CXC questions. Flashcards
CXC POB PAPER 1/2/3
What are the 3 BASIC needs of people?
The three basic needs of people are Food, clothing and shelter.
What are the activities we engage in to satisfy our needs called?
The activities we engage in to satisfy needs are called Economic activities.
What is the name given to people for engaging in activities to satisfy needs?
The name is economic animals
What is the name for someone meeting their needs without the aid of of others or the facility of money?
It is called direct production
What is a subsistence economy?
A subsistence economy is an economy that produces for their own needs and survival, such as meeting the needs for family or community.
Activities/Example of a subsistence economy
Examples of a subsistence economy are hunting, fishing and crafting
What is barter/bartering?
Barter is the act of exchanging one thing for another without the use of money.
Advantages of the bartering system?
Advantages of the bartering the system are being able to dispose surpluses of goods with trading, being able to receive a wider range of things that they needed
Disadvantages of a bartering system?
Some disadvantages of bartering are needing to find someone who produced the said product or had it, this may require long periods of searching or having to go longer distances to find the said product and if the other person even wanted to offer the product, it may also not meet the trade value such as if someone had a product with the value of a 100 and yours only had 40, it would not meet its value.
What is a surplus?
A surplus is exceeding the quantity necessary.
What are other forms of money used before notes and coins?
Other forms of money used before notes and coins are animals, teeth especially if gold, salt, shells, grain and fish hooks.
What is the name of forms of money used before notes and coins?
The name for forms of money used before notes and coins is called ‘token money’.
What are the characteristics of money?
The characteristics of money are durability, exchangeable, scarce, portable and acceptable.
What does the characteristic scarce mean in money?
The characteristic scarce means that its harder to acquire, meaning that it’s value would be maintained.
What does the characteristic acceptable mean in money?
The characteristic acceptable means that the money should be allowed to use.
What does the characteristic portable mean in money?
The characteristic portable means that the money must be convenient to carry.
What does the characteristic exchangeable mean in money?
The characteristic exchangeable means that the money can be exchanged for services or goods.
What are the functions of money?
The functions of money consist of a measure of value, a store of value, medium for exchange and standard for postponed payment.
what does the function measure of value mean in money?
The function measure of value means that money can be used to state the prices of goods and services.
What does the function medium for exchange mean in money?
The function medium for exchange means that money can make exchanging good easier and makes barter unnecessary.
What does the function a store of value mean in money?
The function a store of value means that money can be saved and often goods cannot.
What does the function a standard for postponed payment mean in money?
The function a standard for postponed payments means that money can be earned and spent.
What are the instruments of exchange and payment?
The instruments of exchange and payment are Barter, Bill of exchange, Documentary credit and Electronic funds transfer
What is an Electronic Funds Transfer (EFT)?
EFT is the exchange of money without any physical paper money, this takes place in financial institutions such as banks and financial service providers through computer-based system and the transactions are done via debit or credit cards
