they need

• Purchase products that are the best value for money

• Purchase things without much consideration

• Purchase goods and services from the same business

The Circular Flow of Income model represents the:

• Flow of goods and services between consumers and producers

• Movement of people

• Way producers make products

• Way consumers spend their money

What are needs?

• Things that add comfort

• Things that are required in order to survive

• Economic status and lifestyle of your family

• Things you can see and touch

Scarcity is:

• Having limited wants & needs but unlimited resources

• Having unlimited wants & needs but unlimited resources

• Having unlimited wants & needs but limited resources

• Having limited wants & needs but limited resources

A service producer:

• Mainly manufactures goods in factories

• Produces products that often rely on nature

• Provides skills, effort or other intangible benefits to customers

• Is a teacher

What is economics about?

• Money

• Economics is the study that the productions, distribution and consumption

• Work

• The world within itself

What are consumers?

• A person

• A child

• People

• A person who buys a product or service

Define opportunity cost

• The price of an alternative cost

• The value of the best alternative

• What we miss out on when making a decision

• The alternative cost

Loyal consumers:

• Only buy things that they need

• Purchase goods and services from the same business

• Purchase products that are best value for money

• Produce things on an impulse

An industrial producer:

• Produces products that rely on nature

• Is a trades person

• Provides skills, effort or other intangible benefits to customers

• Mainly manufactures goods in factories