Applied Economics UNIT 1

What is the primary characteristic of a competitive market?

• The resources are controlled mainly by the state.

• A large number of buyers and sellers.

• Prices are set by the government.

• Products are decided based on traditions.

What happens to the supply curve when production costs increase?

• The curve shifts to the left.

• The curve shifts to the right.

• The curve becomes steeper.

• The curve becomes flatter.

In Economics, scarcity refers to:

• The lack of money in an economy.

• The limited availability of resources relative to unlimited wants.

• The shortage of luxury goods.

• The absence of government regulation.

If you have to pay your monthly phone bill, which function of money are you using to settle a past debt?

• medium of exchange

• unit of account

• store of value

• 1. standard of deferred payment

1. When you buy snacks in the school cafeteria using cash, which function of money are you using to complete the transaction?

• To store value over time

• To facilitate trade and transactions

• To measure the value of goods and services

• To serve as a legal tender

Which of the following is a determinant of demand?

• consumer income

• production cost

• no. of sellers

Which of the following would cause a shift in the demand curve for coffee?

• price of milk tea

• consumer income

• consumer preferences

• ALL OF THE ABOVE

Your business is deciding whether to fund a tech startup or a local craft market. The tech startup requires significant investment and expertise but offers high returns, while the craft market requires less investment but provides steady returns. To make the best decision, which order of questions should you ask yourself to evaluate the options effectively?

• What are my resources, What to produce, How to produce, For whom to produce?

• 1. For whom to produce, What to produce, How to produce, What are my resources?

• 1. What to produce, How to produce, For whom to produce, What are my resources?

• 1. How to produce, For whom to produce, What to produce, What are my resources?

Your school’s entrepreneurship club has $5,000 to allocate between developing a new mobile app or organizing a series of community outreach events. The mobile app needs a significant investment and technical expertise but could attract a lot of users and generate high returns. The community outreach events require less money and fewer resources but have a steady local impact. To make the best decision about how to use the $5,000, which sequence of questions should you follow? (1pt)

• Assess available resources, Determine the project goals, Plan the execution, Identify the target audience

• Identify the target audience, Determine the project goals, Plan the execution, Assess available resources

• Determine the project goals, Plan the execution, Identify the target audience, Assess available resources

• Plan the execution, Determine the project goals, Identify the target audience, Assess available resources

Your team is developing a business plan for a new milk tea brand aimed specifically at Grade 12 ABM students. What are you going to do to FIRST to get the market demand schedule and demand curve for the new milk tea brand? (3pts)

• Plot the points and connect the dots to create a demand curve for your target market.

• Create an online survey which includes various price options to see how much ABM students are willing and able to pay.

• Summarize how many students are willing to buy at each price through a table that contains the price and quantity demanded as labels.