State whether the following statements are true or false. The economic problem facing individuals, organisations and economies is one of limited wants and unlimited resources. Opportunity cost can be defined as the best alternative forgone. The production possibility frontier is convex to the origin.
State whether the following statements are true or false.
The economic problem facing individuals, organisations and economies is one of limited wants and unlimited resources.
The
In a pure ‘planned economy’ the market decides what should be produced.
A mixed economy combines elements of the market and planned economies.
A positive statement involves value judgments.
A
If a product has
An inferior good is one for which demand increases as income increases.
Goods A and B are complementary if a rise in the price of good A leads to a fall in the demand for good B.
Price elasticity of supply refers to how supply for a good responds to a change in the good’s price.
If a demand curve is horizontal it indicates that price elasticity of demand is infinity
If a demand curve is vertical it indicates that price elasticity of demand is infinity.
A price elasticity of demand of 0.4 means that a 10% increase in price leads to a 4% reduction in the quantity of a good demanded.
A price elasticity of demand of 0.4 means that a 4% increase in price leads to a 10% reduction in the quantity of a good demanded.
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