Chapter 1
Factors of production:
A) Land, Labor, Capital, Management.
B) Demand, Supply, and Equilibrium
C) Goods, Services, and Resources
What are Land, Labour, Capital, Management?
What is the term for the place where buyers and sellers come together to carry out economic transactions?
A) Market
B) Exchange center
C) Economic hub
What is a market?
What term describes the state where the quantity demanded equals the quantity supplied in a market, resulting in a market-clearing price?
A) What is equilibrium?
B) What is the factor market?
C) What is the stock market?
What is equilibrium?
What is the measure of how much the demand for a product changes when there is a change in one of the factors that determine demand?
A) What is demand?
B) What is elasticity of demand?
C) What is inelasticity of demand?
What is elasticity of demand?
What type of tax is imposed upon expenditure and shifts the supply curve vertically upwards by the amount of the tax?
A) What is tax?
B) What are taxes and subsidies?
C) What is an indirect tax?
What is an indirect tax?
What term describes the measures of usefulness and pleasure derived from consuming goods and services?
A) Marginal utility
B) Consumer surplus
C) Price elasticity of demand
What is marginal utility?
What does supply represent in economics?
A) Consumer demand
B) Willgness and ability of producers
C) Market equilibrium
What is the willingness and ability of producers?
When does excess demand occur in a market?
A) What is when the quantity demanded exceeds the quantity supplied at a given price?
B) What is when the quantity supplied exceeds the quantity demanded at a given price?
C) What is a surplus?
What is a surplus?
When calculating price elasticity of demand, what formula is used?
A) What is the change in quantity demanded by the percentage change in price?
B) What is the percentage change in quantity demanded divided by the percentage change in price?
C) What is change in price?
What is the percentage change in quantity demanded divided by the percentage change in price?
What are the two types of indirect taxes mentioned in the text?
A) What are subsidies and taxes?
B) What are specific tax and percentage tax?
C) What are taxes?
What are specific tax and percentage tax?
This type of development meets present needs without compromising future generations' ability to meet their needs.
A) Sustainable development
B) Economic growth
C) Technological advancement
What is sustainable development?
What term refers to the financial means consumers must have in order to buy a product?
A) Consumer preference
B) Market demand
C) Effective demand
What is effective demand?
What causes a shift in the demand or supply curve, leading to a new equilibrium point in the market?
A) What is changes of demand?
B) What is changes in determinants of demand or supply, other than price?
C) What is changes of demand and supply when the consumer changes their mind?
What is changes in determinants of demand or supply, other than price?
When calculating price elasticity of demand, what formula is used?
A) What is demand?
B) What is supply?
C) What is elastic demand?
What is elastic demand?
What are the consequences of maximum price controls on the market?
A) What are shortages?
B) What are markets?
C) What are potential shortages, emergence of black markets, and queues in shops?
What are potential shortages, emergence of black markets, and queues in shops?
Economic development measures welfare and well-being, including factors like education, health, and social indicators. What concept does it refer to?
A) Gross Domestic Product (GDP)
B) Human Development Index (HDI)
C) Consumer Price Index (CPI)
What is the Human Developement Index?
What term describes the relationship between the price of a product and the quantity supplied over time, often represented graphically?
A) Market equilibrium
B) Demand curve
C) Supply curve
What is a supply curve?
What economic concept guides producers to allocate resources where demand is highest, maximizing profits without central planning?
A) What is the PPC?
B) What is the price mechanism?
C) What is the demand flow?
What is the price mechanism?
Why do governments need to consider price elasticity of demand when imposing taxes on products?
A) What is taxes?
B) What is to understand how different things change based on what a customer wants?
C) What is to understand how taxes might affect the quantity demanded and employment in the industry?
What is to understand how taxes might affect the quantity demanded and employment in the industry?
What role does elasticity of demand and supply play in assessing the incidence of an indirect tax?
A) What are tax burdens?
B) What is it determines how much of the tax burden is borne by consumers and producers?
C) What are taxes?
What is it determines how much of the tax burden is borne by consumers and producers?
What assumption do economists make to simplify their models by holding other variables constant while analyzing the effect of one variable on another?
A) Ceteris paribus
B) Economic equilibrium
C) Marginal utility
What is ceteris paribus?
In economics, what mechanisms are employed to alter the market equilibrium by either increasing or decreasing the costs of goods and services for consumers and producers?
A) Monetary policy
B) Direct taxes
C) Indirect taxes and subsidies
What are indirect taxes and subsidies?
When does excess supply occur in a market?
A) When the quantity supplied exceeds the quantity demanded at a given price, resulting in a surplus.
B) When the quantity supplied exceeds the quantity demanded at a given price, resulting in an underplus.
C) When the quantity supplied doesn't exceed the quantity demanded at a given price, resulting in a surplus.
What is when the quantity supplied exceeds the quantity demanded at a given price, resulting in a surplus?
What is the value of price elasticity of demand if demand is unit elastic?
A) What is two?
B) What is one?
C) What is one half?
What is one?
How does the imposition of a subsidy affect the equilibrium price and quantity in a market?
A) What is a lower price?
B) What is a lower price and higher quantity bought and sold?
C) What is a higher price and a lower quantity?
What is a lower price and higher quantity bought and sold?