Other questions in this quiz

2. Which of these statements is a valid criticism of the price-system?

  • it may lead to great inequality of income and wealth
  • it cannot secure the allocation of goods and services
  • it will often lead to shortages of goods and services
  • it cannot provide luxury goods
  • long queues for necessities are likely

3. A production possibility curve illustrates:

  • factors available from a given cost outlay
  • maximum production of two outputs from a given resource input
  • the labour and capital available to a producer
  • maximum possible economic growth
  • combinations of factors required to produce a given output

4. A shift of the supply curve to the left means:

  • less will be demanded
  • more is supplied for the corresponding prices
  • no change in supply for the corresponding prices
  • less is supplied for the corresponding prices
  • more will be demanded

5. The market mechanism tends to allocate economic resources:

  • randomly
  • equitably
  • efficiently
  • evenly
  • fairly

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