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F3 Econ Supply and Demand Impacts 2020 Flashcards | StudBud
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F3 Econ Supply and Demand Impacts 2020
F3 Econ Supply and Demand Impacts 2020
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Answers
1
For tea, if the wages of tea pickers increase, which of the following will happen?
Decrease in supply
Increase in supply
Contraction in quantity supplied
Extension in quantity supplied
2
For tea, if the price of tea increases, which of the following will happen ?
Increase in supply
Extension in quantity supplied
Decrease in supply
Contraction in quantity supplied
3
This is the result of changes in non-price factors related to firms in an industry
shift in the supply curve
movement
contraction
firms go out of business
4
There is an increase in the number of babies born. How is the demand for nappies affected?
Extension in quantity demanded
Increase in demand
Decrease in demand
Contraction in quantity demanded
5
In the orange market, the price of oranges increases. Which of the following will happen?
Contraction in quantity demanded
Decrease in demand
Increase in demand
Extension in quantity demanded
6
For tea supply, if the Government increases a subsidy on tea, which of the following will happen?
Increase in supply
Extension in quantity supplied
Decrease in supply
Contraction in quantity supplied
7
There is a more efficient machinery developed to process tea leaves, which of the following will happen?
Increase in supply of tea
Extension in quantity supplied of tea
Decrease in supply of tea
Contraction in quantity supplied of tea
8
Orange juice becomes more popular, which of the following will happen to demand for oranges?
Decrease in demand
Increase in demand
Extension in quantity demanded
Contraction in quantity demanded
9
The price of jeans decreases, which of the following will happen to the demand for jeans ?
Contraction in quantity demanded
Increase in demand
Decrease in demand
Extension in quantity demanded
10
There is an increase in the number of growers harvesting tea, which of the following will happen to tea supply?
Decrease in supply
Extension in quantity supplied
Contraction in quantity supplied
Increase in supply
11
A change in subsidies or indirect taxes are ...?
"non-price" factors
unlikely
"price" factors
not relevant to the supply curve
12
The quantity of a product that a producer is willing and able to supply at a given price
Contraction
Supply
Demand
Price
13
Conditions of supply...
are unchangeable
are "non price" factors which shift the supply curve
related to movements up and down the supply curve
are "price" factors which cause a contraction or extension
14
The difference between a company’s revenue and its costs. The usual aim of a business
Profits
Interest payments
Market Share
Sales income
15
How does a decrease in income tax affect the demand for holidays?
Increase in demand
Contraction in quantity demanded
Decrease in demand
Extension in quantity demanded
16
My understanding of "demand and supply" is
confident
very confident
starting to be confident
still not sure
17
This diagram shows
a reduction in demand
An increase in quantity supplied
A decrease in price
an increase in supply at all price points
18
If employees demand higher wages why does this shift a supply curve left
because it now costs less to supply the good at any given price
because employees have more disposable income
it doesn't - it should shift it RIGHT
because it now costs more to supply the good at any given price
19
Goods which follow the usual rules of D and S (e.g. as price goes up, quantity demanded reduces)
Services
Luxury Goods
Normal Goods
Poor Quality Goods
20
A good or service that consumers willingly purchase instead of another similar one
Alternative
Opportunity cost
Complementary good
Substitute
21
The $ value placed on a purchased good or service. Changing it will affect the quantity demanded or supplied
Contraction
Opportunity cost
Cost
Price