Part 2

Question 1

Market

Answer 1

Is a way of bringing together buyers and sellers

Question 2

Market economy

Answer 2

An economy in which scarce resources are allocated by the market

Question 3

Primary sector

Answer 3

The direct use of natural resources including extraction of basic materials and goods from land and sea

Question 4

Secondary sector

Answer 4

All activities in an economy concerned with either manufacturing or construction

Question 5

Tertiary sector

Answer 5

All activities in an economy that involve the idea of a service

Question 6

Production of goods

Answer 6

Involves using and finished goods to make a whole good

Question 7

Production of services

Answer 7

Is the process of providing service to a consumer

Question 8

Product market

Answer 8

Where final goods and services are offered to consumers businesses and the public sector

Question 9

Factor market

Answer 9

Where the services of the factors of production and are brought and sold

Question 10

Specialisation

Answer 10

The process by which individuals, firms regions and countries concentrate on producing those products that they are best at doing

Question 11

Exchange

Answer 11

The giving up of something that an individual or firm has in return for something they wish to have

Question 12

What is demand

Answer 12

The willingness and ability to purchase a good or service at the given price in a given time period

Question 13

Law of demand

Answer 13

Normally, the quantity demanded varies inversely with the price

Question 14

Demand curve

Answer 14

A graph that shows how the demand for a product varies with the changes in prices

Question 15

Individual demand

Answer 15

The demand for a good or service by and individual consumer

Question 16

Market demand

Answer 16

The total fend for a good or service
Found by adding together all individual demands

Question 17

Shifting the demand curve is

Answer 17

A complete moment of the existing demand curve either outward to the right or inward to the left

Question 18

Movement along the demand curve

Answer 18

When the price changes (due to a change in supply) leading to a movement up or down the existing demand curve

Question 19

What causes a shift in demand

Answer 19

Shifts in the demand curve are cause by non-price factors

Question 20

Subsidy

Answer 20

An amount of Manet a gonverment gives directly to firms and encourage production and consumption

Question 21

Tax

Answer 21

A compulsory payment to the government

Question 22

Price elasticity of demand

Answer 22

The responsiveness of quantity demand to a change in the price of the product

Question 23

Elastic demand

Answer 23

When the percentage change in quantity demand is greater than the percentage change in price

Question 24

Interesting demand

Answer 24

When the percentage change in Quantity demand is less the percentage change in price

Question 25

Supply curve

Answer 25

A graph showing how the supply of a product varies with changes In its price

Question 26

Individual supply

Answer 26

The supply of a god or service by an Individual producer

Question 27

Market supply

Answer 27

The total supply of goods and services found together by adding together all individual producers supplies

Question 28

Shift of the supply curve

Answer 28

A complete movement of the existing supply curve either to the right or left leading to more or less profit

Question 29

Movement along the supply curve

Answer 29

When the price changes moving it up or down

Question 30

Price elacisity of supply

Answer 30

The responsiveness of quantity supplied to a change in the price of the product

Question 31

Elastic supply

Answer 31

When the percentage change u. Quantity supplied is less than the percentage change