stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Economics - LC Revision Flashcards | StudBud
Explore
/
Economics - LC Revision
Economics - LC Revision
48 terms
·
StudBud Administration
·
504 plays
LC Econ
Flashcards
48 cards
F
Practice quiz
P
Host live
L
Questions
48
Answers
1
The proportionate change in demand for Good A in response to a change in price of Good B is
Price Elasticity of Demand
Cross Elasticity of Demand
Price Elasticity of Supply
Income Elasticity of Demand
2
Which of the following are NOT Subject to the Law of Diminishing Marginal Utility?
Medicine
Shoes
Apples
Cars
3
Having enough money to actually buy the things that you desire is known as
Derived Demand
Effective Demand
Joint Demand
4
This represents a typical......
Demand Curve
Supply Curve
Average Cost Curve
Marginal Cost Curve
5
Biscuits would be considered an
Inelastic Good
Elastic Good
Neither
6
Governments SHOULD provide housing for all people in the country. This is an example of a
Positive Statement
Normative Statement
7
What happens to the demand curve for Dublin Houses if people think they are going to go up?
Remain the same
Shifts Inwards
Shifts Outwards
8
If the ECB wants to BOOST the economy, employment and slightly raise inflation, it will...
Keep them the same
Lower Interest Rates
Raise Interest Rates
9
In this table, when does the Law of Diminishing Marginal Utility kick in?
After Unit 6
After Unit 4
After Unit 7
After Unit 5
10
A perfectly competitive firm in the long-run produces at
The lowest point on their AC Curve
Where MC = MR
The lowest point on their MC Curve
11
If a company knows their product is INELASTIC, to increase revenue, they should
Increase Price
Decrease Price
Keep it the same
12
Which of the following would be considered a Normal Good?
Pot Noodles
Cheap Fast Food
Coca Cola
Black and White TVs
13
Which of the following is NOT an assumption Economists make about Consumers
They are subject to the Law of Diminishing Marginal Utility
They have limited Incomes
They act in a rational way
There is free entry and exit
14
An improvement in factory technology should cause a
Movement along the supply curve
A shift inwards of the supply curve
A shift outwards of the supply curve
15
This graph represents
Elastic Supply
Inelastic Supply
Unitary Elastic Supply
16
If a product has a PED of -3 , it is an
Perfectly Elastic
Elastic Good
Inelastic Good
Unitary Elastic
17
Luxury goods will usually be
Inelastic
Elastic
18
Demand and Supply is an example of a
Macroeconomics Topic
Microeconomics Topic
19
This curve represents
Limited Capacity Supply
Minimum Price Supply
Perfectly Inelastic Supply
20
Which of the following is NOT an Economic Good
Spicebags
Seawater
Holidays
Cars
21
Government has 100M to spend. They can build a hospital or build a road. This is an example of
Law of Diminishing Marginal Returns
Opportunity Cost
Law of Diminishing Marginal Utility
Deductive Reasoning
22
What happens to the demand curve for Cola if a consumer's income decreases
Remains the same
Shifts Inwards
Shifts Outwards
23
Economics is the study of
Drawing lovely Graphs
How society decides to allocate scarce resources
Physical items
Money and Stuff
24
For necessities such as bread/milk, as income rises, demand will
Rise a very small bit
Rise a large amount
Fall
25
Cigarettes would be considered a
Neither
Elastic Good
Inelastic Good
26
Price Elasticity of Demand measures
The % change in supply based on a % change in price
The % change in demand based on a % change in income
The % change in demand based on a % change in price
The % change in demand based on a % change in supply
27
A good with many close substitutes will be
Inelastic
Elastic
28
If a good has a PED of -1, it is an example of a
Elastic Good
Unitary Elastic Good
Inelastic Good
29
In perfect competition goods are
Close Substituties
Differentiation physically
Advertised
Homogeneous
30
A firm will remain open in the long-run if it
Covers its Average Total Costs
Just Covers its Fixed Costs
Covers its Average Variable Costs
31
The difference between the max someone would pay for a good and what they actually pay is?
Supply
Consumer Surplus
Demand
Producer Surplus
32
Which of the following are causes of inflation (2 Answers)
Demand-Push
Demand-Pull
Cost-Pull
Cost-Push
33
As income rises, for normal goods, demand will
Incresase
Decrease
Remain the same
34
Profits are maximised when...
MC = MR
MC > MR
MC < MR
35
As income rises, demand for these goods also rises. These goods are....
Giffen Goods
Inferior Goods
Normal Goods
36
To calculate inflation for a number of goods, you must use a
Composite Price Index
Difficult Price Index
Simple Price Index
Basic Price Index
37
This Diagram represents...
Equilibrium of Demand and Supply
Short Run Equilibrium for a firm in Perfect Competition
The relationship between SRAC and MC
Long Run Equilibrium for a firm in Perfect Competition
38
Which of the following PED figures represent an INELASTIC GOOD?
-8
-6.7
-4
-0.5
39
If interest rates RISE
Borrowing is more expensive - people spend less
Borrowing is cheaper - people spend more
Repayments on existing loans fall
Savings are discouraged
40
This image represents .....
A shift outwards in a demand curve
A shift inwards of a demand curve
A movement along a supply curve
A movement along a demand curve
41
Average Revenue =
Total Revenue / Quantity
Price
42
Monetary Policy involves
Changing Taxes
Governments trying to influence the supply of money
Governments spending money
43
This Diagram represents...
Nothing really
A mess
A decent attempt
I Don't Know
44
In the long-run
Labour is fixed
Land is fixed
Enterprise is fixed
All factors of production are variable
45
This Diagram represents
The Average Variable Cost Curve
The Fixed Cost Line
The Short Run Average Cost Curve
The Long Run Average Cost Curve
46
A change in the PRICE of Cola will cause a
A shift in the demand curve
Movement along the demand curve
47
Improved infrastructure like roads/airports which benefits companies in an industry is
An external Diseconomy of Scale
An Internal Diseconomy of Scale
An internal Economy of Scale
An external Economy of Scale
48
If the European Central Bank wants to slow down the economy to lower inflation, it will
Cut Interest Rates
Keep Interest Rates the same
Raise Interest Rates
