An INCREASE in Interest Rates is likely to....

Reduce demand for SOME products

Excess Supply is normally a result of

Market Price being above Equilibrium Price

The Market System is one in which

Prices and Resources are allocated by supply & demand

Indirect Taxes are most likely to ...

Cause a rise in production costs

Demand is best described as

The quantity of goods that will be bought at any given price

Imposing an AD Valorem Tax on a product will ...

Cause a non-parallel shift of the supply curve to the left

A FALL in the price of complementary goods is likely to

Shift the demand curve to the left

Reducing or removing a specific (Unit) Tax on a product is likely to

Cause a parallel shift of the supply curve to the right

Excess demand is normally a result of

Market price being below equilibrium price

A reduction in spending on Marketing and Advertising is likely to ....

Shift the demand curve to the left

Movement along the demand curved occurs when

There is a change in price of the product

Price Elasticity of Supply is best described as

The responsiveness of supply to a change in price

A shift to the right of the supply curve is likely to

Decrease Prices and Increase Quantity Demanded

An increase in population is likely to

Shift the demand curve to the right

A rise in the price of consumer substitutes is likely to...

Shift the demand curve to the right

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Section A: The Market System

17 termsStudBud Administration177 plays

Economics Quiz on Section A of IGCSE Edexcel, covering topics such as Supply, Demand, Equilibrium Price

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Questions 17

Answers

1
An INCREASE in Interest Rates is likely to....
Increase demand for ALL products
Increase demand for SOME products
Reduce demand for SOME products
Reduce demand for ALL products
2
Excess Supply is normally a result of
Market Price being below Equilibrium Price
Market Price being above Equilibrium Price
Government setting maximum prices for certain goods
Market Price being equal to Equilibrium Price
3
The Market System is one in which
Prices and resources are allocated buy suppliers
Resources are allocated by government
Prices and Resources are allocated by supply & demand
Prices are decided by the government
4
Which of the following is NOT a factor which directly affects demand
Income
Population
Production Costs
Interest Rates
5
Indirect Taxes are most likely to ...
Be paid out of peoples salaries
Cause a fall in production costs
Cause a rise in production costs
Cause prices to fall
6
Which of the following is NOT a factor directly affecting supply
Subsidies
Indirect Taxes
Direct Taxes
Changes in Technology
7
Demand is best described as
The responsiveness of demand to a change in income
The quantity of goods that will be bought at any given price
The responsiveness of demand to a change in price
The quantity of goods that will be sold at any given price
8
Imposing an AD Valorem Tax on a product will ...
Cause a parallel shift of the supply curve to the right
Cause a parallel shift of the supply curve to the left
Cause a non-parallel shift of the supply curve to the right
Cause a non-parallel shift of the supply curve to the left
9
A FALL in the price of complementary goods is likely to
Shift the demand curve to the right
Shift the demand curve to the left
Have no effect on the demand curve
Shift the supply curve to the right
10
Reducing or removing a specific (Unit) Tax on a product is likely to
Cause a non-parallel shift of the supply curve to the right
Cause a non-parallel shift of the supply curve to the left
Cause a parallel shift of the supply curve to the left
Cause a parallel shift of the supply curve to the right
11
Excess demand is normally a result of
Market price being equal to equilibrium price
The government setting minimum prices for certain goods
Market price being above equilibrium price
Market price being below equilibrium price
12
A reduction in spending on Marketing and Advertising is likely to ....
Shift the demand curve to the right
Lead to a rise in demand
Shift the supply curve to the right
Shift the demand curve to the left
13
Movement along the demand curved occurs when
There is a change in price of a complementary good
There is a change in price of a substitute good
There is a change in price of the product
There is a change in production costs
14
Price Elasticity of Supply is best described as
The responsiveness of supply to a change in demand
The quantity of goods that will be sold at any given price
The responsiveness of supply to a change in price
The responsiveness of supply to a change in income
15
A shift to the right of the supply curve is likely to
Decrease Prices and Decrease Quantity Demanded
Decrease Prices and Increase Quantity Demanded
Increase Prices and Increase Quantity Demanded
Decrease Prices and Increase Quantity Demanded
16
An increase in population is likely to
Shift the demand curve to the left
Cause interest rates to rise
Lead to a fall in prices
Shift the demand curve to the right
17
A rise in the price of consumer substitutes is likely to...
Shift the supply curve to the right
Shift the supply curve to the left
Shift the demand curve to the right
Shift the demand curve to the left

Section A: The Market System Flashcards | StudBud