Unit 4

Question 1

Definition of economy

Answer 1

All the activities involved in producing, selling and buying the products and services we require for our basic needs.

Question 2

Production

Answer 2

All the activities needed to make a product or provide a service.

Question 3

Distribution

Answer 3

The activity which get products/services to their destination.

Question 4

Consumption

Answer 4

The purchase of products or services by the consumer.

Question 5

Primary sector

Answer 5

Companies which use resources from nature.

Question 6

Secondary sector

Answer 6

Companies which use raw materials to make products.

Question 7

Tertiary sector

Answer 7

Companies which provide services.

Question 8

Production

Answer 8

Creation of the product or service the company sells.

Question 9

Accounts

Answer 9

Department that manages the company’s money.

Question 10

Marketing

Answer 10

Department that creates advertising for products or services.

Question 11

Purchases

Answer 11

Department that buys the materials and services the company needs.

Question 12

Human resources

Answer 12

Department that employs and manages the company’s employees.

Question 13

Money earned

Answer 13

Income

Question 14

Money kept for the future

Answer 14

Savings

Question 15

Plan for spending income

Answer 15

Budget

Question 16

Bank notes and coins used to pay for products and services

Answer 16

Cash

Question 17

Money spent on products and services

Answer 17

Expenses

Question 18

Money used in an activity in order to make a profit

Answer 18

Investment

Question 19

Amount of money left when subtracting expenses from income

Answer 19

Net income

Question 20

Exchanging one product for a different product

Answer 20

Balance

Question 21

When you havemore expenses than income you need to:

Answer 21

Spend less

Question 22

When your income and expenses are balanced:

Answer 22

You cannot save money or spend more

Question 23

When you have more income than expenses, you:

Answer 23

You can save money