Commerce Basics

• Commerce


  The exchange of goods and services between two or more entities
• Circular Flow of Income


  The unending flow of production of goods + services, income, and expenditures in an economy
• Legal Tender


  The currency accepted by the government of the day
• Commercial economy


  An economy that requires money to enable exchange
• Subsistence economy


  An economy that uses barter to enable exchange
• Individual wants


  Wants desired by individuals for their own personal use
• Collective wants


  Wants desired by the community to improve their lifestyle
• Substitute good


  A good that can be used in place of another good
• Complementary good


  A good that is required to be used with another good
• Good


  An item that is tangible
• Service


  A task performed for you by another person (usually an expert/specialist)
• Primary Industry


  Extracts raw materials from land or sea (e.g. farming, fishing, lumbering)
• Secondary Industry


  The processing of raw material into finished and semi-finished items (factories)
• Tertiary Industry


  Provision of a service (e.g. paramedic, shop assistant)
• Quaternary Industry


  Provision of knowledge (e.g. teacher, financial advisor, stock broker)
• Quinary Industry


  Home-based activity (hospitality, crafts) e.g. café, restaurant, childcare, hotel, motel, pottery, painting
• Durable good


  A good that can be used over and over again and is usually expensive
• Non-durable good


  A good that is often single-use and inexpensive and needs to be replaced often
• What does TM stand for?

  Target Market
• What is commerce?

  The exchange of goods and services between two or more entities