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Economics Revision Paper

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9 views4 pages

Economics Revision Paper

Uploaded by

lidiana
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Economics Revision Paper

A. Cross out the correct answer

1. An individual demand curve tells us how much:


a. A a firm sells at various prices. c. an individual will buy at various prices.
b. firms will sell at various prices. d. individuals will buy at various prices.

2. A market demand curve tells us how much:


a. a firm will sell at various prices. c. an individual will buy at various prices.
b. firms will sell at various prices. d. individuals will buy at various prices.

3. An individual supply curve tells us how much:


a. a firm will sell at various prices. c. an individual will buy at various prices.
b. firms sell at various prices. d. individuals will buy at various prices.

4. A market supply curve tells us how much


a. a firm will sell at various prices. c. an individual will buy at various prices.
b. firms will sell at various prices. d. individuals will buy at various prices.

5. The diagram below shows a demand curve for a normal good.


Which of these statements correctly describes what the demand curve shows?
a. The quantity changes in proportion to a
change in price.
b. A fall in price leads to a fall in quantity
demanded.
c. As price changes, a greater or smaller
quantity is demanded.
d. As demand increases, so does price.

6. Suppose there is a large increase in the price of a bottle of iced tea.


How is this likely to affect the demand curve for bottles of cola?
a. There will be an extension of demand along the demand curve for cola.
b. The demand curve for cola will remain unchanged.
c. The demand curve for cola will shift to the left.
d. The demand curve for cola will shift to the right.

7. Which of the following is likely to shift an individual’s demand curve for a Range Rover
Evoque luxury SUV to the left?
a. An increase in price of a substitute SUV.
b. A decrease in price of the Range Rover Evoque SUV.
c. A decrease in an individual’s income.
d. A five-star review of the Range Rover Evoque in a motoring magazine.

8. Which of these would cause a shift to the left of the market supply curve for Range
Rover Evoque vehicles?
a. An increase in the price of the Range Rover Evoque.
b. A reduction in the taxation on Range Rover Evoques.
c. An increase in the wages of production workers.
d. An improvement in output per worker.
9. The government provides funds for a subsidy on the price of cooking oil. How will this
affect the market supply curve of cooking oil?
a. There will be a contraction of supply along the market supply curve.
b. There will be an extension of supply along the market supply curve.
c. The market supply curve for cooking oil shifts to the right.
d. The market supply curve for cooking oil shifts to the left.

10. The government introduces a new indirect tax on imported orange juice from the USA.
How will this affect the domestic market supply curve for orange juice?
a. There will be a contraction of supply along the domestic market supply curve.
b. There will be an expansion of supply along the domestic market supply curve.
c. The domestic market supply curve shifts to the left.
d. The domestic market supply curve shifts to the right

11. Assume that both unrelated products are currently priced at $100 and demand for them
is 1000 units per month. Consider what might happen to the demand for A and B if the
price rises to $105. The quantity demanded of product A only falls from 1 000 to 990,
whereas the quantity demanded of product B falls from 1 000 to 900.
What is the price elasticity of demand of product A and product B?
a. (A 0.2) (B –0.2) c. (A 0.2) (B 2.0)
b. (A -2.0) (B 2.0) d. (A -0.2) (B – 2.0)

12. Price elasticity of demand is:


a. the change in demand given a change in price.
b. how the price changes given a change in quantity demanded.
c. the percentage change in quantity demanded given a change in price.
d. the percentage change in quantity demanded given a percentage change in price.

13. Along a downward sloping demand curve, the value of price elasticity of demand:
a. falls as the quantity demanded increases.
b. increases as the quantity demanded increases.
c. is the same along the demand curve.
d. varies with the level of expenditure.

14. The price of a can of iced tea increases from $1.00 to $1.10.
The quantity demanded falls from 300 cans a week to 240 cans a week.
Calculate the price elasticity of demand.
a. A −0.5 c. −2.5
b. −2.0 d. −2.22
15. Use the value in the table below to calculate the elastics demand. Show your
working/calculation.

Problem Answer
Calculate the PED between week 2 and 3

Calculate the PED between week 3 and 4

Calculate the PED between week 4 and 5

Calculate the YED between week 2 and 3

Calculate the YED between week 3 and 4

Calculate the PED between week 4 and 5

Calculate the XED between week 2 and 3

Calculate the XED between week 3 and 4

Calculate the XED between week 4 and 5


16. Read the statement and identify the economics concept for each statement.

No Definition concept
1 It is willingness and ability of consumers to buy
products.
2 It is quantity of the products that the consumer
are willing or able to buy.
3 It is a table that shows the quantity of goods and
services that a consumers is willing and able to
buy
4 It is a graph that shows the quantity of goods and
services that a consumers is willing and able to
buy
5 It is a mathematical equation that shows the
quantity of goods and services that a producer is
willing and able to buy
6 It is the willingness and ability of producers to
sell products
7 It is the quantity products that a producers is
willing and able to sell
8 It is table that shows the quantity of goods and/
services that a producer is willing or able to sell
9 It is graph that shows the quantity of goods and
or services that a producers is willing and able to
sell
10 It is a mathematical equation that shows the
quantity of good and or services that a producer is
willing and able to sell

demand quantity demand curve supply supply schedule

supply function demand demand schedule demand function

supply quanity supply curve

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