F581 - Chapter 1

1.

1 point

Define 'demand':

The quantity of a product that consumers are willing and able to purchase over a given period of time at various price levels

The quantity of a good or service that consumers want to purchase over a given period of time at various price levels

The quantity of a product that consumers are able to purchase over a given period of time at various price levels

The quantity of a good that consumers are willing and able to purchase over a given period of time

2.

1 point

Which of these is a major advantage of specialisation

Exotic goods become available (through imports) to consumers that otherwise wouldn't be, as they couldn't be produced in that country

Tastes and fashions can change in the country importing specialised goods, causing major problems for the economy/economies specialising in the production of these goods

Supermarkets make larger profits

Individual employees gain more experience

3.

1 point

In AS economics, there are two types of product. What are they?

Primary and secondary products

Raw and manufactured products

Capital goods and other products

Goods and services

4.

1 point

'Land' can be defined as:

Products mined or otherwise obtained from under the ground

Any naturally occurring resource

Features of a landscape that would be beneficial to the production of a good or service

The particular area or areas that a firm has the rights to use

5.

1 point

The 'productive potential' of an economy displays:

The average output an economy should expect to produce

The maximum output an economy is capable of producing

The minimum output an economy should produce

The maximum output an economy will produce

6.

1 point

Economic 'Specialisation' can be defined as:

Where an individual worker, firm, region or entire economy focuses on the production of a narrow range of goods or services.

Where an individual worker, firm, region or entire economy focuses on producing goods and services.

Where a firm looks to make its usage of capital equipment more efficient.

Where an economy produces a wide range of goods or services

7.

1 point

Britain's economic doctrine could be described as having what type of economy?

Command economy

Market economy

Mixed economy

Capital intensive economy

8.

1 point

Define 'labour'

The number of individual workers involved in the production of a good or service

The ability of individual workers to produce a good or service in a given amount of time

The quality of a particular labour force in the production of a good or service

The size and/or quality of a workforce in the production of a good or service

9.

1 point

A 'Command Economy' can be used to describe:

An economic system in which most resources are state owned and also allocated centrally

An economic system in which the prices of goods and services are determined by the market forces of supply and demand

An economic system in which goods and services are allocated according to need, rather than want

An economic system in which most resources are privately owned

10.

1 point

North Korea's economic doctrine could be described as using what type of economy?

Command economy

Market economy

Mixed economy

Labour intensive economy

11.

1 point

What are the Factors of Production?

Labour, capital, enterprise and time

Production, distribution, advertising, consumption

Machinery, employees, time and building

Labour, enterprise, capital and land

12.

1 point

'Opportunity cost' can be defined as:

The total cost of alternatives foregone when a choice is made

The cost of the alternative foregone when a choice is made

The cost of the next best alternative foregone when a choice is made

The total cost of a good minus the total price of alternatives

13.

1 point

The PPC/PPF will be shifted to the right if:

If there is an increase in exports

If the cost of production for firms reduces

If the government reduces the rate of income tax

There is an increase in the quantity and or quality of the factors of production available

14.

1 point

'Supply' can be defined as:

The quantity of a good or service consumers are willing and able to produce over a given period of time at various prices

The quantity of goods and services producers are able to produce over a given period of time at various prices

The total number of goods producers are willing and able to produce over a given period of time at various prices

The quantity of a good or service producers are willing and able to produce at various prices over a given period of time

15.

1 point

What is the core 'economic problem'?

There is only a finite quantity of resources, therefore an allocative mechanism must be put in place.

There are unlimited needs but finite resources, therefore an allocative mechanism must be put in place.

There are unlimited wants but finite resources, therefore an allocative mechanism must be put in place.

There are unlimited needs, therefore an allocative mechanism must be put in place.

16.

1 point

'Enterprise' is a factor of production. Define 'enterprise'

The willingness and ability of an individual to organise the other factors of production in order to produce a good and/or service as well as the ability and willingness to take risks

The willingness and ability of an individual to take risks and produce a good or service

The willingness and ability of a producer to design a product and then sell it

The willingness of an individual to make a lot of money producing goods or services

17.

1 point

The 'division of labour' can be defined as:

Where the cost of production reduces as employees work together

Where the production process is broken down into individual tasks, each completed by an individual employee

Where the labour market is broken into several sections for purposes of organisation

Where employees work together to produce more goods and services

18.

1 point

'Economic growth' can be described as:

A change in the cost of living within an economy

An increase in the value of labour within an economy

A change in the productive potential of an economy

A reduction in the price level within an economy

19.

1 point

A 'Production Possibility Curve' or 'Production Possibility Frontier' is used for what purpose?

To display the size of an economy

To display the maximum output of any combination of any two goods or services, given available resources or the state of technology.

To display the minimum output of any combination of any two goods or services, given available resources and the state of techology

To display the maximum output of any combination of any two goods or services, given available resources and the state of technology.