Questions and Answers
Which of the following is not related to the 3 key economic questions?
Where should these products be produced?
Which of the following is an example of a normative question?
Should the government subsidize a college education?
What does the Latin expression 'ceteris paribus' mean in the context of studying the relationship between two variables?
Keeping all other variables fixed.
Which economic principle is most involved in the analysis of scarcity using a production possibility curve?
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What is the opportunity cost of running the business described in the essay question?
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What is the slope of a curve calculated as?
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If an economy moves from producing 20 units of mobiles and 4 units of computers to producing 15 mobiles and 5 computers, what is the opportunity cost of the 5th computer?
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Which of the following is the correct definition of price elasticity of demand?
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If supply is perfectly elastic, what is the price elasticity of supply?
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If the elasticity of demand for a product is 0.5 (inelastic demand), what will happen to total revenue as the firm increases the price?
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If a 4% increase in price results in an 8% decrease in quantity demanded, what is the price elasticity of demand?
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