Podcast
Questions and Answers
Which of the following is not related to the 3 key economic questions?
Which of the following is not related to the 3 key economic questions?
- Where should these products be produced? (correct)
- How do we produce these products?
- Who consumes the products?
- What products do we produce?
Which of the following is an example of a normative question?
Which of the following is an example of a normative question?
- How does a college education affect a person’s productivity and earnings?
- If the government increases the minimum wage, how many workers will lose their jobs?
- Should the government subsidize a college education? (correct)
- How will an increase in unemployment benefits affect the unemployment rate?
What does the Latin expression 'ceteris paribus' mean in the context of studying the relationship between two variables?
What does the Latin expression 'ceteris paribus' mean in the context of studying the relationship between two variables?
- Neither of those two variables is allowed to change.
- We consider that some factors are unknown.
- Keeping all other variables fixed. (correct)
- Both variables are treated as unpredictable.
Which economic principle is most involved in the analysis of scarcity using a production possibility curve?
Which economic principle is most involved in the analysis of scarcity using a production possibility curve?
What is the opportunity cost of running the business described in the essay question?
What is the opportunity cost of running the business described in the essay question?
What is the slope of a curve calculated as?
What is the slope of a curve calculated as?
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?
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?
Which of the following is the correct definition of price elasticity of demand?
Which of the following is the correct definition of price elasticity of demand?
If supply is perfectly elastic, what is the price elasticity of supply?
If supply is perfectly elastic, what is the price elasticity of supply?
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?
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?
If a 4% increase in price results in an 8% decrease in quantity demanded, what is the price elasticity of demand?
If a 4% increase in price results in an 8% decrease in quantity demanded, what is the price elasticity of demand?
