topic 3 business & the economy study

Question 1

identify types of resources

Answer 1

land, labour, capital

Question 2

what is land resources

Answer 2

Resources that occur naturally can be things like water oil and coal input nature example oil coal minerals and water

Question 3

what is labour resources

Answer 3

Someone who is employed to do goods and services

Question 4

what is capital resources

Answer 4

Capital resources and man-made products that are used in production of something some examples are manufactured good like computers and machines

Question 5

the difference between needs and wants and explain why choices need to be made

Question 6

the basic economic problem of relative

Question 7

definition of consumer

Answer 7

Someone who purchases Goods and/or services

Question 8

definition of producer

Answer 8

profit from something they do

Question 9

definition of demand

Answer 9

Consumers wanting goods and services

Question 10

definition of supply

Answer 10

Producing making goods and services

Question 11

The amount/quantities of a product people want to buy (demand) is affected by the following factors

Answer 11

pricing

Question 12

law of supply

Answer 12

the law of supply says the higher the price, the higher the amount of products that producers are willing to provide

Question 13

opportunity cost

Answer 13

Benefits lost from choices made

Question 14

relative scarcity

Answer 14

refers to the belief that there are more needs and wants of consumers then what is either physically available

Question 15

demand factors (prefernces

Answer 15

Preferences relating to demand factors can be defined as consumers having a preference on what tastes they have/ what they like

Question 16

what and how much to produce

Answer 16

Producers determine what and how much to produce by a number of factors but most importantly they by whether or not a consumer wants to buy a product decide if the product is going to make a profit all the factors include production availability

Question 17

for whom to produce

Answer 17

sellers are producing for buyers with an income to this is the way for producers to make profit

Question 18

needs

Answer 18

The goods and services that people believe are nessary for living including food clothing water healthcare and shelter

Question 19

wants

Answer 19

Goods and services that assist us to enjoy a good standard of living their non-essential items in one not essential items that we need to survive.

Question 20

markets

Answer 20

A place where people go to exchange goods and services

Question 21

economics

Answer 21

• the study of scarcity and the use of resources, production of goods and services and the growth of production and welfare over time.

Question 22

price mechanism

Answer 22

the mechanism that allows consumers to decide on a producer and producers to decide price

Question 23

equilibrium price

Answer 23

price at which the level of consumer demand is equal to the amount producers are willing to supply

Question 24

law of demand

Answer 24

the cheaper the price of a product, the more willing and able consumers are to buy it. As prices increase, the level of consumer demand decreases

Question 25

how to produce

Answer 25

How to produce this one of the three basic economic questions it questions how businesses produce products to consumers some ways they do this is by aiming to keep prices down 2 get profit it could involve using technology to help make the products or produce the service

Question 26

supply factors (cost prices of the used)

Answer 26

the quantity of a goods that a seller decides to sell on the market they want to sell at a higher price how much a producers to make