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Define Economics
The study of production and distribution of wealth in society. How people satisfy needs and wants
Define Consumer
A person or group who buys goods and services.
Define producer
A person or a group who supplies goods and services for consumers to buy
Define Need
Something that is required for survival
Define want
Something that you desire but do not need for survival
Define Good
an item that satisfies a human needs or wants services
Define Opportunity cost
The next best option after someone has made a decision
what is living standards
basically what it is like to live in a country, living standard is categorise in two groups material and non-material.
define material living standards
access to physical goods and services. usually use GDP to measure
define non-material living standards
Access to things that cannot be measured in dollar terms, measured by happiness and enjoyment.
House, car, saving. What type of living standards are these categories as?
Material living standards
Freedom of speech, democracy, leisure time and low crime rate are what type of living standards?
Non-material living standards
What are some factors that can impact living standards
countries access to natural resources
stability of government
safety and security
labor productivity
what is GDP
The market vulve of all finished goods and services produced within a country within a year.
What is inflation
When prices of goods and services increases over a period of time
Define CPI
A consumer price index measures changes in the price level.
what can occur inflation?
Demand-pull, cos-push and inflation expectations
What is Labour force
The total number of people in australia who are working or looking for work.
What is the formula labor force participation rate?
what is the law of demand
this law states that as the price of a good or service falls, the quantity of that item which is demanded will increase.
what is the law of supply?
This law states that as the price of a product increases the quantity of that item that will be supplied will also increase.
Note 
Flashcard (22)