WorksheetsEconomics IGCSE Term 1
Total questions: 10
Worksheet time: 5mins
What is a feature of a market economy?
Government planning
Everyone has a job
Producers respond to consumer demand
Resources are allocated according to need
Which event would cause an increase in demand for train tickets?
A decrease in population
An decrease in the price of bicycles
An decrease in disposable income
More advertising by the rail companies
What is meant by equilibrium price?
The lowest possible price for a product
The most profitable price for a product
The price which equates the demand and supply for a product
The price which equates the numbers of buyers and sellers of a product
What is a complement ?
Being nice to someone
A good that is used in place of something
A luxury good
A good that is demanded together
What is meant by contraction in Demand?
A reduction in demand due to a rise in the price of the product
A reduction in demand due to a fall in the income of the population
A rise in demand due to a rise in the price of a substitute product
A rise in demand due to a fall in the price of a complement
What is found in a mixed economy but not a free market economy?
Banks
Division of labour
Price controls
Profit motive
Which movement shows an increase in the use of existing resources to increase production of both CD players and digital televisions?
X to W
X to Z
Z to W
Z to Y
What is the price elasticity of demand for shirts?
Greater than 1
1
Less than 1
Zero
What would cause the price to change from P1 to P2?
An increase in income
An increase in costs of production
Good weather
An increase in technology
What does an economist mean by capital?
the coordination of the factors of production
natural resources that will not be replaced
using workers to work in firms
Machines, tools and factories
