Economics

Question 1

Scarcity

Answer 1

Economic problem of having unlimited needs and wants , but limited resources available

Question 2

Resources

Answer 2

Natural or man made materials that are used to fulfil our needs and wants. People are also considered resources

Question 3

Economic resources (factors of production)

Answer 3

Land, labour, capital, entrepreneurship

Question 4

Key concepts of economics and business (6)

Answer 4

Scarcity, making choices, specialisation and trade, interdependence, allocation and markets, economic performance and living standards

Question 5

Economic decisions

Answer 5

Financial choices, business decisions, employment decisions and legal decisions

Question 6

Specialisation

Answer 6

A term that refers to the way an individual, business or entire country can focus on the production of a particular good or service in order to develop a more efficient and competitive production process

Question 7

Interdependence

Answer 7

A term that refers to the way we rely on others to satisfy our needs and wants

Question 8

Allocation

Answer 8

The concept that refers to the way we distribute our scarce resources among producers and then distribute scarce goods or services among consumers

Question 9

Market

Answer 9

The exchange of goods and services among buyers and sellers

Question 10

Economic performance

Answer 10

Measurement of how well and economy is doing

Question 11

Economic indicators

Answer 11

GDP, inflation, unemployment, productivity

Question 12

Material living standards

Answer 12

Refer to our access to physical goods and services

Question 13

Non-material living standards

Answer 13

Include things that contribute to our happiness (freedom, low crime, etc)

Question 14

GDP

Answer 14

A measure of the total value of final goods and services produced in a country over a year

Question 15

Gross (in GDP)

Answer 15

Total figure before depreciation (deductions are not taken into account)

Question 16

Domestic (in GDP)

Answer 16

Within a country

Question 17

Product (in GDP)

Answer 17

Final goods and services

Question 18

Recession

Answer 18

Economic growth falls for two or more quarters in a row

Question 19

Depression

Answer 19

An ‘extreme’ recession, lasting two or more years

Question 20

Inflation

Answer 20

Increase in the general level of prices paid for goods and services over a certain period of time

Question 21

CPI

Answer 21

The way the ABS measures inflation

Question 22

Interest rates

Answer 22

The price of ‘borrowing’ money

Question 23

Unemployment rate

Answer 23

The percentage of people in the labour force who are unemployed

Question 24

Labour force

Answer 24

Employed (working at least 1 hour a week) + unemployed (ready to start work and taking advice steps to find a job)

Question 25

Frictional unemployment

Answer 25

Created by movement between jobs/in or out of training, etc

Question 26

Cyclical unemployment

Answer 26

Relating to level of demand in the economy at the time.

Question 27

Seasonal unemployment

Answer 27

Those who are temporarily unemployed due to their work not being consistent through the year

Question 28

Structural unemployment

Answer 28

Changing priorities/focus of an economy. Industries decline, while others rise. New technologies replace workers, but create other opportunities.

Question 29

Hidden unemployment

Answer 29

Those who’ve given up even looking for a job

Question 30

OECD

Answer 30

Organisation for Economic Co-operation and Development

Question 31

Productivity

Answer 31

Measures what can be produced (output) from a given amount of resources (input)

Question 32

Labour productivity

Answer 32

Measures the amount of goods and services that a worker produces in a given amount of time

Question 33

Capital productivity

Answer 33

Measures the amount of goods and services that can be produced using a fixed amount of capital in a given amount of time