True/False: Supply and Demand are attached to each other.
True
100
This is what all members of a given society have which an economy must provide for using limited resources.
what are needs and wants?
200
Iron Ore is what kind of economic resource?
Natural (Land)
200
What is it called when choosing an alternative means you may no longer choose any of the other alternatives?
Opportunity Cost
200
After producers and consumers (or households and firms) what are the last three sectors of the Macroeconomic Model in a Globalised world?
Finance, Government, Trade
200
If the price of something is too high, what will happen to supply? Why?
It will go up because fewer consumers will purchase the product.
200
When an exchange takes place between two participants in an economy with NO medium of exchange.
What is Barter.
300
A machine that turns raw cotton into thread is what kind of economic resource?
Capital
300
What do consumers purchase from businesses and firms?
Goods and services
300
What do: What do households (consumers) exchange with firms for income?
Economic resources.
300
I am what happens to demand when the popularity of a product or service increases.
what is increase.
300
A new stereo is the former, while medicine is the latter.
What is a want and need.
400
If a man is hired to drive a truck to cart water from a full dam to and empty dam, which economic resource is least used.
Enterprise
400
What do we call the process by which less efficient businesses and firms (producers) are pushed out of business by more efficient competitors?
Creative Destruction.
400
Name the flow of money: Coming into and going out of the finance sector.
Coming into and going out of the Government sector.
Savings and Investment
Taxes and Spending.
400
What will happen to supply and demand if there is an excellent sale?
Supply will go down and demand will go up.
400
An economic system based around barter, inherited production roles and long standing cultural expectations.
What is the traditional economy
500
All four economic resources are manipulated by participants in an economy to address which fundamental economic problem?
The scarcity problem.
500
Which two of the four Instruments available to the government to effect the economy are MOST likely to impact firms and businesses (Producers)
Taxes and Microeconomic Reform.
500
Draw a simple flow chart for how the following sectors would interact in a planned macro-economy - Households (consumers), Firms (producers), and Government.
Goods produced by firms and labour (and other economic resources on offer by households) would flow first to the government sector before being distributed to each other.
500
In the previous question we saw that in the event of a true 'sale' supplies go down and demand goes up because prices have been reduced. Why do producers and suppliers have sales if it means they will make less money per unit?
To clear stock which has already been created at cost to the producer. (200) Selling stock even at a mild loss (and thus recovering some value)(150) is preferable to not recovering any value.(150)
500
Name, and give and example of, each of the 4 instruments by which governments can effect the economy.