Applied Sciences Unit 3 Economics Revision

What is the main purpose of a positive incentive?

• To make decisions harder for people

• To confuse people about their choices

• To punish someone for making a bad choice

• To encourage someone by offering a reward

Which of the following is an example of a nonrenewable resource?

• Sunlight

• Wind

• Coal

• Geothermal energy

What are the four important factors involved in production?

• Land, technology, finance, and marketing

• Workers, machines, trade, and resources

• Land, labor, capital, and entrepreneurship

• Goods, services, imports, and exports

When a country sells products to another country, what is this called?

• Export

• Fairtrade

• Import

• Trade

How does specialization benefit businesses?

• It prevents them from making money.

• It allows them to do everything at once.

• It helps them become really skilled in one area.

• It makes it harder for them to compete.

Which of the following best describes Fairtrade?

• A system that allows countries to trade freely without rules

• A method to ensure workers are paid fairly for their work

• A way to sell products at the highest price possible

• A type of trade that only involves goods, not services

What is the difference between goods and services?

• Goods are physical objects, while services are actions provided to help others.

• Goods are free, while services cost money.

• Goods are only sold in stores, while services are only provided at home.

• Goods are made by machines, while services are made by people.

Why is it important for countries to manage their resources wisely?

• To make sure no one can use renewable resources

• To avoid running out of nonrenewable resources

• To ensure they can use all resources as quickly as possible

• To prevent all trade with other countries

How can a country improve its economy through its natural resources?

• By keeping all resources for itself and not trading

• By selling valuable resources to other countries

• By using all resources for tourism only

• By ignoring the resources altogether

Which of the following statements is true about trade?

• Trade only benefits the country that exports goods.

• Trade allows countries to obtain resources they do not have.

• Trade makes it impossible for businesses to grow.

• Trade is only important for developed countries.