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IGCSE MCQ Checklist

This document provides a checklist of multiple choice questions (MCQs) related to economics concepts for the IGCSE exam. It covers topics like production possibility curves, market systems, demand and elasticity, price controls, comparative advantage, and exchange rates. Key points addressed include the shapes of PPC curves and what they represent, factors that shift the demand curve, price and income elasticity of demand, and micro and macroeconomic factors that can cause appreciation or depreciation in exchange rates.

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Dhrisha Gada
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2K views8 pages

IGCSE MCQ Checklist

This document provides a checklist of multiple choice questions (MCQs) related to economics concepts for the IGCSE exam. It covers topics like production possibility curves, market systems, demand and elasticity, price controls, comparative advantage, and exchange rates. Key points addressed include the shapes of PPC curves and what they represent, factors that shift the demand curve, price and income elasticity of demand, and micro and macroeconomic factors that can cause appreciation or depreciation in exchange rates.

Uploaded by

Dhrisha Gada
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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IGCSE ECONOMICS

MCQs CHECKLIST

1. A Bowed out PPC ( Concave ) represents increasing opportunity costs

2. A straight line downward sloping PPC reflects constant opportunity costs.

3. A point on the PPC represents full employment.

4. A point inside the PPC represents unemployment.

5. A point outside the PPC is unattainable unless resources are increased.

6. Market System promotes incentive

7. Market System- Price Mechanism acts as a signal

8. Command Economy- Government sets prices, government control and

regulations

9. Change in price of Product- Movement along the demand curve

10. Price rises- demand contracts Price Falls- Demand Extends

11.Non Price Factors- Shift in the demand Curve


12.Income Increases – Demand for Normal goods Increases- Positive

relationship

13.Income Increases- Demand for Inferior goods decreases- Negative

relationship

14.Price of Substitutes Increase- Demand for Product Increases

15.Price of Compliments Increase- Demand for Product Decreases

16.Degrees of Elasticity

A set of graphs shows the relationship between demand and total


revenue (TR) for a linear demand curve. As price decreases in the
elastic range, TR increases, but in the inelastic range, TR
decreases. TR is maximized at the quantity where PED = 1.

17.Factors affecting PED


 Availability of Substitutes
 Relative expense of the product
 Time
18.Factors affecting PES

19. A maximum price fixed below market equilibrium – effective


A maximum price fixed above market equilibrium – ineffective

A Minimum price fixed above market equilibrium - effective


A Minimum price fixed below market equilibrium – ineffective

20.Absolute Advantage –
One country can produce more of a good with the same quantity of
resources
Lower cost per unit

21.Comparative advantage-
One country can produce at a lower opportunity than another country

22. Factors Causing an appreciation in exchange rate

 Demand for the currency Increases


 Demand for the exports of the currency Increases
 Rate of Interest Increases- Hot money Flows
 An increase in the competitiveness in the goods
 Expectations- encourage speculation
 Lower inflation
 Current Account Surplus
 Higher economic growth
 Selling Foreign exchange and buying own currency
 Long term supply side policy

23.Factors causing a depreciation in the exchange rate


 Demand for currency decreases
 Demand for exports of the currency decreases
 Rate of Interest decreases
 A decrease in competiveness of goods
 Expectations that currency will fall further
 High Inflation
 Current Account deficit
 Low Economic growth
 Loss of Investor confidence
 Recession in Foreign countries
 Political instability

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