Unit 1 Quiz: Microeconomics (Basics)

I have created a quiz for the Edexcel Unit 1 Exam; you won’t be asked these questions in the exam, but you need to know the answers. The answers are in a separate blog post (see here).

1. How do you calculate PED?

2. Define PED

3. If the value produced by a PED calculation was -0.6 what would it mean?

4. What values would be needed from the PED calculation to say a good is a.) elastic b.) inelastic c.) unit elastic

5. What does derived demand mean?

6. If I have a vertical demand curve what price elasticity does it have?

7. If I have a horizontal demand curve what price elasticity does it have?

8. If I have a negatively correlated demand curve (downward sloping) what are the price elasticities (there are 3)?

9. Why is the demand curve downward sloping?

10. Why is the supply curve upward sloping?

11. What is the conspicuous consumption effect?

12. List some factors that would cause demand to shift rightwards.

13. List some factors that would cause demand to shift leftwards.

14. What would cause a movement along the demand curve?

15. What is a positive statement?

16. What is a normative statement?

17. If a country is operating within its PPF curve what does this mean?

18. If a country is operating on its PPF curve what does this mean?

19. Is it possible to operate above the PPF curve?

20. What are theĀ 3 factors of production?

21. What factors would cause the PPF curve to shift outwards?

22. What factors would cause the PPF curve to shift inwards?

23. What does it mean for employment levels if a country is operating on the PPF curve?

24. List some advantages and disadvantages of the Division of Labour.

25. What does absolute advantage mean (in terms of specialisation)?

26. What does comparative advantage mean?

27. If income rises what will happen to the quantity demanded for a normal good?

28. If income falls what will happen to the quantity demanded for an inferior good?

29. Define what a normal good is.

30. Define what an inferior good is.

31. What is a Giffen good?

32. Name a pair of complementary goods.

33. Name a pair of substitute goods.

34. Define what a complementary good is.

35. Define what a substitute good is.

36. What is the formula for Income Elasticity of Demand?

37. What is the formula for Cross Price Elasticity?

38. What is the formula for percentage change?

39. If the result of a YED calculation is negative what does this mean?

40. If the result of a YED calculation is above 1 what does this mean?

41. If the result of an XED calculation is positive what does this mean?

42. If the result of an XED calculation is negative what does this mean?

43. Name some determinants of supply.

44. What is consumer surplus?

45. How would you find consumer surplus on a graph?

46. What is producer surplus?

47. How would you find producer surplus on a graph?

48. What is the formula for Price Elasticity of Supply?

49. If the value from a PES calculation is between 0 andĀ 1 what does this mean?

50. If the value from a PES calculation is greater than 1 what does this mean?

51. What does ceteris paribus mean?

52. What are the advantages and disadvantages of an indirect fixed tax?

53. What would happen to the supply curve as a result of the introduction of a specific tax?

54. What would happen to the supply curve as a result of the offering of a subsidy?

55. What are the advantages and disadvantages of a subsidy?

56. What is speculation?

57. Give examples of a primary commodity.

58. What would you conclude about the price of primary commodities?

59. What is the effect of speculation on the price of commodities?

60. How could the government intervene in the commodity market in order to stabilise the price of commodities?

61. What is excess supply more commonly known as in the labour market?

62. Name some factors affecting the demand for labour.

63. Who are the suppliers of labour?

Please note that this list isn’t inclusive nor exhaustive!

 

 

 

 

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