Economics questions Top of Form [pic][pic][pic] 1. Scarcity: [pic]A) exists because resources are unlimited while human wants are limited. [pic]B) means we are unable to have as much as we would like to have. [pic]C) will likely be eliminated as technology continues to expand. [pic]D) is not an issue addressed in economics. 2. Which of the following is true of resources? [pic]A) Resources are inputs used to produce goods and services. [pic]B) Labor is the mental and physical capacity
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Interest Interest is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets. It is most commonly the price paid for the use of borrowed money‚ or money earned by deposited funds. When money is borrowed‚ interest is typically paid to the lender as a percentage of the principal‚ the amount owed to the lender. The percentage of the principal that is paid as a fee over a certain period of time (typically one month or year) is called the interest rate. A
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Revision questions 1. Define the term “consumer rationality” and outline the conditions that must be fulfilled for consumer rationality 2. Using indifference curves derive the demand curve for a normal good. 3. With the help of a diagram distinguish between the income effect and substitution effect of change in the price of a normal good. 4. Using an illustration‚ explain the concept of market equilibrium
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6)Explain how scarcity and choice go together? 3 Marks ANS- Resources refer to all the factors of production. Scarcity means that resources which produce goods and services are less in relation to their demand. Though these resources are scarce they can be used for producing different goods. Due to scarcity of these resources‚ an economy cannot produce all the goods and services as required by its citizens. So some wants will have to remain unfulfilled. Therefore choice has to be made which means
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Minas Poulos – Buyer Behaviour 2nd Edition Multiple Choice Test Bank Which of the following is closest to a product described as high involvement? 1. Detergent 2. Paper stapler 3. Sun glasses 4. None of the above Which of the following best represents the order of consumer decision making? 1. Information search; final purchase; evaluation of alternatives; 2. Problem/need recognition; information search; evaluation of alternatives; final purchase 3. Post purchase;
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Summer Reading: Naked Economics Chapter 1: The Power of Markets 1. What are the two basic assumptions that economists make about individuals and firms? The two basic assumptions that economists make is that individuals do what they can to make themselves as well off and prosperous as possible and that firms attempt to maximize profits. 2. What is the role and significance of prices in the market economy? With demand rising‚ the price of a particular item will usually go up. This means
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Questions economic policy • Point out the reasons why it’s worth an economy has a low inflation Low inflation promotes the efficient use of productive resources . Conversely ‚ when inflation is high time some individuals and some of the economic resources are invested in the search for mechanisms to fend off inflation. For example ‚ when inflation is high‚ companies should allocate more resources to the management of its portfolio to avoid financial losses . These are unproductive uses that
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MANAGERIAL ECONOMICS ASSIGNMENT Question 1 a. Explain the production possibilities frontier (PPF). [2 marks] b. Analyse what it means for the PPF to be bowed out from the origin (curved)‚ and what it means for the PPF to be a straight line. [3 marks] c. State the Law of Increasing Opportunity Cost and explain why it holds. [3 marks] [TOTAL: 8 MARKS] Question 2 a. “As
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This study attempts to explain the application of Gardner’s Theory of Multiple Intelligence to the Malaysian school system‚ how its application can influence some students to perform better than others‚ and to also identify what recommendations can be made to change or improve the current system. Gardner’s theory proposed that intelligence shouldn’t be measured and restricted to just one’s ability to pass conventional Intelligence Quotient (I.Q.) tests‚ but rather that intelligence comprises of at-least
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Bibliography: Senn‚ J.A. Information Technology in Business; Principles‚ Practices‚ and Opportunities. Upper Saddle River‚ NJ: Prentice-Hall‚ Inc.‚ 1998
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