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6. What is consumer surplus?
- The difference between the price the producer is willing to pay and the price they do pay.
- 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 actual market price and the price that they were willing to supply at.
7. Which of these does not cause a shift in the supply curve?
- Number of firms
- Consumption
- Productivity
- Indirect taxes
8. Which of these is the incentive function?
- Whenever resources are particularly scarce, demand exceeds supply and prices are driven up.
- Something that motivates producers or consumers to follow a course of action or to make a change.
- Gives consumers a signal to reduce demand and supplier to increase production.
- Signals consumers to increase demand and suppliers to reduce production.
9. Which of these is not a characteristic of an elastic good?
- Non essential
- High end
- Inferior goods
- High competition
10. Which of these is the correct formula to calculate PES?
- %change in quantity demanded/%change in supply
- %change in supply/%change in price
- %change in price/%change in supply
- %change in supply/%change in quantity demanded
11. Which of these is the correct XED interpretation of tea and coffee?
- Compliments with a negative correlation
- Substitutes with a positive correlation
- Complements with a positive correlation
- Substitutes with a negative correlation
12. Which of these is not a characteristic of an inelastic good?
- High end
- Addictive
- No substitutes
- Necessity
13. Which of these coefficients represent a necessity?
14. Which of these is the correct formula to calculate YED?
- %change in income/%change in supply
- %change in quantity demanded/%change in income
- %change in price/%change in income
- %change in income/%change in quantity demanded
