A-Level H2 Economics

Question 1

What is 'ceteris paribus' in economics?

Accepted Answer

All other things being equal or held constant

Answer

All variables change simultaneously

Answer

A type of market failure

Answer

A government policy tool

Question 2

What happens to the demand curve for a normal good when consumer income rises?

Accepted Answer

Demand curve shifts right

Answer

Demand curve shifts left

Answer

Demand curve becomes steeper

Answer

There is a movement along the demand curve

Question 3

What is price elasticity of demand (PED)?

Accepted Answer

The percentage change in quantity demanded divided by the percentage change in price

Answer

The percentage change in price in response to a change in quantity

Answer

The total revenue at each price

Answer

The slope of the demand curve

Question 4

In Singapore, which market structure best describes the mobile telecommunications industry?

Accepted Answer

Oligopoly

Answer

Perfect competition

Answer

Monopoly

Answer

Monopolistic competition

Question 5

What is a 'public good' in economics?

Accepted Answer

A good that is non-excludable and non-rival in consumption

Answer

A good provided by the government

Answer

A good that is available to the public at a price

Answer

A good with many substitutes

Question 6

What is 'consumer surplus'?

Accepted Answer

The difference between the maximum price a consumer is willing to pay and the actual price paid

Answer

The amount consumers save by not buying a product

Answer

The government's tax revenue from consumers

Answer

Total expenditure on a good