Economics Quiz: Wages and Investment Concepts

A general increase in the prices of goods and services over a period of time.

The acquisition of assets to generate income or build capital stock.

Tangible assets used for production, such as machinery and tools.

Intangible assets like patents, copyrights, and brand equity.

The price paid for using land or other fixed resources for a limited period.

The price paid to own a factor of production and use it for its entire lifetime.

A price floor set by law, ensuring workers receive a minimum wage.

If the minimum wage is above the equilibrium wage, it leads to a surplus of labor (unemployment).

The act of levying taxes by a government to generate income for essential expenses like public services and infrastructure.

Direct taxes are levied directly on income and wealth of individuals and businesses, with examples being taxes on personal income and corporate profits.

Indirect taxes are levied on goods and services, with examples being taxes on goods and services, and taxes on specific products.

A progressive tax system imposes a higher tax rate on higher incomes, making it more burdensome for wealthy individuals.

A proportional tax system imposes the same tax rate on all income levels, regardless of their income size.

A regressive tax system places a disproportionately higher burden on low-income earners, effectively taking a larger portion of their income.

The relationship between investment and interest rates is inverse - higher interest rates discourage investment due to increased borrowing costs, whereas lower interest rates stimulate investment.

Increased rental costs, limited affordability, and insecure tenancy are some economic problems associated with high rental prices.

A decrease in investment, arising from higher borrowing costs, opportunity costs, and lower expected returns, is an economic problem related to high interest rates.

The buying power of a currency weakens compared to other currencies due to higher inflation.

The belief about future price changes that influence current decisions.

The higher the price of a house, the fewer people want to buy it.

Factors that influence the demand for housing.

The amount of housing demanded exceeds the available supply.

A period of rapid growth in the housing market, often driven by economic prosperity.

A sharp decline in the housing market, often after a boom, due to economic slowdown.

The price of a house is directly related to its rental value.

The point where the quantity demanded equals the quantity supplied.

A situation where the quantity supplied exceeds the quantity demanded.

A situation where the quantity demanded exceeds the quantity supplied.

A minimum price set by law that sellers cannot go below.

A maximum price set by law that sellers cannot go above.

The sensitivity of demand to changes in price.

A measure of how much the supply of a good changes in response to a change in its price.

A market structure where a few firms dominate the industry, each having a significant influence on the market.

Products in an oligopoly can be similar (homogeneous) or different (differentiated).

Obstacles that make it difficult or expensive for new firms to enter an oligopoly.

Decisions made by one firm in an oligopoly will affect the other dominant firms.

When prices in an oligopoly tend to remain relatively stable over time. Although, firms might engage in strategic pricing behaviors to gain advantage.

The heart of any business; understanding their needs is key for success.

The source of materials used in production.

Competitors that share the same qualities and compete for the same customers.

Reliable suppliers ensure consistent product quality and delivery, enabling businesses to operate smoothly. For example, a bakery relying on a consistent flour supplier can guarantee timely product delivery.

Understanding competitors' strengths and weaknesses allows businesses to identify opportunities for improvement and innovation. For example, Shopee and Lazada constantly innovate their platforms to attract more users.

Substitute products or services offer consumers alternatives when the price of one good increases. For example, if the price of coffee rises, consumers might switch to tea.

The SWOT Analysis helps businesses evaluate their internal strengths and weaknesses in relation to external opportunities and threats. This provides insights into their current position and strategic direction.

Strengths, Weaknesses, Opportunities, Threats. A common business analysis tool used to identify internal and external factors affecting an organization.

TOWS Analysis is a strategic tool that matches internal factors (Strengths and Weaknesses) with external factors (Opportunities and Threats) to generate strategic options.

The TOWS Matrix suggests matching strengths with opportunities (SO), using strengths to counter threats (ST), overcoming weaknesses by leveraging opportunities (WO), and minimizing weaknesses while avoiding threats (WT).

Using your strengths to maximize opportunities. For example, if a company has a strong brand reputation, it could use this strength to launch a new product.

A measure of how much the quantity demanded of a good changes in response to a change in its price. Higher PED means consumers are very sensitive to price changes.

A measure of how much the quantity supplied of a good changes in response to a change in its price. Higher PES means producers can quickly adjust production.

The characteristics that determine how firms interact and compete in a market. Think of it as the 'rules of the game' for businesses.

A market with many buyers and sellers, identical products, and easy entry and exit. Firms are price takers, meaning they can't influence the market price.

A market with a single seller who controls the entire supply of a unique product. High barriers to entry prevent competition, allowing the monopolist to set the price.

A market with many sellers offering differentiated products, allowing for some price control. There's competition, but not perfect.

The point where a firm earns just enough revenue to cover its costs. No profit, no loss.

The amount of profit a firm makes beyond its costs. This profit can be positive or negative.