10 Economics Revision

Type of unemployment that occurs when workers skills do not match those needed for the jobs available.

• Seasonal Unemployment

• Structural Unemployment

• Frictional Unemployment

• Cyclical Unemployment

Which option is the least likely economic consequence of high unemployment ?

• A fall in the level of consumption due to lower earnings

• A fall in the level of national income

• Higher government expenditure on welfare benefits

• An increase in the rate of inflation

Which of the following is NOT an example of fiscal policy?

• provision of merit goods

• taxation on polluting business

• lowering interest rates

• progressive income tax

The term "derived demand" means...

• demand for secondary products only

• demand that is dependent on government supplying the product

• demand that arises because the supply of the good is reduced

• demand that arises because there is demand for another good.

What is the main role of government intervention in the economy?

• To discourage enterprise and reduce foreign investment

• To protect the workforce and the environment and to promote competition

• To ensure that business is conducted in such a way that local businesses always win

• To prevent consumers from accessing what the economy produces

Factors that make it difficult for new firms to enter a market are called

• Barriers to entry
• Factors of production
• Limited supply
• Monopolistic Outlook

Which of the following would be an example of a fixed cost on a farm?

• Mortgage on the land

• Cost of seed

• Fuel to operate machinery

• Fertilizer

If a firm does not produce any output, its total cost is equal to

• Zero

• Its fixed costs

• Its variable costs

• Its marginal cost

Price elasticity of demand measures:

• the responsiveness of the quantity demanded of a good to a change in income

• the responsiveness of the quantity demanded of a good to a change in consumers’ preferences

• the responsiveness of the quantity demanded of a good to a one per cent change in price

• the reduction in the quantity demanded of a good when the price is reduced

• the responsiveness of the quantity demanded of a good to a change in the price of other goods

The price elasticity of demand for a vertical demand curve is:

• perfectly elastic

• perfectly inelastic

• unitary elastic

• elastic

• inelastic