The correct answer is C.

Explanation:
Opportunity cost is the cost of sacrificing the best alternative that could have been taken in place of what we have taken.

The correct answer is A.

Explanation:
What price mechanism does is that it determines the price of goods and services as per its demand and supply this leads to providing a means for allocating resources. It does not necessarily ensure that customers are satisfied or government control’s over prices of goods and services or that goods that society needs are produced.

The correct answer is B.
Explanation:
Production of any goods require factors of production to be used in it. Opportunity cost of producing this good would be next best alternative to which this factors of production could have been used. For example: A labor who was employed in the production of X could have been used to manufacture some other good, so the opportunity cost of producing good X is the other good the production for which we have foregone.

The correct answer is D.
EXPLANATION

Main categories of economic resources are the factors of production that is used for production. In business economic, major categories of economic resources are natural resources, labor and capital.

The correct answer is C.

Explanation:
In economics, scarcity means excess of wants over the resources that are available to satisfy those wants. So this is a problem of unlimited wants and limited resources.

The correct answer is C.
EXPLANATION

The opportunity cost of studying Actuarial Science for this student is the income from job that she have foregone and the course fees that she has invested in it which could have been used elsewhere. So the total opportunity cost is £32,000.

The correct answer is A.
Explanation:
Solution to economic problem is deciding on what to produce, so if you are producing product XYZ you are sacrificing the production of ABC which could have been produced using the factors of production of product XYZ.

The correct answer is C.
Explanation:
In producing 1 extra unit of good Y the economy had to foregone 2 units of Good X, so the opportunity cost of producing one unit of good Y is two units of Good X.

The correct answer is C.

Explanation:
8% is foregone by the owners of the company who invested their money into the company which could have been invested elsewhere. So opportunity cost to the owners of the company is 8%.

The correct answer is B.

Explanation:
Scarcity exists when human wants exceed the resources that are available to satisfy those wants. So we do not have enough resources to satisfy all the wants so those wants which cannot be satisfied is scarcity.

The correct answer is C.

Explanation:
This is a problem of what to produce with the limited resources of the economy. A choice of production of consumer goods would lead to sacrificing the other alternatives.

The correct answer is D.
Explanation:
Opportunity cost is not always necessarily constant.
Opportunity cost is not equal to firm’s supernormal profit.
Total fixed cost plus profit is equal to the difference of total revenue and total variable cost.
Opportunity cost is the cost in terms of what was sacrificed to pursue a particular activity.

The correct answer is D

Explanation:
Scarcity exists when human wants exceed the resources that are available to satisfy those wants. So we do not have enough resources to satisfy all the wants so those wants which cannot be satisfied is scarcity.

The correct answer is D.

Explanation:
Here government has sacrificed building school so that they can build a hospital so this illustrates opportunity cost.

The correct answer is D. E

Explanation:
Government sacrificed building school so that they can build a hospital so this is an illustration of opportunity cost.

The correct answer is C.

Explanation:
Opportunity cost is not always necessarily constant.
Opportunity cost is not equal to firm’s supernormal profit.
Total fixed cost plus profit is equal to the difference of total revenue and total variable cost.
Opportunity cost is the cost in terms of what was sacrificed to pursue a particular activity.

The correct answer is C.

Explanation:
Opportunity cost is not always necessarily constant.
Opportunity cost is not equal to firm’s supernormal profit.
Total fixed cost plus profit is equal to the difference of total revenue and total variable cost.
Opportunity cost is the cost in terms of what was sacrificed to pursue a particular activity.

The correct answer is B.

Explanation:
In producing 1 extra unit of good Y the economy had to foregone 2 units of Good X, so the opportunity cost of producing one unit of good Y is two units of Good X.

The correct answer is D.

Explanation:
Scarcity exists when human wants exceed the resources that are available to satisfy those wants. So we do not have enough resources to satisfy all the wants so those wants which cannot be satisfied is scarcity.

The correct answer is C.

Explanation:
The opportunity cost of studying Actuarial Science for this student is the income from job that she have foregone and the course fees that she has invested in it which could have been used elsewhere. So the total opportunity cost is £32,000.

The correct answer is A.

Explanation:
This is a problem of what to produce with the limited resources of the economy. A choice of production of consumer goods would lead to sacrificing the other alternatives.

The correct answer is A.

Explanation:
The basic function of price mechanism is to regulate the equilibrium price and quantity of goods. The price and quantity so determined would not necessarily ensure that all customers are satisfied or government is able to regulate the prices or those goods are produced which society wants.

The correct answer is B.

Explanation:
There are limited resources in the economy and with any company so producing a particular good would lead to sacrificing the production of some other good or the next best alternative to which the factors of production could have been put to use.

The correct answer is C.

Explanation:
Production possibility frontier have the quantities of finished goods on both the axes. This is done to represent all the possible combinations of quantities of finished good that can be produced in the economy.

The correct answer is B.

Explanation:
The change in market price will depend on how much the demand and supply has increased in relation to each other. If proportionate increase in demand is more than the proportionate increase in supply then there would be an increase in market price; and If proportionate increase in demand is less than the proportionate increase in supply then there would be an decrease in market price. If the proportionate increase in demand is equal to the proportionate increase in supply then there would be no increase/decrease in market price.
And since the question has not mentioned anything about that the effect on price would be indeterminate.

The correct answer is A.

Explanation:
Option B is incorrect because at higher output production the firm WOULD incur additional cost, so this is a genuine reason for an increase in supply with an increase in price.
Option C is incorrect because higher prices does mean a higher profit, so this is a genuine reason for an increase in supply.
Option D is incorrect because suppliers would expect the price to stay as it is now that it has increased so they would increase the supply now to maximize their profits.

The correct answer is C.

Explanation:
Rise in consumer income would lead to a rise in demand and rise in cost of production will lead to a fall in supply. So a rise in demand and a fall in supply would definitely lead to a rise in market price of the good but the effect on quantity would be indeterminate as we have no idea about the proportionate increase in demand relative to the proportionate fall in supply that has taken place.

The correct answer is A.

Explanation:
Rise in consumer income would lead to a fall in demand for an inferior good.
And, rise in cost of production would lead to a fall in supply.
So there would be a fall in equilibrium quantity of the good.
But there would be an indeterminate effect on price of the good because we have no information about the proportionate fall in demand relative to proportionate fall in supply.

The correct answer is A.

Explanation:
Shortage means that there is excess want of goods but not enough resources to satisfy those wants.
So shortage would lead to an increase in price of the good because not every customer is getting their want satisfied so they would be ready to pay a higher price for the good.
And an increase in price of good would lead to a fall in quantity demanded and a rise in quantity supplied.

The correct answer is C.

Explanation:
Substitutes are those goods which can be used in place of other goods.
So a rise in price of Good X would lead to a rise in demand of good Y, so there would be a shift in demand curve to the right.
And, obviously a rise in price of good X would lead to a fall in quantity demanded.

The correct answer is A.

Explanation:
A rise in consumer income would lead to a fall in demand of rail travel, so a leftward shift in demand curve.
A rise in car prices would lead to an increase in demand for rail travel, so a rightward shift in demand curve.
A rise in petrol prices would lead to an increase in demand for rail travel, so a rightward shift in demand curve.
A rise in price of rail travel would lead to a fall in quantity demanded of rail travel, so this would lead to a downward movement in demand curve of rail travel.

The correct answer is C.

Explanation:
By equating the demand equation and the supply equation we can derive the equilibrium price of good X which we get is £4.8, and since the current price is £6 there would be a surplus of good X and the price will fall. This will happen because not every supplier is able to supply all the goods they have produced so they would sell the good at a lower price.

The correct answer is B.
Explanation:
Option A is incorrect because a decrease in price would lead to a downward movement in demand curve.
Option B is correct because a rise in price of substitute goods would lead to a rise in demand which would then lead to a rightward shift in demand curve.
Option C is incorrect because if the price of a complement good rises then there would be a fall in demand which would then lead to a leftward shift in demand curve.
Option D is incorrect because if the consumer’s income falls then there would be a fall in demand which would then lead to a leftward shift in demand curve.

The correct answer is D.
Explanation:
This is the definition of annual supply curve.

The correct answer is A.

Explanation:
A change in other factors would cause a shift in demand curve, whereas a change in price would lead to a movement in demand curve.

The correct answer A.

Explanation:
Rise in consumer income would lead to a fall in demand for an inferior good.
And, rise in cost of production would lead to a fall in supply.
So there would be a fall in equilibrium quantity of the good.
But there would be an indeterminate effect on price of the good because we have no information about the proportionate fall in demand relative to proportionate fall in supply.

The correct answer is A.

Explanation:
Rise in consumer income will cause a fall in demand of Good X which will cause a fall in price of Good X.

The correct answer is B.

Explanation:
Rise in consumer income would cause the demand for a normal good to increase.
Decrease in cost of production would cause a rise in supply of goods.
The effect on price would be indeterminate because do not have info about rise in demand relative to rise in supply.
And, there would be a rise in equilibrium quantity.

The correct answer is C.

Explanation:
A change in price of good X would cause a movement in demand curve and not a shift in demand curve.

The correct answer is C.

Explanation:
An increase in consumer income would cause the demand for the public transport to fall which would then cause the demand curve to shift to the left.

The correct answer is D.

Explanation:
Rise in price of substitute good would cause the demand to fall.
This fall in demand would cause a rise in price.
Following which there would be a rise in quantity supplied.

The correct answer is D.

Explanation:
There would be an indeterminate impact on price.
As we do not have the info on the increase in demand relative to increase in supply.

The correct answer is C.
Explanation:
A surplus would cause the price to fall.
A fall in price would cause a rise in quantity demanded.

The correct answer is A.

Explanation:
A decrease in labor productivity would cause a fall in supply which would then cause the supply curve to shift to left.
A fall in price of raw materials would increase the supply which would then cause the supply curve to shift to right.
A decrease in wages would increase the supply which would then cause the supply curve to shift to right.
A government subsidy would increase the supply which would then cause the supply curve to shift to right.

The correct answer is D.

Explanation:
A fall in consumer income would cause a rise in demand which would then cause a rise in prices.

The correct answer is A.

Explanation:
If public transport is an inferior then a rise in consumer income would cause the demand to fall which would then shift the demand curve to the left.

The correct answer is B.

Explanation:
A fall in price of ice-cream will cause a fall in demand of its substitute good, that is fruit sorbet.
A fall in price of ice-cream will cause a rise in demand of its complementary good, that is strawberries.

The correct answer is C.

Explanation:
An increase in wages would increase the cost of producing good X which will cause a fall in supply, that is lead to a leftward shift to the supply curve.

The correct answer is C.

Explanation:
A rightward shift in demand curve means that there has been an increase in demand of good X.
So an increase in demand would lead to an increase in price of good X.
Following which there would be a rise in quantity supplied of good X.

The correct answer is A.

Explanation:
A rise in cost of production will cause a fall in supply.
A rise in consumer income would lead to a fall in demand of inferior goods.
So there would be an indeterminate impact on prices because we don’t have info on fall in demand relative to fall in supply.
There would be a fall in quantity.

The correct answer is B.

Explanation:
An increase in price of wheat would cause a fall in supply.
And, a fall in supply would cause the price to rise, so there would be a leftward shift in supply curve.
Following which there would be a fall in quantity demanded.

The correct answer is A.

Explanation:
Rise in consumer income would lead to a fall in demand for an inferior good.
And, rise in cost of production would lead to a fall in supply.
So there would be a fall in equilibrium quantity of the good.
But there would be an indeterminate effect on price of the good because we have no information about the proportionate fall in demand relative to proportionate fall in supply.

The correct answer is D.
Explanation:
Equating the equation of demand and supply we would get P = 50.
Putting this in demand equation would give a quantity of 40.

The correct answer is C.

Explanation:
An increase in real wage would cause a rise in cost of production which would further lead to a leftward shift in supply curve.

The correct answer is B.

Explanation:
A rise in consumer income would encourage the consumers to shift to a superior goods so there would be a fall in demand.

The correct answer is B.

Explanation:
Option A is incorrect because a high price elasticity would have lead to a massive fall in attendance at home matches.
Option B is correct because consumer preference has changed in favor of watching footfall can lead to a rise in demand.
Option C is incorrect because even with a low price elasticity attendance would have fallen and not increased.
Option D is incorrect because a fall in alternative attractions would cause a fall in attendance.

The correct answer is D.

Explanation:
If the minimum price was fixed above the equilibrium price then there would be an excess supply in the market.
The effect of such increase on bread producers’ income would be uncertain, this is because it is possible for him to be operating in shadow market or it is also possible for the Government to be purchasing the leftover stocks from the producer or it is possible that surplus stocks was not purchased by government.

The correct answer is B.
Explanation:
There was no change in price of the good but there was an increase in its revenue so this would suggest that the product in question has infinite elasticity.

The correct answer is C.

Explanation:
A reduction in expenditure on advertising would cause the demand to fall so hence there would a leftward shift in demand curve.
Also, now the consumers would not consider the demand to be ‘superior’ so the demand for product would become elastic.

The correct answer is B.

Explanation:
Following an increase in price there was a decrease in total revenue so this suggests that the demand for air travel is price-elastic.

The correct answer is D.

Explanation:
Government’s tax imposition will shift the supply curve upwards by £10. But since the elasticity of demand is minus 1 the price will not increase by £10, as some of the consumers would now stop purchasing the product unless some of the tax burden is borne by the suppliers.

The correct answer is B.

Explanation:
Cross price elasticity = Change in demand of Good Y/Change in price of Good X
0.5 = (x-100)/(100-50)
25+100 = x
125 units = x

The correct answer is C.

Explanation:
Equating the demand and supply equation we would get equilibrium price of the good as £4.8 which is less the current price.
So there would be a surplus in the market now which would get adjusted by a fall in prices.

The correct answer is D.

Explanation:
Every demand curve except for the demand curve for a Giffen good will be downward sloping.

The correct answer is C.

Explanation:
For a price-elastic product an imposition of tax would be borne more heavily by the suppliers. This is because even a slight increase in price would cause a huge fall in prices of product.

The correct answer is D.

Explanation:
The absolute value of price-elasticity is more than one which implies the demand for the product is price-elastic. So a sales tax would be borne more heavily by the seller, therefore the rise in the prices of fuel would be of less than 9 per cent.

The correct answer is B.

Explanation:
MINIMUM price is set at £10, a rise in demand can still be matched by a rise in prices.
So there will be an increase in price and quantity.

The correct answer is B.

Explanation:
Using the average price elasticity of demand method we get:
(DELTA Q/Average Q)/(DELTA P/Average P)
(-20/90)/(1/3.5)
-0.78

The correct answer is A.

Explanation:
There is no reason for a firm to want the demand for their product to be price-elastic.
Making a product’s demand price-elastic would mean that increasing the price of the product would lead to a fall in total revenue of the firm.

The correct answer is A.

Explanation:
Higher price means higher sensitivity to change in price.
This is because people would not be affected that much by a change in price of an already low-priced product.
Whereas, they would be more sensitive to a change in price of an already high-priced product.

The correct answer is C.

Explanation:
If the MAXIMUM price of Good X is fixed above the current price then that would not affect anything. If the minimum price was fixed above the current market price or maximum price was set below the current market price then that would have caused a change in demand and supply.

The correct answer is B or D.

Explanation:
A downward shift in supply curve means that there has been a fall in supply.
A fall in supply should ideally lead to a rise in price but since the price is already set at the maximum price, there is no further change in price possible.
So there would be shortage in the market.