Economics for business

Q1) Suppose wide-spread vaccination for Covid-19 would decrease the death rate from the disease dramatically but only lower the infection rate a little. Scientific research also finds that masking-wearing reduces the infection rate for both vaccinated and

A) Mask-wearing rate will go down.

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Q2) On a normal demand curve, if we know an individual will demand five units of a good when the good is priced at $5, what statement is MOST LIKELY true if the price of the good changes to $4?

A) The individual will purchase more units of the goods.

C) This represents a movement along the demand curve

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Q3) Which product in the below is likely to have the largest price elasticity of demand?

B)Sports car

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Q4) If UK government requires all vehicles driving in big cities to be electric, what do you think will happen to the price of cars produced by Tesla?

A) The price is going up as the demand for Tesla cars goes up.

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Q5) If a seller knows that the demand for his good or service is inelastic at current price, then what would they most likely do?

A) Increase the price

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Q6) The supply of toilet rolls in all supermarkets is affected by the shortage of lorry drivers. What will happen to the demand for toilet rolls among consumers?

C) The long-run demand would stay the same.
E) The short-run demand would go up temporarily.

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Q7) Daniel has £50 left over this week and he wants to contribute to a charitable cause. With £5, Daniel can feed one homeless person one meal. With £10, he can provide shelter for one homeless person one night. What are the opportunity costs of Daniel us

A) a £50 nice dinner for himself
B) 10 homeless meals

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Q8) If UK government requires all vehicles driving in big cities to be electric, what do you think will happen to the price of petrol?

B) The price is going down as the demand for petrol goes down

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Q9) Which product in the below is likely to have the smallest price elasticity of supply?

D) University Dormitory

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Q10) Which of the following are examples of the tragedy of the commons

A) Overfishing

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Q11) If the price elasticity of demand for Tiptree Strawberry Jam is 0.94, then what percentage of price change would cause a 4 percent decrease in the quantity of the jam demanded?

4.255

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Q12) It takes you half an hour to do a Math assignment and two hours to do an Econ assignment. How many Econ assignments is the opportunity cost of you doing two math assignments?

0.5

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Q13) Suppose you’re considering membership at the local recreation centre. The basic membership gives access to the swimming pool with £30 per month, while the full membership gives access to the swimming pool and the weight room with £40 per month. An ec

True

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Q14) If UK government requires all vehicles driving in big cities to be electric, the sales of non-electric cars (quantity sold) will go down because the demand of the non-electric cars will go down.

True

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Q15) If UK government requires all vehicles driving in big cities to be electric, the average price of non-electric cars may go up because the supply of the non-electric cars will go down.

True

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Economics for business

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