U1 Revision 7 Flashcards
(10 cards)
True or False: The PPF illustrates the maximum feasible amount of two goods that can be produced with available resources.
True
Fill in the blank: Relative prices are the prices of goods or services expressed in terms of ______.
other goods or services
What is a tax rebate?
A tax rebate is a refund on taxes when the tax liability is less than the taxes paid.
How is elasticity defined in economics?
Elasticity measures the responsiveness of the quantity demanded or supplied to a change in price.
True or False: Government subsidies generally lead to lower prices for consumers.
True
Fill in the blank: When a government introduces a subsidy for consumer goods, the supply curve shifts to the ______.
right
Fill in the blank: In a monopoly, the seller has significant control over price due to a lack of __________.
competition
What is the primary difference between monopoly and oligopoly?
Monopoly has one seller, while oligopoly has a few sellers.
What is the primary effect of a change in relative prices on resource allocation?
It reallocates resources towards goods and services that become relatively more profitable.
Which of the following best describes the concept of opportunity cost in relation to relative prices? A) The cost of the next best alternative foregone B) The total cost of production C) The fixed costs of a firm
A) The cost of the next best alternative foregone
