Section 2-1 (C5-C10)

Front

What is mixed economy?

Back

one in which there is both a private and a public sector

Front

A country changes from a planned to a market economy. What effect will this have?

Back

a decrease in government officials

Front

Which event would cause an increase in demand for petrol? Options: an increase in concern for the environment, an increase in the tax on diesel, a decrease in disposable income, a decrease in population size

Back

an increase in the tax on diesel

Front

What is meant by a contraction in demand?

Back

a reduction in demand due to a rise in the price of the product

Front

Which event would cause the demand curve for air travel to shift to the left? Options: a fall in the safety of sea travel, a fall in the cost of air fuel, a rise in the price of foreign holidays, a rise in the size of population.

Back

a rise in the price of foreign holidays

Front

Which feature is a characteristic of a market economy?

Back

Producers respond automatically to changes in consumer demand.

Front

What is meant by equilibrium price?

Back

the price which equates the demand for and supply of a product

Front

A market is initially in disequilibrium. The price then falls to restore the market to equilibrium. What will happen to demand and supply as this movement occurs? Demand Supply

Back

extend
contract