YEAR 11 ECONOMICS REVISION QUIZZ

The Chinese government is concerned about the level of poverty and the need for more resources in low-income regions of the country. As a result, it is increasing its expenditure in those regions and reducing it in high-income regions. Which economic concept does this government policy illustrate?

• diseconomies of scale

• market forces

• opportunity cost

• specialisation

The diagram shows a production possibility curve (PPC) for country Z. Government policy is to move the economy from point X to point Y on the PPC.

What is the most likely effect of this policy?

• Living standards rise in the short run.

• More capital goods are produced.

• Prices of consumer goods increase.

• Total output increases.

An airline needs people and equipment. These can be divided into factors of production. What is allocated to its correct factor of production?

• A

• B

• C

• D

The table shows examples of changes in an economy. Which combination has two microeconomic changes?

• A

• B

• C

• D

The diagram shows the supply of motor vehicles. What will cause a shift in the supply curve from S1 to S2?

• a decrease in the profits of suppliers

• a fall in the real incomes of customers

• a more efficient assembly line using robots

• a rise in the cost of motor vehicle components

The diagram shows the demand for and supply of plastic bags. The original equilibrium price is P. How would the introduction of a unit tax on plastic bags be shown?

• Demand would shift to D2.

• Demand would shift to D3.

• Supply would shift to S2.

• Supply would shift to S3.

In a free market, market failure causes a misallocation of resources. What is not an example of market failure?

• external costs of production

• internal diseconomies of scale

• over-consumption of demerit goods

• under-consumption of merit goods

Which organisations can directly fund the growth of firms?

• A

• B

• C

• D

Which advantage do coins have that makes them more suitable than paper banknotes to act as money?

• They are more divisible.

• They are more durable.

• They are more portable.

• They are more recognisable.

A firm sells 50 units at a price of $3 per product. What is the firm’s total revenue and average revenue?

• A

• B

• C

• D