G9: H1 Econ: Semester Exam review

Among the following, which are examples of free goods? Select all that apply.

• free donut

• free vaccination from a public hospital

• water from a river

• sunlight

A firm is deciding whether to produce apples or oranges for the next 3 years. The estimated revenue for apples is $6000 per year and for oranges is $5000 per year. What is the opportunity cost of producing oranges?

• $1000

• $6000

• $5000

• $18000

The diagram shows a PPC for an economy. What is the reason for the economy moving from point X to point Y?

• decreased unemployment in industries producing apples

• improvement in technology used to produce oranges

• increased productivity of workers producing oranges

• increased resource allocation to the production of oranges

What is not held constant when drawing a demand curve for a good or service?

• the price of substitutes

• consumers’ incomes

• tastes and preferences

• the price of the good or service

1) Draw an arrow showing the direction of the shift of the supply curve based on the condition below.

2) Mark the curves S1 and S2 depending on your chosen direction.

CONDITION: Show the shift in the supply curve for New Zealand's airlines when there is a decrease in costs of New Zealand's airlines.

The price of tea​ (a)   when the price of its substitute​​​​ (b)   .

• increases
• has decreased
• is stable
• has increased

A store changes the price of its product and finds that its revenue increases.

Which combination of price change and PED would have caused this?

• P: falls

  PED: between 0-1

• P: falls

  PED: equal to 1

• P: rises

  PED: between 0-1

• P: rises

  PED: greater than 1

What is a characteristic of or could occur in a market economic system? Select all that apply.

• excessive pollution

• government setting minimum wages

• monopoly

• private ownership of business

A demerit good is something that ​ (a)   ,​ (b)   ,​​ (c)   .

• is harmful to consumers
• provides negative externalities
• yields high social costs
• is beneficial to consumers
• yields positive externalities
• gives higher private costs than social costs

What is likely to cause a contraction in demand for a firm’s fruit drink?

• warm weather

• increase in the cost of producing the drink

• another fruit drink store closing

• successful marketing campaign for the drink