Economic Participants

Question 1

business

Answer 1

firms and enterprises involved in the production of goods (non/durable physical items) and services (actions that benefit others)

Question 2

consumers

Answer 2

persons or groups who are the final users of goods and services produced within an economy

Question 3

exports

Answer 3

goods and services sold by local businesses to overseas consumers

Question 4

external sector

Answer 4

the part of the economy involved with the selling of exports and the purchase of imports of goods and services

Question 5

financial sector

Answer 5

organisations, such as banks, who act as borrowers and lenders of money

Question 6

imports

Answer 6

goods and services purchased by local consumers from overseas businesses

Question 7

income tax

Answer 7

a levy imposed by governments on an individual’s wages/salary to raise revenue

Question 8

investment

Answer 8

the direction of money into the purchase of equipment or premises for the establishment of a new business, or the expansion of an existing business

Question 9

savings

Answer 9

the portion of income not spent. Most often savings are deposited in financial institutions and become available for lending and investment.

Question 10

recession

Answer 10

a significant fall in spending and economic activity with high levels of unemployment.

Question 11

boom

Answer 11

a significant rise in spending and economic activity with low levels of unemployment.

Question 12

GDP

Answer 12

Gross domestic product is the standard measure of the value added created through the production of goods and services in a country during a certain period.