VCE Economics Unit 1 AOS2
Disposable income - CORRECT ANSWER-Income remaining for a person to spend
or save after all taxes have been paid
Substitute goods - CORRECT ANSWER-Products or services that can be used in
place of each other. When the price of one falls, the demand for the other product
falls; conversely, when the price of one product rises, the demand for the other
product rises.
Examples of Substitute goods - CORRECT ANSWER-coke and pepsi
Complementary goods - CORRECT ANSWER-Products and services that are used
together. When the price of one falls, the demand for the other increases (and
conversely).
Examples of complementary goods - CORRECT ANSWER-cars and petrol, printers
and ink, electronic toys and batteries
tastes and preferences - CORRECT ANSWER-the feelings of consumers about the
desirability of different goods.
Influences on tastes and preferences - CORRECT ANSWER-Marketing, Scientific
research, media reports...
Interest rates - CORRECT ANSWER-The cost of borrowing money or the reward for
savings
Population - CORRECT ANSWER-group of individuals that live in the same area
Demographics - CORRECT ANSWER-the characteristics of a population with
respect to age, race, and gender.
Consumer Confidence - CORRECT ANSWER-the extent to which people are
optimistic or pessimistic about the future health of the economy
Contraction of demand - CORRECT ANSWER-The fall in the quantity demanded
due to a rise in price. This is shown as an upward movement along the demand
curve.
Expansion of demand - CORRECT ANSWER-When quantity demanded increases
due to a fall in price.
Disposable income - CORRECT ANSWER-Income remaining for a person to spend
or save after all taxes have been paid
Substitute goods - CORRECT ANSWER-Products or services that can be used in
place of each other. When the price of one falls, the demand for the other product
falls; conversely, when the price of one product rises, the demand for the other
product rises.
Examples of Substitute goods - CORRECT ANSWER-coke and pepsi
Complementary goods - CORRECT ANSWER-Products and services that are used
together. When the price of one falls, the demand for the other increases (and
conversely).
Examples of complementary goods - CORRECT ANSWER-cars and petrol, printers
and ink, electronic toys and batteries
tastes and preferences - CORRECT ANSWER-the feelings of consumers about the
desirability of different goods.
Influences on tastes and preferences - CORRECT ANSWER-Marketing, Scientific
research, media reports...
Interest rates - CORRECT ANSWER-The cost of borrowing money or the reward for
savings
Population - CORRECT ANSWER-group of individuals that live in the same area
Demographics - CORRECT ANSWER-the characteristics of a population with
respect to age, race, and gender.
Consumer Confidence - CORRECT ANSWER-the extent to which people are
optimistic or pessimistic about the future health of the economy
Contraction of demand - CORRECT ANSWER-The fall in the quantity demanded
due to a rise in price. This is shown as an upward movement along the demand
curve.
Expansion of demand - CORRECT ANSWER-When quantity demanded increases
due to a fall in price.
