Which of the following is the best definition of a circular flow of income diagram?

A model illustrating the flow of income in a 5 sector economy.

What is a capital resource?

Tools & Machinery that are used to benefit the business

What is a labour resource?

A person that provides skills and knowledge to the business

Comparative Advantage -

The ability to produce products cheaper than others.

A Disadvantage of a Sole Trader is...?

If your ill you do not get paid

cost of choosing one opportunity or investment over another

'Relative scarcity' means:

Resources are scarce (limited) compared to needs and wants

In the circular flow of income, an injection is...

Money that enters firms from a sector other than households

What is the Barter System?

A system of exchange that allows consumers to exchange goods and services

What is a Partnership defined as?

a business owned by two or more people

Primary industries....

Extract raw materials from natural resources

A Capital resource is...

Money, tools, and equipment purchased to make products.

The quartenary sector of the economy

is based on knowledge and skill

What are some of the advantages of being in a partnership?

Risk is shared between partners, more access to capital

What are the 5 sectors in the Circular Flow Model?

Households, Producers, Government, Financial, International

What is opportunity cost?

The next best good or service forgone for the choice the consumer made

What are quinary sector jobs?

Highest levels of decision making

The circular flow of income is a model

of the flows of resources, goods & services and income

Factors Of Production ?

Land, Labor Capitol and Enterprise

What is a traditional economy

Meeting the needs of the people by customs and traditions.

In the circular flow of income, a leakage is...

Money that leaves households but does not go to firms

The four main types of primary industries are:

Forestry, Mining, Farming, Fishing

Examples of tertiary sector activities include...

transport, communications, health care and education

Subsistence economies where non-monetary.

True because they did not use money.

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Year 9 Economics

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Questions 53

Answers

1
Which of the following is the best definition of a circular flow of income diagram?
A set of policies used by a government to regulate production
A model illustrating the flow of income in a 5 sector economy.
A mechanism to decide what to make, how to make it, and who gets it
A graphical model to understand how economies work
2
What are the Advantages of a partnership?
Two or more may raise more capital than a sole trader
All the above
Partners can share the work load
Partners can contribute different skills
3
What is a capital resource?
Offshoring goods
Raw and natural substances
Engaging in a sole trader business
Tools & Machinery that are used to benefit the business
4
Relative Scarcity is when we have unlimted wants constrained by limited resources.
True
False
5
What is a labour resource?
An increase in supply
A person that provides skills and knowledge to the business
Government intervention
A person that invests in the business
6
Some advantages of a private limited company include:
When profit is made, shareholders are rewarded with dividend
Shares can be sold to raise cash
Shareholders have limited liability
All answers are correct
7
Secondary Industries include:
Construction and Manufacturing
Scientists and High-Tech Industries
Fishing and Mining
Forestry and Farming
8
Which of the following jobs would be classified as a quinary sector job?
Accountant
Factory worker
Farmer
Senator
9
Definition of needs VS wants in economics
Both are the right definition
A need is something absolutely necessary to survive.
A want is not needed but is wanted
10
Comparative Advantage -
Occurs when one party has goods/services that the other desires.
The ability to produce products cheaper than others.
Set of reforms that reduce government regulations on imports, exports, etc
Groups of countries or groups that agree to a common set of trade rules.
11
Land is a factor of production
False
True
12
Which of these industries are in the Secondary Sector
Food processing
Surgery
FISHING
Agriculture
13
A Disadvantage of a Sole Trader is...?
You get to keep all of the profits
You can not employ anyone else
You can not beat your competitors
If your ill you do not get paid
14
A partnership has all of the following advantages except ___.
ease of start-up
unlimited liability
better access to money to fund the partnership
combined skills and knowledge
15
opportunity cost
cost of choosing one opportunity or investment over another
cost of operating a business
cost of selling a business to begin another
earning the best profit possible
16
Our country has which type of economy?
Capitalist
Socialist
Mixed
Communist
17
'Relative scarcity' means:
Resources are scarce (limited) compared to needs and wants
Needs and wants are scarce (limited) compared to resources
Some people only have a few relatives
When food is scarce (limited) people will be hungry
18
A company has unlimited liability
False
True
19
In the circular flow of income, an injection is...
Money that enters households from a sector other than firms
Money that enters households from firms
Money that enters firms from a sector other than households
Money that enters firms from households
20
What is the Barter System?
A system of exchange that allows consumers to exchange goods and services
A system that allows consumers to produce output and increase value
A system where money is exchanged
A system where one persons decides who gets what
21
sole trader firms are
all the above
can employ workers
easy to set up
have one owner
22
What is a Partnership defined as?
a business owned by a group of people and authorized by the state in which
when each partner is personally liable for all the debts of the business
top executives who are hired to manage the business
a business owned by two or more people
23
Which of these countries is a developing country?
Wales
Nigeria
Canada
USA
24
When the circular flow of income is contracting...
Injections > Leakages
Leakages< Injections
Leakages = Injections
Leakages> Injections
25
Primary industries....
Make things from Raw materials
Provides a service to people
Extract raw materials from natural resources
Involves research based services and advancing technology
26
Disadvantages of a Sole Trader?
personal service
private data
unlimited liability
27
When the circular flow of income is EXPANDING...
Leakages>Injections
Injections = Leakages
Injections < Leakages
Injections>Leakages
28
All are economic systems except ........
Mixed Economy
Banking System
Command Economy
Free Market Economy
29
An economic system that combines elements of all the other basic systems.
Mixed
Market
Traditional
Command
30
Which of the following is a characteristic of a developing economy?
Low debt rate
low standard of living
High literacy rate
High standard of living
31
A Capital resource is...
People that make the product.
Money, tools, and equipment purchased to make products.
Products that is made from the earth, sun, wind, etc.
32
A new car is said to be a need
True
False
33
The quartenary sector of the economy
is a made-up word
is based on knowledge and skill
includes agriculture
is the manufacturing sector
34
What are some of the advantages of being in a partnership?
You can make great friendships!
Risk is shared between partners, more access to capital
Partners can share skills which can ensure success
35
What are the 5 sectors in the Circular Flow Model?
Red, Yellow, Blue, Green, Orange
Households, Producers, Government, Financial, International
Consumers, Spenders, Workers, Business people, Students
Land, Labour, Capital, Entrepreneurship, Taxes
36
Definition of Tertiary Sector
Transport raw materials into manufactured products
Give a service
obtain resources from nature
37
What is opportunity cost?
The opportunity that cost the consumer
The next best good or service forgone for the choice the consumer made
The opportunity to make a choice that is not costly
The cost of not doing a good job
38
What are quinary sector jobs?
Highest levels of decision making
Computing jobs
Lowest levels of decision making
Biotechnology jobs
39
The circular flow of income is a model
of a circle
of how consumers save and spend
of the flows of resources, goods & services and income
of how households and firms are interdependednt
40
Primary Industries do not include -
Manufacturing
Mining
Animal Husbandry
Agriculture
41
Factors Of Production ?
Lans, Labor, Capitol
Kentucky, Fried, Chicken
Land, Labor Capitol and Enterprise
Land, Laber, Capitol
42
An advantage of a sole trader is....
Takes 4 weeks holiday
Allows for specialisation
Has limited liability
Makes all decisions
43
What is a traditional economy
Meeting the needs of the people by customs and traditions.
Stable government
Unstable government
Individuals determine demand, supply, price. It is a free enterprise system
44
All of the following are Primary Industries except......
Publishing
Forestry
Mining
Fishing
45
In the circular flow of income, a leakage is...
Money that leaves households but does not go to firms
Money that leaves firms but does not go to households
Money that households pay to firms
Money that firms pay to households
46
Define a Sole Trader?
A business run by 2-20 people
a shop
A business owned by one person
47
True or False---Teacher part of the quartenary sector?
false
true
48
The four main types of primary industries are:
Education, Science, Information and Technology
Forestry, Mining, Farming, Fishing
Factories, Construction, Food and Beverage
Entertainment, Stores, Services, Banks
49
Examples of tertiary sector activities include...
fishing and mining
livestock and crops
forestry and agriculture
transport, communications, health care and education
50
He is considered the "Father" of modern market system economies.
Karl Marx
John Smith
Adam Smith
Tom Marx
51
Subsistence economies where non-monetary.
Neither true nor false.
False because they did not use money.
True because they used money.
True because they did not use money.
52
What is a market economy?
Economic activity is result of ritual, habit, or custom.
Consumers and producers decide quantity and price of goods.
Producing & investing are determined by government.
Combining private & public enterprise.
53
What are the four factors of production?
Land, labor, capital and entrepreneurship
Machines, technology, minerals, and energy resources
Skilled workers, low skilled workers, knowledge workers, and service sector
Technology, physical capital, financial capital, and high skilled workers

Year 9 Economics Flashcards | StudBud