Grade 9 EMS Theory Revision

Flashcards for Grade 9 EMS Theory Revision

What are three facts about each economic system, along with an example of a country using that system?

Communism-the gov owns everything(china) socialism-the gov owns the important stuff (Sweden) capitalism-everyone competes to make money and the gov owns little (South Africa)

Draw and label the economic cycle.

[Households]

↑ ↓

Labour Goods/services

↓ ↑

[Firms]

Explain the role of government, businesses, households, and the foreign sector in the economic cycle.

Government: Provides public goods and services, regulates the economy. Businesses: Produce goods and services, employ factors of production. Households: Provide labor, consume goods and services. Foreign sector: Engages in international trade.

What is the difference between export and import?

Export: Selling goods and services to other countries. Import: Buying goods and services from other countries.

Name the four factors of production and the remuneration for each.

Land: Rent; Labor: Wages; Capital: Interest; Entrepreneurship: Profit.

Name the three sectors of production and explain each one.

Primary sector: Extraction of raw materials. Secondary sector: Manufacturing of goods. Tertiary sector: Providing services.

Explain the law of demand.

As the price of a good or service increases, the quantity demanded decreases, and vice versa.

Explain the law of supply.

As the price of a good or service increases, the quantity supplied increases, and vice versa.

Name three other factors affecting demand.

Income, tastes and preferences, price of related goods (substitutes and complements).

What do you call the point where the supply and demand curves meet?

Equilibrium point.