Economic development may be hindered if there is
A high pool of skilled labour
A high rate of economic growth
Political stability
Rapid population growth
Correct answer is D
Limited resources and a larger population puts pressures on the resources that do exist. More people means more mouths to feed, more health care and education services to provide, and so forth. So, population can be a mixed bag.
0
0.5
1
5
Correct answer is C
The price elasticity of supply = % change in quantity supplied / % change in price. When calculating the price elasticity of supply, economists determine whether the quantity supplied of a good is elastic or inelastic.
change in price = 10 - 15 = 5
change in quantity = 10 - 15 = 5
5 ÷ 5 = 1
Perfect knowledge of events in a perfect market will be made possible by the existence of
Many buyers and sellers
Homogeneous products
Means of communication
Large number of traders
Correct answer is A
In a perfectly competitive market, there are many buyers and many sellers. In fact, the number of buyers and sellers is effectively infinite. This alows for the free flow of information in the market.
Which of the following best defines inflation?
Cyclical increase in prices
Periodic increase in prices
Persistent increase in prices
Occasional increase in prices
Correct answer is C
Inflation is the persistent increase in the prices of goods and services over time.
Cyclical unemployment is one associated with
Inadequate information
Trade fluctuations
Structural changes
Seasonal changes
Correct answer is B
Cyclical unemployment is unemployment that results when the overall demand for goods and services in an economy cannot support full employment. Cyclical unemployment is when workers lose their jobs because of downturns in the business cycle.