Scarcity

What are wants? Give 3 examples.

Goods and services desired by a consumer that are not essential for survival. E.g. Ipod, Wifi, and TV.

What are the five concepts in Maslow's Hierarchy of Needs?

1. Physiological needs 2. Safety and security 3. Love and belonging 4. Self-esteem 5. Self-actualization

What are the 7 security features in money?

1. Two transparent windows. One window is oval-shaped and the other is a curved fern leaf. 2. There is a fern immediately above the clear fern-shaped window. 3. Shadow image of the queen. 4. Individual serial number printed horizontally and vertically. 5. Raised printing on the note. 6. Tiny micro-printed letters "RBNZ" 7. Under an ultraviolet light, the note appears dull.

What are the functions of money?

>Medium of exchange - It enables goods and services to be traded without the double coincidence of wants. >Standard of values - enabling different goods and services to be valued in a common currency. E.g. Dollars. >Store of value - it holds its value over time, enabling people to hold some of their wealth in the form of money. >Deferred payment - is a method which enables debts to be settled at a later date.

For money to work it must be...?

>Recognizable: It should be immediately identifiable as money and should be hard to counterfeit. >Acceptable: People will agree to use the money and know its value. >Portable: Easily carried around. E.g. pocket. >Durable: Must be able to stand up to wear and tear of being used frequently. >Divisible: Must be able to split it up into smaller units. E.g. Dollars into cents >Scarce: A limit on how much is produced so it retains its value.

What is a service? Give 2 examples.

A service is an action that a person performs. E.g. Haircuts and cleaning services.

What is the difference between an economic good and a free good?

An economic good is scarce, demands a price and has an opportunity cost. Whereas, a free good is not scarce, has not price and has no opportunity cost.

Define opportunity cost and give an example.

An opportunity cost is the next best alternative, given up. E.g. When you decide to buy vegetables over fruit.

What are Factors that influence people's values and what are the 6 factors.

Factors that influence people's values are the things that cause people to have the values they do. Factors are: Religion, age, culture, upbringing, wealth and gender.

What are needs? Give 3 examples.

Needs are goods and services a consumer must have in order to survive. E.g. Water, food and shelter.

Goods are? Give an example

Objects with a physical presence that are tangible. E.g. Whiteboard.

What is the definition of scarcity?

Scarcity is he basic economic problem. For there are not enough goods/resources to satisfy everybody's needs and unlimited wants. This means that people have to make a choice as to which needs and wants they shall fulfill and which ones they shall not. For every choice that is made, there will be a next best alternative given up; an opportunity cost, This is why all economic goods have an opportunity cost and this is the means cost of any

Choice is a major aspect of economics. It means...

Selecting something from one or more alternatives.

Define Values and what are the 5 values.

The things we consider important and guide the way we act. Values are: Honesty, integrity, consideration for others, fairness and consideration for the environment.

What is barter, give an example and what is the problem that comes with it?

When goods and services are traded for other goods and services. E.g. Flowers traded with bread. Problem with barter: -Double coincidence of wants; finding someone who wants something that you have, that has something you want. -E.g. You have eggs but want an apple. Then, you have to find someone who has an apple but wants eggs.