REVISION - YEAR 11 (BOP, FX, ...)

Which is not a supply-side policy?

• investments in education and training

• tax cuts and subsidies

• research and development

• interest rates

Utility theory is a concept used in economics to explain:

• Producer costs and production techniques

• Government policies and regulations

• Consumer preferences and decision-making

• Market equilibrium and price determination

The law of diminishing marginal utility states that:

• Marginal utility increases as consumption increases

• Total utility is maximized when marginal utility is zero

• Total utility is independent of marginal utility

• Marginal utility decreases as consumption increases

Which of the following is not a type of utility?

• Form utility

• Time utility

• Marginal utility

• Place utility

An increase in the price of a complement good leads to a decrease in the demand for the original good.

• True

• False

Elastic demand means that a small change in price leads to a relatively large change in quantity demanded.

• True

• False

An increase in consumer income leads to a decrease in demand for inferior goods.

• True

• False

Price legislation is a government intervention that sets maximum prices for certain goods or services.

• True

• False

Price legislations are commonly implemented during times of inflation to prevent excessive price increases.

• True

• False

Price legislations tend to create shortages in the market because they set prices below the equilibrium level.

• True

• False