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IGCSE Economics - Edexcel - Section A - The Market System

Total questions: 25

Worksheet time: 12mins

Name
Class
Date
1.

The Economic Problem is trying to allocate the world's finite resources to satisfy the worlds infinite wants … which is NOT a question an economic system should answer

a)

What to Produce?

b)

How to Produce?

c)

Who to Produce for?

d)

When to Produce

2.

Which statement best describes Opportunity Cost

a)

The next best alternative chosen

b)

The next best alternative forgone

c)

The best alternative chosen

d)

The worst alternative forgone

3.

Which points on the PPC / PPF represent the economy operating at maximum output

a)

C & D

b)

C

c)

D

d)

A & C

e)

A & B

4.

Which point/s on the PPF / PPC represent an economy operating with unemployed resources

a)

D

b)

A

c)

C

d)

B

e)

None of the above

5.

Which point/s on the PPF / PPC represent a level of production which is unattainable due to insufficient resources

a)

A

b)

B

c)

C

d)

D

e)

None of the above

6.

A movement between which two points would create an opportunity cost of: Xb - Xa

a)

C to D

b)

D to C

c)

A to B

d)

B to A

e)

A to C

7.

Which of the following is NOT likely to cause Economic Growth (an outward shift of the PPF/PPC)

a)

Increase Quantity of Resources

b)

Increase Quality of Resources

c)

Discovering new resources

d)

Discovering new ways to exploit existing resources

e)

Depletion of existing resources

8.

Resources are in limited supply, they will run out one day because they are (a)   ?

9.

Consumers, just never stop wanting things this is because their wants are (a)   ?

10.

To make a (a)   decision means to make a decision based on clear thought or reason

11.

The money which a business receives from sales of goods/services to customers is known as (a)  

12.

A line on a graph which shows how much will be bought at any given price is known as a (a)   curve

13.

A line on a graph which shows how much will be sold at any given price is known as a (a)   curve

14.

There is said to be an (a)   relationship between price and quantity demanded

15.

There is said to be a (a)   relationship between price and quantity supplied

16.

Which of the following is a factor affecting Demand

a)

Advertising

b)

Production Costs

c)

Indirect Taxes

d)

Subsidies

17.

Which of the following is NOT a factor of demand

a)

Price of complementary goods

b)

Price of Substitutes

c)

Subsidies for Producers

d)

Consumer Incomes

18.

Which THREE of the following are factors of demand

a)

Consumer incomes

b)

Demographic Changes

c)

Fashion & Tastes

d)

Indirect Taxes

19.

An increase in the cost of microprocessors is likely to do what to the supply of of computers

a)

Shift supply to the right

b)

Shift supply to the left

c)

Shift demand to the right

d)

Shift demand to the left

20.

What is likely to happen to the Equilibrium Price & Quantity for Product A following an increase in its production costs?

a)

Price Falls & Quantity Rises

b)

Price Falls & Quantity Falls

c)

Price Rises & Quantity Rises

d)

Price Rises & Quantity Falls

21.

What is likely to happen to the Equilibrium Price & Quantity for Product A following and increase in Producer Subsidies

a)

Price Rises & Quantity Rises

b)

Price Rises & Quantity Falls

c)

Price Falls & Quantity Rises

d)

Price Falls & Quantity Falls

22.

What is likely to happen to the Equilibrium Price & Quantity for Product A following an increase in advertising for Product A

a)

Price Rises & Quantity Rises

b)

Price Rises & Quantity Falls

c)

Price Falls & Quantity Rises

d)

Price Falls & Quantity Falls

23.

What is likely to happen to the Equilibrium Price & Quantity for Product A following a FALL in the price of one of its SUBSTITUTES

a)

Price Rises & Quantity Rises

b)

Price Rises & Quantity Falls

c)

Price Falls & Quantity Rises

d)

Price Falls & Quantity Falls

24.

What is likely to happen to the Equilibrium Price & Quantity for Product A following a FALL in the price of one of its COMPLEMENTS

a)

Price Rises & Quantity Rises

b)

Price Rises & Quantity Falls

c)

Price Falls & Quantity Rises

d)

Price Falls & Quantity Falls

25.

What is likely to happen to the Equilibrium Price & Quantity for Product A following the introduction of new technology in the production process

a)

Price Rises & Quantity Rises

b)

Price Rises & Quantity Falls

c)

Price Falls & Quantity Rises

d)

Price Falls & Quantity Falls