Revision Quiz

Which of the following does NOT represent the term ' ceteris paribus'?

• It refers to a situation where ‘other things remain equal’.

• It allows economists to simplify a situation where everything else is unchanged.

• It allows economists to see changes of all variables at a time.

• Economists can model the effects of one change at a time.

_________________ refers to a situation where individuals and firms, regions and entire economies concentrate on producing some goods and services rather than others.

• Globalisation

• Specialisation

• Rationing

• Division of labour

A mixed economy can best be described as one in which

• consumer goods and capital goods are produced.

• production is determined by entrepreneurs.

• agricultural and manufactured goods are produced.

• production is determined by the central government and the market mechanism.

Which of the points in the diagram indicates inefficiency?

• A

• B

• C

• D

What can cause a movement from point C to point A?

• employment of idle resources

• discovery of new resources

• increase in number of labour

• higher investment in capital

What does the movement from A to B represent?

• Scarcity

• Opportunity cost

• Choices

• Efficiency

A product is ____________________ if other consumers cannot be prevented from using or consuming it.

• excludable

• non-excludable

• rival

• non-rival

Public goods are

• excludable and rival

• non-excludable and non-rival

• excludable and non-rival

• non-excludable and rival

Which of these is a distinctive characteristic of a merit good?

• It is overprovided in the market.

• It is underprovided in the market.

• It is funded by the government.

• It is only given to those who deserve it.

Demand is price inelastic when the percentage change in quantity demanded is ____________ than the percentage change in price.

• smaller

• larger