IGCSE Economics: 1.1 Market System (Chapter 1-13)

Question 1

Which of the following would help consumers and producers to maximise their benefits and profits?

Accepted Answer

Better quality products

Question 2

What relationship does the price and quantity demanded have for a supply curve?

Accepted Answer

Proportionate relationship

Question 3

Which of the following is true if the price is set below the equilibrium price in a market

Accepted Answer

excess demand in the market

Question 4

Which of the following is a motive for privatisation?

Accepted Answer

Generate money for the government

Question 5

Which of the following represents the social costs?

Accepted Answer

Private Costs + External Costs

Question 6

Which of the following is a reason why consumers may not maximise their benefits?

Accepted Answer

Some consumers may develop habits that are hard to give up

Question 7

Price of a product rises by 12%. As a result, producers increase the amount supplioed by 18%. What is the PES?

Accepted Answer

1.5

Question 8

A rise in the price of car insurance may have which effect?

Accepted Answer

Shift the demand curve for cars to the left

Question 9

Many workers suffer as a result of privatisation because of which reason?

Accepted Answer

Jobs are at risk / Redundancies

Question 10

An exceptionally good wheat harvest across the world resulting from favourable weather conditions will do what?

Accepted Answer

Shift the supply curve for wheat to the right

Question 11

If the value of PED for a chartwell's $32 lunch box is -0.38, an increase in the price will result in the following?

Accepted Answer

A rise in total revenue

Question 12

Which of the following is normally an aim of a public sector organisation

Accepted Answer

Providing a public service

Question 13

What is the PED value for a perfectly inelastic demand curve?

Accepted Answer

0

Question 14

What is the value of price elasticity of supply for a straight line supply curve that passes through the origin?

Accepted Answer

1

Question 15

Which of the following will cause a demand curve to shift to the left?

Accepted Answer

A fall in income

Question 16

If supply is fixed, which of the following is true

Accepted Answer

Supply curve will be vertical

Question 17

The PED of a product is -2.4. What will happen if the price of this product is increased by 10%?

Accepted Answer

Total Revenue will fall

Question 18

Which of the following shows the income elasticity of demand for an inferior good?

Accepted Answer

-1.2

Question 19

Which of the following will shift a supply curve to the left?

Accepted Answer

Higher production costs

Question 20

Which of the following statements is true?

Accepted Answer

If the price falls, the quantity supplied will also fall

Question 21

What is the shaded area?

Accepted Answer

Total Revenue

Question 22

For a demand curve, the price and quantity demanded have an inverse relationship

Accepted Answer

True

Question 23

If the price of the good increases, which statement is true?

Accepted Answer

there is an upward movement along the supply curve

Question 24

Which of the following is an example of an external cost resulting from production?

Accepted Answer

Loud music from a noisy neighbour

Question 25

Cars and petrol are examples of which goods?

Accepted Answer

Complementary goods

Question 26

Which of the following goods or services is most likely to be provided by the public sector in a mixed economy?

Accepted Answer

Motorways

Question 27

Which of the following statements is true about a demand curve?

Accepted Answer

When there is a price change, there is a movement along the demand curve

IGCSE Economics: 1.1 Market System (Chapter 1-13)

Questions 27

IGCSE Economics: 1.1 Market System (Chapter 1-13)

Questions 27