history revision economics

• needs, things we have to have in order to survive on earth
• needs; food, water
• wants, things we dont need to live, just something you would like to have
• scarcity = economic problem
• economic problem = scarcity
• goods, things you can touch
• service, things you cant touch
• unlimited wants + limited resources = scarcity
• factors of production, land, labour, capital, enterprise
• markets, any place where buyers and sellers interact
• labour markets, where workers sell their skills, knowledge and effort to employers
• housing markets, where houses are bought and sold
• stock markets, where shares in australia companies are bought and sold
• foreign exchange markets, where different currences from around the world are bought and sold
• Every person in the economy is a consumer
• Household is a term economics use to describe consumers
• Business is a term economics use to describe producers
• The financial sector is only concerned with money
• A significant part of our economic system is government
• Households will spend their income at businesses
• taxes, complusory contribution that is added to the cost of goods and sevices
• essential services in aus, ambulance, road workers, childcare
• externalities, people who are impacted in a postive or negative way by the sale of goods or services between other consumers and producers
• budget, a plan of how you moniter the money that goes into and out of your accounts
• revenue, money that is recived by the government in the form of a tax
• federal budget, outlines what money the australian government expects to recieve and the money the australian government expects to spend
• the federal budget is a plan for the next financial year
• budget surplus, government is collecting more money in taxes then they are spending
• If the federal government's expenditures is larger than it's revenue, the government has a budget deficit
• if the government is spending more that it is collecting in taxes its having a budget defict
• Households want to buy products at the cheapest price they can
• households want to save the most money that they can
• businesses want to make as much profit as possible
• businesses always want to sell their products for the highest price they can