Economic revision

Of the four factors of production, which of these are not a factor of production?

• Land

• Capital

• Development

• Labour

The term "derived demand" means...

• demand for secondary products only

• demand that is dependent on government supplying the product

• demand that arises because the supply of the good is reduced

• demand that arises because there is demand for another good.

Which of the following is a possible cause of diseconomies of scale?

• similar businesses in the area

• easy access to suppliers

• greater distance between senior staff and shop floor workers

• abundance of skilled labour

What of the following is a feature of a monopoly?

• There is plenty of competition

• Price is set freely by the consumers

• The product sold is unique

• There are very few barriers to entry

The term "economies of scale" refers to ...

• the average costs of production decreasing as a firm expands

• the average costs of production rising as a firm expands

• the average costs of production remaining the same as a firm expands

• the average costs of production at first decreasing, then increasing, as a firm expands

The introduction of a minimum wage in a labour market will:

• raise employment and lower the wage rate

• raise the wage rate and increase employment

• raise the wage rate and decrease employment

• reduce the wage rate but boost employment

Which is not a likely disadvantage of a small firm?

• Higher costs

• Difficulty attracting quality staff

• Vulnerability to competition (especially from larger companies)

• Lower overall wage costs

What does Gross Domestic Product

mean?

• The total value of all goods and services a country imports.

• The total value of all goods and services a country exports.

• The total value of all goods and services produced within a country in one year.

• The net loss in profits within a country due to imports.

The___________ a country’s GDP, the better the country’s standard of living.

• lower

• greater

• smaller

• answers 1 and 3 are correct

What are the 4 factors that lead to a country’s economic growth?

• investment in human capital, investment in physical capital, land (natural resources), entrepreneurship

• good international relations, a democratic president, strict laws, freedom of press

• a powerful military, strong dictatorial leadership, communist regime, little personal freedom

• a monarchy, the World Bank, a parliamentary democracy, personal freedom