commerce yr 10 assessmnet quiz

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Questions and Answers

In the five-sector circular flow model, which sector encompasses entities that facilitate borrowing and lending of money?

  • Financial Institutions (correct)
  • Businesses (Firms)
  • Individuals (Households)
  • Government

Which of the following best describes the role of the 'Individuals' sector in the five-sector circular flow model?

  • Regulating financial market activities.
  • Producing goods and services for consumption.
  • Facilitating international trade agreements.
  • Providing labor and consuming goods and services. (correct)

What role does the 'Government' sector play within the five-sector circular flow model?

  • Primarily involved in exporting goods and services.
  • Collecting taxes and providing public services. (correct)
  • Managing the production of goods and services.
  • Facilitating savings and investments.

A significant decrease in consumer spending would most immediately impact which sector within the five-sector circular flow model?

<p>Businesses (Firms) (B)</p> Signup and view all the answers

How does the 'International Trade' sector primarily interact with the domestic economy in the five-sector circular flow model?

<p>Through imports and exports of goods and services. (D)</p> Signup and view all the answers

During the expansion phase of the business cycle, what is most likely to occur?

<p>Increased employment and higher levels of investment. (B)</p> Signup and view all the answers

Which economic indicator would most likely decrease during a recession?

<p>Gross Domestic Product (GDP). (D)</p> Signup and view all the answers

How does increased government spending typically influence the business cycle?

<p>It may stimulate economic activity, particularly during a recession. (C)</p> Signup and view all the answers

Which phase of the business cycle is characterized by high unemployment and reduced business investment?

<p>Contraction (D)</p> Signup and view all the answers

What is the likely effect of a sudden increase in interest rates on the business cycle?

<p>It reduces borrowing and may slow down economic activity. (A)</p> Signup and view all the answers

Which of the following transactions would most likely occur in a retail market?

<p>A consumer purchasing groceries. (B)</p> Signup and view all the answers

In which type of market are stocks and bonds primarily traded?

<p>Financial Markets (C)</p> Signup and view all the answers

The interaction between employers and potential employees primarily occurs in which type of market?

<p>Labor Markets (D)</p> Signup and view all the answers

What is the main function of the stock market?

<p>To facilitate companies in raising capital by selling shares. (A)</p> Signup and view all the answers

How might a surge in housing prices in the real estate market affect the financial market?

<p>By increasing the value of mortgage-backed securities. (B)</p> Signup and view all the answers

A shortage of skilled workers in the labor market is most likely to lead to which outcome?

<p>Increased wages and improved benefits. (A)</p> Signup and view all the answers

How does a decrease in interest rates, set by the central bank, most likely affect the stock market?

<p>It usually boosts stock prices as borrowing becomes cheaper for companies. (D)</p> Signup and view all the answers

If the government imposes new regulations that increase the cost of production for businesses, how might this affect retail markets?

<p>By potentially increasing prices due to higher production costs. (A)</p> Signup and view all the answers

How might a global pandemic, initially affecting international trade, eventually impact the labor market within a country?

<p>By potentially causing job losses due to decreased economic activity. (A)</p> Signup and view all the answers

Flashcards

Circular Flow Model

A model showing how money and resources flow between sectors of the economy.

Individuals (Households)

Households that provide resources like labor and consume goods and services.

Businesses (Firms)

Entities that produce goods and services, using resources from households.

Financial Institutions

Organizations that facilitate borrowing and lending of money.

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Government

The sector that collects taxes and provides public goods and services.

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International Trade

Represents the exchange of goods, services, and financial assets with other countries.

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Business Cycle

Alternating periods of economic expansion and contraction.

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Market

A place where buyers and sellers interact to exchange goods or services.

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Retail Markets

Markets where goods and services are sold directly to consumers.

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Financial Markets

Markets where financial assets like stocks and bonds are traded.

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Labor Markets

Markets where employers and employees interact to determine wages and employment.

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Stock Markets

Markets where shares of publicly listed companies are bought and sold.

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Market Interdependence

The concept that events in one market can affect other markets.

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Study Notes

The provided text contains the same information as the existing notes. No updates are necessary.

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