Economics

Question 1

What is a good?

Answer 1

An item or product that is produced, bought and sold to satisfy a consumers needs or wants

Question 2

What is a service?

Answer 2

An activity or benefit provided in exchange for money to satisfy the needs or wants of consumers

Question 3

What is a need?

Answer 3

Something essential for survival or basic wellbeing

Question 4

What is a want?

Answer 4

Something that is desired but not essential for survival

Question 5

What is productivity?

Answer 5

The measure of how efficiently resources such as time, labour or materials are used to produce goods or services e.g. a factory producing 500 cars per day

Question 6

What is a resource?

Answer 6

anything that can satisfy wants or needs and can be used to produce goods and services

Question 7

What is a renewable resource?

Answer 7

A resource that can be replenished naturally overtime and is sustainable

Question 8

What is a non renewable resource?

Answer 8

A natural resource that can’t be replenished on a human timescale and it can deplete overtime

Question 9

What are the two main types of resources?

Answer 9

Cultural and natural

Question 10

What is a natural resource?

Answer 10

A raw material or substance found in the natural environment that is used by humans

Question 11

What is a cultural resource?

Answer 11

Physical or intangible elements that have significance to a communities history and are preserved for their cultural value

Question 12

What is inflation?

Answer 12

When prices go up making things more expensive overtime

Question 13

What is Gross Domestic Product (GDP)?

Answer 13

The total of all goods and services produced in a country over a specific period of time

Question 14

What is an example of land production?

Answer 14

Growing crops

Question 15

What is an example of labour production?

Answer 15

A teacher teaching students

Question 16

What does scarcity mean?

Answer 16

When there isn’t enough of something to go around because our needs and wants are bigger than what we have

Question 17

What is allocation?

Answer 17

The distribution of resources based on needs

Question 18

What is opportunity cost?

Answer 18

What you give up when you choose one option over another

Question 19

What is supply and demand?

Answer 19

The relationship between how much of a product is available(supply) and how much people want to buy(demand) determines the price in the market

Question 20

What is the difference between a substitute good and a complementary good?

Answer 20

A substitute good is one that can replace another (samsung and apple) complimentary is one that can be used with the good (apple and airpods)

Question 21

What are the main two types of goods?

Answer 21

Complimentary and substitute

Question 22

What is the difference between a customer and a consumer?

Answer 22

A customer is someone who purchases a product or service but may not use that, while a consumer is the person who actually uses or consumes it but may not buy it

Question 23

What is the law of supply?

Answer 23

As the price of a good or service increases, the quantity supplied by producers also increases, and as the price decreases, the quantity supplied decreases

Question 24

What is the law of demand?

Answer 24

As the price of a good or service decreases, the quantity demanded by consumers increases, and as the price increases, the quantity demanded decreases

Question 25

What are the factors of production?

Answer 25

Land, Labor, Capital, (Entrepreneurship is not always there)

Question 26

What is an example of capital production?

Answer 26

A construction company using machinery and tools, like cranes and bulldozers to build a bridge

Question 27

Because of scarcity, governments need to make
decisions about the allocation of resources what does this mean?

Answer 27

Because of scarcity governments must make choices on how to allocate limited resources such as money, labor, and raw materials among competing needs and priorities in order to maximize community wellbeing