Class exercise business:

1. There are three types of industry please name all three.

2. Mining is an example of .industry Road construction is an example of . industry Entertainment is an example of .. industry. 3. There are four factors of production please name them: 4. Each factor has a re ard. !lease match the re ard to the factor. Rent . "ages . !rofit . #nterest . $. The most important factor of production hich ma%es e&erything . '. (n entrepreneur is a someone ho tas%s a ris% to try to do something T)* +. The main pro,lem in economics is: 1. !eople do not %no hat they ant 2. !eople ha&e unlimited ants and needs 3. !eople ha&e limited resources 4. !eople ha&e unlimited ants and needs ,ut ha&e limited resources. -. The main aim of economics is: a. .atisfying all the people/s needs and ants ,. 0sing the limited resources in the ,est ay to satisfy people/s needs and ants c. To study people/s ,eha&ior d. To gi&e students a hard su,1ect to study 2. .carcity means something is hard to find3 in short supply. T)* 14. There are three %inds of economic systems please name them all. or% is

11. 5i&e an example of a country hich is no 12. The ,est example of an economy .

using or once used one of each type.

here e&erything is decided ,y the 5o&t is

13. ( good example here the mar%et chooses

hat is made is .

14. The in&isi,le hand theory ,y (dam .mith says: a6 5o&ernment/s must ,e &ery in&ol&ed in running the economy ,6 #t is 7allo een and someone is earing an in&isi,le glo&e3 so his hand is in&isi,le. c6 That mar%ets ill choose hat goods to ma%e3 ho they are made and ho they are made for. d6 That mar%ets ill or% ell in producing goods and ser&ices ithout go&ernment doing anything. e6 (dam .mith had too much free time so he came up ith this cra8y idea.

1$. ( mar%et is: a. ( place li%e 9arreffour here you can ,uy many %inds of things. ,. ( pace here you can sell many things li%e Tao :ao c. ( place here ,uyers can meet sellers for the purpose of doing ,usiness. d. (ll the ,uyers and sellers of a good)ser&ice 1'. #n a system controlled ,y 5o&t3 decides hat is made3 for ho and ho much is made. 1+. #n a mar%et system .. decides hat3 ho much and for ho products)ser&ices are made. 1-. ( pu,lic good is: a. ,. c. d. .omething good for e&eryone .omething hich can ,e used ,y e&eryone .omething hich can ,e used ,y e&eryone ,ut no one ould "hen people are good in pu,lic

ant to pay for it

12. ( merit good is: a. ( good for e&eryone ,. .omething hich ma%es the society ,etter c. .omething you can get for ,eing 7;< student d. The teacher is gi&ing me a headache. 24. 5i&e an example of a merit good . 21. 5i&e an example of a pu,lic good .