An increase in the demand is represented by

a shift to the right of the demand curve

Why will scarcity continue to be a problem in the future?

Wants will continue to increase

Why does scarcity exist?

Not sufficient resources to produce all the people wants

the science of production, distribution and consumption

What would cause an increase in the supply of milk?

The introduction of a subsidy to cattle farmers

How would an increase in supply be illustrated?

A shift to the right of the supply curve

studbud

Economics

23 termsStudBud Administration246 plays

eco#quiz

Flashcards23 cardsFPractice quizPHost liveL

Questions 23

Answers

1
Price and supply
indirectly related
equal
directly related
no relationship
2
Equilibrium price is the price that
supply exceeds demand
demand is equal to supply
number of buyers is equal to number of sellers
everything produced is sold
3
Supply of a product rises from 5000 to 7000 due to a rise in price from $4 to $5. PES?
1.4
1.7
1.65
1.6
4
An increase in the demand is represented by
a shift to the left of the demand curve
a movement up the demand curve
a shift to the right of the demand curve
a movement down the demand curve
5
What happens to the willingness to buy a product when the price falls?
decrease
no change
none of the above
increase
6
Why will scarcity continue to be a problem in the future?
The quantity of resources will decrease
Wants will continue to increase
World population will fall
Prices will rise
7
Price falls...demand
rises
falls
equal
no change
8
Which factor is the most mobile?
Labour
Enterprise
Land
Capital
9
The price of a product rises. What will happen to the demand for its compliment?
It will increase
It will extend
It will decrease
It will contract
10
2000 is the new capital in a week. 650 of these worn out. What is the net investment made?
1320
1350
20650
2650
11
Which of the following is a free good?
Recycled papers
Vaccination from the government
Bottled water from the spring
Wind coming from the sea
12
Why does scarcity exist?
Machines wear out with time
Not sufficient resources to produce all the people wants
There is a limit to people's wants
Each year workers tend to produce less than previously
13
How are resources allocated in a market system?
by the government's decision
By directives
by the price mechanism
By directives and price mechanism
14
What is Economics?
the science of production, distribution and consumption
the interaction of buyer and producer
system of production
it refers to an area of production
15
Road is which type of factors of production?
Capital
Enterprise
Land
Labour
16
Factor of production that is used to make decisions and take risk.
Labour
Capital
Enterprise
Land
17
If PED is zero then the degree of elasticity is
Perfectly Inelastic
Perfectly elastic
Unit Elasticity
Elastic
18
If PES is infinity then the degree of PES is
Unity PES
None of the above
Perfectly Elastic
Perfectly Inelastic
19
What would cause an increase in the supply of milk?
The outbreak of a disease affecting cows
The introduction of a subsidy to cattle farmers
An increase in the price of cattle feed
An increase in wages paid to farm workers
20
How would an increase in supply be illustrated?
A shift to the left of the supply curve
A shift to the right of the supply curve
A movement down the supply curve
A movement up the supply curve
21
What is meant by opportunity cost?
The best alternative forgone
The labour used in producing a product
The cost of exploring business opportunities
The cost of the selected item
22
Compute for the PED. Demand contracts from 500 to 400 when price rises from $40 to $42.
6
4
5
3
23
What does a PES of 0.8 indicate
Supply is Perfectly elastic.
Supply is elastic.
Supply is Perfectly inelastic.
Supply is inelastic.

Economics Flashcards | StudBud