Which of the following would cause an inward shift in a PPF

Reduction in the size of the workforce

Which of the following could account for a low price elasticity of supply?

The machinery required for the product is fully utilised.

Why would a person switch suppliers from Company X to Company Y when they are cheaper?

Because she is behaving rationally

Which two of the following are true about merit goods

Is considered to be beneficial to society, is a good provided by the state

The supply curve of potatoes will shift to the left if

The cost of fertiliser increases

The demand curve for iPads will shift to the right if there is

An increase in real incomes of consumers

A business that can set the price they sell at

Where does producer surplus show on a graph?

The area above the supply curve and below the equilibrium

Consumer surplus is the difference between?

what customers are willing to pay and what they pay

Which would make it more difficult for a firm to adopt a greater degree of specialisation?

Production of customised products for customers.

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Economics theme 1

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Edexcel Economics A

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Questions 30

Answers

1
An increase in specialisation and the division of labour is most likely to?
Increase the cost of training an individual worker
Reduce the amount of machinery used in production
Reduce total output
Increase output per worker
2
Which of the following is not a disadvantage of free economies?
Inequality
Monopolies
Competition
Externalities
3
A rational consumer will
Maximise satisfaction
Maximise costs of making a decision
Minimise profits
Minimise current consumption
4
What type of statement is: GDP of Greece fell by over 25% between 2008 and 2014?
Positive
Normative
5
Which of the following would cause an inward shift in a PPF
Increase in productivity
Improvements in education
Reduction in the size of the workforce
Increase in the size of the workforce
6
An example of a merit good would be
Cigarettes
Fast food
Heroin
Education in schools
7
If YED is positive the good is?
The good is an inferior good
The good is a normal good
8
One function of the price mechanism in a free market economy is to:
Reduce consumer surplus
Ration scarce goods
Stabilise prices
Enable the government to set prices
9
Which of the following could account for a low price elasticity of supply?
The machinery required for the product is fully utilised.
There a no close substitutes for the product
Product is a heavily advertised brand of coffee
Product is addictive
10
Which of the following is not a characteristic of perfect competition
There is an infinite number of suppliers and consumers
There are no barriers to entry and no barrier to exit
Products are differentiated
Consumers have perfect information
11
What type of good is a laptop used by a company director?
Consumer
Capital
12
Why would a person switch suppliers from Company X to Company Y when they are cheaper?
Because they believe company X will reduce the prices later
Because she can't see the benefit of switching suppliers
Because she is behaving rationally
Because they believe company Y's prices will rise.
13
Which factor of production is machinery used in car production
Labour
Capital
Land
Enterprise
14
Which two of the following are true about merit goods
Is considered to be detrimental to society
is a good provided by the private sector
Is considered to be beneficial to society
is a good provided by the state
15
Law of diminishing marginal utility implies that, as more or a product is consumed by a person
Total utility will always be negative
Marginal utility will increase
Total utility will increase at an increasing rate
Marginal utility will decrease
16
Which factor of production are copper deposits in Zambia?
Enterprise
Land
Labour
Capital
17
The supply curve of potatoes will shift to the left if
New machinery enables more potatoes to be produced per acre
There is an increase in advertising of potatoes
The cost of fertiliser increases
Price of rice, a substitute for potatoes, increase in price
18
The demand curve for iPads will shift to the right if there is
An increase in the productivity of workers producing iPads.
An increase in costs of production
A rise in VAT on iPads
An increase in real incomes of consumers
19
Price maker is
A business that has no power to control the price it charges
A business that can set the price they sell at
A business that imposes taxes on competitors
A business the government subsidies
20
What type good is a curry eaten by Joe for lunch?
Capital
Consumer
21
Which of the following an outward shift in the PPF?
Decrease in natural resources
Advances in technology
Recession
Reduction in the size of workforce
22
What type of statement is: Taxes on bankers should be increased
Normative
Positive
23
Which of the following does not occur in a competitive market?
consumers aim to improve their standard of living
There are a large number of buyers and sellers
Consumers and producers act rationally
There is one dominant supplier
24
If XED is negative the good is?
A substitute
A complement
25
What is the formula for profit
Total revenue - Total fixed costs
Total revenue - Total variable costs
Total revenue - Total costs
Total costs - Total revenue
26
Which of the following is not a function of money?
Store of value
Means of deferred payments
Medium of exchange
Used in the mixed economy
27
Where does producer surplus show on a graph?
The area below the demand curve and above the equilibrium
The area above the supply curve and below the equilibrium
28
Consumer surplus is the difference between?
the supply levels following a price increase
what suppliers are happy to get for a good & what they get
what customers are willing to pay and what they pay
The demand levels following a price increase
29
Which would make it more difficult for a firm to adopt a greater degree of specialisation?
Failing costs of transporting goods to consumers
Production of customised products for customers.
Increasing sales
New machinery sales
30
Which of the following does not affect the PES of a product
Cost of switching suppliers
Available stock
Time
Production costs

Economics theme 1 Flashcards | StudBud