Theme 1 - Supply

Question 1

Productivity

Answer 1

the rate at which goods or services are produced

Question 2

Shock

Answer 2

an event which causes a change within an economy which occurs outside of it. Unpredictable and may affect supply.

Question 3

Automation

Answer 3

method of operating or controlling processes by automatic means using devices. Reduces need for human interaction.

Question 4

Mechanisation

Answer 4

method of operating or controlling processes using machinery

Question 5

Indirect tax

Answer 5

taxes levied on products or services before they reach the consumer e.g. VAT and excise

Question 6

Government subsidy

Answer 6

a grant or gift of money from the government to encourage supply of certain goods e.g. milk subsidies