Features of a mixed economy

there is both a private sector and a public sector

What is meant by a contraction in demand?

a reduction in demand due to a rise in the price

What is meant by equilibrium price?

the price where qty demanded equals quantity supplied

Which event would cause the demand curve for air travel to shift to the left?

a rise in the price of foreign holidays

Which feature is a characteristic of a market economy?

producers respond to changes in consumer demand

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IGCSE Economics - Unit 2 Allocation of resources

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1
Features of a mixed economy
both an agriculatural and manufacturing sector
there is both a private sector and a public sector
both capital and consumer goods are produced
both luxuries and necessities are produced
2
A price rise from $50 to $60 causes demand to fall from 800 to 760. What is the PED?
0.5
2
4
0.25
3
Why does travel by a private jet have elastic demand?
it has to be arranged some time in advance
it is a necessity
it is a luxury form of travel
it has no close substitutes
4
What is meant by a contraction in demand?
a reduction in demand due to a fall in income
a rise in demand due to a fall in the price of a complement
a rise in demand due to a rise in the price of a substitute
a reduction in demand due to a rise in the price
5
The price of a bar of chocolate increases by 4% and supply changes by 3%. PES is
>1
inelastic
elastic
perfectly elastic
6
What is meant by equilibrium price?
Where the number of buyers equals the number of sellers
the price where qty demanded equals quantity supplied
the lowest possible price for a product
the most profitable price for a product
7
Which event would cause the demand curve for air travel to shift to the left?
a rise in the size of the population
a fall in the safety of sea travel
A fall in the cost of air fuel
a rise in the price of foreign holidays
8
Which advantage is a charactoristic of a pure market economy?
efficiency
an even distribution of income
the encouragement of the consumption of merit goods
the production of public goods
9
Which of the following would cause an increase in the demand for petrol?
an increase on the tax on petrol
an increase in population size
an increase in the concern for the environment
a decrease in disposable income
10
Which feature is a characteristic of a market economy?
resources are allocated according to need
government planning plays a key role
producers respond to changes in consumer demand
there is always full employment

IGCSE Economics - Unit 2 Allocation of resources Flashcards | StudBud