IGCSE Economics - Supply and Demand

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

• Land

• Capital

• Development

• Labour

What is a feature of a market economy?

• Government planning

• Everyone has a job

• Producers respond to consumer demand

• Resources are allocated according to need

Which event would cause an increase in demand for train tickets?

• A decrease in population

• An decrease in the price of bicycles

• An decrease in disposable income

• More advertising by the rail companies

What is a complement ?

• Being nice to someone

• A good that is used in place of something

• A luxury good

• A good that is demanded together

What is meant by contraction in Demand?

• A reduction in demand due to a rise in the price of the product

• A reduction in demand due to a fall in the income of the population

• A rise in demand due to a rise in the price of a substitute product

• A rise in demand due to a fall in the price of a complement

What would cause the price to change from P1 to P2?

• An increase in income

• An increase in costs of production

• Good weather

• An increase in technology

What does an economist mean by capital?

• the coordination of the factors of production

• natural resources that will not be replaced

• using workers to work in firms

• Machines, tools and factories

What is scarcity?

• When there is not enough of something.

• what you give up in order to get what you want most.

• the amount of a good or service that is available.

• How much people want the good or service.

The want or willingness a consumer has to purchase a good or a service is called?

• shortage
• supply
• price
• demand

The amount of goods or services available for a producer to sell is called?

• supply
• demand
• producer
• consumer