There are certain conditions that make it ideal for countries in a region to engage in economic integration.
Explain the conditions.
Describe five reasons that may make a controlled economic system undesirable by many countries. Describe the reasons that make perfect competition difficult to achieve in an economy. Describe five functions of an entrepreneur as a factor of production. National income statistics have been used to compare the standard of living in different countries. Explain five limitations of using such statistics. Describe measures taken by the government to control unemployment.Explain the differences between commercial banks and non-bank financial institutions. Increasing the size of an individual firm beyond a certain scale can lead to internal diseconomies of scale. Explain four sources of such diseconomies. Explain the six factors that may influence the wages paid to employees in an organization. Describe the positive effects of price decontrol.Unlike the UK and US, a significant proportion of the shares on the stock exchanges of China and Russia are of state-owned enterprises. Which judgement about China and Russia can be made from this information? A their distribution of income and wealth their level of development G their stages of production D their type of economic system 10 What is the most important factor that affects how much a family saves? A the income of the family the level of taxation G the rate of inflation the reliability of banks 11 The table shows the change in real incomes for a number of occupations between 1985 and 2015. change in occupation real income doctors 153 114 accountants GO bricklayers LE bus and coach drivers 19 fork-lift truck drivers What can be conduded from the table? A All occupations were better off in 2015 than in 1985. B Fork lift truck drivers earned the lowest wages in 2015. C Doctors have earned more than lawyers since 1985. D Professionals received higher percentage increases in income than manual workers.12 A large bakery buys a flour mill. Which form of integration is this? conglomerate B horizontal C vertical backwards D vertical forwards 13 Why is the energy supply industry dominated by very large firms in many economies? A Government controls prevent the exploitation of consumers. B High fied capital costs exist. C Labour intensive production techniques are used. D Non-price advertising increases competition. 14 The diagram shows the fixed costs, variable costs and total costs of a firm. costs output Which distance represents the fin's foed costs? A WX B WY C XY 15 An entrepreneur buys a workshop for $200000 to make plastic boxes. In the first year of operation he spends $70 000 on materials, employs ten production workers paid by the amount produced (piece rate) at a total cost of $80000 and buys two delivery wehides for $10 000 each. What are his total variable costs? A $100000 B $150 000 C $220000 D $370 0001 What would an economist regard as an example of the factor of production capital? A an individual's purchase of stocks and shares B borrowing by a firm to pay for electricity the building by a firm of a new factory D total savings by individuals in a country 2 The diagram shows a production possibility curve (PPC). goods O Why is the curve usually drawn like this? A International free trade exists. B Opportunity cost changes. C Resources are unlimited in supply. D Some resources will be unemployed. 3 In recent years more golf courses, which use large quantities of water, have opened in China. What may be the opportunity cost of this? A cost of water B loss of farmland C sales of golf equipment D wages of golf course staff 4 Which situation indicates a mixed economy? A Economic activity is controlled entirely by the private sector. B individual choices are unaffected by government actions. Services are provided by both private and public sectors. D The government camies out all planning and decision making.3 What causes market failure? A goverment provision of services B `social costs equal private costs C the existence of external benefits D the existence of perfect competition A newspaper reported that 'The world market for coffee has returned to equilibrium'. Which situation supports this statement? A A sequence of poor harvests resulted in shortages. B Decreased transport costs led to a surplus of supply. C Farmers matched demand by planting more coffee bushes. D The price of coffee was foed between producers. 7 The table shows the demand schedule for a good at different prices. price quantity demanded 200 10 160 12 120 14 The current market price for the good is $10. Following a 20% increase in price, what will be the change in the quantity demanded? A -60 -40 C +120 D +200 Carlos has been offered a new job with a large multinational company. He is undecided whether to accept the position. What is a non-wage factor he might consider? A bonus payments B holiday entitlement C overtime rate D salary level
