Which of the following is a positive statement?

Rising average temps will lead to rising demand for suncream

Which of these would shift LRAS to the right

Free govt provided training courses for business

Which is the best definition of opportunity cost?

The cost of the next best alternative forgone

What are fully employed resources?

All resources that are fully used for production

the cost of an activity to society as a whole

A negative production externality occurs when...

Marginal Social Cost is higher than Marginal Private Cost

A PPF diagram shows...?

the maximum productive potential of an economy

Who is mainly responsible for controlling fiscal policy in the UK?

The Chancellor of the Exchequer

Which of the following is a normative economic statement?

Unemployment is more harmful than inflation

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AS Economics Quiz

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A recap of #edexcel #AS #Economics

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Questions 20

Answers

1
Which is likely to happen if there is increased demand in economy operating close to capacity?
inflation
deflation
unemployment
disinflation
2
Which of the following is a positive statement?
inflation is one of the most serious economic problems
Resources are best allocated allowing for govt intervention
Rising average temps will lead to rising demand for suncream
The govt is right to introduce a ban on smoking
3
Which of these would shift LRAS to the right
A rise in the minimum wage
Increase in corporation tax
Free govt provided training courses for business
A rise in income tax
4
Which is the best definition of opportunity cost?
The benefits of a cost for something else
The cost of the next best alternative forgone
The cost of what you have just bought
The cost of the worst alternative forgone
5
What are fully employed resources?
All resources that are used for production
All resources that are fully used for production
All resources that are gathered for production
All resources that are leftover
6
Which of the following best describes why a PPF would be curved and not a straight line?
Factors of Production
Scarcity of Resources
Law of diminishing returns
Opportunity Cost
7
social cost is....
positive externality
the benefits of an activity to society as a whole
the cost of an activity to society as a whole
The same as opportunity cost
8
A negative production externality occurs when...
Marginal Social Cost is higher than Marginal Private Cost
Marginal Social Cost is lower than Marginal Private Cost
The opportunity cost is pollution
Marginal Social Cost equals Marginal Private Cost
9
Which of these should lead to an increase in consumption?
increase in income tax
Abolish national minimum wage
fall in interest rates
rise in interest rates
10
Over or under production of goods in an economy is...?
partial market failure
information gap
missing market
Total market failure
11
A PPF diagram shows...?
what a normative statement is
The change in interest rates in an economy
the maximum productive potential of an economy
Supply and demand in an economy
12
A technological advancement leading to economic growth can be shown on a PPF by...?
An outward shift in the curve
An inward shift in the curve
It cannot be shown on the PPF curve
A movement along the curve
13
Which of the following is not a factor of production?
Capital
Scarcity
Labour
Enterprise
14
The bank of England's MAIN responsibility is to control which objective?
Sustained Economic Growth
Balance of Payments Surplus
Low and stable inflation
Low unemployment
15
Which of these would cause AD to shift to the right?
Net imports rising
Net exports rising
Government reducing spending
Consumption falling
16
Who is mainly responsible for controlling fiscal policy in the UK?
The bank of England
Financial Ombudsman Service
the Queen
The Chancellor of the Exchequer
17
Which of the following is a renewable resource?
Coal
fish stocks
Gold
Crude oil
18
What does the term ceteris paribus mean?
In the long term
The basic economic problem
Opportunity Cost
All other things being equal
19
Which of these is most likely in a command economy?
Private health care
Entrepreneurship
Private banks
State ownership of banks
20
Which of the following is a normative economic statement?
Inc price of petrol will lead to increase in cycling to work
increased incomes will lead to rising demand for sports cars
lower interest rates will increase house prices
Unemployment is more harmful than inflation

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