Micro Wrong Answers

Question 1

what is a feature of a market economy

Answer 1

consumer preferences determine the allocation of resources

Question 2

an economy is at allocative efficiency when?

Answer 2

the output produced maximises total consumer welfare

Question 3

producer surplus definition

Answer 3

the additional benefit gained by producers from the difference between the price the producer is willing to charge and the price they actually charge

Question 4

state the 4 factors of production used in the production of organic food

Answer 4

land
labour
enterprise
capital

Question 5

3 changes other than the price of butter that would cause demand for it to shift right

Answer 5

price of substitutes to increase

fall in the prices of complements

changes in consumer preferences

Question 6

define the term sustainability

Answer 6

using resources so as to not compromise future generations standards or quality of life

Question 7

explain how the change from traditional to organic farming impacts on scarcity

Answer 7

using more land for organic farming this will produce less food than the conventional methods, meaning supply falls and food becomes scarcer (organic farming will reduce the amount of food)