Revision MCQ

A. a decrease in demand with a decrease in supply

B. a decrease in demand with an increase in supply

C. an increase in demand with a decrease in supply

D. an increase in demand with an increase in supply

A. greater than 1

B. Unitary

C. Less than 1

D. Zero

A. attempts to achieve price stability

B. issues credit cards

C. provides loans to producers

D. provides savings accounts for consumers

A. perfectly elastic

B. relatively elastic

C. relatively inelastic

D. unitary elastic

A. A higher price gives firms the ability to increase profits.

B. A higher price gives firms the incentive to reduce total fixed costs.

C. A higher price will encourage consumers to buy more coffee increasing total revenue

D. A higher price will encourage less firms to enter the market to supply coffee.

D. The supply curve will become perfectly elastic.

A. The supply curve will shift to the left, indicating a decrease in supply.

B. The supply curve will shift to the right, indicating an increase in supply.

C. The supply curve will remain unchanged.

C. Equilibrium price increases, quantity increases.

B. Equilibrium price increases, quantity decreases.

D. Equilibrium price remains the same, quantity increases.

A. Equilibrium price decreases, quantity increases.

A. An increase in consumer income.

B. A rise in the price of tea, a substitute good.

D. A change in consumer preferences away from coffee.

C. A decrease in the price of coffee.

A. an increase in revenue for the universities from fee-paying students

B. an increase in tax revenue from a more productive labour force

C. an increase in graduate employment as a percentage of the working population

D. an increase in wages for graduates

A. Money allows people to borrow and lend.

B. Money allows people to save their surplus income.

C. Money is used to buy goods and services.

D. Money is used to compare the worth of different goods and services.