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WorksheetsPED-Mixed Economic system
Total questions: 10
Worksheet time: 10mins
what is an advantage of the market economic system?
It aims for equality of income
It ensures the provision of defence and law and order
It gives an incentive to produce
It reduces pollution and congestion
In a country where the demand for petrol is price-inelastic, the incidence of any increase in petrol tax will be mainly on ...
the company that refines the oil
the motorist who buys the petrol
the petrol station that sells the petrol
the wholesale company that stores the petrol
what is an example of market failure?
a growth of competition
an existence of scarcity
a spread of pollution
a surplus of production in the short-term
Which action by the operators of an airport directly reduces external costs?
the stopping of night flights
the building of a new runway
the payment of a productivity bonus
the reduction of charges for landing aircraft
how are economic decisions determined in a pure market system?
by a mixture of market forces and government regulation
by central planners of production and consumption
by government regulation of the price mechainsm
by the force of demand and supply
which person would wish to encourage the use of the market system
someone who believes that people have equal living standards
someone who believes that people have equal freedom of action
someone who believes that profit maximisation is wrong
someone who believes that the government should correct peoples' bad behaviuor
what is an example of an external cost?
a company's transport costs
the cost of bringing about a merger
the cost of buying components from supplier
the cost of industrial pollution
What is found in a mixed economy but not a free market economy?
banks
division of labour
price controls
profit motive
A shop sells chocolate birthday cakes. When the price was $15 it sold 40 cakes. It reduced the price to $10 and sold 60 cakes. What can be concluded from this?
The firm will make less profit because the price has fallen
the firm will make more profit because sales have increased
the price elasticity is inelastic because demand only increased by 50%
there is unit price elasticity because the firm's revenue remained the same after the price change
In 2010, a major oil leak from an oil rig affected many people living around the Gulf of Mexico. What type of market failure did they experience
monopoly exploitation
negative externality
price discrimination
rising tax burden
