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Edexcel IGCSE Economics Unit 1.1 Flashcards | StudBud
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Edexcel IGCSE Economics Unit 1.1
Edexcel IGCSE Economics Unit 1.1
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Answers
1
Many workers suffer as a result of privatisation because of which of the following reasons?
They have to pay more tax
Their jobs are at risk
They are not allowed to belong to a trade union
They are often relocated
2
Which of the following shows the income elasticity of demand for an inferior good?
1.7
0.7
1.9
-1.2
3
Cars and petrol are examples of which goods?
Subsititute goods
Inferior goods
Capital goods
Complementary goods
4
Which of the following statements is true if the price is set below the equilibrium price in the market?
There will be excess demand in the market
There will be excess supply in the market
Supply and demand will be equal
Supply will be greater than demand in the market
5
Which of the following statements is true about the demand curve?
It slopes up from left to right
When there is a price change, there is a mocement along the demand curve
When the price falls, the quantity demanded falls
There is a proportionate relationship between price and quantity demanded
6
Which of the following goods or services is most likely to be provided by the public sector in a mixed economy?
Books
Cinemas
Motorways
Cars
7
Which of the following is a reason why consumers may not maximise their benfits?
Some consumers are very poor
Some consumers develop buying habits that are hard to give up
Some consumers save a high proportion of their income
Opportunity costs may be too high
8
Which of the following is a motive for privatisation?
Reduce externalities
Generate money for the government
Increase growth in the public sector
Improve the welfare of shareholders
9
What is the value of the price elasticity of supply for a straight line supply curve that passes through the origin?
1
Infinity
-1
0
10
A rise in the price of car insurance may have which effect?
Increase the quantity demanded for car insurance
Shift the demand curve for cars to the right
Increase the quantity demanded for cars
Shift the demand curve for cars to the left
11
Which of the following represents social cost?
Private costs + External costs
Private costs - Private benefits
Private benefits + External benefits
Private costs + Private benefits
12
Which of the following will cause a demand curve to shift to the left?
A fall in income
A rise in the price of the product
A fall in the price of the product
A rise in income
13
If supply is fixed, which of the following is true?
Demand will also be fixed
Suppliers will not offer any quantity for sale
Supply will fall when prices rise
The supply curve will be vertical
14
If demand for a product falls and the supply increased which of the following will happen?
Total revenue will rise
Price will rise
There will be excess supply
Price will fall
15
Which of the following questions is associated with the basic economic problem?
What to produce?
Who should produce?
When to produce?
Where should production be located?
16
A bumper wheat harvest across the world resulting from favourable weather conditions will do what?
Reduce the price of butter
Increase the price of wheat
Reduce the quantity demanded for bread
Shift the supply curve for wheat to the right
17
Which of the following is an example of an external cost resulting from production?
Loud music from a noisy neighbour
Smoke fumes from cigarettes
Job creation resulting from the development of a brownfield site
Noise pollution from an aircraft
18
Which of the following is true of supply?
If the price increases the supply curve will shift to the right
The supply curve is always horizontal
If the price falls, the quantity supplied will also fall
The amount supplied and the price are inversely related
19
What is the PED for a perfectly inelastic demand curve?
-1
0
-0.1
Infinity
20
Which of the following is an aim of a public sector organisation?
Providing a public service
Survival
Profit maximisation
Growth
21
The price of a product rised by 12%. As a result, producers increase the amount supplied by 18%. What is PES?
0.67
12
0
1.5
22
If the value of PED for a produce is -0.87, an increase in price will result in which of the following?
A decrease in the demand for a substitute product
An increase in demand for the product
A fall in total revenue
A rise in total revenue
23
Which of the following would help consumers and producers maximise their benefits and profits, respectively?
Improved transport networks
Better quality products
Lower prices
Access to more information
24
Which of the following might be considered a need rather than a want?
Smartphone
Shelter
Holiday
Pet dog
25
Which of the following will shift the supply curve to the left?
A decrease in indirect taxes
Higher production costs
The introduction of new technology in production
A government subsidy
26
The PED for a product is -2.4. What will happen if the price of this product is increased by 10%.
Total revenue will fall
Demand will fall by 10%
Total revenue will rise
Demand will rise by 24%
