The wage of labour in a firm increases. Which combination of influences would increase the level of borrowing by a household? The graph shows women’s wages as a percentage of men’s wages in year 1 and year 2. People’s income decreases. How is the proportion spent on food and leisure likely to change? The table shows total fixed and total variable costs at different levels of output for a firm. The following information refers to a firm producing shoes. At which level of output does the firm maximize profits? What is most likely to lead to an improvement in labor productivity in an industry? What would most likely cause a person to increase their savings? Which statement is shown by the graph to be true? How is the proportion spent on food and leisure likely to change when people's income decreases? What happens as output rises according to the given cost information? At which level of output does the firm maximize profits? Which statement proves there has been an increase in productivity for a factory making tractors? When do economies of scale take place? What is a disadvantage to employers of switching to production using division of labour? What is an advantage to a country of having an efficient commercial banking system? The graph shows women’s wages as a percentage of men’s wages in year 1 and year 2.. Which statement is shown by the graph to be true? A firm produces 1000 units and has a total cost of $50 000. The variable cost per unit produced is $40. What is the total fixed cost of the firm? The following information refers to a firm producing shoes. At which level of output does the firm maximise profits? Firms can grow by increasing the internal scale of their operations. What might be a disadvantage of this to the firm? A government owns and runs an airline. Which combination of ownership and sector is this? A German car manufacturer builds a factory in India. A group of Indian workers at the factory join a trade union. What would this trade union be expected to do for the workers? Why do women, on average, earn less than men? The table shows how household spending changes with income. What is the lowest level of income at which savings are positive? What can a central bank increase in order to reduce consumer borrowing? In the short run, a firm calculates its total fixed cost, total variable cost, and total cost. It then plots a graph showing how they change as output increases. What happens to the lines showing the total variable cost and total cost as output increases? A firm has fixed costs of $1000. The table shows the variable cost at different levels of output. If the goods are sold for $500 each, how much profit will be made from the sale of 4 units? When is it most likely that the demand for labour in an industry increases? What could cause internal diseconomies of scale for a firm? Which task is not a function of a trade union? What does not have an effect on wages in a free market economy? The table shows how household spending changes with income. Income. What is the lowest level of income at which savings are positive? The table shows the output and total costs of a small firm. What is the average fixed cost of producing 10,000 units? Firm X supplies bricks and decides to merge with firm Y that also supplies bricks. Which form of merger has taken place? In which occupation would wages tend to increase? Which row shows a characteristic of money and a function of money? At which level of output does total variable cost exceed total fixed cost? Which combination is usually found in a monopoly? What is usually considered to be an advantage to a firm of being a monopoly? Which function does a central bank provide for the general public? What might cause a rise in wages? A national trade union wishes to increase the wages of its members without reducing the numbers employed. Which factor would help the union to do this? The diagram shows a firm’s total cost (TC) curve. What is the average variable cost if the firm produces an output of OQ? What will occur when there is a conglomerate merger? What is total revenue? How would a state-owned oil refining firm be classified? It is expected that consumers will use less paper money. What is the most likely reason for this? In low-income countries, fewer girls than boys become skilled design engineers. What might explain this situation? The diagram shows the demand for and supply of labour in an industry. The original equilibrium is X. A trade union then negotiates a wage rate of W. What identifies the change in employment? A company mining cobalt invests in machinery to replace some workers. Eventually diseconomies of scale occur. What could cause this situation? Why are many hairdressers able to operate as small businesses? Dimitry owns a firm that produces and sells bottles of lemonade. He only sells one size of bottle. How would Dimitry calculate the total revenue of the firm? Which market is likely to be the most competitive? What is an advantage of competitive markets? What might cause consumers in a high-income economy to both save more and spend more? What would be a disadvantage of specialization for a worker? The diagram shows a market for labor. X is the original equilibrium. A trade union negotiates a minimum wage at W, and the government restricts the supply of immigrant labor. What is the new equilibrium? Which cost of production falls continuously as output increases? A Swedish furniture maker bought a Romanian firm that owned 83,000 hectares of trees. Which type of merger is this most likely to be? What is calculated when price is multiplied by the quantity demanded of a product? Average incomes rose by 5% but savings did not rise. What might explain this? Which firm is in the tertiary sector? What is a benefit to a worker of being a member of a trade union? A firm employs 10 workers. Each worker is paid a weekly wage of $200 and produces 50 goods per week. What is the average cost of labour per good produced? How would advertising a good result in a retail firm increasing its market share? What describes the total revenue of a firm? The diagram shows the total revenue (TR) and total cost (TC) of a firm in a market. At which level of output will the firm maximise profits? Wages for nurses decrease, while working hours for pilots decrease. Assuming other factors do not change, what is the likely effect on the number of individuals choosing to become nurses or pilots? The table shows the average revenue of a firm at various levels of output. What happens to total revenue as output rises? For some months, the price of petrol (gas) decreased significantly. How would this affect a delivery firm that delivers goods for other firms using petrol (gas) powered vehicles? The size of the domestic car industry in Japan has enabled Japanese car producers to be more price competitive than rival car producers. What is an explanation for this? What is a major advantage of a horizontal merger compared with a conglomerate merger? Which government policy will increase productivity? Which result of increased specialization in a firm is an advantage for the firm, but a disadvantage for some of the workers in the firm? The diagram shows the imposition of a subsidy on a product supplied by a firm. Which area represents the total revenue of the firm including the subsidy? The diagram shows the total cost curve for a firm. What can be concluded about the firm? The table shows the average total cost of a firm over a range of output. What happens after 4 units are produced? Two car manufacturers agree to merge. Which outcome would be a disadvantage for customers? The table shows the output of cakes from four bakeries, A–D. Which bakery has the highest labour productivity? What is an advantage of labour-intensive production and what is an advantage of capital-intensive production? The market equilibrium wage rate is $10 per hour. What explains why the wage rate actually paid is $12 per hour? A firm imports 20 high quality bicycles into the US at a cost of $3000 each. It sells them all, making a profit of $1000 per bicycle. What is the firm’s average revenue? The diagram shows total cost (TC), total fixed cost (TFC) and total variable cost (TVC). Which costs are shown by W, X, and Y? The table shows output and total cost of a firm with four production methods, A–D. Which method causes diseconomies of scale as the firm expands production from 1000 to 3000 units? A clothing manufacturer expands by taking over a clothing retailer. Which type of merger is this? The diagram shows the fixed costs, variable costs, and total costs of a firm at output S. Which distance represents the firm’s variable costs? A manufacturer of medical supplies benefits from improved road links to its main markets. What benefit definitely occurs as a result? Which row shows an essential characteristic of competitive markets and monopoly markets? The table shows how three people, X, Y, and Z, spend their income. What is the likely order of income, from lowest income to highest income, for these three people? Which activity is correctly linked to the organization that provides it? What is a function of commercial banks? The table shows spending in the leisure sector of a country in 1995, 1999, and 2005. What can be concluded from the table? The graphs show the supply of labor in four occupations. Which graph shows that people prefer leisure to work above a certain income? What would be likely to happen within a country if its government granted more work permits to doctors coming from other countries? What is not a benefit of trade union membership for a worker? What will happen to a firm that expands to take advantage of economies of scale? The table shows total fixed and total variable costs at different levels of output for a firm. What happens as output rises? Which characteristics are found in a monopoly?