Study

Economic activity

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  • What is investment?
    Purchasing goods not for consumption but for further production.
  • What produces, distributes, and sells products to make a profit?
    Companies
  • What do we use money for?
    To purchase products and goods
  • What are the components of economic activity?
    Production, Exchange, Consumption, Investment
  • T or F: Consumption is the creation of products
    False
  • What is production?
    The creation of products
  • Who are consumers?
    People who buy a companies products
  • What are savings?
    Money that we don't spend but save for future needs
  • What is meant by exchange"
    The transfer of goods and services between producers and consumers, which may be followed by  either immediate or delayed consumption or by investment
  • What is consumption?
    The use and enjoyment of products
  • How does production create value and wealth?
    Through the manufacturing products, the cultivation of land or the provision of services like transport, healthcare and security
  • What do companies do?
    produce, distribute, and sell products for a profit
  • T or F: Production is the transfer of products
    False
  • Who are people who buy companies products?
    Consumers
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