Y9 Economics W2

Firms provide households with income in return for...

• Resources

• Expenditure

• Output

Consumers are called 'firms' in the circular flow model

• True

• False

Leakages include...

• Tax, government spending and savings

• Government spending, exports and imports

• Savings, tax, and imports

The 4 objectives of a government in a market economy are...

• Efficiency, Spending, Equity, Economic growth/stability

• Efficiency, Infrastructure, Equity, Economic growth/stability

• Efficiency, Innovation, Equity, Economic growth/stability

Essential infrastructure provided by the government includes...

• Public transport

• Communication and banking

• Education and healthcare

• All of the above

Market economies produce a socially fair/equitable distribution of wealth

• True

• False

Scarcity refers to the fact that there aren't enough resources to satisfy all our needs and wants

• True

• False

What question(s) must all economic systems answer?

• What to produce?

• How to produce?

• For whom to produce?

• All of the above

In a traditional/subsistence economy, 'what to produce' depends on what is available through hunting and gathering

• True

• False

In market capitalist economies, 'what to produce' is determined by..

• The producer choosing the most cost-effective method of production

• Producers decide what consumers want and what they will pay

• The government