Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
10 Economics
Definitions
| Question | Answer |
|---|---|
| Economics | The study of how society manages its scarce resources and how the five sectors within a country interact and make decisions. |
| Needs | The essentials of life, such as food and shelter. |
| Wants | Desires for non-essential items. |
| Economic Problem | The problem of having unlimited wants but limited resources to satisfy them. |
| Scarcity | The limited nature of resources, which causes the economic problem. |
| Economic Resources | Basic items used in all types of production, including natural, capital, human, and enterprise resources. |
| Natural Resources | Gifts of nature such as soil, water, forests, and minerals; includes renewable and non-renewable resources. |
| Capital Resources | All human-made resources used for producing goods and services, including buildings, machines, tools, and equipment. |
| Labour Resources | Mental and physical skills used for producing goods. |
| Enterprise Resources | Combining and using land, labour, and capital to produce goods and services. |
| Household Sector | Individuals in the economy who provide their labour to firms in exchange for income and consume goods and services. |
| Firms Sector | Businesses in the economy that produce goods and services to sell to consumers for revenue. |
| Financial Sector | Banks and other financial institutions that receive savings from households and firms and lend money for investment. |
| Government Sector | Bodies at national, state, and local levels that receive taxation and spend it on public goods and services like schools and roads. |
| Overseas Sector | The economic transactions of an economy with the rest of the world, specifically trade involving exports and imports. |
| Five-Sector Model | A way to show the circular flow of money, goods, and services around different sectors of the economy. |
| Income | Money received in the form of wages, rent, interest, or profit. |
| Expenditure | The purchase of goods and services. |
| Investment | Money the financial sector lends to firms to spend on capital items like machinery and buildings. |
| Output | Goods or services produced by businesses to be sold. |
| Savings | Money saved rather than spent. |
| Taxation | Money paid by households and firms to the government. |
| Exports | Goods and services produced by firms in Australia and sold to other countries. Imports |
| Demand | The quantity of a good or service consumers are willing and able to buy at various prices. |
| Law of Demand | The economic principle that consumers will generally buy more of a product when its price falls. |
| Supply | The quantity of a good or service firms are willing and able to produce and sell. |
| Adult Population | Everyone 16 years or older who is not in the military, jail, or permanently institutionalized. |
| Labor Force | The total number of adults who are either currently employed or unemployed and looking for work. |
| Employed | Adults who work for pay for at least one hour per week, including full-time and part-time workers. |
| Unemployed | Adults who are not working but are available and actively looking for work. |
| Unemployment Rate | The number of unemployed people expressed as a percentage of the total labour force. |
| Labour Force Participation Rate | The labour force as a proportion of the total civilian population aged 15 to 64. |
| Underemployed | Persons who have jobs but want to work more hours. |
| Hidden Unemployed | Individuals who are not in the labour force but would be if job prospects were better. |
| Frictional Unemployment | Unemployment occurring due to people moving between jobs or being new entrants to the labour force. |
| Structural Unemployment | Unemployment involving a mismatch between the skills or locations of workers and the requirements of vacancies. |
| Cyclical Unemployment | Unemployment arising when there is insufficient demand for labour in the economy. |
| Inflation | A sustained, general increase in the price level of goods and services across the economy over time. |
| Demand-Pull Inflation | Inflation occurring when demand grows faster than supply can keep up, leading to "too much money chasing too few goods". |
| Cost-Push Inflation | Inflation occurring when rising production costs (like energy or wages) force businesses to charge more. |
| Consumer Price Index (CPI) | A measure that tracks price changes of a metaphorical 'basket' of goods and services typical for an Australian household. |
| Gross Domestic Product (GDP) | The total monetary value of all goods and services produced within a country's borders in a specific period. |
| GDP per capita | A measure of the standard of living calculated by dividing a country's total GDP by its population. |
| Nominal GDP | The value of production calculated using current prices, which rises with both inflation and real growth. |
| Real GDP | The value of production adjusted for inflation to show genuine increases in output over time. |
| Consumption | Household spending on goods and services, which is the largest component of GDP. |
| Government Expenditure | Public spending on services like schools, hospitals, and roads, excluding transfer payments like welfare. |
| Net Exports | The difference between the total value of a country's exports and the total value of its imports. |
Created by:
user-1838083