What is an example of an inferior good?

Demand for Second Hand Clothes decreases (Economic Crisis)

What would happen to the demand curve of normal goods if population increases?

the demand curves shift to the right

What is the economic problem?

Limited Resource, Unlimited Wants and Needs

Distinguish some non-price determinants of demand of a normal good

Income: as income decreases, demand decreases

What would happen to the demand curve of Good X if the price of Good Y increases?

demand of good X shifts to the right

Define the term MARKET

Where buyers & sellers gather for an economic transaction

What is a possible reason for demand of strawberries to expand?

Farmers shift to producing apples, The price decreases from $4/kg to $2.99/kg

What would cause the supply curve contract?

Shift of demand curve to the left

When does a market achieve market equilibrium

Price signals are given to producers, When the supply equals to the demand.

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1.1 Supply and Demand

16 termsStudBud Administration85 plays

IB Economics

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Questions 16

Answers

1
What is an example of an inferior good?
Demand for A 24k Gold Statue increases (economic boom)
Demand for house renting decreases (economic boom)
Demand for rice in China increases (economic boom)
Demand for Second Hand Clothes decreases (Economic Crisis)
2
What is the price of excess supply?
$20
$25
$35
$30
3
What is the best definition of opportunity cost
The next best alternative
Another opportunity
Another Choice
A Price
4
Money spend for a school could be used to build a new factory, what problem does this suggest?
The economic problem
The next best alternative is better than what is chosen
The government should not build public schools
The opportunity cost is too big
5
What would happen to the demand curve of normal goods if population increases?
the demand curves shift to the right
the demand curve expands
the demand curve contracts
the demand curves shift to the left
6
What is traded in the international stock markets
Welfare Gain :)
International Currencies
Shares in companies
Land of Companies
7
Which of the following good or service is free?
A date with a best friend's boyfriend
A free movie ticket (Gold Class)
None of the above
Taking a nap before an exam
8
What is the economic problem?
Limited Resource, limited Wants and Needs
Unlimited Resource, Unlimited Wants and Needs
Unlimited Resource, limited Wants and Needs
Limited Resource, Unlimited Wants and Needs
9
Distinguish some non-price determinants of demand of a normal good
Income: as income decreases, demand increases
Innovation of technology
Number of sellers in the market
Income: as income decreases, demand decreases
10
What would happen to the demand curve of Good X if the price of Good Y increases?
demand of good X shifts to the right
demand of good X shifts to the left
demand of good X expands
demand of good X contracts
11
Define the term MARKET
Goods and services are being given for free
Where buyers & sellers gather for an economic transaction
Where producers cheat
There is no such thing as a market
12
What is a possible reason for demand of strawberries to expand?
A wall is built between America and Mexico
Farmers shift to producing apples
The price decreases from $4/kg to $2.99/kg
The price of bananas increase
13
What would cause the supply curve contract?
Shift of demand curve to the left
Shift of demand curve to the right
Increase in supply
Decrease in demand
14
Which area is a consumer surplus?
Blue
Red
Red + Blue
None of the above
15
What would cause the supply curve of blue suits to shift right?
Decrease in price of blue suits
Increase of price of blue suits
New Technology
Government grants a subsidy to LGS uniform
16
When does a market achieve market equilibrium
When Mr. Burke is happy
When resources are allocated efficiently
Price signals are given to producers
When the supply equals to the demand.

1.1 Supply and Demand Flashcards | StudBud