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Economic Terms

Total questions: 36

Worksheet time: 25mins

Name
Class
Date
1.

(a)   exists because we have insufficient resources to satisfy our needs and wants.

2.

_______ scarcity exists when it is not possible to produce more of something.

a)

relative

b)

absolute

c)

productive

d)

circular

3.

________ ___________ is the cost of the best alternative you give up when you make a choice. (two word answer)

(a)  

4.

The _____ sector has to do with the extraction of natural resources.

a)

primary

b)

secondary

c)

tertiary

d)

economic

5.

The ______ sector is where manufacturing and construction takes place.

a)

primary

b)

secondary

c)

tertiary

d)

quantum

6.

The _____ sector is where the delivery of services takes place and the good or service reaches the final consumer.

a)

tertiary

b)

delivery

c)

performance

d)

allocation

7.

The _______ _________ is where the factors of production are bought and sold.

(a)  

8.

An economy that uses markets to solve the problems of what to produce, how to produce and for whom to produce.

a)

market economy

b)

factor economy

c)

allocative economy

d)

econometrics

9.

In a(n) (a)   economy, the authorities decide on the production and distribution of the products. Resources are used and distributed according to the central-government plan.

10.

Economic goods...

a)

are provided by nature.

b)

are scarce at times.

c)

are produced by businesses.

d)

exclude services

11.

(a)   is the skill needed by the person who combines the other three factors of production and who takes a risk of opening a business and developing a product.

12.

With (a)   production, the producer and the consumer are the same. For example, subsistence farmers who grow their own food.

13.

(a)   intensive production occurs when businesses use a lot of machinery, equipment and tools in producing goods.

14.

A (a)   buys large quantities of goods from various producers and sells them to retailers. Examples are Makro and Cash and Carry.

15.

A (a)   sells smaller quantities to individual households. Spar and Pick ‘n Pay are examples of this in South Africa.

16.

These are goods that last for a while, but have to be replaced after a short period of time. E.g. Shoes and clothes.

a)

semi-durable goods

b)

durable goods

c)

medium term

d)

durable term

17.

Refers to progress and development which meets the needs of the present generation without compromising the ability of future generations to meet their own needs. (2 words)

(a)  

18.

A (a)   market refers to a period of consistently falling prices.

19.

Companies/shares that are considered to be a reliable investment.

a)

Blue chip

b)

Silicon Valley

c)

Retirement annuities

d)

Alt-X

20.

A (a)   market refers to a period of consistently rising prices.

21.

A (a)   flow is an economic model showing how money, goods and services move around an economy.

22.

An economy in which there is no foreign sector.

a)

closed economy

b)

open economy

c)

centrally planned economy

d)

communist

23.

When sellers coordinate their actions to influence the market, eg. hike up prices

a)

insider trading

b)

collusion

c)

tax avoidance

d)

tax evasion

24.

Cash paid out to shareholders from company profits.

(a)  

25.

Examples of a public goods/services include...

a)

education

b)

police service

c)

national roads

d)

healthcare

26.

(a)   is the study of economic issues that affect the whole economy, eg. unemployment, economic growth, inflation...

27.

Any contact or communication between buyers and sellers to exchange goods and services or factors of production for money.

a)

prospectus

b)

market

c)

barter

d)

gold standard

28.

The study of how specific groups of people (eg. consumers, exporters, govt) deal with scarcity (ie. make decisions)

(a)  

29.

Monopolistic competition...

a)

is a type of market in which products are differentiated on non-price factors, ie. are diversified

b)

is a type of market in which many sellers sell similar but not identical products

c)

is a type of market in which sellers have some, but limited control over price setting

d)

doesn't exist

30.

A monopoly is...

a)

a type a type of market in which there is a single dominant seller

b)

a type of market in which there are high barriers to entry and exit

c)

a type of market in which the product is unique – there are no close substitutes

d)

a type of market where a few suppliers dominate the market and set high prices

31.

A type of market in which there are relatively high barriers to entry and exit – entry/exit is difficult, but not impossible

a)

Monopoly

b)

Oligopoly

c)

Perfect market

d)

Open market

32.

A(n) (a)   economy is an economy that includes trade with the foreign sector.

33.

Remuneration earned in exchange for entrepreneurship.

(a)  

34.

Remuneration earned in exchange for physical/natural resources.

(a)  

35.

(a)   statements are statements that contain a value judgement.

36.

(a)   statements are statements that can be proven right or wrong.