Podcast
Questions and Answers
A good with an income elasticity of demand (YED) of -0.7 is best described as:
A good with an income elasticity of demand (YED) of -0.7 is best described as:
- A luxury good
- A Giffen good
- A normal necessity
- An inferior good (correct)
What is the direct impact of a subsidy on electric vehicles on the supply curve?
What is the direct impact of a subsidy on electric vehicles on the supply curve?
- Shift the supply curve right (correct)
- Shift the demand curve left
- Increase equilibrium price
- Cause a movement along the supply curve
Which of these is NOT a defining characteristic of public goods?
Which of these is NOT a defining characteristic of public goods?
- Government provision
- Rivalry (correct)
- Non-excludability
- Free-rider problem
In the short run, a firm's supply is likely to be inelastic primarily due to:
In the short run, a firm's supply is likely to be inelastic primarily due to:
What would the Engel curve for rice likely depict in a developing economy?
What would the Engel curve for rice likely depict in a developing economy?
Which factor would generally increase the price elasticity of supply for a product?
Which factor would generally increase the price elasticity of supply for a product?
The primary objective of a tax levied on cigarettes is to address which of these?
The primary objective of a tax levied on cigarettes is to address which of these?
In a mixed economy, resource allocation primarily relies on:
In a mixed economy, resource allocation primarily relies on:
Which of the following scenarios would illustrate the concept of opportunity cost?
Which of the following scenarios would illustrate the concept of opportunity cost?
A country's economy is operating on its Production Possibility Curve (PPC). What does this imply?
A country's economy is operating on its Production Possibility Curve (PPC). What does this imply?
Which of the following factors would lead to a shift inward of the Production Possibility Curve (PPC)?
Which of the following factors would lead to a shift inward of the Production Possibility Curve (PPC)?
Which of the following goods is an example of a merit good?
Which of the following goods is an example of a merit good?
A country implements a policy of strict environmental regulations on manufacturing industries. This policy would most likely lead to which of the following?
A country implements a policy of strict environmental regulations on manufacturing industries. This policy would most likely lead to which of the following?
What is the defining characteristic of a free good?
What is the defining characteristic of a free good?
Which of the following best describes the relationship between cars and petrol?
Which of the following best describes the relationship between cars and petrol?
A village economy produces only rice and wheat. If it is operating inside its Production Possibility Curve (PPC), which of the following statements is true?
A village economy produces only rice and wheat. If it is operating inside its Production Possibility Curve (PPC), which of the following statements is true?
Flashcards
Opportunity Cost
Opportunity Cost
The cost of the next best alternative foregone when making a decision.
Free Goods
Free Goods
Goods that have zero opportunity cost because they are abundant, like sunlight.
Economic Systems
Economic Systems
Different types of economies categorized by how resources are allocated: free market, planned, and mixed.
PPC (Production Possibility Curve)
PPC (Production Possibility Curve)
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Underutilized Resources
Underutilized Resources
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Outward Shift of PPC
Outward Shift of PPC
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Veblen Goods
Veblen Goods
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Substitute Goods
Substitute Goods
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Income Elasticity of Demand (YED)
Income Elasticity of Demand (YED)
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Subsidy effect on supply
Subsidy effect on supply
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Characteristics of public goods
Characteristics of public goods
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Inelastic supply in the short run
Inelastic supply in the short run
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Engel Curve for rice
Engel Curve for rice
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Price Elasticity of Supply (PES)
Price Elasticity of Supply (PES)
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Tax on cigarettes
Tax on cigarettes
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Potential GDP
Potential GDP
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