Edexcel A'level intro to microeconomics rev quiz

Which of the following is not a function of money

• Measure of value

• Medium of exchange

• Method for deferred payment

• Improvement to Barter

Das Capital was written by

• Marx

• Hayek

• Smith

• Keynes

Which is not a benefit of free market economy?

• Greater consumer choice

• More innovation

• More competition

• Unequal income distribution

Neo classical theory assumes

• Workers maximise profits and consumers maximise utility

• Firms maximise profits and consumer maximise utility

• Consumers minimise utility and firms maximise profits

• Workers maximise incomes and firms minimise profits

An example of complementary goods

• Butter and margarine

• Public transport and cars

• Pizza and Garlic Bread

• Carrots and Parsnips

Which of the following will make PES price inelastic?

• Lengthy production process

• Large volumes of stock available

• Excess capacity

• Time

If the demand for used cars decreases after the price of a new car falls, used cars and new cars are

• inferior goods
• substitute goods
• complementary goods
• normal goods

If the demand for a good increases when people's incomes increase, 

• the good is an inferior good
• the law of demand is violated
• the good's demand curve must be upward sloping
• the good is a normal good

Read the following two statements:

1. Nation A produces cars more efficiently than it can grow food crops.

2. Nation A produces food and buys cars from Nation B.

What principle of economics is illustrated by these two statements?

• Laws of Supply and Demand

• Scarcity

• The Factors of Production

• Specialization

Countries benefit by specializing in the production of a limited number of goods.
How does this situation encourage trade among countries?

• Since a country cannot produce all of its needs, it makes sense for it to specialize in what it can produce efficiently, then trade with another country that specializes in what it needs.
• It does not encourage trade because all countries can produce whatever they want.
• Countries have unlimited resources so they don't need to specialize.
• Because Mr. Randa and Mr. Tonkli said so!