Year 7 Economics and Business Revision

Vocabulary practice flashcards covering key concepts from Year 7 Economics and Business Term 4 revision slides, including supply and demand, markets, government intervention, and taxation.

Economics

The study of the production, distribution, and consumption of goods and services.

Needs

Goods and services that are necessary for survival, such as food and water.

Wants

Goods and services that people desire but are not necessary for survival.

Goods

Physical products that satisfy needs and wants, such as a phone, hamburger, or hairdryer.

Services

Activities that satisfy needs and wants, such as cleaning, hairdressing, or dental cleaning.

Scarcity

A condition that occurs when demand for something is greater than its availability.

Producer

A person or business that makes a good or provides a service.

Consumer

A person or group who buys or uses goods and services to satisfy their needs and wants.

Costs

The price, time, effort, or other drawbacks lost when making a decision.

Benefits

The positive gains or advantages of making a decision.

Opportunity cost

What you have to give up to purchase what you want.

Markets

Places where consumers (buyers) and producers (sellers) come together to exchange goods and services for money.

Retail market

The final stage of the economic supply chain where businesses sell goods, products, or services.

The labour market

The economic arena where workers supply their skills and time, and employers demand labour by offering jobs and wages.

Stock market

A digital and physical network where investors buy and sell shares of publicly traded companies.

Financial market

Any platform or system that connects buyers and sellers to trade financial assets such as stocks, bonds, and currencies.

Government intervention

The process where the government becomes involved in the economy when markets do not work as well as they should.

Taxes

Extra money collected by the government on goods or services, making them more expensive.

Subsidies

Money given by the government to consumers or producers to make something cheaper.

Demand

The amount of a good or service that consumers are willing to buy at a certain price.

The Law of Demand

An economic rule stating that when price goes up, the amount demanded goes down, and when price goes down, the amount demanded goes up.

Supply

The amount of a good or service that producers are willing to sell at a certain price.

The Law of Supply

An economic rule stating that when price goes up, the amount supplied goes up, and when price goes down, the amount supplied goes down.

Equilibrium

A market condition occurring when the amount supplied equals the amount demanded, resulting in neither a shortage nor a surplus.

Shortage

Occurs when demand for a specific good or service is more than producers have available.

Surplus

Occurs when producers have extra stock of a specific good or service that nobody wants to buy.

Scam

An incident where someone tricks you into providing personal or financial information so they can steal from you.

Income tax

Australia's prime example of a direct tax paid by individuals and businesses, often progressive so higher earners pay a larger percentage of income.

Goods and Services Tax (GST)

Australia's main indirect tax, applied to the consumption of goods and services at a rate of $10\%$ of the price.