Year 10 Business Test 1

Demand refers to the willingness and ​ (a)   of buyers to purchase goods

• ability
• credit
• opportunity cost
• scarcity

The Law of Supply states that

• As price increases quantity supplied increases

• As price increases quantity supplied decrease

• As price increases quantity demanded decreases

• As price increases the happier you get

What are the four factors of production?

• Land, labor, capital, and entrepreneurship

• Water, wind, solar, and natural gas

• Food, shelter, clothing, and healthcare

• Education, entertainment, transportation, and communication

Briefly (approx. 2 sentences) define the following:

The economic problem

Briefly (approx. 2 sentences) define the following:

An Economic System

Briefly (approx. 2 sentences) define the following:

Price Equilibrium

Briefly (approx. 2 sentences) define the following:

Market Economy

Briefly (approx. 2 sentences) define the following:

Planned Economy:

Label the graph

c

d

e

f

a

b

Supply

Price

Quantity

Equilibrium Quantity

Demand

Equilibrium Price

Describe the situation that this graph is reflecting. What is occurring in the graph?