Producers and Consumers
CFI
Demand and Supply
Setting Prices
100
Provide an example of need and want.
Any appropriate answer.
100
What do we call the diagram that illustrates the relationship between producers and consumers?
The Circular Flow of Income
100
In your own words, define supply and demand.
Supply:
An amount of something available for use or sale.
Demand:
The desire consumers have to buy goods and services.
100
What do we call the money that producers make when they sell goods and services.
Profits
200
What is the difference between goods and services?
Goods are tangible items (you can touch them).
Services are intangible actions (you cannot touch them).
200
Fill in the blank in the diagram below.
Producers
200
What happens to demand when the price of goods and services goes up?
Demand goes down (people want less that good or service).
200
What do we call the 4 Factors of Production?
Capital
Enterprise
Land
Labour
300
In what situation are you considered a producer?
Any appropriate answer (e.g. doing chores at home).
300
Do consumers DEMAND or SUPPLY goods and services from producers?
Demand
300
SHORTAGE or SURPLUS:
The Matildas' performance at the Women's World Cup has led to many girls being interested in joining a soccer club. Unfortunately, there aren't enough local clubs to accommodate for the growth in the sport's popularity.
SHORTAGE
300
What is an example of a capital resource for a sports car?
Any appropriate answer (e.g. machinery used to make the car, factory to create to car).
400
What word matches the following definition:
A situation where you have limited resources to meet the unlimited needs and wants of society/people.
Scarcity
400
TRUE or FALSE:
Consumers provide producers with labour. In exchange, producers provide consumers with income.
True
400
Explain why producers use surveys and focus groups.
Surveys and focus groups are used to understand what consumers need and want (as well as when they want it and how much of it they want).
400
Categorise the following items into the correct Factors of Production group:
- Gold
- Buildings
- Spatula
- Forests
- Teachers
- Entrepreneurs
- Gold: Land
- Buildings: Capital
- Spatula: Capital
- Forests: Land
- Teachers: Labour
- Entrepreneurs: Enterprise
500
In your own words, explain what consumer sovereignty is.
When the needs and wants of consumers control what goods and services are created by producers.
500
Complete the Circular Flow of Income using the template below.
Make sure to check which direction the arrows are going!!!
500
In your own words, define what a target market is.
A target market is a group of people for whom the goods/services appeal to the most.
500
What do producers need to consider when deciding how much to charge consumers for goods and services?
How much it costs to create the goods/services (resources).
How much consumers are willing to pay for it.