National 5 Economics - Demand, Supply & Markets

What are the main topics covered in the National 5 Economics notes?

• Demand, Supply, and Markets

• Inflation, Taxes, and Trade

• Banking, Investment, and Currency

• Employment, Wages, and Labor Laws

What type of graph is typically used to illustrate the relationship between supply and demand?

• Bar graph

• Line graph

• Supply and demand graph

• Pie chart

What is demand, sometimes called effective demand?

• The quantity of a good or service consumers are willing and able to buy at a particular price in a certain period of time.

• The total amount of goods produced in a market.

• The price at which a good is sold in the market.

• The amount of goods a company is willing to produce.

According to the law of demand, what happens when the price of a good increases?

• The demand for the good increases.

• The demand for the good decreases.

• The demand for the good remains the same.

• The supply of the good decreases.

What does a demand schedule show?

• The relationship between supply and demand.

• The relationship between price and demand.

• The relationship between production and consumption.

• The relationship between cost and profit.

What is a demand curve?

• A curve showing the relationship between supply and demand.

• A curve showing the relationship between price and quantity demanded.

• A curve showing the relationship between cost and revenue.

• A curve showing the relationship between profit and loss.

What causes a movement along the demand curve?

• A change in consumer preferences

• A change in price

• A change in technology

• A change in income

What is the Income Effect?

• Buying more as income decreases

• Buying less as price decreases

• Buying less as price increases

• Buying more as price increases

What happens according to the Substitution Effect when the price of a good rises?

• Consumers buy more of the same product

• Consumers switch to a cheaper alternative

• Consumers stop buying any products

• Consumers buy the same amount

What does the Law of Diminishing Marginal Utility state?

• Satisfaction increases with each additional unit consumed

• Satisfaction remains constant with each additional unit consumed

• Satisfaction decreases with each additional unit consumed

• Satisfaction is unrelated to the number of units consumed