A depreciating currency is:

Bad for a business importing raw materials

Cost-Push Inflation is caused by

High prices because of producer's costs to create rise

A person without a job but is looking for one.

Define Economies of Scale

Reduction in a firm's average costs of production

don't change depending on output

give the definition of enterprise (factors of production)

skills/ abilities that people have in order to make a business successful

Cyclical Unemployment is

Caused by lack of overall demand in the economy

is the customer's willingness to buy an item or service at a given price.

Define Vertical Forward Integration

Business joins with another at later stage of production

External economies of scale...

Are due to the growth in the industry in which a firm exists

financial rewards that workers receive

Which of the following would not shift an economy's PPC?

An increase in the money supply

How does a government subsidy for rice farmers affect the market for rice?

increase supply by reducing farmers' costs

will be under-provided by the free market

will be over-provided by the free market

Horizontal Integration can be described as a firm...

Taking over competitors to monopolize the market.

What are the factors of production?

Land, labour, capital and enterprise

Structural Unemployment exists because of

Mismatch between skills of job seekers and of jobs available

Expansionary Monetary Policy involves

Increasing aggregate demand using low interest rates

Vertical Backward Integration

back in the production stage, same industry

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Economics G10 IGCSE Revision RISS

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Grade 10 final revision

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Questions 42

Answers

1
A depreciating currency is:
Good for consumers as price of imports falls
Bad for a business importing raw materials
Bad for a business that exports
Good for businesses importing raw materials
2
Cost-Push Inflation is caused by
Prices are decreasing because of demand from customers
High prices because of producer's costs to create rise
High prices because of demand from customers
Low prices because of producer's cost to create
3
Who is unemployed?
A stay at home mom or dad
A person not physically capable of working
A retired person
A person without a job but is looking for one.
4
An example of Capital (Factors of Production) can be
Land
Knowledge and Skills
Heavy machinery and equipment
Iron Ore
5
Define Economies of Scale
When the economy grows
Reduction in a firm's average costs of production
Rise in a firm's average costs of production
Max. output that can be achieved using available resources
6
Why can't scarcity be solved?
We have less wants than needs
Our needs are unlimited
Our wants are unlimited
We have more needs than wants
7
Which of the following are fixed costs?
Rent
Electricity
Raw Materials
Wages
8
Define equilibrium price
Supply and Demand equals GDP
Supply equals demand
Demand is greater than supply
Supply is greater than demand
9
Fixed costs...?
can also be called running costs
are the costs are business pays out when first setting up
change depending on output
don't change depending on output
10
give the definition of enterprise (factors of production)
skills/ abilities that people have in order to make a business successful
natural resources used in production
stock of goods to make goods
the workforce as well as their skills
11
Cyclical Unemployment is
Caused by the change of seasons
When there are not enough jobs available
Caused by lack of overall demand in the economy
When you get fired from your job for showing up late
12
When supply shifts to the left, what happens to market price and quantity?
They both go down
Price rises, quantity falls
Price falls, quantity rises
They both go up
13
What function does a central bank fulfil?
It issues currency.
It raises taxation.
It operates deposit accounts.
It offers facilities to individuals.
14
Demand in economics:
is the customer's willingness to buy an item or service at a given price.
is when a customer demands a good or service at a certain price.
15
Which of these is not included in Labour (factors of production)
Factory worker
Accountant
Diplomat
Entrepreneur
16
Define Vertical Forward Integration
Businesses in same industry/stage of production merge
Business joins with another at later stage of production
Two businesses in different industries join
Business joins with another at earlier stage of production
17
In this type of economy prices are influenced by supply and demand.
Market
Mixed
Command
Traditional
18
External economies of scale...
Arise due to decreasing returns to scale
Increase unit costs for a firm
Are due to the growth in the industry in which a firm exists
Are a short run reason for lower average costs
19
wage factors are
non financial rewards provided by firms
financial rewards that workers receive
20
Which of the following would not shift an economy's PPC?
A technological advance
Doubling the amount of capital in the economy
An increase in the money supply
An increase in population
21
Fiscal policy tools are
interest rates
taxes and government spending
money supply
unemployment and inflation
22
Example of a Non-wage factor
Confidence levels
Bonus
Career prospect
Productivity
23
How does a government subsidy for rice farmers affect the market for rice?
increase supply by increasing demand for rice
decrease supply by encouraging farmers to grow another crop
decrease supply by increasing farmers' production costs
increase supply by reducing farmers' costs
24
A current account deficit could lead to...
economic growth
higher unemployment
inflation
higher employment
25
Merit goods
will be under-provided by the free market
Be over-provided by the free market
26
Demerit goods
will be over-provided by the free market
will be under-provided by the free market
27
According to the law of supply, as prices fall
Quantity supplied rises
Quantity supplied falls
Quantity supplied does not respond
Quantity demanded by consumers falls
28
Commission is a Non Wage Factor
False
True
29
Which one of these is land? (Factors of Production)
The employees
The customers
The area where your shop goes
The toll register
30
Horizontal Integration can be described as a firm...
Taking over competitors to monopolize the market.
Selling a business for double the initial investment.
Creating a new business in hopes to revolutionize a market.
Buying stock with insider information in hopes to get rich.
31
GDP per capita is?
How much people earn
GDP / People in governments
GDP / Total population
GNP / working people only
32
What is the formula for Total Revenue
Y x P
O x B
P x Q
3 x 3
33
What are the factors of production?
There are no factors of production
Land, labour, capital and enterprise
Employment, ethics, age and gender
Land, labour and enterprise
34
Structural Unemployment exists because of
People who are temporarily between jobs
Mismatch between skills of job seekers and of jobs available
Temporary unemployment because of the time of year
Lack of overall demand in the economy
35
How is profit defined in economics?
Revenue divided by cost
Revenue + cost
Revenue x cost
Revenue - cost
36
Expansionary Monetary Policy involves
Reducing aggregate demand using low tax
Increasing aggregate demand using low interest rates
Reducing aggregate demand by restrictions on money supply
Increasing aggregate demand using high interest rates
37
One of the following goods are merit goods
Cigarettes
Library
House
Chairs
38
Vertical Backward Integration
back in the production stage, same industry
different industry
forward in the production stage, same industry
same stage, same industry
39
Demerit goods
have positive externalities
have negative externalities
are goods bought by high income households
are goods that require subsidy
40
Is the following graph showing a price ceiling or price floor?
Price floor
Price ceiling
41
A trade union...
protects amployees
prosecutes employees
is against employees
represents the employer
42
When the supply curve shifts right, what happens to market price and quantity?
Price falls, quantity rises
Price rises, quantity falls
They both fall
They both rise

Economics G10 IGCSE Revision RISS Flashcards | StudBud