IGCSE Microeconomics revision quiz

A firm has a variable cost of €25 and charges a price of €75 per item. It sells 30 000 items. What is the total revenue for the firm?

• $400

• $30 075

• $750 000

• $2 250 000

Which one of the following is defined as 'breaking down the production process into smaller tasks'?

• Division of Labour

• Innovation

• Labour Intensive

• Productivity

Which one of the following is defined as 'the selling of an enterprise controlled by the government to the private sector'?

• Reclamation

• Innovation

• Nationalisation

• Privatisation

Which one of the following is a factor of production?

• Taxation

• Gym Workout

• Enterprise

• Restaurant Meal

Which one of the following products has demand that is price elastic?

• W

• X

• Y

• Z

Which one of the following is a reason why firms may not always maximise their profit?

• They may minimise total costs

• They may be able to sell at a high price

• They may have low fixed costs

• They may complete charitable work

Which one of the following is a situation when firms in a growing industry all benefit from lower average costs?

• Internal Economies of Scale

• External Economies of Scale

• Diseconomies of Scale

• Technical Economies of Scale

Which one of the following is an example of an external cost?

• Healthcare

• Litter

• Rent

• Weather

Which one of the following is an example of an occupation in the primary sector?

• Teacher

• Farmer

• Electrician

• Actor

Which one of the following is an example of an occupation in the tertiary sector?

• Sheep Farmer

• Factory worker

• Coal miner

• Sales assistant