Mock 23

Question 1

Name 3 Government Departments and what they do

Answer 1

Department of Finance- Controls finance
Department of tourism- Controls tourism
Department of health- Controls decisions associated with healthcare
Department of education- Controls decisons about Irish education

Question 2

Examples of short-term sources of finance.
Explain 1

Answer 2

-Credit Cards: financial products that allow people to buy goods on credit, up to a certain limit.

-Bank overdrafts: Allow current account holders to spend more than they have in their account but up to a certain limit.

Question 3

Examples of medium-term sources of finance.
Explain 1

Answer 3

-Hire purchase: hiring a product until you have fully paid for it, using instalments.

-Leasing: Renting an item on contract

Question 4

Examples of long-term sources of finance.
Explain 1

Answer 4

Mortgages: large long-term loans used to buy property

Question 5

Headings for an income statement?

Answer 5

-Cost of sales
-Cost of goods available for sale
-Gross profit (Sales - Closing stock total)
-Less expenditure
-Net profit (Gross - Less Expenditure)
-Reserves (Net profit - less dividends)

Question 5

Headings for SFP?

Answer 5

-Fixed assets
-Current assets
-Less Current Liabilities
-Working Capital (CA - CL)
-Total Net Assets (FA + Working Capital)
-Financed By
-Capital employed ( equal to total net assets)

Question 6

What is the economic challenge?

Answer 6

That people have unlimited wants but the earth has limited resources

Question 7

What are the factors of production?

Answer 7

Land
Labour
Capital
Enterprise

Question 8

What is land?

Answer 8

Anything provided by nature which is used in the production of goods and services
e.g. water used in hydro-electric energy

Question 9

What is labour?

Answer 9

Any human effort which goes into the production of goods and services
e.g. farmers, teachers

Question 10

What is capital?

Answer 10

Anything man-made which is used in the production of goods and services
e.g. vehicles, equipment

Question 11

What is enterprise?

Answer 11

The person or business that combines the other three factors of production to produce a product or service
e.g. ESP is an enterprise that generates most of Ireland’s electricity supply

Question 12

What is economics? (I dont think we need this but oh well)

Answer 12

The study of how people with limited resources make decisions as they attempt to satisfy their essential needs and unlimited wants