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Chapters 1 + 2 Review

Total questions: 14

Worksheet time: 28mins

Name
Class
Date
1.

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

a)

Tertiary sector

b)

Needs

c)

Public business

d)

Primary production

2.

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

a)

the % of total workers employed in each sector

b)

how many people are happy

c)

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

d)

the amount of imports vs the amount of exports

3.

What am I?

Selling some public sector companies to private sector investors.

a)

Entrepreneur

b)

Interdependence

c)

Privatization

d)

Industrialisation

4.

An advantage of privatization is: Private businesses may be run more (a)   .

5.

What are the four factors of production?

4 lines
6.

In your own words, what is the economic problem?

4 lines
7.

Advantages of the division of labor:

a)

Workers are trained in one task and specialize in

this – this increases efficiency and output

b)

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

c)

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

d)

Quicker and cheaper to train workers as fewer

skills need to be taught

8.

Why can't the economic problem ever be solved?

a)

It can.

b)

Wants are unlimited

c)

People will always have needs.

d)

All of the above.

9.

Heavy rain caused floods in an area of a country.


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

a)

the decline in the tourist industry in the area

b)

the cost of providing shelter for those made homeless

c)

the loss of profits from businesses affected by the flood

d)

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

10.

Finish the sentence: Added value is...

(only 1 answer is perfectly correct)

a)

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

b)

the difference between costs and selling price

c)

the amount of money a company makes

d)

profit

11.

List 3 ways a company can add value. Mark them 1, 2, 3.

4 lines
12.

What am I?

An economy with both private and public sector activity.

a)

Privatisation

b)

Mixed economy

c)

Tertiary Sector

d)

Outsourcing

13.

What am I?

the process through which cities grow, and higher and higher percentages of the population comes to live in the city

a)

Outsourcing

b)

A mixed economy

c)

Privatisation

d)

Urbanisation

14.

Why might the primary sector lose importance?

a)

Living standards rise

b)

Urbanisation

c)

Depletion of natural resources

d)

All of the above