Humanities 8

Question 0

What is expenditure?

Answer 0

Money out laid for goods and services

Question 1

What is a need and a want?

Answer 1

Things that are essential for survival whilst wants are not essential but would make it better

Question 2

What is a budget?

Answer 2

A limited amount of money that must be divided between needs

Question 3

What is a consumer?

Answer 3

Someone who buys goods and services for personal use

Question 4

What are goods and what are services?

Answer 4

Goods are objects bought by a consumer whilst services are things consumers pay others to do for them

Question 5

What is the demand curve and the law of demand?

Answer 5

The demand curve indicates how much of a good or service consumers will buy at a certain price. The law of demand states that as the price goes up, consumers will demand less

Question 6

What is the supply curve and the law of supply?

Answer 6

The supply curve indicates how much producers will supply at a given price. The law of supply states that the higher the price the more product will be supplied

Question 7

What is the Equilibrium?

Answer 7

The point of which supply and demand are equal. Suppliers are selling all the goods they have produced and consumers are getting all the goods they demand

Question 8

What is market price?

Answer 8

The price for which a good or service is offered in the market place. In an efficient economy that is the equilibrium

Question 9

What is demand and supply?

Answer 9

Demand is how many people want it and supply is how much is being produced

Question 10

What is the difference between surplus and shortage?

Answer 10

Surplus is when you have an amount over that of which is needed versus shortage which is when you have less than being demanded

Question 11

What is a subsistence economy?

Answer 11

The community only produces what it needs to survive and so has none left for trade. Examples are Inuit in Greenland

Question 12

What is a market capitalist economy?

Answer 12

The market largely determines the economic depictions of that nation but the government still has a say. Examples are Australia and America

Question 13

What is a market socialist economy?

Answer 13

The government largely determines economic decisions but are slightly effected by the market

Question 14

What is a planned economy and what are examples?

Answer 14

Almost all economical decisions are made by an authorised person or group. Examples are North Korea

Question 15

What is superannuation?

Answer 15

Superannuation is a proportion of your salary that is put away into an investment account that you can only access when retired. This is so you have money to live on June there is no longer a salary coming in but the bills continue.

Question 16

What are disadvantages and advantages in saving?

Answer 16

The advantages of saving money are that it can be kept future use and in for use in cases of emergencies. Money saved in bank accounts earn interest and keeps it safe from burglary. It is also easy to keep record of accounts since banks keep statements of transactions. The disadvantages of saving money is that it does take longer and you need to control what you buy.

Question 17

What are advantages and disadvantages in using credit cards?

Answer 17

Advantages of credit cards are ease of purchase and emergency use. It allows you to get things quicker and easier than it would be to save. Disadvantages of credit cards are high interest rates, debt, overspending and possible scams.

Question 18

What is budgeting?

Answer 18

It is the process of creating a plan on how you will spend your money. It allows you to determine in advance whether you would have enough money to do the thing you need and want.