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WorksheetsEconomics A-Level Quiz
Total questions: 10
Worksheet time: 5mins
What is an ad valorem tax?
A tax based on the quantity of goods sold
A tax imposed on luxury goods only
A direct tax on income
An indirect tax dependent on the value of the good
What does 'ceteris paribus' mean?
All other things remaining the same
The market is in equilibrium
Supply equals demand
Prices are flexible
What is consumer surplus?
The difference between the price the consumer is willing to pay and the price they actually pay
The total utility derived from consumption
The excess supply in the market
The total amount spent by consumers
What is the definition of a command economy?
An economy based on barter trade
An economy with no government intervention
An economy where resources are allocated by the state
An economy where resources are allocated by the market
What is the economic problem?
The problem of trade deficits
The problem of unemployment
The problem of inflation
The problem of scarcity
What is a free rider principle?
When producers charge less than the market price
When consumers pay more than the market price
When people benefit from resources they do not pay for
When the government provides subsidies
What is a positive externality of consumption?
When the private costs of producing a good are greater than the social costs
When the private benefits of consuming a good are larger than the social benefits
When the social benefits of consuming a good are larger than the private benefits
When the social costs of producing a good are greater than the private costs
What is the definition of opportunity cost?
The cost of producing one more unit of a good
The value of the next best alternative forgone
The total cost of production
The cost of capital goods
What is a subsidy?
A government payment to lower production costs
A price ceiling set by the government
A tax imposed on goods
A fee charged for pollution
What is the price elasticity of demand (PED)?
The responsiveness of supply to a change in income
The responsiveness of demand to a change in income
The responsiveness of supply to a change in price
The responsiveness of demand to a change in price
