ECONOMICS WORKSHEET - CORRECT ANSWERS

1. Why does the price of petrol fluctuate so frequently?

This is the question that so many students ask themselves every time they pass by a pump or
listen to the news. Gas prices fluctuate for many reasons. The economy, the location of the
gas station, events in the world and the time of year are just some reasons. So this question
could have many potential answers.

2. Why do sports players and television stars make more than doctors and politicians?
A classic question of entertainment versus practicality, students will find this question is
both infuriating and intriguing because of how much entertainment is valued above
medicine or public leadership. It can also prompt further discussion on the future of the
country, should the entertainment business become even more predominant over the more
practical and useful services. Keep in mind that this particular question might inspire angry
students.

3. How is inflation affected by foreign trade?

Because the importing of goods from other nations affects the economy, this question can
generate as many opinions as facts. Foreign trade might cause prices to go up or down,
depending on the situation, so answers will vary greatly from student to student. This
question could also lead to discussion on trade practices between certain countries and the
business decisions behind trading with foreign countries.

4. How does an increase in the minimum wage affect the economy?

Increasing the minimum wage arguably can affect the price of goods and services, but it can
also increase consumer spending. Students who answer this question will be forced to look
at the pros and cons of a minimum wage increase and how it affects the economy. However,
many students who earn minimum wage might be torn between wanting more money and
discovering how it causes prices to rise.

5. Watch a recent news clip where the President delivers the national budget speech, in
your own research explain what the minimum wage is, and what it seeks to address?
A minimum wage is the lowest remuneration that employers can legally pay their employees.
The purpose of minimum wages is to protect workers against unduly low pay, and to
provide a minimum acceptable standard of living for low-paid workers and eventually
alleviate poverty.

6. How does an increase in the minimum wage affect the economy?

Raising the minimum wage has positive impacts, such as bringing people out of poverty and
increasing income for individuals and families; however, increasing the minimum wage can
also lead to increased unemployment, depending on the wage increase, because employers
would seek automation as opposed to hiring workers.

7. What is a market system/market economy?

A market economy is an economic system in which economic decisions and the pricing of
goods and services are guided by the interactions of a country's individual citizens and
businesses. There may be some government intervention or central planning, but usually
this term refers to an economy that is more market oriented in general.

A market system is the network of buyers, sellers and other actors that come together to
trade in a given product or service.

A market economy (ME) refers to a form of economic system where businesses and
consumers drive the economy with minimal government intervention. In other words, the
laws of demand and supply determine the price and quantity of goods produced in an
economy. It encourages entrepreneurship and results in greater production efficiency and
consumer satisfaction.

8. . What is a monopoly? A competitve market?

Monopoly - Is is a market system where there is no competition between sellers, and only
one seller sells the product to the public.

Competitive market - A competitive market (also known as Perfect Competition) is a

structure in which no single consumer or producer has the power to influence the market.
Its response to supply and demand fluctuates with the supply curve, a representation of a
product's quantity.
9. What is the role of government in the economy?

Governments are meant to guide and direct the pace of economic activity in the country. It
also needs to ensure stable growth, high employment, and price stability. Additionally,
governments need to adjust tax rates and spending so that economic growth can either
accelerate or slow down.

10. How does Africa depend on other countries?

Africa depends on other countries to trade (importing & exporting), to provide monetary
assistance (IMF),

11. How do people in other countries use their economic resources?

12. How does unemployment affect the economy of the country?

Prolonged unemployment may lead to an erosion of skills, basically robbing the economy of
otherwise useful talents. At the same time, the experience of unemployment (either direct
or indirect) may alter how workers plan for their futures—prolonged unemployment can
lead to greater skepticism and pessimism, the absence of income created by unemployment
can force families to deny educational opportunities to their children and deprive the
economy of those future skills.

Last but not least, there are other costs to the individual. Studies have shown that prolonged
unemployment harms workers' mental health and can worsen physical health, and shorten
lifespans
A high unemployment rate affects the economy in many ways. Unemployed people tend to
spend less, may accrue more debt, and unemployment may lead to higher payments from
state and federal governments for things like food stamps.

13. Describe microeconomics.

It focuses on individual people and individual businesses. For individuals, it explains how
they behave when faced with decisions about where to spend their money or how to invest
their savings. For businesses, it explains how profit-maximizing firms behave individually, as
well as when competing against each other in markets
14. Describe macroeconomics.
Looks at the economy as an organic whole, concentrating on factors such as interest rates,
inflation, and unemployment. It also encompasses the study of economic growth and the
methods governments use to try to moderate the harm caused by recessions.

15. What is GDP?

16.
1. United States 14. Spain

2. China 15. Mexico

3. Japan 16. Indonesia

4. Germany 17. Netherlands

5. The United Kingdom 18. Saudi Arabia

6. India 19. Turkey

7. France 20. Switzerland

8. Italy 21. Poland

9. Canada 22. Sweden

10. South Korea 23. Belgium

11. Russia 24. Thailand

12. Brazil 25. Ireland

13. Australia