Markets

Question 1

Which of the following statement is true?

Accepted Answer

Perfect Competition provides products that are homogeneous

Question 2

What is the primary role of prices in a market economy in general?

Accepted Answer

It help acts as incentives for producers., It acts as rationing device in enabling markets to clear

Question 3

A shift to the right of the demand curve with supply unchanged could lead to

Accepted Answer

An extension in supply and a rise in price

Question 4

which of the following is a negative externality caused by a new housing development?

Accepted Answer

An increase in traffic congestion

Question 5

If a a good is price inelastic, then which of the following is true.

Accepted Answer

Change in quantity supplied in less than in the price

Question 6

If the price of cigarette (Habit forming) increase what would be the most likely effect?

Accepted Answer

A contraction in demand

Question 7

What is the most likely market structure for public utility providers?

Accepted Answer

Monopoly

Question 8

Which of the following factors affects supply?

Accepted Answer

The number of firms in the industry, The price of the factors of production, The expectation of producers, Seasonal influences

Question 9

If the price of a general brand of laundry detergent decreases, what would be the most likely

Accepted Answer

A contraction in demand.

Question 10

Rate the accuracy of using the 'total outlay method' to measure the price elasticity of supply

Accepted Answer

Not Valid

Question 11

If the price of apple decreases, what would be the mostly likely effect?

Accepted Answer

A extension in demand for apple.

Question 12

Prices determined in factor markets are

Accepted Answer

Factor Prices

Question 13

How is an extension and contraction in supply represented in supply curve?

Accepted Answer

Movements along the supply curve

Question 14

Using the total outlay method, in which of the following situation that demand is price elastic

Accepted Answer

Total outlay moves the opposite direction as price

Question 15

What does the law of supply state?

Accepted Answer

As price increases, the quantity supplied increases, Quantity supplied is a positive function to its price

Question 16

Which of the following definition for 'market' is the most relevant one?

Accepted Answer

where buyers and sellers are in contact for exchange purpose

Question 17

In a market economy, such as Australia, market discriminate against which of following groups?

Accepted Answer

People who has the least amount of market income.

Question 18

If the government establishes a price floor for a good

Accepted Answer

There will be a surplus of the good , has to be stockpiled

Question 19

What does the price elasticity of demand measure?

Accepted Answer

The responsiveness of the quantity demanded to price change.

Question 20

What does the phrase 'ceteris paribus' mean?

Accepted Answer

Everything except one thing stay the smae

Questions 20