The case for government intervention in an industry is often made by_______________?
Market failure
Demand and Supply
Taxation requirements
The European Union
A definition of 'economies of scale' occurs
When increasing the scale of production leads to a lower cost per unit of output.
When increasing the range of products produced by a firm reduces the cost of producing each one.
Where costs of per unit of output increase as the scale of producting each one.
The least-cost combination of factors for a given output.
Like almost every good the price of houses are determined by demand and supply. There are many factors that influence these market forces in the case of houses. One of these is not relevant. Which one is it?
The availability of mortgages.
Incomes (actual and anticipated)
The weather.
The base rate of interest.
Aims for an economy include three of the four below. Pick out the one that is not an aim
Balance of Payments equilibrium
High unemployment
Low inflation
Stable growth
If the price of a good is above the equilibrium there is soon a situation of...?
excess demand
inflation
excess supply
scarcity
If a two goods are said to have a positive cross price elasticity of demand (XED), they are...?
Complements
Inelastic
Inferior goods
Substitutes
How effective the multiplier is depends on...?
Government Spending
Monetary Policy Committee
Net exports
Marginal Propensity to Consume
Marginal cost is measured as...?
cost per unit
the contribution
the cost associated with producing one extra unit
the costs associated with developing a new product.