Chapters 1 + 2 Review

What am I? Extracts natural resources and produces raw materials (crude oil, iron ore, forestry, agriculture, fishing).

• Tertiary sector

• Needs

• Public business

• Primary production

The importance of the primary, secondary and tertiary sector depends on... (2 answers)

• the % of total workers employed in each sector

• how many people are happy

• the value of output of products as a proportion of total national output

• the amount of imports vs the amount of exports

What am I?

Selling some public sector companies to private sector investors.

• Entrepreneur

• Interdependence

• Privatization

• Industrialisation

An advantage of privatization is: Private businesses may be run more ______________.

What are the four factors of production?

In your own words, what is the economic problem?

Advantages of the division of labor:

• Workers are trained in one task and specialize in

  this – this increases efficiency and output

• If one worker is absent and no one else can do the job, production might be stopped

• Workers can become bored doing just one job – efficiency might fall

• Quicker and cheaper to train workers as fewer

  skills need to be taught

Why can't the economic problem ever be solved?

• It can.

• Wants are unlimited

• People will always have needs.

• All of the above.

Heavy rain caused floods in an area of a country.

What may be an opportunity cost of repairing the damage caused?

• the decline in the tourist industry in the area

• the cost of providing shelter for those made homeless

• the loss of profits from businesses affected by the flood

• the allocation of government funds to the area instead of on a new airport

Finish the sentence: Added value is...

(only 1 answer is perfectly correct)

• the value added by the work or processes carried out by the business

• the difference between costs and selling price

• the amount of money a company makes

• profit