Economics & Markets
Economics is the study of how individuals, businesses, and governments make choices about scarce resources. Understanding markets helps Year 11 students become informed citizens and make better financial decisions.
What You Need to Know
Key Concept Diagram
Scarcity means resources are limited but wants are unlimited — this is the core economic problem
Markets are places (physical or digital) where buyers and sellers exchange goods and services
Price is determined by supply and demand: more demand = higher price; less supply = higher price
The Australian economy is a mixed economy: both private enterprise and government play key roles
Key Vocabulary
scarcity
The condition of limited resources relative to unlimited wants
market
Any arrangement where buyers and sellers exchange goods, services, or resources
supply
The amount of a product that producers are willing and able to sell at different prices
demand
The amount of a product that consumers are willing and able to buy at different prices
Knowledge Check
Select the correct answer for each question. Click "Check Answer" to see if you are right.
Question 1
What is the fundamental economic problem?
Question 2
According to the law of demand, when price rises (all else equal):
Question 3
In a free market, what determines the price of a product?
Question 4
Australia has a "mixed economy". This means:
Question 5
If a popular toy becomes scarce before Christmas, what is MOST LIKELY to happen to its price?
Key Concepts Summary
- ●Scarcity means resources are limited but wants are unlimited — this is the core economic problem
- ●Markets are places (physical or digital) where buyers and sellers exchange goods and services
- ●Price is determined by supply and demand: more demand = higher price; less supply = higher price
- ●The Australian economy is a mixed economy: both private enterprise and government play key roles