Sac 1

Question 1

Microeconomics

Answer 1

Is a branch of economics that examines the activities and decision making by individual firms, households and industries and how this impacts on demand and supply in the markets for particular goods or services

Question 2

Macroeconomics

Answer 2

Is a branch of economics that examines the workings and problems of the economy as a whole.

Question 3

Labour resources

Answer 3

Are the machines

Question 4

Derived demand

Answer 4

Is when a resource is only wanted when another good or service is purchased.

Question 5

Deregulation

Answer 5

Is the removal of government controls on the operation of the economy

Question 6

Consumer sovereignty

Answer 6

Is where the particular types of goods and services produced reflect what consumers purchase

Question 7

Oligopoly

Answer 7

Exists when the level of competition is limited

Question 8

Efficiency

Answer 8

Relates to the level of output per unit of input.

Question 9

Price elasticity

Answer 9

Is a degree in which change in price affects the demand

Question 10

Capitalist

Answer 10

Free market choices

Question 11

Socialist

Answer 11

State owned

Question 12

Communism

Answer 12

Public ownership

Question 13

Convergence theory

Answer 13

Suggests that the differences that exist between economic systems may tend to disappear and the worlds economies will become similar.

Question 14

Factor markets

Answer 14

Are institutions where various resources or factors of production are bought and sold at a price that reflects their relative scarcity

Question 15

Opportunity cost

Answer 15

A particular choice and decision is equal to the benefit given upon an area of production, caused by a decision to direct resources into an alternative use.

Question 16

Relative scarcity

Answer 16

Occurs when a nation has limited resources available for the production of goods and services compared with people’s wants