Economicsc (copy)

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.