Introduction to Economics Year 8

Question 1

In the circular flow model, the part labelled G represents?

Accepted Answer

Financial Sector

Question 2

Consumers are people or groups that purchase and use final goods and services.

Accepted Answer

True

Question 3

In the circular flow model, the part labelled K represents?

Accepted Answer

Government Sector

Question 4

Which of the following is not one of the three basic economic questions?

Accepted Answer

How to produce?

Question 5

What is not one of the three ways the government intervenes in the economy?

Accepted Answer

Wars

Question 6

In the circular flow model, the part labelled A represents?

Accepted Answer

Resources

Question 7

What is occurring at $2?

Accepted Answer

Shortage

Question 8

In the circular flow model, the part labelled I represents?

Accepted Answer

Taxation

Question 9

In a market economy, who answers the question how to produce?

Accepted Answer

Producers

Question 10

In a market economy, who do we want to produce for?

Accepted Answer

Consumers

Question 11

The aim of producers is to maximise profit.

Accepted Answer

True

Question 12

What is occurring at $3?

Accepted Answer

Equilibrium

Question 13

In a market economy, who answers the question how much to produce?

Accepted Answer

Consumers

Question 14

What should D be labelled as in the diagram?

Accepted Answer

Price

Question 15

In the circular flow model, the part labelled J represents?

Accepted Answer

Investment

Question 16

In the circular flow model, the part labelled B represents?

Accepted Answer

Income

Question 17

Producers are people or businesses that make goods and services.

Accepted Answer

True

Question 18

In the circular flow model, the part labelled F represents?

Accepted Answer

Consumption Expenditure

Question 19

In a market economy, who answers the question what to produce?

Accepted Answer

Consumers

Question 20

The law of demand states that

Accepted Answer

As prices rise demand falls and as prices fall demand rises.

Question 21

In the circular flow model, the part labelled L represents?

Accepted Answer

Firms

Question 22

Which of the following is not a measure of economic performance?

Accepted Answer

Demographics of religion

Question 23

The aim of consumers is to maximise profit.

Accepted Answer

False

Question 24

What should C be labelled as in the diagram?

Accepted Answer

Quantity

Question 25

Which of the following is not a factor of production?

Accepted Answer

Materials

Question 26

What should A be labelled as in the diagram?

Accepted Answer

Supply Curve

Question 27

In the circular flow model, the part labelled E represents?

Accepted Answer

Goods and Services

Question 28

What should B be labelled as in the diagram?

Accepted Answer

Demand Curve

Question 29

In the circular flow model, the part labelled C represents?

Accepted Answer

Households

Question 30

In the circular flow model, the part labelled D represents?

Accepted Answer

Government Expenditure

Question 31

What is occurring at $4?

Accepted Answer

Surplus

Question 32

In the circular flow model, the part labelled H represents?

Accepted Answer

Savings

Question 33

The law of supply states that

Accepted Answer

As prices rise supply rises and as prices fall supply falls.

Question 34

What is the economic problem?

Accepted Answer

We have limited resources to satisfy our unlimited needs and wants.

Question 35

A place where the organised exchange of goods and services for money occurs between buyers and sellers is called?

Accepted Answer

A market

Introduction to Economics Year 8

Questions 35

Introduction to Economics Year 8

Questions 35