How much do you remember about economic systems?

Needs are...

• Anything that someone desires or would like to have. They are not essential for human survival. They can serve a useful purpose, or simply make us happy.

• Things that are essential for human survival such as food, shelter (housing) and healthcare.

• Things that are essential for human survival such as Netflix, Snapchat and high-speed wifi

• Anything that Aidan desires or would like to have. They are not essential for his survival but can serve a useful purpose, or simply make him happy.(like coffee!)

Land, labour or capital (money or wealth) that can be used to produce products (like goods or services) is...

• Externalities

• Financial markets

• Means of production

• Opportunity cost

Adding 16% on top of the original $500 borrowed is an example of...

• Profit

• Debt

• Inflation

• Interest

Opportunity cost is...

• The potential benefit that an individual, investor or business misses out on by choosing one option instead of another.

• The potential wealth that a government misses out on by choosing one option instead of another.

• When debt is greater than equity

• When equity is greater than debt

Services are...

• Something tangible (a physical item) that is able to be bought and sold, like cash money or gold.

• Goods that are in demand.

• Specialisation in action.

• Something intangible (it isn’t a physical item) that is performed for the benefit of someone else, like house cleaning, legal advice or lawn mowing.

Supply is...

• The total amount of equity available to a potential borrower.

• The total amount of a particular good or service that is available to customers.

• The total debt a financial institute (like a bank) is able to hold.

• The desire of consumers to purchase a particular good or service at a certain price.

Demand is...

• The total amount of equity available to a potential borrower.

• The total amount of a particular good or service that is available to customers.

• The total debt a financial institute (like a bank) is able to hold.

• The desire of consumers to purchase a particular good or service at a certain price.

An example of an externality would be...

• Shares in a renewable energy company bringing profit to an investor

• Interest in a particular product leading to increased demand

• Customers of a multivitamin company having improved immune systems

• The burning of oil sold by Mobil contributing to human-made climate change

Suzy earrings experience an increase in demand for their products, so decide to shift production to Vietnam, where they can make their earrings for less. This is an example of...

• Means of production

• Financial markets

• Economy of scale

• Specialisation

An example of profit is...

• Tony sells 400 televisions for $899 each.

• After rent, wages and insurance and tax, Leo keeps $450 after selling two paintings.

• Larissa makes $275 after one day's trading.

• Stock in Mary's company rises by 3.74% in one year.