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2.1 Demand Flashcards | StudBud
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2.1 Demand
2.1 Demand
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#introductiontoeconomics
Flashcards
22 cards
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Questions
22
Answers
1
Due to a scarcity of resources:
every society must undertake central planning
the government must decide how to allocate resources
some members of each society must live in poverty
ALL societies must choose among competing uses of resources
2
Microeconomic topics include the overall unemployment rate, and the rate of inflation in UK
True
False
3
Indicate below what is NOT a factor of production.
Land
Labour
A bank loan
Capital
4
Which of the following might be considered to be a characteristic of a planned economy?
Price is unimportant as a means of allocating resources
There is no incentive for people to work hard
All income is completely evenly distributed
Goods and services produced reflect consumer preferences
5
Business activity essentially involves transforming inputs into outputs.
False
True
6
The cost of one good measured in terms of what we must sacrifice is called the:
Opportunity cost
Real cost
Social cost
Average cost
7
Microeconomics is not concerned with the behavior of:
Industries
Firms
Consumers
Countries
8
The problem of scarcity will eventually disappear with the development of new technology.
False
True
9
The factors of production are labour, land, and money.
True
False
10
Opportunity cost is:
A cost that cannot be avoided
The cost incurred in the past
The benefit of buying an additional unit of a product
That which we forgo when we make a choice or a decision
11
Which of the following would not be classified as a factor of production?
Jim, a lecturer in the Harper Adams University
The wage Jim gets paid at the end of the month
The library of the University
All of the above are factors of production
12
In a free-market economy the allocation of resources is determined by:
Votes taken by consumers
A central planning authority
By consumer preferences
13
In a planned or command economy, all the Economic decisions are taken by the:
Government authorities
Consumers
Voters
Workers
14
Macroeconomics focuses on the behavior of economic agents such as a consumer, firm or industry
False
True
15
The concept of opportunity cost:
Is relevant only for a capitalist economy like the U.K.
increase in health spending means NO expansion in EDUCATION
suggests all our wants can be achieved
It would be irrelevant if we eliminated poverty
16
Economics is:
The study of the markets for stocks and bonds
Exclusively the study of business firms
Applicable only when scarcity is not a problem
The study of choice under conditions of scarcity
17
The problem of scarcity is directly relevant:
Only to those with low incomes
Only to developing countries
Only to developed countries
To all countries and all individuals
18
People and organizations have to make choices about how to allocate time and money because of:
Government rules and regulations
Religious values
Scarcity of time and money
Unlimited resources
19
Macroeconomics deals with:
The behaviour of the electronics industry
The behaviour of firms
Choices made by countries
The activities of individual units
20
In Economics the central problem is:
Production
Scarcity
Allocation
Consumption
21
In a free-market economy, all the economic decisions are taken by the:
Workers
Government
Market(consumers-producers)
Voters
22
Which of the following would be strictly a microeconomic topic?
an increase in the price of the Ford Mondeo
a general rise in interest rates
a drop in the nation's unemployment rate
a drop in inflation
