Economics

Question 1

• What are the different kinds of economies?

Answer 1

• developing
• traditional
• market
• planned

Question 2

• What are the different types of resources?

Answer 2

• Capital
• Labour
• Land
• Enterprise

Question 3

• What is GDP?

Answer 3

• Gross domestic product

Question 4

• What is the economic problem?

Answer 4

• That we have a limited amount of resources for people’s unlimited wants

Question 5

• What is GDP per capita?

Answer 5

• How much a country produces per year

Question 6

• What is globalisation?

Answer 6

• it is free movement of goods, capital, services, people, technology and information

Question 7

• What is the law of demand?

Answer 7

• the higher the price of a good, the less people will demand the good

Question 8

• What is the law of supply?

Answer 8

• the higher the price, the higher the quantity supplied

Question 9

• Why do nations trade?

Answer 9

• Countries trade with each other when they do not have the resources, or capacity to satisfy their own needs and wants

Question 10

• What are the advantages of globalisation?

Answer 10

• increased free trade and communication between nations

- access to more resources, technologies, healthcare, education

Question 11

• what are the disadvantages of globalisation?

Answer 11

• companies face more competition

- Developed countries can stifle development of undeveloped and under-developed countries

Question 12

• what is inflation?

Answer 12

• the general increase in prices and fall in purchasing of a good or service

Question 13

• what can be done about inflation?

Answer 13

• the government can control money policies etc.

Question 14

• what is the Gini coefficient?

Answer 14

• a statistical measure of the degree of variation represented in a set of values, used especially in analysing income inequality
• measures the inequality in wealth in a country