Economies

Question 1

Define goods

Answer 1

Physical objects or merchandise

Question 2

Define services

Answer 2

The performance of any duties or work for another person; a helpful or professional activity.

Question 3

Define economy

Answer 3

The system of production, consumption and trade of goods and services.

Question 4

Define economic depression

Answer 4

A time of unemployment, low prices, low profits, and loss of business.

Question 5

Define market

Answer 5

The area of trade or business.

Question 6

Define supply and demand

Answer 6

The relationship between the production and consumption of goods and services.

Question 7

Define and give an example of traditional economy

Answer 7

A traditional economy is an economic system in which decisions are based on customs, beliefs, or religions, within a strong social community.

E.x Use the cow for milk or share the meat with the community

Question 8

Define and give an example of command economy

Answer 8

A command economy is an economic system in which the government controls all production and distribution of goods and services.

E.x The government takes your herd and puts you to work looking after them.

Question 9

Define and give an example of market economy

Answer 9

A market economy is a system in which business and consumers decide what they will produce or purchase.

E.x You buy and build up a herd of dairy and beef cattle to sell.

Question 10

Define and give an example of mixed economy

Answer 10

An economy that combines different economic systems, such as the market and command systems.

E.x it’s still your herd but you feel mixed up with government regulations.

Question 11

What happens when supply is greater than demand?

Answer 11

Items will go on sale.

Question 12

What happens when demand is higher than supply?

Answer 12

The price may rise.

Question 13

Define primary industry

Answer 13

The collecting of raw materials for use in industry. Forest, mining, oil, natural resources, agriculture.

Question 14

Define secondary industry

Answer 14

Manufacturing and construction activities. (Taking the product and making it into something): oil to gas, corn to corn oil, iron ore to steel.

Question 15

Define tertiary industry

Answer 15

The providing of services, such as customer support, distribution of retail, buying and selling, (e.g truck driver, sales clerk, music teacher)

Question 16

Define and give an example of the multiplier effect

Answer 16

The effects of spending in a local economy.

E.x Tourists at Niagara Falls

Question 17

Define driven by profit

Answer 17

A company or business that is driven by profit.

Question 18

Define labour resources

Answer 18

Man power/people in production

Question 19

Define capital resources

Answer 19

If you start your own business you invest your own money or offer investors shares of the company.

Question 20

Define land resources

Answer 20

Land resources are natural resources from the earth. Like soil, water, minerals, animals, energy sources and forests.

Question 21

Define entrepreneurship

Answer 21

The process of designing, launching and running a new business.

Question 22

Define subsistence agriculture

Answer 22

Subsistence agriculture is self-sufficiency farming in which the farmers focus on growing enough food to feed themselves and their families. The output is mostly for local requirements with little or no surplus for trade.

Question 23

Who produces goods and services in a market economy, traditional economy and command economy?

Answer 23

Market economy- entrepreneurs and professionals
Traditional economy- family tribe
Command economy- government

Question 24

What goods and services are produced for a market economy, traditional economy and command economy?

Answer 24

Market economy- anything that makes a profit
Traditional economy- materials needed only
Command economy- essentials only

Question 25

How are goods and services produced in a market economy, traditional economy and command economy?

Answer 25

Market economy- modern technology
Traditional economy- traditional technology
Command economy- modern technology

Question 26

For whom are goods and services produced in a market economy, traditional economy and command economy?

Answer 26

Market economy- paying consumers
Traditional economy- members of family or community
Command economy- people of that country only

Question 27

How are goods and services distributed in a market economy, traditional economy and command economy?

Answer 27

Market economy- advertising
Traditional economy- equally sharing or bartering
Command economy- government

Question 28

What are the 5 economic questions?

Answer 28

1. Who produces the goods and services?
2. What goods and services are produced?
3. How are goods and services produced?
4. For whom are goods and services produced?
5. How are goods and services distributed?