Economic Revision Group 4

Which one of these below isn't internal considered economies of scale?

• Purchasing economies

• Financial economies

• Quantitative economies

• Technical economies

What is capital-intensive production

• Utilizing a lot of labour in order to produce goods and services

• Utilizing machinery and technology in order to produce goods and services

• Utilizing special business managers to produce goods and services

• Using natural resources to produce more output

What is the name of the economic system where the Government has no intervention at all?

• Market economy

• Planned economy

• Macro economy

• Mixed economy

What is one feature of a mixed economy

• Government controls prices

• Supply and demand purely determines the price

• There is a mix of public and private sector

• Inequalities in income and wealth

Why do some goods have high PES

• They are a necessity

• They have low stocks of finished goods

• They have high spare capacity

• They are basic goods

Why do some goods have high PED?

• They have a high production time

• They are a necessity

• They have high spare capacity

• They have a lot of substitutes

What is a conglomerate merger?

• merger with the same industry, different production level

• merger with different industry, same production level

• merger with a bigger corporation in the same industry

• merger with different industry and different production level

Write down a brief definition of opportunity cost

(a)  

What is the difference between Variable costs and Fixed costs?

(a)