Mocks Revision

Question 1

What is the Basic Economic Problem?

Answer 1

Infinite Wants but Finite resources/supply

Question 2

What are the 4 main factors of production?

Answer 2

Land, Labour and Capital

Question 3

What is Opportunity Cost?

Answer 3

The next best alternative forgone

Question 4

What does a PPF diagram represent?

Answer 4

Max a country can produce using its current resources efficiently

Question 5

What is a Free Market Economy?

Answer 5

Decisions regarding investment, production and distribution based on S+D

Question 6

What is a Mixed Economy?

Answer 6

Economy when goods and services are provided by public and private sector

Question 7

What is Specialisation?

Answer 7

The production of a limited range of goods by individualised firms, regions or countries

Question 8

What is the Divsion of Labour?

Answer 8

The breakdown of a production process into small parts with each worker allocated a special task

Question 9

What are the advantages to Division of Labour to Workers?

Answer 9

More Skilled
Higher Pay

Higher Productivity

Higher job specialisation if specialised

Question 10

What are the disadvantages of Division of Labour to Workers?

Answer 10

Boring/Repetitive/Alienated –> Job dissatisfaction –> Work less hard –> Lower Productivity

If too specialised then it is harder to find a job

Question 11

advantages of Division of Labour to Firms?

Answer 11

High Efficiency
      and
More Specialised Tools 
       so
Production time reduced

Lower Costs of Production