Three basic types of economic systems are:

free enterprise, command economy, mixed economy

Income elasticity of demand is

Negative when it is an inferior good

What are the factors of production?

Land, labour, capital and enterprise

Elasticity of demand:

How quickly demand changes in response to changes in price

All of the following are determinants of demand elasticity except

whether the product has utility

Why is the supply of labour inelastic?

Low mobility of factors of production due to high degree of specialisation

Characteristics of money:

portable, scarcity, divisibility

What do trade unions do

Look after the interests of employees

Price elasticity of demand measures...

how sensitive consumers are to a change in price

Which statement describes the functions of central banks?

Holds the country’s reserves of foreign currency and gold.

functions of commercial banks

Make loans to individuals and firms

Define factors of production.

the resources used to produce all goods and services

organisations set up to protect workers

Two functions of money

a store of value, a unit of account

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Grade 11 -Review

33 termsStudBud Administration6 plays

economics

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Questions 33

Answers

1
Three basic types of economic systems are:
what to produce, how to produce, who will receive the goods and services
individual rights, state rights, mixed rights
free market, natural resources, labor
free enterprise, command economy, mixed economy
2
The formular of Income Elasticity Demand is YED= %Change in quantity demanded / %Change in Income
True
False
3
Why is division of labour important?
more effective
all tissues has a task
Every cell has a task
more efficient
4
The minimum wage is an example of a price
floor
ceiling
5
Income elasticity of demand is
Between 0 and 1 when it is a necessity
Negative when it is an inferior good
Always negative
Always positive
6
What are the factors of production?
Land, labour and enterprise
There are no factors of production
Employment, ethics, age and gender
Land, labour, capital and enterprise
7
Elasticity of demand:
The more candy costs, the more you will buy
Both are true
How quickly demand changes in response to changes in price
8
All of the following are determinants of demand elasticity except
whether there are adequate substitutes for the product
whether the purchase of the product can be delayed
whether the product has utility
whether the product purchased requires a lot of income
9
The formula for income elasticity of demand (YED) is:
YED = % Δ Qd x % Δ Y
YED = % Δ Qd / % Δ Y x 100
YED = % Δ Qd / % Δ Y
YED = % Δ Y / % Δ Qd
10
These are functions of Central Bank, except:
holder of country's stock of gold
banker to government & other banks
promoting monetary stability
promoting price stability
11
Which of these are types of trade unions?
Industrial
Economic
Political
White collars
12
Why is the supply of labour inelastic?
None of the above
Low mobility of factors of production due to high degree of specialisation
Workers can undergo training to equip themselves with the skills needed
Abundance of spare capacity as Hungary can tap into foreign talents
13
Functions of Central Bank ?
Issues Notes
Banker to the banks
All of the above
Custodian of Foreign Exchange
14
What do economic systems do?
Organize production
Allocate resources
Answer the three basic economic questions
All the above
15
Characteristics of money:
plentiful, valuable, conformity
valuable, green, smells funny
portable, scarcity, divisibility
conformity, assimilation, availability
16
Which of the following a free good?
cash
car
computer
sunlight
17
What do trade unions do
Look after the interests of employees
Gather tradesman to have a big game of Rugby
Give employers support when workers become unhappy
Nothing as they are outdated and of no use
18
Price elasticity of demand measures...
buyers ability to switch
how sensitive consumers are to a change in price
buyers knowledge of the product
availability of substitutes
19
factors that determine demand
machines
workers
number of companies in industry
consumer expectation
20
Which is NOT factors that determine supply?
Other market opportunities
Expectations of the business
Necessities or luxuries
Price of the product
21
The following are the different types of trade unions except ________.
House Union
General Union
Craft Union
Amalgamated Union
22
In which economic system does the government make all of the economic decisions?
communism
free enterprise
capitalism
socialism
23
Which concept is essential to the study of economic systems?
citizenship
human rights
factors of production
self-determination
24
Which statement describes the functions of central banks?
Holds the country’s reserves of foreign currency and gold.
Operating pension funds
Buying and selling shares for customers
Provide and exchange foreign currency
25
Minimum wage affects the demand for...
types of jobs
skill training
unemployment
labor increases
26
Cross price elasticity of demand is
Always greater than 1
Always unitary
Positive for substitute goods
Positive for complementary goods
27
functions of commercial banks
Managing money supply
Issue replacement of coins and banknotes
Providing loans to the government
Make loans to individuals and firms
28
Define factors of production.
the most desirable alternative sacrificed
the goods and services produced from resources
an alternative we sacrifice when we make a decision
the resources used to produce all goods and services
29
Below are the functions of commercial banks, except:
Achieving price stability
Offer trade finance facilities
Offer Treasury services
Provide retail banking services
30
Trade Unions are
organisations set up to protect workers
organisations that encourage industrial action
organisations that help employers with industrial relations
31
Two types of trade unions are Craft & industrial
False
True
32
Two functions of money
a store of value
wallpaper a room
to boost ego
a unit of account
33
There are five types of trade unions.
True
False

Grade 11 -Review Flashcards | StudBud