Economics 1.2 How Markets Work
- Created by: tomstodd23
- Created on: 15-04-19 16:07
Other questions in this quiz
2. What is consumer surplus?
- The difference between the opportunity cost of purchase and the utility derived from consumption.
- The difference between the price the customer is willing to pay and the price that they do pay.
- The difference between the price the producer is willing to pay and the price they do pay.
- The difference between the actual market price and the price that they were willing to supply at.
3. Which of these is the incentive function?
- Gives consumers a signal to reduce demand and supplier to increase production.
- Something that motivates producers or consumers to follow a course of action or to make a change.
- Signals consumers to increase demand and suppliers to reduce production.
- Whenever resources are particularly scarce, demand exceeds supply and prices are driven up.
4. Which of these is not a factor that influences PES?
- How long production takes
- How easy it is to stock pile supply
- Pressure groups
- Transferability of resources
5. Which of these is the correct formula to calculate XED?
- %change in price of product A/ %change in quantity demanded of product B
- %change in price of product B/ %change in quantity demanded of product A
- %change in quantity demanded of product A/ %change in price of product B
- %change in quantity demanded of product b/ %change in price of product A
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