Commerce SEM 1 notes 24

Hospital benefits

(sickness + accident)

Accessibility

( disability) , permanently blind, single = $100, couple= combined payment $150

Austudy

25 plus years, full time student, and you must have no other source of income, .

Commonwealth

Federal Government

SSB's

Social Security Benefits

Why do we pay tax

Goes to federal government who then gives to people who are unable to work.

Business

An economic activity aimed to satisfy the goods and services of people's needs

Capital

Goods used to make other goods, e.g Sewing machine

Collective wants

Goods or services that are provided for the whole community e.g hospital, train, park

Commerce

the buying and selling of goods and services between and individual and a business

Complementary wants

Wants that go together; for example, toast with jam or tennis racquet with tennis balls

Consumer

A person who consumers a good or service

Consumer/ private wants

Private wants are those items desired by individuals for their own personal use. Eg. Watch, dress, book

Durable goods

Item that can be used many times. Eg. fridge; car; vacuum cleaner

Enterprise

A business project which operates on its own

Goods

Items that can be seen and touched. ie tangible itemsEg. Fruit; milk; shoes; backpack; mobile

Labour

The human skill required to produce goods and services

Land

Naturally occurring resources such as forests, coal and soil

Money

Any token, of an agreed value, that is accepted as a form of payment in exchange for goods and services

Needs

Items that are necessary for survival.Eg. Food, clothing, shelter

Non-durable goods

Goods that can be used only once. Once used its finished/gone. Eg. Petrol, milk, sometimes called single use

Opportunity cost

What the consumer has to forego if they choose product A over product B. It is the value of the next best alternative that is forgone whenever a choice is made

Primary industry

Extracting raw materials from the land or the sea.eg. Mining; forestry/lumbering; agriculture; fishing

Quaternary industry

The processing of information.Eg. Financial advisor; teacher; real estate agent; IT dept;

Quinary industry

The sector in the economy which produces home-based activities. Eg. Hospitality - café/restaurants; hotel/motel childcare; ironing; cleaning; gardening; crafts such as pottery, jewellery making, painting

Resources

A supply of items that can be combined together to produce a good/service. A supply of items that can be combined together to produce a good/service.

Scarcity

Something which is in short supply. Demand is greater than supply. Therefore, the price is forced higher.

Secondary industry

The processing of raw materials into finished or semi-finished goods - manufacturing. Eg. furniture factory

Services

Tasks performed by a specialist for consumers. Eg. Hairdresser; Dr; Dentist; Architect; Teacher

Substitute wants Items that can be used in place of another items.

Eg. Butter v margarine; jam v vegemite; car v bus

Tertiary industry

The provision of a service. Eg P.O. Assistant; Ambulance;Drs consultation; Dentist; Hairdresser; Butcher

Wants

Items that are NOT essential for survival. They make life easier or more comfortable. May be called luxuries. Eg. Dishwasher; air conditioning; TV; coffee machine; car

Eg. Dishwasher; air conditioning; TV; coffee machine; car