OCR GCSE Economics - 2.1 - The Role of Markets

A market is

• A place where buyers and sellers come together

• A place where people can buy goods

• A place where buyers and sellers come together and agree a price for the exchange of goods and services

Raw material is related to

• Primary sector

• Secondary sector

• Tertiary sector

• Services

The main activities in the secondary sector are:

• Industry and education

• Industry and construction

• Construction and agriculture

• Education and training

A teacher belongs to the:

• Primary sector

• Secondary sector

• Tertiary sector

In the secondary sector, workers:

• Work in shops

• Obtain raw materials

• Transform raw materials into products

Which of the following is traded in a factor market?

• Stationery

• Car parts

• Food

• Teachers

Which of the following is traded in a product market?

• Fishermen

• Carrots

• Fields

• Workers

Which is not an advantage of specialisation and division of labour in the production of goods?

• The division of labour requires less training time

• Firms produce on a larger scale, i.e. economies of scale

• Big production tasks are manageable by spreading the work out

• The division of labour can make jobs highly repetitive

Why are most countries better off specialising in the production of particular goods and then trading with other nations to obtain whatever else they need?

• Transport costs are lower than they were a century ago

• Resources are not evenly distributed among countries

• Greater investment of capital goods increases productivity

• People have limited resources to satisfy unlimited wants

Kathy, Sue and Christina owns a bakery. Each day all three women spend hours baking cakes, decorating cakes and packaging cakes. Which economic concept would help them become more efficient?

• Scarcity

• Productivity

• Specialisation

• Interdependence