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Questions and Answers
Which of the following is NOT a factor of production
Which of the following is NOT a factor of production
The market demand curve is
The market demand curve is
When the price of cashew nuts rose from £1 per kg to £2 per kg, the quantity demanded for cashew nuts decreased from 20,000 kgs to 10,000 kgs. Using your knowledge of price elasticities, the price and quantity demanded of cashew nuts, are
When the price of cashew nuts rose from £1 per kg to £2 per kg, the quantity demanded for cashew nuts decreased from 20,000 kgs to 10,000 kgs. Using your knowledge of price elasticities, the price and quantity demanded of cashew nuts, are
The manager of Starfire Plc determined that for every 1% increase in price of their product, there was a 2% decrease in the demand for walker crisps. Which of the following is likely to be their product?
The manager of Starfire Plc determined that for every 1% increase in price of their product, there was a 2% decrease in the demand for walker crisps. Which of the following is likely to be their product?
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Suleiman and his colleagues got a new job at the Deira City Centre Mall that allowed their income to rise by 25%. Consequently, their demand curve for branded closes appeared to shift to the right. This shift suggest that:
Suleiman and his colleagues got a new job at the Deira City Centre Mall that allowed their income to rise by 25%. Consequently, their demand curve for branded closes appeared to shift to the right. This shift suggest that:
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Choose the correct option. Total utility will fall whenever
Choose the correct option. Total utility will fall whenever
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Nicola spends all his income on cinema films and soda. Films cost £6 each and sodas cost £0.65 a can. In a diagram with films on the horizontal axis and sodas on the vertical axis, Nicola's budget line
Nicola spends all his income on cinema films and soda. Films cost £6 each and sodas cost £0.65 a can. In a diagram with films on the horizontal axis and sodas on the vertical axis, Nicola's budget line
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Which one of the following defines constant returns to scale?
Which one of the following defines constant returns to scale?
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If year 1 is the base year, and the price index for year 2 and year 3 are 105 and
103 respectively, the inflation rate in years 2 and 3 are:
If year 1 is the base year, and the price index for year 2 and year 3 are 105 and 103 respectively, the inflation rate in years 2 and 3 are:
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From the question above, which of the following statements is correct
From the question above, which of the following statements is correct
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Study Notes
Microeconomics
- Entrepreneurship is NOT a factor of production.
Demand Curve
- The market demand curve is downward sloping, meaning that as price increases, quantity demanded decreases.
Elasticity of Demand
- If the price of cashew nuts rises from £1 per kg to £2 per kg, the quantity demanded decreases from 20,000 kgs to 10,000 kgs, indicating an elastic demand.
- A 1% increase in price of Walker crisps leads to a 2% decrease in demand, indicating an elastic demand.
Demand and Supply Shift
- A 25% increase in income shifts the demand curve for branded clothes to the right, suggesting that branded clothes are a normal good.
Consumer Behavior
- Total utility will fall whenever the marginal utility of a good becomes negative.
Budget Analysis
- Nicola's budget line will have a slope of -6/0.65, indicating the trade-off between films and sodas.
Production and Scaling
- Constant returns to scale occur when a proportionate change in inputs leads to an equal proportionate change in output.
Inflation Rate
- If year 1 is the base year, and the price index for year 2 and year 3 are 105 and 103 respectively, the inflation rate in years 2 and 3 are 5% and 3% respectively.
- The statement "The inflation rate in year 2 is higher than in year 3" is correct.
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Description
Test your knowledge of economics fundamentals with this quiz that explores the different factors of production. Identify the correct answer to determine which option is not a factor of production. Improve your understanding of economic concepts and principles.
