Economics Trivia Quiz: Techniques and Concepts!

1. Consider this question: "Explain the determinants of price elasticity of demand" - A definition of price elasticity of demand is required here.

True

False

2. Consider this question: "Evaluate the likely effect of a falling rate of inflation on the performance of an economy" The "evaluate" implies that

You should not only mention positive effects but also negative effects of a falling inflation rate

You should think very hard about this question

3. You receive a paper 1 question as follows: "Explain how a firm operating in an oligopolistic market might attempt to increase its market share" What are the key words that should be either defined or explained in your introduction?

Firm, oligopoly, market share

Firm, market share

Oligopoly, market share

Oligopoly, attempt

Oligopoly and market share are the key words here, where "oligopoly" requires a proper definition and "market share" a mere description. Don't define "firm", because in this question it is common knowledge.

Explanation

Oligopoly and market share are the key words here, where "oligopoly" requires a proper definition and "market share" a mere description. Don't define "firm", because in this question it is common knowledge.

4. Consider this question: "Explain the principle of comparative advantage and the benefits which might arise from free trade" What should the answer include?

An explanation of how free trade might lead to higher living standards

An explanation of comparative advantage with a clear reference to opportunity cost

A distinction between absolute and comparative advantage

An explanation of how free trade might lead to greater choice for consumers

All options are relevant but the explanation of comparative advantage is crucial. It is important to note that opportunity cost is a main feature of comparative advantage.

Explanation

All options are relevant but the explanation of comparative advantage is crucial. It is important to note that opportunity cost is a main feature of comparative advantage.

5. Consider this question: "Explain how development might be measured" Can an answer only containing full exlanations of two different measures access the top mark band?

Yes, if the definition of development is included too

Yes

No, at least three different measures must always be explained

Yes, but only if one of them is the Lorenz Curve

For most paper 1 (a) questions, it is enough to discuss two benefits/methods/measures/whatever, to reach the top mark band. However these discussions must be detailed and any key definitions must not be left out. To be safe, mention a third and a fourth!

Explanation

For most paper 1 (a) questions, it is enough to discuss two benefits/methods/measures/whatever, to reach the top mark band. However these discussions must be detailed and any key definitions must not be left out. To be safe, mention a third and a fourth!

6. Consider the same question: "Explain how a firm operating in an oligopolistic market might attempt to increase its market share" Which one of the following listed ways would not be relevant to discuss?

Product differentiation to create brand loyalty

Collusion

The creation of entry barriers

The concentration ratio - how to measure market shares

7. Consider this question: "The effect of a decrease in aggregate demand on output and the price level depends on the shape of the aggregate supply curve." Explain this statement. What is probably the best way to start the answer to this question?

Define aggregate demand and aggregate supply

Distinguish between short run aggregate-supply and long-run aggregate supply

Always start off with the key definitions! Then go ahead and do everything in option (A.) and discuss (C.) only if there is time.

Explanation

Always start off with the key definitions! Then go ahead and do everything in option (A.) and discuss (C.) only if there is time.

8. Consider this question: "Evaluate the importance of membership of a trading bloc for the export performance of a country" Is it relevant at all to discuss the importance of other factors for the export performance of a country?

No, because the focus should be on what it means to be a member of a trading bloc

Yes, because in order to evaluate something's importance, the importance of other factors should be discussed to enable comparisons.

9. You have one hour to write your Paper 1. Which of the following is the most appropriate time distribution between the different questions?

Question (a) - 30 minutes. Question (b) - 30 minutes

Question (a) - 20 minutes. Question (b) - 40 minutes

Question (a) - 40 minutes. Question (b) - 20 minutes

Question (a) - 25 minutes. Question (b) - 35 minutes

It is important to plan your test according to how many points are available in each question. Question (a) is worth 10/25 points, which should require (to be exact) 24 minutes of testing time. Thus question (b) should get appr. 36 minutes.

Explanation

It is important to plan your test according to how many points are available in each question. Question (a) is worth 10/25 points, which should require (to be exact) 24 minutes of testing time. Thus question (b) should get appr. 36 minutes.

10. Consider the following question: "Evaluate the view that producers, and not consumers, are the main beneficiaries of oligopolistic market structures" What does the "evaluate" imply about this question?

Candidates not referring to negative aspects of oligopoly for consumers cannot reach the top mark band.

Candidates not referring to negative aspects of oligopoly for producers cannot reach the top mark band.

Candidates not referring to positive aspects of oligopoly for consumers cannot reach the top mark band.

Candidates not referring to positive aspects of oligopoly for the government cannot reach the top mark band.

Economics Trivia Quiz: Techniques and Concepts!

1. Consider this question: "Explain the determinants of price elasticity of demand" - A definition of price elasticity of demand is required here.

2.

What first name or nickname would you like us to use?

2. Consider this question: "Evaluate the likely effect of a falling rate of inflation on the performance of an economy" The "evaluate" implies that

3. You receive a paper 1 question as follows: "Explain how a firm operating in an oligopolistic market might attempt to increase its market share" What are the key words that should be either defined or explained in your introduction?

4. Consider this question: "Explain the principle of comparative advantage and the benefits which might arise from free trade" What should the answer include?

5. Consider this question: "Explain how development might be measured" Can an answer only containing full exlanations of two different measures access the top mark band?

6. Consider the same question: "Explain how a firm operating in an oligopolistic market might attempt to increase its market share" Which one of the following listed ways would not be relevant to discuss?

7. Consider this question: "The effect of a decrease in aggregate demand on output and the price level depends on the shape of the aggregate supply curve." Explain this statement. What is probably the best way to start the answer to this question?

8. Consider this question: "Evaluate the importance of membership of a trading bloc for the export performance of a country" Is it relevant at all to discuss the importance of other factors for the export performance of a country?

9. You have one hour to write your Paper 1. Which of the following is the most appropriate time distribution between the different questions?

10. Consider the following question: "Evaluate the view that producers, and not consumers, are the main beneficiaries of oligopolistic market structures" What does the "evaluate" imply about this question?