OCR GCSE Economics Topic 2.1

What is a market?

A way of bringing together buyers and seller to buy and sell goods and services

What is the primary sector?

The direct use of natural resources, such as the extraction of basic materials and goods from land and sea

What is the secondary sector?

All activities in an economy that are concerned with either manufaction or construction, where raw materials are converted into manufactured goods, or when they have ndergone some process already, and then producing a good.

What is the tertiary sector?

All activities in an economy that involve the idea of a service.

What is the factor market?

Market in which the services of the factors of production are bought and sold

True or false: the demand for the factors is a derived demands

True

What is the product market?

Market in which final goods or services are offered to consumers, businesses and the public sector.

True or false: in a product market, households, other firms and the public sector are the buyers

True

True or false: in a factor market, households supply labour to firms in return for wages/salaries

True

What are the benefits of specialisation for producers?

1)higher output - specialist equipment. 2) higher productivity- workers more skilled 3) best factors of productions - quality.4)bigger market - more buyers for each producer. 5)economies of scale - larger output. 6)time saving - takes time to stop producing one product and start another

What are the costs of specialisation for producers?

1)dependency 2)workers may become bored and leave 3)failure of exchange if it's not possible to buy scarce resources or components 4)output increases - costs rise. resources may become shorter in supply or it takes more people to organise the workforce etc

What are the benefits of specialisation for workers?

1)do what they're good at - more money. 2)increased skill- more money. 3)increased job satisfaction bc of first two points,motivation. 4)more money - increased quality of life

What the costs of specialisation for workers?

1)boredom, demotivation. 2)deskilling for other jobs. 3)dependency (Deskilling)

What are the benefits of specialisation for regions?

1)efficient use of resources. 2)jobs for residents. 3) infastructure development for that industry - regional development

What are the costs of specialisation for regions?

1)risk of fall in demand - dependency. 2)resource exhaustion 3)loss of advantage - oter region may become better

What are the benefits of specialisation for countries?

1)economies of scale,efficiency,increase in output. 2)more jobs due to increase in output results in investment and job creation. 3)surplus - international trade. 4)improved choice, income output, infrastructure - better standard of living. 5) increase output, income, trade - greater income for government.

What are the costs of specialisation for countries?

1)destroys jobs in other industries - unemployment. 2)over-dependence. 3)over-exploitation of resources. 4) no.3 can lead to environmental damage