WorksheetsIB Econ Unit 2 2nd half review
Total questions: 10
Worksheet time: 5mins
Which of the following is not a non-price determinant of demand?
Income
The price of substitutes and compliments
Supply
Tastes and preferences
Which of the following is not a function of the price mechanism?
Incentives
Signaling
Rationing
Consumer and producer surplus
Each of the following are determinants of PES except for:
Ability to store the product
Time
Whether the good is luxury or necessity
Mobility of factors of production
Which of the following should not be a reason for government intervention in markets?
To influence consumption
To support the incomes of wealthy households
To influence production
To raise government revenue
Which of the following is not a form of government intervention in markets?
Price controls, including price ceilings and price floors
Providing services
command and control legislation
Direct taxes, including income tax
Market failure can be best described as:
When the market fails to allocate resources at the point where MSB=MSC
When the production of demerit goods produces negative externalities
When the market produces less public and merit goods than the socially optimum level
Common access resources are those goods and services which ..............
Produce positive externalities to third parties when consumed
Goods or services which are non-excludable and non-rivalrous
Goods or services which are non-excludable
Which of the following government services would also be a public good?
A bed in a hospital
military protection
fish in a pond
Which of the following explains why public goods can only be provided by governments?
free rider problem
sustainability issues
issues with international cooperation
There is a rise in the popularity of a good or service. At the same time the firms production costs rise. Explain the effect on demand and supply for the product.
a rise in supply and a fall in demand
a rise in both supply and demand
a fall in both supply and demand
a fall in supply and a rise in demand
