N5 Economics of the Market

Which one of these is a good?

• dentist

• supermarket

• trainers

• teacher

Which one of these is a need?

• water

• milk

• irn bru

• coffee

Which of these is the return to the factor enterprise?

• rent

• wages

• profit

• interest

Which of the following is an example of an organisation in the secondary sector of industry?

• farm

• supermarket

• bakery

• bank

The movement from Point A to Point B on the graph shows

• a decrease in demand

• an increase in quantity demanded

• a decrease in quantity demanded

• an increase in demand

What would most likely cause the movement from S to S1?

• An increase in input prices

• An improvement in technology

• A decrease in the price of a good

• An increase in income

According to the graph what occurs at a price of £7?

• There would be a surplus of 20 units

• The market would be in equilibrium

• There would be a surplus of 40 units

• There would be a shortage of 40 units

What will happen in the rice market if buyers are expecting higher prices in the near future?

• The supply of rice will increase

• The demand for rice will increase

• The demand for rice will decrease

• The demand for rice will be unaffected

What best refers to the situation when the price of a good or service changes?

• There is an extension/contraction along the demand curve

• Demand shifts in the opposite direction

• Demand shifts in the same direction

• Supply shifts in the opposite direction

According to the graph, what are the equilibrium price and quantity?

• £7, 20

• £5, 40

• £7,60

• £3, 60