Question | Answer |
What numerical value does a perfectly inelastic supply curve have? | 0
|
What type of organization uses strikes as a tactic? | Trade Unions
| Is the PES of vegetables generally below or above 1? | Below 1
| If a product has a lot of substitutes is its PED likely to be elastic or inelastic? | Elastic
| If a product becomes fashionable, what will happen to its demand curve? | shift to the right
| Is a hammer an example of fixed capital or working capital? | Fixed capital
| If workers get more educated, will this shift the supply or the demand for labour curve? | Demand for labour
| The Economic problem is often said to be that there are ‘limited wants and unlimited resources.’ What is the term used to describe this situation? | Scarcity
| Smoking causes costs to third parties. What are these costs to third parties called? | Negative externalities
| Why might a government want to subsidize vaccinations? | Because they have positive externalities (of consumption)
| Why would a government tend not to subsidize necessities even though it could make them lots of money? | Because people need necessities
| Which type of good will people buy more of when incomes are falling, normal or inferior? | Normal
| Is Starbucks a Monopolist or an Oligopolist? | An oligopolist
| What is the equation for Average Revenue | Total revenue divided by output
| An airport gets built in a small city. Give one positive and one negative externality of the airport? | Jobs, noise pollution or similar examples
| What is the definition of price elasticity of supply? | change in quantity demanded divided by change in price
| What is the difference between a merger and a takeover? | Two firms become one/two firms join to make a bigger firm
| Why is the LRAC curve U shaped? | Because a firm will first get economies of scale, then diseconomies of scale
| If a firm has high stock levels for a product, will the supply of that product be elastic or inelastic? | Inelastic
| Give one example of market failure | e.g. underprovision of merit goods |