Intro To Economics And Role Of Markets 1.1 ,1.2 ,2.1

Question 1

Factors of production

Answer 1

the resources in an economy that can be used to make good & services

Question 2

Labour

Answer 2

the factor of production that is concerned with the workforce of an economy

Question 3

Land

Answer 3

the factor of production that is is concerned with the natural resources of an economy e.g farmland

Question 4

Capital

Answer 4

the factor of production that uses human-made aids

Question 5

enterprise

Answer 5

the factor of production that takes a risk in organising the other three factors of production. The individual who takes this risk is known as the entrepeneur

Question 6

scarce resources

Answer 6

when there is an insufficient amount of something to satisfy all wants

Question 7

unlimited wants

Answer 7

the infinite desire for something

Question 8

need

Answer 8

something a consumer has to survive

Question 9

want

Answer 9

something a consumer would like to have is not essential to survive

Question 10

economic problem

Answer 10

how to best use scarce resources to satisfy the unlimited wants of people

Question 11

opportunity cost

Answer 11

the next best alternative given up when making a choice

Question 12

economic sustainability

Answer 12

the best use of resources in order to create responsible development or growth now and into the future

Question 13

environmental sustainability

Answer 13

the impact of development or growth where the effect on the environment is small and possible to manage, now and into the future

Question 14

social sustainability

Answer 14

the impact of development or growth that promotes an improvement in quality of life for all, now and into the future

Question 15

market

Answer 15

a way of bringing buyers and sellers to buy and sell goods & services

Question 16

market economy

Answer 16

an economy in which scarce resources are allocated by the market forces of supply and demand

Question 17

primary sector

Answer 17

the direct use of natural resources such as the extraction of basic materials and goods from land and sea

Question 18

secondary sector

Answer 18

all activities in a an economy that are concerned with either manufacturing or construction

Question 19

tertiary sector

Answer 19

all activities in an economy that involves the idea of a service

Question 20

factor market

Answer 20

market in which the services of the factors of production are bought and sold

Question 21

product market

Answer 21

market in which final good and services are offered to consumers, businesses and public sector

Question 22

Exchange

Answer 22

The giving up of something an individual/firm had in return for something they wish to have

Question 23

Specialisation

Answer 23

The process by which individuals/firms/regions and whole economies concentrate in producing those products that they are best at producing

Question 24

Division of labour

Answer 24

Where workers specialise in,or concentrate on, one area of the production process

Question 25

Consumer

Answer 25

A person or organisation that directly uses a good or service

Question 26

Producer

Answer 26

A person, company or country that makes grows or supplies goods and services

Question 27

Government

Answer 27

A political authority that decides how a country is run and manages it’s operation

Question 28

derived demand

Answer 28

A product or factor of production is not demanded for itself but is dependent on the demand for the product it helps to produce

Question 29

Specialisation

Answer 29

The process by which individuals, firms, regions and whole economies concentrate on producing the products they are best at producing

Question 30

Exchange

Answer 30

The giving up of something that the individual or firm has in return for something they wish but do not possess

Question 31

Division of labour

Answer 31

Where workers specialise in, or concentrate on one area of the production process