Y10 Economics MOCKS

What are needs and examples of some?

Goods or services that are required for survival. Food, water, shelter.

What are wants and examples of some?

Goods or services people would like to have but are not necessary for survival. Gaming consoles, designer clothes, expensive cars

What are consumers and what do they do?

Individuals or households that buy and directly use goods and services and create demand in markets

What are producers and what do they do?

Businesses or individuals that make and sell goods and services and create supply

What is the government and some of their roles

A sector that controls laws, taxation, and public services in the economy. They will provide services, collect taxes, create laws and reduce market failure

What is the C in CELL? Name an example as well

Capital → Man-made equipment and machinery used to produce goods and services. Machines, factories, tools

What is the E in CELL?

Enterprise → The risk taking and resource organisation that goes into making a business.

What is the L in CELL? (Lab) Name an example as well

Labour → The human effort into production. Teachers, builders, factory workers

What is the L in CELL? (Lan) Name an example as well

Land → The natural resources and the land itself used to produce goods and services. Forests, farmland, oil

What is scarcity?

The problem of having limited resources but unlimited wants which forces individuals, businesses, and governments to make choices

What is opportunity cost?

The next best alternative given up when making a choice. Every economic choice has an opportunity cost

What is resource allocation?

Deciding how limited resources are distributed in an economy. Markets allocate resources through supply and demand

What is the primary sector and an example?

Extraction of raw materials and natural resources. Farming, fishing, mining.

What is the secondary sector and an example?

Processing raw materials into finished goods. Car manufacturing, building houses

What is the tertiary sector?

The service sector. Healthcare, retail, banking

What is specialisation and the advantages and disadvantages?

When workers, firms, or countries focus on producing one product or doing one task → Workers become more skilled, increased efficiency, improved productivity. Boredom, dependence on others

What is division of labour and the advantages and disadvantages?

Splitting production into smaller specialised tasks completed by different workers → Increased productivity, faster production, workers gain expertise. Repetitive tasks, workers lose flexibility