ECONOMICS

1.
Study the picture below and answer the questions which follow.
The Government ministers of Sandland are meeting to decide how to spend
£100 million.
GOVERNMENT OF SANDLAND
(
a
)
One Government minister said that “resources are scarce”.
Explain what is meant by the economic term “scarce”.

(
b
)
From the picture, identify
one
example of each of the following
decisions:
(i)
What to produce;
(ii)
How to produce it;
(iii)
Who to produce it for.
(
c
)
(i)
Identify which sector of the economy is shown in the picture.
Tick the correct box.
Public Sector
Private Sector
(ii)
Explain your answer to (
c
)(i)
(
d
)
The Government of Sandland picks the
first choice
and spends the
money on healthcare.
(i)
From the picture, identify the opportunity cost of spending the
money on healthcare.
(ii)
Explain your answer to (
d
)(i).

2.
Study the graph below and answer the questions which follow.
Stewitt’s Scottish Flags Ltd
Costs and Revenue for Flags
700
600
500
400
300
200
100
0
0
10
20
30
40
50
60
Output/sales
(Number of Flags)
Cost/revenue
(£)
Total
revenue
Total
costs
(
a
)
At an output level of
60
, identify:
(i)
Total Revenue:
£
(ii)
Total Cost:
£
(iii)
if Stewitt’s Scottish Flags Ltd makes a profit or a loss.
Tick the correct box.
Profit
Loss
(iv)
Explain your answer to (
a
)(iii).
(
b
)
From the graph, calculate the selling price of one flag.
Answer:
£
Show your working here.

Topic: Economic

Order Description

Description of assessment: You are require to prepare a 500 word report on a Qantas Airline, as a minimum, include:

1. a description of the industry; (200 words)
2. an examination of the factors that influence supply and demand for the product(s) or service(s),include showing 2 graphs how the industry would be affected. (300 words)

Sources (references)

It is expected that the market report sources a range of resources (e.g. the could include the text book for theory, newspapers, industry reports, the ABS and other sources)