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
40 terms
·
StudBud Administration
·
11 plays
A revision activity for IGCSE Economics students to test their knowledge of key terms from all units
Flashcards
40 cards
F
Practice quiz
P
Host live
L
Questions
40
Answers
1
Which statement best describes the economic problem?
Limited wants
High supply
Unlimited resources
Scarcity
2
If a decision results in more social costs than social benefits, the decision is considered...
Uneconomic
Not beneficial to society
Unprofitable
Expensive
3
If Coca Cola acquires Pepsi, this is an example of ...
Forward vertical integration
Lateral integration
Backward vertical integration
Horizontal integration
4
What does PED measure?
The responsiveness of price to changes in demand
How price changes with demand
The responsiveness of demand to changes in price
How firms respond to changes in price
5
Money is considered as an acceptable means of purchasing means goods. This shows money is...
A medium of exchange
Means of deferred payment
Measure of value
A store of value
6
When a firm breaks even they are...
Making a loss
Are making profit
Selling a high quantity of products
Generating enough revenue to cover all their costs
7
How can governments correct market failure?
Lower subsidies
Lower taxes
Less regulation
Government policy
8
How is labour productivity measured?
Total output divided by number of employees
Number of employees divided by total output
Total revenue divided by number of employees
Time produced divided by output
9
A perfectly competitive market benefits from...
Having perfect knowledge of the market
Limiting supply of a good
Being a price-maker
Generating abnormal profits
10
Which of the following are non-price factors affecting the supply of a good/service?
Tax, natural disasters, profitability
Cost of production, income levels, advertising
Changes in population, raw material prices, weather
Advertising, raw material prices, tax
11
Which of the following factors does NOT affect the PED of a good/service?
The availability of compliment goods
Number of substitutes
The proportion of income spent on a good
The amount of time consumers have to make a decision to buy
12
Private benefits + external benefits = ?
Total social benefit
Economies of scale
Social costs
Negative externalities
13
Which the following is not offered by commercial banks?
Financial advice
Bank loans
Credit and debit cards
Supervision of other commercial banks
14
Which of the following is NOT a factor affecting the quantity demanded of a good/service?
Changes in income of an individual
Changes in the size of a population
The amount a good is advertised
Changes in the productivity of technology
15
Productivity measures ...
The amount a firm sells in a year
The amount produced from a given amount of input and time
The time it takes to produce a product
The amount workers produce
16
Pay per hour worked is called...
Time Rate pay
Salary
Piece rate pay
Commission
17
Which of the following is a non-wage benefit?
Being employed as a part-time worker
Having very social co-workers
Maternity pay
A job promotion
18
What best describes 'demand'?
What prices consumers charge for goods and services
Amount consumers are willing and able to buy at diff prices
How responsive demand is to changes in price
How much consumers are willing to buy
19
Imagine PED = 7.5. This suggests a good is....
Highly price inelastic
Highly price elastic
Unit elastic
Slightly price elastic
20
How does a market economy differ from a mixed economy?
A planned economy focuses on necessities rather than wants
A market economy is dominated by the public sector
A mixed economy has a primary incentive to make profit
Most economies in the world are market economies
21
What best describes 'land'?
Outputs
Wood, trees and water
Any natural resource used in the production process
Anything man-made
22
Which of the following is another way of saying a 'market economy'?
Planned economy
Private economy
Free market economy
Mixed economy
23
If a worker has high occupational mobility, this means that...
The worker is able to work between different occupations
The worker gets paid high wages
The worker works undesirable hours
The worker can work in many countries
24
How does a public corporation differ from a public company?
Public companies have unlimited liability
Public corporations are government owned
Public corporations cannot earn revenue
Public companies are government owned
25
Which firms an choose who they can sell (issue) shares to?
Partnerships
Sole traders
Public limited companies
Private limited companies
26
Revenue an oil company earns rom the sale of oil and petroleum is an example of...
A social cost
A positive externality
An external cost
A private benefit
27
Which statement describes the law of supply?
As the price of a good rises, the quantity supplied falls
As the price of a good rises, the quantity demanded falls
As the price of a good falls, the quantity supplied falls
As the price of a good falls, the quantity supplied rises
28
Which of the following is NOT a function of a trade union?
Improving working conditions
Helping workers apply for jobs
Increasing holiday entitlement
Negotiating better Non-wage benefits
29
How would an increase in the price of iPhones be illustrated using a diagram?
A shift in the demand curve to the right
A shift in the demand curve to the left
A movement along the demand curve
A shift in the supply curve to the right
30
Which Economic diagram is used to demonstrate the concept of opportunity cost?
Aggregate demand curve
Production possibility curve
Supply curve
Demand curve
31
Which of the following businesses is part of the secondary sector?
A factory producing donuts
A firm extracting oil
A gym
A hotel
32
'Work to rule' is a form of industrial action. What does this mean?
Workers intentionally work slow
Workers refuse to work and protest outside the workplace
Workers comply to every rule and regulation excessively
Workers refuse to work more than their contracted hours
33
Which of the following is NOT a key question about resource allocation?
What to produce?
How to produce?
For whom to produce for?
How many to produce?
34
What are 'free goods'?
Goods that not use child labour
A lack of market failure
Resources that are not scarce
Resources that do not cost any money
35
Disposable income is...
Income a person has left after tax
Income stolen from cyber fraud
Consumer expenditure
Income spent on unnecessary goods and services
36
Good money should be...
Accepted, portable, cheap to produce, scarce
In short supply, divisible, durable, scarce
Scarce, not easily damaged, divisible
widely available, accepted in limited places, portable
37
Define subsidy
Discounts to consumers
Income governments receive from taxation
A payment to producers to lower cost of production
Transfer payments
38
A perfectly elastic demand curve would look...
Horizontal
Vertical
39
Profit =
Total costs minus revenue
Selling price multiplied by amount sold
Revenue minus total costs
Revenue minus fixed costs
40
What distinguishes a public good from a merit good?
Merit goods are provided by both public and private sector
Merit goods are usually free to consume
Public goods always benefit from economies of scale
Public goods are highly scarce
