ECONOMIC ACTIVITY
What is an economic activity?
It is an activity that people perform in order to earn money and create wealth.
What is the basic economic problem?
The wordś resources are scarce or finite but peopleś wants and needs are infinite or unlimited.
How many sectors of economies are there?
FOUR
What is an economic system?
It is a way in which societies or governments organise and distribute available resources and services and good across the region or a country.
Give definition of economics.
It is the scientific study of the way in which wealth is produced and used. It is traditionally divided into two branches – macroeconomics and microeconomics.
What is a boom or upturn?
Businesses employ more people and people spend more money.
Which questions need to be asked to overcome the basic economic problem?
What, How and For whom to produce?
What includes the primary sector. Give 3 examples.
Ectracting raw materials form the earth.
agriculture, fishing, foresty, mining
Describe a traditional economic system.
What is the difference between micro and macroeconomics.
Macroeconomics studies the economy as a whole, for example the economy of a country or the whole of a particular industry. It is concerned with the total production of all goods and services and changes in the average levels of prices.
Microeconomics studies parts of the economy, such as individual households or firms and particular markets and industries.
When demand falls, the prices too and the country is poorer. How is it called?
SLUMP OR DOWNTURN
Name four factors of production.
LAND, CAPITAL, LABOUR, ENTERPRISE
What includes the secondary sector? Give 3 examples.
It involves changing raw materials into finished or semi-finished products.
metalworking, car, textile production, energy utilities, food processing
Describe planned economy system.
It is a system in which the government decides how the factors of production are used.
What is the difference between economical and economic.
Economic (adjective) means related to economics, money, finance, industry, etc., for example economic growth or economic crisis. Economical (adjective) means using money, time, etc. carefully and without waste, for example economical methods or economical bulbs.
Give 3 examples of non-economic activity.
helping a friend, volunteering, recreational activites
What is the difference between working and fixed capital?
Working capital-the money, stock of raw materials and components that will be used in production, stock of goods that are waiting to be sold
Fixed capital- factories, offices, shops, equipment used to produce the product or service (truck, machine)
What includes the tertiary sector? Give 3 examples.
It includes the provision of a wide range of services.
Commercial, financial, hosehold, leisure, transportm.
What is a market system?
It is a system where all resources are privately owned.
Who is an economist?
An economist (noun) is a scientist who is skilled in economics.
Give 3 examples of economic activity.
It involves producing, providing, purchasing, selling, distributing and consuming various goods and services.
Give an example of four factors of production with a job BAKER.
LAND-FLOUR, YEAST, SALT, WATER
CAPITAL-OVEN, BAKERY SHOP, BOWL, MIXER
LABOUR - BAKERS
ENTERPRISE - BAKER
What includes the fourth sector? Give 3 examples.
It includes knowledge-based activities.
IT, research, development
What is a mixed economny system?
It is a system which includes private and public sector. USA
What does business studies cover as a school or college subject?
It is a course of study at a school or college, which covers economic and financial subjects.