Economics (Micro)

Front 1

All of the following are correct except

Back 1

The resource allocation mechanism within the planned economy is the price mechanism/system.

Front 2

If the cross Price Leicester City of demand is 2.5 then the two goods must be

Back 2

Substitutes

Front 3

If the firms marginal revenue is greater than its marginal cost then it should:

Back 3

Increase output

Front 4

The vertical distance between average cost curve (ATC) an average variable cost curve (AVC):

Back 4

Decrease as output increases.

Front 5

Say that the cost of flour rises

Back 5

The supply of bread will fall

Front 6

The following is not a factor of production?

Back 6

Money

Front 7

Use the following statements answer the question:

I. During the last 12 months average car prices have fallen. The stimulator microeconomics.

II. Installation for the past 12 months have been 3.5 per cent. This statement relates to macroeconomics.

III. strong sales in the housing market have prevented the bank of England from reducing interest rates. This statement relates to both macro economics and microeconomics.

Back 7

I, II and III are true.

Front 8

Using the following statements to answer this question:

I. A firm operates above the production possibility frontier is efficient.

II. And expansion of the economy's productive capacity would be reflected in an outward movement of the production possibility frontier.

III. When you make a choice there will always be an opportunity cost.

Back 8

I and I are true and III is false.

Front 9

If the price is set above the market equilibrium level:

Back 9

It creates a market surplus

Front 10

For the UK consumers, the income elasticity of demand for travel abroad is 1.1. Suppose that next year, consumer incomes grow by 1.5 per cent. What is the change in the quantity of travel abroad demanded next year?

Back 10

1.65%

Front 11

When marginal costs are below average total cost,

Back 11

Average total costs are falling

Front 12

If marginal cost equals two average total costs

Back 12

Average total cost are minimised

Front 13

If there are implicit costs of production

Back 13

Accounting profit will exceed economic profit.

Front 14

All cost are variable in the long run (true or false)

Back 14

True

Front 15

If the demand for a good is elastic and the price falls then...

Back 15

The total revenue of the suppliers will rise.

Front 16

Profits are maximised where

Back 16

Marginal revenue = marginal cost