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Economics Microeconomics
What is joint demand?
Define Allocative Efficiency
Economics Microeconomics
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1
Define Allocative Efficiency
When the price of a good isnt equal to the amount consumers r happy to pay
When the price of a good is equal to the amount consumers rn't happy to pay
When the price of a good is equal to the amount consumers r happy to pay
2
What is joint demand?
A goods are in joint supply if they are complementary.
A goods are in joint demand if they are complementary.
Two goods are in joint supply if they are complementary.
Two goods are in joint demand if they are complementary.
3
What causes market failure?
When the exchange rate appreciates
When goods and services are allocated efficiently
When 5 or more businesses do not make profits
When goods and services are not allocated efficiently
4
If incomes rise then demand for normal goods
stays the same
rises
falls
reduces
5
What is a fiscal deficit ?
Government spends more money than it collects in taxes
Government spending on wasteful programs
Government collects more money in taxes than it spends
Government spending on transfer payments
6
Define Derived Demand
This is the demand as a consequence of the demand for another good.
This is the supply as a consequence of the supply for another good.
This is the supply as a consequence of the demand for another good.
7
What are inferior goods?
goods that no one wants to buy
Goods for which demand rises when income rises
goods that lack quality
Good for which the demand falls when income rises
8
When a Supply or Demand curve increase, the curve shifts to the
right
down
up
left
9
Capital goods are defined as:
The Benefits of Entrepreneurs
Produced goods used in the production process
The main drivers of productivity
The Money It Takes to Build a Business
10
Define Economic Growth
A decrease in an economy's productive potential
An increase in an economy's productive potential
11
Government failure is...
when government causes a misallocation of resource
when government intervention in a market causes an allocation of resource
when government intervention in a market causes a misallocation of resource
12
which is a market failure
allocative efficiency
asymmetric information
competition
private good
13
Allocative efficiency
Requires production efficiency and goods consumers want
No-one else needs to pick up the costs
Everyone wins
It is possible to make someone better off
14
Which way does the supply curve face?
Neither
Up and to the left
Both depending on product
Up and to the right
15
spot the market failure
monopoly power
wealth inequality
all of the above
inefficient allocation of resources
16
What is an exchange rate?
It's the price of a house in different countries
It's the price of the food in different countries
It's the price of clothes in different countries
It's the price of a nation’s currency in relation to another
17
What is the PPC?
pat per clip
production possibilities curve
production possibilities cave
18
What are the Factors of Production?
Capital, Land, Labour and Jobs
Goods and Services
Land, Labour, Capital and Enterprise
Work, Land, Labour and Inflation
19
Define Asymmetric Information
When buyers have more information than sellers in a market
When buyers have more information than sellers(or the opposite) in a market
When sellers have more information than buyers in a market
20
Marginal Cost
the cost of selling one or more good
the cost of producing one or more good
21
what may follow a recession
slump
slum
loss of blanchy
woodys dad
22
Define Consumption
The selling of goods or services
The purchase/use of goods or services
The selling of services
23
What does a Demand Curve Look Like?
Slope Down from Left to Right
Slope Down from right to left
Horizontal line
Slope Up from Left to Right
24
The graphs or curves for elastic supply are
different
from elastic demand.
True
False
25
What do economists assume about individuals in free markets?
They are irrational
They are all men
They are all women
They are rational
26
Define Consumer Surplus
When a seller pays more for a good than they were prepared to
When a consumer pay less for a good than they were prepared to
When a consumer pay more for a good than they were prepared to
When a seller pays less for a good than they were prepared to
27
What is debt?
The amount of money you owe to a person or business
The ability to borrow money
The amount of money you have in investments
The amount of money you have in your checking account.
28
Why would a supermarket offer inferior goods and normal goods ?
to fill up the shelves
to cope with changes in customer income
29
An increase in the demand for office space will lead to an increase in the demand for office furniture.
Is an example of composite demand
Is an example of derived demand
Is an example of joint demand
30
What is deflation?
Increase in prices and fall in the purchasing value of money
Reduction of the general level of prices in an economy
Sustained, long-term downturn in economic activity
Letting the air out of a balloon
31
Microeconomics focuses on...
how individual consumers and firms make decisions
country, a continent, or even the whole world
there is no right answer
studies an overall economy on both a national and international level
32
What is elastic demand
flexible layaway
price that goes down or up as demand goes up or down
number of jello sold
sales of rubber bands
33
Definition of Macroeconomics?
good and services that are desired
Study of economics as a whole; the big picture.
tangible items purchased to fulfill a desire
34
Define Equilibrium
When the quantity supplied is equal to quantity demand
When the quantity supplied is unequal to quantity demand
When the quantity supplied is equal to quantity supplied
35
What is inflation?
When prices go up but your money doesn't buy as much.
When prices go up but so do paychecks.
When prices go down but so does your pay
36
opportunity cost
cost of choosing one opportunity or investment over another
cost of selling a business to begin another
cost of operating a business
earning the best profit possible
37
A free market is...
One where price mechanism dictates prices and output
One that always operates in society's best interests
One without any government imposed legal restriction
One without tax on income or sales
38
if incomes rise then demand for inferior goods
rises
falls
39
The demand curve illustrates the relationship between quantity demanded and price.
False
True
40
Which of the following changes marginal cost?
Potential need for a new factory
All of these change marginal cost
Additional labor
Additional resources
41
What does a Demand Curve Look Like?
Slope Down from Left to Right
Slope Up from Left to Right
Horizontal line
Slope Down from right to left
42
Define substitute goods
The price of one good will decrease the quantity supplied of the other.
The price of one good will increase the quantity demanded of the other.
The price of one good will decrease the quantity demanded of the other.
43
What are externalities
Cost/Benefit affects party who didn't choose that cost
Difference in Cost/Benefit
Cost/Benefit affects party who chose that cost
44
Define Composite Demand
Goods that have a number of uses in the production process.
Goods that have no number of uses in the production process.
Bads that have no number of uses in the production process.
45
Subsidy
a visual representation of something
a part of something
dishonest practices in business or politics
a grant or contribution of money
46
Marginal Cost
the cost of producing one or more good
the cost of selling one or more good
47
Complementary Goods are goods that...
Are consumed separately
Are consumed jointly
Are inversely related
Are a personal union of dynasties from 16th century Europe
48
Government failure is...
when government intervention in a market causes a misallocation of resource
when government causes a misallocation of resource
when government intervention in a market causes an allocation of resource
49
Define Equity
This means fairness
This means farness
This means fairnes
50
What are externalities
Cost/Benefit affects party who chose that cost
Difference in Cost/Benefit
Cost/Benefit affects party who didn't choose that cost
51
What does a demand curve show
Amount buyers negotiate on
amount the buyers are willing to purchase from the price
Nothing
The products
