Stats: Edexcel Economics 2. Supply and Price

General Stats

This quiz has been taken 28 times
The average score is 8 of 20

Answer Stats

Description	Term	% Correct
The difference between the price people are willing to pay for a product and the market price	Consumer Surplus	100%
What is shown by the point at which the demand and supply curves meet?	Equilibrium	100%
Where the quantity demanded exceeds supply as a result of a price below equilibrium	Excess Demand	100%
Where there is a surplus supply relative to demand as a result of a price above equilibrium	Excess Supply	100%
What has a coefficient of infinity?	Perfectly Elastic Supply	100%
When a percentage change in price causes an infinite change in the quantity supplied	Perfectly Elastic Supply	100%
The difference between the price a producer is willing to accept for a product and the price they actually receive	Producer Surplus	100%
The way in which price serves to allocate scarce resources when demand outstrips supply	Rationing	100%
A group of firms that cooperate in a market to control prices and limit competition	Cartel	67%
The value of one currency in relation to another	Exchange Rate	67%
The difference between a firm's total revenue and its total costs	Profit	67%
From which side of the agricultural market does volatility arise?	Supply	67%
What is shown on a demand curve as the area below the demand curve and above the market price?	Consumer Surplus	50%
The market in which foreign currencies are bought and sold	Foreign Exchange Market	50%
The degree of responsiveness of supply to changes in price	Price Elasticity of Supply	50%
When a percentage change in price causes a change in the quantity supplied of the exact same percentage	Unit Elasticity of Supply	50%
Where demand and supply are out of balance	Disequilibrium	40%
An organisation that brings together factors of production in order to produce output	Firm	33%
A period of time during which at least one factor of production cannot be varied	Short Run	33%
That debt - usually government/municipal or corporation - which is financed by the holder in exchange for interest from the issuer	Bond	0%
The rise in value of an asset over its purchase price when sold	Capital Gains	0%
A homogeneous product such as raw materials that are traded in bulk on global markets	Commodity	0%
A market in which individual firms cannot influence the price of the good or service they are selling because of competition from other firms	Competitive Market	0%
Any factor besides price that can cause a change in supply and thus a shift in the supply curve	Condition of Supply	0%
A decrease in supply coupled with a decrease in price	Contraction in Supply	0%
From which side of the commodity market does volatility arise?	Demand	0%
A sudden event which temporarily increases or decreases demand for a good or service	Demand Shock	0%
What type of demand is demonstrated in the demand for financial assets (currency, shares, etc.)?	Derived Demand	0%
The only price at which demand and supply are equal thus meaning there is no shortage or surplus and all supply is demanded	Equilibrium Price	0%
An increase in supply coupled with an increase in price	Extension in Supply	0%
The ability of factors of production - usually labour - to change locations depending on requirement	Geographical Mobility	0%
A natural resource that must be mined or extracted	Hard Commodity	0%
The way in which changes in demand and thus price motivate a supplier to change production for the purposes of profit	Incentive	0%
The positive relationship between supply and price	Law of Supply	0%
A period of time during which all factors of production can be varied	Long Run	0%
How supply and demand determines the allocation of scarce resources and the relative price of goods, services, and assets in a market economy	Market Forces	0%
The total amount of a product that all firms are prepared and able to supply at any given price	Market Supply	0%
A situation in which a borrower owes more on a loan than the value of the asset that guarantees the loan such as that owed on a mortgage after a fall in house prices	Negative Equity	0%
The ability of factors of production - usually labour - to switch between different occupations/uses as needed	Occupational Mobility	0%
What has a coefficient of zero?	Perfectly Inelastic Supply	0%
When a percentage change in price causes no change in the quantity supplied	Perfectly Inelastic Supply	0%
What is shown by the following calculation: (%∆QS)/(%∆P)?	Price Elasticity of Supply	0%
What is shown on a supply curve as the area above the supply curve and below the market price?	Producer Surplus	0%
What has a coefficient above one but less than infinity?	Relatively Elastic Supply	0%
When a percentage change in price causes a greater percentage change in the quantity supplied	Relatively Elastic Supply	0%
What is the price elasticity of demand, and income elasticity of demand of the agricultural market?	Relatively Inelastic	0%
What is the price elasticity of demand, and income elasticity of demand of the housing market?	Relatively Inelastic	0%
What is the price elasticity of supply of the agricultural market?	Relatively Inelastic	0%
What is the price elasticity of supply of the housing market?	Relatively Inelastic	0%
What has a coefficient above zero but less than one?	Relatively Inelastic Supply	0%
When a percentage change in price causes a smaller percentage change in the quantity supplied	Relatively Inelastic Supply	0%
A part of a public limited company that forms a unit of ownership and is offered for sale by the company so as to raise capital for the said company, which is usually bought so as to provide a dividend to the holder	Share	0%
The way in which changes in price, demand, or supply indicate from one side of the market to the other to adjust their levels of consumption or production	Signalling	0%
A natural resource that must be grown	Soft Commodity	0%
Where traders buy and sell assets in order to make a profit on capital gains	Speculation	0%
The amalgamation of a single block of shares in a public limited company bought on and for the purpose of future sale on the stock market	Stock	0%
A product that could have been supplied using the same resources as are currently committed to another product	Substitute of Production	0%
A graph showing variance in supply with changes in price	Supply Curve	0%
A table showing variance in supply with changes in price	Supply Schedule	0%
A sudden event which temporarily increases or decreases the supply of a good or service	Supply Shock	0%
A situation in which people are very unsure about the future	Uncertainty	0%
What has a coefficient of one?	Unit Elasticity of Supply	0%
A situation in which prices fluctuate wildly over a short period of time	Volatility	0%

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Edexcel Economics 2. Supply and Price - Statistics