Economics YR 9

Semester 1 Exam Revision

Spontaneity

Choosing the first option that comes to mind

Compliance

Going along with other’s expectations

Procrastination

Postponing decisions until options are limited

Agonising

Accumulating overwhelming information for decision-making

Intention

Opting for a choice that is intellectually and emotionally satisfying

Desire

Choosing the best option regardless of risks

Avoidance

Selecting an option to prevent the worst outcome

Security

Opting for a choice that brings some success and offends fewer people

Synthesis

Choosing an option with good chances of success and personal preference

Personal Budget

A financial plan allocating income to expenses, savings, and debt repayments

GDP (Gross Domestic Product)

Total value of goods and services produced in a country

Pay slip

Document ensuring correct pay and entitlements, Gross pay is before deductions, Net pay is the final amount

Financially dependent

Fully reliant on someone else for necessities

Financially independent

Has enough income to cover living expenses without relying on formal employment

Fixed Expenses

Costs that remain constant (e.g., rent, car payment)

Flexible Expenses

Costs that vary (e.g., dining out, groceries)

Factors influencing decision-making

Values, peers, family, age, feelings, habits, risks & consequences

Risks in decision-making

Personal risks, income risk, interest-rate risk

Worker, Consumer, Businesses

Main participants in the Australian Economy

Circular Flow Model

Illustrates economic transactions between households, firms, government, and the rest of the world

Factors influencing production

Demand, resources, government policies

Economic activity

Involves transactions affecting living standards

Law of supply

Relationship between price and willingness to supply

Factors affecting supply

Cost of production, technological change, climate conditions

Law of demand

Inverse relationship between price and quantity demanded

Factors affecting demand

Disposable income, interest rates, consumer preferences

Injections and Leakages

Influence circular flow model by affecting economic growth

Injection

Putting money into the economy (exports, investments, government spending)

Leakage

Taking money out of the economy (imports, savings, taxation)