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Economics Exam Questions and Answers

The document consists of a series of economics questions covering topics such as production possibility curves, monopoly definitions, cost calculations, price elasticity of demand, and the impact of natural disasters on supply curves. It includes multiple-choice questions, definitions, calculations, and analysis prompts. The questions require knowledge of economic principles and the ability to apply them to various scenarios.

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11 views4 pages

Economics Exam Questions and Answers

The document consists of a series of economics questions covering topics such as production possibility curves, monopoly definitions, cost calculations, price elasticity of demand, and the impact of natural disasters on supply curves. It includes multiple-choice questions, definitions, calculations, and analysis prompts. The questions require knowledge of economic principles and the ability to apply them to various scenarios.

Uploaded by

yemyatthu22ns
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Answer ALL questions. Write your answers in the spaces provided.

1. Which one of the following does a point on a production possibility curve (PPC) represent?
(1)
A. Where capital goods should be produced
B. How the production of all goods can be increased
C. Government revenue from production
D. A given amount of resources being fully employed

2. Define the term monopoly. (1)

3. A firm’s monthly total costs are $2 640 and monthly fixed costs are $900. Which one of the
following equals $1740? (1)

a. Price
b. Profit
c. Average total costs
d. Total variable costs

4. What is meant by the term division of labour? (2)

5. Alfie provides a dog‐walking service to dog owners in his local area. After a successful first year he
increased prices by 1.5% and quantity demanded fell by 1.1%. Calculate, to two decimal places, the
price elasticity of demand (PED) for Alfie’s dog‐walking service. You are advised to show your
working. (2)

6. Using the diagram below, draw the likely effects on the market for cars of the introduction of more
effective technology in production. Label the new curve, the new equilibrium price and the new
equilibrium quantity. (3)
7. State ONE reason why a supply curve will shift to the left. (1)

8. What is the formula for calculating average cost? (1)

9. Figure shows selected financial data of a firm selling shoes.

Calculate the profit or loss for the firm for each pair of shoes. You are advised to show your working.
(2)

10. A firm sells its products at a price of € 75 per unit and has a cost per unit of € 35. Calculate the
total revenue for the firm when its monthly sales are 250 units. You are advised to show your
working. (2)
12. Define the term entrepreneur. (1)

13. Describe one reason why water is a factor of production. (2)

15. The demand for meals over three lunchtimes at a café in Austria is shown below.

Calculate the excess supply of meals if the quantity supplied during these three days totalled 261. You
are advised to show your work. (2)

16. Car production is most likely to take place in which sector of the economy? (1)

(a) Primary
(b) Secondary
(c) Tertiary
(d) Mixed

17. A powerful typhoon destroyed property on the island of Lamma in Hong Kong. Owners of
restaurants that were damaged think it may take two or three months for them to fully reopen. This
was due to flood damage and replacing equipment that was washed away. The repair costs for one
restaurant owner were an estimated HK$300 000 to HK$400 000.

With reference to the data above and your knowledge of economics, analyse how natural factors such
as adverse weather may cause a shift in the supply curve. (6)

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