Basic Economic Concepts Quiz

A Dubai company specializes in exporting high-quality dates because of their unique taste and high demand worldwide. This demonstrates:

• Absolute advantage

• Comparative advantage

The UAE government must decide whether to allocate more funds for tourism or education. This decision highlights the concept of:

• Opportunity cost

• Scarcity

The UAE introduces a new free zone to attract international businesses. This is an example of:

• Economic incentives

• Marginal analysis

A UAE-based oil company decides to invest in renewable energy. This decision shows:

• Command economy

• Marginal analysis

A new factory opens in Ras Al Khaimah, producing both cement and bricks. If they produce more cement, brick production decreases. This situation is explained by:

• Circular flow model

• Production Possibilities Curve

During Ramadan, supermarkets in the UAE reduce prices for essential food items. This change reflects:

• Price elasticity of demand

• Consumer preferences

If the price of petrol rises in the UAE, people are likely to use public transport more. This relationship shows:

• Substitutes

• Complements

A Sharjah electronics store offers discounts, causing an increase in TV sales. This situation represents:

• Change in demand

• Change in quantity demanded

In Dubai, the demand for luxury villas rises, but the supply cannot meet the demand quickly. What will happen to prices?

• Prices will increase.

• Prices will decrease.

A Sharjah-based bakery lowers the price of bread, but its revenue decreases. This indicates that the demand for bread is:

• Inelastic

• Elastic