Solar System Worksheet

What is the primary role of a market in an economy?

• To determine the prices and allocate resources based on supply and demand

• To provide free goods to everyone

• To eliminate competition among producers

• To ensure that all goods are produced equally

How does an increase in demand for a product typically affect its price?

• The price decreases to encourage more production

• The price remains the same regardless of demand

• The price increases, which can lead to more resources being allocated to its production

• The price decreases, making it more affordable

What happens when there is a surplus of goods in the market?

• Prices will likely increase to encourage more production

• Producers may reduce the price to clear excess inventory, reallocating resources

• Demand will automatically increase to match the surplus

• Resources will be allocated to produce even more of that good

Which of the following strategies is most effective for a business to adapt to a sudden increase in demand for its product?

• Reducing the price of the product

• Focusing on advertising more

• Discontinuing the product line

• Increasing production capacity

A company notices that consumers are becoming more environmentally aware. What is the best way for the company to respond to this trend?

• Ignore the trend and continue with existing practices

• Increase the price of their products

• Develop eco-friendly products and practices

• Focus solely on increasing production speed

If a business is struggling with employee morale, what is an effective way to improve the work environment?

• Increase work hours without additional pay

• Provide opportunities for employee feedback and recognition

• Ignore employee concerns

• Focus solely on productivity without considering employee well-being

Why is the taxation system considered a crucial part of Australia’s economy?

• It provides funding for public services and infrastructure.

• It allows the government to control all businesses.

• It ensures that everyone pays the same amount of tax.

• It eliminates the need for private businesses.

In what way can businesses be affected by changes in tax rates?

• Higher taxes always lead to increased hiring.

• Changes in tax rates can influence investment decisions and pricing strategies.

• Tax rates have no impact on business operations.

• Lower taxes mean businesses will always earn more profit.

What is a potential consequence of a high taxation rate on small businesses?

• It encourages them to expand rapidly.

• It guarantees that they will hire more employees.

• It has no effect on their financial decisions.

• It may lead to reduced profits and hinder growth.

Which of the following best describes the relationship between taxation and government services?

• Taxes help finance essential services like education and healthcare.

• Taxes are used solely for military funding.

• Government services are funded by voluntary donations, not taxes.

• Government services are unrelated to taxation.