Economic Growth

Question 1

Define Nomadic

Answer 1

When people move from place to place for food, water and pasture

Question 2

Define barter

Answer 2

A method of trading by which a commodity is exchanged for another commodity

Question 3

Define Guild

Answer 3

An association of people with similar interest

Question 4

Define Mercantile law

Answer 4

The law that governs commercial transactions

Question 5

Define Communism

Answer 5

Political and economic system of social organisation based on shared ownership of property and factors of production

Question 6

Define Capitalism

Answer 6

Economic and social system in which private individuals and businesses produce and exchange goods and services by means of prices and markets

Question 7

Define Central planned economic system

Answer 7

The system where the government plans what will be produced with the available resources and how goods and services will be distributed

Question 8

Define mixed economic system

Answer 8

The system with features of both capitalism and socialism

Question 9

Define mechanisation

Answer 9

The use of machines to do the work of animals or people

Question 10

Define public finance

Answer 10

The branch of economics that deals with government revenue and expenditure and administration of them

Question 11

Define Urbanisation

Answer 11

The movement of people from rural areas to urban cities to look for work or better services

Question 12

Define Poll taxes

Answer 12

Taxes levied per head of adult population

Question 13

What are the 7 stages of early economic development and emergence of trade

Answer 13

Self Sufficiency and dependence on agriculture
Barter, trade and emergence of money
Commodity money
Language, skills and learning
Apprenticeship in the workplace
Wealth, power and accumulation
Surpluses used by landlords to build wealth and support power

Question 14

What are the 5 stages of evolution of markets

Answer 14

Surplus production, trade and transport development
Growth of towns and cities
Specialisation of labour and emergence of guilds
Mercantile law and development of business forms
Technological progress (First, second, third and fourth industrial revolutions)

Question 15

What are the 3 reasons why consumers and businesses save

Answer 15

Results in capital formation and investment
Earn interest
Loans by businesses and consumers can be acquired through savings

Question 16

What are 3 reasons why a nation should save

Answer 16

Capital is a major input in growth
No economic growth can occur without capital
No economic growth = no economic development

Question 17

What are the 4 forms of saving

Answer 17

Corporate savings
Household savings
Government savings
Foreign savings

Question 18

What are the 3 stages of government and regulation of markets

Answer 18

State involvement in trade
Comparative economic systems
Public finance and the emergence of economic policy

Question 19

What are the 6 comparative economic systems

Answer 19

Traditional system - Consumers are also producers
Manorialism - Each village was self-sufficient
Feudalism - Social, military and political system based on exchange of land by king for military service
Mercantilism - Major trading nations base their economies on state interference
Communism - State plans and controls economy
Capitalism - Private individuals and businesses own factors of production

Question 20

Define economic policy

Answer 20

Strategies and measures adopted by a government to manage the economy as a means of achieving its objectives

Question 21

What are the 3 stages of industrial development

Answer 21

Manufacturing
Technological progress
Urbanistaion and migration

Question 22

What are the 4 stages of evolution of economic institution

Answer 22

Limited liability companies
Labour unions
Financial institutions and the emergence of joint stock companies
Globalisation and international economic cooperation