Abingdon Pre A-level Economics - lesson 3

Please classify the following newspaper headline as either microeconomic or macroeconomic: ‘Space X is valued at $36bn after its first manned mission’.

• Microeconomic

• Macroeconomic

In the video you saw aeronautical engineers testing rockets. To an economist these resources would be classified as

• Land and Capital

• Labour and Capital

• Land and Labour

• Entrepreneurship and Capital

If demand for space travel becomes increasingly popular and more of society’s (scarce) resources are devoted to increasing capacity for space travel, economists would say that the market is responding to

• Government regulation

• The demands of the workforce

• Producer sovereignty

• Consumer sovereignty

700 people have already booked a flight on Virgin Galactic. On average, each ticket costs $250,000 and each flight can carry 6 passengers. If Virgin Galactic run 50 flights in 2021, what will their total revenue be?

• $1.5m

• $175m

• $75m

• It cannot be calculated from the data provided

According to the article that you read about the space market, costs are falling for which of the factors of production used in space exploration?

• Land and Capital

• Labour and Capital

• Land and Labour

• Entrepreneurship and Capital

According to the article that you read about the space market, barriers to entry to the space market are

• Rising

• Falling

• Staying the same

• Zero

At the start of today’s video, it mentioned the role of the ‘private sector’ in space travel and exploration. Quickly do some research to find out what is meant by the private sector. Enter your answer below.

Sometimes economists also talk about the ‘public sector’ too. Again, quickly do some research to find out what is meant by the public sector. Enter your answer below.

If barriers to entry into space travel diminish over time and demand for space travel rises, then entrepreneurs will expect to make high profits. What do you think will happen to these high profits in the long run? Explain why.

The article from the investment bank UBS highlighted five reasons why demand for space travel and exploration may rise in the decades ahead. If you had to pick one of the five, which do you think would be most profitable and why? Note there is no ‘correct’ answer to this question.