Economics IGCSE Review

Of the four factors of production, which of these are not a factor of production?

• Land

• Capital

• Development

• Labour

Which factor does not affect the demand for labour?

• Demand for a product

• Productivity of labour

• Migration

• Availability of substitutes

The term "derived demand" means...

• demand for secondary products only

• demand that is dependent on government supplying the product

• demand that arises because the supply of the good is reduced

• demand that arises because there is demand for another good.

What is the main role of government intervention in the economy?

• To discourage enterprise and reduce foreign investment

• To protect the workforce and the environment and to promote competition

• To ensure that business is conducted in such a way that local businesses always win

• To prevent consumers from accessing what the economy produces

A subsidiary is...

• A company that is mostly owned by another company

• A company that is at least half-owned by a bigger company

• A company that is combined with another company to make a conglomerate

• A company of which less than 25% is owned by another company

Which of the following is a possible cause of diseconomies of scale?

• similar businesses in the area

• easy access to suppliers

• greater distance between senior staff and shop floor workers

• abundance of skilled labour

What of the following is a feature of a monopoly?

• There is plenty of competition

• Price is set freely by the consumers

• The product sold is unique

• There are very few barriers to entry

The introduction of a minimum wage in a labour market will:

• raise employment and lower the wage rate

• raise the wage rate and increase employment

• raise the wage rate and decrease employment

• reduce the wage rate but boost employment

The term "economies of scale" refers to ...

• the average costs of production decreasing as a firm expands

• the average costs of production rising as a firm expands

• the average costs of production remaining the same as a firm expands

• the average costs of production at first decreasing, then increasing, as a firm expands

A market dominated by a few large firms is called:

• Oligopoly

• Labour Market

• Monopoly

• Government intervention