Economics Revision Questions

1. Compare and contrast between Traditional Economy and Command

Economy.
Pros for traditional: Everyone knows what to produce. Pros for command:
Economy is
Cons for traditional: If anyone where to create something different they
would be punished. Cons for command: No freedom of market
2. List 3 advantages for Command Economy.
3. Is the income tax progressive, proportional, or regressive? Income tax is
progressive because the more money you make, the more tax you pay.
4. Explain how taxes can impact businesses and consumers? The more taxes
you’re likely to pay the less often you’re likely to purchase things.
5. How can taxes be effective?
6. Explain the three types of taxes.
7. What is a sin tax?
8. What are taxes?
9. Discuss the 5 Stages of Economic Development. Primitive equilibrium: it is
the stage where the country has no formal economic organization or
monetary system. The economic decisions are all based on cultures and
traditions and each gender and member of society is given traditional
roles, the market is not booming and there is an equilibrium between
supply and demand. Secondly, Transition: some areas of the country start
to develop using technology, yet the primitive ways of life still control the
economic system of the country. Third, take-off is the stage where all the
problems of primitive equilibrium have been resolved and the country
starts adopting new technologies and ways from the outside. Fourth, the
semi-development stage is characterized by the country’s national income
finally becoming higher than the population, this means that the country
can concentrate on infrastructure and basic industries, thus, the country
becomes a truly developing nation. Fifth, the high-development stage is
characterized by concentration on adopting and inventing new
technologies, while trying to provide freer public and health services for
free or little prices for the people. At this stage, the people have easy
access to food, water, and clothing.
10.
11.Explain the reasons why economics is considered important in helping
developing countries.
12.How is economic development in developing countries financed?
13.Discuss the pros and cons of Globalization.
14.Mention 3 examples of Globalization.
15.Discuss 3 functions of money 4 properties of money.
16.What are the different types of money?
17.State the formula for unemployment rate.