Opportunity cost is...

The next best alternative forgone when a choice is made

Microeconomics is the study of...

The behaviour of individual consumers and firms in different markets

DOUBLE POINTS: Competition is desirable because...

It improves living standards, It leads to allocative efficiency, Consumers benefit for higher quality products and services, It improves international competitiveness

The Law Of Demand says that when prices increase...

The quantity demanded will decrease

The Circular Flow Model describes...

The flow of goods and services between households, firms, and government

Which of the following is not a characteristic of a planned economy?

There is a high degree of consumer choice

What does consumer sovereignty mean?

Consumer preferences determine the production of goods and services

Marginal utility is...

The additional satisfaction gained from consuming one more unit of a G/S

The Law Of Supply says that when prices decrease...

The quantity supplied will decrease

The basic economic problem deals with...

Unlimited wants and limited resources

The basic economic problem deals with...

Unlimited wants and limited resources

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U1 VCE Economics: Welcome to Term 2 2024

20 termsStudBud Administration14 plays

A review of the key concepts we learned about in Term 1 (covering AOS 1 and AOS 2).

Flashcards20 cardsFPractice quizPHost liveL

Questions 20

Answers

1
Opportunity cost is...
The explicit cost of an economic decision
The next best alternative forgone when a choice is made
The monetary cost of an economic decision
The total cost of producing a good or service
2
Microeconomics is the study of...
The behaviour of individual consumers and firms in different markets
International trade and exchange rates
How economies perform in relation to key economic indicators
Government policies and their impact on the economy
3
When governments promote competition it usually leads to increases in efficiency and an improvement in living standards.
False
True
4
DOUBLE POINTS: Competition is desirable because...
It improves living standards
It leads to allocative efficiency
Consumers benefit for higher quality products and services
It improves international competitiveness
5
The Law Of Demand says that when prices increase...
The quantity supplied will decrease
The quantity demanded will decrease
The quantity supplied will increase
The quantity demanded will increase
6
DOUBLE POINTS: Which of the follow pairs can be described as complimentary products?
Wine and drinking glasses
Apple iPhone and Samsung Galaxy
Butter and margarine
Pens and pencils
7
Identify the odd one out.
The provision of public sports facilities.
The provision of a free education.
How many cars a family owns.
The provision of free healthcare.
8
The Circular Flow Model describes...
The impact of government intervention in the economy
The interaction between supply and demand in the market
The flow of goods and services between households, firms, and government
How firms set prices and output levels in competitive markets
9
Identify the odd one out.
What and how much to produce
How to produce
How much to charge for produce
For whom to produce
10
What type of economic system exists in Australia?
Mixed
Market
Planned
Traditional
11
Which of the following is not a characteristic of a planned economy?
Monopolies are commonplace
All resources are owned by the government
There is a high degree of consumer choice
Government decides how all resources are allocated
12
What does consumer sovereignty mean?
The power of consumers to set prices in the market
Consumer preferences determine the production of goods and services
The government's control over consumer spending
The influence of advertising on consumer behavior
13
Marginal utility is...
The total cost incurred in producing one additional unit of a G/S
The total satisfaction derived from consuming a G/S
The additional satisfaction gained from consuming the first unit of a G/S
The additional satisfaction gained from consuming one more unit of a G/S
14
The Law Of Supply says that when prices decrease...
The quantity supplied will increase
The quantity demanded will decrease
The quantity demanded will increase
The quantity supplied will decrease
15
The basic economic problem deals with...
Limited wants and unlimited resources
Limited wants and limited resources
Unlimited wants and limited resources
Unlimited wants and unlimited resources
16
The basic economic problem deals with...
Unlimited wants and limited resources
Unlimited wants and unlimited resources
Limited wants and unlimited resources
Limited wants and limited resources
17
Identify the odd one out.
Capital
Land
Labour
Money
18
Which of the following is NOT a non-price factor that influences demand?
Interest rates
Population
Increased efficiency
Seasonality
19
Which of the following is NOT a non-price factor that influences supply?
Climate effects
Consumer confidence
Cost of resources
Increased efficiency
20
Which of the following is not an assumption we make about perfectly competitive markets?
High barriers to entry
Access to perfect knowledge
Firms are profit maximisers
Limited/No government intervention

U1 VCE Economics: Welcome to Term 2 2024 Flashcards | StudBud