Nov P2 Mix

Access to new markets and broadening of customer base

A country specializes in producing goods for which it has the lowest opportunity cost

A socio-economic and political divide between developed and developing countries

<p>Loss of biodiversity due to habitat destruction and pollution</p> Signup and view all the answers

<p>Implementing legislation such as the National Environment Management Act</p> Signup and view all the answers

<p>Increased inequality between and within countries</p> Signup and view all the answers

<p>Environmental degradation</p> Signup and view all the answers

<p>They tend to export high-value manufactured goods</p> Signup and view all the answers

<p>Climate change</p> Signup and view all the answers

<p>Promotes efficiency and specialization, leading to lower prices and more varied products</p> Signup and view all the answers

<p>Economic profit takes into account opportunity costs, while accounting profit does not</p> Signup and view all the answers

<p>The point where the business makes a normal profit</p> Signup and view all the answers

<p>Costs that do not vary with the level of output</p> Signup and view all the answers

<p>TC divided by Q</p> Signup and view all the answers

<p>Economies of scale</p> Signup and view all the answers

<p>The total income from sales, calculated as Price x Quantity</p> Signup and view all the answers

<p>The additional income from selling one more unit</p> Signup and view all the answers

<p>TR - TC</p> Signup and view all the answers

<p>Price elasticity</p> Signup and view all the answers

<p>To understand market behavior and guide business decisions</p> Signup and view all the answers

<p>Improving public transport</p> Signup and view all the answers

<p>Profit maximization</p> Signup and view all the answers

<p>Higher prices encourage increased production and supply</p> Signup and view all the answers

<p>A measure of how the quantity demanded of a good responds to a change in the price of that good</p> Signup and view all the answers

<p>When the elasticity is greater than 1</p> Signup and view all the answers

<p>Demand typically decreases unless the good is inelastic</p> Signup and view all the answers

<p>To compare the cost of one good or service in terms of another</p> Signup and view all the answers

<p>It makes demand more elastic</p> Signup and view all the answers

<p>A measure of the responsiveness of quantity supplied to a change in price</p> Signup and view all the answers

<p>Demand for the substitute increases</p> Signup and view all the answers

<p>It makes supply more elastic</p> Signup and view all the answers

<p>It exacerbates land degradation</p> Signup and view all the answers

<p>To integrate sustainable practices into various sectors of the economy</p> Signup and view all the answers

<p>A measure of how the quantity demanded of one good responds to the price change of another good</p> Signup and view all the answers

<p>Cars and fuel</p> Signup and view all the answers

<p>Demand for the complement increases</p> Signup and view all the answers

<p>Higher production costs lead to lower profitability</p> Signup and view all the answers

<p>A measure of how the quantity demanded of a good responds to changes in consumer income</p> Signup and view all the answers

<p>Quality clothing</p> Signup and view all the answers

<p>It helps in both setting prices that optimize revenue and planning production levels</p> Signup and view all the answers

<p>The process by which businesses or other organizations develop international influence or start operating on an international scale</p> Signup and view all the answers

<p>Technological Advances</p> Signup and view all the answers

<p>Economic Growth</p> Signup and view all the answers

<p>Economic Integration</p> Signup and view all the answers

<p>Exploiting geographic advantages</p> Signup and view all the answers

<p>Reduction of trade barriers</p> Signup and view all the answers

<p>Increased global relationships leading to an exchange of cultural ideas and practices</p> Signup and view all the answers

<p>Rapid advancements in technology leading to innovation</p> Signup and view all the answers

<p>Reduction of trade barriers and standardization of laws</p> Signup and view all the answers

<p>Increased global relationships and exchange of cultural ideas</p> Signup and view all the answers

<p>Businesses can invest globally</p> Signup and view all the answers

<p>Exploit geographic advantages such as lower labor costs</p> Signup and view all the answers

<p>The cost of operations is lowered</p> Signup and view all the answers

<p>Improvements in communication and transport technologies</p> Signup and view all the answers

<p>Increased investment and business opportunities</p> Signup and view all the answers

<p>The process by which businesses or other organizations develop international influence or start operating on an international scale</p> Signup and view all the answers

<p>Percentage change in quantity demanded divided by percentage change in price</p> Signup and view all the answers

<p>Small price change causes a significant change in quantity demanded</p> Signup and view all the answers

<p>It makes demand more elastic</p> Signup and view all the answers

<p>Quantity supplied is relatively insensitive to price changes</p> Signup and view all the answers

<p>It makes demand more elastic</p> Signup and view all the answers

<p>Measures how the quantity demanded of one good responds to a change in the price of another good</p> Signup and view all the answers

<p>Has a positive income elasticity of demand</p> Signup and view all the answers

<p>To determine the optimal production level of a good</p> Signup and view all the answers

<p>It makes supply more elastic</p> Signup and view all the answers

<p>Environmental degradation</p> Signup and view all the answers

<p>Combat environmental degradation</p> Signup and view all the answers

<p>It helps in making informed decisions regarding pricing strategies and production levels</p> Signup and view all the answers

<p>Significant income gap between developed and developing countries</p> Signup and view all the answers

<p>Promotes efficiency and specialization</p> Signup and view all the answers

<p>Climate change</p> Signup and view all the answers

<p>Job losses in developed countries</p> Signup and view all the answers

<p>To develop effective strategies to manage the effects of globalization</p> Signup and view all the answers

<p>High-value manufactured goods</p> Signup and view all the answers

<p>Lower prices and more varied products</p> Signup and view all the answers

<p>Job losses in developed countries</p> Signup and view all the answers

<p>Profit maximization</p> Signup and view all the answers

<p>Decreases demand unless the good is inelastic</p> Signup and view all the answers

<p>Increases demand for the substitute</p> Signup and view all the answers

<p>To compare the cost of one good or service in terms of another</p> Signup and view all the answers

<p>Exacerbates land degradation</p> Signup and view all the answers

<p>Integrating sustainable practices into various sectors of the economy</p> Signup and view all the answers

<p>Lower production costs lead to increased profitability</p> Signup and view all the answers

<p>Decreases demand for the complement</p> Signup and view all the answers

<p>Lower cost per unit</p> Signup and view all the answers

<p>To analyze how changes in one market affect others</p> Signup and view all the answers

<p>Accounting profit does not account for implicit costs, while economic profit does.</p> Signup and view all the answers

<p>To make decisions about production levels.</p> Signup and view all the answers

<p>The cost per unit decreases.</p> Signup and view all the answers

<p>Price x Quantity</p> Signup and view all the answers

<p>The minimum profit needed for a firm to continue operating.</p> Signup and view all the answers

<p>Marginal revenue is crucial for determining the optimal level of output.</p> Signup and view all the answers

<p>Costs that do not vary with the level of production.</p> Signup and view all the answers

<p>Costs that become variable in the long run.</p> Signup and view all the answers

<p>The demand decreases.</p> Signup and view all the answers

<p>To make informed decisions about production and pricing strategies.</p> Signup and view all the answers

<p>Capital movement</p> Signup and view all the answers

<p>Economic growth</p> Signup and view all the answers

<p>Exploiting geographic advantages</p> Signup and view all the answers

<p>Lowering the cost of operations</p> Signup and view all the answers

<p>Exchange of cultural ideas and practices</p> Signup and view all the answers

<p>Standardization of laws and regulations</p> Signup and view all the answers

<p>Encouragement of international trade and investment</p> Signup and view all the answers

<p>Standardization of laws and regulations</p> Signup and view all the answers

<p>Widening of the income gap</p> Signup and view all the answers

<p>To promote sustainable development</p> Signup and view all the answers

<p>Job losses in developed countries</p> Signup and view all the answers

<p>A country can produce a good more efficiently than other countries</p> Signup and view all the answers

<p>It has a complex and multifaceted impact</p> Signup and view all the answers

<p>Economic disparities between developed and developing countries</p> Signup and view all the answers

<p>To maintain natural resources for future generations</p> Signup and view all the answers

<p>Environmental degradation</p> Signup and view all the answers

<p>Price expectations</p> Signup and view all the answers

<p>Promotion of efficiency and specialization</p> Signup and view all the answers

<p>To compare the cost of one good or service in terms of another</p> Signup and view all the answers

<p>All of the above</p> Signup and view all the answers

<p>To ensure sustainable development</p> Signup and view all the answers

<p>An increase in demand for the substitute</p> Signup and view all the answers

<p>To integrate sustainable practices into various sectors of the economy</p> Signup and view all the answers

<p>Higher prices lead to an increase in supply</p> Signup and view all the answers

<p>It leads to land degradation and exacerbates environmental deterioration</p> Signup and view all the answers

<p>To maximize profits</p> Signup and view all the answers

<p>A decrease in the cost per unit</p> Signup and view all the answers

<p>A decrease in demand</p> Signup and view all the answers

<p>How much the quantity demanded of a good responds to a change in the price of that good</p> Signup and view all the answers

<p>Increase in the proportion of income spent on a good</p> Signup and view all the answers

<p>Suppliers can increase output without a significant rise in cost</p> Signup and view all the answers

<p>How the quantity demanded of one good responds to the price change of another good</p> Signup and view all the answers

<p>Quality clothing</p> Signup and view all the answers

<p>To make more informed decisions regarding pricing strategies and production adjustments</p> Signup and view all the answers

<p>Increase in time to respond</p> Signup and view all the answers

<p>It makes demand more elastic</p> Signup and view all the answers

<p>The demand for the complement decreases</p> Signup and view all the answers

<p>To set prices that optimize revenue</p> Signup and view all the answers

<p>Accounting profit is calculated by subtracting explicit costs from total revenue, whereas economic profit also includes opportunity costs.</p> Signup and view all the answers

<p>To decide the optimal level of output for a business.</p> Signup and view all the answers

<p>Output increases by a greater proportion than inputs.</p> Signup and view all the answers

<p>Price x Quantity</p> Signup and view all the answers

<p>To reduce the cost per unit of production.</p> Signup and view all the answers

<p>The break-even point where a business makes just enough profit to continue operating.</p> Signup and view all the answers

<p>To determine the most efficient production level.</p> Signup and view all the answers

<p>The demand decreases.</p> Signup and view all the answers

<p>To make informed decisions about pricing and production strategies.</p> Signup and view all the answers

<p>Price elasticity of supply.</p> Signup and view all the answers

<p>Encouraging the use of recycled materials</p> Signup and view all the answers

<p>Maximizing profit</p> Signup and view all the answers

<p>Demand decreases</p> Signup and view all the answers

<p>Demand for the substitute increases</p> Signup and view all the answers

<p>To compare the cost of one good or service in terms of another</p> Signup and view all the answers

<p>It exacerbates land degradation</p> Signup and view all the answers

<p>To integrate sustainable practices into various sectors of the economy</p> Signup and view all the answers

<p>Higher prices increase supply</p> Signup and view all the answers

<p>Demand for the complement decreases</p> Signup and view all the answers

<p>To make informed decisions about production and pricing</p> Signup and view all the answers

<p>How much the quantity demanded responds to a change in price</p> Signup and view all the answers

<p>A small price change causes a significant change in quantity demanded</p> Signup and view all the answers

<p>Availability of substitutes</p> Signup and view all the answers

<p>Removal of trade barriers</p> Signup and view all the answers

<p>Exploitation of geographic advantages</p> Signup and view all the answers

<p>The capacity to increase production is limited</p> Signup and view all the answers

<p>Cross elasticity of demand</p> Signup and view all the answers

<p>Increased investment and business opportunities</p> Signup and view all the answers

<p>Negative income elasticity</p> Signup and view all the answers

<p>Increased global relationships</p> Signup and view all the answers

<p>Dominance of foreign cultures</p> Signup and view all the answers

<p>Rapid advancements in technology</p> Signup and view all the answers

<p>To minimize environmental degradation</p> Signup and view all the answers

<p>To set prices that optimize revenue</p> Signup and view all the answers

<p>The unrestricted flow of capital</p> Signup and view all the answers

<p>The responsiveness of demand to price changes</p> Signup and view all the answers

<p>Job losses in developed countries due to outsourcing</p> Signup and view all the answers

<p>All of the above</p> Signup and view all the answers

<p>Standardization of laws and regulations</p> Signup and view all the answers

<p>Accounting profit excludes opportunity costs, while economic profit includes them.</p> Signup and view all the answers

<p>To regulate environmental impact assessments</p> Signup and view all the answers

<p>To make informed decisions regarding pricing, production, and policy</p> Signup and view all the answers

<p>To evaluate the efficiency of fixed costs.</p> Signup and view all the answers

<p>Increased investment and business opportunities</p> Signup and view all the answers

<p>Significant income gap between developed and developing countries</p> Signup and view all the answers

<p>Efficient production of goods due to low production costs</p> Signup and view all the answers

<p>Output increases by a greater proportion than inputs.</p> Signup and view all the answers

<p>The additional income from selling one more unit.</p> Signup and view all the answers

<p>To increase trade between countries</p> Signup and view all the answers

<p>To maximize profits and sustainably grow in competitive environments.</p> Signup and view all the answers

<p>Increased resource depletion</p> Signup and view all the answers

<p>Improved product quality and variety</p> Signup and view all the answers

<p>The minimum profit needed for sustainability.</p> Signup and view all the answers

<p>Output increases by a smaller proportion than inputs.</p> Signup and view all the answers

<p>Exporting high-value manufactured goods</p> Signup and view all the answers

<p>To make decisions about production levels and resource allocation.</p> Signup and view all the answers

<p>TR is the total income from sales, while MR is the additional income from selling one more unit.</p> Signup and view all the answers

<p>The scale of production.</p> Signup and view all the answers

<p>Accounting profit is only concerned with explicit costs, whereas economic profit takes into account both explicit and implicit costs.</p> Signup and view all the answers

<p>It is the minimum level of output required for sustainability.</p> Signup and view all the answers

<p>It results in a decrease in average variable costs.</p> Signup and view all the answers

<p>The optimal level of output is where marginal revenue equals marginal cost.</p> Signup and view all the answers

<p>To make informed decisions on production and pricing strategies.</p> Signup and view all the answers

<p>It enables businesses to make informed decisions on pricing strategies.</p> Signup and view all the answers

<p>Returns to scale are a result of economies of scale.</p> Signup and view all the answers

<p>It is used to determine the optimal level of output.</p> Signup and view all the answers

<p>To make informed decisions on production, pricing, and investment strategies.</p> Signup and view all the answers

<p>It enables businesses to maximize profits and achieve sustainability.</p> Signup and view all the answers

<p>Trade Liberalization</p> Signup and view all the answers

<p>Facilitation of international business operations</p> Signup and view all the answers

<p>Economic growth</p> Signup and view all the answers

<p>Exploiting geographic advantages</p> Signup and view all the answers

<p>Lowering the cost of operations</p> Signup and view all the answers

<p>Increased global relationships</p> Signup and view all the answers

<p>Removal of trade barriers</p> Signup and view all the answers

<p>Economic growth</p> Signup and view all the answers

<p>The demand is inelastic and a large price change will be required to lead to a small change in quantity demanded.</p> Signup and view all the answers

<p>A decrease in the price of the complementary good will lead to an increase in the demand for the firm's product.</p> Signup and view all the answers

<p>It is an inferior good and the demand decreases as income increases.</p> Signup and view all the answers

<p>To determine the optimal quantity to produce and supply.</p> Signup and view all the answers

<p>The demand is highly elastic and a small price change will lead to a large change in quantity demanded.</p> Signup and view all the answers

<p>The price elasticity of demand measures the responsiveness of quantity demanded to a change in price, while the cross elasticity of demand measures the responsiveness of quantity demanded to a change in the price of another good.</p> Signup and view all the answers

<p>The firm has a highly elastic production capacity and is able to increase supply significantly in response to a price increase.</p> Signup and view all the answers

<p>To predict how a change in the price of one good will affect the demand for the other good.</p> Signup and view all the answers

<p>It is a luxury good and the demand increases as income increases, at a proportionally greater rate.</p> Signup and view all the answers

<p>To predict how changes in consumer income will affect the demand for their product.</p> Signup and view all the answers

<p>To integrate sustainable practices into various sectors of the economy</p> Signup and view all the answers

<p>Improving public transport</p> Signup and view all the answers

<p>The demand decreases</p> Signup and view all the answers

<p>Profit maximization</p> Signup and view all the answers

<p>Higher prices increase supply</p> Signup and view all the answers

<p>The demand for the substitute increases</p> Signup and view all the answers

<p>To compare the cost of one good or service in terms of another</p> Signup and view all the answers

<p>It exacerbates land degradation</p> Signup and view all the answers

<p>Cost and revenue are directly related, and profitability is the difference between the two</p> Signup and view all the answers

<p>To predict the impact of changes in one market on others</p> Signup and view all the answers

<p>Widening income gap between developed and developing countries</p> Signup and view all the answers

<p>To reduce the country's reliance on non-renewable energy sources</p> Signup and view all the answers

<p>Overshadowing of local cultures by dominant foreign cultures</p> Signup and view all the answers

<p>Outsourcing of jobs to regions with cheaper labour</p> Signup and view all the answers

<p>Exportation of high-value manufactured goods</p> Signup and view all the answers

<p>Threat to public health</p> Signup and view all the answers

<p>Increased competition leading to better products and services</p> Signup and view all the answers

<p>Increased industrial activity leading to environmental degradation</p> Signup and view all the answers

<p>Drives competition and innovation leading to better products and services</p> Signup and view all the answers

<p>To require environmental impact assessments for new developments</p> Signup and view all the answers

<p>Economic profit takes into account opportunity costs, while accounting profit does not.</p> Signup and view all the answers

<p>Average fixed cost decreases as quantity of output increases.</p> Signup and view all the answers

<p>Firms will produce more to take advantage of lower costs.</p> Signup and view all the answers

<p>To determine the profit-maximizing level of output.</p> Signup and view all the answers

<p>Demand increases significantly.</p> Signup and view all the answers

<p>Marginal cost is equal to average total cost at the profit-maximizing level of output.</p> Signup and view all the answers

<p>Demand for the related good decreases.</p> Signup and view all the answers

<p>To identify opportunities for cost reduction.</p> Signup and view all the answers

<p>Firms will produce more to take advantage of lower costs.</p> Signup and view all the answers

<p>Total revenue is always higher than marginal revenue.</p> Signup and view all the answers

<p>Removal of trade barriers</p> Signup and view all the answers

<p>Influence of local cultures on global lifestyles</p> Signup and view all the answers

<p>Lowering of the cost of operations and fostering innovation</p> Signup and view all the answers

<p>Standardization of laws and regulations</p> Signup and view all the answers

<p>Geographic advantages</p> Signup and view all the answers

<p>Encouragement of international trade and investment</p> Signup and view all the answers

<p>Increased business opportunities and economic development</p> Signup and view all the answers

<p>Making the world more interconnected</p> Signup and view all the answers

<p>Widening of the income gap between developed and developing countries</p> Signup and view all the answers

<p>To identify opportunities for economic growth and specialization</p> Signup and view all the answers

<p>Insufficient implementation of environmental impact assessments</p> Signup and view all the answers

<p>To reduce environmental degradation through penalties and incentives</p> Signup and view all the answers

<p>There is a significant income gap between developed and developing countries</p> Signup and view all the answers

<p>Job losses in developed countries</p> Signup and view all the answers

<p>Access to new markets and broadening of the customer base</p> Signup and view all the answers

<p>To identify opportunities for economic growth and specialization</p> Signup and view all the answers

<p>Environmental degradation and loss of ecosystems</p> Signup and view all the answers

<p>To reduce environmental degradation and promote sustainable development</p> Signup and view all the answers

<p>To promote sustainable development</p> Signup and view all the answers

<p>Higher prices encourage increased production and supply</p> Signup and view all the answers

<p>An increase in demand for the original good</p> Signup and view all the answers

<p>By integrating sustainable practices into various sectors of the economy</p> Signup and view all the answers

<p>Profit maximization</p> Signup and view all the answers

<p>An increase in demand for the substitute</p> Signup and view all the answers

<p>It affects resource allocation in the economy</p> Signup and view all the answers

<p>A decrease in the cost per unit</p> Signup and view all the answers

<p>To promote sustainable development</p> Signup and view all the answers

<p>A slight decrease in demand</p> Signup and view all the answers

<p>It is elastic.</p> Signup and view all the answers

<p>High mobility of resources.</p> Signup and view all the answers

<p>It will increase by 5%.</p> Signup and view all the answers

<p>To set the optimal price to maximize revenue.</p> Signup and view all the answers

<p>Medicine.</p> Signup and view all the answers

<p>It will increase by 5%.</p> Signup and view all the answers

<p>A decrease in the price of the complementary good will decrease the cross elasticity of demand.</p> Signup and view all the answers

<p>Necessity of the good.</p> Signup and view all the answers

<p>To identify opportunities for product bundling.</p> Signup and view all the answers

<p>Normal goods have a positive income elasticity of demand, while inferior goods have a negative income elasticity of demand.</p> Signup and view all the answers