Economics Y10 Markets and Money KW test

Question 1

market

Answer 1

a way of bringing together buyers and sellers to buy and sell goods and services

Question 2

market economy

Answer 2

an economy in which scarce resources are allocated by the market forces of supply and demand

Question 3

primary sector

Answer 3

the direct use of natural resources

Question 4

secondary sector

Answer 4

all activities in an economy that are concerned with either manufacturing or construction

Question 5

tertiary sector

Answer 5

all activities in an economy that involve the idea of a service

Question 6

factor market

Answer 6

a market in which the services of the factors of production are bought and sold

Question 7

product market

Answer 7

a market in which final goods and services are offered to consumers, businesses and the public sector

Question 8

demand

Answer 8

the willingness and ability for a consumer to purchase a good or service at the given price in a given time period

Question 9

law of demand

Answer 9

for most products the quantity demanded varies inversely with its price keeping all other factors affecting demand constant

Question 10

individual demand

Answer 10

the demand for a good or service by an individual consumer

Question 11

market demand

Answer 11

the total demand for a good or service found by adding together all individual demands

Question 12

tax

Answer 12

a compulsory payment to the government

Question 13

subsidy

Answer 13

an amount of money the government gives directly to firms to encourage production and consumption

Question 14

expansion in demand

Answer 14

downwards movement along the same demand curve: the price of the good or service decreasing and the quantity demanded increasing

Question 15

contraction in demand

Answer 15

upwards movement along the same demand curve: the price of the good or service rising and the quantity demanded decreasing

Question 16

supply

Answer 16

the ability and willingness of forms or producers to provide a good or service at each price in a given time period

Question 17

law of supply

Answer 17

for most products the quantity supplied varies directly with its price, keeping all other factors affecting supply constant

Question 18

expansion in supply

Answer 18

upwards movement along the same supply curve: the price of the good or service increasing and the quantity supplied increasing

Question 19

contraction in supply

Answer 19

downwards movement along the same supply curve: the price of a good or service decreasing and the quantity supplied decreasing