Understanding Economic Concepts Quiz

What is an economy?

• A person who purchases goods and services for personal use

• A system established to determine what to produce, how to produce and to whom production will be distributed

• A way of organising the production and distribution of the nation’s goods, services and incomes

• A person, company, or country that makes, grows, or supplies goods or commodities for sale

What is an economic system?

• A person who purchases goods and services for personal use

• A system established to determine what to produce, how to produce and to whom production will be distributed

• A way of organising the production and distribution of the nation’s goods, services and incomes

• The economic problem of having unlimited needs and wants with only limited means to satisfy them

Who is a consumer?

• A person who purchases goods and services for personal use

• A person, company, or country that makes, grows, or supplies goods or commodities for sale

• A system established to determine what to produce, how to produce and to whom production will be distributed

• A way of organising the production and distribution of the nation’s goods, services and incomes

Who is a producer?

• A person who purchases goods and services for personal use

• A person, company, or country that makes, grows, or supplies goods or commodities for sale

• A way of organising the production and distribution of the nation’s goods, services and incomes

• The economic problem of having unlimited needs and wants with only limited means to satisfy them

What is relative scarcity?

• A person who purchases goods and services for personal use

• A system established to determine what to produce, how to produce and to whom production will be distributed

• The economic problem of having unlimited needs and wants with only limited means to satisfy them

• A way of organising the production and distribution of the nation’s goods, services and incomes

What is the household sector?

• This sector is made up of all businesses in the economy

• This sector is made up of individuals in the economy who provide their time and skills or ‘labour’ to firms in exchange for income (wages)

• This sector is made up of banks and other financial institutions in the economy

• A person, company, or country that makes, grows, or supplies goods or commodities for sale

What is the business sector?

• This sector is made up of individuals in the economy who provide their time and skills or ‘labour’ to firms in exchange for income (wages)

• This sector is made up of banks and other financial institutions in the economy

• This sector is made up of all businesses in the economy that produce output (goods and services), which they sell to consumers and receive revenue

• A person who purchases goods and services for personal use

What is the financial sector?

• This sector is made up of individuals in the economy who provide their time and skills or ‘labour’ to firms in exchange for income (wages)

• This sector is made up of all businesses in the economy

• This sector is made up of banks and other financial institutions in the economy that receive savings from households

• A person, company, or country that makes, grows, or supplies goods or commodities for sale

What is opportunity cost?

• The economic problem of having unlimited needs and wants with only limited means to satisfy them

• A sum of money saved or made available for a particular purpose

• What you give up (the next best alternative) in order to gain something

• The difference between the value of a country’s exports and the value of its imports over a specific period of time

What is globalisation?

• The process by which businesses or other organisations develop international influence or start operating on an international scale

• A large business organisation that has a home base in one country and operates partially or wholly owned businesses in other countries

• A network between a company and its suppliers to produce and distribute a specific product or service

• The value of all the goods and services produced within a country in a given period of time