One firm that is the supplier of a product in the market
A board game - nothing to do with economics
When a few firms have the power over the market
7. In an Oliogopoly what causes an elastic response?
When consumers respond to an increase in cost
When other firms do not respond to a rivals increase in price
When other firms respond to a rivals increase in price
8. In an Oliogopoly what causes an inelastic response?
When other firms respond to a rivals decrease
When other firms do not respond to a rivals decrease
When consumers do not respond to an increase in cost
9. What is Economic Welfare?
Measured in money by what people would be honestly willing to pay for the enjoyment of such welfare.
Measured in need by what people require need for their welfare.
Measured in demand by what people have determined they both need and can afford for their welfare.
10. What positive could be taken from an oliogopoly market?
Perfect competition
Price stability
Market equilibrium
Demand stability
11. If the PED is Elastic and the Price rises - what happens to the revenue
The total revenue falls
The total revenue rises
The total revenue remains the same
12. What happens to the supply or demand line due to a change in condition?
Nothing - everything will remain the same.
The line will shift.
There will be movement on the line.
13. How do you calculate Market Economic Welfare?
Consumer surplus (difference between max consumer is willing to pay and actual price paid) + Producer Surplus (difference between actual price paid and min that would be acceptable to producer) + Net Externalities (positive and negative externalities
Consumer surplus (difference between max consumer is willing to pay and actual price paid) + Producer Surplus (difference between actual price paid and min that would be acceptable to producer) x Net Externalities (positive and negative externalities
Consumer surplus (difference between max consumer is willing to pay and actual price paid) + Producer Surplus (difference between actual price paid and min that would be acceptable to producer) - Net Externalities (positive and negative externalities
Consumer surplus (difference between max consumer is willing to pay and actual price paid) - Producer Surplus (difference between actual price paid and min that would be acceptable to producer) + Net Externalities (positive and negative externalities
14. What is a mixed economy?
Refers to a mixture of market activity and government activity
Refers to different suppliers operating within the same market
Refers to varying sub-markets within a single market - such as fuel (gas, electricity etc)
15. What does PED stand for
Price elasticity of demand
Price equality and demand
Perfect equality in demand
16. Which of these variables could not dictate the supply of a product:
Normal weather
Factor Prices (resources used to make it)
Scale of the compant
Prices of other related products
17. What is market equilibrium?
When quantity demand < quantity supplied
When quantity demand = quantity supplied
When proft > than outgoings
When quanity demand = quantity need
18. How is demand measured?
Demand is measured by a want and backed up by an ability and a willingness to pay.
Demand is the same as need, it is what people require to survive
Demand is measured by what people can afford and does not take into consideration want.
19. What does ceteris paribus mean?
At the end
Everything else is irrelevant
Other things equal
In other words
20. What is a free market?
Another name for the world market
One that concentrates on government supplys such as NHS and National Service
