Economy Basics
What do we call something necessary for life or wellbeing?
A need
What stage involves making a good or providing a service?
Production
Farming belongs to which sector?
Primary
What indicator measures the value of goods and services produced?
GDP
Which system gives the government a central role in economic decisions?
Planned economy
What is the difference between a good and a service?
A good is a physical product; a service is an activity provided
Put these in order: consumption, commercialisation, production
Production → commercialisation → consumption
Manufacturing cars belongs to which sector?
Secondary
What usually happens to unemployment during a recession?
It increases
Which system relies strongly on private businesses, consumers, supply and demand?
Market Economy
Name the 5 levels of Maslow's hierarchy.
Physiological, safety, love/belonging, esteem, self-actualisation
Name the 3 economic agents.
Consumers/people, businesses and public sector
Scientific research and data analysis mainly belong to which sector?
Quaternary
GDP ↑, employment ↑ and consumption ↑. Diagnose the economy.
Expansion
Why is a mixed economy called “mixed”?
It combines market activity/private businesses with government intervention
Why might a smartphone be a want for one person but a need for another?
It depends on circumstances; e.g. necessary for work/school
What happens during commercialisation?
Goods/services are distributed and sold to consumers
Explain the connection between the primary and secondary sectors.
Primary obtains raw materials; secondary transforms them
GDP barely changes, unemployment is stable and consumption barely changes. Diagnose it
Stagnation
In which system would the government be most likely to directly decide what and how much gets produced?
Planned
Explain how human needs and wants connect to economic activity.
They create demand for goods/services, which economic activity produces and distributes
A farmer grows cocoa, a factory makes chocolate, a supermarket sells it and you buy it. Identify production, commercialisation and consumption.
Farmer/factory = production; distribution/shop = commercialisation; purchase/use = consumption
Trace a T-shirt through at least THREE economic sectors.
cotton farmer = primary → textile factory = secondary → transport/shop = tertiary
GDP ↓, unemployment ↑ and consumption ↓. Give a diagnosis AND two pieces of evidence.
Recession
Private companies sell most goods, but government regulates businesses and provides public services. Which system?
Mixed