8ECON 7. Producers and Consumers

The economic problem is a problem of..........

• production

• abundance

• scarcity

• money

A market refers to .........

• a physical place.

• a situation where people are able to go out and buy food.

• Woolworths or Coles

• any situation where people exchange goods and services.

Interdependence refers to ............?

• ......the way in which we are able to look after ourselves.

• .......the way that a market creates goods and services.

• .......the way we rely on others to satisfy our wants and needs.

• .......the way that businesses decide what to produce.

What is another name for a 'firm'?

• business

• household

• consumer

• market

What is it called when a household uses a good or a service?

• supply

• interaction

• scarcity

• demand

Who are the two main participants in the economic circular flow matrix?

• households and firms

• firms and markets

• households and markets

• the government and people

Which of the following is not one of the ways that households and firms interact?

• Producers or firms use resources such as labour from households to produce their goods and services.

• Households earn money from supplying labour to the firms.

• Producers or firms use pay taxes to the government in encourage social cohesion.

• Firms supply goods and services to households.

Which of the following is not one of the ways that households and firms interact?

• Producers or firms use resources such as labour from households to produce their goods and services.

• Households create goods and services to supply to the market

• Producers or firms use pay taxes to the government in encourage social cohesion.

• Households spend their money to receive these goods and services.

Which of the following is not one of the ways that households and firms interact?

• Producers or firms use resources such as labour from households to produce their goods and services.

• Households create goods and services to supply to the market

• Firms supply goods and services to households.

• Households save their money in a bank.

What is another name for the resource that households provide to firms?

• land

• labour

• capital

• enterprise