8 Econs CAT Revision

Why is studying economics important?

• To make informed decisions as a consumer.

• To understand the economy and government policies

• To be a successful business owner

• All of the above

What type of economy does Australia have?

• Command economy

• Traditional economy

• Market economy

What is the law of demand?

• As the price of a good or service increases, the quantity demanded increases

• As the price of a good or service decreases, the quantity demanded increases

• The demand for a good or service is constant

• The demand for a good or service is unpredictable

What is the law of supply?

• As the price of a good or service increases, the quantity supplied increases

• As the price of a good or service decreases, the quantity supplied increases

• The supply for a good or service is constant

• The supply for a good or service is unpredictable

What is interdependence?

• The reliance of businesses on the government for resources

• The reliance of households on businesses for employment

• The reliance of businesses and households on each other for resources and goods

• The reliance of the government on businesses for revenue

What is scarcity?

• The unlimited availability of resources and goods

• The limited availability of resources and goods

• The overabundance of resources and goods

• The equilibrium of resources and goods

What are the four factors of production?

• Land, labor, capital, and enterprise

• Goods, services, labor, and management

• Money, resources, labor, and entrepreneurship

• Marketing, production, sales, and distribution

Which factor of production refers to the natural resources used to produce goods and services?

• Labor

• Capital

• Enterprise

• Land

Which factor of production refers to the effort and skills of people involved in the production process?

• Labor

• Capital

• Enterprise

• Land

Which factor of production refers to the effort and skills of people involved in the production process?

• Labor

• Capital

• Enterprise

• Land