Price Determination and the Price Mechanism (Edexcel A-Level Economics A): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is consumer surplus?
What is consumer surplus?
Value gained above price paid
What does producer surplus represent?
What does producer surplus represent?
Difference between price received & min price
What are the three functions of the price mechanism?
What are the three functions of the price mechanism?
Signalling, incentives, rationing
What does 'laissez-faire' mean?
What does 'laissez-faire' mean?
Let do or leave alone
What is marginal social benefit (MSB)?
What is marginal social benefit (MSB)?
Extra benefit from consuming one more unit
What happens to consumer surplus when price increases?
What happens to consumer surplus when price increases?
It reduces in size
Why are property rights essential for markets?
Why are property rights essential for markets?
Enable legal ownership & market transactions
What happens in the long run when demand increases?
What happens in the long run when demand increases?
New firms enter, supply shifts right
What does the supply curve reflect in competitive markets?
What does the supply curve reflect in competitive markets?
Marginal cost of production
What did Adam Smith warn about free markets?
What did Adam Smith warn about free markets?
Firms might collude against the public