Economics

Question 1

What is a consumer?

Answer 1

A person who purchases goods and services for personal use

Question 2

What is a producer?

Answer 2

A business which creates and supplies goods and services

Question 3

What is the role of the government?

Answer 3

To set the rules for operation and balance the needs of the consumers and producers

Question 4

What is a land resource?

Answer 4

A natural resource, materials or substances occurring in nature which can be exploited for economic gain

Question 5

What is a labour resource?

Answer 5

A human resource, the people who make up the workforce of a business or organisation

Question 6

What is a capital resource?

Answer 6

A manufactured resource, products made from a raw material by hand or machine

Question 7

What is gross domestic product?

Answer 7

The total dollar value of all goods and services produced by a country, referred to as size of the economy?

Question 8

Why is access to resources important for a country?

Answer 8

Resources can be used to created goods and services, which can be used for trade and building a stronger economy

Question 9

What is a country’s workforce?

Answer 9

The total number of people who are physically able to do a job and are available for work

Question 10

Why is a country’s workforce important?

Answer 10

They are relied upon to produce goods and services

Question 11

What is a need?

Answer 11

Something that is necessary to live a healthy life, such as food, water or shelter

Question 12

What is a want?

Answer 12

A desire for something, usually to satisfy a need, such as toys, games or designer clothes

Question 13

What are wants that people desire?

Answer 13

Unlimited, because people are greedy and always want more, leading to relative scarcity

Question 14

What is relative scarcity?

Answer 14

The fact that we do not have enough resources to satisfy all our needs and wants

Question 15

What is opportunity cost?

Answer 15

The loss of one alternative when another alternative is chosen

Question 16

What is an example of opportunity cost?

Answer 16

When you spend time and money watching a movie, you cannot spend that time watching footy and that money on dinner

Question 17

What is production possibility curve?

Answer 17

A graph that measures the maximum output of two goods using a fixed amount of input

Question 18

How does a consumer win?

Answer 18

By lowering the prices of goods and services a producer is providing

Question 19

How does a producer win?

Answer 19

By maximising its profits for owners and stakeholders

Question 20

How do consumers and producers rely on each other?

Answer 20

Consumers rely on producers to supply goods and services and producers rely on consumers to buy products so they can make a profit

Question 21

What is primary production?

Answer 21

An industry that extracts raw materials directly from the earth or sea, such as fishing or farming

Question 22

What is secondary production?

Answer 22

An industry that processes and manufactures products from raw materials, such as food processing and energy production

Question 23

What is tertiary production?

Answer 23

An industry that provides a service to customers, such as schools and restaurants

Question 24

What are goods?

Answer 24

Physical objects such as food and clothing

Question 25

What are services?

Answer 25

The act of performing work for others such as painting or washing

Question 26

What is gross domestic product per capita?

Answer 26

A measure of a country’s economic output, dividing the country’s GDP by total population