The opportunity cost is..

The next best alternative given up

The definition of a variable cost is...

Costs that vary as more products are made

Compares a country/company to itself

caused by the Fundamental Economic Problem, Unlimited wants, limited resources, when supply cannot keep up with demand, When we lack the resources to satisfy demand

Often fall at low level outputs

Which of these goods is NOT a form of Capital?

Plastic bags at the Supermarkets

vulnerable to depreciation and needs replacing, used but not used up in production

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AQA Microeconomics Unit 1 December review

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Summary for AS-level (Year 12) Microeconomics (Unit 1 for AQA). Covers externalities, Avg cost, Factors of production, Prices, and housing.

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Questions 20

Answers

1
The opportunity cost is..
The choice of equal utility
All better alternatives given up
The next best alternative given up
The price of the next best alternative given up
2
Price and profit are critical...
...government concerns
...for barter economies
...signals
...for government allocation decisions
3
When I increased the price of my buns by 10%, the Q demanded falls by 20%, what is the PeD?
-2
-0.2
-0.5
-20
4
The definition of a variable cost is...
Short-run Costs
Costs that vary over time
Costs for factors that only last a short time
Costs that vary as more products are made
5
An Index number...
Can compare levels but not changes
Compares a country/company to itself
Is basically a percentage
Can't be used in comparing countries
6
Which of these would NOT characterise the housing market?
Inelastic supply
Excess demand
High Barriers to Entry
Excess supply
7
A good exhibiting negative externalities must...
restricted on its supply
under-consumed
be taxed
be overconsumed
8
Productivity is...
a ratio
required for low unit-cost
a factor of production
the same as output per worker
9
Which of these does not affect the supply curve in S&D diagrams
Costs of production
Opportunity cost
Demand
Market price
10
Curve A is likely the...
Average Fixed Cost curve
Average Variable cost curve
Marginal Cost curve
Average total cost curve
11
Which of these is NOT an economic agent?
Governments
Consumers
Citizens
Firms
12
Average fixed costs...
increases as output increases
Decrease as output increases
Always fall
sometimes fall
13
Scarcity is when
caused by the Fundamental Economic Problem
Unlimited wants, limited resources
when supply cannot keep up with demand
When we lack the resources to satisfy demand
14
Average costs...
Often fall at low level outputs
Increase over time
are greater than average total cost
always fall as output increases
15
Curve B is likely the...
Average Variable cost curve
Average Fixed Cost curve
Marginal Cost curve
Average total cost curve
16
Which of these goods is NOT a form of Capital?
Desks
Petrol Station
Plastic bags at the Supermarkets
Pencils
17
Curve D is likely the...
Average Fixed Cost curve
Average Variable cost curve
Marginal Cost curve
Average total cost curve
18
When the demand curve shifts outwards, the first thing that occurs is...
a price rise
demand and supply equalise
Producers make more
Excess demand
19
For a chocolate lover, the smell of chocolate could be considered a...
an External cost
negative externality
Positive externality
Nuisance
20
Capital is...
more important than labour
vulnerable to depreciation and needs replacing
always expensive
used but not used up in production

AQA Microeconomics Unit 1 December review Flashcards | StudBud