Year 9 Economics - Do Now

Which of the following is a flow in the circular flow model?

• Goods and Services

• Factors of Production

• All 3

• Wages/Salaries

What is the remaining flow in the circular flow model?

• Consumer Saving

• Consumer Spending

• Consumer Running

• None of these

What is meant by the law of supply?

• Businesses are willing to produce more of a good when the price is low.

• Businesses will produce less of the good when the price is high.

• The higher the price of a good the more of that good a producer will be willing to produce.

• All 3.

What is meant by the law of demand?

• Consumers are happy yo pay a high price if the quality is good.

• The higher the price the less likely consumers are to buy.

• The higher the price the more likely consumers are to buy.

• The lower the price, the less likely consumers are to buy.

What is meant by equilibrium?

• The point where quantity supplied and demanded only makes the producer happy.

• Where the quantity supplied and demanded is the same. This is the price at which both producers and consumers are happy.

• The point where quantity supplied and demanded only makes the consumer happy.

• All 3.

What is one way the government participates in the economy?

• Taxes

• Inputting law and order.

• All 3.

• Promoting free market competitiveness.

What is a planned economy?

• One where producers and consumers plan ahead.

• An economic
   system in which a government or ruler makes most or all of the important decisions about the production and distribution of goods & services in the society.

• An economic system where firms plan and make decisions for both them and the consumers?

• All 3.