Economy

Question 1

What is production and how does it take place?

Answer 1

The process of changing raw materials into goods and services.

It takes place when the four factors of production: natural resources, labour, capital, and entrepreneurship are combined.

Question 2

Name 5 examples of inputs.

Answer 2

1. Materials.
2. Manufactured items.
3. Labour.
4. Money.
5. Information.

Question 3

Define “sustainability”.

Answer 3

The ability to carry on/exist in the long-term future.

Question 4

Define “scarcity”.

Answer 4

There will be more needs and wants than resources with which to meet them.

Question 5

Define “economic growth”.

Answer 5

The goods and services in an economy have increased.

Question 6

Define “Gross Domestic Product (GDP)”.

Answer 6

The total value of goods produced and services provided in a country in a period of one year.

Question 7

Name 3 advantages of economic growth.

Answer 7

1. Leads to higher standards of living.
2. Stimulates higher employment.
3. Increases profits for businesses.

Question 8

Name 2 disadvantages of economic growth.

Answer 8

1. An increase in inflation.

2. Damage to the environment.

Question 9

Define “productivity”.

Answer 9

The relation between output and the amount of input that was used to produce the output.

Question 10

Name two ways that technology has improved farms.

Answer 10

1. Automation.

2. Modern farming techniques.

Question 11

How has technology improved productivity?

Answer 11

1. E-banking speeds up the process.
2. Goods are delivered quicker with faster transport.
3. Robots make the production line quicker and more reliable.

Question 12

Name 3 disadvantages of technology in productivity.

Answer 12

1. Pollution.
2. Increased carbon dioxide.
3. Lose jobs when machines replace people.