Term 1 Recap

Question 1

What kind of society is industrialised?

Answer 1

Modern

Question 2

What kind of society uses basic methods to hunt and harvest food?

Answer 2

Traditional

Question 3

What is bartering?

Answer 3

The exchange of goods without using money

Question 4

What are commodities?

Answer 4

Items that are used to trade

Question 5

What is a promissory note?

Answer 5

A note signed by the buyer promising to pay the seller

Question 6

Why did bartering give way to currency?

Answer 6

Because not all commodities had the same value

Question 7

What were the first forms of currency?

Answer 7

Coins and cowrie shells

Question 8

What did coins give way to?

Answer 8

Paper money or banknotes

Question 9

What do we use for most transactions today?

Answer 9

Electronic banking

Question 10

What do consumer economies mean?

Answer 10

More money is spent but this harms the environment

Question 11

What are needs?

Answer 11

The things that people can’t survive without

Question 12

What are wants?

Answer 12

Things that people would like to have but don’t need

Question 13

What are primary needs?

Answer 13

Physical and security needs

Question 14

What are secondary needs?

Answer 14

They are not necessary for pur survival and are considered wants

Question 15

What is tge economic problem?

Answer 15

There are limited resources to satisfy unlimited needs and wants

Question 16

What are the most valuable resources?

Answer 16

Natural resources of labour and capital

Question 17

What are the four factors of production?

Answer 17

Labour, capital, land and entrepreneurship

Question 18

What doe stge primary sector do?

Answer 18

Extracts or processes raw materials (e.g. mining and farming)

Question 19

What doe sthe secondary sector do?

Answer 19

They use raw materials to manufacture goods (e.g. factories)

Question 20

What does the tertiary sector do?

Answer 20

Sells the goods and provides services to the community

Question 21

What does a producer do?

Answer 21

Makes the goods or provides the services

Question 22

What does a consumer do?

Answer 22

Buys and uses the goods and services

Question 23

Can households be both a producer and a consumer?

Answer 23

Yes

Question 24

What are consumer goods?

Answer 24

Goods that are often used up and need to be replaced

Question 25

What should we do with consumer goods to create a sustainable environment?

Answer 25

Recycle or reuse them

Question 26

What happens in a developing country?

Answer 26

Their industry and economy is still developing; citizens have low average incomes

Question 27

What happens in a developed country?

Answer 27

They are industrialised and technological; citizens have high average incomes

Question 28

What is an informal business?

Answer 28

A business that is not taxed and does not contribute towards the GDP

Question 29

What is a formal business?

Answer 29

A business that pays tax and contributes towards the GDP

Question 30

What is the GNP?

Answer 30

The value of all the products and services a country produces in one year

Question 31

What does a trading business make money from?

Answer 31

Selling goods

Question 32

What does a manufacturing business make money from?

Answer 32

Making goods

Question 33

What does a service business make money from?

Answer 33

Selling services

Question 34

Formal businesses are…

Answer 34

More expensive to run and pay tax

Question 35

Informal businesses are…

Answer 35

Cheaper to run and don’t pay tax

Question 36

Formal and informal sectors are…

Answer 36

Both consumers and producers

Question 37

Why do natural disasters affect the economy?

Answer 37

They destroy businesses

Question 38

Why do health epidemics affect the economy?

Answer 38

Businesses lose skills when people get sick or die