multiple choices

Question 1

scarcity means

Answer 1

Individuals must make choices

Question 2

reason to subsides social housing

Answer 2

Free market makes inequalities of wealth

Question 3

when money is used for exchange

Answer 3

trade will increase

Question 4

benefits of private goods in market failure

Answer 4

social exceeds private

Question 5

misallocation of recourses in monopoly occurs when

Answer 5

prices are high than under competitors

Question 6

immobility of a factor of production- workers unwilling to

Answer 6

change jobs

Question 7

market failure arises when

Answer 7

Positive externalities of consumption aren’t taken into account

Question 8

what is a factor of production

Answer 8

land owned by firms

Question 9

what is an example of government failure

Answer 9

overproviding merit good

Question 10

source of monopoly power

Answer 10

granting of patent to pharmaceutical company

Question 11

maximising economic welfare

Answer 11

highest privates

Question 12

demerit good curve

Answer 12

mpb on the right

Question 13

negative cross elasticity of demand for 2 goods

Answer 13

complementary

Question 14

s1-s2

Answer 14

fall in wage of agricultural workers

Question 15

merit goods are underprovided because

Answer 15

social benefits exceed private benefits

Question 16

if index is the same

Answer 16

labour of productivity is identical

Question 17

price elasticity of supply is effected by

Answer 17

stocks available

Question 18

to achieve efficient level of availability government should

Answer 18

provide a subsidy

Question 19

purpose of economic activity is to

Answer 19

satisfy needs and wants

Question 20

to calculate price elasticity of supply

Answer 20

should be multiplied by price

Question 21

the equilibrium price in a market is

Answer 21

the market clearing price

Question 22

a market failure arises whenever firms

Answer 22

create externalities

Question 23

supply curve shifts right because

Answer 23

higher prices lead to higher prophets

Question 24

government provide education because

Answer 24

the private benefit is less than the social benefit

Question 25

increase in petrol price reduces care journeys

Answer 25

rationing function

Question 26

a firm will reduce costs of production as it expands output if it

Answer 26

benefits from specialisation

Question 27

complete government failure exists

Answer 27

there is a missing market in the provision of public goods

Question 28

oligopoly can be explained by

Answer 28

firms employing managers to decrease average costs

Question 29

if a decrease in price of one good due to an increase in supply leads to a decrease in demand for another the 2 goods are in

Answer 29

competitive demand

Question 30

a good in a table takes the least account of negative externalities

Answer 30

is the highest in external cost

Question 31

demand reduces due to tough global competition (diagram)

Answer 31

demand shifts left

Question 32

optimum output of a good for society on a diagram would be

Answer 32

MSC to the left