Year 10 Economics Semester 1 Exam Revision Flashcards

A set of vocabulary flashcards covering the core concepts of Year 10 Economics, including the economic problem, market forces, inflation, and economic growth indicators.

The Economic Problem

The basic economic dilemma of having limited resources to satisfy unlimited wants, which leads to scarcity.

Scarcity

The condition that arises because society does not have enough resources to produce all the things people would like to have; characterized by limited resources vs. unlimited wants.

Opportunity Cost

The value of the next best alternative that is given up or foregone when a choice is made.

Factors of Production

The resources used to produce goods and services, categorized into Land, Labour, Capital, and Enterprise.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various price points.

Supply

The quantity of a good or service that producers are willing and able to provide to the market at various price points.

Law of Demand

An economic law stating that as the price of a product increases, the quantity demanded decreases, and as the price decreases, the quantity demanded increases.

Law of Supply

An economic law stating that as the price of a product increases, the quantity supplied increases, and as the price decreases, the quantity supplied decreases.

Change in Quantity Demanded/Supplied

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Change in Demand/Supply

A shift of the entire curve to the left or right caused by non-price factors.

Market Equilibrium

The point where the quantity demanded by consumers serves to exactly match the quantity supplied by producers.

Surplus

A market condition that occurs when the quantity supplied is greater than the quantity demanded at the current price.

Shortage

A market condition that occurs when the quantity demanded is greater than the quantity supplied at the current price.

Inflation

A sustained increase in the general price level of goods and services in an economy over a period of time.

CPI (Consumer Price Index)

A measure that examines the weighted average of prices of a basket of consumer goods and services to track inflation.

Demand-pull Inflation

Inflation that occurs when the total demand for goods and services exceeds the economy's ability to produce them.

Cost-push Inflation

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Interest Rates

The cost of borrowing money or the reward for saving, which typically rises during periods of high inflation.

GDP (Gross Domestic Product)

The total market value of all final goods and services produced within a country during a specific period.

Economic Growth

An increase in the amount or value of goods and services produced by an economy over time, typically measured by the percentage change in GDP.