stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Duplicate of Economics Definitions Flashcards | StudBud
Explore
/
Duplicate of Economics Definitions
Duplicate of Economics Definitions
27 terms
·
StudBud Administration
·
3 plays
Testing the fundamental basics of Economics
Flashcards
27 cards
F
Practice quiz
P
Host live
L
Questions
27
Answers
1
A perfectly elastic demand curve would look...
Horizontal
Vertical
2
If a decision results in more social costs than social benefits, the decision is considered...
Uneconomic
Not beneficial to society
Unprofitable
Expensive
3
What does PED measure?
The responsiveness of price to changes in demand
The responsiveness of demand to changes in price
How price changes with demand
How firms respond to changes in price
4
Define subsidy
Income governments receive from taxation
A payment to producers to lower cost of production
Discounts to consumers
Transfer payments
5
What best describes 'land'?
Wood, trees and water
Anything man-made
Outputs
Any natural resource used in the production process
6
Which of the following is NOT a factor affecting the quantity demanded of a good/service?
Changes in the productivity of technology
Changes in income of an individual
The amount a good is advertised
Changes in the size of a population
7
Which of the following are non-price factors affecting the supply of a good/service?
Tax, natural disasters, profitability
Changes in population, raw material prices, weather
Advertising, raw material prices, tax
Cost of production, income levels, advertising
8
Which of the following factors does NOT affect the PED of a good/service?
The proportion of income spent on a good
Number of substitutes
The availability of compliment goods
The amount of time consumers have to make a decision to buy
9
How would an increase in the price of iPhones be illustrated using a diagram?
A shift in the supply curve to the right
A shift in the demand curve to the left
A shift in the demand curve to the right
A movement along the demand curve
10
Imagine PED = 7.5. This suggests a good is....
Slightly price elastic
Unit elastic
Highly price inelastic
Highly price elastic
11
Which Economic diagram is used to demonstrate the concept of opportunity cost?
Aggregate demand curve
Demand curve
Production possibility curve
Supply curve
12
Profit =
Selling price multiplied by amount sold
Revenue minus fixed costs
Total costs minus revenue
Revenue minus total costs
13
Which of the following is NOT a function of a trade union?
Helping workers apply for jobs
Negotiating better Non-wage benefits
Improving working conditions
Increasing holiday entitlement
14
Which statement describes the law of supply?
As the price of a good rises, the quantity demanded falls
As the price of a good falls, the quantity supplied rises
As the price of a good falls, the quantity supplied falls
As the price of a good rises, the quantity supplied falls
15
Productivity measures ...
The time it takes to produce a product
The amount a firm sells in a year
The amount produced from a given amount of input and time
The amount workers produce
16
If a worker has high occupational mobility, this means that...
The worker can work in many countries
The worker is able to work between different occupations
The worker works undesirable hours
The worker gets paid high wages
17
What distinguishes a public good from a merit good?
Public goods are highly scarce
Merit goods are provided by both public and private sector
Public goods always benefit from economies of scale
Merit goods are usually free to consume
18
Which of the following is another way of saying a 'market economy'?
Private economy
Mixed economy
Planned economy
Free market economy
19
Which statement best describes the economic problem?
Limited wants
Scarcity
Unlimited resources
High supply
20
How does a market economy differ from a mixed economy?
Most economies in the world are market economies
A mixed economy has a primary incentive to make profit
A planned economy focuses on necessities rather than wants
A market economy is dominated by the public sector
21
How can governments correct market failure?
Lower subsidies
Lower taxes
Government policy
Less regulation
22
A perfectly competitive market benefits from...
Having perfect knowledge of the market
Limiting supply of a good
Generating abnormal profits
Being a price-maker
23
What best describes 'demand'?
What prices consumers charge for goods and services
How responsive demand is to changes in price
Amount consumers are willing and able to buy at diff prices
How much consumers are willing to buy
24
How is labour productivity measured?
Total output divided by number of employees
Time produced divided by output
Total revenue divided by number of employees
Number of employees divided by total output
25
Which of the following is NOT a key question about resource allocation?
What to produce?
How many to produce?
For whom to produce for?
How to produce?
26
What are 'free goods'?
Resources that are not scarce
Goods that not use child labour
A lack of market failure
Resources that do not cost any money
27
Revenue an oil company earns rom the sale of oil and petroleum is an example of...
An external cost
A social cost
A private benefit
A positive externality
