Economics section A

This is based on all choice questions from unit 1 of microeconomics. Most of these questions are from many different past papers. 

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1. When an economy operates on its production possibility frontier (PPF), it is

  • maximising the profits of producers.
  • productively efficient.
  • satisfying all the economics wants of consumers.
  • not producing demerit goods such as cigarettes.
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2. A Demerit good is:

  • a good that are needed to make other good.
  • seen as undesirable, over produced and over priced.
  • unaffordable, under priced and under produced.
  • goods people would not come together to pay for if in a free market economy.

3. What are goods provided by the government for people who are deemed to need them called?

  • Negative externalities.
  • Merit goods.
  • Positive externalities.
  • Demerit goods.

4. The price elasticity of supply of a product will depend on

  • the availability of factors of production.
  • the incomes of consumers.
  • whether the product is a luxury or a necessity.
  • the extent to which the product is advertised.

5. What are the two only free goods?

  • Paper and wood.
  • Sunlight and air.
  • Chocolate and Phones.
  • Fuel and water.

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