NCEA Level 1 ECO - Exam Revision for 1.3 Supply & 1.4 Market

Question 1

An indirect tax will

Accepted Answer

Decrease supply

Question 2

When a maximum price creates a shortage on a good the government can

Accepted Answer

Ration the good

Question 3

A maximum price set below the equilibrium creates

Accepted Answer

Shortage

Question 4

Consumers bid up the price when there is a

Accepted Answer

Shortage

Question 5

What is a ceiling price?

Accepted Answer

A maximum price

Question 6

What is a subsidy?

Accepted Answer

a payment by the government to farmers

Question 7

The Law of Supply states that as the price increases, _______________________________

Accepted Answer

Quantity supplied increases

Question 8

Firms will accept lower prices when...

Accepted Answer

there is a surplus

Question 9

Why might a government impose a maximum price on a good or service?

Accepted Answer

Make good or service more affordable

Question 10

Which is NOT a Factor Affecting Supply?

Accepted Answer

Consumer Income

Question 11

The Law of Supply is from the perspective of the ______________________?

Accepted Answer

Seller

Question 12

What is happening on the graph?

Accepted Answer

increase in supply

Question 13

A government is more likely to pay a subsidy to a firm producing

Accepted Answer

Education

Question 14

Excess demand is most commonly known as

Accepted Answer

Shortage

Question 15

A government is more likely to set a tax on

Accepted Answer

demerit goods

Question 16

The Law of Supply answers the question, "How much will I _____________?"

Accepted Answer

Sell

Question 17

A subsidy can be expensive for a government to maintain

Accepted Answer

True

Question 18

A minimum price is also known as a price floor

Accepted Answer

True

Question 19

Horizontal sum of all firm's supply curves at each price

Accepted Answer

Market supply

Question 20

To calculate the value of sales in the market

Accepted Answer

P x Q

Question 21

A maximum or minimum price is a

Accepted Answer

Price control

Question 22

The price at which quantity demanded equals quantity supplied

Accepted Answer

Equilibrium

Question 23

The impact of a subsidy on firms is

Accepted Answer

Costs of production decrease

Question 24

A minimum price protects

Accepted Answer

Producers

Question 25

Where the supply curve and demand curve intersect

Accepted Answer

Equilibrium

NCEA Level 1 ECO - Exam Revision for 1.3 Supply & 1.4 Market

Questions 25

NCEA Level 1 ECO - Exam Revision for 1.3 Supply & 1.4 Market

Questions 25