HASS Economics by Sarvesh UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Subsistence Economy - CORRECT ANSWER - A Style of economy where people are
much more self-sufficient in obtaining their needs and wants; through producing their own food
with simple technology or bartering with local members. Hence, there is no currency in these
economies.
Unplanned Economy - CORRECT ANSWER - A Style of economy where producers may
produce whatever they want and how much of it. There not a lot of government intervention.
Capitalism - CORRECT ANSWER - an economic and political system in which a
country's trade and industry are controlled by private owners for profit, rather than by the state.
Socialist Economy - CORRECT ANSWER - the state determines production, distribution,
and price decisions; resources are government owned.
strengths of an unplanned economy - CORRECT ANSWER - - Consumers have maximum
choice
- The market is responsive to consumer choices
- Competition results in better at the lowest prices and increased efficiency
- The price mechanism automatically sets the price
- The profit motive ensures that producers produce what consumers want
Weaknesses of an Unplanned Economy - CORRECT ANSWER - - Lack of planning leads
to wasted resources
- Only profitable items will be produced
- Ability to pay determines who gets what
- If you own no resources, you have no income
, - Socially undesirable consequences such as child labour may result
- One company can gain control of an entire market for a good and set higher prices
What is the role of the Government in Unplanned Economies? - CORRECT ANSWER --
Provides goods such as education, transportation, healthcare and roads.
- Prohibits the the production of harmful goods and services
- Sets minimum work conditions in term
Demand - CORRECT ANSWER - refers to the quantity of a particular good or service that
consumers are willing and able to pay at a particular price and point in time.
Law of Demand - CORRECT ANSWER - States that a negative relationship exists
between price and quantity demanded.
Supply - CORRECT ANSWER - refers to the quantity of a good or service that producers
are willing and able to manufacture at a particular price or point in time.
Law of Supply - CORRECT ANSWER - States that a positive relationship exists between
price and the quantity supplied.
Equilibrium - CORRECT ANSWER - exists in the market at a price where the quantity
demanded and quantity supplied equal one another.
Market Shortage - CORRECT ANSWER - exists when the price charged in the market is
below the equilibrium and as a result, the quantity demanded exceeds the quantity supplied.
Market Surplus - CORRECT ANSWER - exists when the price charged in the market is
above the equilibrium and as a result, the quantity supplied exceeds the quantity demanded.
ACTUAL Exam Questions and CORRECT
Answers
Subsistence Economy - CORRECT ANSWER - A Style of economy where people are
much more self-sufficient in obtaining their needs and wants; through producing their own food
with simple technology or bartering with local members. Hence, there is no currency in these
economies.
Unplanned Economy - CORRECT ANSWER - A Style of economy where producers may
produce whatever they want and how much of it. There not a lot of government intervention.
Capitalism - CORRECT ANSWER - an economic and political system in which a
country's trade and industry are controlled by private owners for profit, rather than by the state.
Socialist Economy - CORRECT ANSWER - the state determines production, distribution,
and price decisions; resources are government owned.
strengths of an unplanned economy - CORRECT ANSWER - - Consumers have maximum
choice
- The market is responsive to consumer choices
- Competition results in better at the lowest prices and increased efficiency
- The price mechanism automatically sets the price
- The profit motive ensures that producers produce what consumers want
Weaknesses of an Unplanned Economy - CORRECT ANSWER - - Lack of planning leads
to wasted resources
- Only profitable items will be produced
- Ability to pay determines who gets what
- If you own no resources, you have no income
, - Socially undesirable consequences such as child labour may result
- One company can gain control of an entire market for a good and set higher prices
What is the role of the Government in Unplanned Economies? - CORRECT ANSWER --
Provides goods such as education, transportation, healthcare and roads.
- Prohibits the the production of harmful goods and services
- Sets minimum work conditions in term
Demand - CORRECT ANSWER - refers to the quantity of a particular good or service that
consumers are willing and able to pay at a particular price and point in time.
Law of Demand - CORRECT ANSWER - States that a negative relationship exists
between price and quantity demanded.
Supply - CORRECT ANSWER - refers to the quantity of a good or service that producers
are willing and able to manufacture at a particular price or point in time.
Law of Supply - CORRECT ANSWER - States that a positive relationship exists between
price and the quantity supplied.
Equilibrium - CORRECT ANSWER - exists in the market at a price where the quantity
demanded and quantity supplied equal one another.
Market Shortage - CORRECT ANSWER - exists when the price charged in the market is
below the equilibrium and as a result, the quantity demanded exceeds the quantity supplied.
Market Surplus - CORRECT ANSWER - exists when the price charged in the market is
above the equilibrium and as a result, the quantity supplied exceeds the quantity demanded.
