Rephrasing

Question 1

Prices go up when there’s more demand than supply

Answer 1

In conditions of excess demand, market equilibrium is disrupted, leading to upward pressure on prices, as illustrated by the law of supply and demand.

Question 2

If a company makes more products, the cost per product is less

Answer 2

Under the principle of economies of scale, as output increases, the average cost per unit declines due to the spreading of fixed cost over a large number of units.

Question 3

People buy less when things get too expensive

Answer 3

The law of demand states that, ceteris paribus, there is an inverse relationship between price and quantity demanded, meaning consumers tend to reduce consumption as price increases.

Question 4

When workers become more skilled, they can do their jobs better

Answer 4

Enhancements in human capital, through education and training, lead to increased labour productivity, which in turn positively impacts a firm’s efficiency and output quality.

Question 5

Bank’s control the money supply

Answer 5

Central banks tend to regulate the money supply through monetary policy tools such as open market operations, reserve requirements, and the setting of benchmark interest rates, impacting liquidity and credit availability in the economy.

Question 6

Countries trading with each other is beneficial

Answer 6

International trade, guided by the principle of comparative advantage, allows countries to specialise in the production of goods where they have a lower opportunity cost, thereby increasing global efficiency and welfare.