Economic Test S1 T2

we are lwk gonna fail but that ok

Use examples to distinguish goods and services

Goods are products that can be touched or owned and is something that someone makes to sell to others, like a car or clothing. Services are activities performed for others and is a product that someone else does for you, such as haircuts or repairs.

Describe land resources and give an example (relates to KFC)

Land resources are all natural resources that are found on the planet that can be used to make goods or services like fresh water, crops, wood, minerals and land

Describe labour resources and give an example (relates to KFC)

Labour resources are the physical effort put in by people to make goods or services like a mechanic, painter, or a barista

What are the four factors of production

land, labour, capital and entrepreneurship

Describe capital resources and give one example (relates to KFC)

Capital resources are any human-created resource that helps to make something (either objects or tools), like a coffee machine, robot or an oven

Describe entrepreneurship and give an example (relates to KFC)

Entrepreneurship is the process of starting and managing a new business to make a profit and they have control over all other factors of production. An example of entrepreneurship is starting a food truck business.

Define Gross Domestic Products

GDP is the market value of all finished goods and services that is produced in a country over a year

What is GDP per capita, and what does it measure?

GDP per capita is dividing a country’s GDP by its population to calculate the average economic output per person

Does a higher GDP per capita mean that evertone is happier

No, you wont be happy

What’s an injection?

Money that is added to the circular flow that incereases GDP

What are leakages

Leakages are money that has been taken away from the circlular flow, that decreases money

Whta is the difference between Gross Domestic Product (GDP) and GDP per capita!!!!!!!!

GDP measures the overall size and total market sales (goods and services) that a country makes in a year, while GDP per capita measures the GDP divided by the country’s population to calculate the average cost of what a citizen is buying.

Deacribe what the Consumer Price Index is.

Consumer Price Index is a measure of the trackable change in the price of a “basket” of daily goods that people usually buy over time. This measures inflation over time, and the basket includes things like food, housing, transportation, clothing and medical care

What is inflation?

Inflation is when the general price of goods and services increases across a large area

what are the impacts of high inflation? (combined with unenployment)

• living standards fall

• People can’t afford many goods and services

• Price pressure causes mental health issues

• homelessness

• malnutrition (extreme)

• Businesses fire people to lower costs

What is unemployment?

Unemployment is when a person over the age of 15 is willing and able to work, but is unable to find a job.

What are the impacts of high unemployment rates (combined with inflation)

• loss of income

• lowering living standards

• mental distress

• increased crime rates

• increased government payoffs (government giving money to poor people)

What are insensitivities and give an example

Incentives are positive outcomes that are given to encourage wanted behaviour, like commendations, 10c for recycling bottles and tax cuts for businesses that are recycling

What are disincentives and give an example

Disincentives are negative outcomes given to deter unwanted behaviour, like detentions, increased taxes on stores selling cigarettes

How could you use incentives to stop people smoking? (only 1)

Incentives can be used to reduce smoking by rewarding people for quitting or not starting. For example, governments, schools, or workplaces could offer cash rewards, discounts, prizes, or health insurance benefits to people who stay smoke-free. These incentives encourage healthier choices by providing a positive benefit for not smoking.

How could you use disincentives to stop people from smoking (only 1)

Disincentives can be used to stop people from smoking by making smoking less attractive or more costly. For example, governments can increase taxes on cigarettes, ban smoking in public places, require graphic health warnings on packaging, and enforce fines for selling tobacco to minors. These measures discourage smoking by increasing the financial, social, and health-related costs of the behaviour.

you NEED to know the flows in a 5-sector flow chart

NO :(