Which of the following is likely to cause a decrease in consumer spending?

An increase in the rate of inflation

Which of the following does not provide external benefits to society?

New public housing funded by the government

One reason a group of farmers may form a producer co-operative is

to take advantage of bulk-buying discounts for agricultural supplies

Describe two ways in which Country X could increase the productive capacity of the economy and cause a shift to point E.

Country X could invest in machinery or technology to boost productivity., Country X could train workers to boost productivity.

Which of the following is not a problem of bartering as a medium of exchange?

The need for trade and exchange

The data below shows the demand and supply schedule for mushrooms each week. Which of the statements below is incorrect?

There is a shortage in the market at $10 per unit

Which of the following is a reason why a trade union may ask for a wage increase for its members?

Increased profits in the industry

A request by a trade union for a pay rise for its members who work in a toy factory is likely to be successful if:

there is high demand for toys produced in the factory

Which of the following is the most likely motive for taking out a long-term loan?

To purchase residential property

If Country X wants to increase wheat production from W2 to W1, the opportunity cost in terms of oil is

a decrease in oil production from 0 2 to 0 1, an increase in oil production from 0 1 to 0 2

The main aim of a trade union is to

Improve pay and working conditions for its members

What could reduce government spending on welfare, if we have a higher national minimum wage?

Unemployed workers have a greater incentive to work

The basic economic problem is

B how to allocate scarce resources to satisfy unlimited needs and wants

Foreign firms created 66k UK jobs in 2013, but a downside is...

they may avoid paying income tax in the UK by declaring profits elsewhere

Which of the following is a use of price elasticity of demand?

To identify changes in the spending patterns of consumers

Explain what is meant by a mixed economy.

An economic system that combines public and private sectors free market.

With a relevant example, explain how prices are determined in a free market economy.

Prices are set by the equlibrium of demand and supply.

Which of the following statements explains why there might be a decrease in the demand for sugar?

Consumers are more aware of health issues related to sugar

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QUIZ

100 termsStudBud Administration18 plays

funny quiz and true or false questions for economics, classification of goods

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Questions 100

Answers

1
Which of the following characteristics is not relevant to the model of monopoly?
Sole supplier
Pricesetter
Extreme barriers to entry
Perfect knowledge
2
Which of the following is likely to cause a decrease in consumer spending?
An increase in the rate of inflation
An increase in government spending on health care and education
A decrease in interest rates
An increase in business and consumer confidence in the economy
3
Which of the following does not provide external benefits to society?
A public park
A local college that provides education and training
New public housing funded by the government
A new history museum
4
Which term is used to describe the market structure where only one supplier of a good or service exists?
Monopoly
Price maker
Market leader
Price setter
5
A possible solution for traffic congestion is to
Improve road safety
lncrease tax on cars
Build more roads
Create more car parks
6
One reason a group of farmers may form a producer co-operative is
to provide external benefits for the wider society
to be able to exert monopoly power
to reduce competition between farmers
to take advantage of bulk-buying discounts for agricultural supplies
7
Which of the following policies would give people an incentive to save?
Higher interest rates
Lower interest rates
Higher income tax rates
Banks make it easier to borrow money
8
Which of the following products are considered to be complementary goods?
Shampoo and conditioner
Apples and oranges
Sugar and tea
Tea and coffee
9
Describe two ways in which Country X could increase the productive capacity of the economy and cause a shift to point E.
Country X could invest in machinery or technology to boost productivity.
Country X could train workers to boost productivity.
Country X could build more facilities for their employees
Train the employees to work from home to increase their satisfaction
10
Provide an example of a capital-intensive industry and a labor-intensive industry.
Water production.
Garment manufacturing and teaching.
Sun light manufacturing.
Car manufacturing and glass production.
11
An example of a free good is
housing
public domain web pages
tennis rackets
running shoes
12
A partnership has limited liability, while a private limited company has unlimited liability.
True
False
13
Which of the following is not a problem of bartering as a medium of exchange?
The need for divisibility
The need for a double coincidence of wants
The need for portability
The need for trade and exchange
14
Money is any commodity that can be used as a medium of exchange that is accepted for the purchase of goods and services.
True
False
15
The data below shows the demand and supply schedule for mushrooms each week. Which of the statements below is incorrect?
At $8 per unit, there is excess demand of 3000 units
At $10 per unit, there is excess supply of 3000 units
Equilibrium exists at $9 per unit
There is a shortage in the market at $10 per unit
16
Which of the following is a disadvantage of operating a free market economic system?
Lack of economic freedom
Lack of incentives to work
Bureaucracy
Income and wealth inequalities
17
Which profile of spending, saving and borrowing as a proportion of income is most likely to be that of a retired person?
A
C
B
D
18
Which of the following is a reason why a trade union may ask for a wage increase for its members?
Higher unemployment in the economy
Lower productivity in the industry
A lower rate of inflation
Increased profits in the industry
19
Which of the following is most likely to reduce the demand for electric cars?
Increased advertising for electric cars
An increase in tax on petrol-fuelled cars
A government subsidy on the price of electric cars
A fall in the price of petrol
20
What is the price elasticity of demand for rice based on the information below?
-4.0
-2.5
-1 .6
-0.25
21
A request by a trade union for a pay rise for its members who work in a toy factory is likely to be successful if:
there is a large pool of people willing to work in the toy factory
there is low inflation in the economy
the productivity of workers in the toy factory has fallen
there is high demand for toys produced in the factory
22
Find the average costs if the output is 2000 units/week, variable costs are $20000, and fixed costs are $10000.
$20
$5
$15
$10
23
Which of the following is least likely to be an entry barrier to the publishing industry?
Economies of scale enjoyed by the leading publishing firms
Consumer protection laws
Existing publishers with established market share
Set-upcosts
24
Which of the following characteristics is not relevant to the model of perfect competition?
No barriers to entry
Many buyers and sellers
Differentiated products
Perfect knowledge
25
Which of the following is the most likely motive for taking out a long-term loan?
To fund current spending
To spend more on food and drink
To go on holiday
To purchase residential property
26
Training, minimum wage, welfare, and retirement age do not influence the labor supply.
False
True
27
Derived demand means that labour is demanded for the goods and services it is used to produce rather than for itself.
True
False
28
A free sample of cheese at the grocery store is a public good.
False
True
29
The production of which of the following goods or services is least likely to be labour-intensive?
Private piano lessons
A Hollywood movie
A made-to-measure wedding dress
Carbonated soft drinks
30
If Country X wants to increase wheat production from W2 to W1, the opportunity cost in terms of oil is
an outward shift of the PPF curve to point E
a decrease in oil production from 0 2 to 0 1
an increase in oil production from 0 1 to 0 2
Cto D
31
The main aim of a trade union is to
Cause disruptions to employers and the economy
Gain publicity for its members
Call its members out on strike action
Improve pay and working conditions for its members
32
What could reduce government spending on welfare, if we have a higher national minimum wage?
Unemployed workers have a greater incentive to work
Increased tax revenues from higher income taxes
Greater productivity of public sector workers
Increased consumer spending in the economy
33
The diagram below shows economies of scale. What does the curve in the graph represent?
Variable costs
Average costs
Minimum costs
Total costs
34
At which point is there spare capacity in the economy?
E
C
D
F
35
The basic economic problem is
B how to allocate scarce resources to satisfy unlimited needs and wants
C the interaction of market forces to satisfy unlimited needs and wants
D meeting increased demand for goods and services with limited resources
A how to satisfy limited wants and needs with unlimited resources
36
Bank notes are not considered effective forms of money because they lack durability, portability, and uniformity.
True
False
37
Wage factors: bonuses, profit pay. Non-wage factors: career prospects, challenge level.
True
False
38
The central bank has no role in issuing currency, managing monetary policy, or serving as the lender of last resort.
True
False
39
Do earnings tend to rise with experience and therefore people aged 35-44 earn more than those aged 20-24?
False
True
40
One example of service provided by a government because it would otherwise be under-consumed by society: health care
False
True
41
What is the name of the institutional marketplace for trading the shares of public limited companies?
Corporate banks
Commercial banks
Central banks
Stock exchanges
42
Which of the following is a fixed cost of production for a manufacturing firm?
Overtime pay
Workers'wages
Rental payments
Electricitycharges
43
Foreign firms created 66k UK jobs in 2013, but a downside is...
they provide employment and training opportunities for workers
they may avoid paying income tax in the UK by declaring profits elsewhere
they choose to take advantage of cheap land and labour
they provide competition for local firms which encourages innovation
44
Which of the following is a use of price elasticity of demand?
To estimate the changes in a firm's costs of production
To calculate changes in the general price level
To calculate consumer spending based on their disposable income
To identify changes in the spending patterns of consumers
45
*What is it called when workers only work their contracted hours and refuse overtime?
go-slow
strike action
sit-in
work-to-rule
46
Explain what is meant by a mixed economy.
Public sectors + government control, less individual freedoms
A blend of public and private sectors with private control
Public + private sectors + foreign control, less individual freedoms.
An economic system that combines public and private sectors free market.
47
Trade union membership in the UK dropped from 13M in 1979 to 6.5M in 2013 due to a decrease in manufacturing industry.
False
True
48
What is the price elasticity of demand (PED) for a product for which a 10% price rise reduces sales volume by 5%?
-0.5
+2.0
-2.0
+0.5
49
The table shows the variable costs of production at different levels of output. What output has the lowest average cost?
400
300
200
100
50
With a relevant example, explain how prices are determined in a free market economy.
Prices are impacted by seasonal factors and consumer trends.
Prices are set by the equlibrium of demand and supply.
Prices are affected by seasonal factors and consumer trends.
Prices are affected by seasonal factors and consumer trends.
51
Which of the following statements explains why there might be a decrease in the demand for sugar?
Consumers are more aware of health issues related to sugar
There is an increase in the supply of land to produce sugar
Demand for coffee and tea has increased
New technologies increase the output of sugar
52
The commercialisation of new ideas and products as an essential source of productivity is known as
productivity
efficiency
innovation
entrepreneurial spirit
53
Investment in human resources and other resources does not improve productivity.
True
False
54
The advantages of a high savings ratio include causing demand-pull inflation and not providing funds for retirement.
False
True
55
A disadvantage of specialisation of labour for a firm is
The quality of the products increases
Workers become skilled in the job and more productive
The production process may become dependent upon a particular worker
Workers make less mistakes
56
Which economic agent(s) are the decision makers in a mixed economy?
Government and firms
Government
Households, firms and the government
Households and firms
57
The practice of monopolists charging different prices to different customers for essentially the same product.
Promotional pricing
Price discrimination
Price maker
Price taker
58
What is the correct label for the upward sloping line shown in the graph below?
Variable costs
Averagecosts
Total costs
Fixedcosts
59
Why does a -0.55 price elasticity of demand for cigarettes in a country matter? Explain one influencing factor.
the proportion of a consumer’s income that is spent on lighters
the effectiveness of advertising smoking
the degree of habits/addiction of non-smokers
the degree of substitution for smokers
60
Is a movement in demand the same as a shift in demand?
True
False
61
What government action can cause the increase in household borrowing?
Negative economic outlook for the economy
An increase in real wages
An increase in direct and indirect taxation
Negative economic outlook for the economy
62
The willingness and ability of customers to pay a given price to buy a good or service is known as
Effective demand
Market supply
The law of demand
Market demand
63
What are the costs of production that have to be paid regardless of how much a firm produces or sells?
Fixed
Average
Total
Variable
64
Find the output needed for minimum average costs if $20 sale price/unit, total costs, and levels of output are:
20
50
40
30
65
What type of business is the shirt manufacturer if they have issued shares that can only be sold to friends and family?
Public limited company
Private limited company
Public corporation
Partnership
66
What is a business that is owned and run by its members (employees/clients), aiming to create value responsibly.
Private limited company
Partnership
Public corporation
Co-operative
67
An olive farm in Italy sells organic olive oil online to shops worldwide. An example of tertiary industry activity is:
bottling the olive oil
growing olive trees
selling the oil over the internet
crushing the olives to extract the oil
68
Three factors determine the value of price elasticity of supply (PES)
True
False
69
Women in general tend to earn less than men. Which of the following is a possible reason for this?
There is a greater female participation rate in the workforce
More women are focused on their careers and delaying having children
A number of women work part-time or work flexible working hours
More women are enrolled on medicine and law courses
70
The payment received by a firm from the sale of its goods and/or services is known as:
income
total costs
salaries
revenue
71
Which economic system relies on the government to allocate resources?
Free market economy
Market economy
Mixed economy
Planned economy
72
Which economic term is used to describe or measure how well resources are used in the production process?
Productivity
Innovation
Economies of scale
Competitiveness
73
A similarity between a sole trader and a partnership is
they can sell shares to family and friends
they have between 2 and 20 members
they have unlimited liability
they both have a single owner
74
What is the term for how an economy is organized and resources allocated?
Scarcity
Economic systems
The basic economic problem
Economic agents
75
Online movies become unavailable if too many people watch them at the same time.
False
True
76
Banning mobile phones on public transport both reduces noise pollution and may decrease overall productivity
False
True
77
Which of the following is not a factor of production?
Labour
Money
Land
Enterprise
78
Which of the following is likely to have the highest value for price elasticity of supply (PES)?
Haircuts at a local hair salon
Original Picasso paintings
Organic oranges
Season tickets at Real Madrid Football Club
79
Casinos in Macau have caused more family debt, alcohol abuse, and smoking health problems.
True
False
80
Which of the following is a secondary function of commercial banks?
Making advances
Offering internet banking
Credit creation
Accepting deposits
81
Which of the following is an example of action taken by a trade union?
Work-to-rule
Go-fast
Sit-down
Lie-in
82
Define opportunity cost using a real-life example
Building a new sports hall means sacrificing a new library or classroom.
Opportunity cost is the first best alternative's cost.
Building a sports hall and a laboratory.
Opportunity cost is the next best alternative's cost when making a decision
83
Which factor below does not explain why the demand for cars in China has continuously increased?
Effective advertising and marketing from car makers
Higher interest rates in China
Lower import taxes on cars made outside of China
Greater household disposable incomes
84
Business organisations in an economy provide employment opportunities and increase the earnings of other firms.
True
False
85
Are more women joining trade unions due to low paid jobs, poor working conditions, and wealth gap?
True
False
86
Which economic question is not fundamental and must be addressed by any economic system?
What production should take place?
How should production take place?
For whom should production take place?
Why should production take place?
87
Individuals may buy shares in a public limited company to receive dividends and hope for a capital gain when they sell.
False
True
88
Do factors such as lower interest rates, lower taxation, and low confidence in the economy affect domestic spending?
True
False
89
Some professional football players earn over $1.5 million per week. What is the most likely reason for this?
The job is high-risk so needs to be highly compensated
Some professional footballers have a unique set of skills and talent
Being a footballer is a seasonal job
The working life of a professional footballer is relatively short
90
Is capital-intensive production when a firm spends more money on capital costs than on any other factor of production?
True
False
91
What is the factor that influences the demand for factors of production?
competitiveness
factor inputs
investment
derived demand
92
Individual bargaining is more powerful than collective bargaining.
True
False
93
Why choose the public sector over the private sector with a £22.5k annual salary vs. £39k in a legal profession?
Greater job security and pension
Better promotion prospects and career progression
Higher earning potential
More opportunities to earn bonuses
94
Imagine potatoes during a famine. Even as prices soar, people buy more because they can't afford meat anymore.
True
False
95
An increase in interest rates will cause spending to decrease.
False
True
96
Which of the following is not a function of a central bank?
The sole issuer of bank notes and coins in the country
The facilitation of company growth
The government's bank
The lender of last resort
97
Which of the following is not an example of market failure?
A supermarket charging high prices because of its monopoly power
Car parks in a town centre
Congestion caused by the number of cars on the road
Air pollution
98
Is the statement "An ordinary supply curve is upwards sloping" a true or false question?
True
False
99
Outline two features of a planned economic system.
The economy preffers to be self-sufficient.
Production decisions are made by the management team
Production decisions are made by the government
Production schedules are made on a day to day basis
100
Which of the following is not a function of money?
Store of value
Durability
Medium of exchange
Measure of value

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