A change in price causes a larger change in demand

Move In opposite directions, supply goes up demand goes down

Consumer response to price change.

leads to either under- or over-allocation of resources

at higher prices, buyers will demand less of an economic good.

Which statement is true?

Economic goods have an opportunity cost & free goods do not

One where price mechanism dictates prices and output

All wages and non-wages factors affecting choice of job

What is a commercial bank

A bank that offers financial services to the public and to businesses

How do small firms compete ?

targeting niche markets, Product differentiation and USP's

Advantages of small firms include:

There is increased competition for larger firms

A graph showing what price people will buy a specific product at and how much can the company offer the product for

Graph showing supply and demand curve

Price elasticity of demand measures...

how sensitive consumers are to a change in price

What is an external economies of scale?

Increase of labor, Shared infrastructure

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EOYY9Econ

30 termsStudBud Administration12 plays

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Questions 30

Answers

1
Why does diseconomies of scale happen?
Technical advancements
Fall in technology
Inflation
Too many employees
2
Elasticity of demand
A change in price causes a larger change in demand
A change in production causes a larger change in demand
A change in consumption causes a larger change in demand
A change in demand causes a larger change in profits
3
Supply and Demand
None of these
Move In the same direction, supply goes up demand goes up
Move In opposite directions, supply goes up demand goes down
Do not affect each other
4
Merit goods are
Overconsumed
Not produced or consumed because of the free-rider problem
Consumed in optimal quantities
Underconsumed
5
Elasticity of Demand
Consumer response to price change.
Consumers buy more of a good and service
Get the benefit of use of a public good or service
6
Who dictates demand in a free market economy?
Producer
Consumer
Seller
All answers are correct
7
They cause harmful effects to third parties /negative side effects theyresult in overconsumption and overproduction
Private benefits
External costs
Private costs
Social costs
8
Central banks can fight inflation by lowering interest rates.
False
True
9
The public sector is funded by ...
Shareholders
The Stock Market
Taxes
Profits
10
One of the following goods are merit goods
Defence
Train
Library
House
11
A lower rate of interest is therefore charged to bigger and more trusted businesses than small businesses
Financial Economies of Scale
Purchasing economies of scale
Risk bearing economies
Technical economies of scale
12
A Market Failure..
is a common tragedy
appears where demand does not equal supply
leads to either under- or over-allocation of resources
is a failure in the market
13
Supply and Demand
at higher prices, buyers will demand less of an economic good.
not being able to have all the goods and services one wants.
consumer preferences determine the production of goods and services.
The second-best alternative that must be given up when making a decision
14
Which statement is true?
Neither one has an opportunity cost
Economic goods have an opportunity cost & free goods do not
Free goods & economic goods have opportunity cost
Economic goods do not have an opportunity cost & free goods do not
15
A free market is...
One without any government imposed legal restriction
One without tax on income or sales
One where price mechanism dictates prices and output
One that always operates in society's best interests
16
What function does a central bank fulfil?
It offers facilities to individuals.
It operates deposit accounts.
It raises taxation.
It issues currency.
17
It has a private sector / private sector firms and a public sector / public sector firms /government intervention
Planned Market Economy
Mixed Market
Free Market Economy
Perfect competition
18
net advantages are
any additional skill needed for a job
Fringe benefits
All wages and non-wages factors affecting choice of job
Non-wage factors
19
Market failure can cause
Negative externalities
Minimum price to prevent further failure
Inward shift of AD
Price level to increase
20
What is a commercial bank
A bank that creates commercials
A bank that offers financial services to other banks
A bank that offers financial services to the public and to businesses
A bank that offers financial services to the government organisations
21
A partnership is a public sector organisation
False
True
22
Unfortunately, many small firms are taken _______ by larger ones.
after
over
out
up
23
How do small firms compete ?
targeting niche markets
Increasing prices
Increasing production
Product differentiation and USP's
24
Advantages of small firms include:
Owners find it difficult to source finance
The business lacks expertise
Resources are often unavailable
There is increased competition for larger firms
25
A graph showing what price people will buy a specific product at and how much can the company offer the product for
Graph showing supply
Graph showing supply and demand curve
Graph showing elasticity
Graph showing the PPC
26
Price elasticity of demand measures...
how sensitive consumers are to a change in price
buyers ability to switch
availability of substitutes
buyers knowledge of the product
27
What is an external economies of scale?
Increase of labor
More consumers
Shared infrastructure
Trade barriers are lowered
28
In a free market economy, people can
do the job the government tells you to do.
only buy and sell what they are told.
buy food.
make money however they like.
29
Supply and Demand
dictates the clearance price in most markets
dictates the equilibrium price
dictates the amount that a buyer produces
is a marketing concept that economists borrow
30
A public sector is...
a sole proprietor or partnership
owned by the government
owned by individuals
owned by a group of people

EOYY9Econ Flashcards | StudBud