ECONOMICS
OPPORTUNITY COST
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
budget surplus; public sector
|
|
|
external cost; opportunity cost
|
|
|
government subsidy; mixed economy
|
|
|
private enterprise; budget deficit
|
Detailed explanation-1: -What is the most likely reason why government intervention may make the situation worse? A Government decisions can take a long time to have an effect.
Detailed explanation-2: -(3.6) Which change will make a manufacturing company replace machines with labour to maintain the most efficient combination of factors of production? The price of the product manufactured has increased.
Detailed explanation-3: -The most common cause of cost-push inflation starts with an increase in the cost of production, which may be expected or unexpected. For example, the cost of raw materials or inventory used in production might increase, leading to higher costs.
Detailed explanation-4: -A growing population increases total demand (1) this will encourage firms to increase their output (1) may attract MNCs to set up in the country (1). A higher population may make better use of resources (1) allow firms to take advantage of economies of scale (1).