The individual as producer, consumer and borrower

Question 1

define money

Answer 1

any commodity which can be used as a medium of exchange that is accepted for the purchase of goods and services

Question 2

characteristics of money

Answer 2

durability 
acceptability 
divisibility
scarcity
uniformity
portability

Question 3

functions of money

Answer 3

measure of value
store of value
medium of exchange
standard of deferred payment

Question 4

what is bartering and 3 problems with bartering

Answer 4

bartering is swapping items in exchange for other times through negotiation
double coincidence of wants
portability
divisibility

Question 5

the central bank is ?

Answer 5

the monetary authority that oversees and manages the nations money supply and banking system

Question 6

list 4 functions of the central bank

Answer 6

sole right to issue legal tender
governments bank
lender of last resorts
bankers bank

Question 7

what is a stock exchange

Answer 7

it is an institutuional marketplace for trading shares of plcs. it provides a platform to buy and sell shares

Question 8

5 functions of stock exchange

Answer 8

safety of transaction
grow
price mechanism
bonds
share capital

Question 9

the primary functions of commercial bank

Answer 9

accepting deposits
credit creation
advances

Question 10

8 non wage factors

Answer 10

career prospects
challenge
danger
training
experience
recognition
satisfaction
education

Question 11

demand for labour is a

Answer 11

derived demand

Question 12

advantages of national minimum wage

Answer 12

more people seek employment

less exploitation

Question 13

disadvantages of national minimum wage

Answer 13

in order to maintain pay differences senior employees may ask for pay rise
unemployment due to added cost

Question 14

how can government intervene in labour markets

Answer 14

trade union legislation

employment rights

Question 15

geographical mobility refers to the ?

Answer 15

willingness and ability of a person to relocate from one part of the country to another for work

Question 16

occupational mobility refers to the?

Answer 16

ease with which a person is able to change between jobs dependent on the cost and length of training required for the job

Question 17

why do skilled workers earn more than unskilled workers

Answer 17

high demand and low supply ped is inelastic

Question 18

why do men generally earn more than women

Answer 18

women are involved in more part time
women take career break to have children
women seek for more flexible jobs which may be low paying
women may face discrimination at work

Question 19

what is a trade union?

Answer 19

a group or an organisation that exists to protect the rights of the workers

Question 20

what are the four kinds of trade unions

Answer 20

craft union
industrial union
general union
white collar union

Question 21

what is collective bargaining?

Answer 21

when a trade union representative negotiates on behalf of the union’s members for better working conditions.

Question 22

what are the basis of wage claims?

Answer 22

inflation
workers in comparable occupations have higher wages
increased profit
increased productivity

Question 23

list 3 positive impacts of trade unions

Answer 23

help solve disputes
offer legal support
raise living standards

Question 24

what are the negative impacts of trade unions

Answer 24

often portrayed as antagonists and can cause severe disruption in the economy
employers may believe that trade unions may force an increase in costs

Question 25

possible reasons for increased trade union membership

Answer 25

growth in manufacturing jobs
increasing number of workers facing poor working conditions
increasing wealth inequality

Question 26

possible reasons for decreased trade union membership

Answer 26

changing government legislation
decline in manufacturing jobs
increase in part time employment
increase in self employment

Question 27

what is a predominant factor for consumer spending?

Answer 27

income level

Question 28

what are the returns of the fops

Answer 28

land-rent
labour-wages
capital-interest
enterprise-profit

Question 29

what is disposable income

Answer 29

refers to the income earned post taxation

Question 30

expenditure pattern for low income earners

Answer 30

spending on most necessities
saving tends to be low
borrowing to fund capital items

Question 31

expenditure pattern for middle income earners

Answer 31

spend on necessities+luxuries
able to save
borrowing to fund capital items

Question 32

expenditure pattern for high income earners

Answer 32

spend on luxuries
high saving
borrowing occurs but less

Question 33

how do you measure wealth

Answer 33

assets-liabilities

Question 34

what is conspicuous consumption

Answer 34

when individuals purchase goods or services that make them feel of higher status

Question 35

determinants of consumer spending

Answer 35

inflation
age
confidence levels
interest rates
size of household

Question 36

determinants of saving

Answer 36

interest rates
age
confidence levels
attitude towards saving

Question 37

factors that may affect borrowing

Answer 37

wealth
credit cards
store cards
availability of funds