Worksheets5. THE ECONOMIC ORGANISATION OF SOCIETY
Total questions: 54
Worksheet time: 25mins
It is s the term we use to describe all the different jobs done by people in order to satisfy society's needs and desires.
human activity
economic activity
market economy
job market
The three phases of economic activity in order are:
consumption, distribution and production
distribution, production and consumption
production, consumption and distribution
production, distribution and consumption
Provides goods and services for consumption.
distribution
production
It combines the use of natural resources, skills and labour.
consumption
distribution
production
It includes the delivery and sale of goods and services.
consumption
distribution
production
This is the last phase of economic activity, when a product or a service is used to satisfy a need or desire.
consumption
distribution
production
It involves the storage, transport, marketing and sale of goods to the consumer.
consumption
distribution
production
They satisfy the desires or needs of the consumer.For example, clothes.
consumer goods
intermediate goods
services
retail
Healthcare, transport, information...
consumer goods
intermediate goods
services
retails
wholesales
They are materials or parts that are used to make other goods. For example, the flour.
consumer goods
intermediate goods
services
retails
wholesales
There are two steps in the sales process:
Wholesale.Big businesses buy a large number of products and sell them to smaller companies.
Retail.Big businesses buy a large number of products and sell them to smaller companies.
Retail.Retail businesses buy a large number of goods from wholesalers and sell them directly to the public, in shops.
Retail. Small businesses buy a small number of goods from wholesalers and sell them directly to the public, in shops.
Goods non-durable.
These are consumed in one or several uses
We use these goods for an extended period of time
cars and electrical appliances
water and food
Economic activity is made up of ....sectors.
one
two
three
four
The first sector involves...
arable
fishing
industry
construction
transport
The second sector involves...
livestock farming
energy
construction
industry
silviculture
The third sector involves...
livestock farming
mining
transport
tourism
industry
Which activities are related to production?
car industry
retail
transport
fishing
fruit harvesting
There are three key ingredients necessary for the production of goods:
natural resources
raw materials
labour
capital
family
Most people work in companies or in public administration. People who work for themselves, such as farmers and artisans, are ....
freelance
wholesalers
self-employed
big businesses
Which statements are true?
Natural resources provide the raw materials for the production of goods.
Natural resources are illimited, it is important to protect them or find alternatives.
Goods need to be manufactured or prepared before they can be sold.
The provision of services requires infrastructure and organisation. Both processes require different forms of labour.
People work to earn money to satisfy their needs, which is why it isn´t considered a basic human right.
Capital includes all of the resources used to produce goods or services. There are three types of capital:
physical
human
financial
techonological
This includes the money in a company's bank accounts, as well as stocks and other financial assets.
human capital
financial capital
physical capital
technology
It consists of the methods used to produce goods and services.
human capital
financial capital
physical capital
technology
Human capital ....
the buildings, machinery and raw materials
the money
the skills acquired by business people in the workplace
the skills acquired by employees from experience and training
Physical capital
bank accounts
buildings
technology
machinery
raw materials
What is surplus production?
It is when production exceeds consumers’ demand.
It is when production don't exceed consumers’ demand.
It is the predominant economic system today.
capitalism
planned economy
market economy
subsistence system
It is based on supply and demand in a free market.
capitalism
planned economy
market economy
subsistence system
Which statements are true?
We buy and sell goods and services in the market.
There are sellers that sell goods (demand) and buyers that buy goods (supply).
The sellers want to maximise their profit and earn money from their sales; the buyers want to pay the lowest possible price.
In theory, only the sellers that offer the lowest prices and the highest quality will sell their products.
Which statements are true?
The price only depends of the number of products available.
If there are enough products to meet the buyers ́needs, then the price increases.
If there is a lot of supply and little demand, then the price decreases.
It is the general rise in the price of a country's goods and services.
demand
inflation
surplus
supply
The main causes of inflation are:
an decrease in the amount of currency in circulation
an increase in the amount of currency in circulation
a rise in the cost of production
the purchasing power of consumers
With the law of supply and demand, price and quantity...
fluctuate
not fluctuate
are fixed
are not fixed
Which statements are true?
Advertising cannot affect the price of a product.
Companies describe the products and services they offer by advertising them.
Deceptive advertising does benefit society.
Advertising encourages people to think they need certain products, and condition their behaviour.
The planned economy
people produce goods and services to meet their basic needs
the state owns the means of production and controls the economy
Individuals build their own homes, get their own food, and make their own clothes
was widespread for much of the 20th century but now exists in a few places, such as North Korea and Cuba.
is found in societies with very low levels of development
What are the three main types of economic agents?
companies
families
private sector
public sector
state
Trey are the people, groups or institutions involved in the economy. They produce, exchange or consume products or services.
Economic activity
Economic agents
Market economy
Capital
They are the main agents of consumption because they use a large portion of their economic resources to buy goods and services to satisfy their needs and desires.
Companies
Families
Businesses
Wholesalers
They are the main agents of production and distribution. They produce, market and distribute the goods and services that reach the market.
companies
families
public sector
state
Which statements are true?
The goods that companies produce don´t have a cost.
The cost depends on the price of raw materials, energy, the investment in machines and facilities, transport, salaries and interest paid on money borrowed from the bank.
In the market, companies sell goods for a price that is smaller than their cost.
The difference between the sale price and the cost is called profit.
The public sector is the economic and social activities of the state. These activities are paid for with taxes.
True
False
The state uses money to:
maintain public administration
promote economic activity but not social relationships between people.
subside and help the private sector
organise public services
offer social provisions
Which statements are true?
Companies hire employees to do their economic activities.
When a company advertises a position, candidates apply for it.
Successful candidates are hired but not receive a salary.
The supply of and demand for labour form the basis of the job market.
Which statements about the active population are true?
It is made up of people currently employed and people who are unemployed or looking for a job.
In recent years, it has increased significantly due to a rise in the number of men working.
Today, children must attend school until they are 16 and the retirement age is approximately 85.
In general, men have higher positions than women in all sectors at every age.
Men, in general, receive higher salaries.
The primary sector has significantly decreased in importance and the service sector has grown. Employment in industry has also decreased, although it still employs more than the primary sector.
True
False
Many companies have reduced their staff and costs as a result of automated production and outsourcing.
True
False
Globalisation...
began in the second half of the 19th century
began in the second half of the 20th century
was a phenomenon that emerged as countries around the world became increasingly interdependent
The main characteristics of globalisation are the following:
Worldwide influence
Immediacy
Indirect relation to economics
Influence on society
Global consciousness
Historically, the global economy has been divided into three centres of economic and political power:
China
Japan
The European Union
The United States
Russia
Economic globalisation has the following characteristics:
It concentrates capital
It creates small companies
It supports free trade
It facilitates speculation in the world´s stock markets
The EU contributes .... of world production.
5%
10%
15%
20%
25%
Some EU countries, such as ..... are among the most advanced economies in the world.
Germany
Italy
France
Spain
Portugal
It is the integration of various EU member countries into a common market that uses a single currency, the euro.
MEU
MUE
EMU
UME
The EU has established the following objectives:
Carry out a European financial policy
Invest up to 30% of its GDP in research and development
Combat unemployment and achieve a minimum employment rate of 75%
Promote energy efficiency and the use of renewable energies
Reduce the number of young people leaving school early
