Loading...
Tutor2u - Microeconomics Revision Test (2)
Quiz by Koen De Mulder
Tag the questions with any skills you have. Your dashboard will track each student's mastery of each skill.
The opportunity cost to the government of a decision to construct five new by-passes for a selection of towns would be
Which one of the following is a positive statement?
If an economy is operating at full capacity, the most likely effect of an increase in the output of capital goods is that the output of consumer goods will
The diagram shows an economy with a production possibility boundary producing heart operations and other health treatments. The economy is able to expand output from the combination shown by point A to the combination shown by point C if
The diagram shows the domestic demand and supply for a commodity and also the world supply both before and after the introduction of an import tariff. The shaded area in the diagram labelled by the letter M represents
The change in the supply curve shown in the diagram might have been caused by
If, when income changes, the quantity demanded of a commodity remains the same, its income elasticity of demand is equal to
The diagram shows the effect of an increase in market supply for a commodity. The shaded area in the diagram represents
If, when the price of product S rises by 20%, the demand for product W falls by 4% and the demand for product T rises by 5%, then we can say
The diagram shows a market where the government has introduced a statutory maximum price of P max. As a result of the maximum price, the output that will be supplied onto the market will be
The diagram shows a market in equilibrium at price P1 and output Q1. Which area, A, B, C or D shows the level of producer surplus in the market at this price and output?
The effect of a government imposing a minimum price for cereals above the free market equilibrium price will result in
If the supply curve of a commodity is positively sloped, a fall in the price of the commodity brought about by an inward shift of demand results in
The change in the market demand for lamb shown in the diagram might have been caused by
The diagram above shows the effect of a government subsidy to producers of cereals. Following the subsidy, the total amount that the government will pay to producers as part of the subsidy arrangement is equal to area.
A producer estimates that the price elasticity of supply for his product is +1.5. As a result of an increase in market price from £30 to £45 following an outward shift of the producer's demand curve, we could expect the producer to expand supply by
The government wishes to increase economic welfare by introducing policies that create external benefits as well as internal ones. It should
A government believes that consumers derive greater benefit from a good than consumers themselves perceive. To which category does the good belong?
Which one of the following statements referring to a market economy is correct?
Which one of the following would be included in the economist’s definition of physical capital?