Economics Fundamentals: Resources, Needs, and Market Questions

What is economics?

The study of how individuals and societies choose to use scarce resources to meet their needs and wants.

What is the key difference between needs and wants?

Needs are vital for survival, while wants improve quality of life but are not necessary for survival.

What are goods?

Tangible items that we consume to satisfy our wants and needs.

What are services?

Intangible activities that we consume to satisfy our wants and needs.

What are the three basic economic questions?

1. What to produce? 2. How to produce? 3. For whom to produce?

What types of resources are identified in economics?

Land, labor, and capital.

How do self-service checkouts affect factors of production?

They change the way labor is utilized and may reduce the need for human cashiers.

What is a cost-benefit analysis?

A process of comparing the costs and benefits of a decision, such as installing self-service checkouts.

What impact do self-service checkouts have on employment?

They may lead to job losses or changes in job roles for cashiers.

What does 'scarce' mean in economics?

Limited availability of resources in relation to the unlimited wants of society.

What is an example of a need?

Food, water, or shelter.

What is an example of a want?

Luxury items like a smartphone or a vacation.

How does Australia answer the three economic questions?

Through market mechanisms, government policies, and resource allocation.

What resources does Qantas Ltd need to operate as an airline?

Airplanes, fuel, skilled labor, and airport facilities.

What resources does Australia have in abundance?

Natural resources like minerals, agricultural land, and water.