Economics

Question 1

The economic problem

Answer 1

There are limited scarce resources, unlimited wants and needs

Question 2

Purpose of studying economics

Answer 2

Learn how people and countries improve overall standard of living

Question 3

Fiscal Policy

Answer 3

Use of government spending and taxation to influence the economy
Use to promote strong, sustainable growth and reduce poverty
Neutral, Expansionary, contractionary policy

Question 4

Income

Answer 4

Income is the money that an individual receives in exchange for working or making resources available for productive purposes

Question 5

Wealth

Answer 5

Wealth is value of all the assets owned by an individual that can earn an income in the future

Question 6

Gini Co-efftient

Answer 6

Used to measure extent of inequality in the distribution of income

Question 7

Economic Indicators

Answer 7

Economic growth rate
unemployment rate
inflation rate
human development index (HDI)
better life index
sustainability index

Question 8

Factors influencing consumer decisions

Answer 8

Price
Marketing
Availability and financing
Preference
Convenience
Ethical and environmental factors

Question 9

Increasing productivity

Answer 9

Productivity is amount of output produced by each unit of input

Improve quality of workforce
Improve quantity of capital

Question 10

Response to improved economic conditions

Answer 10

Researching new products
Expanding their market share
Investing in new technology and facilities
Consolidate financial position