knowledge test Flashcards
Which one of the following is NOT a cause of a shift in the market demand for a product
- A change in the price of a complement
- A change in consumer incomes
- A change in the price of the product
- A change in fashions
A change in the price of the product
correct statements about index numbers
- Index numbers express data and are used to compare data overtime
- With index numbers relative changes can be compared such as rates of growth
- Index numbers have no units and are just a number
- Index numbers helps to avoid using negative numbers
A movement on a PPF curve towards making more capital goods could mean:
There has been a trade off with living standards being worse now but possibly better or maintained in the long run
If a country had a GDP of £200,000 and a population of 100,000, what would there GDP per capita be?
£2
If in an Economy, Savings are £2 billion, investment is £16 billion, taxes are £12 billion, imports are £16 billion, government spending is £5 billion and exports are £3 billion. What is the net injection or leakage?
£6 billion leakage
What is the difference between real and nominal data?
Real considers inflation but nominal does not
T or F: Quantity demanded is the same as demand
False
There are two main sectors/agents that make up the circular flow these are
Individuals/households and firms
The price of a smartphone is currently £200, and the quantity demanded is 4m. Next year the price falls to £180 and the quantity demanded rises to 6m. Calculate the PED.
-5
describe a capital good
Goods brought by firms or individuals which are used to generate income by creating consumer goods or services
If the population in the base year (index 100) 2015 was 120,000 people and the population in 2016 was 180,000 what would the index number for 2016 be?
150
Define a policy conflict
A trade-off, the more of one policy that is achieved the worse another policy may perform
The price of a daily newspaper today is £1.50p, and the quantity demanded is 2m. Next year the price falls by 30p and the quantity demanded rises to 2.2m. Calculate the PED.
-0.5
What is the percentage change if in 2016 the index number was 125 and in 2017 it was 150?
20%
Which one of the following is NOT a cause of a shift in the market demand for a product
- A change in the price of a complement
- A change in consumer incomes
- A change in the price of the product
- A change in fashions
A change in the price of the product
T or F: An extension of demand can be caused by incomes rising
False
What does the circular flow diagram represent
The level of national income and flow of money within the economy and how the actions of different agents may affect this
How is inflation mainly measured?
CPI (consumer price index)
Which of the following would cause the demand curve to shift left?
- The price of the good increasing
- The price of the good falling
- The price of a substitute falling
- The price of a complement falling
The price of a substitute falling
define a lag indicator
Provides information about the past and possibly current state of the economy
the four main macroeconomic objectives
- Economic growth
- Price stability/stable inflation
- Satisfactory balance of payments
-Low unemployment or full employment
The market demand curve for a football match will rise when
A rise in incomes assuming a football match is a normal good
The PPF curve represents:
The long run productive potential of the economy
An increase in demand from D to D1 would be caused by all of the following except
- A rise in incomes
- A rise in the price of substitutes
- An increase in advertising
- A fall in the price of the good
A fall in the price of the good
