Economic Transactions Quiz

What is the most likely cause of the shift in the supply curve for strawberries from S1 to S2?

A drought in strawberry-growing regions

Which of the following is most likely to result in a boom?

Lower tax rates increase disposable income

When leakages are greater than injections, the economy is more likely to

Have an economic downturn

What does ASIC stand for?

Australian Securities and Investments Commission Signup and view all the answers

If oil and coal are substitutes, then an increase in the price of oil will:

shift the demand curve for coal to the right Signup and view all the answers

The law of supply states that when

Price goes up, supply goes up Signup and view all the answers

Define the term describing a general rise in prices across all sectors of the economy.

Inflation Signup and view all the answers

What is the term that describes the interaction of the forces of demand and supply that determines the price of a good or service?

Market equilibrium Signup and view all the answers

What is the market that connects savers and borrowers in an economy called?

Financial market Signup and view all the answers

Explain the difference between an expansion in demand and an increase in demand.

An expansion in demand refers to a shift in the entire demand curve, while an increase in demand refers to a movement along the demand curve. Signup and view all the answers

Identify one factor that may have caused the decrease in demand for beef.

Health concerns about red meat consumption Signup and view all the answers

Using the diagram provided, show the effect of a decrease in demand for beef.

The demand curve shifts to the left, intersecting the supply curve at a lower quantity and price. Signup and view all the answers

What is the best definition of the price mechanism?

The interaction of supply and demand to determine market price. Signup and view all the answers

Describe the characteristics of an economy at point A on a diagram.

Employment is at a high level. Signup and view all the answers

Which of the following is not an injection from the circular flow model?

Taxation Signup and view all the answers

Economic Transactions Quiz

Questions and Answers

What is the most likely cause of the shift in the supply curve for strawberries from S1 to S2?

Which of the following is most likely to result in a boom?

When leakages are greater than injections, the economy is more likely to

What does ASIC stand for?

If oil and coal are substitutes, then an increase in the price of oil will:

The law of supply states that when

Define the term describing a general rise in prices across all sectors of the economy.

What is the term that describes the interaction of the forces of demand and supply that determines the price of a good or service?

What is the market that connects savers and borrowers in an economy called?

Explain the difference between an expansion in demand and an increase in demand.

Identify one factor that may have caused the decrease in demand for beef.

Using the diagram provided, show the effect of a decrease in demand for beef.

What is the best definition of the price mechanism?

Describe the characteristics of an economy at point A on a diagram.

Which of the following is not an injection from the circular flow model?

Provide an example of an investment flow in the five-sector circular flow model.

What is the measure of the general movement of prices in the economy?

What happens to market price when there is excess demand?

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