Commerce

Question 1

Role of consumers

Answer 1

Consumers buy the products that businesses are making increasing the econmony by goods and services

Question 2

Role of Producers (Businesses)

Answer 2

They create the are the owners of the businesses and services and provide income

Question 3

Government Inflows

Answer 3

Taxtaion, consumers

Question 4

Government outflows

Answer 4

Government expenditure, producers

Question 5

What is the Business cycle?

Answer 5

The business cycle depicts the rise and fall in output (production of goods and services)

Question 6

What are the four phases of the business cycle?

Answer 6

Expansion, Peak, Contraction, Trough

Question 7

Price Mechanism

Answer 7

As prices increase, demand for goods or services decreases, the demand for that good or service increases

Question 8

Law of supply

Answer 8

As the prices for a good or service increase, the quantity supplied will increase. If the price decreases, the supply of that good or service will decrease.The law of supply has a direct relationship between quantity and price

Question 9

What is eqilibrium

Answer 9

Eqilibrium is the meeting point of the demand and supply curve