Economics and Business 1

Question 1

All economic decisions being made by the government is known as a...

Accepted Answer

Command Economy

Question 2

A person or a group who is the final user of goods and services produced within an economy.

Accepted Answer

Consumer

Question 3

The amount of a good or service that consumers are willing and able to purchase.

Accepted Answer

Demand

Question 4

high price = high supply, low price = low supply. This is known as the...

Accepted Answer

Law of supply

Question 5

Freedoms and legal entitlements are known as...

Accepted Answer

Rights

Question 6

The benefits and costs of a project or decision are determined and evaluated.

Accepted Answer

Cost Benefit analysis

Question 7

Used to produce goods and services that satisfy needs and wants.

Accepted Answer

Resources

Question 8

A person who sets out to build a successful business in a new field by taking risks.

Accepted Answer

Entrepreneur

Question 9

The amount of goods and services that are available.

Accepted Answer

Supply

Question 10

Markets with poor decisions and resources not being used in ways that improve living standards.

Accepted Answer

Market failure

Question 11

A market where traditions, customs and beliefs determine the production of goods and services.

Accepted Answer

Traditional market

Question 12

Low price = increased demand, High price = decreased demand. This is known as the...

Accepted Answer

Law of Demand

Question 13

Refers to the payments for goods and services from the household sector to businesses.

Accepted Answer

Consumption

Question 14

When the quantity demanded equals the quantity supplied at a particular price.

Accepted Answer

Equilibrium

Question 15

Production usually requires the combination of resources. The four economic resources are...

Accepted Answer

land, labour, capital and enterprise

Question 16

Measures taken by government to correct market failures

Accepted Answer

Government Intervention

Question 17

The organised exchange of goods, services or resources between buyers and sellers.

Accepted Answer

Market

Questions 17