Ultimate Econs year 8 guide (copy)

Scarcity

The economic problem of having unlimited needs and wants, but only a limited amount of resources to fulfill them.

Opportunity Cost

The value of the next best alternative that is given up when a choice is made.

Demand

The quantity of a good or service consumers are willing and able to buy.

Law of Demand

States that as the price of a good or service decreases, the quantity demanded increases.

Supply

The quantity of a good or service producers are willing and able to sell.

Law of Supply

States that as the price of a good or service increases, the quantity supplied also increases.

Equilibrium

The point where demand equals supply, also known as the clearing price.

Surplus

Occurs when supply exceeds demand, often due to a price that is set too high.

Shortage

Occurs when demand exceeds supply.

Traditional Economy

An economic system where production is aimed at local survival without money or profit motives.

Market Capitalist Economy

An economic system where private individuals own productive resources and decisions are guided by consumer demand.

Planned Socialist Economy

An economic system where the government owns most productive resources and makes all production and distribution decisions.

Taxation

Money that governments collect to fund public services such as education, healthcare, and infrastructure.

Income Tax

The main source of tax in Australia, which increases with higher earnings.

GST (Goods and Services Tax)

A flat 10% tax added to most goods and services sold in Australia.

Casualisation

The trend of employing workers on short-term contracts or casual bases instead of permanent positions.

Gig Economy

An environment where workers operate as independent contractors and perform tasks directly for consumers.

Core Drivers of Modern Work

Advances in technology, outsourcing of labor, evolution of communication tools, and rising casualisation of employment.