Economics

Select all the advantages of a flat organisational structure.

• Decisions can be made more quickly.

• Suited to long-term growth and expansion.

• Improves speed of communication between employees.

• Improves coordination between employees.

• Employees tend to become specialized.

Which diagram illustrates elastic supply?

Select all the advantages of a tall organisational structure.

• It is clear who is responsible for which tasks.

• Promotion opportunities are available for employees.

• Employees tend to become specialized.

• Reduced bureaucracy, making the organisation more adaptable to changes.

• Increased cooperation and communication between departments.

Select the correct key term for the following definition:

The route by which instructions and communications flow from the top to the bottom of a business, explaining who is answerable to whom.

• Span of control

• Delayering

• Chain of command

• Delegation

• Subordinates

A market describing the trade of items that are needed in the production process i.e. land, labour, capital.

• Factor Market

• Product Market

What makes a resource or good scarce?

• Must be limited in quanity

• Must be desirable

• Must have more than one use

• All of these answers.

Which diagram shows the effects of a decrease in sales tax?

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The price of a product rises from $60 to $90. This causes demand to contract from 800 to 600. What type of price elasticity of demand does this product have over this price range?

• Perfectly inelastic

• Inelastic

• Unity

• Elastic

Which section of the demand curve is unit elastic?

• Section A

• Section B

• Section C