GCSE Economics 2.2 Past Exam Questions

Excess demand is corrected in a market by changes in

• price

• quantity

• resource allocation

• taxes

Market demand is the total demand for goods and services as a result of

• adding together all individual demand

• adding together direct and indirect demand

• changes in prices at each quantity

• consumers’ willingness and ability to buy

Demand is defined as

• the desire to purchase a good or service over time

• the relationship between the quantity of a good or service sold and consumer incomes

• the relationship between the total revenue a firm receives and the price

• the willingness and ability to purchase a good or service

Which of the following is the most likely effect of an increase in advertising on the market for breakfast cereals?

• The market demand curve shifts to the left

• The market demand curve shifts to the right

• The market supply curve shifts to the left

• The market supply curve shifts to the right

A flower seller increases her prices by 10% and finds that it has no effect on the amount that she sells. This suggests that demand for the flowers is:

• perfectly price elastic

• perfectly price inelastic

• price inelastic

• unitary price elastic

What will usually lead to a shift in the demand curve to the right?

• An increase in consumers’ incomes

• A technological improvement which reduces the costs of production

• The government introduces a tax on the product

• The supply curve shifts to the right

Which of the following will occur if there is a large increase in the demand for housing?

• A leftward shift in the demand curve for builders

• A leftward shift in the supply curve of builders

• A rightward shift in the demand curve for builders

• A rightward shift in the supply curve of builders

The diagram shows the market for rented accommodation. Which of the following statements about the diagram is correct?

• A price of r is above the market price of rented accommodation

• As the price of rented accommodation increases supply will increase

• If r is the current price of rented accommodation some people will not be able to rent any accommodation

• The supply of rented accommodation is price elastic

The diagram shows the demand curve for a good. Which area represents the total amount paid by consumers when the price is A?

• AEB

• OABC

• OABD

• OEBC

The price elasticity of demand for a good is unitary. What will happen if prices rise?

• Expenditure on the good will fall

• Expenditure on the good will rise

• The quantity demanded will fall

• The quantity demanded will rise