Subject Economics My marks 8 marks from 10 possible Due on Oct 7 2024 11:59PM
Total marks 10 Percent 80% Questions 10
Question 1 Which one of the following gives rise to opportunity cost?
A. Alternative uses for resources B. Market failures for many goods
C. The methodology of positive economics D. The presence of externalities
1 1 Mark
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Question 2 The diagram below shows the production possibility curve for an economy producing boots and bicycles. The initial combination of boots and bicycles produced is shown by point E.
A change in consumer preferences causes the boot industry to contract and the bicycle industry to expand.
If labour is not fully mobile between the two industries, then the new combination of boots and bicycles produced is most likely to be at
A. point F. B. point G.
C. point H. D. point I.
1 1 Mark
Question 3 Which one of the following is an example of the economic resource capital?
A. A bank loan to a small business B. A scientific research laboratory
C. Government subsidies for wind power D. Money in a savings account
1 1 Mark
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Question 4 Which one of the following is a positive economic statement?
A. The pattern of wealth ownership in the UK is unfair.
B. There are too many poor people in the UK today.
C. The distribution of income in the UK is unequal.
D. The rich should be taxed more than the poor.
1 1 Mark
Question 5 A demand curve is drawn on the assumption that
A. quantity demanded always increases as B. changes in price do not influence supply.
price falls.
C. price elasticity of demand does not vary D. factors affecting demand, other than price, along the demand curve. remain constant.
0 1 Mark
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Question 6 The diagram below shows two demand curves for frozen peas.
The diagram shows that, all other things being equal, the shift of the demand curve for frozen peas from D1 to D2 can result from
A. an increase in the quantity of frozen peas supplied.
B. an increase in the price of frozen peas.
C. a change in consumer preference for frozen peas.
D. a decrease in the price of a substitute for frozen peas.
0 1 Mark
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Question 7 Which one of the diagrams below illustrates the relationship between two goods, X and Y, which are complementary goods?
A. B. C.
D.
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Question 8 The diagram below shows the demand for, and supply of, rail services.
The shift of the curve from D1 to D2 is most likely to result from
A. a government decision to increase subsidies for rail travel.
B. a reduction in the tax imposed on the price of a litre of
petrol.
C. a major expansion of the government’s new railway track-
building programme.
D. a decision by the government to impose a tax on all car
parking.
1 1 Mark
Question 9 In a typical demand schedule, quantity demanded
A. varies directly with price. B. varies proportionately with price.
C. is determined by the elasticity of demand. D. varies inversely with price.
1 1 Mark
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Question 10 A farmer can produce two types of grain on his farm, wheat and barley. The production possibility boundary below shows the different quantities of the two grains that can be produced on the farm in a single year.
It can be deduced from the diagram that
A. a movement from X to Y results in an improvement in productive
efficiency because the total output of grain increases from 100 to 115 tonnes.
B. at point X, the opportunity cost of producing 20 more tonnes of
wheat is 40 tonnes of barley.
C. a movement from point Y to point Z does not involve an
opportunity cost because all resources are fully employed.
D. the maximum amount of grain that the farm can produce in one year is 80 tonnes of wheat and 100 tonnes of barley.
