Which one is the most likely consequence of an increase in the division of labour in the production of smartphones?

Decrease in the cost per unit of smartphones

The diagram shows a production possibility frontier for an economy. Which of the following is true?

The opportunity cost of producing 180 consumer goods is 20 capital goods

Which one of the following is a possible reason for the trend shown over the period?

Sale of gold reverses by several European Central banks including Cyprus

Which one is the most likely effect of an economy producing more capital goods?

A shift in the production possibility frontier (PPF)

The diagram shows a PPF for an economy which is currently operating at point of X. Which one is true?

Moving to point Y will decrease the rate of economic growth compared to X

Diagram shows weekly production possibilities of two builders. Each allocate half their work time on each. Diagram shows

Both could increase their combined total weekly output with specialisation

Diagram shows the market for vaccinations. With no external costs. Which one of the following is true?

Increase in quantity from free market equilib will lead to net welfare gain

Price of eggs increased by up to 20 pence a dozen in Jan 2012. What is most likely cause of the rise in price?

New regulations which prevent the intensive farming of egg-laying hens

Which is the most likely consequence of an increase in the division of labour in the production of beauty products?

A decrease in the cost per unit of beauty products

Price of tea between October 2012 and February 2013. A possible cause of this fall in the price of tea is

A larger tea harvest than expected

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Economics A Level Quiz

20 termsStudBud Administration220 plays

This Quiz uses Economics A Level Edexcel past papers. All are one mark questions. Some wording is shrunken down to fit into Quiz's word limit, the rest is true to the past paper. https://expert-tuition.co.uk/past-papers/a-level-edexcel-economics-unit-1-questions-by-topic/ Q1 - 6 PPF and Opportunity Cost Q7 - 10 Externalities Q11 - 15 Specialization Q16 - 20 Supply & Demand

Flashcards20 cardsFPractice quizPHost liveL

Questions 20

Answers

1
Which one is the most likely consequence of an increase in the division of labour in the production of smartphones?
Decrease in use of specialised manufacturing equipment
Increase in training costs per worker
Decrease in the cost per unit of smartphones
Decrease in boredom for smartphone workers
2
The diagram shows a production possibility frontier for an economy. Which of the following is true?
The opportunity cost of producing 50 consumer goods is 50 capital goods
There are unemployed resources at V
Future economic growth is likely to be higher at W than X
The opportunity cost of producing 180 consumer goods is 20 capital goods
3
A result in increase in baking costs for producing, supply decreases by 40,000 packets at all prices. New equilibrium is
£2.10
£2.00
£2.30
£2.20
4
Which one is most likely to cause an outward shift in a country’s production possibility frontier? (PPF)
An increase in demand for consumer goods
An increase in unemployment benefits
An increase in immigration
A decrease in unemployed resources
5
Which one of the following is a possible reason for the trend shown over the period?
An increase in the cost of machinery used in South African gold mining
Speculative buying of gold following expectations of rising inflation
Sale of gold reverses by several European Central banks including Cyprus
An increase in demand for gold jewellery in India and China
6
This is the market for bus travel, current equilibrium quantity is Qe & price Pe. At this number of bus journeys there's
A welfare loss of TZR
Market failure
Government failure
An excess supply of Qe Q2
7
Which one is the most likely effect of an economy producing more capital goods?
A shift in the production possibility frontier (PPF)
A reduction in marginal utility
Reduced specialisation of labour
A shift in demand for consumer goods
8
The diagram shows a PPF for an economy which is currently operating at point of X. Which one is true?
Moving to point Y will decrease the rate of economic growth compared to X
Opportunity cost of producing 90 units of consumer goods is 20 capital good
Moving to point Z will increase current living standards
Opportunity cost of increasing the output of capital goods is constant
9
Diagram shows weekly production possibilities of two builders. Each allocate half their work time on each. Diagram shows
Opportunity cost of tiling is lower for Bob than for Wendy
Opportunity cost of decorating a bedroom is the same for both builders
Wendy can decorate more bedrooms & tile more than Bob in a week
Both could increase their combined total weekly output with specialisation
10
Opportunity cost arises because
The price mechanism may lead to a misallocation of resources
Supply may exceed demand
The supply of goods and services is infinite
Resources are scarce
11
Diagram shows the market for vaccinations. With no external costs. Which one of the following is true?
Increase in quantity from free market equilib will lead to net welfare gain
At free market equilib quantity, Marg socialcost exceeds Marg socialbenefit
At free market equilibrium price there is an excess supply of vaccinations
Free market equilibrium quantity exceeds the social optimum quantity
12
Which following measure could a government introduce to achievethe social optimum consumption of nursery school places?
Maximum price of 0P1 per unit
Subsidy of RS per unit
Minimum price of 0P1 per unit
Tax of VT per unit
13
Most likely consequence of an increase in the division of labour in the construction of new houses is an increase in
Output per unit of labour
The range of skills required by each worker
The price of houses
The production cost of each house
14
Price of eggs increased by up to 20 pence a dozen in Jan 2012. What is most likely cause of the rise in price?
A scare that eating eggs might be unhealthy
A decrease in the price of feed for hens
A reduction in tax on eggs
New regulations which prevent the intensive farming of egg-laying hens
15
Which is the most likely consequence of an increase in the division of labour in the production of beauty products?
A shift in demand for beauty products
A decrease in the cost per unit of beauty products
Decreased use of specialised manufacturing equipment
A decrease in the total revenue of beauty product manufacturers
16
A ban on diesel vehicles in city centres will reduce the demand for diesel fuel. This is because
The goods are substitutes
Consumers are irrational
The goods are complements
Consumers expect the price of diesel to rise
17
One disadvantage a sandwich making firm may experience from division of labour on its production line is an increase in
Training costs per worker
The range of workers’ skills
Productivity
Staff turnover
18
Which diagram does the movement from X to Y illustrate the impact on the economy of a natural disaster?
A
D
C
B
19
Price of tea between October 2012 and February 2013. A possible cause of this fall in the price of tea is
An increase in the wages of tea growers
A larger tea harvest than expected
A decrease in the price of sugar
An increase in the price of coffee
20
A working-age graduate earns approximately £10000 more per year than a non-graduate. A uni degree gives a substantial
External benefit
Private benefit
External cost
Social cost

Economics A Level Quiz Flashcards | StudBud

Economics A Level Quiz

20 termsStudBud Administration220 plays

Flashcards20 cardsFPractice quizPHost liveL

Questions 20

Answers

1
Which one is the most likely consequence of an increase in the division of labour in the production of smartphones?
Decrease in use of specialised manufacturing equipment
Increase in training costs per worker
Decrease in the cost per unit of smartphones
Decrease in boredom for smartphone workers
2
The diagram shows a production possibility frontier for an economy. Which of the following is true?
The opportunity cost of producing 50 consumer goods is 50 capital goods
There are unemployed resources at V
Future economic growth is likely to be higher at W than X
The opportunity cost of producing 180 consumer goods is 20 capital goods
3
A result in increase in baking costs for producing, supply decreases by 40,000 packets at all prices. New equilibrium is
£2.10
£2.00
£2.30
£2.20
4
Which one is most likely to cause an outward shift in a country’s production possibility frontier? (PPF)
An increase in demand for consumer goods
An increase in unemployment benefits
An increase in immigration
A decrease in unemployed resources
5
Which one of the following is a possible reason for the trend shown over the period?
An increase in the cost of machinery used in South African gold mining
Speculative buying of gold following expectations of rising inflation
Sale of gold reverses by several European Central banks including Cyprus
An increase in demand for gold jewellery in India and China
6
This is the market for bus travel, current equilibrium quantity is Qe & price Pe. At this number of bus journeys there's
A welfare loss of TZR
Market failure
Government failure
An excess supply of Qe Q2
7
Which one is the most likely effect of an economy producing more capital goods?
A shift in the production possibility frontier (PPF)
A reduction in marginal utility
Reduced specialisation of labour
A shift in demand for consumer goods
8
The diagram shows a PPF for an economy which is currently operating at point of X. Which one is true?
Moving to point Y will decrease the rate of economic growth compared to X
Opportunity cost of producing 90 units of consumer goods is 20 capital good
Moving to point Z will increase current living standards
Opportunity cost of increasing the output of capital goods is constant
9
Diagram shows weekly production possibilities of two builders. Each allocate half their work time on each. Diagram shows
Opportunity cost of tiling is lower for Bob than for Wendy
Opportunity cost of decorating a bedroom is the same for both builders
Wendy can decorate more bedrooms & tile more than Bob in a week
Both could increase their combined total weekly output with specialisation
10
Opportunity cost arises because
The price mechanism may lead to a misallocation of resources
Supply may exceed demand
The supply of goods and services is infinite
Resources are scarce
11
Diagram shows the market for vaccinations. With no external costs. Which one of the following is true?
Increase in quantity from free market equilib will lead to net welfare gain
At free market equilib quantity, Marg socialcost exceeds Marg socialbenefit
At free market equilibrium price there is an excess supply of vaccinations
Free market equilibrium quantity exceeds the social optimum quantity
12
Which following measure could a government introduce to achievethe social optimum consumption of nursery school places?
Maximum price of 0P1 per unit
Subsidy of RS per unit
Minimum price of 0P1 per unit
Tax of VT per unit
13
Most likely consequence of an increase in the division of labour in the construction of new houses is an increase in
Output per unit of labour
The range of skills required by each worker
The price of houses
The production cost of each house
14
Price of eggs increased by up to 20 pence a dozen in Jan 2012. What is most likely cause of the rise in price?
A scare that eating eggs might be unhealthy
A decrease in the price of feed for hens
A reduction in tax on eggs
New regulations which prevent the intensive farming of egg-laying hens
15
Which is the most likely consequence of an increase in the division of labour in the production of beauty products?
A shift in demand for beauty products
A decrease in the cost per unit of beauty products
Decreased use of specialised manufacturing equipment
A decrease in the total revenue of beauty product manufacturers
16
A ban on diesel vehicles in city centres will reduce the demand for diesel fuel. This is because
The goods are substitutes
Consumers are irrational
The goods are complements
Consumers expect the price of diesel to rise
17
One disadvantage a sandwich making firm may experience from division of labour on its production line is an increase in
Training costs per worker
The range of workers’ skills
Productivity
Staff turnover
18
Which diagram does the movement from X to Y illustrate the impact on the economy of a natural disaster?
A
D
C
B
19
Price of tea between October 2012 and February 2013. A possible cause of this fall in the price of tea is
An increase in the wages of tea growers
A larger tea harvest than expected
A decrease in the price of sugar
An increase in the price of coffee
20
A working-age graduate earns approximately £10000 more per year than a non-graduate. A uni degree gives a substantial
External benefit
Private benefit
External cost
Social cost