NEC preparation 6

Which firm is in the tertiary sector?

• bread bakery

• fruit grower

• meal delivery

• road builder

What is a benefit to a worker of being a member of a trade union?

• access to advice

• guaranteed employment

• opportunity to work extra hours

• payment of subscriptions

A firm employs 10 workers. Each worker is paid a weekly wage of $200 and produces 50 goods per week. What is the average cost of labour per good produced?

• $0.4

• $4

• $20

• $200

How would advertising a good result in a retail firm increasing its market share?

• A It will improve the personal service in its shops.

• It will increase the firm’s costs.

• It will reduce demand for competitors’ products

• It will result in diversification in the firm

What describes the total revenue of a firm?

• fixed costs plus variable costs

• income from sales minus total costs

• quantity of goods sold multiplied by unit price

• variable costs divided by output

What is fiscal policy?

• government decisions on money supply and interest rates taken to influence total demand

• government decisions on spending and taxation designed to influence total demand

• government measures designed to influence total supply in the economy

• government regulation of the foreign exchange rate to influence imports

What is the money supply?

• the total quantity of foreign currency available within the economy

• the total quantity of money available within the economy

• the total quantity of money issued by the central bank

• the total quantity of money within commercial banks

The table shows the Consumer Prices Index (CPI) of a country for five years.

Which statement about the country is correct?

• It faced deflation in year 2.

• It faced deflation in year 3

• It faced inflation in year 4.

• It faced inflation in year 5.

Economic growth can be defined as

• a reduction in a country’s rate of inflation.

• an increase in a country’s exports.

• an increase in a country’s population.

• an increase in a country’s productive capacity.

Definition of "Scarcity"

• The study of how households and firms make decisions and how they interact in markets

• The limited nature of society’s resources

• The property of distributing economic prosperity uniformly among the members of society

• A visual model of the economy that shows how dollars flow through markets among households and firms