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AS economics > knowledge test > Flashcards

knowledge test Flashcards

1
Q

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

A change in the price of the product

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2
Q

correct statements about index numbers

A
  • 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
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3
Q

A movement on a PPF curve towards making more capital goods could mean:

A

There has been a trade off with living standards being worse now but possibly better or maintained in the long run

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4
Q

If a country had a GDP of £200,000 and a population of 100,000, what would there GDP per capita be?

A

£2

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5
Q

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?

A

£6 billion leakage

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6
Q

What is the difference between real and nominal data?

A

Real considers inflation but nominal does not

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7
Q

T or F: Quantity demanded is the same as demand

A

False

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8
Q

There are two main sectors/agents that make up the circular flow these are

A

Individuals/households and firms

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9
Q

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.

A

-5

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10
Q

describe a capital good

A

Goods brought by firms or individuals which are used to generate income by creating consumer goods or services

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11
Q

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?

A

150

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12
Q

Define a policy conflict

A

A trade-off, the more of one policy that is achieved the worse another policy may perform

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13
Q

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.

A

-0.5

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14
Q

What is the percentage change if in 2016 the index number was 125 and in 2017 it was 150?

A

20%

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15
Q

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

A change in the price of the product

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16
Q

T or F: An extension of demand can be caused by incomes rising

A

False

17
Q

What does the circular flow diagram represent

A

The level of national income and flow of money within the economy and how the actions of different agents may affect this

18
Q

How is inflation mainly measured?

A

CPI (consumer price index)

19
Q

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

A

The price of a substitute falling

20
Q

define a lag indicator

A

Provides information about the past and possibly current state of the economy

21
Q

the four main macroeconomic objectives

A
  • Economic growth
  • Price stability/stable inflation
  • Satisfactory balance of payments
    -Low unemployment or full employment
22
Q

The market demand curve for a football match will rise when

A

A rise in incomes assuming a football match is a normal good

23
Q

The PPF curve represents:

A

The long run productive potential of the economy

24
Q

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

A fall in the price of the good

AS economics (9 decks)

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