Term 3 Economics And Business

Question 1

Define economics

Answer 1

The study of how business and government makes decisions about how we use our money and resources

Question 2

What is a consumer?

Answer 2

Someone who buys or uses goods and services

Question 3

What is a producer?

Answer 3

Someone who provides goods and services

Question 4

What is a good?

Answer 4

Physical things that you can see and touch

Question 5

What are services?

Answer 5

Actions that other people might perform for us and are not physical items

Question 6

What is a market?

Answer 6

Any situation where people exchange goods and services

Question 7

What is scarcity?

Answer 7

When there is unlimited wants and limited resources

Question 8

What is an Equilibrium?

Answer 8

When the amount people want to buy is the same as the amount the producer is willing to provide

Question 9

What is are virtual market?

Answer 9

A place where buying and selling is done online through the internet, without face-to-face meetings
e.g. Amazon, eBay

Question 10

What is the economic problem of scarcity?

Answer 10

When resources are relatively hard to come by compared to needs and wants

Question 11

What is the law of demand?

Answer 11

An economic law stating that as the price of a good or service increases, the demand by consumers for it will decrease and vice versa

Question 12

Define needs and give some examples

Answer 12

Goods and services that are essential for living
Examples:
Food
Water
Shelter 
Clothing
Health care

Question 13

Define wants and give some examples

Answer 13

Goods and services that are not essential for living
Examples:
Latest shoes 
Mansion
Internet
Trendy clothes

Question 14

What is the economic problem

Answer 14

We have unlimited wants or needs for goods and services,the resources used to make these goods and services are limited

Question 15

What is demand

Answer 15

Demand refers to how much (quantity) of a product or service is desired by buyers

Question 16

List factors that influence demand

Answer 16

Prices move up or down

Tastes, latest trends come and go

Technology develops

Changing seasons create a seasonal demand

Level of activity in economy affects people’s jobs and incomes

Question 17

What is a demand schedule

Answer 17

A tabulation of the quantity of a good that all consumers in a market will purchase at any given price

Question 18

What does TALL stand for

Answer 18

Title
Axis
Line
Label

Question 19

What is a demand curve

Answer 19

A graphical representation of the relationship between the price dope a good or service and the quantity demanded for a given period of time

Question 20

What is supply

Answer 20

Supply refers to how much the market can offer

Question 21

What is the law of supply

Answer 21

The higher the price, the higher the quantity supplied

Question 22

Define scarcity

Answer 22

We have an unlimited want (or need) for goods and services the resources used to make the goods and services (natural, human and capital resources) are limited.

Question 23

What is the circular flow of income

Answer 23

In a market economy, there is a system of exchange between the producers (sellers) and consumers (buyers) that forms a circular flow

Question 24

What are the 5 sectors in circular flow of income

Answer 24

Khfckhfdhkfxxhkfkhfx👍💩👍😫😢💩👍🌻😫😢😒💩😫🌻🙄🌻😒😍😫🤤🤗😒👏🍁😡😒🤤🖍✏️📕🎙📽🖱🤹‍♀️🥈🚑🚠🚇🚲🚑🚝🚇🚚🚲🥈🎫📠💿📞📸📽📠⌨️🖱🎛📽🇾🇪🇹🇴🇻🇳🇹🇯🇻🇺🇻🇳🇻🇮🇹🇴🌾🥀🎍🌘🌎💐🌿🌘🌎😦😫🤑😕😣😮😚🤡😫😣😐🤡😫😚😲🤗😣😮🤑😕😠😮🤡😫😚🤑😯😩

Question 25

What are the factors of production

Answer 25

Land resources~ land,water,iron ore
Labour ~human work (physical/mental)
Capital~ machinery, tools, buildings
Enterprise