ECONOMICS FINAL REVISION

WHY DOES A TRANSITION ECONOMY HAVE HIGH UE AND HIGH INFLATION

• TRANSITION ECONOMIES ALWASY LEAD TO STAGFLATION

• REMOVING CEILING PRICES LEAD TO INFLATION AND THE PROFIT MOTIVE FOR PRIVATE FIRMS CAUSE UE

• REMOVING FLOOR PRICES LEAD TO INFLATION AND THE PROFIT MOTIVE FOR PRIVATE FIRMS CAUSE UE

• GOVERNMENT THAT REPLACE COMMUNISM DONT CARE ABOUT UNEMPLOYMENT AND LIEK TO SPEND BIG

WHETHER TO BE VEGETARIAN , VEGAN OR NORMAL IS AN EXAMPE FO WHCH ECONOMIC QUESTION

• THE WHAT

• THE WHO

• THE HOW

• THE NO COW OPTION

Of the three major economic questions, which of the following is the best example of a "How?" question?

• Should we produce more heavy fleece coats? 
• Should we collect tolls on turnpikes using human toll collectors or mechanized toll machines? 
• Should we build log homes or build factories from bricks? 
• Should we spend more on health care?

WHEN THE PRICE OF FISH INCREASES SIGNIFICANTLY THE PRICE OF BEEF WOULD BE EXPECTED TO

• FALL

• STAY THE SAME

• INCREASE

• NOT ENOUGH INFORMATION TO TELL

THE ELASTICITY OF DEMAND FOR FISH IS NOT BASED ON

• THE COST AS A % OF INCOME

• THE SUPPLIES KEPT BY PRODUCERS TO CATER FOR INCREASED DEMAND

• BEING A STAPLE OF FAMILY MEALS

• NONE OF THESE OPTIONS

The medication known as insulin has seen a decrease in demand of 2%, while the price has increased 10%

• 5 inelastic

• 5 elastic

• .2 inelastic

• .2 elastic

The market for goldfish is competitive. From year 1 to year 2, both the price and the quantity of goldfish increase. This is most likely caused by:

• An increase in the supply
• A decrease in the demand
• An increase in the demand
• A decrease in both the demand & the supply

THE OBJECTIVES OF A GOOD MARKET FOR CONSUMERS ARE

• LIMITED MARKET FAILURE , MACROECONOMIC STABILITY AND FULL EMPLOYMENT

• LOW PRICES , QUALITY AND COMPETITION

• CHEAP PRICES , CONSUMER LOYALTY AND LIMITED GOVERNMENT INTERVENTION

• ALL OF THESE OPTIONS

THE OBJECTIVES OF A GOOD MARKET FOR PRODUCERS ARE

• SUPERNORMAL PROFIT, MARKET CONCENTRATION, MONOPOLY POWER

• COLLUSION , ABNORMAL PROFITS , BRAND LOYALTY

• BARRIERS TO ENTRY , ACCESS TO TECHNOLOGY , EFFICIENCY,PROFITABILTY

• ALL OF THESE OPTIONS

WHEN DEMAND IS GREATER THAN SUPPLY - THE MOST LIKELY IMPACT WILL BE

• PRICES WILL RISE IN THE SHORT RUN AND FALL IN THE LONG RUN

• PRICES WILL RISE IN THE SHORT RUN AND IN THE LONG RUN

• PRICES WILL FALL IN THE SHORT RUN AND FALL IN THE LONG RUN

• PRICES WILL FALL IN THE SHORT RUN AND IN THE LONG RUN