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In each of the following cases only one answer is correct. Write the letter that represents the correct answer,
next to each number. E.g. 1.11 a
1.1 Which one of the following statements is false?
a) Choice is necessary because of limited wants.
b) The means available to satisfy wants are limited.
c) The wants of human beings are unlimited.
d) The opportunity cost of producing a given commodity is the value of the best forgone alternative which
could have been produced with the factors of production used in its production.
economic choices are influenced by the availability of factors of production.
Is this true or false
What are the determinants (factors) that could cause a demand curve or market demand curve to shift?
If you buy a car for $10,000 with a 3year loan at 8%interest, what is the total interest on the loan ?
The Teenager Company makes and sells skateboards at an average price of $70 each. During
the past year, they sold 4,000 of these skateboards. The company believes that the price
elasticity for this product is about −2.5. If it decreases the price to $63, what should be the
quantity sold? Will revenue increase? Why?
law of demand:
1. EJ'S restaurant wanted to increase its lunch business. The owners distributed coupons good for $1 off every lunch order, Business increased by 25 percent. It is: ____ Because:____
2. American Eagle clothing store has a successful two for the price of one sale. THe owners next tried three for the price of one sale on remaining clothes. This sale was not nearly as successful. It is:___ Because:____
We were assigned the running in place project and one of the questions our teacher asked was “Why shouldn’t I just buy the products from other businesses instead of paying households?”
Fathiyya deposits RM6,000 into a money market account which pays interest at a rate of 10% per year. What will the amount in the account be after 10 years?
Spending by local government can be regarded as ?
The demand equation for a product is given by
P=30-0.1q2 .
(a)At what point price is demand inelastic?
(b)at what price is demand unitary elastic