Review Grade 9

What is always a feature of a mixed economy?

• All capital goods are produced in the public sector.

• Resources are used in the public and the private sector.

• The allocation of all resources is determined by the price mechanism.

• The public sector is larger than the private sector.

A woman playing a quiz game starts with no money, but correctly answers the question that is worth $4000. The next question is worth $10 000 but if she answers incorrectly she will leave the game with no money. What is her opportunity cost of choosing to answer the $10 000 question if her answer is incorrect?

• nothing

• $4000

• $6000

• $10000

What will increase the level of specialisation in an economy?

• A computer manufacturer takes over an advertising company.

• A retail store issues its own credit card.

• A travel agent provides transport to the airport.

• A vehicle assembler reduces its range of vehicles.

Why do bank notes function as money?

• They are durable.

• They are generally acceptable.

• They count as legal tender.

• They have intrinsic value.

What is usually a function of a trade union?

• It advertises the products that the members make.

• It appoints company employees.

• It negotiates with employers for increased wages.

• It negotiates with suppliers for reduced costs of materials.

‘International companies have made substantial investments in computer production in India. India is now a major centre of the world computer industry. Profit margins are high since labour costs are a tenth of those in the USA.’

What does this suggest is the reason for companies locating in India rather than in the USA?

• access to cheap land

• availability of capital investment

• availability of investment funds

• competitive wage rates

To whom does the central bank usually make loans?

• individuals

• limited companies

• the government

• trade unions

When will a trade union be most effective in pursuing its members' interests?

• The economy is in recession with rising unemployment.

• The employers have few orders for the product.

• The government passes a law to increase competition in the labour market.

• The members' wages make up a small part of total costs.

The major oil producers sometimes try to raise the price of oil. How would this be shown on a demand and supply diagram?

• a movement along the demand curve to the right

• a shift in the supply curve to the right

• a shift in the demand curve to the left

• a shift in the supply curve to the left

If ‘Sunshine Oranges’ were successfully advertised with the statement ‘They help you live longer’, which would be likely to occur?

• price elasticity of demand falls; total revenue falls

• price elasticity of demand falls; total revenue rises

• price elasticity of demand rises; total revenue falls

• price elasticity of demand rises; total revenue rise