Year 9 Economics

Question 1

Economy

Answer 1

A system that involves the production,distrubution,trade and consumption of goods and services by individuals,businesses,organisations or governments

Question 2

Natural resource

Answer 2

Come from nature, such as water used in the production of goods and services

Question 3

Labour resource

Answer 3

A person’s intellectual or physical skills needed to produce a good or service

Question 4

Capital resource

Answer 4

Manufactured resources used to produce and transport the goods and services we purchase

Question 5

Opportunity cost

Answer 5

The value of the next best alternative use of resources

Question 6

Free enterprise

Answer 6

Economic system in which privately owned businesses operate with minimal government interference and can operate competitively for profit.

Question 7

Profit

Answer 7

Amount of money a business earns after taking away its expenses

Question 8

Revenue

Answer 8

Income a business receives from its business activities, such as the sale of goods and services to customers

Question 9

Exchange rate

Answer 9

The amount of one currency that can be exchanged for one another at a particular point in time

Question 10

Leakages

Answer 10

Money that leaves the economy

Question 11

Injections

Answer 11

Money that enters the economy

Question 12

Globalisation

Answer 12

The increasing interconnections of countries around the world

Question 13

Traditional economy

Answer 13

Producers are self-sufficient, producing enough to survive rather than aim to make a profit.

Question 14

Traditional WHAT TO PRODUCE

Answer 14

Depends on what is available through hunting,gathering and growing food

Question 15

Traditional HOW TO PRODUCE

Answer 15

Customs and religious beliefs influence the question, production is usually shared solving the question for whom to produce. There is no government involved

Question 16

Traditional FOR WHOM TO PRODUCE

Answer 16

In a traditional economy, goods and services are produced for the local community, including families and social groups. Production is focused on fulfilling basic needs, often for survival, cultural practices, and local trade.

Question 17

Market economy WHAT TO PRODUCE

Answer 17

Producers decide what to produce based on what consumers want and the price they are willing to pay, as businesses are motivated by profit

Question 18

Market economy HOW TO PRODUCE

Answer 18

The producer choosing the most cost-effective method

Question 19

Market economy FOR WHOM TO PRODUCE

Answer 19

It is affected by who has the money to pay for the goods and services. The higher the level of income and wealth the higher their purchasing power

Question 20

Planned economy

Answer 20

All productive resources are owned by the government on behalf of the people. There is no private enterprise in this system. The government decides what,how and for whom to produce. Decisions may be made for reasons other than profit and price.

Question 21

Mixed economy WHAT TO PRODUCE

Answer 21

Whatever sells and whatever the community needs

Question 22

Mixed economy HOW TO PRODUCE

Answer 22

What is cost effective and will grow the economy

Question 23

Mixed economy FOR WHOM TO PRODUCE

Answer 23

Whoever will buy it and whoever needs it

Question 24

What kind of economy is Australia

Answer 24

Mixed

Question 25

Describe the relationship between a producer and consumer

Answer 25

Producers provide consumers with the goods and services they need and in return consumers spend money buying these goods and services. Some consumers earn wages to pay for these goods and services.