Applied Economics - Quarter 1 - Module 1

<p>Economics is concerned with the allocation of scarce resources. (A)</p> Signup and view all the answers

<p>It helps people make informed decisions regarding resource use. (A)</p> Signup and view all the answers

<p>Market Equilibrium (C)</p> Signup and view all the answers

<p>Explain the meaning of Economics (C)</p> Signup and view all the answers

<p>Lesson 6 (D)</p> Signup and view all the answers

<p>Demand increases (B)</p> Signup and view all the answers

<p>Demand increases (B)</p> Signup and view all the answers

<p>Current demand increases (C)</p> Signup and view all the answers

<p>When buyers' incomes fall (D)</p> Signup and view all the answers

<p>An increase in the prices of substitutes (D)</p> Signup and view all the answers

<p>Demand increases (B)</p> Signup and view all the answers

<p>They reduce their consumption. (B)</p> Signup and view all the answers

<p>It will increase (A)</p> Signup and view all the answers

<p>The summation of individual supply from all producers (D)</p> Signup and view all the answers

<p>The inverse relationship between price and quantity demanded. (C)</p> Signup and view all the answers

<p>Inferior goods (C)</p> Signup and view all the answers

<p>It increases the quantity supplied (D)</p> Signup and view all the answers

<p>Rise in the price of inputs (D)</p> Signup and view all the answers

<p>An increase in the price of substitutes. (C)</p> Signup and view all the answers

<p>Demand for the good increases immediately. (C)</p> Signup and view all the answers

<p>Prices of substitute goods (B)</p> Signup and view all the answers

<p>Market supply shifts outwards (D)</p> Signup and view all the answers

<p>The total demand of goods and services from all consumers in a market. (C)</p> Signup and view all the answers

<p>They can lead to speculation about future prices (A)</p> Signup and view all the answers

<p>Higher population generally increases demand for goods. (B)</p> Signup and view all the answers

<p>Higher prices lead to lower quantities supplied. (B)</p> Signup and view all the answers

<p>It may shift the supply curve to the right (B)</p> Signup and view all the answers

<p>Environmental regulations (D)</p> Signup and view all the answers

<p>Demand for substitutes increases as consumers seek alternatives. (C)</p> Signup and view all the answers

<p>Low barriers to entry and exit (A)</p> Signup and view all the answers

<p>Control supply and pricing of the product (C)</p> Signup and view all the answers

<p>Monopolistic competition (D)</p> Signup and view all the answers

<p>Few large sellers influencing market prices (C)</p> Signup and view all the answers

<p>Perfect information among market participants (A)</p> Signup and view all the answers

<p>Low elasticity of demand for the product (B)</p> Signup and view all the answers

<p>Firms are more likely to cooperate with each other (D)</p> Signup and view all the answers

<p>Single seller in the market (B)</p> Signup and view all the answers

<p>Price Skimming (C)</p> Signup and view all the answers

<p>Psychological Pricing (C)</p> Signup and view all the answers

<p>Bundle Pricing (B)</p> Signup and view all the answers

<p>Creates bigger margins and increases profits (C)</p> Signup and view all the answers

<p>Opportunity cost (D)</p> Signup and view all the answers

<p>Based on the location where the product is sold (C)</p> Signup and view all the answers

<p>Entry of competitors with lower prices (B)</p> Signup and view all the answers

<p>Value Pricing (C)</p> Signup and view all the answers

The study of how individuals and societies allocate scarce resources.

A branch of science that studies societies and relationships among individuals.

A discipline that uses scientific knowledge to solve practical problems.

The total amount of a good or service that producers are willing to sell at a given price.

The total quantity of a good or service that consumers are willing to purchase at different prices.

The point where the quantity supplied equals the quantity demanded in a market.

The organizational characteristics of a market, affecting competition and pricing.

Current challenges in the economy affecting businesses, markets, and consumers.

As prices increase, suppliers are willing to sell more.

Price and quantity demanded have an inverse relationship.

Elements that cause changes in consumers' willingness to buy.

A situation where two variables move in opposite directions.

As population increases, demand for goods typically rises.

Goods that can replace each other in consumption.

Anticipations of future prices can influence current demand.

Elements that can cause shifts in supply including price, production conditions, and seller expectations.

The price of the good will influence how much is supplied; higher prices result in larger quantities supplied.

Prices of goods that influence the resources used to produce the primary good.

Factors like technology that affect the ability to produce goods.

Sellers’ beliefs about future market conditions that impact supply decisions.

The amount of firms in an industry which affects market supply levels; more suppliers typically increase supply.

Factors that influence the demand for goods and services.

Goods for which demand increases as buyers’ income increases.

Goods for which demand decreases as buyers’ income increases.

Changes can increase or decrease the demand based on fashion or utility.

Demand can be affected by substitute and complementary goods' prices.

Anticipation of price increases can boost current demand.

Expected increases in income can raise demand for normal goods and lower for inferior goods.

An increase in the population of buyers typically raises demand for products.

Setting a high initial price that is gradually lowered over time.

Pricing technique that appeals to emotional responses rather than logical reasoning.

Selling multiple products together at a lower price than individual purchases.

Pricing determined by the location where goods are sold, accounting for regional costs.

Offering temporary discounts to attract customers to specific products.

Setting prices based on customer perceptions of value amidst external pressures.

Setting a low price for a primary product, but high for related secondary items.

A market structure with many firms selling identical products, where prices are determined by competition.

Firms regulate resources to meet consumer demand profitably in a competitive market.

A market structure with a single seller dominating the market, with no close substitutes for the product.

Elasticity is low; consumers have no alternatives, making demand less sensitive to price changes.

A market structure with many firms selling differentiated products; firms have some control over prices.

A market dominated by a small number of large firms, often aware of each other's pricing strategies.

Oligopolies can be pure (homogeneous products) or differentiated (varied products).

Obstacles that prevent new firms from entering a market, commonly found in monopolies and oligopolies.