economics 1

Question 1

what is a consumer

Answer 1

a person or organisation that directly uses goods or service

Question 2

what is a producer

Answer 2

a person ,company or country that makes grows or supplies goods and service

Question 3

what is the government

Answer 3

a political authority that decides how a country is run and manages its operation

Question 4

a good

Answer 4

a tangible product i.e a product that can be seen or touched

Question 5

a service

Answer 5

an intangible product i.e a product that cannot be seen or touched

Question 6

roles of consumers

Answer 6

influenced by how much benefit they will gain from a good, which enables them to put a price on how much they value it and to make sensible decisions on the value of a good. Consumers need to have information about about the good available.

Question 7

role of producers

Answer 7

they are influenced by how much benefit they receive from a good such as profit.in order to maximise profit suppliers choose what and how they will produce it which can affect quantity, price or quality of the goods produced.

Question 8

role of the government

Answer 8

group of people who run a country, are influenced by wanting the best for society. they can impact the whole economy by its policies such as changing the level of unemployment benefit. they can impact markets for specific goods and services such as adding tax and they spend money in an economy by providing services such as healthcare and transferring money directly to individuals such as child benefit.

Question 9

what is factors of production

Answer 9

the resources in an economy that can be used to make goods and services such as labour capital land and enterprise

Question 10

land

Answer 10

the natural resources available for production in an economy such as oil trees the seas and soil

Question 11

capital

Answer 11

the man-made aids to production in an economy such as manufacturing infrastructure tools or transport

Question 12

labour

Answer 12

the workforce available for production in an economy. its affected by the quantity and quality of people able to work and can be affected from education or health

Question 13

enterprise

Answer 13

the factor of production which involves taking a risk and organising the other three factors in production.

Question 14

describe the combination of factors of production and the process

Answer 14

an entrepreneur bears the risk and takes forward a business idea which he then decides on the quantities of the different factors of production to combine and organise them during production which leads to goods and services being produced