Video: Question Sheet Video Answer Key - King City SS Business

CIA 4U1 Basic Economic Concepts Mr. Raposo
9. Where can western economies trace their historical beginnings to?
Answer: Kings and Queens of Europe. Monarchs ran centrally
controlled economies. 1770’s saw the emergence of a new kind of
economy (the free market economy).
10. What kind of market system emerged in Russia and China during the
20 th century?
Answer: Communism (centrally planned and controlled).
11. Has this type of economic system been successful?
Answer: No, by the end of the 20 th century this type of system seems to
have failed.
12. What happened over time to labour as population increased?
Answer: Labour became specialized and a division of labour occurred.
13. What was the “corner stone” of the industrial revolution?
Answer: The production line and its use of machines to produce goods
and supply services.
14. What is needed to make division of labour work?
Answer: Money. A medium of exchange accepted by everyone.
15. Central Banks are responsible for making sure that there is enough
money in circulation. In the U.S. this is called The Federal Reserve.
In Canada, it’s the Bank of Canada.
16. The goal of the corporation is to produce goods and services to make
a profit.
17. An “arena” where goods and services can be exchange is called a
MARKET.