Define Taxes
Taxes are a compulsury contribution to the state revenue
Define the Federal Budget
The Federal Budget is the document that sets out the estimated revenues and expenditures of the treasurey following the financial year.
Define Government Intervention
Government intervention is an action performed by the government that seeks to change decisions made by individuals, groups and organisations about economic or social matters.
Examples of Changes to work
•Attitudes to work•Technology taking over some jobs•New jobs being created due to artificial intelliegence•Communication changes•Longer life expectancy•Automation with machines
Define Needs
Needs are anything necessary for modern life
Define Wants
Wants are goods or services people desire, but not require.
What does artificial intelligence effect in Economy
It can increase the efficiency with which things are done and vastly improve the decision-making process by analysing large amounts of data. It can also spawn the creation of new products and services, markets and industries, thereby boosting consumer demand and generating new revenue streams.
Define Profit
Profit is when costs are less than the financial gain.
What are the three types of economies
Subsistence Economy, Planned Economy and Mixed Economy
Define Subsistence Economy
A subsistence economy is an economy directed to basic subsistence rather than to the market
Define Planned Economy
A planned aconomy is an economy which producation, investment, price and ancomes are determinned centrally by the government.
Define Mixed Economy
A mixed economy is an economic system which combines both aspects of socialism and capitalism together.
What are some examples of Subsistence Economies?
Some examples of Subsistence economies include Artisan Fishing, labour-intensive agriculture and grazing livestock
What are some examples of Planned Economies?
Some examples of Planned Economies include market socialism in the former Yugoslavia, the Socialist Market Economy in Vietnam, or the economic reforms in China under Deng Xiaoping.
What are some examples of Mixed Economies?
Some examples of mixed economies include United States Economic system, Russian economic system, and Chinease economic system
Define Scarcity
Scarcity is the economic problem of limited resources and unlimited wants from individuals.
Define Externality
An externaliy is an indirect cost or bemefit to an uninvolved third party that arises as an effect of another paties activity
Draw the circular flow model
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What are the four types of makets?
The four different types of markets are the labour market, the foreign exhange market, the housing market and the stock market.
What is exhanged in the Labour Market?
Labour is exchanged in return for a wage
What is exchanged in the Foreign Exchange Market?
Different currencies from around the world are bought and sold
What is exchanged in the housing Market?
Houses are bought and sold
What is exchanged in the stock market?
Shares are bought and sold
As price increases, supply ______
increases, because the more money you have, the more you can provide
As price decreases, supply ____
decreases
As price increases, demand ____
- Decreases, because it's expensive
As price decreased, demand _____
increases because it's cheap
What is an equilibriam
The Equilibriam in economics is where the supply and demand chart meet
Define Socialism
The belief that production, distribution and exchange is owned by the community
Define Capitalism
Where a countries trade is owned by a private owners for profit