Unit 11

Question 0

What is the difference between a need and a want?

Answer 0

A need is essential; a want is not.

Question 1

Name the stages of the personal life cycle.

Answer 1

Childhood, adolescence, young adult, middle adult, old adult.

Question 2

What are some milestones of the personal life cycle?q

Answer 2

Leaving school
Gaining employment
Promotion
Unemployment

Question 3

How does the government affect the personal life cycle?

Answer 3

Adolescents receive Education Maintenance Allowance.
Workers receive tax credits.
Job centres provide services to help people find employment.
Pensions are paid to retirees.

Question 4

What is the basic economic problem?

Answer 4

resources are limited but needs and wants are infinite.

Question 5

What is an opportunity cost?

Answer 5

Something given up when making a choice

Question 6

What factors can affect spending?

Answer 6

Income
Advertising
Prices of substitutes
Fashion

Question 7

What factors affect supply?

Answer 7

Cost of raw materials
Wage rates
Worker productivity

Question 8

What are the benefits and disadvantages of competition to the consumer?

Answer 8

Benefits include lower prices, greater choice, and better quality.
Disadvantages include possible lower quality and poor after sales service.

Question 9

How can people save?

Answer 9

Locations include banks, online banks, national savings and post office card accounts.
Account types include ISAs, fixed-term investments, unit trusts, and government securities.

Question 10

What is AER?

Answer 10

Annual equivalent rate. It allows people to compare savings accounts and their interests.

Question 11

What are some high risk saving methods?

Answer 11

Shares, unit trusts and gilts.

Question 12

What are some methods of borrowing?

Answer 12

Mortgage, credit card, store card, personal loan, hire purchase, overdraft.

Question 13

What is APR?

Answer 13

The interest rate quoted on loans.

Question 14

What is a budget?

Answer 14

A financial plan of saving and spending.

Question 15

Why do people work? Why don’t people work?

Answer 15

People work for pay or job satisfaction.

People don’t work for education, childcare, retirement.

Question 16

What are the benefits and drawbacks of specialisation?

Answer 16

Benefits - workers become more skilled. More output. Lower unit costs.

Drawbacks - interdependence. Low morale. Lower flexibility.

Question 17

How has ICT changed working practices.

Answer 17

The internet increases online retail. Email increases communication. Home working makes it easier to work from home.

Question 18

In what ways are people paid?

Answer 18

Salary, wage, commission, overtime, shift work, BACS, fringe benefits.

Question 19

What is the difference between gross pay and net pay?

Answer 19

Gross pay is the total amount paid. Net lay is after tax deductions etc.

Question 20

Identify some potential deductions from gross pay.

Answer 20

Income tax, national insurance, pension contributions.

Question 21

What affects the supply of labour?

Answer 21

Monetary factors, gender, ethnicity, taxation and benefits.

Question 22

What can affect the demand for labour?

Answer 22

Government influence, wage determination.

Question 23

What can cause differences in wages?

Answer 23

Training, gender, age, trade unions, government influence

Question 24

What are the effects of unemployment on the individual?

Answer 24

Loss of skills, health, family breakdown and lost wages.

Question 25

How does the government help the unemployed?

Answer 25

Jobseeker's Allowance, working tax credits, new deal, education, apprenticeships.

Question 26

What is balance of payments?

Answer 26

The difference between the total value of exports and total value of imports.

Question 27

What are the advantages of international trade?

Answer 27

Income increases, growth increases, more choice, lower prices, more competition, make up for lack of raw materials.

Question 28

What are the disadvantages of trade to the UK economy?

Answer 28

Competition, economic dependency, unstable commodity prices, power of MNCs, pollution.

Question 29

How can exchange rates affect exports?

Answer 29

If the pound weakens against the euro, then counterintuitively exports will improve, as our goods and services will be cheaper.

Question 30

How do exchange rates affect imports?

Answer 30

If the pound weakens against the euro, exports will cost more.

Question 31

What other factors affect imports and exports?

Answer 31

Style, quality, reliability

Question 32

How do individuals affect businesses?

Answer 32

Boycotts and buying power.

Question 33

How do firms operating overseas affect the economy?

Answer 33

Advantages - lower operating costs, increased competitiveness, lower transport costs Disadvantages - jobs lost elsewhere, unfamiliar cultures, transport to markets, exchange rates.

Question 34

What are the effects of globalisation on the UK market?

Answer 34

Increased jobs, new migrants with labour skills, more market opportunities Low skilled jobs lost, lower wages, unemployment